NasdaqGS:COLB

Stock Analysis Report

Columbia Banking System

Executive Summary

Columbia Banking System, Inc. operates as the bank holding company for Columbia State Bank that provides a range of banking services to small and medium-sized businesses, professionals, and individuals in Washington, Oregon, and Idaho.

Rewards

Trading at 13.1% below its fair value

Earnings grew by 34.5% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -1% per year for the next 3 years

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Columbia Banking System's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: COLB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

COLB

-3.0%

US Banks

-1.3%

US Market


1 Year Return

10.4%

COLB

11.8%

US Banks

22.0%

US Market

Return vs Industry: COLB underperformed the US Banks industry which returned 21.7% over the past year.

Return vs Market: COLB underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

COLBIndustryMarket
7 Day0.5%-3.0%-1.3%
30 Day-2.4%-4.7%1.8%
90 Day3.8%2.7%9.3%
1 Year14.6%10.4%15.0%11.8%24.6%22.0%
3 Year7.1%-1.9%26.9%17.9%49.2%39.6%
5 Year89.2%57.7%86.3%65.4%77.9%58.3%

Price Volatility Vs. Market

How volatile is Columbia Banking System's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Columbia Banking System undervalued compared to its fair value and its price relative to the market?

8.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: COLB ($39.65) is trading below our estimate of fair value ($45.6)

Significantly Below Fair Value: COLB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: COLB is poor value based on its PE Ratio (15x) compared to the Banks industry average (12.8x).

PE vs Market: COLB is good value based on its PE Ratio (15x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: COLB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: COLB is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Columbia Banking System forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COLB's earnings are forecast to decline over the next 3 years (-1% per year).

Earnings vs Market: COLB's earnings are forecast to decline over the next 3 years (-1% per year).

High Growth Earnings: COLB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: COLB's revenue (2.1% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: COLB's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: COLB's Return on Equity is forecast to be low in 3 years time (8.2%).


Next Steps

  • Explore growth companies in the Banks industry.

Past Performance

How has Columbia Banking System performed over the past 5 years?

17.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COLB has high quality earnings.

Growing Profit Margin: COLB's current net profit margins (32.9%) are higher than last year (26.7%).


Past Earnings Growth Analysis

Earnings Trend: COLB's earnings have grown by 17.9% per year over the past 5 years.

Accelerating Growth: COLB's earnings growth over the past year (34.5%) exceeds its 5-year average (17.9% per year).

Earnings vs Industry: COLB earnings growth over the past year (34.5%) exceeded the Banks industry 27.1%.


Return on Equity

High ROE: COLB's Return on Equity (8.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Columbia Banking System's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: COLB has a low level of unsold assets or inventory.

Debt Coverage by Assets: COLB's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

Asset Level: COLB's level of assets compared to its equity is low.

Allowance for Bad Loans: COLB has a sufficient allowance for bad loans.

Low Risk Liabilities: COLB's liabilities are made up of primarily low risk sources of funding.

Loan Level: COLB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: COLB's loans are broadly funded by customer deposits.

Level of Bad Loans: COLB has an appropriate level of bad loans (0.42%)


Next Steps

Dividend

What is Columbia Banking System's current dividend yield, its reliability and sustainability?

3.49%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years3.1%

Current dividend yield vs market & industry

Notable Dividend: COLB's dividend (3.53%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: COLB's dividend (3.53%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: COLB's dividend payments have been volatile in the past 10 years.

Growing Dividend: COLB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.6%), COLB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: COLB's dividends in 3 years are forecast to be well covered by earnings (47.6% payout ratio).


Next Steps

Management

What is the CEO of Columbia Banking System's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Clint Stein (47yo)

0yrs

Tenure

US$1,087,801

Compensation

Mr. Clint E. Stein serves as the President & Chief Executive Officer for Columbia Bank since his appointment in January 2020. Mr. Stein is the President, Chief Executive Officer and Director at Columbia Ba ...


CEO Compensation Analysis

Compensation vs Market: Clint's total compensation ($USD1.09M) is below average for companies of similar size in the US market ($USD4.99M).

Compensation vs Earnings: Clint's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.8yrs

Average Tenure

51yo

Average Age

Experienced Management: COLB's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

5.3yrs

Average Tenure

60.5yo

Average Age

Experienced Board: COLB's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: COLB insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUS$2,23106 Jan 20
Clint Stein
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares68
Max PriceUS$32.81
BuyUS$3,01906 Jan 20
David Lawson
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief Human Resources Officer
Shares92
Max PriceUS$32.81
BuyUS$4,49506 Jan 20
Kumi Baruffi
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares137
Max PriceUS$32.81
SellUS$46,50231 Oct 19
David Lawson
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief Human Resources Officer
Shares1,164
Max PriceUS$39.95
BuyUS$4,65603 Jul 19
Clint Stein
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares143
Max PriceUS$32.56
BuyUS$8,43303 Jul 19
Kumi Baruffi
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares259
Max PriceUS$32.56
BuyUS$5,63303 Jul 19
David Lawson
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief Human Resources Officer
Shares173
Max PriceUS$32.56
SellUS$122,04412 Jun 19
Andrew McDonald
EntityIndividual
Shares3,481
Max PriceUS$35.06
SellUS$25,17626 Feb 19
Clint Stein
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares657
Max PriceUS$38.32

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Lisa Dow (59yo)

    Executive VP & Chief Risk Officer

    • Clint Stein (47yo)

      CEO, President & Director

      • Compensation: US$1.09m
    • Dave Lawson (60yo)

      Executive VP & Chief Human Resources Officer

      • Tenure: 6.5yrs
      • Compensation: US$775.89k
    • David Devine

      Executive VP and Chief Marketing & Experience Officer

      • Kumi Baruffi (48yo)

        Executive VP

        • Tenure: 5.3yrs
        • Compensation: US$760.06k
      • Brock Lakely

        Senior VP & Chief Accounting Officer

        • Tenure: 1.6yrs
      • Greg Sigrist (51yo)

        Executive VP & CFO

        • Tenure: 1.6yrs
        • Compensation: US$713.01k
      • Eric Eid

        Executive VP & Chief Digital and Technology Officer

        • Tenure: 1.8yrs
      • Chris Merrywell

        COO & Executive VP

        • Amy L. Betts

          Head of Investor Relations


          Board Members

          • Thomas Hulbert (72yo)

            Independent Director

            • Tenure: 21yrs
            • Compensation: US$151.97k
          • Ford Elsaesser (67yo)

            Independent Director

            • Tenure: 5.3yrs
            • Compensation: US$141.97k
          • Craig Eerkes (67yo)

            Chairman of the Board

            • Tenure: 1.7yrs
            • Compensation: US$169.22k
          • Clint Stein (47yo)

            CEO, President & Director

            • Compensation: US$1.09m
          • Michelle Lantow (57yo)

            Independent Director

            • Tenure: 7.9yrs
            • Compensation: US$154.13k
          • Mae Numata (63yo)

            Independent Director

            • Tenure: 7.9yrs
            • Compensation: US$141.83k
          • Betsy Seaton (58yo)

            Independent Director

            • Tenure: 5.7yrs
            • Compensation: US$139.22k
          • Mark Finkelstein (60yo)

            Independent Director

            • Tenure: 5.3yrs
            • Compensation: US$136.97k
          • Eric Forrest (52yo)

            Independent Director

            • Tenure: 2.3yrs
            • Compensation: US$136.32k
          • Randy Lund (61yo)

            Independent Director

            • Tenure: 2.5yrs
            • Compensation: US$138.97k

          Company Information

          Columbia Banking System, Inc.'s company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Columbia Banking System, Inc.
          • Ticker: COLB
          • Exchange: NasdaqGS
          • Founded: 1993
          • Industry: Regional Banks
          • Sector: Banks
          • Market Cap: US$2.885b
          • Shares outstanding: 72.14m
          • Website: https://www.columbiabank.com

          Number of Employees


          Location

          • Columbia Banking System, Inc.
          • 1301 A Street
          • Tacoma
          • Washington
          • 98402
          • United States

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          COLBNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1992

          Biography

          Columbia Banking System, Inc. operates as the bank holding company for Columbia State Bank that provides a range of banking services to small and medium-sized businesses, professionals, and individuals in Washington, Oregon, and Idaho. It offers personal banking products and services, including noninterest and interest-bearing checking, saving, money market, and certificate of deposit accounts; home mortgages for purchases and refinances, home equity loans and lines of credit, and personal loans; debit and credit cards; and digital banking services. The company also provides business banking products and services, such as checking, savings, interest-bearing money market, and certificate of deposit accounts; agricultural loans, asset-based loans, builder and other commercial real estate loans, and loans guaranteed by the small business administration; debit and credit cards; and professional banking, treasury management, merchant card, and international banking services. In addition, it offers wealth management services in the areas of private banking, financial services, and trust and investment services to individuals, families, and professional businesses. Further, the company provides fiduciary, agency, trust, and related services, as well as life insurance products. As of December 31, 2018, the company had 150 branches. Columbia Banking System, Inc. was founded in 1993 and is headquartered in Tacoma, Washington. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/24 23:45
          End of Day Share Price2020/01/24 00:00
          Earnings2019/09/30
          Annual Earnings2018/12/31


          Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.