Oct 22, 2026 earnings call — Board authorizes large new share repurchase
Board authorized a new $1.2 billion share repurchase program, after returning over $1 billion to shareholders in the past year.
Revenue $0.7B (est $0.7B) · EPS $0.82 (est $0.77)
Key quotes
"Given our confidence in Columbia's long term strategy, and our outlook for continued excess capital generation, our board of directors has authorized a new $1.2 billion share repurchase program."
"Our balance sheet optimization strategy drove meaningful NIM expansion, building on improvement throughout the past year."
"Strong growth in customer balances supported an increase in total deposits to $52.7 billion compared to $52.1 billion at June 30."
Analyst Q&A 10
net interest margin direction
Q (Jon Arfstrom · RBC): Analyst asked why Q3 margin surprised and where margins could go over time. He also asked about momentum and near-term impacts like sub debt.
A: Management said the Q3 margin benefited from removing prior one-time headwinds, loan mix shifts toward core commercial lending, strong deposit generation, and some one-time accelerated interest income. They expect to operate in the low 4% range for the next several quarters and noted some Q4 timing headwinds from sub debt redemptions and seasonal outflows.
"And I think if you look back at the net interest margin over the past 4, 5 quarters, you can see the progress and it is not always linear." — Ivan Seda
buyback pace and capital targets
Q (Christopher McGratty · KBW): Analyst asked whether the $150–200 million quarterly buyback pace could rise and asked for medium-term CET1 and TCE targets.
A: Management said they are comfortable with the recent buyback pace and expect pacing to be consistent with the past year, though they intend to fully utilize the authorization over time. They reiterated long-standing capital targets, said modeling shows comfort under stress, and noted TCE historically aligns around roughly 8% with stable operations.
"Again, though, all things being consistent, the economy still being resilient, and things of that nature, our intent is to fully utilize it." — Clint E. Stein (CEO·CHAIR)
sub debt redemptions and NIM impact
Q (Jeff Rulis · D.A. Davidson): Analyst asked whether sub debt redemptions are a near-term headwind that will flip to a tailwind into 2027 and how that affects margin trajectory.
A: Management explained they completed a 10-non-call-5 sub debt issuance in mid-September and expect about $240 million of trust preferred redemptions, roughly $200 million representing excess Tier 2 capital that raises reliance on expensive capital in Q4. They said that dynamic is a modest headwind in Q4 but could be a modest benefit going into next year as redemptions complete.
"So really what that does is it means that we have got somewhere in the ballpark $200 million of excess tier 2 capital." — Ivan Seda
deposit growth drivers
Q (David Feaster · Raymond James): Analyst asked what drove strong deposit growth beyond seasonality and small business campaigns, and asked about commercial versus retail mix and markets.
A: Management said deposit growth reflects their business model and the ongoing activity of their bankers across the franchise, including commercial efforts, treasury management, and SBA work. They highlighted nearly $1 billion of commercial customer deposit growth, integrated PAC Premier contribution in Southern California, and fee-income gains from treasury, international banking, commercial card, and merchant services.
branch footprint and Basel III effect
Q (Bernard Vaughan Gazzicchi · Deutsche Bank): Analyst asked if more branch optimization remains by state and whether the $1.2 billion buyback assumed Basel III capital relief.
A: Management said branch changes are market-by-market and focus on density, profitability, and customer needs; fine-tuning continues but no mass closures are planned. On buybacks, they said Basel III relief would be additive and they are not counting on it; the board authorization allows flexibility beyond one year.
"So we do have flexibility to look beyond you know, a 1 year marker with what our board has authorized regarding that." — Ivan Seda
securities yield and loan levels
Q (Matthew Clark · Piper Sandler): Analyst asked why securities yield rose this quarter despite higher rates, and asked for outlook on loan and earning asset levels.
A: Management said the bond portfolio is repricing as purchases replace lower-yielding back book securities, and that fixed asset repricing continues to drive higher securities yield over time. For loans, they expect continued focus on relationship lending, transactional portfolio management at about $250 million per quarter, and flat to slightly down earning asset levels through Q4 into Q1.
"So you think about kind of modeling us out over a longer period of time, and or if you look kind of on a year on year basis, you will continue to see that fixed asset repricing story continue." — Ivan Seda
deposit beta and noninterest deposits
Q (David Chiaverini · Jeff): Analyst asked about deposit beta assumptions and outlook for noninterest-bearing deposit mix at 33%.
A: Management said they model a 50% deposit beta through the cycle and view that beta over months and quarters rather than days. They also said they aim to maintain the noninterest-bearing mix through relationship banking, new business wins, and full relationship pricing and that the mix has been steady in the current rate environment.
"I would say kind of 50% beta is a fair assumption going forward." — Ivan Seda
loan composition and expense outlook
Q (Janet Lee · TD Cowen): Analyst asked whether nontransactional loans are flat due to production offset by payoffs and if expense trajectory should change as growth accelerates into 2027.
A: Management said slide 25 shows quarter-to-quarter flat nontransactional loans after excluding transactional rundown; production has been steady in a roughly $1.2–1.4 billion range per quarter. For 2027 expense planning, they said they expect inflationary expense pressure and suggested modeling around a 2% range while continuing disciplined reinvestment and offsets found in vendor and contract savings.
"Excluding the rundown in the transactional portfolio, it is been roughly flat over the course of the quarter." — Ivan Seda
prepayment slowdown and CD rollovers
Q (Tahmir Baziller · UBS): Analyst asked if payoff activity slowed due to lower prepayments, what drove a large negative "other" column, and what CD replacement/rollover rates look like.
A: Management said they observed reduced prepayment speeds in August and September as rates rose and will follow up on the specific $417 million "other" item. They added that most remaining term deposits are retail CDs, they aim to stabilize that portfolio, and they see CD rollover rates north of 80% generally.
"I think we are seeing kind of, CD rollover rates probably north of 80% in general, Christopher." — Ivan Seda
treasury management penetration
Q (John Rowe · Barclays): Analyst asked what percentage of commercial customers use treasury management and how much runway remains.
A: Management said penetration of treasury management within commercial customers is about 58% and that growth is driven by technology signals (next-best-offer in Salesforce), relationship reviews, working capital assessments, and adding experienced treasury salespeople. They see continued opportunity from improved customer engagement and added sales talent.
"Penetration rate for treasury management and commercial is roughly 58%." — Torran Nixon