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KBRA Assigns Rating to $250 Million Subordinated Notes Issued by Columbia Bank

COLB
  • KBRA assigns a Stable Outlook A- rating to $250 million subordinated notes issued by Columbia Bank with maturity on September 18, 2036.
  • The notes are callable by the bank starting September 18, 2031.
  • Net proceeds will fund general corporate purposes & retire trust preferred securities at holding company Columbia Banking System, Inc. (NASDAQ: COLB).
  • Columbia Bank's ratings reflect solid multi-year performance anchored by a stable deposit base driving a 3.93% Net Interest Margin in 2Q26.
  • Noninterest-bearing deposits comprised 33% of total deposits at 2Q26, contributing to margin stability.
  • Capital ratios remained essentially unchanged in the linked quarter as shareholder distributions exceeding net income were offset by a modest asset decline.
  • The note issuance & trust preferred repayment will cause a modest reduction in the bank's capital ratios.
  • Positive rating action is unlikely in the intermediate term due to the company's high standing within KBRA's rated universe.
  • Negative rating pressure could occur if capital ratios diverge significantly from peer averages or if asset quality deteriorates materially.
  • KBRA is a registered NRSRO with the SEC, a CRA with ESMA & FCA, & a DRO for the Ontario Securities Commission.