Columbia Banking System Inc: Panning for Returns Out West; Initiate at Buy

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Columbia Banking System Inc: Panning for Returns Out West; Initiate at Buy

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Columbia Banking System Inc

Panning for Returns Out West; Initiate at

Buy

Initiating Coverage: BUY | PO: 38.00 USD | Price: 31.98 USD

A better bank than the depressed multiple implies 13 July 2026

We initiate coverage of Columbia Banking System (COLB) with a Buy rating and a $38 Equity

PO, implying ~23% total return. COLB has assembled a ~$66bn asset Western US

commercial bank with a structurally attractive deposit base, a larger California presence, Brandon Berman

Research Analyst

and improving profitability following the UMPQ/PPBI mergers. In our view, the current BofAS

4% discount to peers on a P/TBV basis gives too little credit to COLB’s top-quartile +1 646 855 3933 brandon.berman@bofa.com

deposit franchise and return potential, and the improving capital return story.

Deposits first, everything else follows

COLB’s deposit franchise screens among the highest quality in our mid-cap bank Stock Datacoverage. We compared COLB’s deposit portfolio to that of our mid-cap bank coverage

across 11 metrics. The bank’s above-average NIB mix (which has exhibited more stability Price 31.98 USD

relative to peers over the last 5 years), small-business orientation, low average account Price Objective 38.00 USD

size, and below-peer deposit costs should provide better NIM defensibility than the Date Established 13-Jul-2026

market gives it credit for. The PPBI acquisition expanded COLB’s access to SoCal and Investment Opinion B-1-7

added specialty deposit verticals (HOA banking, escrow/1031 exchange services, and 52-Week Range 22.77 USD -32.77 USD

custodial trust). We believe this combination gives COLB a more durable funding profile. Mrkt Val / Shares Out (mn) 9,259 USD / 289.5