TACOMA, Wash. – Columbia Banking System, Inc. (NASDAQ:COLB), the holding company of Umpqua Bank, has declared a quarterly cash dividend of $0.36 per common share. The dividend is payable on December 16, 2024, to shareholders of record as of November 29, 2024.
The announcement marks a continuation of the company's practice of returning value to its shareholders through regular dividends. Columbia, with over $50 billion in assets, operates Umpqua Bank, a prominent regional bank in the western United States. Umpqua Bank has a presence across several states including Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah, and Washington, offering a range of banking services to both consumer and business clients.
Columbia Banking System is known for combining the capabilities of a national bank with a focus on personalized service. In addition to retail and commercial banking, the institution provides Small Business Administration lending, corporate banking, and equipment leasing. Wealth management, healthcare, and private banking services are also available through Columbia Wealth Advisors and Columbia Trust Company, divisions of Umpqua Bank.
The forward-looking statements included in the company's announcement indicate plans for future activities and are subject to change. These statements are based on management's expectations and are not guarantees of future performance. Shareholders and investors are advised to consult Columbia's SEC filings, including its most recent Form 10-K, for a detailed discussion of potential risks and uncertainties that could affect the company's actual results.
This dividend declaration is based on a press release statement from Columbia Banking System, Inc. and reflects the company's continued commitment to its shareholders.
In other recent news, Columbia Banking System reported third-quarter earnings for 2024, highlighting core deposit growth, cost reductions, and expansion into new markets. The earnings per share (EPS) stood at $0.70, with operating EPS at $0.69. The company's customer deposits increased by $602 million, while loan balances saw a decrease of $200 million, primarily due to a strategic shift away from transactional real estate loans.
In addition to financial results, Columbia Banking System has made significant strides in its expansion efforts, extending its footprint in Arizona, Colorado, Utah, and considering further growth opportunities in Southern California. The company's management has expressed commitment to optimizing financial performance and potentially returning capital to shareholders in 2025.
These recent developments also include a focus on merger and acquisition opportunities, particularly after upcoming elections and Federal Reserve rate decisions. Despite a reduction in loans, Columbia Banking System has experienced surpassing initial targets in core deposit growth and cost reductions. The bank's management has also noted a stable credit environment with improvements in charge-offs and delinquencies, further emphasizing their strategic focus on relationship-driven growth and balanced financial performance.
InvestingPro Insights
Columbia Banking System's recent dividend declaration aligns with its strong track record of shareholder returns. According to InvestingPro data, the company boasts an impressive dividend yield of 4.63%, making it an attractive option for income-focused investors. This is further supported by an InvestingPro Tip highlighting that Columbia has maintained dividend payments for 28 consecutive years, demonstrating a consistent commitment to returning value to shareholders.
The bank's financial health appears robust, with a price-to-earnings (P/E) ratio of 12.9 for the last twelve months as of Q3 2024, indicating that it may be undervalued relative to its earnings potential. This is reinforced by another InvestingPro Tip suggesting that Columbia is trading at a low P/E ratio relative to its near-term earnings growth.
Columbia's stock has shown strong momentum, with a 33.84% price total return over the past three months and a 57.41% return over the last six months. This performance has brought the stock price to 97.68% of its 52-week high, reflecting investor confidence in the company's prospects.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 10 more InvestingPro Tips available for Columbia Banking System, providing a deeper understanding of the company's financial position and market performance.
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