Columbia Financial, Inc.

What they do

Columbia Bank operates as a community-oriented savings institution taking deposits and making loans, primarily commercial and residential real estate and commercial business loans, across New Jersey, Staten Island and Brooklyn. At June 30, 2026 the company reported $12.17 billion in total assets, $10.98 billion in total liabilities and $1.20 billion in shareholder equity. On July 20, 2026 it completed its second-step conversion offering and the acquisition of Northfield Bancorp, Inc., which management says added roughly $5.8 billion in total assets and over 100 branch offices.

Revenue drivers

• Net interest income — Earned on the loan and securities portfolios funded by deposits and borrowings; net interest income rose $9.2 million year over year in Q2 2026, and net interest margin was 2.44% for the quarter.
• Commercial loan production — Commercial loan segments grew $260.6 million in the three months ended June 30, 2026 versus March 31, 2026, including $78.8 million of commercial business loans.
• Non-interest income — Fees and other income including bank-owned life insurance; totaled $17.6 million for the six months ended June 30, 2026, down 5.7% from $18.6 million a year earlier.
• Deposit-funded balance sheet — Deposits, including a portion of the second-step conversion offering stock subscriptions, fund the loan book; proforma deposits were $12.5 billion as of March 31, 2026.

Recent performance

Q2 2026 net income was $14.5 million, or $0.14 per basic and diluted share, up from $12.3 million, or $0.12 per share, in Q2 2025; core net income was $15.1 million, or $0.15 per share. Net interest margin was 2.44%, up 25 basis points year over year and 8 basis points from 2.36% at December 31, 2025. Non-interest expense for the six months ended June 30, 2026 rose 9.2% to $96.9 million, driven by $5.5 million higher compensation and benefits and $2.6 million of merger-related expenses. For the six months, net income was $27.6 million, or $0.27 per share, versus $21.2 million, or $0.21 per share, in the prior-year period.

Strategy

On July 20, 2026 the company completed its second-step conversion offering, raising gross proceeds of $1.7 billion, and simultaneously acquired Northfield Bancorp, Inc., adding approximately $5.8 billion in total assets. Management describes these transactions as a transformation that introduces new geographic markets in the New York metropolitan area, expands a lower-cost deposit base and provides substantial capital for future franchise growth. The company also commenced a quarterly cash dividend, declaring $0.05 per share on July 30, 2026, payable August 26, 2026 to stockholders of record as of August 12, 2026.

Risks

• Credit quality deterioration — Non-performing loans rose to $43.0 million, or 0.51% of total gross loans, at June 30, 2026 from $38.0 million, or 0.46%, at December 31, 2025, including a $10.6 million commercial real estate loan designated non-performing.
• Merger integration and cost execution — The Northfield Bancorp acquisition completed July 20, 2026, and non-interest expense already rose 9.2% for the six months ended June 30, 2026, including $2.6 million of merger-related expenses.
• Higher effective tax rate — The effective tax rate rose to 28.7% for the six months ended June 30, 2026 from 25.6% a year earlier, mainly due to non-deductible merger-related expenses.
• Allowance adequacy and segment judgment — Management identifies the adequacy of the allowance for credit losses as a critical accounting policy requiring significant judgment on qualitative loss factors and economic forecasts.

Outlook

Management says the second-step conversion and Northfield acquisition are anticipated to meaningfully transform the company through new New York metropolitan markets, a lower-cost deposit base and substantial capital to support growth. The company began paying a quarterly cash dividend of $0.05 per share. Reported June 30, 2026 results do not reflect the Northfield acquisition; proforma total assets were $18.0 billion as of March 31, 2026.