Financial Performance - Net income for the quarter ended September 30, 2025, was $14.9 million, an increase of $8.7 million, or 140.3%, compared to $6.2 million for the same quarter in 2024[210] - Net interest income rose to $57.4 million for the quarter ended September 30, 2025, an increase of $12.1 million, or 26.7%, from $45.3 million for the same quarter in 2024[211] - Non-interest income increased by $889,000, or 9.9%, to $9.9 million for the quarter ended September 30, 2025, from $9.0 million for the same quarter in 2024[216] - Non-interest income increased by $2.9 million, or 11.3%, to $28.5 million for the nine months ended September 30, 2025, compared to $25.6 million in 2024[226] - The provision for credit losses decreased by $1.8 million, or 42.9%, to $2.3 million for the quarter ended September 30, 2025, compared to $4.1 million for the same quarter in 2024[215] - The provision for credit losses decreased by $3.8 million, or 33.1%, to $7.7 million for the nine months ended September 30, 2025, from $11.6 million in 2024[225] Asset and Liability Management - Total assets increased by $380.3 million, or 3.6%, to $10.9 billion at September 30, 2025, compared to $10.5 billion at December 31, 2024[203] - Total liabilities increased by $319.8 million, or 3.4%, to $9.7 billion at September 30, 2025, from $9.4 billion at December 31, 2024[207] - Loans receivable, net, increased by $349.9 million, or 4.5%, to $8.2 billion at September 30, 2025, from $7.9 billion at December 31, 2024[206] - Non-performing loans totaled $32.5 million, or 0.40% of total gross loans, at September 30, 2025, up from $21.7 million, or 0.28%, at December 31, 2024[229] - The allowance for credit losses on loans was $65.7 million, or 0.80% of total gross loans, at September 30, 2025, compared to $60.0 million, or 0.76%, at December 31, 2024[231] Capital Ratios - Total capital to risk-weighted assets ratio was 14.88% as of September 30, 2025, exceeding the minimum requirement of 8.00%[266] - Tier 1 capital to risk-weighted assets ratio was 14.01% as of September 30, 2025, surpassing the minimum requirement of 6.00%[266] - Common equity tier 1 capital to risk-weighted assets ratio was 13.92% as of September 30, 2025, above the minimum requirement of 4.50%[266] - The Company and Columbia Bank both exceeded all capital adequacy requirements as of September 30, 2025, indicating strong financial health[265] Interest Rate Sensitivity - As of September 30, 2025, net interest income would decrease by approximately 6.89% if rates were to rise 200 basis points, and would increase by 5.99% if rates were to decrease 200 basis points[255] - The average yield on loans increased by 4 basis points to 5.04% for the quarter ended September 30, 2025, compared to 5.00% for the same quarter in 2024[212] - The average yield on loans increased by 5 basis points to 4.96% for the nine months ended September 30, 2025, compared to 4.91% for the same period in 2024[221] - The average yield on securities increased by 65 basis points to 3.47% for the nine months ended September 30, 2025, compared to 2.82% for the same period in 2024[221] - The net interest margin increased by 40 basis points to 2.20% for the nine months ended September 30, 2025, compared to 1.80% for the same period in 2024[224] Liquidity Management - The Company had immediate access to approximately $2.5 billion and $2.7 billion of funding from various sources as of September 30, 2025, and December 31, 2024, respectively[263] - The Company maintains a stable funding base by focusing on core deposit accounts, which aids in retaining maturing time deposit accounts[249] - The Company’s liquidity management includes maintaining diverse borrowing resources to fund potential cash needs[260] - The Company has contingency funding plans to address liquidity needs arising from stress events such as rapid asset growth or financial market disruptions[262] Tax and Regulatory Compliance - The effective tax rate increased to 25.0% for the quarter ended September 30, 2025, compared to 15.5% for the same quarter in 2024, mainly due to higher pre-tax income[218] - Income tax expense increased by $11.0 million to $12.3 million for the nine months ended September 30, 2025, compared to $1.3 million in 2024, primarily due to higher pre-tax income[228] - The Company's management concluded that its disclosure controls and procedures were effective as of September 30, 2025[269] - There were no changes in the Company's internal control over financial reporting that materially affected its effectiveness during the quarter ended September 30, 2025[270]

Core Viewpoint - Columbia Financial (CLBK) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based solely on a company's changing earnings picture, with the Zacks Consensus Estimate reflecting EPS estimates from sell-side analysts [1][2]. - The correlation between changes in earnings estimates and near-term stock price movements is strong, with institutional investors playing a role in this relationship [4]. Business Outlook - The upgrade indicates a positive outlook for Columbia Financial's earnings, suggesting potential buying pressure and an increase in stock price [3][5]. - For the fiscal year ending December 2025, Columbia Financial is expected to earn $0.50 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 12.5% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - Columbia Financial's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Viewpoint - Columbia Financial's shares increased by 7.4% following a strong earnings call, where the bank exceeded expectations in net interest income and earnings per share [1][2]. Financial Performance - The bank reported net interest income of $57.4 million, a 26.7% increase year-over-year, and earnings per share rose by 150% to $0.15, both surpassing market expectations [2]. - The growth in net interest income was attributed to reinvesting lower-yielding securities into higher-yielding ones and reduced deposit costs due to recent Federal Reserve rate cuts [3]. Underwriting and Loan Performance - Provisions for loan losses decreased due to lower charge-offs, indicating effective underwriting practices by management [3]. - Loan growth was modest at 4.8% annualized for the quarter, yet the bank achieved significant revenue and earnings growth [3]. Market Context - Columbia Financial's performance stands out amid recent sell-offs in regional banks due to concerns over bad loans in the sector [5]. - The bank's loan portfolio, primarily consisting of multifamily and residential units, has remained resilient despite fears surrounding commercial real estate [5][6]. Return on Equity and Future Outlook - The bank's return on equity (ROE) improved to 6% from 2.6% in the previous year, suggesting a potential turnaround if margins continue to expand [7]. - Although current financial metrics may not appear strong, the rapid improvement indicates a positive trajectory for the bank [7].

Core Insights - Columbia Financial (CLBK) reported revenue of $67.25 million for the quarter ended September 2025, marking a year-over-year increase of 24% and exceeding the Zacks Consensus Estimate of $65.6 million by 2.52% [1] - The company achieved an EPS of $0.15, up from $0.06 a year ago, resulting in an EPS surprise of 15.38% compared to the consensus estimate of $0.13 [1] Financial Performance Metrics - Net Interest Margin was reported at 2.3%, matching the average estimate from two analysts [4] - Efficiency Ratio stood at 67%, better than the average estimate of 68.9% from two analysts [4] - Total Non-Interest Income reached $9.87 million, surpassing the average estimate of $9.42 million [4] - Net Interest Income was reported at $57.39 million, exceeding the average estimate of $56.23 million from two analysts [4] Stock Performance - Columbia Financial's shares have returned -11.5% over the past month, contrasting with the Zacks S&P 500 composite's increase of 1.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Columbia Financial (CLBK) reported quarterly earnings of $0.15 per share, exceeding the Zacks Consensus Estimate of $0.13 per share, and showing an increase from $0.06 per share a year ago, resulting in an earnings surprise of +15.38% [1] - The company achieved revenues of $67.25 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.52% and up from $54.25 million year-over-year [2] - Columbia Financial has outperformed consensus EPS estimates three times in the last four quarters and has also topped revenue estimates three times during the same period [2] Earnings Outlook - The future performance of Columbia Financial's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $67.4 million, while for the current fiscal year, the estimate is $0.48 on revenues of $254.3 million [7] Industry Context - The Financial - Miscellaneous Services industry, to which Columbia Financial belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Financial Performance - For Q3 2025, Columbia Financial reported net income of $14.9 million, a 240.3% increase from $6.2 million in Q3 2024[2] - For the nine months ended September 30, 2025, net income was $36.1 million, a 276.9% increase from $9.6 million in the same period of 2024[17] - Net income for the three months ended September 30, 2025, was $14,868 thousand, a substantial rise from $6,185 thousand in 2024, representing an increase of 140.5%[46] - Total income for the nine months ended September 30, 2025, reached $189,925,000, compared to $157,165,000 for the same period in 2024, reflecting a growth of 20.8%[68] Interest Income and Margin - Net interest income for Q3 2025 was $57.4 million, up $12.1 million or 26.7% from $45.3 million in Q3 2024[7] - The net interest margin increased to 2.29% in Q3 2025, a rise of 45 basis points from 1.84% in Q3 2024[12] - Total interest income for the three months ended September 30, 2025, was $120,417 thousand, an increase from $115,887 thousand in the same period of 2024, representing a growth of 2.8%[46] - Net interest income after provision for credit losses for the three months ended September 30, 2025, was $55,042 thousand, compared to $41,172 thousand in 2024, reflecting a significant increase of 33.7%[46] - Net interest income rose to $161,414 thousand for the nine months ended September 30, 2025, up from $131,555 thousand in the same period of 2024, representing a year-over-year increase of 22.6%[51] Non-Interest Income and Expenses - Non-interest income for Q3 2025 was $9.9 million, an increase of $889,000 or 9.9% from $9.0 million in Q3 2024[14] - Non-interest income for the nine months ended September 30, 2025, was $28.5 million, an increase of $2.9 million or 11.3% from $25.6 million in the same period of 2024[24] - Total non-interest expense for the three months ended September 30, 2025, was $45,086 thousand, compared to $42,834 thousand in 2024, indicating an increase of 5.3%[46] - Non-interest expense for Q3 2025 was $45,086,000, slightly higher than $42,834,000 in Q3 2024, representing a 5.2% increase[68] Asset and Liability Management - Total assets increased by $380.3 million, or 3.6%, to $10.9 billion at September 30, 2025, driven by a $349.9 million increase in loans receivable, net[27] - Total liabilities increased by $319.8 million, or 3.4%, to $9.7 billion at September 30, 2025, primarily due to a $144.2 million increase in total deposits[30] - Loans receivable, net, rose by $349.9 million, or 4.5%, to $8.2 billion at September 30, 2025, with multifamily loans increasing by $151.5 million[29] - Total deposits reached $8,240,321 as of September 30, 2025, with a weighted average interest rate of 2.32%, down from 2.36% in June 30, 2025[59] Credit Quality and Provisions - The provision for credit losses decreased by $1.8 million, or 42.9%, to $2.3 million in Q3 2025 compared to $4.1 million in Q3 2024[13] - Non-performing loans totaled $32.5 million, or 0.40% of total gross loans, at September 30, 2025, up from $21.7 million, or 0.28%, at December 31, 2024[33] - The allowance for credit losses on loans increased to $65.7 million, or 0.80% of total gross loans, at September 30, 2025, compared to $60.0 million, or 0.76%, at December 31, 2024[35] - Net charge-offs for the nine months ended September 30, 2025, totaled $5.2 million, down from $8.2 million for the same period in 2024[34] Efficiency and Ratios - The effective tax rate for Q3 2025 was 25.0%, up from 15.5% in Q3 2024, primarily due to higher pre-tax income[16] - The efficiency ratio improved to 67.04% in September 2025, down from 78.95% in September 2024, indicating enhanced operational efficiency[55] - The core efficiency ratio decreased to 66.04% in Q3 2025 from 79.14% in Q3 2024, showing a positive trend in cost management[68] - The return on average assets for the three months ended September 30, 2025, was 0.55%, compared to 0.23% for the same period in 2024, indicating improved asset efficiency[63] Shareholder Equity - Total stockholders' equity increased by $60.6 million, or 5.6%, to $1.1 billion at September 30, 2025, attributed to net income of $36.1 million[31] - The book value per share increased to $10.89 as of September 30, 2025, from $10.31 at December 31, 2024[61] - The total tangible stockholders' equity was $1,022,811 as of September 30, 2025, compared to $960,697 at December 31, 2024, showing growth in shareholder equity[61] Loan Growth and Quality - Loan growth for Q3 2025 was $97.1 million, resulting in an annualized growth rate of approximately 4.8%[8] - The average balance of loans for the three months ended September 30, 2025, was $8,165,132 thousand, an increase from $7,791,131 thousand in 2024, representing a growth of 4.8%[48] - The ratio of non-performing loans to total gross loans was 0.40% as of September 30, 2025, compared to 0.49% in June 2025, indicating improved asset quality[56]

Core Insights - Columbia Financial, Inc. reported a significant increase in net income for the quarter ended September 30, 2025, reaching $14.9 million, compared to $6.2 million for the same period in 2024, driven by higher net interest income and reduced credit loss provisions [1][5][15] - For the nine months ended September 30, 2025, net income was $36.1 million, a substantial increase from $9.6 million in the same period of 2024, reflecting similar drivers as the quarterly results [2][15] Financial Performance - Net interest income for the quarter was $57.4 million, an increase of $12.1 million or 26.7% from $45.3 million in the prior year [6][10] - The provision for credit losses decreased to $2.3 million, down 42.9% from $4.1 million in the same quarter of 2024 [11] - Non-interest income rose to $9.9 million, a 9.9% increase from $9.0 million in the prior year [12] - Non-interest expense increased to $45.1 million, up 5.3% from $42.8 million in the same quarter of 2024 [13] Balance Sheet Highlights - Total assets increased by $380.3 million, or 3.6%, to $10.9 billion as of September 30, 2025 [26] - Loans receivable, net, rose by $349.9 million, or 4.5%, to $8.2 billion [29] - Total liabilities increased by $319.8 million, or 3.4%, to $9.7 billion [30] - Total stockholders' equity increased by $60.6 million, or 5.6%, to $1.1 billion [31] Asset Quality - Non-performing loans totaled $32.5 million, or 0.40% of total gross loans, an increase from $21.7 million, or 0.28%, at the end of 2024 [33] - The allowance for credit losses on loans increased to $65.7 million, or 0.80% of total gross loans [35] Strategic Initiatives - The company resumed its share repurchase program in September 2025, authorizing the repurchase of 1,800,000 shares [7] - Management emphasized the strength of core customer relationships and the local economy as key factors in the company's growth strategy [3]

Core Viewpoint - Columbia Financial, Inc. has announced a new stock repurchase program to buy back up to 1,800,000 shares, representing approximately 1.7% of its outstanding common stock, following approval from the Federal Reserve Bank of Philadelphia [1]. Summary by Sections Stock Repurchase Program - The stock repurchase program allows for shares to be repurchased through open market transactions, private transactions, and trading plans compliant with SEC Rule 10b5-1 [2]. - The program will be effective for one year, with the actual number of shares repurchased depending on various factors such as price, market conditions, and corporate liquidity needs [3][4]. - The company is not obligated to repurchase a specific number of shares and may suspend or discontinue the program at any time [3][4]. Company Overview - Columbia Financial, Inc. is the holding company for Columbia Bank, a federally chartered savings bank headquartered in Fair Lawn, New Jersey, operating 69 full-service banking offices [5].

Core Viewpoint - Columbia Financial (CLBK) is positioned as a strong investment opportunity due to its improving earnings outlook and positive analyst sentiment, which is reflected in rising earnings estimates [1][2]. Earnings Estimate Revisions - The trend in earnings estimate revisions indicates growing analyst optimism, which is expected to positively impact the stock price [2]. - For the current quarter, Columbia Financial is projected to earn $0.13 per share, representing a significant increase of +116.7% from the previous year [6]. - Over the last 30 days, the Zacks Consensus Estimate for the current quarter has risen by 13.04%, with two estimates moving higher and no negative revisions [6]. - For the full year, the earnings estimate is $0.48 per share, reflecting a change of +108.7% from the prior year [7]. - The consensus estimate for the current year has increased by 9.09% over the past month, with two estimates moving higher and no negative revisions [7][8]. Zacks Rank and Performance - Columbia Financial has achieved a Zacks Rank 2 (Buy), indicating favorable conditions for investment based on the positive estimate revisions [9]. - The Zacks Rank system has a strong track record, with Zacks 1 (Strong Buy) stocks averaging an annual return of +25% since 2008 [3]. - Stocks with Zacks Rank 1 and 2 are shown to significantly outperform the S&P 500 [9]. Stock Performance - The stock has gained 9.1% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [10].

Financial Performance - Net income for the quarter ended June 30, 2025, was $12.3 million, an increase of $7.8 million compared to $4.5 million for the same quarter in 2024[210]. - Net interest income rose to $53.7 million for the quarter ended June 30, 2025, an increase of $9.6 million, or 21.8%, from $44.1 million for the same quarter in 2024[211]. - Non-interest income for the quarter ended June 30, 2025, was $10.2 million, an increase of $993,000, or 10.8%, from $9.2 million for the same quarter in 2024[215]. Assets and Liabilities - Total assets increased by $263.5 million, or 2.5%, to $10.7 billion at June 30, 2025, compared to $10.5 billion at December 31, 2024[203]. - Total liabilities increased by $223.2 million, or 2.4%, to $9.6 billion at June 30, 2025, primarily due to an increase in borrowings of $192.0 million, or 17.8%[207]. - Total stockholders' equity increased by $40.3 million, or 3.7%, to $1.1 billion at June 30, 2025, attributed to net income and an increase in other comprehensive income[209]. Loan and Interest Metrics - Loans receivable, net, increased by $254.1 million, or 3.2%, to $8.1 billion at June 30, 2025, driven by increases in multifamily loans, commercial real estate loans, and commercial business loans[206]. - The average yield on loans increased by 3 basis points to 4.96% for the quarter ended June 30, 2025, compared to 4.93% for the same quarter in 2024[212]. - The Company's net interest margin increased by 38 basis points to 2.19% for the quarter ended June 30, 2025, compared to 1.81% for the same quarter in 2024[214]. - Total interest expense decreased by $6.4 million, or 9.3%, to $62.8 million for the quarter ended June 30, 2025, from $69.2 million for the same quarter in 2024[213]. Interest Rate Sensitivity - As of June 30, 2025, net interest income would decrease by approximately 10.30% if interest rates rise by 200 basis points, and would increase by 9.33% if rates decrease by 200 basis points[258]. - The net portfolio value (NPV) is projected to decrease by 16.34% with an immediate and sustained 200 basis point increase in interest rates, while a decrease of 200 basis points would forecast a 12.62% increase in NPV[259]. Capital Ratios - As of June 30, 2025, the total capital to risk-weighted assets ratio was 14.18%, exceeding the minimum requirement of 8.00%[269]. - The Tier 1 capital to risk-weighted assets ratio was 13.35% as of June 30, 2025, above the minimum requirement of 6.00%[269]. - The common equity tier 1 capital to risk-weighted assets ratio was 13.27% as of June 30, 2025, surpassing the minimum requirement of 4.50%[269]. - As of June 30, 2025, Columbia Bank's total capital to risk-weighted assets ratio was 14.40%, also exceeding the minimum requirement[270]. Liquidity Management - The company has contingency funding plans to assess liquidity needs arising from stress events, ensuring adequate liquidity sources are available[265]. - The Asset/Liability Committee measures liquidity risks and reviews adherence to policies quarterly, ensuring effective liquidity management[264]. - The company maintains diverse borrowing resources to mitigate liquidity risk, funding less liquid assets with stable sources[263]. - The company had immediate access to approximately $2.5 billion and $2.7 billion in funding from various sources as of June 30, 2025, and December 31, 2024, respectively[266].