Columbia Banking: A 6% Yield Opportunity With Regional Brand Strength In Pacific Northwest (Downgrade)

Albert Anthony
1.37K Followers
(16min)

Summary

  • Columbia Banking System, parent of Umpqua Bank, has brand penetration in its key market of the US Pacific Northwest.
  • 6% dividend yield exceeds peers, but prior dividend growth mixed.
  • Q2 saw YoY earnings decline, but future growth expected to come from growth in loans and small business customers.
  • The loan portfolio diverse and low charge-off rate.
  • The firm makes over 90% of revenue from interest income, making it more exposed to rate movements and Fed decisions.

Umpqua Bank

Tomsmith585

A Regional Bank in Pacific Northwest Up 18% in Last Year

To diversify away from my recent large-cap financial and insurance stock coverage, in today's research article I'm trekking to the Pacific Northwest to literally "explore" a major regional bank in

This article was written by

1.37K Followers
Albert Anthony is The Analyst, providing markets commentary and rating stocks using his proven 6-step methodology, having grown over +1 thousand followers on the global investor platform Seeking Alpha since 2023, writing for financial media as a senior analyst for his own equities research firm, Albert Anthony & Co, including for platforms like Investing.com. The Croatian-American author writing under pen name Albert Anthony also is launching a new book called The Analyst: 6 Steps To Picking Stocks For Future Growth (2025 edition), and it will talk about his 6-step system to analyzing stocks, with a goal of reaching +1 million readers globally on the Amazon platform. You can watch him on his YouTube channel as well where he hosts The Analyst, talking about some of the same topics he writes about. The author has been an IT analyst for many years in the technical support segment, before pivoting into the financial sector and renewing his interest in home-based stock trading during the remote-work era of 2020. He has earned degrees and certificates from Drew University, Corporate Finance Institute, and others, and has called home both the New York City area where he grew up as well as the tech hub of Austin Texas, along with the emerging growth market of coastal Croatia where he has participated in dozens of business & innovation conferences in recent years. The Albert Anthony brand is a concept of Albert Anthony & Company, a privately-held enterprise registered as a trade name in Austin, Texas, US*Disclaimer: Albert Anthony and Albert Anthony & Co, as an enterprise are not a registered financial advisor and do not provide personalized financial advisory to clients but general markets commentary based on publicly-available data and own analysis, and do not sell or market financial products and services, nor are compensated by any company for rating them. The author does not hold any material position in any stock he rates at the time of writing, unless otherwise disclosed. All investment is assumed to be at risk and readers are expected to do their due diligence beyond the scope of this author's commentary, indemnifying the author of any liability for potential investment losses.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of FMNB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Author holds exactly 1 share of regional bank FMNB mentioned in article as a peer comparison.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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