Columbia Financial, Inc. — Q3 2026 Earnings Summary

Financial Performance:

• Reported net income of $5.2 million ($0.02 per share) for the quarter ended September 30, 2026, a decrease from $14.9 million ($0.07 per share) in the same period in 2025.
• Reported net income of $32.8 million ($0.14 per share) for the nine months ended September 30, 2026, a decrease from $36.1 million ($0.16 per share) in the same period in 2025.
• Reported core net income of $40.6 million ($0.16 per share) for the quarter ended September 30, 2026, an increase from $15.4 million ($0.07 per share) in the same period in 2025.
• Reported core net income of $70.6 million ($0.30 per share) for the nine months ended September 30, 2026, an increase from $37.1 million ($0.17 per share) in the same period in 2025.
• Net interest income increased 99.3% to $114.4 million for the quarter and 47.3% to $237.7 million for the nine months compared to the prior year periods.
• Net interest margin increased 67 basis points to 2.96% for the quarter and 46 basis points to 2.66% for the nine months compared to the prior year periods.
• Non-interest expense increased 116.3% to $97.5 million for the quarter and 45.3% to $194.4 million for the nine months, primarily driven by merger-related expenses and increased compensation.
• Provision for credit losses decreased 21.8% to $1.8 million for the quarter and 8.3% to $7.1 million for the nine months compared to the prior year periods.
• Total assets increased $5.4 billion to $17.6 billion at September 30, 2026, from $12.2 billion at June 30, 2026.
• Total deposits increased $3.1 billion to $12.6 billion at September 30, 2026, from $9.5 billion at June 30, 2026.
• Total stockholders' equity increased $2.0 billion to $3.2 billion at September 30, 2026, from $1.2 billion at December 31, 2025.
• Return on average assets decreased to 0.13% for the quarter but core return on average assets increased to 0.97% compared to 0.56% in the prior year quarter.

Guidance and Future Outlook:

• Management expects to earn approximately $9.3 million in additional interest income over the next twelve months as a result of recent debt security transactions.
• The Company plans to complete the core system conversion during the first quarter of 2027.
• Management believes their approach to community relationship banking and disciplined capital deployment will drive strong earnings growth and stockholder returns.

Business Segments and Product Lines:

• Completed the acquisition of Northfield Bancorp, Inc. on July 20, 2026, adding approximately $5.2 billion in total assets, $3.2 billion in loans receivable, and $3.8 billion in deposits.
• Commercial real estate, construction, and commercial business loans increased $899.8 million (23.0%) for the quarter ended September 30, 2026, primarily due to the Northfield acquisition.
• Multifamily loans increased $2.0 billion to $3.7 billion at September 30, 2026.
• The Company sold $55.6 million of commercial real estate and multifamily loans that would be criticized or classified assets.
• The Company sold $246.2 million of unpaid principal loans collateralized by New York City rent-regulated multifamily properties, reducing exposure to less than 1.0% of total assets.
• The Company sold $9.1 million of delinquent and nonperforming residential real estate loans.

Market and Competitive Landscape:

• The Company continues to attract experienced commercial bankers and professionals to grow the Company and capture market share in served markets.
• The Company operates more than 100 full-service banking offices in select counties in New Jersey and Brooklyn and Staten Island, New York.
• Total gross loans increased $3.1 billion (37.2%) for the quarter ended September 30, 2026, compared to June 30, 2026.

Risks and Challenges:

• The Company recorded a loss on securities transactions of $40.8 million for the quarter and nine months ended September 30, 2026.
• The Company recorded a loss on sale of loans of $1.1 million for the quarter and $5.9 million for the sale of rent-regulated multifamily loans.
• The Company recorded a loss on extinguishment of debt of $196,000.
• Merger-related expenses recognized for the quarter were $30.6 million and $33.3 million for the nine months.
• The Company recorded a bargain purchase gain of $25.7 million, net of tax, related to the Northfield acquisition.
• The Company faces risks related to the integration of acquired financial institutions, changes in interest rates, and the adequacy of loan loss reserves.

Management Commentary and Tone:

• Thomas J. Kemly, President and CEO, stated the team successfully completed the second-step conversion offering and Northfield acquisition.
• Management executed transactions to improve earnings and reduce interest rate and credit risk by selling securities and delinquent assets.
• Management noted a material reduction in exposure to New York City rent-regulated multifamily loans.
• Management expressed confidence that their approach will drive strong earnings growth and stockholder returns.

Other Key Points:

• The Board of Directors declared a quarterly cash dividend of $0.05 per share, payable on November 25, 2026, to stockholders of record as of November 10, 2026.
• The Company raised approximately $1.6 billion of common stockholders' equity net of underwriting and transactional expenses through its second-step conversion offering.
• Total shares outstanding following the stock offering and Northfield acquisition were 269,539,984.
• The Company recorded a core deposit intangible of $76.2 million during the quarter.
• The Company purchased $1.1 billion of debt securities with a weighted average yield of 4.80%.
• The Company repaid and prepaid $353.5 million of borrowings with a weighted average cost of 3.97%.
• The Company sold $650.6 million of Northfield debt securities available for sale with no gain or loss.
• The Company sold $254.7 million of debt securities available for sale at a net loss of $40.8 million and purchased $221.2 million of higher-yielding debt securities.
• The Company's effective tax rate was 16.7% for the quarter ended September 30, 2026, compared to 25.0% in the prior year quarter.
• The Company's effective tax rate was 49.7% for the nine months ended September 30, 2026, compared to 25.4% in the prior year period.
• Non-performing loans at September 30, 2026, excluding purchased credit deteriorated loans, totaled $36.5 million, or 0.31% of total gross loans.
• The allowance for credit losses on loans increased $51.4 million to $118.6 million at September 30, 2026, primarily due to the Northfield acquisition.
• Total capital ratio increased to 25.75% at September 30, 2026, from 14.92% at December 31, 2025.
• Book value per share was $11.74 at September 30, 2026, compared to $11.16 at December 31, 2025.
• Tangible book value per share was $11.04 at September 30, 2026, compared to $10.03 at December 31, 2025.