Columbia Financial Reports $8.9 Million Net Income in Q1 2025, Significant Recovery from Prior Year

Columbia Financial, Inc. reported a net income of $8.9 million for the first quarter of 2025, a significant recovery from a net loss of $1.2 million in the same period last year. This turnaround was primarily driven by an increase in net interest income, which rose by $8.1 million to $50.3 million, reflecting a 19.3% increase year-over-year. The company also benefited from a decrease in the provision for credit losses, which fell to $2.9 million from $5.3 million, and a reduction in non-interest expenses, which decreased by $1.8 million to $43.8 million. However, income tax expenses increased to $3.1 million, up from a tax benefit of $129,000 in the prior year.

Total assets for Columbia Financial increased by $132.4 million, or 1.3%, to $10.6 billion as of March 31, 2025, compared to $10.5 billion at the end of 2024. This growth was primarily attributed to a $108.3 million increase in net loans receivable, which reached $8.0 billion, and a $51.4 million rise in debt securities available for sale, totaling $1.1 billion. The increase in loans was driven by growth in multifamily and commercial real estate loans, which rose by $107.2 million and $89.5 million, respectively. The allowance for credit losses also increased to $62.0 million, reflecting the growth in the loan portfolio.

On the liabilities side, total liabilities rose by $112.4 million, or 1.2%, to $9.5 billion, primarily due to a $98.8 million increase in total deposits, which reached $8.2 billion. The increase in deposits was driven by growth in non-interest-bearing demand deposits and money market accounts. Borrowings also increased by $27.0 million, or 2.5%, reflecting a net increase in short-term borrowings. Total stockholders' equity rose by $20.0 million, or 1.8%, to $1.1 billion, supported by the net income and an increase in other comprehensive income.

Columbia Financial's operational metrics showed a positive trend, with the net interest margin increasing to 2.11% from 1.75% year-over-year. The average yield on loans increased to 4.89%, while the average yield on securities rose to 3.45%. The company’s non-performing loans increased to $24.9 million, or 0.31% of total gross loans, compared to $21.7 million, or 0.28%, at the end of 2024. The increase in non-performing loans was attributed to a rise in non-performing construction and one-to-four family real estate loans.

Looking ahead, Columbia Financial remains focused on maintaining its strong liquidity and capital positions, with no outstanding borrowings from the Federal Reserve Discount Window as of March 31, 2025. The company has access to approximately $2.8 billion in funding sources, which it believes exceeds any potential liquidity needs. The management continues to monitor economic conditions and market trends to navigate potential risks and capitalize on growth opportunities in the future.