# Columbia Banking System Sets 4.05% Q4 Margin Outlook, Authorizes $1.2 Billion Buyback

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/39147
Published: 2026-10-23T17:02:28.000Z
Updated: 2026-10-23T17:02:28.000Z
Section: Business

> The bank expects to repurchase $150 million to $200 million in shares during the fourth quarter. The authorization has no expiration date and does not require purchases.

Columbia Banking System expects net interest margin of about 4.05% in the fourth quarter of 2026 and has authorized up to $1.2 billion in share repurchases, pairing a lower margin outlook with a new capital-return plan.

Executive Vice President and Chief Financial Officer Ivan Seda said the forecast includes modestly negative carry from carrying excess subordinated debt throughout the quarter. Management expects fourth-quarter share repurchases of $150 million to $200 million.

The projected margin is six basis points below the 4.11% Columbia reported for the third quarter. That figure rose 18 basis points from 3.93% in the second quarter. Columbia attributed the increase to higher loan and taxable securities yields, along with customer deposits replacing higher-cost wholesale funding. Accelerated repayments of two acquired loans added three basis points to third-quarter margin.

Columbia Bank issued $250 million in subordinated notes in September. The notes are due in 2036 and carry a fixed annual rate of 6.721% for the first five years. Columbia expects to use part of the proceeds to redeem about $240 million in junior subordinated debentures, with redemptions expected in the fourth quarter and early 2027.

The board’s new authorization has no expiration date and does not require Columbia to make purchases. The board may suspend, terminate or modify the program.

Columbia repurchased 6.5 million shares for $199 million in the third quarter, at an average price of $30.65. Its previous program, completed by Sept. 30, covered 23.3 million shares bought at an average price of $29.88 between November 2025 and Sept. 30, 2026.