Columbia Banking System (COLB) AI Stock Analysis

• Market Cap: $5.14B
• Dividend Yield: 5.88%
• Average Volume (3M): 2.09M
• Price to Earnings (P/E): 10.3
• Beta (1Y): 1.09
• Revenue Growth: -0.17%
• EPS Growth: 1.69%
• Country: US
• Employees: 4,721
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 0.67
• Shares Outstanding: 210,207,050
• 10 Day Avg. Volume: 2,489,208
• 30 Day Avg. Volume: 2,087,113
• PEG Ratio: -1.70
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.75
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 1.52
• Enterprise Value/Ebitda: 1.59
• 1Y Price Target: $27.27
• Price Target Upside: 11.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 73 Outperform
• Price Target: $26.00 ▲(6.25%Upside)

Columbia Banking System's overall score is driven by strong financial performance and strategic growth initiatives. The valuation suggests it is an attractive investment, augmented by a healthy dividend yield. Technical indicators show mixed signals, and recent corporate events support long-term growth, despite minor risks from legal settlements.

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.

Valuation

Columbia Banking System remains discounted relative to the quality of the franchise, a discount expected to fade.

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. (COLB) is a financial holding company headquartered in Tacoma, Washington. It operates through its wholly-owned banking subsidiary, Columbia State Bank, providing a full range of banking services to small and medium-sized businesses, professionals, and individuals. The company's core offerings include commercial banking, retail banking, and wealth management services. Through its extensive network of branches across the Pacific Northwest, including Washington, Oregon, and Idaho, Columbia Banking System delivers a wide array of financial products such as loans, deposits, and treasury management services.

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 shows robust revenue growth and a strong equity position, but the declining cash reserves and inconsistent free cash flow growth are concerning. Overall, the company is stable but needs to address cash flow management.

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
EBITDA	0.00	0.00	478.88M	0.00	0.00
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	496.67M	2.16B	4.88B	6.63B	5.51B
Total Debt	3.66B	4.50B	1.41B	482.88M	1.23B
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	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: Positive
• Last Price: 24.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COLB, the sentiment is Positive. The current price of 24.47 is above the 20-day moving average (MA) of 23.28, above the 50-day MA of 23.39, and below the 200-day MA of 25.49, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 66.42 is Neutral, neither overbought nor oversold. The STOCH value of 88.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COLB.

Columbia Banking System Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HWC	79 Outperform	$5.08B	10.95	11.53%	3.03%	3.35%	26.35%
FNB	78 Outperform	$5.42B	11.88	7.40%	3.19%	10.34%	2.54%
COLB	73 Outperform	$5.14B	10.33	9.73%	5.88%	-0.17%	1.69%
GBCI	73 Outperform	$5.16B	24.32	6.63%	2.90%	8.10%	6.95%
VLY	71 Outperform	$5.15B	13.39	5.48%	4.79%	1.48%	-18.84%
UBSI	70 Outperform	$5.34B	13.93	7.30%	3.94%	6.59%	2.88%
Sector *	67 Neutral	¥713.20B	10.86	7.42%	3.37%	7.74%	16.12%

Columbia Banking System Corporate Events

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.

Columbia Banking System Announces Merger with Pacific Premier

On April 23, 2025, Columbia Banking System and Pacific Premier Bancorp announced a definitive merger agreement where Columbia will acquire Pacific Premier in an all-stock transaction valued at approximately $2 billion. This merger is set to create a leading regional bank in the Western U.S. with around $70 billion in assets, enhancing Columbia’s market presence and accelerating its expansion in Southern California. The merger promises strategic benefits such as increased market density, expanded product offerings, and improved financial performance, including mid-teens EPS accretion and top-quartile profitability metrics. The transaction, which requires no outside capital, is expected to close in the second half of 2025, pending customary approvals.

Columbia Banking System Reports Q1 2025 Results

Columbia Banking System reported its first-quarter 2025 results, highlighting a net income of $87 million and an operating net income of $140 million. Despite a decrease in net interest income and margin, the company saw a significant increase in customer deposits, attributed to successful small business campaigns. The acquisition of Pacific Premier Bancorp is expected to enhance long-term shareholder value and expand its market reach. However, the quarter also saw an increase in non-interest expenses due to a legal settlement and severance costs. The company declared a quarterly cash dividend and opened its first branch in Colorado, further supporting its expansion strategy.