COLB Trades at 9.65x and Yields a 5%: Is Hold the Right Call?

Columbia Banking COLB has rallied off its lows, aided by four straight quarterly earnings beats and a sturdier Western footprint after acquiring Pacific Premier in August 2025.  

With estimate momentum steady rather than accelerating, the short-term signal is Zacks Rank #3 (Hold). COLB’s core trends point toward improving margins and capital deployments into 2026. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Where COLB’s Valuation Stands Now

Columbia Banking’s shares trade at 9.65x forward 12-month earnings versus about 10.46x for industry peers, 17.25x for the broader Finance sector and 23.24x for the S&P 500. The five-year median for COLB is 9.24x, framing today’s discount as modest compared with peers but in line with its own history. 

P/E F12M
 

Moreover, COLB’s dividend yield is about 5.0% following a 2.8% increase announced in November 2025 to 37 cents per share. This reinforced total-return appeal at a mid-single-digit multiple. 

Columbia Banking System, Inc. Dividend Yield (TTM)

Columbia Banking System, Inc. dividend-yield-ttm | Columbia Banking System, Inc. Quote

What the Near-Term Setup Implies for COLB

COLB’s near-term setup reflects steady but not accelerating estimate revisions after consistent beat-and-raise execution. Management guides for a 3.90-3.95% net interest margin (NIM) in the first quarter, with net interest income likely to be $600 million. Further, operating expenses (excluding amortization) are expected to be $335-$345 million in the first and second quarters, easing in the third quarter as Pacific Premier synergies fully land. 

Importantly, NIM improved to 4.06% in the fourth quarter of 2025 as deposit costs fell and wholesale funding was reduced. Columbia Banking projects NIM to trend higher in each quarter of 2026, driven by a rebound in customer deposit balances and balance sheet optimization actions. The metric is likely to surpass 4% by mid-year as rates drift lower.

Fee income mix improvements also support COLB. Treasury management and commercial card fees grew in 2025, and new platforms from Pacific Premier (including trust services and homeowners association banking) broaden cross-sell, supporting more durable non-interest income.

Additionally, capital ratios moved higher through 2025, enabling stepped-up buybacks and a higher dividend. As of Dec. 31, 2025, almost $600 million remains available under the repurchase program, with management expecting to buy back $150-$200 million per quarter in 2026. This complements a dividend bump last year.

Risk Checks Before Pressing a Buy for Columbia Banking

Integration and restructuring expenses are elevated in the near term, with expense volatility expected until all synergies are realized. Competitive deposit pricing across COLB’s markets could also cap NIM upside if pricing pressure re-intensifies.

Credit is manageable but not risk-free for Columbia Banking. FinPac small-ticket leasing showed higher loss content in the fourth quarter of 2025, and office loans represent 8% of total loans. These points toward category-specific stress, even as overall non-performers remain contained. 

Peer context underscores the balance of forces. East West Bancorp EWBC also carries a Zacks Rank #3 and trades at a higher forward multiple within the group, while Banner Corporation BANR is likewise Zacks Rank #3 with a value tilt. At present, EWBC trades at a P/E (F1) of 11.12x and BANR has a P/E (F1) of 10.59x. These comparisons suggest COLB’s discount is real but not extreme, given integration noise and competitive dynamics. 

At 9.65x forward earnings and a roughly 5% yield, COLB points toward a balanced near-term risk-reward. Clear execution on margin, synergies and buybacks is expected to support multiple catch-ups, while integration, pricing and credit are the swing factors to watch.

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This article originally published on Zacks Investment Research (zacks.com).

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