Columbia Banking System (COLB) AI Stock Analysis

• Market Cap: $5.68B
• Dividend Yield: 5.41%
• Average Volume (3M): 3.81M
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.14
• Revenue Growth: -1.39%
• EPS Growth: 11.31%
• Country: US
• Employees: 4,721
• Sector: Financial
• Sector Strength: 75
• Industry: Banks - Regional
• EPS (TTM): 0.76
• Shares Outstanding: 299,171,260
• 10 Day Avg. Volume: 6,186,345
• 30 Day Avg. Volume: 3,806,927
• PEG Ratio: 0.25
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 1.90
• P/FCF Ratio: 9.03
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 2.85
• Enterprise Value/Gross Profit: 4.59
• Enterprise Value/Ebitda: 10.26
• 1Y Price Target: $28.82
• Price Target Upside: 7.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 79 Outperform
• Price Target: $31.00 ▲(15.80% Upside)

Columbia Banking System's strong financial performance, positive technical indicators, and strategic acquisitions position it well for future growth. The attractive valuation and robust dividend yield further enhance its investment appeal. However, challenges such as declining deposit balances and macroeconomic uncertainties remain.

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.

Stock Buybacks

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

Negative Factors

Balance Sheet Strategy

The strategy in the near term is optimizing the balance sheet, not necessarily driving for growth.

Deposit Competition

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

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 generates revenue primarily through net interest income and non-interest income. Net interest income is derived from the difference between the interest earned on loans and the interest paid on deposits, a common revenue stream for banks. The bank provides various loan products, including commercial loans, residential mortgages, and consumer loans, which contribute significantly to this income. Additionally, non-interest income comes from services such as fees for account maintenance, transaction services, mortgage origination fees, and wealth management services. Significant partnerships with local businesses and community organizations also enhance its customer base and revenue opportunities. Economic factors such as interest rates and the overall health of the regional economy can also impact earnings.

Columbia Banking System Financial Statement Overview

Summary

Columbia Banking System demonstrates robust profitability with strong operational efficiency and effective capital management. The balance sheet is stable, though revenue growth has slowed, indicating potential market maturity or competition.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.95B	2.97B	2.74B	1.35B	1.32B	1.42B
Gross Profit	1.83B	1.82B	1.78B	1.19B	1.32B	1.09B
EBITDA	818.46M	868.62M	615.45M	478.88M	589.66M	-1.42B
Net Income	496.20M	533.67M	348.71M	336.75M	420.30M	-1.52B
Balance Sheet
Total Assets	51.52B	51.58B	52.17B	31.85B	30.64B	29.24B
Cash, Cash Equivalents and Short-Term Investments	2.33B	2.08B	10.99B	4.49B	6.63B	5.51B
Total Debt	3.29B	3.90B	4.76B	1.72B	975.13M	1.60B
Total Liabilities	46.28B	46.46B	47.18B	29.37B	27.89B	26.53B
Stockholders Equity	5.24B	5.12B	5.00B	2.48B	2.75B	2.70B
Cash Flow
Free Cash Flow	565.36M	623.20M	669.84M	1.04B	647.25M	81.79M
Operating Cash Flow	595.37M	658.87M	669.84M	1.07B	662.72M	93.77M
Investing Cash Flow	442.49M	114.57M	501.74M	-3.53B	-1.53B	-960.11M
Financing Cash Flow	-1.17B	-1.06B	-303.69M	1.00B	1.06B	2.08B

Columbia Banking System Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 26.77 is above the 20-day moving average (MA) of 25.57, above the 50-day MA of 24.57, and above the 200-day MA of 24.94, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 62.42 is Neutral, neither overbought nor oversold. The STOCH value of 70.01 is Neutral, 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
OZK	80 Outperform	$5.94B	8.49	12.68%	3.23%	7.12%	2.47%
COLB	79 Outperform	$5.68B	10.73	10.24%	5.41%	-1.39%	11.31%
FNB	78 Outperform	$5.89B	12.73	7.40%	2.86%	7.73%	8.39%
HOMB	77 Outperform	$5.81B	13.50	10.94%	2.63%	4.40%	14.01%
GBCI	74 Outperform	$5.78B	25.31	6.60%	2.70%	8.37%	17.00%
VLY	72 Outperform	$5.83B	13.33	6.33%	4.19%	0.20%	9.86%
Sector *	68 Neutral	$18.05B	11.73	10.24%	3.73%	9.66%	1.70%

Columbia Banking System Corporate Events

Columbia Banking System Completes Major Acquisition

On September 2, 2025, Columbia Banking System completed its acquisition of Pacific Premier Bancorp, significantly enhancing its strategic expansion in Southern California and solidifying its market leadership in Northern California, Washington, Oregon, and Arizona. This acquisition increases Columbia’s assets to approximately $70 billion, with more than 350 locations across eight western states, reinforcing its position as a regional banking leader. The integration of systems and services is expected in the first quarter of 2026, with the unified Columbia brand now serving customers, marking a significant milestone in Columbia’s growth and market presence.

Columbia Banking System Announces Q3 2025 Results Date

On August 29, 2025, Columbia Banking System, Inc. announced it will release its third quarter 2025 financial results on October 30, 2025, after market close. The company will host a conference call for investors and analysts on the same day to discuss the financial results and recent activities, followed by a live Q&A session. This announcement highlights Columbia’s commitment to transparency and engagement with stakeholders, potentially impacting its market positioning and investor relations.

Columbia Banking System Declares Quarterly Cash Dividend

On August 15, 2025, Columbia Banking System, Inc. announced that its Board of Directors approved a quarterly cash dividend of $0.36 per common share. This dividend is set to be paid on September 15, 2025, to shareholders recorded by August 29, 2025. This decision reflects Columbia’s ongoing commitment to returning value to its shareholders and may positively impact its market positioning by reinforcing investor confidence.

Columbia Banking System Gains Approval for Merger

On August 6, 2025, Columbia Banking System and Pacific Premier Bancorp announced they received all necessary regulatory approvals for their merger, initially announced on April 23, 2025. The merger is expected to close by August 31, 2025, enhancing Columbia’s market position in the western U.S. and promising long-term value for stakeholders.

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.

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.

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.

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.