Regional banking company Columbia Banking System (NASDAQ: COLB) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 8.2% year on year to $510.9 million. Its GAAP profit of $0.73 per share was 11.1% above analysts’ consensus estimates.

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"Our second quarter results demonstrate our focus on profitability and balance sheet optimization," said Clint Stein, President and CEO.

Company Overview

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.

Sales Growth

From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions.

Over the last five years, Columbia Banking System grew its revenue at an impressive 10.3% compounded annual growth rate. Its growth beat the average bank company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Columbia Banking System’s annualized revenue growth of 11% over the last two years aligns with its five-year trend, suggesting its demand was predictably strong. 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 year-on-year revenue growth of 8.2%, and its $510.9 million of revenue exceeded Wall Street’s estimates by 3.8%.

Net interest income made up 82.1% of the company’s total revenue during the last five years, meaning Columbia Banking System barely relies on non-interest income to drive its overall growth.

Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.

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Tangible Book Value Per Share (TBVPS)

Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.

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. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.

Columbia Banking System’s TBVPS was flat over the last five years. However, TBVPS growth has accelerated recently, growing by 10.9% annually over the last two years from $15.02 to $18.47 per share.

Over the next 12 months, Consensus estimates call for Columbia Banking System’s TBVPS to grow by 3.8% to $19.17, paltry growth rate.

Key Takeaways from Columbia Banking System’s Q2 Results

We enjoyed seeing United Bankshares beat analysts’ expectations across the board this quarter. Zooming out, we think this print featured some important positives. The stock traded up 3.7% to $24.16 immediately after reporting.

Columbia Banking System may have had a good quarter, but does that mean you should invest right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.