Columbia Financial, Inc.

Columbia Financial, Inc. (CLBK) operates as a federal savings bank, Columbia Bank, serving the financial needs of businesses and consumers primarily in New Jersey, and the suburbs surrounding the New York City and Philadelphia metropolitan areas ¹. The company attracts deposits from the general public and uses these funds to originate various loans, including multifamily and commercial real estate loans, commercial business loans, one-to-four family real estate loans, construction loans, home equity loans, and other consumer loans ². Additionally, CLBK offers title insurance through its wholly-owned subsidiary, First Jersey Title Services, Inc., and a broad range of insurance products through Columbia Insurance Services, Inc. ³. Wealth management services are also provided via a third-party relationship ⁴.

CLBK's core business model is centered on traditional banking services, generating revenue primarily from net interest income, which is the difference between interest earned on loans and securities and interest paid on deposits and borrowings ⁵. A secondary revenue stream is non-interest income from service charges, loan fees, interchange income, gains/losses on sales of loans and securities, mortgage servicing revenue, bank-owned life insurance income, and fees from title insurance and insurance agency businesses ⁶. The company emphasizes commercial lending and has grown through strategic acquisitions, including Atlantic Stewardship Bank, Roselle Bank, Freehold Bank, and RSI Bank since November 2019 ⁷.

The company's lending activities are diversified across several categories. Multifamily and commercial real estate loans constituted $4.2 billion ⁸, or 50.9% ⁹ of the total loan portfolio at December 31, 2025. One-to-four family residential loans totaled $2.6 billion ¹⁰, representing 31.0% ¹¹ of the portfolio. Commercial business loans amounted to $768.1 million ¹², or 9.3% ¹³ of the total loan portfolio. Construction loans were $469.4 million ¹⁴, or 5.7% ¹⁵ of the portfolio, while home equity loans and advances were $255.1 million ¹⁶, or 3.1% ¹⁷. Other consumer loans were a minor component at $2.9 million ¹⁸.

For the fiscal year ended December 31, 2025, CLBK reported net income of $51.8 million ¹⁹, a significant increase from a net loss of $11.7 million ²⁰ in the prior year. Total revenue, represented by net interest income plus non-interest income, was $258.7 million ²¹. The company recorded a provision for credit losses of $9.8 million ²². Total non-interest expense was $180.9 million ²³. Basic and diluted EPS were both $0.51 ²⁴. As of December 31, 2025, cash and cash equivalents totaled $340.8 million ²⁵. Total debt, including borrowings and junior subordinated debentures, was $1.183 billion ²⁶.

Comparing fiscal year 2025 to 2024, net interest income increased by $43.7 million ²⁷, or 24.5% ²⁸, to $221.6 million ²⁹. The provision for credit losses decreased by $4.6 million ³⁰, or 32.0% ³¹, to $9.8 million ³². Non-interest income saw a substantial increase of $35.2 million ³³, or 1,857.2% ³⁴, reaching $37.1 million ³⁵, primarily due to a $36.1 million ³⁶ increase in gain on securities transactions, which included a $34.6 million ³⁷ loss in 2024 from a balance sheet repositioning. Total non-interest expense decreased slightly by $443,000 ³⁸, or 0.2% ³⁹, to $180.9 million ⁴⁰. Income tax expense increased by $20.5 million ⁴¹ to $16.2 million ⁴², compared to a tax benefit of $4.3 million ⁴³ in 2024.

During 2025, total assets increased by $543.3 million ⁴⁴, or 5.2% ⁴⁵, to $11.0 billion ⁴⁶. This growth was driven by increases in cash and cash equivalents of $51.6 million ⁴⁷, debt securities available for sale of $96.1 million ⁴⁸, and loans receivable, net, of $367.8 million ⁴⁹. Total liabilities increased by $462.9 million ⁵⁰, or 4.9% ⁵¹, to $9.9 billion ⁵², mainly due to a $347.9 million ⁵³ increase in total deposits and a $102.9 million ⁵⁴ increase in borrowings. Total stockholders' equity increased by $80.4 million ⁵⁵, or 7.4% ⁵⁶, to $1.2 billion ⁵⁷, primarily from net income and an increase of $34.4 million ⁵⁸ in other comprehensive income.

The company anticipates simultaneously completing its conversion from a mutual holding company to a fully-public stock holding company, a related stock offering, and the merger with Northfield Bancorp, Inc. in the third quarter of 2026 ⁵⁹. The Plan of Conversion provides for the sale of shares of common stock of the newly-formed Holding Company to depositors and certain eligible borrowers of Columbia Bank and other members of the public, and for the exchange of shares of the Company's common stock held by persons other than the MHC for shares of Holding Company Common Stock, based on an appraised pro forma market value ⁶⁰.

The merger with Northfield Bancorp, Inc. is expected to result in various benefits, including enhanced revenues, a strengthened market position for the surviving corporation, cross-selling opportunities, technological efficiencies, cost savings, and operating efficiencies ⁶¹. The company's business strategy includes growth in assets and deposits and the scale of its operations, requiring it to attract customers from other financial institutions in its market area ⁶². This growth strategy also involves opening new branches in and around its market area, potentially including neighboring states, to expand its deposit base ⁶³.

The company intends to continue its emphasis on commercial lending, building on recent investments in lending staff, technology, and processes ⁶⁴. Specifically, it will continue to expand commercial real estate and commercial business lending efforts, including asset-based and equipment finance lending, and will continue to offer competitive pricing for its one-to-four family loan products in New Jersey, New York, and Pennsylvania ⁶⁵. The increase in commercial business loans in 2025 included a purchase of $130.9 million ⁶⁶ in equipment finance loans from a third party ⁶⁷.

Management expects to continue to focus on maintaining a high-quality securities portfolio that provides consistent cash flows in changing interest rate environments ⁶⁸. The company's current strategies include changing the deposit mix to include more core deposits ⁶⁹. It will continue efforts to emphasize deposit taking through various channels, including brokered deposits and reciprocal deposit arrangements with third parties ⁷⁰.

The company will incur significant non-recurring costs associated with combining the operations of Northfield with its own, including legal, financial advisory, accounting, consulting, severance, public company filing, and contract termination fees ⁷¹. While the elimination of duplicative costs and other efficiencies are expected to offset these incremental costs over time, this net benefit may not be achieved in the near term or at all ⁷². The company also faces increased scrutiny from governmental authorities as a result of the significant increase in the size of its business following the merger ⁷³.

The company faces significant risks, including general economic conditions that are worse than expected, changes in the interest rate environment reducing net interest margin or fair value of financial instruments, and increased competitive pressures among financial services companies ⁷⁴. Changes in consumer spending, borrowing, and savings habits, as well as changes in the quality and composition of loan or securities portfolios, also pose risks ⁷⁵. Major catastrophes, legislative or regulatory changes, and the impact of tariffs, government shutdowns, war, terrorism, riots, civil insurrection, or social unrest could adversely affect the business ⁷⁶. The company's ability to enter new markets, capitalize on growth opportunities, and successfully integrate acquired entities, including the pending merger with Northfield Bancorp, Inc., is crucial ⁷⁷. Technological changes, cyber attacks, and the inability of third-party service providers to perform are also significant operational risks ⁷⁸. The company's multifamily and commercial real estate loan portfolios, totaling $4.2 billion ⁷⁹ or 50.9% ⁸⁰ of the total loan portfolio at December 31, 2025, expose it to increased lending risks, as do construction loans, which were $469.4 million ⁸¹ or 5.7% ⁸² of the portfolio, with $218.4 million ⁸³ being speculative construction loans ⁸⁴. The geographic concentration of the loan portfolio in New Jersey and metropolitan New York and Philadelphia makes it vulnerable to regional economic downturns ⁸⁵. At December 31, 2025, uninsured deposits totaled $3.3 billion ⁸⁶, including $944.6 million ⁸⁷ in collateralized municipal deposits and $42.6 million ⁸⁸ in intercompany deposits, posing a liquidity risk if large deposit outflows occur ⁸⁹. The company is also subject to environmental, social, and governance (ESG) risks that could adversely affect its reputation and stock price ⁹⁰.

Management's message to shareholders emphasizes a commitment to enhancing shareholder value, maintaining a robust capital position, achieving strong financial performance, and ensuring the safety of depositors' funds ⁹¹. They also aim to provide high-quality products and services that improve customers' financial well-being, deliver exceptional customer service, and foster a rewarding work environment that promotes accountability, success, wellness, and quality of life for employees ⁹². The company anticipates simultaneously completing its conversion, a stock offering, and the merger with Northfield Bancorp, Inc. in the third quarter of 2026 ⁹³. Strategic priorities include continued emphasis on commercial lending, expanding commercial real estate and commercial business lending efforts, and opening new branches in and around its market area, potentially including neighboring states ⁹⁴. Management also highlights investments in employee growth and development through various learning programs, and a focus on talent management to align with company initiatives, including promoting quality customer service and enhancing the client experience ⁹⁵.