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Is Columbia Banking Stock a Buy for 2026 on Rising Revenues?

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Key Takeaways

  • COLB's Q3 revenue rose 17%, boosted by NII, fee income, and early Pacific Premier integration benefits.
  • Pacific Premier adds fee engines like trust services and escrow, lifting durable non-interest income.
  • Operating expenses and uneven credit costs may weigh as COLB completes integration through early 2026.

Columbia Banking (COLB - Free Report) intends to reaccelerate revenues, while reshaping its balance sheet after closing the Pacific Premier acquisition. Margin actions and fee income platforms are building durable top-line drivers into 2026.

Where Does COLB’s Revenues Stand Now?

In the third quarter of 2025, Columbia Banking’s total revenue rose 17% year over year to $582 million, with both net interest income (NII) and non-interest income each up 17%. The quarter captured early Pacific Premier integration benefits. Additionally, net interest margin (NIM) expanded, aided by growth in customer deposits and reduced use of higher-cost brokered deposits and term debt. 

Management expects NIM of about 3.90% in the fourth quarter of 2025, supported by roughly $12 million of deposit premium amortization, and a similar margin in the first quarter of 2026, even as average earning assets edge lower. Excluding the one-time item, NII is expected to be relatively stable in early 2026. 

Further, year-to-date in 2025, treasury management and commercial card fees grew versus the prior year, while financial services and trust and international banking revenues expanded notably. These categories now represent a sizable slice of COLB’s non-interest income. 

Pacific Premier adds incremental fee income engines, including Custodial Trust Services, homeowners association banking, escrow and 1031 exchanges. Since closing, Columbia Banking has generated more than 1,200 cross-sell referrals, and campaigns have driven meaningful deposit inflows. Together, these platforms are expected to deepen relationships and gradually tilt the revenue mix toward more durable fees. 

Hence, the Zacks Consensus Estimate for sales points to a meaningful step-up from $2.28 billion in 2025 to $2.76 billion in 2026, laying out a clear path for top-line expansion. That runway is grounded in the Pacific Premier integration and a deliberate shift toward relationship-driven commercial and industrial and owner-occupied commercial real estate linked to deposits and fees. Production and pipelines improved in the third quarter of 2025, positioning the mix for better economics as cost synergies build through 2026. 

 

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Risks to Columbia Banking’s Earnings Prospects

Pacific Premier integration costs likely to pressure COLB’s near-term results, with operating expenses expected at $330-$340 million per quarter for several quarters as synergies ramp and systems conversion completes in early 2026. 

Moreover, credit costs are expected to remain uneven as small-ticket leasing (FinPac) witnesses higher loss content and office loans account for 8% of total loans. Nonetheless, reserves and the remaining credit discount will likely provide Columbia Banking with added absorption during the integration.  

The Zacks Consensus Estimate for COLB’s 2025 and 2026 earnings is pegged at $2.91 and $3.07, respectively. This reflects a year-over-year growth of 7.4% for 2025 and 5.6% for 2026.

 

Columbia Banking’s Zacks Rank

COLB carries a Zacks Rank #3 (Hold) at present. This argues for patience on timing while the revenue and margin drivers build through 2026. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Overall, a defended NIM and expanding fee income platforms support COLB’s multi-year sales trajectory. Near-term integration expenses and episodic credit costs are the main speed bumps for investors watching the path into 2026.

How Are COLB’s Peers Staked Up in Terms of Revenues?

Two close peers of Columbia Banking are East West Bancorp (EWBC - Free Report) and Western Alliance Bancorporation (WAL - Free Report) . 

The Zacks Consensus Estimate for EWBC’s sales suggests 11.7% and 4.5% growth for 2025 and 2026, respectively on a year-over-year basis. East West Bancorp carries a Zacks Rank #2 (Buy).

The consensus estimate for WAL’s sales reflects year-over-year increases of 9.3% and 9.2% for 2025 and 2026, respectively. Currently, Western Alliance carries a Zacks Rank #3.


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