Key Takeaways COLB now spans eight Western states and ~350 branches after the Pacific Premier deal closed in August 2025.COLB's NIM rose to 4.06% in Q4 2025, with management aiming to stay above 4% by mid-2026.COLB has $700M buyback authority through late 2026, with plans for $150-$200M repurchased per quarter.Columbia Banking (COLB) now spans eight Western states with roughly 350 branches and a relationship-first model linking commercial, small business, consumer and wealth teams. Shares have outperformed ...

Core Insights - Columbia Banking (COLB) ended 2025 with improved funding structure, stable spreads, and an expanded presence in the Western U.S. following the acquisition of Pacific Premier [1] - The net interest margin (NIM) for Q4 2025 reached 4.06%, an increase of 42 basis points year-over-year, driven by lower deposit costs and reduced reliance on higher-cost wholesale funding [1][10] - Net interest income (NII) rose by 43% year-over-year in the first full quarter after the merger, supported by lower funding costs and a broader range of earning assets [1] Funding and Margin Outlook - Management anticipates NIM to increase each quarter in 2026, potentially exceeding 4% in Q2 or Q3 as deposit balances recover and balance sheet optimization continues [2] - The bank aims to maintain NIM as rates decline, with deposit betas targeted around half and proactive repricing strategies in place [2] Loan Portfolio Management - Columbia Banking is reducing approximately $8 billion in inherited multi-family balances over eight quarters starting from Q3 2025, which will limit headline loan growth through 2027 [3] - The focus is shifting towards relationship-driven commercial and industrial loans and owner-occupied commercial real estate, which are expected to generate deposits and fees [3] Fee Income and Revenue Diversification - Treasury management and commercial card fees saw year-over-year increases in 2025, with significant growth in financial services, trust, and international banking revenues [5] - Card, financial services, and trust now account for nearly 34% of non-interest income, providing stability as loan growth slows [5] Strategic Enhancements Post-Acquisition - The acquisition of Pacific Premier has expanded Columbia Banking's service offerings, including homeowners association banking and custodial trust services, leading to over 1,200 cross-sell referrals since the merger [6] Expense Management and Operational Efficiency - Expense normalization is crucial following the first-quarter system conversion, with anticipated operating expenses (excluding amortization) of $335-$345 million in Q1 and Q2, normalizing by Q3 as savings from the Pacific Premier integration are fully realized [7] Market Competition and Credit Quality - Monitoring deposit trends is essential as competition remains high, with large national banks and digital competitors potentially exerting pricing pressure on NIM [8] - Credit quality is another area of concern, with increased loss content in small-ticket leasing and office loans comprising 8% of total loans, although overall credit metrics remain manageable [9]

Core Insights - Columbia Banking (COLB) has shown recovery with four consecutive quarterly earnings beats and a strengthened presence in the Western market following the acquisition of Pacific Premier in August 2025 [1][10] - The short-term outlook is rated Zacks Rank 3 (Hold), indicating steady estimate momentum rather than acceleration [1] - Core trends suggest improving margins and capital deployment strategies extending into 2026 [1] Valuation Metrics - COLB shares are currently trading at 9.65x forward 12-month earnings, compared to 10.46x for industry peers, 17.25x for the broader Finance sector, and 23.24x for the S&P 500 [2] - The five-year median P/E for COLB is 9.24x, indicating a modest discount relative to peers but consistent with its historical valuation [2] Dividend and Income - The dividend yield for COLB stands at approximately 5.0%, following a 2.8% increase to 37 cents per share announced in November 2025, enhancing total-return appeal [4] - Fee income has improved, with growth in treasury management and commercial card fees, supported by new platforms from Pacific Premier [7] Near-Term Financial Projections - Management projects a net interest margin (NIM) of 3.90-3.95% for Q1, with expected net interest income of $600 million [5][10] - Operating expenses (excluding amortization) are anticipated to be between $335-$345 million in the first two quarters, with a reduction expected in Q3 as synergies from the Pacific Premier acquisition are realized [5] Margin and Capital Management - NIM improved to 4.06% in Q4 2025 due to reduced deposit costs and wholesale funding, with projections for NIM to trend higher throughout 2026 [6] - Capital ratios have increased, allowing for enhanced buybacks and a higher dividend, with nearly $600 million remaining under the repurchase program and plans to buy back $150-$200 million per quarter in 2026 [8][10] Competitive Context - COLB's valuation is compared to peers such as East West Bancorp (EWBC) and Banner Corporation (BANR), both holding a Zacks Rank 3, with EWBC trading at a P/E of 11.12x and BANR at 10.59x [13] - The current valuation of COLB at 9.65x forward earnings and a yield of around 5% suggests a balanced near-term risk-reward profile [14]

Core Insights - Albert Anthony is a Croatian-American business author and analyst contributing to Seeking Alpha with over 1,000 followers [1] - He has authored a book titled "Real Estate Investment Trusts (REITs): A Fundamental Analysis (2026 Edition)" available on Amazon [1] - Anthony has a background in business and information systems, having worked at Charles Schwab in the IT department [1] - He operates his own boutique equities research firm, Albert Anthony & Company, remotely [1] - The author has participated in numerous business and innovation conferences and has hosted a program for Online Live TV Croatia [1] - He holds a B.A. in Political Science and various certifications including Microsoft Fundamentals and Risk Management specialization from CFI [1] - Anthony is also active on YouTube discussing REITs and is an investor in REIT stocks [1] Company and Industry Summary - Albert Anthony & Company is a Texas-registered business focused on equities research [1] - The firm provides general market commentary and research based on publicly available data [1] - The author does not engage with non-publicly traded companies, small cap stocks, or startup CEOs [1]

RBC Capital raised the firm’s price target on Columbia Banking (COLB) to $32 from $30 and keeps a Sector Perform rating on the shares after its Q4 earnings beat. Comparisons were impacted by the Pacific Premier acquisition close on August 31st, though core trends were solid with the continued favorable mix shift in assets, margin strength, and tight expense control, the analyst tells investors in a research note. The management is signaling a slightly smaller balance sheet to start the year and a lower marg ...

Columbia Banking System Inc (NASDAQ:COLB) reported upbeat earnings for the fourth quarter on Thursday.The company posted quarterly earnings of 82 cents per share which beat the analyst consensus estimate of 71 cents per share. The company reported quarterly sales of $717.000 million which beat the analyst consensus estimate of $696.191 million.“Our fourth quarter performance marked a strong end to a tremendous year for Columbia, reflecting continued momentum across our businesses and our commitment to consi ...

Columbia Banking System Inc (NASDAQ:COLB) reported upbeat earnings for the fourth quarter on Thursday.The company posted quarterly earnings of 82 cents per share which beat the analyst consensus estimate of 71 cents per share. The company reported quarterly sales of $717.000 million which beat the analyst consensus estimate of $696.191 million.“Our fourth quarter performance marked a strong end to a tremendous year for Columbia, reflecting continued momentum across our businesses and our commitment to consi ...

Key Takeaways COLB posted Q4 operating EPS of $0.82, up from $0.71, beating the consensus estimate of $0.72.Total revenues rose 47% to $717M, driven by strong NII and 80% growth in non-interest income.Credit provisions dropped to $23M and non-performing assets fell 3 bps to 0.30% of total assets.Columbia Banking System’s (COLB)  fourth-quarter 2025 operating earnings of 82 cents per share easily outpaced the Zacks Consensus Estimate of 72 cents. The bottom line also compared favorably with 71 cents in the p ...

Core Insights - Columbia Banking (COLB) reported $717 million in revenue for Q4 2025, marking a year-over-year increase of 47.2% and exceeding the Zacks Consensus Estimate by 3.3% [1] - The earnings per share (EPS) for the same quarter was $0.82, up from $0.71 a year ago, representing a surprise of 13.89% over the consensus estimate of $0.72 [1] Financial Performance Metrics - Net charge-offs to average loans and leases were 0.3%, matching the three-analyst average estimate [4] - Average balance of total interest-earning assets was $61.68 billion, slightly below the $61.73 billion average estimate [4] - Efficiency ratio stood at 57.3%, higher than the 51.9% average estimate [4] - Net interest margin was reported at 4.1%, exceeding the 3.7% average estimate [4] - Total non-performing loans and leases amounted to $198 million, better than the two-analyst average estimate of $209.76 million [4] - Total non-performing assets were $200 million, also better than the two-analyst average estimate of $212.79 million [4] - Net interest income reached $627 million, surpassing the $609.28 million average estimate [4] - Total noninterest income was $90 million, exceeding the $87.58 million average estimate [4] - Service charges on deposits were $24 million, above the $22.62 million average estimate [4] - Net interest income (FTE) was $629 million, compared to the $611.61 million average estimate [4] - Financial services and trust revenue was $15 million, higher than the $12.12 million average estimate [4] Stock Performance - Columbia Banking shares returned +3.8% over the past month, outperforming the Zacks S&P 500 composite's +0.7% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - The acquisition of Pacific Premier has strengthened Columbia Banking System's competitive position in the Western markets, particularly in Southern California, where it now holds a top-10 deposit market share [3][7] - The company reported consistent operating performance for 2025, driven by the Pacific Premier acquisition, balance sheet optimization, and disciplined expense control [4] - Management expects continued improvement in net interest margin (NIM) and plans to launch additional retail deposit campaigns [6][19] Integration and Operational Performance - The integration of Pacific Premier is progressing smoothly, with a systems conversion expected this quarter and a focus on cultural integration and customer service [2][7] - Columbia achieved a 27% increase in pre-provision net revenue and a 19% increase in operating net income in Q4 compared to the previous quarter [8] - Non-interest income for the quarter was strong, totaling $90 million, with contributions from Pacific Premier and increased customer fees [11] Financial Metrics - Q4 operating EPS was reported at $0.82, with a net interest margin of 4.06%, up from 3.84% in Q3 [6][9] - Total deposits decreased to $54.2 billion due to intentional reductions in brokered deposits, but deposit campaigns added $1.3 billion in 2025 [5][15][17] - The company raised its dividend to $0.37 per share and repurchased 3.7 million shares in Q4, with plans for further buybacks in 2026 [5][18] Loan and Deposit Trends - Gross loans and leases ended the year at $47.8 billion, with a 23% increase in new loan origination volume in Q4 compared to the previous year [13][14] - Management anticipates modest contraction in deposits through Q1, with expectations for net growth to resume in the spring [16] - The company has opened new de novo locations in multiple states and plans targeted additional openings in 2026 [7] Future Outlook - Management expects NIM to be between 3.90% and 3.95% in Q1, with improvements anticipated throughout 2026 [18][19] - The company is actively managing deposit pricing based on competitive conditions, with a focus on a "rates down deposit playbook" [19] - Share repurchases are expected to increase to $150 million to $200 million per quarter in 2026, with significant excess capital available [23]