Is Columbia Banking Stock a Buy for 2026 on Rising Revenues?
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December 17, 2025 — 08:16 am EST Written by Swayta Shah for Zacks-> Columbia Banking COLB intends to reaccelerate revenues, while reshaping its balance sheet after closing the Pacific Premier acquisition. Margin actions and fee income platforms are building durable top-line drivers into 2026.In the third quarter of 2025, Columbia Banking’s total revenue rose 17% year over year to $582 million, with both net interest income (NII) and non-interest income each up 17%. The quarter captured early Pacific Premier integration benefits. Additionally, net interest margin (NIM) expanded, aided by growth in customer deposits and reduced use of higher-cost brokered deposits and term debt. Management expects NIM of about 3.90% in the fourth quarter of 2025, supported by roughly $12 million of deposit premium amortization, and a similar margin in the first quarter of 2026, even as average earning assets edge lower. Excluding the one-time item, NII is expected to be relatively stable in early 2026. Further, year-to-date in 2025, treasury management and commercial card fees grew versus the prior year, while financial services and trust and international banking revenues expanded notably. These categories now represent a sizable slice of COLB’s non-interest income. Pacific Premier adds incremental fee income engines, including Custodial Trust Services, homeowners association banking, escrow and 1031 exchanges. Since closing, Columbia Banking has generated more than 1,200 cross-sell referrals, and campaigns have driven meaningful deposit inflows. Together, these platforms are expected to deepen relationships and gradually tilt the revenue mix toward more durable fees. Hence, the Zacks Consensus Estimate for sales points to a meaningful step-up from $2.28 billion in 2025 to $2.76 billion in 2026, laying out a clear path for top-line expansion. That runway is grounded in the Pacific Premier integration and a deliberate shift toward relationship-driven commercial and industrial and owner-occupied commercial real estate linked to deposits and fees. Production and pipelines improved in the third quarter of 2025, positioning the mix for better economics as cost synergies build through 2026. Image Source: Zacks Investment ResearchPacific Premier integration costs likely to pressure COLB’s near-term results, with operating expenses expected at $330-$340 million per quarter for several quarters as synergies ramp and systems conversion completes in early 2026. Moreover, credit costs are expected to remain uneven as small-ticket leasing (FinPac) witnesses higher loss content and office loans account for 8% of total loans. Nonetheless, reserves and the remaining credit discount will likely provide Columbia Banking with added absorption during the integration.
The Zacks Consensus Estimate for COLB’s 2025 and 2026 earnings is pegged at $2.91 and $3.07, respectively. This reflects a year-over-year growth of 7.4% for 2025 and 5.6% for 2026.
Columbia Banking System, Inc. price-consensus-chart | Columbia Banking System, Inc. QuoteCOLB carries a Zacks Rank #3 (Hold) at present. This argues for patience on timing while the revenue and margin drivers build through 2026. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Overall, a defended NIM and expanding fee income platforms support COLB’s multi-year sales trajectory. Near-term integration expenses and episodic credit costs are the main speed bumps for investors watching the path into 2026.Two close peers of Columbia Banking are East West Bancorp EWBC and Western Alliance Bancorporation WAL.
The Zacks Consensus Estimate for EWBC’s sales suggests 11.7% and 4.5% growth for 2025 and 2026, respectively on a year-over-year basis.
East West Bancorp carries a Zacks Rank #2 (Buy).The consensus estimate for WAL’s sales reflects year-over-year increases of 9.3% and 9.2% for 2025 and 2026, respectively. Currently, Western Alliance carries a Zacks Rank #3. From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportWestern Alliance Bancorporation (WAL) : Free Stock Analysis ReportColumbia Banking System, Inc. (COLB) : Free Stock Analysis ReportEast West Bancorp, Inc. (EWBC) : Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchThe views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.This data feed is not available at this time.