Inside a $147 Million Columbia Banking Position Built During a Soft Year for the Stock

Core Insights - Columbia Banking System is experiencing a strategic shift with a focus on capital accumulation, margin expansion, and significant share buybacks despite slowing headline profits [1][12] Company Overview - Columbia Banking System operates as a regional financial institution with a strong presence in the Pacific Northwest and California, offering a diversified banking model that includes both lending and non-interest income streams [6][9] - The company has recently completed a transformative acquisition, increasing total assets to approximately $67.5 billion and achieving a net interest margin of 3.84%, up from 3.56% a year earlier [10] Financial Performance - For the trailing twelve months (TTM), Columbia Banking System reported revenue of $2.07 billion and net income of $478.68 million, with a dividend yield of 5% [4] - The company’s GAAP EPS fell to $0.40 from $0.73 in the prior quarter due to merger and restructuring costs, but the operating EPS was reported at $0.85, indicating strong normalized earnings power [11] Investment Activity - HoldCo Asset Management increased its stake in Columbia Banking System by purchasing 1.24 million shares valued at $31.48 million, bringing its total holdings to 5.72 million shares worth $147.30 million as of September 30 [2][3] - Columbia Banking System now represents 15.55% of HoldCo's $947.56 million assets under management (AUM) [3] Strategic Initiatives - The management has authorized a $700 million share repurchase program through late 2026, reflecting confidence in the bank's ability to generate excess capital even after a major acquisition [12] - The bank's core deposit growth increased by approximately $14 billion quarter over quarter, reaching $55.8 billion, largely attributed to the recent acquisition [10]