Columbia Banking System (COLB) is a Pacific Northwest-focused state commercial bank with $66.0B in total assets as of March 31, 2026. Under a liquidation lens, the recovery posture to equity is materially constrained by the intangible asset stack and the scale of deposit and borrowing obligations relative to tangible asset recoveries. Goodwill of $1.5B and other intangibles (core deposit intangibles) of $671M are assigned zero recovery value in liquidation, eliminating $2.15B of book equity before any loan haircut is applied. Reported shareholders' equity was $7.7B at quarter-end; stripping intangibles yields tangible common equity of approximately $5.3B before applying haircuts to remaining assets. The loan book at $47.7B gross (net $47.2B after $459M ACLLL) warrants a moderate recovery haircut. Non-performing assets rose sharply QoQ to $264M from $200M (a 32% increase), with non-accrual loans jumping to $187M from $116M, driven by commercial real estate non-accruals nearly doubling ($91M from $50M) and commercial non-accruals rising from $66M to $96M. ACL coverage of non-accrual loans compressed from 418% to 256%, signaling deteriorating coverage ratios even as the absolute ACL declined slightly ($459M from $466M). The $10.9B AFS securities portfolio carries $410M of gross unrealized losses; at current fair value this portfolio is already marked to market, so liquidation recovery approximates current fair value with limited additional haircut. The liability stack is dominated by $53.5B in deposits (at face value in liquidation) and $3.4B in FHLB advances all maturing within 2026, plus $430M in junior subordinated debentures. The deposit base carries $20.9B in estimated uninsured deposits (39%), presenting run-risk concentration but not itself a liquidation haircut driver. AOCI was negative $291M, already embedded in book equity. Goodwill and intangibles are discussed extensively in MD&A but no impairment was recognized this period. The filing notes QoQ NPA deterioration is characterized as normalization rather than a credit break, though the commercial real estate non-accrual doubling in a single quarter is notable. Off-balance-sheet loan commitments of $11.9B and letters of credit of $429M represent contingent liabilities at face value in a wind-down scenario.
▼ Community Notes