COLB Stock Forecast & Price Target

Columbia Banking System is supported by improving deposit trends, a stronger margin outlook, and management’s clear emphasis on profitability over risky growth, with NIM expected to reach 4.00%+ in 3Q26 and core fee income running in the mid-$80 million range. Its franchise appears increasingly attractive after merger integration has moved further behind the company, while disciplined capital deployment through steady buybacks and limited, smaller-scale M&A should support earnings quality and shareholder returns. Despite softer near-term loan growth, the analyst’s 2027 EPS estimate rises to $3.30 and the company is seen exiting 2027 with above-peer ROA and ROTCE of 1.4% and 16%, respectively, reinforcing the positive outlook.

Columbia Banking System is facing a fundamentally challenged setup because loan growth remains hard to sustain, with $531 million of end-of-period HFI loan balances down 4.5% sequentially and management signaling that net loan growth may stay challenged over the next 12. Deposit trends are also softer than desired, as balances fell $1.4 billion on CD runoff and declines in NIBs and MMA, even though recent campaigns added over 21K accounts and about $700 million of deposits. While funding discipline and lower wholesale borrowings support net interest margin, the outlook is weighed down by pricing pressure in core CRE, the threat of large-scale M&A, and downside risk from worsening Pacific Northwest credit conditions.