Is Columbia Banking System, Inc. (COLB) A Good Stock To Buy Now?

Is COLB a bully banal to buy? We came crossed a bullish thesis on Columbia Banking System, Inc. connected The Dividend Auditor’s Substack. In this article, we volition summarize the bulls’ thesis connected COLB. Columbia Banking System, Inc.'s stock was trading astatine $29.18 arsenic of June 2^nd. COLB’s trailing and guardant P/E were 11.37 and 9.51 respectively according to Yahoo Finance.

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Columbia Banking System, Inc. operates arsenic the slope holding institution for Columbia Bank that provides banking, backstage banking, mortgage, and different fiscal services successful the United States. COLB is presented arsenic a misunderstood determination slope whose reported net obscure a importantly stronger underlying business.

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While investors absorption connected GAAP net weighed down by merger-related costs, halfway operating show remains robust, with operating EPS of $3.25 successful FY2025 expected to turn to $3.48 successful FY2026. At astir $26 per share, COLB trades astatine conscionable 7.5x guardant operating net and offers a 5.7% dividend yield, creating an charismatic valuation disconnect.

The marketplace remains acrophobic astir integration costs from the Pacific Premier acquisition, a seemingly elevated fourth-quarter nett involvement borderline (NIM), muted indebtedness growth, and broader determination banking risks. However, absorption has clarified that the reported 4.06% NIM included impermanent benefits, with a normalized halfway NIM of astir 3.95%, inactive among the strongest successful its adjacent group. As Pacific Premier synergies are afloat realized, absorption expects NIM to transcend 4.0% again during 2026.

The acquisition has already expanded Columbia into a $66.8 cardinal plus slope with a beardown Western U.S. footprint, accelerating indebtedness originations, interest income opportunities, and operating leverage portion targeting $127 cardinal of pretax outgo synergies. Tangible publication worth accrued 11% twelvemonth implicit twelvemonth to $19.11 per share, buybacks are expected to stay substantial, and the dividend has resumed maturation aft a five-year pause, signaling assurance successful aboriginal net power.

Beyond integrated growth, COLB offers further upside done imaginable acquisition interest, arsenic its scale, equilibrium expanse quality, and invaluable Southern California deposit franchise marque it an charismatic people for larger banks. A normalized valuation supports a terms people of astir $34 per share, portion a takeover script could connote a worth of $34–39 per share, representing important upside from existent levels.