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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on COLB

Columbia Banking System's recent performance has been driven by several positive factors. The company's Q2 earnings beat, with $0.76 per share exceeding the Zacks Consensus Estimate of $0.66 per share. Additionally, Columbia Banking has a strong profit margin and a dividend yield above 5%. The planned acquisition of Pacific Premier Bancorp is expected to drive business expansion. The company has also announced a quarterly cash dividend of $0.36 per common share. Furthermore, Columbia Banking has been rated as a "Buy" by analysts, with a future price target presenting an average upside of +11%.

1.c. Company Highlights

2. Columbia Banking System's Strong Q4 2025 Earnings: A Robust Finish to a Significant Year

Columbia Banking System, Inc. reported a robust fourth quarter in 2025, driven by the successful integration of Pacific Premier (PAC Premier). Earnings per share (EPS) was $0.72, while operating EPS was $0.82, up 15% from the prior year's fourth quarter. The net interest margin expanded to 4.06%, driven by improved funding performance and earning asset optimization. The company's operating pre-provision net revenue (PPNR) rose 27% from the third quarter, driven by the full-quarter run rate of PAC Premier.

Publication Date: Jan -25

📋 Highlights
  • PPNR Growth & Margin Expansion: Fourth-quarter PPNR rose 27% to $294 million, driven by PAC Premier, with net interest margin expanding to 4.06%.
  • EPS & Operating EPS Increase: Earnings per share (EPS) reached $0.72, and operating EPS hit $0.82, a 15% annual increase.
  • Cost Savings & Expenses: $63 million in annualized cost savings achieved (50% of target), with noninterest expenses rising $66 million sequentially to $373 million.
  • Loan & Deposit Positioning: Loans/leases totaled $47.8 billion, deposits hit $54.2 billion, and Southern California deposit market share entered top 10.
  • Integration & Future Guidance: PAC Premier integration on track for $127 million cost savings by Q2 2026, with NIM expected to dip to 3.9-3.95% in Q1 before rising to 4%+ by mid-year.

Financial Performance and Key Highlights

The company's financial performance was bolstered by the acquisition, which added a top 10 deposit market share position in Southern California. Gross loans and leases were $47.8 billion, and total deposits were $54.2 billion as of December 31. Noninterest income increased 26% in 2025 over the previous year, driven by the addition of PAC Premier and efforts to expand core fee income.

Credit Profile and Balance Sheet

The company's credit profile remains stable, with a strong allowance for credit losses of 1.02% of loans. The investment securities portfolio increased by approximately $100 million during the fourth quarter. The loan decline of $680 million quarter on quarter was attributed to the transactional portfolio and commercial real estate construction and development.

Guidance and Outlook

The company expects net interest margin in the first quarter to be between 3.9% and 3.95%. They anticipate continued balance sheet optimization, with earning asset contraction possible in the first quarter. The company plans to increase share repurchase activity to a range of $150 million to $200 million per quarter in 2026. Earning assets are expected to be around $60.5 to $61 billion in Q1, with modest growth or stability throughout 2026.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) of around 1.09 and a Dividend Yield of 5.02%, Columbia Banking System's valuation appears reasonable. The company's commitment to returning capital to shareholders is evident in its plans to increase share repurchase activity. Analysts estimate next year's revenue growth at 2.6%, and the actual EPS of $0.82 beat estimates of $0.72, indicating a strong finish to the year.

3. NewsRoom

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Channing Capital Management LLC Makes New Investment in Columbia Banking System, Inc. $COLB

Feb -22

Source: defenseworld.net

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AMG National Trust Bank Invests $1.65 Million in Columbia Banking System, Inc. $COLB

Feb -22

Source: defenseworld.net

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Columbia Banking System to Present at the RBC Capital Markets Conference

Feb -20

Source: prnewswire.com

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Columbia Banking System Announces $0.37 Per Common Share Dividend

Feb -13

Source: prnewswire.com

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Columbia Banking's 2026 Playbook After Pacific Premier Buyout

Feb -04

Source: zacks.com

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Where COLB's NIM Goes Next Amid Loans Remix & Easing Rates

Feb -03

Source: zacks.com

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COLB Trades at 9.65x and Yields a 5%: Is Hold the Right Call?

Feb -03

Source: zacks.com

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Mirae Asset Global Investments Co. Ltd. Buys 87,627 Shares of Columbia Banking System, Inc. $COLB

Feb -01

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.00%)

6. Segments

Commercial and Consumer Banking

Expected Growth: 2.0%

Columbia Banking System's 2.0% growth in Commercial and Consumer Banking is driven by a strong loan pipeline, increased commercial lending, and expansion of treasury management services. Additionally, strategic investments in digital banking platforms and targeted marketing efforts have contributed to growth in consumer deposits and fee income.

7. Detailed Products

Commercial Banking

Columbia Banking System provides commercial banking services to businesses, including cash management, treasury management, and commercial lending.

Consumer Banking

Columbia Banking System offers consumer banking services, including checking and savings accounts, credit cards, and personal loans.

Mortgage Banking

Columbia Banking System provides mortgage banking services, including residential and commercial mortgage lending.

Wealth Management

Columbia Banking System offers wealth management services, including investment management, trust services, and financial planning.

Treasury Management

Columbia Banking System provides treasury management services, including cash management, wire transfers, and account reconciliation.

Digital Banking

Columbia Banking System offers digital banking services, including online banking, mobile banking, and mobile deposit.

8. Columbia Banking System, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Columbia Banking System, Inc. operates in a highly competitive industry, with many banks and financial institutions offering similar services. However, the company's strong brand recognition and customer loyalty mitigate the threat of substitutes.

Bargaining Power Of Customers

Columbia Banking System, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong relationships with its customers and personalized services reduce the likelihood of customers switching to competitors.

Bargaining Power Of Suppliers

Columbia Banking System, Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position and long-term relationships with suppliers also mitigate the bargaining power of suppliers.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and significant capital requirements. Additionally, Columbia Banking System, Inc.'s strong brand recognition and established customer base make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. Columbia Banking System, Inc. faces intense competition from larger banks and fintech companies, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 48.27%
Debt Cost 7.97%
Equity Weight 51.73%
Equity Cost 8.35%
WACC 8.17%
Leverage 93.30%

11. Quality Control: Columbia Banking System, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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United Bankshares

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Value: 6.5

Growth: 5.0

Quality: 7.7

Yield: 8.0

Momentum: 4.0

Volatility: 8.7

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Columbia Banking System

A-Score: 6.2/10

Value: 6.9

Growth: 7.1

Quality: 6.3

Yield: 8.0

Momentum: 3.5

Volatility: 5.7

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Quality: 7.9

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Quality: 7.1

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Growth: 6.9

Quality: 5.6

Yield: 6.0

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A-Score: 5.6/10

Value: 6.7

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Quality: 7.6

Yield: 5.0

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Volatility: 3.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

30.65$

Current Price

30.65$

Potential

-0.00%

Expected Cash-Flows