Columbia Financial Q3 net income drops

Overview

• US regional bank's Q3 net income fell sharply year-over-year

• Core net income rose, reflecting adjustments for merger and non-core items

• Company completed Northfield acquisition and second-step conversion, driving major balance sheet changes

Outlook

• Company plans to complete core system conversion in Q1 2027

Result Drivers

• NORTHFIELD ACQUISITION - Qtr results were materially impacted by the Northfield acquisition, which increased assets, loans, deposits and resulted in a bargain purchase gain and higher merger-related expenses

• NET INTEREST INCOME - Higher net interest income driven by increased balances and yields on loans, mainly related to the Northfield acquisition

• SECURITIES AND LOAN SALES - Losses on securities transactions and sales of loans negatively affected non-interest income

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "hold."

• Wall Street's median 12-month price target for Columbia Financial Inc is $14.00, about 31.2% above its October 28 closing price of $10.67

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 28 three months ago

Reuters Recommended Reads

• Oct 27 - CF Bankshares Q3 net income jumps 158% on loan growth

• Oct 27 - NBT Bancorp Q3 profit rises on loan growth, higher net interest income

• Oct 27 - First Financial Q3 profit jumps year-over-year on higher interest margin

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)