Regional banking company Columbia Banking System (NASDAQ:COLB) announced better-than-expected revenue in Q4 CY2025, with sales up 45.2% year on year to $717 million. Its non-GAAP profit of $0.82 per share was 14.6% above analysts’ consensus estimates.

Is now the time to buy Columbia Banking System? Find out in our full research report.

Net Interest Income: $627 million vs analyst estimates of $609.5 million (43.4% year-on-year growth, 2.9% beat)

Net Interest Margin: 4.1% vs analyst estimates of 3.9% (13.2 basis point beat)

Revenue: $717 million vs analyst estimates of $696.2 million (45.2% year-on-year growth, 3% beat)

Efficiency Ratio: 57.3% vs analyst estimates of 52.7% (462.5 basis point miss)

Adjusted EPS: $0.82 vs analyst estimates of $0.72 (14.6% beat)

Tangible Book Value per Share: $19.11 vs analyst estimates of $18.90 (11.1% year-on-year growth, 1.1% beat)

Market Capitalization: $8.88 billion

"Our fourth quarter performance marked a strong end to a tremendous year for Columbia, reflecting continued momentum across our businesses and our commitment to consistent, repeatable results," said Clint Stein, President and CEO.

Created through the merger of two Pacific Northwest banking institutions with deep regional roots, Columbia Banking System (NASDAQ:COLB) operates Umpqua Bank, providing commercial, consumer, and wealth management services across eight western states.

In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees. Luckily, Columbia Banking System’s revenue grew at an incredible 30.9% compounded annual growth rate over the last five years. Its growth beat the average banking company and shows its offerings resonate with customers.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Columbia Banking System’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 6.7% over the last two years was well below its five-year trend.

Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Columbia Banking System reported magnificent year-on-year revenue growth of 45.2%, and its $717 million of revenue beat Wall Street’s estimates by 3%.

Net interest income made up 96.2% of the company’s total revenue during the last five years, meaning Columbia Banking System lives and dies by its lending activities because non-interest income barely moves the needle.

Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.

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Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.

This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.

Columbia Banking System’s TBVPS declined at a 1.4% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 8.9% annually over the last two years from $16.12 to $19.11 per share.

Over the next 12 months, Consensus estimates call for Columbia Banking System’s TBVPS to grow by 6.4% to $20.34, lousy growth rate.

It was good to see Columbia Banking System beat analysts’ EPS expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. Zooming out, we think this quarter featured some important positives. The stock traded up 2.4% to $30.35 immediately after reporting.

Sure, Columbia Banking System had a solid quarter, but if we look at the bigger picture, is this stock a buy? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.