Columbia Financial to Acquire Northfield Bancorp, Q4 EPS Beats Estimates on $68.8M Revenue
Columbia Financial agreed to acquire peer Northfield Bancorp to expand its market presence. In Q4 CLBK reported EPS of $0.152 beating the $0.15 estimate and revenue of $68.8 million versus $60.7 million, marking a 20% year-over-year revenue increase.
1. Strategic Acquisition Expands Footprint
Columbia Financial announced it will acquire peer Northfield Bancorp in a deal valued at approximately $120 million. The transaction adds 12 community banking branches across Central New Jersey, increasing Columbia Financial’s total branch network to 46 locations. Management expects the deal to be immediately accretive to earnings and to generate annual cost synergies of $5 million by the end of 2026. The acquisition enhances the bank’s deposit base by roughly $700 million and expands its commercial lending portfolio by an estimated $400 million.
2. Q4 Earnings Surpass Estimates
For the quarter ended December 31, 2025, Columbia Financial reported earnings per share of $0.152, exceeding the consensus estimate of $0.15. Revenue came in at $68.8 million, topping the projection of $60.7 million. This marks the third time in four quarters that the company has beaten top-line expectations. Net interest income rose 14% year-over-year to $45.2 million, driven by higher loan yields, while non-interest income increased 8% to $12.4 million on expanded service fees and mortgage banking revenue.
3. Turnaround in Profitability
Columbia Financial achieved net income of $15.7 million for the quarter, compared to a net loss of $21.2 million in the same period last year. The turnaround reflects a 25% reduction in credit loss provisions and a 9% decrease in interest expense. Income tax expense increased by $1.3 million due to a change in deferred tax assets recognition, but was more than offset by the rise in operating earnings. The company’s allowance for credit losses stands at 1.2% of total loans, reflecting improved asset quality.
4. Valuation and Balance Sheet Metrics
The bank currently trades at a price-to-earnings multiple of 270.6 based on forward consensus earnings, while its price-to-sales ratio is approximately 3.97. The debt-to-equity ratio of 1.11 indicates a moderate leverage profile, and the current ratio of 0.13 highlights tight liquidity in the near term. Enterprise value to sales stands at 6.13, and enterprise value to operating cash flow is 39.25. Investors will be watching the combined company’s capital ratios post-acquisition, with pro forma Tier 1 leverage expected to remain above 8%.