Columbia Banking System (COLB) AI Stock Analysis

• Market Cap: $4.38B
• Dividend Yield: 6.91%
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): 8.2
• Beta (1Y): 1.21
• Revenue Growth: 7.84%
• EPS Growth: 54.79%
• Country: US
• Employees: 4,721
• Sector: Financial
• Sector Strength: 86
• Industry: Banks - Regional
• EPS (TTM): 2.55
• Shares Outstanding: 210,114,700
• 10 Day Avg. Volume: 2,186,046
• 30 Day Avg. Volume: 1,847,346
• PEG Ratio: 0.15
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.84
• Price to Cash Flow (P/CF): 5.10
• P/FCF Ratio: 4.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $30.06
• Price Target Upside: 44.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

Columbia Banking System shows robust financial health with strong revenue growth and no debt. The attractive valuation and high dividend yield are appealing, although technical indicators suggest caution. Earnings call insights are positive but highlight some challenges such as declining net interest margins. Corporate events indicate strategic growth potential, but legal proceedings present a risk.

Positive Factors

Expense Management

Expenses decreased by 1.8% quarter-over-quarter, better than the previous estimate, aided by lower compensation and employee benefits.

Share Buybacks

Buybacks may be on the table before anticipated, with management calling buybacks very attractive.

Negative Factors

Deposit Competition

Management does not see competition for deposits diminishing in the future.

Net Interest Income Challenges

Deposit outflows are expected to drive compression in 1Q25, making the NII trajectory challenging in the first half of 2025.

Columbia Banking System Business Overview & Revenue Model

Company Description

Columbia Banking System, Inc. (COLB) is a financial institution based in the United States, primarily operating in the banking sector. It offers a broad range of financial products and services tailored to both individual and commercial clients. The company's core offerings include personal and business banking services such as checking and savings accounts, loans, credit facilities, and wealth management services. Through its subsidiaries, Columbia Banking System serves various communities primarily in the Pacific Northwest, with a focus on providing high-quality customer service and local decision-making capabilities.

How the Company Makes Money

Columbia Banking System makes money primarily through the interest income generated from its loan portfolio, which includes commercial loans, real estate loans, and consumer loans. Additionally, the bank earns revenue from fees associated with its banking services, such as account maintenance fees, transaction fees, and service charges. The company also gains income from wealth management and investment services, offering advisory and brokerage services to its clients. Columbia Banking System’s revenue is further supported by strategic partnerships with other financial service providers, enhancing its product offerings and expanding its market reach.

Columbia Banking System Financial Statement Overview

Summary

Columbia Banking System shows strong revenue growth and a solid equity position with no debt, enhancing financial stability. However, declining cash reserves and inconsistent free cash flow growth present potential risks.

Income Statement

Columbia Banking System demonstrates a strong revenue growth rate from 2023 to 2024, indicating positive business expansion. The gross profit margin remains high, showcasing effective cost management. However, the net profit margin has room for improvement, as it is moderate compared to industry standards. The absence of EBITDA data limits a complete analysis of operational efficiency.

Balance Sheet

The company's balance sheet reveals a strong equity position with no total debt as of 2024, enhancing financial stability and reducing risk. The equity ratio indicates solid financial health, and the return on equity is decent, reflecting satisfactory shareholder returns. However, the declining cash reserves could be a concern if it continues.

Cash Flow

The operating cash flow is positive, indicating adequate cash generation from operations. The free cash flow is consistent, yet its growth rate has been inconsistent. The operating cash flow to net income ratio suggests efficient cash conversion, but the declining trend in cash reserves is a potential risk.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.76B	1.78B	547.56M	1.28B	1.29B
	Gross Profit
2.76B	1.78B	547.56M	1.28B	1.29B
	EBIT
2.74B	642.86M	386.21M	558.16M	-1.46B
	EBITDA
0.00	0.00	478.88M	0.00	0.00
	Net Income Common Stockholders
533.67M	348.71M	336.75M	420.30M	-1.52B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
496.67M	2.16B	4.88B	6.63B	5.51B
	Total Assets
51.58B	52.17B	31.85B	30.64B	29.24B
	Total Debt
3.66B	4.50B	1.41B	482.88M	1.23B
	Net Debt
-496.67M	2.34B	114.68M	-2.28B	-1.34B
	Total Liabilities
46.46B	47.18B	29.37B	487.23M	1.23B
	Stockholders Equity
5.12B	5.00B	2.48B	2.75B	2.70B
Cash Flow		Free Cash Flow
658.87M	669.84M	1.04B	647.25M	81.79M
	Operating Cash Flow
658.87M	669.84M	1.07B	662.72M	93.77M
	Investing Cash Flow
114.57M	501.74M	-3.53B	-1.53B	-960.11M
	Financing Cash Flow
-1.06B	-303.69M	1.00B	1.06B	2.08B

Columbia Banking System Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COLB, the sentiment is Negative. The current price of 20.84 is below the 20-day moving average (MA) of 23.68, below the 50-day MA of 25.24, and below the 200-day MA of 25.54, indicating a bearish trend. The MACD of -0.30 indicates Negative momentum. The RSI at 42.65 is Neutral, neither overbought nor oversold. The STOCH value of 33.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for COLB.

Columbia Banking System Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FNB	78 Outperform	$4.24B	9.32	7.53%	4.07%	15.34%	-3.89%
HWC	75 Outperform	$4.02B	8.82	11.54%	3.54%	7.67%	17.51%
VLY	68 Neutral	$4.50B	11.60	5.38%	5.47%	6.09%	-26.94%
GBCI	67 Neutral	$4.33B	22.73	6.09%	3.46%	11.66%	-16.50%
COLB	66 Neutral	$4.38B	8.17	10.55%	6.91%	7.84%	54.79%
Sector *	64 Neutral	$13.37B	9.30	9.39%	4.85%	16.11%	-8.85%
UBSI	61 Neutral	$4.56B	11.54	7.62%	4.65%	6.80%	1.48%

Columbia Banking System Corporate Events

Columbia Banking System Completes Integration with Umpqua Holdings

On March 31, 2025, Columbia Banking System, Inc. announced the completion of its integration with Umpqua Holdings Corporation, leading to the elimination of the Executive Chair position held by Cort O’Haver. Mr. O’Haver, who played a crucial role in the merger’s success, resigned from the board, and Maria Pope was appointed as the independent, non-executive Chair effective April 1, 2025. This transition marks a return to a traditional governance structure, positioning the company for future growth under the leadership of CEO Clint E. Stein and the newly appointed Chair, Maria Pope.

Columbia Banking System to Release Q1 2025 Results

On March 31, 2025, Columbia Banking System announced that it will release its first quarter 2025 financial results on April 24, 2025, followed by a conference call for investors and analysts. This announcement highlights Columbia’s transparency and commitment to keeping stakeholders informed about its financial performance and recent activities.

Columbia Banking System Faces $55M Settlement Proposal

In August 2020, a class action complaint was filed against Umpqua Bank, a subsidiary of Columbia Banking System, alleging its involvement in the failure of two real estate investment companies. A mistrial was declared in March 2025, and a proposed settlement of $55 million was filed later that month, pending court approval and expected to be funded by early 2026.

Columbia Banking System Reports Strong Q4 2024 Results

Columbia Banking System, Inc. reported its fourth-quarter 2024 results, showcasing a significant improvement in financial performance. The company achieved a net income of $143 million and operating net income of $150 million, with earnings per share of $0.68 and operating earnings per share of $0.71. The results reflect efforts in optimizing expenses, enhancing pricing strategies, and investing in targeted franchises. Key highlights include a net interest margin increase to 3.64%, a decline in non-interest income due to accounting fluctuations, and a reduction in non-interest expenses. The company also plans to expand its branch network in 2025, using savings from branch consolidations in 2024, highlighting a strategic focus on growth and efficiency.