TACOMA, Wash. – Colombia Banking System, Inc. (NASDAQ:), the holding company for Umpqua Bank, has declared a quarterly cash dividend of $0.36 per common share. The dividend will be paid 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 more than $50 billion in assets, operates Umpqua Bank, a major regional bank in the western United States. Umpqua Bank has a presence in several states, including Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington, and offers a range of banking services to both consumer and business customers.
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 offers loans for small business management, 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.
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 urged to consult Columbia’s filings with the SEC, 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 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 2024 earnings, highlighting core deposit growth, cost reductions and expansion into new markets. Earnings per share (EPS) were $0.70, and operating earnings per share were $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 lending.
In addition to the financial results, Columbia Banking System has made significant progress in its expansion efforts, expanding its presence in Arizona, Colorado, Utah and considering greater growth opportunities in Southern California. The company’s management has expressed its commitment to optimizing financial performance and potentially returning capital to shareholders in 2025.
These recent developments also include a focus on M&A opportunities, particularly following the upcoming election and Federal Reserve rate decisions. Despite a reduction in lending, Columbia Banking System has exceeded initial targets for 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 its 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 data from InvestingPro, the company boasts an impressive dividend yield of 4.63%, making it an attractive option for income-focused investors. This is further supported by advice from InvestingPro highlighting that Columbia has maintained dividend payments for 28 consecutive years, demonstrating an ongoing commitment to returning value to shareholders.
The bank’s financial health appears strong, with a price-to-earnings (P/E) ratio of 12.9 for the trailing twelve months to the third quarter of 2024, indicating that it may be undervalued relative to its earnings potential. This is reinforced by another tip from InvestingPro that suggests Columbia is trading on a low P/E ratio relative to its near-term earnings growth.
Columbia shares have shown strong momentum, with a total price return of 33.84% over the past three months and a return of 57.41% over the past six months. This performance has taken the share price to 97.68% of its 52-week high, reflecting investors’ confidence in the company’s prospects.
For investors looking for a more comprehensive analysis, InvestingPro offers additional insights and advice. 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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