CLBK · Columbia Financial, Inc.

Columbia Financial reported strong first quarter 2026 results with net income increasing 47.2% year-over-year to $13.1 million, though this represented a sequential decline from the fourth quarter of 2025. The year-over-year improvement was primarily driven by a $10.1 million increase in net interest income, which rose 20.0% to $60.4 million, and a $2.0 million decrease in provision for credit losses to $1.0 million. Net interest margin expanded 31 basis points to 2.42% compared to the same quarter last year, benefiting from higher average loan yields (up 12 basis points to 5.01%) and lower funding costs, with the average cost of interest-bearing liabilities decreasing 29 basis points to 2.92%. Management attributed the margin expansion to net interest income growth and lower credit loss provisions, partially offset by merger-related costs and a higher effective tax rate of 29.9% (up from 25.9% in Q1 2025) due to non-deductible merger expenses. The company recorded net recoveries on loans of $604,000 compared to net charge-offs of $857,000 in the prior year period. On the balance sheet, total assets remained flat at $11.0 billion, with a shift from cash and cash equivalents (down $63.9 million) to debt securities available for sale (up $76.9 million). Loans receivable decreased modestly by $33.9 million, while total deposits declined $72.1 million, partially offset by a $60.0 million increase in borrowings. Asset quality showed some deterioration with non-performing loans increasing to $41.4 million (0.50% of total loans) from $38.0 million in the prior quarter, primarily due to one $10.6 million commercial real estate loan. President and CEO Thomas J. Kemly highlighted the company's announced intention to undertake a second-step conversion offering and merge with Northfield Bancorp, Inc., noting these transactions could transform the company by expanding into new geographic markets in the New York metro area, adding a lower cost deposit base, and providing capital for future growth, though completion remains subject to regulatory and shareholder approvals.