COLUMBIA BANKING SYSTEM, INC.
For the period ended Jun 30, 2025. Filed Aug 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 6, 2025
COLB$30.48+0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-06.
0000887343-25-000166
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0000887343-25-000233
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 194 previous paragraphs and 195 current paragraphs.
111 unchanged; 70 reworded; 13 added; 12 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 24 previous and 25 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
Pending Acquisition
Current report
•Net interest margin, on a tax-equivalent basis, was 3.75% for the three months ended June 30, 2025, as compared to 3.60% for the three months ended March 31, 2025, due primarily to higher earning asset yields. Net interest income was $446.4 million for the three months ended June 30, 2025, an increase of $21.5 million compared to the three months ended March 31, 2025. The increase reflects higher interest income earned on loans and investment securities and relatively stable funding costs.
Current report
•Non-interest expense was $278.0 million for the three months ended June 30, 2025, down $62.1 million as compared to the three months ended March 31, 2025, which included a $55.0 million accrual for a legal settlement and $14.6 million in severance expense recorded in merger and restructuring expense that was not repeated in the current quarter.
Current report
•Total deposits were $41.7 billion as of June 30, 2025, an increase of $21.9 million, as compared to December 31, 2024. The increase was due to our recent small business and retail deposits campaign, as well as an increase in brokered deposits, partially offset by a decrease in customer deposits, due in part to seasonally anticipated customer tax payments and owner distributions. Customers also continue to use their own cash to make investments in their businesses or pay down debt.
Current report
Net interest income for the three months ended June 30, 2025 was $446.4 million, an increase of $21.5 million compared to the three months ended March 31, 2025. The increase was driven by a $23.4 million increase in interest income, mainly on loans and investment securities, and relatively stable funding costs.
Current report
Salaries and employee benefits increased during the three months ended June 30, 2025, as compared to the three months ended March 31, 2025, driven by compensation accruals to salaries, annual merit increases, and incentive payouts earned during the quarter.
Current report
Merger and restructuring expense decreased during the three months ended June 30, 2025, as compared to the three months ended March 31, 2025, mainly due to a decrease in restructuring expense as compared to the prior period, which included higher severance expense. The three months ended June 30, 2025 includes higher merger-related expense related to Columbia’s pending acquisition of Pacific Premier, as compared to the three months ended March 31, 2025. This upward trend is expected to continue as merger and integration activities progress.
Current report
FDIC assessments decreased during the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, due mainly to the $5.7 million in FDIC special assessment expense in the first half of 2024 that was not repeated in the current period.
Current report
Debt Securities
Current report
Goodwill and Other Intangible Assets
Current report
As of June 30, 2025 and December 31, 2024, the Company had $1.0 billion in goodwill. Goodwill is recorded in connection with business combinations and represents the excess of the purchase price over the estimated fair value of the net assets acquired. There were no changes to goodwill during the period.
Current report
As of June 30, 2025, we had other intangible assets of $430.4 million, as compared to $484.2 million at December 31, 2024. As part of a business acquisition, the fair value of identifiable intangible assets such as core deposits, which includes all deposits except certificates of deposit, was recognized at acquisition date. Intangible assets with definite useful lives are amortized to their estimated residual values over their respective estimated useful lives. The core deposit intangible assets recorded are amortized on an accelerated basis over a period of 10 years using the sum-of-the-years-digits method. Intangible assets are evaluated for impairment if events and circumstances indicate a possible impairment. No impairment losses have been recognized in the periods presented.
Current report
Total deposits were $41.7 billion as of June 30, 2025, an increase of $21.9 million as compared to December 31, 2024. The increase was due to our recent small business and retail deposits campaign, as well as an increase in brokered deposits, partially offset by a decrease in customer deposits, due in part to seasonally anticipated customer tax payments and owner distributions. Customers also continue to use their own cash to make investments in their businesses or pay down debt.
Removed paragraphs (12)
Previous report
Recent Developments
Previous report
•Net interest margin, on a tax-equivalent basis, was 3.60% for the three months ended March 31, 2025, as compared to 3.64% for the three months ended December 31, 2024, due to lower earning asset yields which were only partially offset by lower funding costs. Net interest income was $425.0 million for the three months ended March 31, 2025, a decrease of $12.4 million compared to the three months ended December 31, 2024, due to the same factors that impacted net interest margin. Lower accretion income, primarily related to investment securities income, accounted for the majority of the decline in net interest income.
Previous report
•Non-interest expense was $340.1 million for the three months ended March 31, 2025, as compared to $266.6 million for the three months ended December 31, 2024. The increase is mainly related to a $55.0 million accrual for a legal settlement and $14.6 million in severance expense recorded in merger and restructuring expense.
Previous report
•Total deposits were $42.2 billion as of March 31, 2025, an increase of $497.0 million, as compared to December 31, 2024. The increase was due to customer deposit growth, driven by focused campaigns run by our branch network and other commercial customer deposit growth, slightly offset by a reduction in brokered deposits.
Previous report
Net interest income for the three months ended March 31, 2025 was $425.0 million, a decrease of $12.4 million compared to the three months ended December 31, 2024. The decrease was driven by a $29.3 million decrease in interest income, partially offset by lower funding costs, due in part to the reductions in the federal funds rate that occurred in the last quarter of 2024. Lower accretion income related to investment securities income contributed to the decline in net interest income.
Previous report
Other income decreased during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, primarily due to interest rate fluctuations between periods that resulted in an unfavorable change of $2.7 million in swap derivatives due to a loss in the current period compared to a gain in the prior year period.
Previous report
Merger and restructuring expense increased during the three months ended March 31, 2025, as compared to the three months ended December 31, 2024, mainly due to an increase of $14.6 million in severance expense in the current period.
Previous report
Salaries and employee benefits decreased during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, due primarily to a reduction in employees related to operational efficiency activities in 2024.
Previous report
Merger and restructuring expense increased during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, mainly due to an increase of $14.6 million in severance expense, which was partially offset by lower merger-related expenses as compared to the three months ended March 31, 2024.
Previous report
Investment Securities
Previous report
Total loans and leases outstanding as of March 31, 2025 were $37.6 billion, a decrease of $64.8 million as compared to December 31, 2024. The decrease was primarily attributable to loan paydowns and charge-offs of $34.1 million. The loan to deposit ratio was 89% as of March 31, 2025, as compared to 90% as of December 31, 2024.
Previous report
Total deposits were $42.2 billion as of March 31, 2025, an increase of $497.0 million as compared to December 31, 2024. The increase was due to customer deposit growth, driven by focused campaigns run by our branch network and other commercial customer balance growth.
Reworded paragraphs (70)
Previous wording
We make forward-looking statements including, but not limited to, statements about derivatives and hedging; the results and performance of models and economic assumptions used in our calculation of the ACL; projected sources of funds and the Company's liquidity position and deposit level and types; our securities portfolio; loan sales; adequacy of our ACL, including the RUC; provision for credit losses; non-performing loans and future losses; our commercial real estate portfolio, its collectability and subsequent charge-offs; resolution of non-accrual loans; mortgage volumes and the impact of rate changes; the economic environment; inflation and interest rates generally; litigation; dividends; junior subordinated debentures; fair values of certain assets and liabilities, including MSR values and sensitivity analyses; tax rates; deposit pricing; and the effect of accounting pronouncements and changes in accounting methodology.
Current wording
We make forward-looking statements including, but not limited to, statements about derivatives and hedging; the results and performance of models and economic assumptions used in our calculation of the ACL; projected sources of funds and the Company's liquidity position and deposit level and types; our securities portfolio; loan sales; adequacy of our ACL, including the RUC; provision for credit losses; non-performing loans and future losses; our CRE portfolio, its collectability and subsequent charge-offs; resolution of non-accrual loans; mortgage volumes and the impact of rate changes; the economic environment; inflation and interest rates generally; litigation; dividends; junior subordinated debentures; fair values of certain assets and liabilities, including MSR values and sensitivity analyses; tax rates; deposit pricing; and the effect of accounting pronouncements and changes in accounting methodology.
Previous wording
•uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve or the effects of any declines in housing and commercial real estate prices, high or increasing unemployment rates, continued or renewed inflation, or any recession or slowdown in economic growth particularly in the western United States;
Current wording
•uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve or the effects of any declines in housing and CRE prices, high or increasing unemployment rates, continued or renewed inflation, or any recession or slowdown in economic growth particularly in the western United States;
Previous wording
•risks related to the proposed Merger with Pacific Premier including, among others, (i) failure to complete the Merger or unexpected delays related to the Merger or either party’s inability to obtain regulatory, shareholder, or stockholder approvals, or satisfy other closing conditions required to complete the Merger, (ii) regulatory approvals resulting in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction, (iii) certain restrictions during the pendency of the Merger that may impact the parties’ ability to pursue certain business opportunities or strategic transactions, (iv) diversion of management’s attention from ongoing business operations and opportunities, (v) cost savings and any revenue or expense synergies from the Merger may not be fully realized or may take longer than anticipated to be realized, (vi) deposit attrition, customer or employee loss, and/or revenue loss as a result of the announcement of the Merger, (viii) expenses related to the Merger being greater than expected, and (ix) shareholder litigation that could prevent or delay the closing of the Merger or otherwise negatively impact the Company’s business and operations;
Current wording
•risks related to the proposed Merger with Pacific Premier including, among others, (i) failure to complete the Merger or unexpected delays related to the Merger or either party's inability to satisfy the remaining customary closing conditions required to complete the Merger outlined in the Merger Agreement, (ii) certain restrictions during the pendency of the Merger that may impact the parties' ability to pursue certain business opportunities or strategic transactions, (iii) diversion of management's attention from ongoing business operations and opportunities, (iv) cost savings and any revenue or expense synergies from the Merger may not be fully realized or may take longer than anticipated to be realized, (v) deposit attrition, customer or employee loss, and/or revenue loss as a result of the announcement of the Merger, (vi) expenses related to the Merger being greater than expected, and (vii) shareholder litigation that could prevent or delay the closing of the Merger or otherwise negatively impact the Company’s business and operations;
Previous wording
Columbia Banking System, Inc. (referred to in this Quarterly Report on Form 10-Q as “we,” “our,” “the Company” and “Columbia”) is a registered financial holding company, which wholly owns the Bank. Through the Bank, we provide a broad range of banking, private banking, mortgage and other financial services to corporate, institutional, small business, and individual customers. FinPac, a commercial equipment leasing company, is a subsidiary of the Bank. Along with its subsidiaries, the Company is subject to the regulations of state and federal agencies and undergoes regular examinations by these regulatory agencies.
Current wording
Columbia Banking System, Inc. (referred to in this Quarterly Report on Form 10-Q as "we," "our," "the Company" and "Columbia") is a registered financial holding company, which wholly owns the Bank. In order to align with the name of the holding company and the variety of brands already operated by the Bank today under the Columbia name, Columbia renamed the Bank to "Columbia Bank" effective July 1, 2025, and the Bank will begin doing business under the Columbia Bank name and branding beginning on September 1, 2025. Through the Bank, we provide a broad range of banking, private banking, mortgage and other financial services to corporate, institutional, small business, and individual customers. FinPac, a commercial equipment leasing company, is a subsidiary of the Bank. Along with its subsidiaries, the Company is subject to the regulations of state and federal agencies and undergoes regular examinations by these regulatory agencies.
Previous wording
The majority of the Bank’s loans and deposits are within its service areas in Oregon, Washington, California, Idaho, Nevada, Arizona, Colorado, and Utah. Umpqua Bank is an Oregon state-chartered commercial bank, the deposits of which are insured in whole or in part by the FDIC.
Current wording
The majority of the Bank’s loans and deposits are within its service areas in Oregon, Washington, California, Idaho, Nevada, Arizona, Colorado, and Utah. The Bank is an Oregon state-chartered commercial bank, the deposits of which are insured in whole or in part by the FDIC.
Previous wording
•On April 23, 2025, we announced that we and Pacific Premier, the parent company of Pacific Premier Bank, National Association, entered into the Merger Agreement, pursuant to which Columbia will acquire Pacific Premier in an all-stock transaction. Pursuant to the terms of the Merger Agreement, Pacific Premier stockholders will receive 0.9150 of a share of Columbia common stock for each Pacific Premier share they own. The combined company will have approximately $70 billion in assets and will be a market leader in the largest banking markets within the Western U.S. The acquisition is expected to close in the second half of 2025, subject to satisfaction of customary closing conditions, including receipt of regulatory, shareholder, and stockholder approvals. The combination is a natural and strategic fit that supports our Business Bank of Choice operating strategy. Pacific Premier’s footprint accelerates and strengthens Columbia’s competitive position in Southern California, and it brings new products and services that enhance our offerings and elevate our ability to provide needs-based solutions for our existing and prospective customers.
Current wording
•On April 23, 2025, we announced that we and Pacific Premier, the parent company of Pacific Premier Bank, National Association, entered into the Merger Agreement, pursuant to which Columbia will acquire Pacific Premier in an all-stock transaction. Pursuant to the terms of the Merger Agreement, Pacific Premier stockholders will receive 0.9150 of a share of Columbia common stock for each Pacific Premier share they own. Columbia’s shareholders and Pacific Premier’s stockholders approved the acquisition at their respective special meetings, which were held on July 21, 2025. The acquisition is expected to close as soon as August 31, 2025, pending satisfaction of the remaining customary closing conditions. Integration efforts are progressing as planned, driven by the comprehensive preparation of cross-company teams, which are led by Columbia's Integration Management Office, positioning us for a smooth and timely closing once the remaining customary closing conditions are satisfied. The acquisition is a natural and strategic fit that supports our Business Bank of Choice operating strategy. Pacific Premier’s footprint accelerates and strengthens Columbia’s competitive position in Southern California, and it brings new products and services that enhance our offerings and elevate our ability to provide needs-based solutions for our existing and prospective customers.
Previous wording
The following is a discussion of our results for the three months ended March 31, 2025, as compared to the applicable prior periods.
Current wording
The following is a discussion of our results for the three and six months ended June 30, 2025, as compared to the applicable prior periods.
Previous wording
•Earnings per diluted common share was $0.41 for the three months ended March 31, 2025, as compared to $0.68 for the three months ended December 31, 2024. The decrease for the three months ended March 31, 2025, as compared to the prior period, was primarily driven by an increase in non-interest expense, related to a $55.0 million accrual for a legal settlement and $14.6 million in severance expense.
Current wording
•Earnings per diluted common share was $0.73 for the three months ended June 30, 2025, as compared to $0.41 for the three months ended March 31, 2025. The increase for the three months ended June 30, 2025, as compared to the prior period, was primarily driven by a decrease in non-interest expense, as the prior period included a $55.0 million accrual for a legal settlement and $14.6 million in severance expense not repeated in the current quarter. Higher net interest income also contributed to the increase in earnings per diluted common share between periods.
Previous wording
•Non-interest income was $66.4 million for the three months ended March 31, 2025, as compared to $49.7 million for the three months ended December 31, 2024. The increase was driven by fluctuations in fair value adjustments and MSR hedging activity due to rate changes, which collectively resulted in a net fair value gain of $9.5 million in the first quarter, compared to a net fair value loss of $5.5 million in the prior period.
Current wording
•Non-interest income was $64.5 million for the three months ended June 30, 2025, as compared to $66.4 million for the three months ended March 31, 2025. The decrease was driven by changes in fair value adjustments, which include adjustments in fair value for certain loans held for investment and MSR hedging activity due to rate changes, which collectively resulted in a net fair value loss of $640,000 in the three months ended June 30, 2025, compared to a net fair value gain of $9.5 million in the prior period. The change between periods was partially offset by higher core fee-generating businesses, including card-based fee income, swap-related income, and financial services and trust revenue.
Previous wording
•Earnings per diluted common share was $0.41 for the three months ended March 31, 2025, as compared to $0.59 for the three months ended March 31, 2024. The decrease for the three months ended March 31, 2025, as compared to the prior year period, was primarily driven by an increase in non-interest expense, due to the litigation accrual and severance, as noted above.
Current wording
•Earnings per diluted common share was $1.14 for the six months ended June 30, 2025, as compared to $1.17 for the six months ended June 30, 2024. The decrease for the six months ended June 30, 2025, as compared to the prior year period, was primarily driven by an increase in non-interest expense, due to the litigation accrual and severance, as noted above. Higher non-interest income and net interest income partially offset the increase in non-interest expense.
Previous wording
•Net interest margin, on a tax-equivalent basis, was 3.60% for the three months ended March 31, 2025, as compared to 3.52% for the three months ended March 31, 2024. The increase for the three months ended March 31, 2025 compared to the prior year period was due to lower funding costs, which were partially offset by lower earning asset yields due to fluctuating interest rates and product repricing between the periods. A favorable balance sheet mix shift to lower-cost customer deposits from higher-cost wholesale funding sources between periods contributed positively to net interest margin. Net interest income increased $1.6 million for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, due to the same factors that impacted net interest margin, partially offset by slight contraction in the balance of average interest-earning assets between periods.
Current wording
•Net interest margin, on a tax-equivalent basis, was 3.67% for the six months ended June 30, 2025, as compared to 3.54% for the six months ended June 30, 2024. The increase for the six months ended June 30, 2025 compared to the prior year period was due to lower funding costs, which were partially offset by lower earning asset yields due to fluctuating interest rates and product repricing between the periods. A favorable balance sheet mix shift to lower-cost customer deposits from higher-cost wholesale funding sources between periods contributed positively to net interest margin. Net interest income increased $20.6 million for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, due to the same factors that impacted net interest margin, partially offset by slight contraction in the balance of average interest-earning assets between periods.
Previous wording
•Non-interest income was $66.4 million for the three months ended March 31, 2025, as compared to $50.4 million for the three months ended March 31, 2024. The increase was mainly due to fluctuations in fair value adjustments for certain loans held for sale and MSR hedging activity, which collectively resulted in a favorable change due to a net fair value gain of $9.5 million for the three months ended March 31, 2025, compared to a net fair value loss of $3.9 million for the three months ended March 31, 2024.
Current wording
•Non-interest income was $130.8 million for the six months ended June 30, 2025, as compared to $95.1 million for the six months ended June 30, 2024. The increase was mainly due to fluctuations in fair value adjustments for certain loans held for sale and MSR hedging activity, which collectively resulted in a favorable change due to a net fair value gain of $8.8 million for the six months ended June 30, 2025, compared to a net fair value loss of $13.6 million for the six months ended June 30, 2024.
Previous wording
•Non-interest expense was $340.1 million for the three months ended March 31, 2025, as compared to $287.5 million for the three months ended March 31, 2024. The increase for the three months ended March 31, 2025 is mainly related to a $55.0 million accrual for a legal settlement and $14.6 million in severance expense recorded in merger and restructuring expense. This increase was partially offset by a decrease in salaries and employee benefits, as a result of operational efficiency activities undertaken in 2024.
Current wording
•Non-interest expense was $618.1 million for the six months ended June 30, 2025, as compared to $566.8 million for the six months ended June 30, 2024. The increase for the six months ended June 30, 2025 is mainly related to a $55.0 million accrual for a legal settlement and $14.6 million in severance expense recorded in merger and restructuring expense recorded in the first quarter. This increase was partially offset by lower FDIC assessment fees and intangible amortization during the period.
Previous wording
•Total loans and leases were $37.6 billion as of March 31, 2025, a decrease of $64.8 million, as compared to December 31, 2024. The decrease in total loans and leases was primarily in commercial and residential loan balances, partially offset by an increase in commercial real estate balances. The contraction was driven by loan payoffs and slower origination volume, offset by draws in CRE construction loans and growth in owner-occupied term CRE balances.
Current wording
•Total loans and leases were $37.6 billion as of June 30, 2025, a decrease of $43.9 million, as compared to December 31, 2024. The decrease in total loans and leases was primarily in residential and commercial loan balances, partially offset by an increase in CRE balances. The contraction was driven by loan payoffs and slower origination volume, partially offset by draws in CRE construction loans and growth in owner-occupied term CRE balances.
Previous wording
•Total consolidated assets were $51.5 billion as of March 31, 2025, compared to $51.6 billion as of December 31, 2024.
Current wording
•Total consolidated assets were $51.9 billion as of June 30, 2025, compared to $51.6 billion as of December 31, 2024.
Previous wording
•Non-performing assets increased to $178.0 million, or 0.35% of total assets, as of March 31, 2025, compared to $169.6 million, or 0.33% of total assets, as of December 31, 2024. Non-performing loans and leases were $175.1 million, or 0.47% of total loans and leases, as of March 31, 2025, compared to $166.9 million, or 0.44% of total loans and leases, as of December 31, 2024. As of March 31, 2025, non-performing loans included $66.5 million in government guarantees.
Current wording
•Non-performing assets increased to $180.3 million, or 0.35% of total assets, as of June 30, 2025, compared to $169.6 million, or 0.33% of total assets, as of December 31, 2024. Non-performing loans and leases were $177.4 million, or 0.47% of total loans and leases, as of June 30, 2025, compared to $166.9 million, or 0.44% of total loans and leases, as of December 31, 2024. As of June 30, 2025, non-performing loans included $67.8 million in government guarantees.
Previous wording
•The ACL was $438.9 million as of March 31, 2025, a decrease of $1.9 million compared to December 31, 2024. The decrease in the ACL reflects credit migration trends, changes in the economic assumptions used in credit models, and a recalibration of the commercial real estate, residential mortgage, and home equity line of credit CECL models in the first quarter of 2025.
Current wording
•The ACL was $439.0 million as of June 30, 2025, a decrease of $1.8 million compared to December 31, 2024. The decrease in the ACL reflects credit migration trends, changes in the economic assumptions used in credit models and decreases in loan portfolio balances during the period.
Previous wording
•The Company had a provision for credit losses of $27.4 million for the three months ended March 31, 2025. This compares to a provision for credit losses of $28.2 million for the three months ended December 31, 2024 and $17.1 million for the three months ended March 31, 2024. The decrease for the three months ended March 31, 2025 compared to the prior quarter was mainly due to credit migration trends and changes in the economic forecasts, as well as a recalibration of CECL models in the first quarter of 2025. The increase for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, was mainly due to credit migration trends, changes in the economic forecasts used in credit models, and a recalibration of our CECL models which contributed to the change when compared to the prior period.
Current wording
•The Company had a provision for credit losses of $29.4 million and $56.9 million for the three and six months ended June 30, 2025. This compares to a provision for credit losses of $27.4 million for the three months ended March 31, 2025 and $49.0 million for the six months ended June 30, 2024. The increase for the three and six months ended June 30, 2025 compared to the prior periods was mainly due to credit migration trends, charge-off activity, and changes in the economic forecasts used in credit models.
Previous wording
•Total cash and cash equivalents were $2.1 billion as of March 31, 2025, an increase of $194.5 million from December 31, 2024, due mainly to increased deposits at quarter end. The Company manages its cash position as part of management's strategy to maintain a high-quality liquid asset position to support balance sheet flexibility, fund growth in lending and investment portfolios, and deleverage the balance sheet by decreasing debt and non-deposit liabilities as economic conditions permit.
Current wording
•Total cash and cash equivalents were $1.9 billion as of June 30, 2025, an increase of $63.9 million from December 31, 2024. The Company manages its cash position as part of management's strategy to maintain a high-quality liquid asset position to support balance sheet flexibility, fund growth in lending and investment portfolios, and deleverage the balance sheet by decreasing debt and non-deposit liabilities as economic conditions permit.
Previous wording
•Including secured off-balance sheet lines of credit, total available liquidity was $19.0 billion as of March 31, 2025, representing 37% of total assets, 45% of total deposits, and 131% of estimated uninsured deposits.
Current wording
•Including secured off-balance sheet lines of credit, total available liquidity was $18.6 billion as of June 30, 2025, representing 36% of total assets, 44% of total deposits, and 132% of estimated uninsured deposits.
Previous wording
•The Company's total risk-based capital ratio was 12.9% and its common equity tier 1 ("CET1") capital ratio was 10.6% as of March 31, 2025. As of December 31, 2024, the Company's total risk-based capital ratio was 12.8% and its CET1 capital ratio was 10.5%.
Current wording
•The Company's total risk-based capital ratio was 13.0% and its common equity tier 1 ("CET1") capital ratio was 10.8% as of June 30, 2025. As of December 31, 2024, the Company's total risk-based capital ratio was 12.8% and its CET1 capital ratio was 10.5%.
Previous wording
Our critical accounting estimates are described in detail in the Critical Accounting Estimates section of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 25, 2025. The condensed consolidated financial statements are prepared in conformity with GAAP and follow general practices within the financial services industry, in which the Company operates. This preparation requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the financial statements; accordingly, as this information changes, actual results could differ from the estimates, assumptions, and judgments reflected in the financial statements. Certain estimates inherently have a greater reliance on the use of assumptions and judgments and, as such, have a greater possibility of producing results that could be materially different than originally reported. Management believes that the estimates for ACL and goodwill are important to the portrayal of the Company's financial condition and results of operations and require difficult, subjective, or complex judgments. There have been no material changes in the methodology of these estimates during the three months ended March 31, 2025.
Current wording
Our critical accounting estimates are described in detail in the Critical Accounting Estimates section of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 25, 2025. The condensed consolidated financial statements are prepared in conformity with GAAP and follow general practices within the financial services industry, in which the Company operates. This preparation requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the financial statements; accordingly, as this information changes, actual results could differ from the estimates, assumptions, and judgments reflected in the financial statements. Certain estimates inherently have a greater reliance on the use of assumptions and judgments and, as such, have a greater possibility of producing results that could be materially different than originally reported. Management believes that the estimates for ACL and goodwill are important to the portrayal of the Company's financial condition and results of operations and require difficult, subjective, or complex judgments. There have been no material changes in the methodology of these estimates during the six months ended June 30, 2025.
Previous wording
For the three months ended March 31, 2025, the Company had net income of $86.6 million, compared to net income of $124.1 million for the same period in the prior year. The decrease in net income was mainly attributable to increases in non-interest expense, partially offset by an increase in non-interest income. The $52.6 million increase in non-interest expense was primarily driven by a $55.0 million accrual for a legal settlement and $14.6 million in severance expense recorded in merger and restructuring expense, partially offset by decreases in salaries and employee benefits related to operational efficiencies gained in 2024. The increase of $16.0 million in non-interest income was primarily driven by fluctuations in the fair value adjustments and MSR hedging activity driven by changes in interest rates during the periods.
Current wording
The Company had net income of $152.4 million for the three months ended June 30, 2025, compared to net income of $86.6 million for the three months ended March 31, 2025. The increase in net income was mainly attributable to a decrease of $62.1 million in non-interest expense, which related to a $55.0 million accrual for a legal settlement and $14.6 million in severance expense recorded in merger and restructuring expense in the first quarter of 2025 that was not repeated in the current quarter. There was also an increase of $21.5 million in net interest income reflecting higher interest income earned on loans and investment securities and relatively stable funding costs as compared to the prior quarter.
Previous wording
The Company had net income of $86.6 million for the three months ended March 31, 2025, compared to net income of $143.3 million for the three months ended December 31, 2024. The decrease in net income was mainly attributable to an increase in non-interest expense and decrease in net interest income, partially offset by an increase in non-interest income and a decrease in the provision for income taxes. The increase of $73.5 million in non-interest expense was primarily driven by a $55.0 million accrual for a legal settlement and $14.6 million in severance expense recorded in merger and restructuring expense. The increase of $16.6 million in non-interest income was primarily driven by quarterly fluctuations in fair value adjustments and MSR hedging activity driven by changes in interest rates. The decrease of $12.4 million in net interest income reflects lower interest income that was only partially offset by lower funding costs. Lower accretion income, primarily related to investment securities income, contributed to the decrease in net interest income.
Current wording
For the six months ended June 30, 2025, the Company had net income of $239.0 million, compared to net income of $244.2 million for the same period in the prior year. The decrease in net income was mainly attributable to an increase in non-interest expense, partially offset by increases in non-interest income and net interest income. The $51.4 million increase in non-interest expense was primarily driven by a $55.0 million accrual for a legal settlement and $14.6 million in severance expense recorded in merger and restructuring expense, partially offset by decreases in FDIC assessment fees and intangible amortization. The increase of $35.8 million in non-interest income was primarily driven by favorable fluctuations in fair value adjustments, which include adjustments in fair value for certain loans held for investment and MSR hedging activity. These adjustments resulted in a net fair value gain of $8.8 million in the six months ended June 30, 2025, compared to a net fair value loss of $13.6 million in the prior period, driven by changes in interest rates during the periods as well as growth in other core fee-generating businesses, including swap-related income, financial services and trust revenue, and treasury management fees. The increase of $20.6 million in net interest income reflects lower funding costs, only partially offset by lower interest income in the period.
Previous wording
The net interest margin (net interest income as a percentage of average interest-earning assets) on a fully tax-equivalent basis was 3.60% for the three months ended March 31, 2025, as compared to 3.64% for the three months ended December 31, 2024. Lower earning asset yields were only partially offset by lower funding costs. Lower accretion income contributed to a decline in the yield on investment securities. The yield on loans and leases for the three months ended March 31, 2025 was 5.92%, a decrease of 13 basis points compared to the three months ended December 31, 2024. The cost of interest-bearing liabilities for the three months ended March 31, 2025 was 2.80%, a decrease of 18 basis points compared to the three months ended December 31, 2024.
Current wording
The net interest margin (net interest income as a percentage of average interest-earning assets) on a fully tax-equivalent basis was 3.75% for the three months ended June 30, 2025, as compared to 3.60% for the three months ended March 31, 2025. Net interest margin benefited from an increase in the yield on taxable investment securities to 4.22% for the three months ended June 30, 2025, from 3.72% for the three months ended March 31, 2025. The increase is due to higher prepayment speeds and the purchase of higher-yielding investment securities during the quarter. The average yield on the loan portfolio increased 8 basis points between periods to 6.00% for the three months ended June 30, 2025, due primarily to higher yields on commercial and construction loans. Loan yields also benefited from a $1.6 million interest recovery recorded during the month of June 2025 related to a non-performing loan that repaid in full. The cost of interest-bearing deposits was unchanged between periods at 2.52% for the second quarter of 2025. The cost of interest-bearing liabilities for the three months ended June 30, 2025 was 2.78%, a decrease of 2 basis points compared to the three months ended March 31, 2025.
Previous wording
Net interest income for the three months ended March 31, 2025 was $425.0 million, an increase of $1.6 million compared to the three months ended March 31, 2024. The change in net interest income was mainly due to lower interest rates, driven by the reductions in the federal funds rate in the latter half of 2024, which resulted in lower rates on interest-bearing liabilities, almost completely offset by lower yields on interest-earning assets for the three months ended March 31, 2025 compared to the prior year period.
Current wording
Net interest income for the six months ended June 30, 2025 was $871.4 million, an increase of $20.6 million compared to the six months ended June 30, 2024. The change in net interest income was mainly due to lower interest rates, driven by the reductions in the federal funds rate in the latter half of 2024, which resulted in lower rates on interest-bearing liabilities, almost completely offset by lower yields on interest-earning assets for the six months ended June 30, 2025 compared to the prior year period.
Previous wording
The net interest margin on a fully tax-equivalent basis was 3.60% for the three months ended March 31, 2025, as compared to 3.52% for the three months ended March 31, 2024. The increase for the three months ended March 31, 2025 compared to the prior year period was due to lower funding costs, partially offset by lower earning yields. A favorable balance sheet mix shift to lower-cost customer deposits from higher-cost wholesale funding sources between periods contributed positively to net interest margin. The yield on loans and leases for the three months ended March 31, 2025 and 2024 was 5.92% and 6.13%, respectively, a decrease of 21 basis points, primarily due to the declining rate environment. The cost of interest-bearing liabilities was 2.80% for the three months ended March 31, 2025, compared to 3.25% for the three months ended March 31, 2024, a decrease of 45 basis points, due to the reductions in the federal funds rate, the favorable balance sheet mix shift, and the positive impact of a comprehensive review related to how we evaluate and approve deposit pricing that took place during the first quarter of 2024.
Current wording
The net interest margin on a fully tax-equivalent basis was 3.67% for the six months ended June 30, 2025, as compared to 3.54% for the six months ended June 30, 2024. The increase for the six months ended June 30, 2025 compared to the prior year period was due to lower funding costs, partially offset by lower earning yields. A favorable balance sheet mix shift to lower-cost customer deposits from higher-cost wholesale funding sources between periods contributed positively to net interest margin. The yield on loans and leases for the six months ended June 30, 2025 and 2024 was 5.96% and 6.17%, respectively, a decrease of 21 basis points, primarily due to the declining rate environment. The cost of interest-bearing liabilities was 2.79% for the six months ended June 30, 2025, compared to 3.28% for the six months ended June 30, 2024, a decrease of 49 basis points, due to the reductions in the federal funds rate and the favorable balance sheet mix shift.
Previous wording
The Federal Reserve lowered the target range for the federal funds rate by 0.50% in September 2024 and an additional 0.25% in both November and December 2024. During the March 2025 meeting, the Federal Reserve maintained the target rate at 4.25%-4.50%. The balance sheet remained in a slightly liability-sensitive position as of March 31, 2025. We expect customer deposit balance trends to be a driver of net interest margin performance, as we continue to target a lower funding contribution from wholesale sources, like FHLB Advances and brokered deposits.
Current wording
The Federal Reserve lowered the target range for the federal funds rate by 0.50% in September 2024 and an additional 0.25% in both November and December 2024. In the 2025 meetings, the Federal Reserve maintained the target rate at 4.25%-4.50%. The balance sheet remained in a slightly liability-sensitive position as of June 30, 2025. We expect customer deposit balance trends to be a driver of net interest margin performance, as we continue to target a lower funding contribution from wholesale sources, like FHLB Advances and brokered deposits.
Previous wording
The Company had a $27.4 million provision for credit losses for the three months ended March 31, 2025, as compared to a $28.2 million provision for the three months ended December 31, 2024. As an annualized percentage of average outstanding loans and leases, the provision for credit losses recorded for the three months ended March 31, 2025 was 0.29%, as compared to 0.30% for the three months ended December 31, 2024. The change in provision for credit losses reflects credit migration trends and changes in the economic forecasts used in credit models, as well as a recalibration of CECL models in the first quarter of 2025.
Current wording
The Company had a $29.4 million provision for credit losses for the three months ended June 30, 2025, as compared to a $27.4 million provision for the three months ended March 31, 2025. As an annualized percentage of average outstanding loans and leases, the provision for credit losses recorded for the three months ended June 30, 2025 was 0.31%, as compared to 0.29% for the three months ended March 31, 2025. The change in provision for credit losses reflects credit migration trends, charge-off activity, and changes in the economic forecasts used in credit models.
Previous wording
For the three months ended March 31, 2025, net charge-offs were $29.3 million, as compared to $25.7 million for the three months ended December 31, 2024. As an annualized percentage of average outstanding loans and leases, net charge-offs for the three months ended March 31, 2025 were 0.32%, as compared to 0.27% for the three months ended December 31, 2024. Net charge-offs in the FinPac portfolio were $16.8 million for the three months ended March 31, 2025, a $2.4 million decrease from the three months ended December 31, 2024, as improvement continues in the transportation sector of the FinPac portfolio. Net charge-offs, exclusive of the FinPac portfolio, were $12.6 million, as compared to $6.5 million in the prior period, which reflects the partial charge-off of a single relationship with a previously established reserve.
Current wording
For the three months ended June 30, 2025 and March 31, 2025, net charge-offs were $29.3 million. As an annualized percentage of average outstanding loans and leases, net charge-offs for the three months ended June 30, 2025 were 0.31%, as compared to 0.32% for the three months ended March 31, 2025. Net charge-offs in the FinPac portfolio were $14.2 million for the three months ended June 30, 2025, a $2.6 million decrease from the three months ended March 31, 2025. Net charge-offs, exclusive of the FinPac portfolio, were $15.2 million, as compared to $12.6 million in the prior period, which reflects the partial charge-off of two relationships with previously established reserves.
Previous wording
The Company had a $27.4 million provision for credit losses for the three months ended March 31, 2025, as compared to $17.1 million for the three months ended March 31, 2024. The increase was primarily driven by credit migration trends and changes in the economic forecasts used in credit models. As an annualized percentage of average outstanding loans and leases, the provision for credit losses recorded for the three months ended March 31, 2025 was 0.29%, as compared to 0.18% for the three months ended March 31, 2024.
Current wording
The Company had a $56.9 million provision for credit losses for the six months ended June 30, 2025, as compared to $49.0 million for the six months ended June 30, 2024. The increase was primarily driven by credit migration trends and changes in the economic forecasts used in credit models. As an annualized percentage of average outstanding loans and leases, the provision for credit losses recorded for the six months ended June 30, 2025 was 0.30%, as compared to 0.26% for the six months ended June 30, 2024.
Previous wording
For the three months ended March 31, 2025, net charge-offs were $29.3 million, as compared to $44.0 million for the three months ended March 31, 2024. As an annualized percentage of average outstanding loans and leases, net charge-offs for the three months ended March 31, 2025 were 0.32%, as compared to 0.47% for the three months ended March 31, 2024. Net charge-offs in the FinPac portfolio were $16.8 million for the three months ended March 31, 2025, as compared to $23.8 million for the three months ended March 31, 2024, which is reflective of continued improvement in the transportation sector of the lease portfolio. Net charge-offs were $12.6 million for the Bank for the three months ended March 31, 2025, a decrease of $7.7 million, as the prior period reflects the charge-off of a single commercial credit.
Current wording
For the six months ended June 30, 2025, net charge-offs were $58.7 million, as compared to $74.4 million for the six months ended June 30, 2024. As an annualized percentage of average outstanding loans and leases, net charge-offs for the six months ended June 30, 2025 were 0.31%, as compared to 0.40% for the six months ended June 30, 2024. Net charge-offs in the FinPac portfolio were $30.9 million for the six months ended June 30, 2025, as compared to $48.5 million for the six months ended June 30, 2024, which is reflective of continued improvement in the transportation sector of the lease portfolio. Net charge-offs were $27.8 million for the Bank for the six months ended June 30, 2025, an increase of $1.8 million, as compared to the six months ended June 30, 2024.
Previous wording
Typically, loans in a non-accrual status will not have an ACL as they will be written down to their net realizable value or charged off. However, the net realizable value for homogeneous leases and equipment finance agreements are determined by the loss given default calculated by the CECL model, and therefore homogeneous leases and equipment finance agreements on non-accrual will have an ACL amount until they become 181 days past due, at which time they are charged off. The non-accrual leases and equipment finance agreements of $18.1 million as of March 31, 2025 have a related ACL of $16.0 million, with the remaining loans written-down to the estimated fair value of the collateral, less estimated costs to sell, and are expected to be resolved with no additional material loss, absent further decline in market prices.
Current wording
Typically, loans in a non-accrual status will not have an ACL as they will be written down to their net realizable value or charged off. However, the net realizable value for homogeneous leases and equipment finance agreements are determined by the LGD calculated by the CECL model, and therefore homogeneous leases and equipment finance agreements on non-accrual will have an ACL amount until they become 181 days past due, at which time they are charged off. The non-accrual leases and equipment finance agreements of $19.4 million as of June 30, 2025 have a related ACL of $17.2 million, with the remaining loans written-down to the estimated fair value of the collateral, less estimated costs to sell, and are expected to be resolved with no additional material loss, absent further decline in market prices.
Previous wording
Gain (loss) on certain loans held for investment, at fair value for the three months ended March 31, 2025, as compared to the three months ended December 31, 2024, increased due to interest rate fluctuations between periods that resulted in a gain on the fair value of certain loans held for investment of $7.0 million, as compared to a loss of $7.4 million for the prior quarter.
Current wording
Gain on certain loans held for investment, at fair value for the three months ended June 30, 2025, as compared to the three months ended March 31, 2025, decreased due to interest rate fluctuations between periods that resulted in a gain on the fair value of certain loans held for investment of $212,000, as compared to a gain of $7.0 million for the prior quarter.
Previous wording
Other income for the three months ended March 31, 2025, as compared to the three months ended December 31, 2024, decreased primarily due to interest rate fluctuations between periods that resulted in an unfavorable change of $5.1 million in swap derivatives due to a loss in the current quarter compared to a gain in the prior quarter.
Current wording
Other income for the three months ended June 30, 2025, as compared to the three months ended March 31, 2025, increased primarily due to interest rate fluctuations between periods that resulted in higher trading income and a favorable change of $1.3 million in swap customer fee revenue due to a higher transaction volumes in the current quarter compared to the prior quarter.
Previous wording
Residential mortgage banking revenue increased during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. The variance was driven by the MSR hedge gain of $3.2 million during the three months ended March 31, 2025, as compared to a loss of $4.3 million in the prior year period, partially offset by interest rate fluctuations, which decreased the fair value of the MSR asset during the three months ended March 31, 2025. Additionally, higher closed loan volume resulted in origination and sale income of $4.4 million during the three months ended March 31, 2025, as compared to $2.9 million in the prior year.
Current wording
Residential mortgage banking revenue increased during the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. The variance was driven by the MSR hedge gain of $5.0 million during the six months ended June 30, 2025, as compared to a loss of $5.9 million in the six months ended June 30, 2024, partially offset by interest rate fluctuations, which decreased the fair value of the MSR asset during the six months ended June 30, 2025.
Previous wording
Gain (loss) on certain loans held for investment, at fair value for the three months ended March 31, 2025, as compared to the three months ended December 31, 2024, increased due to interest rate fluctuations between periods that resulted in a gain on the fair value of certain loans held for investment of $7.0 million in the current period, as compared to a loss of $2.4 million in the prior year period.
Current wording
Gain (loss) on certain loans held for investment, at fair value for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, increased due to interest rate fluctuations between periods that resulted in a gain on the fair value of certain loans held for investment of $7.2 million in the current period, as compared to a loss of $12.5 million in the prior year period.
Previous wording
Legal settlement increased during the three months ended March 31, 2025, as compared to the three months ended December 31, 2024, due to the $55.0 million accrual related to a legal settlement. Refer to Note 7 –Commitments and Contingencies for further information.
Current wording
Legal settlement decreased during the three months ended June 30, 2025, as compared to the three months ended March 31, 2025, due to the $55.0 million accrual related to a legal settlement reached in the first quarter of 2025 that was not repeated in the current quarter. Refer to Note 7 –Commitments and Contingencies for further information.
Previous wording
Legal settlement increased during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, due to the $55.0 million accrual related to a legal settlement reached in the first quarter of 2025. Refer to Note 7 –Commitments and Contingencies for further information.
Current wording
Legal settlement increased during the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, due to the $55.0 million accrual related to a legal settlement reached in the first quarter of 2025. Refer to Note 7 –Commitments and Contingencies for further information.
Previous wording
The Company's effective tax rate for the three months ended March 31, 2025 was 30.1%, as compared to 25.5% and 26.6% for the three months ended December 31, 2024, and March 31, 2024, respectively. The effective tax rates differed from the statutory rate principally because of state taxes, non-deductible compensation, non-deductible FDIC assessments, and income on tax-exempt investment securities and loans. The change to the effective tax rate for the three months ended March 31, 2025, as compared to the prior periods, was primarily attributable to an increase in non-deductible compensation.
Current wording
The Company's effective tax rate for the three and six months ended June 30, 2025 was 25.1% and 27.0%, respectively, as compared to 30.1% for the three months ended March 31, 2025 and 26.0% for the six months ended June 30, 2024. The effective tax rates differed from the statutory rate principally because of state taxes, non-deductible compensation, nondeductible FDIC assessments, and income on tax-exempt investment securities and loans. The change to the effective tax rates for the three and six months ended June 30, 2025, as compared to prior periods, was primarily attributable to changes in non-deductible compensation.
Showing the first 40 of 70 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Total loans and leases outstanding as of June 30, 2025 were $37.6 billion, a decrease of $43.9 million as compared to December 31, 2024. The decrease was primarily in residential and commercial loan balances, partially offset by an increase in CRE balances. The contraction was driven by loan payoffs and slower origination volume, partially offset by draws in CRE construction loans and growth in owner-occupied term CRE balances. The loan to deposit ratio was 90% at both June 30, 2025 and December 31, 2024.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
As of March 31, 2025 there were $54.0 million or 0.14% of total loans, modified due to borrowers experiencing financial difficulties, compared to $110.7 million or 0.29% as of December 31, 2024.