Columbia Banking System (COLB) AI Stock Analysis

• Market Cap: $4.91B
• Dividend Yield: 6.17%
• Average Volume (3M): 2.36M
• Price to Earnings (P/E): 10.3
• Beta (1Y): 1.14
• Revenue Growth: -0.17%
• EPS Growth: 1.69%
• Country: US
• Employees: 4,721
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 0.76
• Shares Outstanding: 210,207,050
• 10 Day Avg. Volume: 2,363,136
• 30 Day Avg. Volume: 2,362,661
• PEG Ratio: -1.37
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.97
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 3.41
• Enterprise Value/Ebitda: 1.89
• 1Y Price Target: $26.80
• Price Target Upside: 14.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 72 Outperform
• Price Target: $26.00 ▲(11.35%Upside)

Columbia Banking System's strong financial performance, strategic growth initiatives, and attractive valuation are significant positives. Mixed technical signals and challenges such as net interest margin contraction and legal issues in the merger process temper the overall outlook.

Positive Factors

Profitability Strategy

The bank is prioritizing profitability over short-term balance sheet growth, replacing lower-margin transactional real estate business with more profitable commercial relationships.

Share Buybacks

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

Valuation

Shares are inexpensive regardless of the EPS timing, at ~10x FY25 EPS, and the discount is expected to narrow along with better EPS growth.

Negative Factors

Deposit Competition

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

Deposit Outflows

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. operates as the bank holding company for Columbia State Bank that provides a range of banking services to small and medium-sized businesses, professionals, and individuals in the United States. It offers personal banking products and services, including noninterest and interest-bearing checking, savings, money market, and certificate of deposit accounts; home mortgages for purchases and refinances, home equity loans and lines of credit, and other personal loans; debit and credit cards; and digital banking services. The company also provides business banking products and services, such as checking, savings, interest-bearing money market, and certificate of deposit accounts; agricultural, asset-based, builder, and other commercial real estate loans, as well as loans guaranteed by the small business administration; and professional banking, treasury management, merchant card, and international banking services. In addition, it offers wealth management solutions that include financial planning services, such as asset allocation, net worth analysis, estate planning and preservation, education funding, and wealth transfer; long-term care, and life and disability insurance solutions; individual retirement solutions comprising retirement planning, retirement income strategies, and traditional and Roth individual retirement accounts; and business solutions, which comprise business retirement plans, key person insurance, business succession planning, and deferred compensation plans to individuals, families, and professional businesses. Further, the company provides fiduciary, investment, and administrative trust services, such as personal and special needs trusts, estate settlement, and investment agency and charitable management. It operates a network of 153 branch locations, including 68 in the state of Washington, 59 in Oregon, 15 in Idaho, and 11 in California. The company was founded in 1993 and is headquartered in Tacoma, Washington.

How the Company Makes Money

Columbia Banking System primarily generates revenue through the interest income from its lending activities, which include commercial and consumer loans, as well as mortgage financing. The company also earns non-interest income from various fees associated with its deposit products and services, such as service charges, card fees, and wealth management advisory fees. Additionally, Columbia Banking System benefits from strategic partnerships and local community engagements, which enhance its market presence and customer base. The company's financial performance is closely tied to the economic conditions of the regions it serves, interest rate fluctuations, and regulatory environment.

Columbia Banking System Financial Statement Overview

Summary

Columbia Banking System exhibits strong profitability and cash flow metrics, despite a slowdown in revenue growth. Operational efficiency and solid capital management support overall financial stability.

Income Statement

Columbia Banking System demonstrates robust profitability with a consistent gross profit margin and improving net profit margin over the years. The TTM revenue shows a slight decline compared to the previous annual figure, but EBIT and EBITDA margins remain strong, indicating operational efficiency. The revenue growth rate has slowed, which could signal a mature market or increased competition.

Balance Sheet

The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio, indicating reasonable leverage. The equity ratio suggests a solid equity base, though slightly below average for the banking industry. Return on equity shows a positive trend, signifying effective utilization of shareholder funds.

Cash Flow

The cash flow statement showcases strong operational cash flow, with a healthy free cash flow to net income ratio. The company has maintained positive free cash flow growth, which is a good indicator of financial health and capability to fund future growth or return capital to shareholders.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.97B	2.74B	1.35B	1.32B	1.42B
Gross Profit	1.82B	1.78B	1.19B	1.32B	1.09B
EBITDA	868.62M	615.45M	478.88M	589.66M	-1.42B
Net Income	533.67M	348.71M	336.75M	420.30M	-1.52B
Balance Sheet
Total Assets	51.58B	52.17B	31.85B	30.64B	29.24B
Cash, Cash Equivalents and Short-Term Investments	2.08B	10.99B	4.49B	6.63B	5.51B
Total Debt	3.90B	4.76B	1.72B	975.13M	1.60B
Total Liabilities	46.46B	47.18B	29.37B	27.89B	26.53B
Stockholders Equity	5.12B	5.00B	2.48B	2.75B	2.70B
Cash Flow
Free Cash Flow	623.20M	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: 23.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 23.35 is below the 20-day moving average (MA) of 24.41, below the 50-day MA of 23.85, and below the 200-day MA of 25.49, indicating a bearish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 41.86 is Neutral, neither overbought nor oversold. The STOCH value of 37.48 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
HWC	80 Outperform	$5.25B	11.30	11.02%	2.81%	0.30%	―
FNB	79 Outperform	$5.80B	12.51	7.41%	3.08%	7.51%	8.42%
GBCI	74 Outperform	$5.21B	24.55	6.63%	3.60%	8.10%	6.95%
VLY	74 Outperform	$5.34B	12.49	6.33%	4.62%	0.20%	9.86%
COLB	72 Outperform	$4.91B	10.30	9.73%	6.17%	-0.17%	1.69%
UBSI	70 Outperform	$5.20B	13.67	7.71%	4.04%	8.07%	6.94%
Sector *	68 Neutral	¥760.77B	10.93	7.55%	3.20%	7.81%	14.63%

Columbia Banking System Corporate Events

Columbia Banking System Reports Strong Q2 2025 Results

Columbia Banking System reported strong financial results for the second quarter of 2025, with net income reaching $152 million and a net interest margin of 3.75%. The company experienced growth in commercial loans and higher yields on investment securities, which contributed to increased net interest income. Despite a seasonal decline in customer deposits, the bank’s strategic initiatives, including a successful small business and retail campaign, attracted over $450 million in new deposits. The opening of new branches in Arizona and Eastern Oregon further supports its growth strategy. The company’s focus on profitability and balance sheet optimization, alongside expense discipline, has positioned it well for future growth and shareholder returns.

The most recent analyst rating on (COLB) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Columbia Banking System stock, see the COLB Stock Forecast page.

Columbia Banking System’s Merger with Pacific Premier Approved

On July 21, 2025, Columbia Banking System and Pacific Premier Bancorp announced the approval of their merger by shareholders, a significant step towards Columbia’s acquisition of Pacific Premier. This merger aims to enhance market leadership across the West and create value for customers and shareholders, with the transaction expected to close later in 2025 after regulatory approvals.

The most recent analyst rating on (COLB) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Columbia Banking System stock, see the COLB Stock Forecast page.

Columbia Banking System Faces Legal Challenges in Merger

On April 23, 2025, Columbia Banking System entered into a merger agreement with Pacific Premier Bancorp, aiming to merge their operations and enhance their market presence. However, the proposed transaction has faced legal challenges, with complaints filed against both companies alleging breaches of fiduciary duty and material omissions in the joint proxy statement. Despite these challenges, Columbia and Pacific Premier plan to supplement their disclosures to address the claims, while denying any wrongdoing.

The most recent analyst rating on (COLB) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Columbia Banking System stock, see the COLB Stock Forecast page.

Columbia Banking System to Announce Q2 2025 Results

Columbia Banking System, Inc. announced on June 30, 2025, that it will release its second quarter 2025 financial results on July 24, 2025, after market close. The company will host a conference call on the same day to discuss these results and recent activities, providing an opportunity for investors and analysts to engage with management through a live question-and-answer session. This announcement is significant as it offers stakeholders insights into the company’s financial performance and strategic direction.

The most recent analyst rating on (COLB) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Columbia Banking System stock, see the COLB Stock Forecast page.

Columbia Banking System Declares Quarterly Dividend

On May 16, 2025, Columbia Banking System, Inc. announced that its Board of Directors approved a quarterly cash dividend of $0.36 per common share, payable on June 16, 2025, to shareholders recorded by May 30, 2025. This decision reflects Columbia’s ongoing commitment to returning value to its shareholders and may enhance its attractiveness to investors, reinforcing its position as a significant player in the regional banking sector.

The most recent analyst rating on (COLB) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Columbia Banking System stock, see the COLB Stock Forecast page.

Columbia Banking System Holds 2025 Shareholders Meeting

On May 15, 2025, Columbia Banking System, Inc. held its 2025 Annual Meeting of Shareholders, where key decisions were made, including the election of eleven directors to serve until the 2026 Annual Meeting. Shareholders also voted on advisory resolutions regarding executive compensation and the ratification of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These decisions are indicative of the company’s ongoing governance and operational strategies, impacting its future direction and stakeholder relations.

The most recent analyst rating on (COLB) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Columbia Banking System stock, see the COLB Stock Forecast page.

Columbia Banking System Reviews Investor Presentation Plans

On May 5, 2025, Columbia Banking System, Inc. announced its intention to review an investor slide presentation during upcoming investor meetings. This presentation is part of a proposed business combination transaction between Columbia and Pacific Premier Bancorp, Inc., which involves various forward-looking statements about the potential benefits and timing of the transaction. The announcement highlights the numerous risks and uncertainties that could impact the transaction’s success, including economic conditions, regulatory approvals, and market reactions.