Columbia Financial Inc

Latest Results (12.10.2025):

Columbia Financial Inc. reported a net loss of $21.2 million for the fourth quarter of 2024, compared to a net income of $6.6 million in the same quarter of 2023. The loss was primarily due to lower non-interest income from a balance sheet repositioning transaction. Despite the net loss, the company saw an increase in core net income by 12.4%, reflecting strategic measures to enhance future earnings and expand its net interest margin.

Net Loss in Q4 2024

For the quarter ended December 31, 2024, Columbia Financial Inc. experienced a net loss of $21.2 million, a significant decrease from the net income of $6.6 million reported in Q4 2023. This loss was mainly driven by a $35.0 million reduction in non-interest income and an increase in credit loss provisions.

Balance Sheet Repositioning

The company undertook a balance sheet repositioning strategy by selling $352.3 million of debt securities, which resulted in a pre-tax loss of $37.9 million. The proceeds were utilized to fund loan growth, purchase higher-yielding debt securities, and prepay higher-cost borrowings, aiming to improve future earnings and net interest margins.

Increase in Core Net Income

Core net income for Q4 2024 rose by 12.4% to $11.4 million compared to $10.1 million in Q4 2023. This improvement was achieved despite the net loss, reflecting the positive impact of strategic financial adjustments made by the company.

Provision for Credit Losses

The provision for credit losses increased to $2.9 million in Q4 2024 from $1.2 million in the previous year, driven by higher net charge-offs and deteriorating loan performance indicators.

Net Interest Margin Enhancement

Columbia Financial Inc.'s net interest margin slightly improved to 1.88% in Q4 2024 from 1.85% in Q4 2023. This increase was due to a rise in the average yield on interest-earning assets, which marginally outpaced the growth in the cost of interest-bearing liabilities.

CEO's Outlook

Thomas J. Kemly, President and CEO, emphasized the company's strong balance sheet and capital position, highlighting the potential benefits from an improving operating environment. He expressed confidence in the repositioning strategy to drive future profitability and success.