On November 13, Florida-based HoldCo Asset Management disclosed the purchase of 1.24 million shares of Columbia Banking System (COLB 1.34%), with a transaction value of $31.48 million.
What Happened
According to a filing with the U.S. Securities and Exchange Commission dated November 13, HoldCo Asset Management increased its position in Columbia Banking System (COLB 1.34%) by 1.24 million shares during the third quarter. The new stake amounts to 5.72 million shares valued at $147.30 million as of September 30.
What Else to Know
Columbia Banking System now accounts for 15.55% of its $947.56 million 13F AUM.
Top holdings after the filing:
- NYSE: CMA: $156.94 million (16.56% of AUM)
- NASDAQ: COLB: $147.30 million (15.55% of AUM)
- NASDAQ: FIBK: $125.89 million (13.29% of AUM)
- NASDAQ: EBC: $116.32 million (12.28% of AUM)
- NYSE: CFG: $110.91 million (11.70% of AUM)
As of Thursday, shares were priced at $27.95, up 3.5% over the past year and well underperforming the S&P 500, which is up about 16% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $2.07 billion |
| Net Income (TTM) | $478.68 million |
| Dividend Yield | 5% |
| Price (as of Thursday) | $27.95 |
Company Snapshot
- Columbia Banking System offers a comprehensive suite of personal and business banking products, including checking and savings accounts, mortgages, commercial real estate loans, and wealth management services.
- The bank serves small and medium-sized businesses, professionals, and individual consumers across a network of hundreds of branches in Washington, Oregon, Idaho, and California.
- It is headquartered in Tacoma, Washington, with a strong regional presence in the Pacific Northwest and California.
Columbia Banking System, Inc. is a regional financial institution with a strong presence in the Pacific Northwest and California, operating hundreds of branches. The company leverages a diversified banking model focused on both lending and non-interest income streams, supporting sustainable growth and shareholder returns. Its competitive advantage lies in its comprehensive product suite and established regional footprint, positioning it as a key provider for business and consumer banking needs.
Foolish Take
Columbia Banking System just closed a transformative acquisition, expanded total assets to roughly $67.5 billion, and exited the quarter with a net interest margin of 3.84%, up from 3.56% a year earlier. That margin expansion came as the bank leaned into core deposit growth, which rose by about $14 billion quarter over quarter to $55.8 billion, largely driven by the Pacific Premier deal.
Reported earnings, meanwhile, were messy. GAAP EPS fell to $0.40 from $0.73 in the prior quarter, weighed down by merger and restructuring costs and a $70 million day-one credit provision tied to the acquisition. Without those, operating EPS was $0.85, with operating return on tangible common equity north of 18%. That distinction matters for investors focused on normalized earnings power and not integration noise.
Finally, management authorized a $700 million share repurchase program through late 2026, signaling confidence in excess capital generation even after absorbing a major deal. Within this portfolio, the position now sits just behind other regional bank holdings, reinforcing a consistent bet on scale, margin recovery, and capital return rather than short-term multiple expansion.
Glossary
Asset Management: Professional management of investments on behalf of clients or funds.
AUM (Assets Under Management): The total market value of investments managed by a fund or firm.
13F: A quarterly SEC filing by institutional investment managers disclosing their U.S. equity holdings.
Dividend Yield: Annual dividends per share divided by the share price, expressed as a percentage.
Forward P/E: Price-to-earnings ratio using forecasted earnings for the next year.
CAGR (Compound Annual Growth Rate): The annualized rate of return for an investment over a specified period.
Non-interest Income: Revenue earned by banks from sources other than interest, such as fees and service charges.
Reportable U.S. Equity Assets: U.S. stock holdings that must be disclosed in regulatory filings.
Regional Financial Institution: A bank or lender serving a specific geographic area rather than operating nationwide.
Comprehensive Product Suite: A wide range of financial products and services offered by a company.
Branch Network: The group of physical bank locations operated by a financial institution.
TTM: The 12-month period ending with the most recent quarterly report.
