Columbia Banking Systems (NASDAQ:COLB) offers investors an unusual opportunity of buying an under-the-radar bank about to see a surge in earnings. For the last 2 quarters, the bank has taken a large noninterest charge that has obscured a strong income stream. The earnings from its recently completed transformational acquisition have gotten lost in a one-time only accounting charge. With this charge disappearing in the upcoming quarter, Columbia should generate an earnings bonanza.
Before delving into their books, I'll review Columbia's opportunistic acquisition strategy which lies at the core of this story.
Columbia Banking Systems belongs to a select group of regional banks that have made multiple FDIC-assisted acquisitions. In fact, the bank is among the rarefied few that...
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