Group 1 - The upcoming year is expected to be challenging for Columbia Banking System (COLB) shareholders [1] - The acquisition of Pacific Premier is viewed positively in terms of long-term strategy [1] - Columbia has a low-cost funding base and efficient cost management, which are advantageous for growth [1]

Core Insights - Columbia Banking (COLB) aims to reaccelerate revenues and reshape its balance sheet following the acquisition of Pacific Premier, with a focus on building sustainable top-line drivers through margin actions and fee income platforms into 2026 [1] Revenue Performance - In Q3 2025, Columbia Banking's total revenue increased by 17% year-over-year to $582 million, with both net interest income (NII) and non-interest income rising by 17% [2] - The integration of Pacific Premier contributed to early benefits, and net interest margin (NIM) expanded due to growth in customer deposits and reduced reliance on higher-cost brokered deposits and term debt [2] Margin and Income Expectations - Management anticipates a NIM of approximately 3.90% in Q4 2025, supported by around $12 million in deposit premium amortization, with a similar margin expected in Q1 2026 despite a slight decrease in average earning assets [3] - Excluding one-time items, NII is projected to remain stable in early 2026 [3] Fee Income Growth - Year-to-date in 2025, treasury management and commercial card fees have increased compared to the previous year, with notable growth in financial services, trust, and international banking revenues, which now constitute a significant portion of COLB's non-interest income [4] - The acquisition of Pacific Premier has introduced additional fee income sources, including Custodial Trust Services and homeowners association banking, leading to over 1,200 cross-sell referrals and significant deposit inflows [5] Sales Estimates - The Zacks Consensus Estimate forecasts a substantial increase in sales from $2.28 billion in 2025 to $2.76 billion in 2026, driven by the integration of Pacific Premier and a strategic shift towards relationship-driven commercial and industrial banking linked to deposits and fees [6] - Production and pipelines improved in Q3 2025, enhancing the revenue mix as cost synergies are expected to materialize through 2026 [6] Earnings Projections - The Zacks Consensus Estimate for COLB's earnings is projected at $2.91 for 2025 and $3.07 for 2026, reflecting year-over-year growth of 7.4% for 2025 and 5.6% for 2026 [11] Competitive Positioning - Columbia Banking's peers, East West Bancorp (EWBC) and Western Alliance Bancorporation (WAL), are expected to see sales growth of 11.7% and 4.5% for 2025 and 9.3% and 9.2% for 2026, respectively [13][14]

Core Viewpoint - Columbia Banking (COLB) stock has increased by 32.6% over the past six months, driven by strong quarterly performance, the acquisition of Pacific Premier, and favorable operating conditions [1][9] Financial Performance - The third-quarter 2025 results showed a 17% year-over-year increase in total revenues, with net interest income (NII) also up by 17%, and net interest margin (NIM) improved to 3.84% from 3.56% a year ago [2] - Management expects fourth-quarter 2025 NIM to be "just north of" 3.90%, supported by approximately $12 million in deposit premium amortization [5] Cost Management and Synergies - Columbia Banking targets $127 million in annual cost savings from the Pacific Premier acquisition, with $48 million already realized by September 30, 2025 [8] - Operating expenses are anticipated to be between $330 million and $340 million per quarter for the next several quarters [8] Shareholder Returns - The board has authorized up to $700 million in share repurchases through November 30, 2026, which could enhance per-share metrics if executed [7] - The quarterly dividend has been raised by 2.8% to 37 cents per share, yielding 5.1% [7] Valuation and Earnings Estimates - COLB trades at a forward P/E of 9.52X, which is below the industry average, with a price target of $31 [11] - The Zacks Consensus Estimate for COLB's earnings is $2.91 for 2025 and $3.07 for 2026, indicating year-over-year growth of 7.4% for 2025 and 5.6% for 2026 [12]

Core Insights - Columbia Banking (COLB) is focusing on dividend income and share buybacks while integrating Pacific Premier, with management's execution through 2026 being a critical factor for shareholder rewards [1] - COLB's shares have increased by 29.4% over the past six months, outperforming the industry's 17.4% rise [1] Dividend and Share Buyback - Columbia Banking offers a 5.06% dividend yield, recently raised to 37 cents per share, and has authorized up to $700 million in share repurchases through November 30, 2026 [3][6] - The bank's capital levels exceed regulatory requirements, with a common equity Tier 1 ratio of 11.6% and total risk-based capital at 13.4% as of September 30, 2025 [6] Cost Savings and Earnings - The integration of Pacific Premier is expected to yield $127 million in annual cost savings, with $48 million already realized [6][11] - COLB trades at a forward P/E of 9.55X, which is below the broader Finance sector's 17.36X and the S&P 500's 23.35X, indicating a relative discount despite improving fundamentals [8] Earnings Drivers - The net interest margin (NIM) improved to 3.84% in Q3 2025, with expectations of approximately 3.90% in Q4 2025 [10] - The consensus estimate for COLB's Q4 2025 earnings is 74 cents per share, reflecting a year-over-year growth of 4.2% [12] Integration and Efficiency - Non-interest expenses rose due to merger and restructuring costs, with management targeting operating expenses of $330-$340 million per quarter for the next several quarters [13] - The Pacific Premier system conversion is planned for Q1 2026, with a normalized expense run-rate expected by Q3 2026 [14] Loan Growth and Credit Risks - Loan growth expectations are muted as the company manages down approximately $8 billion of inherited transactional loans over eight quarters starting in Q3 2025 [15] - Credit quality remains a concern, particularly in small-ticket leasing and office loans, with net charge-offs increasing in Q3 2025 [16] Investment Consideration - Currently, COLB holds a Zacks Rank 3 (Hold) with a price target of $31 over the next 6-12 months, suggesting modest upside from current levels [17][18]

Core Viewpoint - Columbia Banking System (COLB) is focusing on relationship deposits, funding mix shifts, and fee growth to protect its net interest margin (NIM) as the interest rate cycle changes [1] Group 1: NIM and Financial Performance - Columbia Banking's NIM improved to 3.84% in 3Q25 from 3.56% a year ago, with expectations of NIM being "just north of" 3.90% in 4Q25 and 1Q26 [2] - The bank's deposits are granular and diversified, with a focus on full-relationship funding and proactive repricing, targeting deposit betas around 50% for rate cuts to support NIM expansion [3][9] - Columbia Banking is expected to manage down $8 billion of inherited transactional loans over approximately eight quarters starting from 3Q25, reallocating towards relationship commercial and industrial (C&I) and owner-occupied commercial real estate (CRE) [5] Group 2: Strategic Initiatives and Synergies - The merger with Pacific Premier has increased cross-selling opportunities, generating over 1,200 referrals since closing, which has contributed to deposit inflows [4][9] - Management's near-term focus includes cost normalization after systems work in 1Q26 and achieving full synergy capture by 3Q26 [1] Group 3: Market Position and Competitors - Columbia Banking currently holds a Zacks Rank 3 (Hold), indicating a balanced outlook, with key points to monitor including the 1Q26 system conversion and quarterly NIM outcomes [6] - Key peers include East West Bancorp (Zacks Rank 2) and Zions Bancorporation (Zacks Rank 2), both of which are experiencing varying impacts on their NIM due to market conditions [7][8]

Core Insights - Columbia Banking System (COLB) is shifting from transactional loans to full relationship banking following the Pacific Premier acquisition, focusing on granular deposits and fee platforms to enhance earnings durability [1][9] Loan Strategy - Management plans to reduce $8 billion in inherited transactional loans, primarily multifamily, over eight quarters starting in Q3 2025, reallocating capital to relationship-driven commercial and industrial (C&I) and owner-occupied commercial real estate (CRE) [2][9] - As of September 30, 2025, C&I and owner-occupied CRE loans represented approximately 21% and 15% of total loans, respectively, with a focus on lending that enhances leverage and returns [4] Financial Performance - The net interest margin (NIM) improved to 3.84% in Q3 2025 from 3.56% a year earlier, driven by increased customer deposits and reduced reliance on higher-cost wholesale funding [3][9] - NIM is projected to reach 3.90% in Q4 2025 and Q1 2026, supported by lower funding costs from relationship deposits [6] Revenue Growth - Fee income from treasury management and commercial card services has expanded, with non-interest income from these services making up nearly 30% as of September 30, 2025 [7] - Management anticipates a high-teens operating return on tangible common equity (ROTCE) and earnings in the low $3s for 2026, aligning with synergy realization and the loan mix shift [7][10] Relationship Development - Columbia Banking has seen improvements in C&I production and pipelines, indicating the effectiveness of its new strategy, with over 1,200 cross-sell referrals generated since the Pacific Premier deal [5] - The acquisition is expected to enhance the breadth of products offered, supporting deeper customer relationships and increasing wallet share [4]

Core Insights - Columbia Banking System (COLB) is positioning itself for growth through its 2026 plan, focusing on margin, cost, capital, and fee income following the completion of the Pacific Premier deal in August [1] Current Position of Columbia Banking System - COLB's network now includes approximately 350 branches across eight Western states, with total deposits of $55.8 billion, loans and leases of $48.5 billion, and total assets of $67.5 billion as of September 30, 2025 [2] Margin and Interest Income - COLB's net interest margin (NIM) improved to 3.84% in Q3 2025 from 3.56% a year earlier, with expectations of NIM reaching approximately 3.90% in Q4 2025 and Q1 2026 [3] - A shift in deposit mix towards core customers and proactive repricing is expected to stabilize core net interest income (NII) into early 2026 [4] Fee Income Growth - Fee income from treasury management, commercial cards, and wealth/financial services has grown, with these services nearing 30% of non-interest income as of September 30, 2025 [5] - New platforms from the Pacific Premier acquisition are anticipated to enhance fee income through deeper customer relationships [5] Cost Management - Management aims for $127 million in annualized cost savings from the merger, with $48 million already realized by September 30, 2025 [6] - Operating expenses are projected to be between $330 million and $340 million per quarter for several quarters, with a full system conversion planned for Q1 2026 [6] Capital Position - Columbia Banking System's capital ratios improved, with a Common Equity Tier 1 (CET1) ratio of 11.6% and a total risk-based ratio of 13.4% as of Q3 2025 [7] - The board has authorized up to $700 million in share repurchases through November [7] Future Outlook for 2026 - Management anticipates a high-teens operating Return on Tangible Common Equity (ROTCE) framework for 2026, with earnings per share expected to cluster in the low $3s [10] - Execution will depend on successful integration and a shift in loan focus towards relationship-based lending [11] Integration and Cost Dynamics - Integration and restructuring costs may lead to volatility in near-term expenses until synergies are fully realized [12] - The company's office exposure was 8% of loans as of September 30, 2025, with non-performing assets increasing to nearly $200 million [12] Competitive Landscape - Competitive pricing pressures from larger banks and digital competitors could impact COLB's deposit costs, although management is actively working to defend core funding [13]

Core Insights - U.S. markets are experiencing a notable upswing, driven by expectations of further interest rate cuts by the Federal Reserve, positive global economic growth outlooks, and improving investor sentiment [1] Group 1: Investment Opportunities - Investors are advised to focus on fundamentally solid banks that offer robust dividend yields, specifically U.S. Bancorp (USB), KeyCorp (KEY), and Columbia Banking System (COLB) [2] - These banks have been identified using the Zacks Stocks Screener, with USB having a Zacks Rank 2 (Buy) and KEY and COLB both holding a Zacks Rank 3 (Hold) [3] Group 2: U.S. Bancorp (USB) - U.S. Bancorp has shown strong growth in total loans and deposits, supported by stabilizing funding costs and strategic acquisitions [7][8] - The company is focusing on artificial intelligence and digital infrastructure to enhance profitability, with a current dividend yield of 4.3% [8][10] - USB's long-term debt is $62.5 billion, with $15.4 billion in short-term borrowings and cash and due from banks totaling $66.6 billion as of September 30, 2025 [9] Group 3: KeyCorp (KEY) - KeyCorp is positioned to benefit from solid loan and deposit balances, with expectations of a 22% increase in net interest income (NII) and a 2% rise in period-end loans by 2025 [13] - The company maintains a decent liquidity position with total debt of $16.5 billion and cash and short-term investments of $15.3 billion as of September 30, 2025 [15] - KeyCorp has a dividend yield of 4.5% and has increased its dividend payout twice in the last five years [15] Group 4: Columbia Banking System (COLB) - Columbia Banking focuses on relationship banking and has expanded its footprint through strategic acquisitions, including the recent acquisition of Pacific Premier [18] - The company expects a net interest margin (NIM) of just over 3.90% in Q4 2025, with strong capital generation supporting growth [19] - COLB has a dividend yield of 5.1% and has increased its dividend payout three times in the last five years [20]

Core Insights - Columbia Banking System, Inc. (COLB) has announced a quarterly dividend of 37 cents per share, reflecting a 2.8% increase from the previous payout [1][10] - The company has a current dividend yield of 5.59%, significantly higher than the industry average of 3.27% [2] - Over the past five years, COLB has increased its dividend three times, maintaining a five-year annualized dividend growth rate of 7.05% and a payout ratio of 48% [2][4] Dividend and Capital Distribution - The upcoming dividend will be paid on December 15, 2025, to shareholders of record as of November 28, 2025 [1] - Columbia Banking has authorized a new share repurchase plan of up to $700 million, effective through November 30, 2026 [5][10] - As of September 30, 2025, the company reported total cash and cash equivalents of $2.3 billion and short-term debt of $2.9 billion, with no long-term debt [5][10] Price Performance - Over the past six months, shares of Columbia Banking have increased by 3.4%, outperforming the industry growth of 2.3% [7]

Core Points - Columbia Banking System, Inc. announced a quarterly cash dividend of $0.37 per common share, marking a 3% increase from the previous dividend declaration [1][2] - The dividend is scheduled to be paid on December 15, 2025, to shareholders of record as of November 28, 2025 [1] - The company also revealed a $700 million share repurchase program, indicating a strong commitment to returning capital to shareholders [2] Company Overview - Columbia Banking System, Inc. is headquartered in Tacoma, Washington, and is the parent company of Columbia Bank, which is the largest bank in the Northwest and one of the largest in the West [2] - Columbia Bank offers a comprehensive range of services, including retail and commercial banking, SBA lending, corporate banking, and wealth management [2] - The company emphasizes its commitment to delivering superior, personalized service while combining the resources of a national bank [2]