Kash Pashootan Columbia Banking System Inc COLB-Q PAST TOP PICK May 17, 2018

(Top Pick Jan 16/15, Up 21.23%) You are getting away from investment and wealth management banking. As the debt capacity of the public goes higher, people start renovating, for example. He does not expect another 20% year. He expects 8-10% this year.

A US regional bank. Focused in the Pacific Northwest where there is significant growth in population, wages and employment. Financials have all been beaten up because the idea of rates going up is not as prevalent as had been originally thought. Dividend yield of 2.65%.

A regional bank, which is the purest play on the US consumer. The catalyst is that they recently made an acquisition of Pacific Continental for $644 million. The share price sold off making it an attractive entry point. Dividend yield of 2.14%. (Analysts’ price target is $43.80.)

(A Top Pick June 22/16. Up 62%.) Has liked this name for a few years. If you want to play the US consumer, regional banks are the way to do it. The issue is, there are so many regional banks.

A regional bank. Over the next year, with the confidence the US consumer is going to get with Wall Street Reform and tax reform, this is a name that tends to benefit. Located in a more affluent geography, in the Pacific Northwest, where there is growth in terms of jobs and income. Trading at around 20X. Dividend yield of 1.9%. (Analysts’ price target is $46.)

This regional bank is focused in the Pacific Northwest, where there is good demographic and employment fundamentals. It is priced at similar multiples as last year, but the regulatory environment is more favorable now. Yield 2.5%. (Analysts’ price target is $46.25)

He's long owned it. The regional U.S. bank space has been under pressure. U.S. growth will be challenged going ahead. COLB is down 20% YTD, though the dividend is safe and the company has a good balance sheet. The stock is neither cheap or pricey now. How much overall exposure do you have to U.S. financials? Consider that. It should be lower than in past years.