Columbia Financial, Inc. (CLBK) announced a definitive agreement to acquire Northfield Bancorp, Inc. (NFBK) for approximately $597 million in cash. The deal will create a combined regional bank with projected assets of $18 billion and will add Northfield’s 37 branches, strengthening Columbia’s presence in New Jersey and New York.
The transaction is structured as a second‑step conversion that will transform Columbia Bank’s mutual holding company into a fully public stock holding company. The conversion is a key corporate milestone that will unlock capital and broaden the company’s strategic flexibility. The acquisition is expected to close in the third quarter of 2026 after regulatory approval and shareholder consent.
Columbia reported Q4 2025 revenue of $68.78 million, up $46.07 million or 68% from the same period in 2024, and earnings per share of $0.16, beating the consensus estimate of $0.15 by $0.01 (7%). The company’s net income rose from a $21.2 million loss in Q4 2024 to $15.7 million in Q4 2025, a turnaround driven by stronger loan growth and improved net interest margins. The earnings beat reflects disciplined cost management and a favorable mix of commercial real‑estate and small‑business lending that offset higher operating expenses.
Net interest margin expanded by 48 basis points in Q4 2025, the largest quarterly gain in the company’s history. The margin lift was largely due to higher interest income from a 4.7% increase in total loans and a 0.46% non‑performing loan ratio that remained low relative to peers. Management credited the margin improvement to a balance‑sheet repositioning in Q4 2024 that reduced interest expense and to a disciplined approach to deposit pricing.
CEO Thomas Kemly said the acquisition “expands our footprint, deepens our commercial lending portfolio, and positions us for long‑term growth.” He added that the company’s focus on margin expansion, technology‑enabled efficiency, and strategic capital allocation will continue to drive profitability. Management reiterated its guidance for Q1 2026, maintaining a revenue outlook that reflects confidence in the combined entity’s scale and a stable macro environment.
Investors reacted positively to the combined announcement, with analysts noting the deal’s accretive impact on earnings and the company’s strong quarterly performance. The acquisition is expected to enhance Columbia’s competitive standing and provide a platform for future growth in the regional banking sector.
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