Inside a $147 Million Columbia Banking Position Built During a Soft Year for the Stock

On November 13, Florida-based HoldCo Asset Management disclosed the purchase of 1.24 million shares of Columbia Banking System (NASDAQ:COLB), 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 (NASDAQ:COLB) 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

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.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.