Company expects Northfield Bancorp acquisition to expand geographic reach and deposit base
Overview
U.S. regional bank's Q2 net income rose 18% yr/yr, driven by higher net interest income
Adjusted net income for Q2 was $15.1 mln, reflecting core earnings growth
Company completed second-step conversion and Northfield Bancorp acquisition in July, expanding assets and markets
Result drivers
Net interest income - Higher net interest income driven by increased average loan balances, higher loan yields, and lower cost of interest-bearing liabilities
Non-interest income - Increase in non-interest income mainly from bank-owned life insurance death benefit and policy transitions
Higher expenses - Results partially offset by increased provision for credit losses, higher compensation, technology, and merger-related costs
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Columbia Financial Inc is $8.64, about 20.8% below its July 29 closing price of $10.91
The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 23 three months ago
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