Columbia Banking System (COLB) AI Stock Analysis

• Market Cap: $5.26B
• Dividend Yield: 5.75%
• Average Volume (3M): 2.21M
• Price to Earnings (P/E): 10.6
• Beta (1Y): 1.12
• Revenue Growth: -0.21%
• EPS Growth: 1.69%
• Country: US
• Employees: 4,721
• Sector: Financial
• Sector Strength: 84
• Industry: Banks - Regional
• EPS (TTM): 0.67
• Shares Outstanding: 210,200,790
• 10 Day Avg. Volume: 1,966,965
• 30 Day Avg. Volume: 2,213,301
• PEG Ratio: -1.36
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.88
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 3.16
• Enterprise Value/Ebitda: 3.31
• 1Y Price Target: $27.65
• Price Target Upside: 10.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Columbia Banking System's strong revenue growth and sound equity position are offset by cash flow concerns. The stock's valuation is attractive, but technical indicators suggest caution. Recent acquisitions and strategic moves are promising, yet challenges such as a legal settlement and net interest margin contraction need careful management.

Positive Factors

Expense Management

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

Stock 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

Seasonality seems to be playing out, explaining the DDA outflows that are likely to occur.

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. 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 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 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
	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
1.79B	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
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: 25.02
• 50DMA: Positive
• 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 Positive. The current price of 25.02 is above the 20-day moving average (MA) of 23.68, above the 50-day MA of 23.62, and below the 200-day MA of 25.80, indicating a neutral trend. The MACD of 0.53 indicates Negative momentum. The RSI at 60.63 is Neutral, neither overbought nor oversold. The STOCH value of 72.67 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
FNB	76 Outperform	$5.19B	11.41	7.40%	3.33%	10.18%	2.27%
HWC	75 Outperform	$4.86B	10.48	11.53%	2.91%	-2.86%	―
GBCI	73 Outperform	$4.85B	22.87	6.63%	3.09%	8.10%	6.95%
VLY	69 Neutral	$5.13B	13.34	5.48%	4.80%	1.60%	-18.84%
UBSI	68 Neutral	$5.29B	13.84	7.30%	3.98%	6.39%	2.93%
COLB	67 Neutral	$5.26B	10.57	9.73%	5.75%	-0.21%	1.69%
Sector *	64 Neutral	$12.82B	9.83	7.68%	17000.34%	12.38%	-5.56%

Columbia Banking System Corporate Events

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.

Spark’s Take on COLB Stock

According to Spark, TipRanks’ AI Analyst, COLB is a Neutral.

Columbia Banking System is well-positioned with strong revenue growth and a solid equity base, yet faces challenges with cash flow management and technical indicators suggesting a bearish trend. Valuation metrics are favorable, offering potential for value investors, while recent earnings and corporate events suggest mixed impacts. Monitoring cash reserves and market momentum will be key for future stock performance.

To see Spark’s full report on COLB stock, click here.

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.

Spark’s Take on COLB Stock

According to Spark, TipRanks’ AI Analyst, COLB is a Neutral.

Columbia Banking System is well-positioned with strong revenue growth and a solid equity base, yet faces challenges with cash flow management and technical indicators suggesting a bearish trend. Valuation metrics are favorable, offering potential for value investors, while recent earnings and corporate events suggest mixed impacts. Monitoring cash reserves and market momentum will be key for future stock performance.

To see Spark’s full report on COLB stock, click here.

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.