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Investing.com - Columbia Banking System (NASDAQ:COLB), a $5.48 billion regional bank with a notable 5.53% dividend yield, has been added to Raymond James’ Analyst Current Favorites (ACF) list following investor meetings with management, the firm announced Monday. According to InvestingPro data, the bank has maintained dividend payments for 29 consecutive years.
Raymond James cited "thawing" investor sentiment on Columbia Banking System following the completion of the PPBI deal as a key factor in its decision to add the stock to its favorites list.
While the firm expects Columbia’s third-quarter 2025 results to be "noisy," it anticipates solid core trends, particularly in core deposit growth driven by organic growth initiatives and seasonal strength.
Raymond James identified a potential upcoming catalyst in a likely share repurchase authorization, which it expects around the first quarter of 2026, combined with increased confidence that mergers and acquisitions activity is on pause.
The firm projects Columbia Banking System will achieve a 1.4% return on average assets and over 18% return on average tangible common equity by the fourth quarter of 2026, which it believes should result in a re-rating of shares closer to peer levels, noting COLB currently trades at approximately 8x 2026 estimated earnings versus a peer median of about 11x.
In other recent news, Columbia Banking System announced a quarterly cash dividend of $0.36 per share, payable on September 15, 2025. This follows the company’s acquisition of Pacific Premier Bancorp, which closed on August 31, 2025. In response to the acquisition, Piper Sandler raised its price target for Columbia Banking System to $35, while maintaining an Overweight rating. Additionally, Raymond James upgraded the stock to Strong Buy, increasing the price target to $31.00 after investor meetings clarified that further mergers and acquisitions are currently on hold.
In executive news, Columbia Bank appointed Ivan Seda as Executive Vice President and Deputy Chief Financial Officer. Seda brings extensive experience from previous roles at Union Bank and MUFG Americas. The bank is also undergoing a brand transition, with Umpqua Bank being renamed to Columbia Bank as of July 1, 2025, and fully adopting the new brand by September 1, 2025. These developments mark significant steps for Columbia Banking System as it continues to evolve.
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