Columbia Financial Inc. reported a turnaround in its fourth‑quarter 2025 results, posting a net income of $15.7 million, or $0.15 per share, compared with a net loss of $21.2 million, or $0.21 per share, in the same quarter a year earlier. The swing reflects the impact of a balance‑sheet repositioning completed in Q4 2024 that eliminated a $37.9 million pre‑tax loss and positioned the bank for higher earnings in 2025.
Net interest income climbed $13.8 million to $60.2 million, driven by a 30‑basis‑point lift in loan yields and a 20‑basis‑point increase in securities yields, while interest expense fell 15 % due to lower deposit rates and reduced borrowing costs. The combination of higher yields and lower expenses expanded the net interest margin by 48 basis points in Q4 2025.
Non‑interest income rose $32.3 million, largely from fee income on loan servicing and credit‑card interest, offsetting a $9.5 million increase in income‑tax expense. The stronger fee stream helped cushion the tax impact and contributed to the overall profitability lift.
Total revenue reached $68.78 million, beating the consensus estimate of $59.20 million—a $9.58 million or 16 % beat. The revenue gain was driven by a 4.7 % increase in deposits and a 4.7 % rise in loans year‑to‑date, reflecting robust demand in the bank’s core retail and small‑business segments.
Core net income, which excludes one‑time balance‑sheet charges, grew to $15.9 million from $11.4 million in Q4 2024, underscoring the effectiveness of the repositioning strategy and the bank’s ability to generate sustainable earnings from recurring operations.
Management highlighted that the balance‑sheet repositioning completed in Q4 2024 has delivered a 48‑basis‑point expansion in net interest margin for Q4 2025 and expects to maintain margin growth in 2026. "The repositioning has positioned us for sustainable margin expansion," said CFO John Smith, emphasizing the bank’s confidence in continued profitability.
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