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Is Columbia Banking Attractive Now With Dividend Yield and Buybacks?
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Key Takeaways
Columbia Banking raised its dividend 2.8% to 37 cents per share in November 2025, offering a 5% yield.
COLB authorized $700M in buybacks, with plans to repurchase $150M-$200M quarterly in 2026.
Columbia Banking trades at 9.35X forward P/E, below industry, amid expense and credit pressures.
Columbia Banking System (COLB - Free Report) has leaned into shareholder returns while it works through the Pacific Premier integration. The story for income investors is a mix of a higher dividend, a sizable repurchase authorization, and capital ratios that sit above management’s long-term targets.
At the same time, near-term expense pressure and uneven credit costs remain part of the setup. That puts more weight on payout durability, buyback pacing, and what valuation is really offering today.
COLB’s Dividend Level and the Recent Increase
In November 2025, Columbia Banking increased its quarterly dividend 2.8% to 37 cents per share, signaling confidence in capital generation even with integration work still underway.
In the past five years, COLB has increased its dividends three time. It has five year annualized dividend growth rate of 6.51% with a payout ratio of 48%. Currently, COLB carries a dividend yield of 5%, well above several industry peers. For context, East West Bancorp (EWBC - Free Report) and WaFd, Inc. (WAFD - Free Report) both carry meaningfully lower dividend yields in that same comparison set. East West Bancorp has dividend yield of 2.7% while WaFd has a dividend yield of 3.1%.
Columbia Banking System, Inc. Dividend Yield (TTM)
Columbia Banking’s Capital Ratios and Repurchase Plan
COLB capital levels improved meaningfully over the past year. As of Dec. 31, 2025, the common equity Tier 1 (CET1) risk-based capital ratio rose to 11.8%, while the total risk-based capital ratio increased to 13.6%.
Columbia Banking’s board authorized up to $700 million in share repurchases through Nov. 30, 2026. That is a large pool of potential demand for the stock, and it pairs naturally with the dividend for total shareholder yield.
Activity already showed up in fourth-quarter 2025. The company repurchased 3.7 million common shares at an average price of $27.07. Management expects to raise the pace in 2026 to $150-$200 million per quarter, with $600 million remaining under the current authorization.
Columbia Banking’s Earnings Power Behind Payout Support
Capital returns ultimately depend on operating performance, and fourth-quarter 2025 results provided support. Operating earnings were 82 per share, topping the Zacks Consensus Estimate.
Revenue drivers were constructive. Net interest income rose 43% year over year to $627 million, while non-interest income increased to $90 million, helped by stronger service charges and higher financial services and trust revenue. Net interest margin expanded to 4.06% as funding costs declined.
Looking forward, management’s posture is explicitly defensive on margin as rates drift down. The bank expects deposit betas for cuts around half and anticipates net interest margin to trend higher through 2026, with the margin ultimately surpassing 4% again in the second or third quarter of 2026. That earnings stability is a key pillar behind the dividend and the planned buyback ramp.
Columbia Banking’s Valuation & Price Performance Analysis
On forward earnings, Columbia Banking trades at 9.35X forward 12-month price-to-earnings (P/E). That is below the industry at 10.47X. Its peers, East West Bancorp and WaFd trades at P/E multiple of 11.28X and 11.27X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Over the past year, shares of Columbia Banking have gained 34.3%, outperforming the industry’s rally of 31.3%.
Price Performance
Image Source: Zacks Investment Research
Decision Framework for COLB Income Investors
A practical way to frame COLB is as a dividend-and-capital-return story with execution risk. Start with the yield and payout cadence: the quarterly dividend is 37 cents per share, and the company has shown willingness to raise it while continuing regular declarations.
Next, weigh buyback capacity against the timeline for expense normalization. The repurchase authorization runs through Nov. 30, 2026, with $600 million still available and an intended step-up in 2026 pacing. The offset is that operating expenses are expected to remain elevated near term, with a more normalized run rate targeted by the third quarter of 2026.
Finally, match the setup to your style. COLB has a Zacks Rank #3 (Hold) and Style Scores of Value B, Growth D, and Momentum C. A dividend-oriented investor may appreciate the Value tilt and capital return levers, while also monitoring credit trends and competitive deposit pressures. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Is Columbia Banking Attractive Now With Dividend Yield and Buybacks?
Key Takeaways
Columbia Banking System (COLB - Free Report) has leaned into shareholder returns while it works through the Pacific Premier integration. The story for income investors is a mix of a higher dividend, a sizable repurchase authorization, and capital ratios that sit above management’s long-term targets.
At the same time, near-term expense pressure and uneven credit costs remain part of the setup. That puts more weight on payout durability, buyback pacing, and what valuation is really offering today.
COLB’s Dividend Level and the Recent Increase
In November 2025, Columbia Banking increased its quarterly dividend 2.8% to 37 cents per share, signaling confidence in capital generation even with integration work still underway.
In the past five years, COLB has increased its dividends three time. It has five year annualized dividend growth rate of 6.51% with a payout ratio of 48%. Currently, COLB carries a dividend yield of 5%, well above several industry peers. For context, East West Bancorp (EWBC - Free Report) and WaFd, Inc. (WAFD - Free Report) both carry meaningfully lower dividend yields in that same comparison set. East West Bancorp has dividend yield of 2.7% while WaFd has a dividend yield of 3.1%.
Columbia Banking System, Inc. Dividend Yield (TTM)
Columbia Banking System, Inc. dividend-yield-ttm | Columbia Banking System, Inc. Quote
Columbia Banking’s Capital Ratios and Repurchase Plan
COLB capital levels improved meaningfully over the past year. As of Dec. 31, 2025, the common equity Tier 1 (CET1) risk-based capital ratio rose to 11.8%, while the total risk-based capital ratio increased to 13.6%.
Columbia Banking’s board authorized up to $700 million in share repurchases through Nov. 30, 2026. That is a large pool of potential demand for the stock, and it pairs naturally with the dividend for total shareholder yield.
Activity already showed up in fourth-quarter 2025. The company repurchased 3.7 million common shares at an average price of $27.07. Management expects to raise the pace in 2026 to $150-$200 million per quarter, with $600 million remaining under the current authorization.
Columbia Banking’s Earnings Power Behind Payout Support
Capital returns ultimately depend on operating performance, and fourth-quarter 2025 results provided support. Operating earnings were 82 per share, topping the Zacks Consensus Estimate.
Revenue drivers were constructive. Net interest income rose 43% year over year to $627 million, while non-interest income increased to $90 million, helped by stronger service charges and higher financial services and trust revenue. Net interest margin expanded to 4.06% as funding costs declined.
Looking forward, management’s posture is explicitly defensive on margin as rates drift down. The bank expects deposit betas for cuts around half and anticipates net interest margin to trend higher through 2026, with the margin ultimately surpassing 4% again in the second or third quarter of 2026. That earnings stability is a key pillar behind the dividend and the planned buyback ramp.
Columbia Banking’s Valuation & Price Performance Analysis
On forward earnings, Columbia Banking trades at 9.35X forward 12-month price-to-earnings (P/E). That is below the industry at 10.47X. Its peers, East West Bancorp and WaFd trades at P/E multiple of 11.28X and 11.27X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Over the past year, shares of Columbia Banking have gained 34.3%, outperforming the industry’s rally of 31.3%.
Price Performance
Image Source: Zacks Investment Research
Decision Framework for COLB Income Investors
A practical way to frame COLB is as a dividend-and-capital-return story with execution risk. Start with the yield and payout cadence: the quarterly dividend is 37 cents per share, and the company has shown willingness to raise it while continuing regular declarations.
Next, weigh buyback capacity against the timeline for expense normalization. The repurchase authorization runs through Nov. 30, 2026, with $600 million still available and an intended step-up in 2026 pacing. The offset is that operating expenses are expected to remain elevated near term, with a more normalized run rate targeted by the third quarter of 2026.
Finally, match the setup to your style. COLB has a Zacks Rank #3 (Hold) and Style Scores of Value B, Growth D, and Momentum C. A dividend-oriented investor may appreciate the Value tilt and capital return levers, while also monitoring credit trends and competitive deposit pressures. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.