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Columbia Banking System (COLB)
NASDAQ:COLB
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Columbia Banking System
(NASDAQ:COLB)
63Neutral
Positive Factors
Expense Management
Expenses decreased by 1.8% quarter-over-quarter, better than the previous estimate, aided by lower compensation and employee benefits.
Financial Performance
Columbia Banking System reported better than expected quarter and guidance was mostly reiterated.
Negative Factors
Earnings Impact
Management's deemphasis of non-relationship businesses and commercial real estate should continue weighing on earnings and loan growth.
Columbia Banking System (COLB) vs. S&P 500 (SPY)
Market Cap
$5.14B
Dividend Yield5.75%
Average Volume (3M)1.47M
Price to Earnings (P/E)9.8
Beta (1Y)1.31
Revenue Growth7.84%
EPS Growth54.79%
CountryUS
Employees5,114
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)2.55
Shares Outstanding209,649,030
10 Day Avg. Volume2,005,740
30 Day Avg. Volume1,473,454
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)N/A
Price to Sales (P/S)2.88
Price to Cash Flow (P/CF)5.10
P/FCF Ratio4.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$32.61Price Target Upside36.50% Upside
Rating ConsensusHold
Number of Analyst Covering10
Columbia Banking System Business Overview & Revenue Model
Company DescriptionColumbia Banking System, Inc. (COLB) is a financial institution based in the United States, primarily operating in the banking sector. It offers a broad range of financial products and services tailored to both individual and commercial clients. The company's core offerings include personal and business banking services such as checking and savings accounts, loans, credit facilities, and wealth management services. Through its subsidiaries, Columbia Banking System serves various communities primarily in the Pacific Northwest, with a focus on providing high-quality customer service and local decision-making capabilities.
How the Company Makes MoneyColumbia 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 demonstrates strong revenue growth and effective cost management with a high gross profit margin. A robust equity position with no debt enhances financial stability. However, moderate net profit margins and inconsistent free cash flow growth present potential concerns.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.68
Positive
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.74
Positive
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.59
Neutral
| 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 |
| -496.67M | 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 | |||
| 658.87M | 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
Negative
23.89
Price Trends
26.85
Negative
27.81
Negative
24.88
Negative
Market Momentum
-0.74
Positive
26.77
Positive
11.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COLB, the sentiment is Negative. The current price of 23.89 is below the 20-day moving average (MA) of 26.14, below the 50-day MA of 26.85, and below the 200-day MA of 24.88, indicating a bearish trend. The MACD of -0.74 indicates Positive momentum. The RSI at 26.77 is Positive, neither overbought nor oversold. The STOCH value of 11.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for COLB.
Columbia Banking System Risk Analysis
Columbia Banking System disclosed 33 risk factors in its most recent earnings report. Columbia Banking System reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Columbia Banking System Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $4.71B | 10.38 | 7.53% | 3.65% | 15.34% | -3.89% | |
74 Outperform | $6.42B | 11.96 | 9.06% | 2.78% | 16.39% | -13.25% | |
69 Neutral | $6.98B | 10.13 | 13.15% | 3.35% | 7.91% | 13.79% | |
68 Neutral | $2.68B | 19.81 | 9.73% | 4.08% | 4.63% | -16.29% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
63 Neutral | $5.14B | 9.82 | 10.55% | 5.75% | 7.84% | 54.79% | |
60 Neutral | $8.02B | 10.90 | 12.32% | 2.06% | 13.60% | 8.85% |
* Financial Sector Average
Performance Comparison
COLB
Columbia Banking System
23.89
5.72
31.48%
BOH
Bank Of Hawaii
67.34
8.35
14.15%
FNB
F.N.B.
13.08
0.02
0.15%
ONB
Old National Bancorp Capital
20.13
4.06
25.26%
ZION
Zions Bancorporation National Association
47.33
7.77
19.64%
WAL
Western Alliance
73.65
16.08
27.93%
Columbia Banking System Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: -13.97% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The call highlighted strong financial performance with significant increases in net income and pre-provision net revenue. Improvement in net interest margin and successful loan and deposit growth were noted. However, challenges such as a decline in net interest margin compared to the previous year, expected seasonal deposit declines, and ongoing issues in the transactional real estate loans were discussed. The capital position remains strong, but comprehensive loss impacted TCE ratio.Highlights
Increase in Net Income and Pre-provision Net Revenue
Net income increased by 29% and pre-provision net revenue rose by 8% in the fourth quarter compared to the same period in 2023.
Successful Loan and Deposit Growth
Commercial loans grew by $228 million or 9% on an annualized basis, and total deposits increased by $200 million in the quarter.
Improvement in Net Interest Margin
Net interest margin improved by 8 basis points to 3.64% for the quarter.
Efficiencies from Organizational Initiatives
Normalized core expense base decreased by 8% compared to Q4 2023 due to organizational initiatives.
Strong Capital Position
Regulatory capital ratios increased, with CET1 at 10.5% and total risk-based capital at 12.6%.
Lowlights
Decline in Net Interest Margin Compared to Last Year
Net interest margin was down 14 basis points from the same quarter in the previous year.
Expected Seasonal Decline in Deposits
Anticipation of seasonal decline in customer deposits in Q1, potentially leading to an increase in wholesale funding costs.
Challenges in Transactional Real Estate Loans
There was a $50 million decline in CRE loans, which is expected to continue through 2025.
Impact of Higher Accumulated Comprehensive Loss
TCE ratio decreased to 7.2% at quarter end, partially due to a higher accumulated other comprehensive loss.
Company Guidance
During Columbia Banking Systems' Q4 2024 earnings call, the company reported significant financial metrics and outlined key strategic guidance. The normalized core expense base decreased by 8% compared to Q4 2023, while pre-provision net revenue rose by 8% and net income increased by 29% over the same period. The net interest margin (NIM) improved by 8 basis points to 3.64% for Q4, driven by strategic deposit cost reductions and a shift in wholesale funding. The bank maintained $1.4 billion in interest-bearing cash and reduced wholesale funding costs from 5% to 4.5%. The balance sheet reflected an increase of $178 million in total loans and a $200 million increase in deposits, offset by a $550 million reduction in borrowings. In 2024, the bank achieved a 16% operating return on average tangible equity and an operating EPS of $0.71. Looking ahead to 2025, Columbia plans to open 5 new branches, invest in digital solutions, and enhance data analytics to drive sustainable core fee income, alongside a projected increase in wholesale funding of up to $0.5 billion due to seasonal deposit flows.Columbia Banking System Corporate Events
Business Operations and StrategyFinancial Disclosures
Columbia Banking System Reports Strong Q4 2024 Results
Positive
Jan 23, 2025
Columbia Banking System, Inc. reported its fourth-quarter 2024 results, showcasing a significant improvement in financial performance. The company achieved a net income of $143 million and operating net income of $150 million, with earnings per share of $0.68 and operating earnings per share of $0.71. The results reflect efforts in optimizing expenses, enhancing pricing strategies, and investing in targeted franchises. Key highlights include a net interest margin increase to 3.64%, a decline in non-interest income due to accounting fluctuations, and a reduction in non-interest expenses. The company also plans to expand its branch network in 2025, using savings from branch consolidations in 2024, highlighting a strategic focus on growth and efficiency.
Financial Disclosures
Columbia Banking System to Announce Q4 2024 Results
Neutral
Dec 31, 2024
Columbia Banking System, Inc. has announced its plan to release the fourth quarter 2024 financial results on January 23, 2025, after market close. The company will host a quarterly earnings conference call on the same day, featuring discussions on financial results and recent activities, followed by a live question-and-answer session. This announcement is significant for investors and analysts as it provides insights into Columbia’s financial performance and strategic direction.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.