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COLB's $1.2B Buyback Plan Highlights Strong Capital Returns After Q3

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Key Takeaways

  • COLB approved a $1.2B share repurchase program after completing its previous authorization.
  • The company repurchased 23.3M shares and returned more than $1B to shareholders over the past year.
  • COLB's CET1 ratio reached 11.5%, while deposits rose to $52.7B in Q3'26, supporting capital returns.

Columbia Banking System, Inc. (COLB - Free Report) is reinforcing its shareholder-return strategy following a solid third-quarter 2026 performance. In October, the company's board of directors authorized a share repurchase program of up to $1.2 billion, reflecting management's confidence in its long-term strategy and ability to generate excess capital.

The announcement follows the completion of Columbia Banking's previous repurchase authorization. Between November 2025 and Sept. 30, 2026, the company repurchased 23.3 million common shares at an average price of $29.88, representing 7.8% of its outstanding shares as of Sept. 30, 2025. Including dividends, Columbia Banking returned more than $1 billion to shareholders over the past year.

COLB also pays out regular dividends. 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 twice. It has a five-year annualized dividend growth rate of 5.27% and a dividend yield of 4.8%.

The company's capital position also remains supportive. As of Sept. 30, 2026, its common equity Tier 1 (CET1) capital ratio was 11.5%, while its total risk-based capital ratio stood at 13.8%. Both ratios remained above regulatory well-capitalized minimums and the company's long-term targets. Meanwhile, deposits increased to $52.7 billion from $52.1 billion in the preceding quarter, supporting funding stability.

Overall, the new $1.2-billion authorization underscores COLB’s commitment to disciplined capital allocation and shareholder returns. However, its ability to sustain buybacks will depend on earnings generation, capital adequacy and evolving market conditions.

Other Banks Capital Distribution Activities

Citigroup (C - Free Report) repurchased approximately $3 billion in shares in the third quarter of 2026. As of Sept. 30, 2026, $23 billion worth of shares remained available under the share repurchase program. In the third quarter 2026, Citigroup returned $4.1 billion to shareholders, including dividends, reflecting its continued focus on capital distributions alongside investments in business growth and improving profitability.

Bank of America (BAC - Free Report) repurchased $6 billion worth of shares in third-quarter 2026, reflecting its commitment to shareholder returns. As of Sept. 30, 2026, almost $11 billion remained under its $40-billion share repurchase authorization. Including $2.2 billion in dividends, Bank of America returned $8.3 billion to shareholders in the third quarter 2026. The buybacks highlight management’s confidence in its capital position, supported by a solid CET1 ratio of 10.9%.

COLB Price Performance & Zacks Rank

Columbia Banking’s shares have jumped 9.5% year to date compared with the industry’s growth of 6.1%.

Price Performance

Zacks Investment Research
Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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