Columbia Financial Q3 2026 profit falls to $5.2M
The July Northfield acquisition carried a $580.3 million transaction value, and the conversion generated $1.7 billion in gross proceeds.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
10-Q
Columbia Financial, Inc. (CLBK) reported third-quarter net interest income of $114.4 million, compared with $57.4 million a year earlier, while net income was $5.2 million versus $14.9 million and diluted earnings per share were $0.02 versus $0.07. Non-interest income was a $13.9 million loss, including a $40.8 million securities transaction loss and a $25.7 million bargain purchase gain; merger-related expenses were $30.6 million.
On July 20, 2026, the company completed its second-step conversion, selling 167,236,353 shares at $10.00 each for gross proceeds of $1.7 billion, and completed its acquisition of Northfield Bancorp, Inc. for an aggregate transaction value of $580.3 million. Northfield consideration comprised approximately 70% company stock, or 40,720,930 shares, and approximately 30% cash, or $174.1 million. Nine-month operating cash flow was $72.4 million, compared with $44.0 million. Total assets were $17.6 billion as of September 30, 2026, versus $11.0 billion as of December 31, 2025.
2 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter net interest income: $114.4 million, versus $57.4 million a year earlier.
- Minor pointNine-month operating cash flow: $72.4 million, versus $44.0 million.
Negative
- Moderate pointThird-quarter net income: $5.2 million, versus $14.9 million a year earlier.
Filing Explained
As of November 5, 269,547,962 common shares were outstanding, establishing Columbia Financial’s current ownership base after the completed share issuances.
This quarterly filing records the July 20 conversion and Northfield acquisition as completed; the stock sale and stock portion of the merger consideration enlarged Columbia Financial’s common-share base. Issuing additional shares increases total share count and reduces an existing holder’s percentage ownership, absent offsetting changes. As of November 5, the company reported 269,547,962 common shares outstanding.
Approximately
The
Key Figures
Net interest income: $114.4 million
Net income: $5.2 million
Diluted earnings per share: $0.02
+4 more
7 metrics
Net interest income
$114.4 million
Three months ended September 30, 2026; $57.4 million in 2025
Net income
$5.2 million
Three months ended September 30, 2026; $14.9 million in 2025
Diluted earnings per share
$0.02
Three months ended September 30, 2026; $0.07 in 2025
Net cash provided by operating activities
$72.4 million
Nine months ended September 30, 2026; $44.0 million in 2025
Shares sold in second-step conversion
167,236,353 shares
Completed July 20, 2026, at $10.00 per share
Gross proceeds from second-step conversion
$1.7 billion
Completed July 20, 2026
Northfield aggregate transaction value
$580.3 million
Acquisition completed July 20, 2026
Key Terms
second-step conversion, bargain purchase gain, purchased credit deteriorated (PCD) loans, CECL methodology
4 terms
second-step conversion financial
"completion of the second-step conversion of the Bank"
A second-step conversion is a follow-up corporate transaction used after a bidder gains control of a company—typically converting or merging the remaining public shares into the buyer’s ownership so the company becomes wholly owned. Think of it as the final sweep to collect leftover pieces after a majority purchase; it matters to investors because it determines whether minority shareholders receive the same price, get cashed out, or retain any legal rights like appraisal, and can affect liquidity and value realization.
bargain purchase gain financial
"recognition of a bargain purchase gain of $25.7 million"
A bargain purchase gain happens when a buyer acquires another company's assets for less than those assets' estimated fair value, producing an immediate accounting profit for the buyer. For investors, it matters because that one-time gain boosts the acquirer's reported earnings and can signal a very favorable deal — like finding a valuable item at a steep discount — but it may also prompt scrutiny about whether asset values or the deal terms were estimated correctly.
purchased credit deteriorated (PCD) loans financial
"Purchased credit deteriorated ("PCD") loans"
CECL methodology financial
"expected loss methodology, referred to as the "CECL" methodology"
CECL methodology is an accounting approach that requires lenders and investors to estimate and record the lifetime expected credit losses on loans and other financial assets at the time they are acquired or originated. It matters because the size of those forward-looking loss estimates changes a company’s loan-loss reserves, which directly affects reported earnings, regulatory capital and how investors judge credit risk — similar to setting aside a rainy-day fund based on the forecast of future storms.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did CLBK report in third-quarter 2026 earnings?
CLBK reported net income of $5.2 million, diluted earnings per share of $0.02 and net interest income of $114.4 million for the three months ended September 30, 2026, compared with $14.9 million, $0.07 and $57.4 million, respectively, a year earlier.
What were the terms of CLBK's Northfield acquisition?
Columbia Financial completed the acquisition on July 20, 2026, at an aggregate transaction value of $580.3 million. Consideration was approximately 70% company stock, or 40,720,930 shares, and approximately 30% cash, or $174.1 million.
AI-generated analysis. How Rhea-AI works. Not financial advice.
See more from StockTitan in Google Search and AI answers.
Adds StockTitan as a preferred source · opens Google
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one)
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended September 30, 2026
or
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
Commission File Number 001-43410
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | ||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
(800 ) 522-4167
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.
☒ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
☒ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act:
| Large accelerated filer | ☐ | ☒ | Smaller reporting company | ||||||||||||||
| Non-accelerated filer | ☐ | Emerging growth company | |||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
As of November 5, 2026, there were 269,547,962 shares issued and outstanding of the Registrant's common stock, par value $0.01 per share.
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Index to Form 10-Q
| Item Number | Page Number | |||||||
| PART I. | Financial Information | |||||||
| Item 1. | Financial Statements | |||||||
Consolidated Statements of Financial Condition as of September 30, 2026 (Unaudited) and December 31, 2025 | 2 | |||||||
Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2026 and 2025 (Unaudited) | 3 | |||||||
Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2026 and 2025 (Unaudited) | 4 | |||||||
Consolidated Statements of Changes in Stockholders' Equity for the Three and Nine Months Ended September 30, 2026 and 2025 (Unaudited) | 5 | |||||||
Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2026 and 2025 (Unaudited) | 9 | |||||||
Notes to Unaudited Consolidated Financial Statements | 11 | |||||||
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 65 | ||||||
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 72 | ||||||
| Item 4. | Controls and Procedures | 76 | ||||||
| PART II. | Other Information | |||||||
Item 1. Legal Proceedings | 77 | |||||||
Item 1A. Risk Factors | 77 | |||||||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 77 | |||||||
Item 3. Defaults Upon Senior Securities | 77 | |||||||
Item 4. Mine Safety Disclosures | 77 | |||||||
Item 5. Other Information | 77 | |||||||
Item 6. Exhibits | 77 | |||||||
Exhibit Index | 78 | |||||||
SIGNATURES | 79 | |||||||
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Financial Condition
(In thousands, except share and per share data)
| September 30, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
Assets | (Unaudited) | ||||||||||
| Cash and due from banks | $ | $ | |||||||||
| Short-term investments | |||||||||||
| Total cash and cash equivalents | |||||||||||
| Debt securities available for sale, at fair value | |||||||||||
Debt securities held to maturity, at amortized cost (fair value of $ | |||||||||||
| Equity securities, at fair value | |||||||||||
| Federal Home Loan Bank and Federal Reserve Bank stock, at cost | |||||||||||
| Loans held-for-sale, at fair value | |||||||||||
| Loans receivable | |||||||||||
| Less: allowance for credit losses | |||||||||||
| Loans receivable, net | |||||||||||
| Accrued interest receivable | |||||||||||
| Office properties and equipment, net | |||||||||||
| Bank-owned life insurance ("BOLI") | |||||||||||
| Goodwill and intangible assets | |||||||||||
| Other assets | |||||||||||
| Total assets | $ | $ | |||||||||
Liabilities and Stockholders' Equity | |||||||||||
| Liabilities: | |||||||||||
| Deposits | $ | $ | |||||||||
| Borrowings | |||||||||||
| Advance payments by borrowers for taxes and insurance | |||||||||||
| Accrued expenses and other liabilities | |||||||||||
| Total liabilities | |||||||||||
| Stockholders' equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
| Additional paid-in capital | |||||||||||
| Retained earnings | |||||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock, at cost; | ( | ||||||||||
| Common stock held by the Employee Stock Ownership Plan | ( | ( | |||||||||
| Stock held by Rabbi Trust | ( | ( | |||||||||
| Deferred compensation obligations | |||||||||||
| Total stockholders' equity | |||||||||||
| Total liabilities and stockholders' equity | $ | $ | |||||||||
| See accompanying notes to unaudited consolidated financial statements. | |||||||||||
2
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Interest income: | (Unaudited) | ||||||||||||||||||||||
Loans receivable | $ | $ | $ | $ | |||||||||||||||||||
Debt securities available for sale and equity securities | |||||||||||||||||||||||
Debt securities held to maturity | |||||||||||||||||||||||
Federal funds and interest-earning deposits | |||||||||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stock dividends | |||||||||||||||||||||||
Total interest income | |||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||
Deposits | |||||||||||||||||||||||
Borrowings | |||||||||||||||||||||||
Total interest expense | |||||||||||||||||||||||
Net interest income | |||||||||||||||||||||||
Provision for credit losses | |||||||||||||||||||||||
Net interest income after provision for credit losses | |||||||||||||||||||||||
Non-interest (loss) income: | |||||||||||||||||||||||
Demand deposit account fees | |||||||||||||||||||||||
Bank-owned life insurance | |||||||||||||||||||||||
Title insurance fees | |||||||||||||||||||||||
Loan fees and service charges | |||||||||||||||||||||||
(Loss) gain on securities transactions | ( | ( | |||||||||||||||||||||
Change in fair value of equity securities | ( | ( | |||||||||||||||||||||
(Loss) gain on sale of loans | ( | ( | |||||||||||||||||||||
| Bargain purchase gain | |||||||||||||||||||||||
| (Loss) gain on sale of other real estate owned | ( | ( | |||||||||||||||||||||
Other non-interest income | |||||||||||||||||||||||
Total non-interest (loss) income | ( | ||||||||||||||||||||||
Non-interest expense: | |||||||||||||||||||||||
Compensation and employee benefits | |||||||||||||||||||||||
Occupancy | |||||||||||||||||||||||
Federal deposit insurance premiums | |||||||||||||||||||||||
Advertising | |||||||||||||||||||||||
Professional fees | |||||||||||||||||||||||
Data processing and software expenses | |||||||||||||||||||||||
Merger-related expenses | |||||||||||||||||||||||
| Loss on extinguishment of debt | |||||||||||||||||||||||
| Amortization of intangible assets | |||||||||||||||||||||||
Other non-interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
Total non-interest expense | |||||||||||||||||||||||
Income before income tax expense | |||||||||||||||||||||||
| Income tax (benefit) expense | ( | ||||||||||||||||||||||
Net Income | $ | $ | $ | $ | |||||||||||||||||||
| Earnings per share-basic | $ | $ | $ | $ | |||||||||||||||||||
| Earnings per share-diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average shares outstanding-basic (1) | |||||||||||||||||||||||
Weighted average shares outstanding-diluted (1) | |||||||||||||||||||||||
(1) Share and per share amounts related to periods prior to the date of conversion (July 20, 2026) have been adjusted to give retroactive recognition to the | |||||||||||||||||||||||
| See accompanying notes to unaudited consolidated financial statements. | |||||||||||||||||||||||
3
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income (Loss)
(In thousands)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||
| Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
| Unrealized gain on debt securities available for sale | |||||||||||||||||||||||
| Accretion of unrealized gain (loss) on debt securities reclassified as held to maturity | ( | ||||||||||||||||||||||
| Reclassification adjustment for (loss) gain on debt securities available for sale included in net income | ( | ( | |||||||||||||||||||||
| ( | ( | ||||||||||||||||||||||
| Derivatives, net of tax: | |||||||||||||||||||||||
| Unrealized gain (loss) on swap contracts accounted for as cash flow hedges | ( | ( | |||||||||||||||||||||
| ( | ( | ||||||||||||||||||||||
| Employee benefit plans, net of tax: | |||||||||||||||||||||||
| Amortization of prior service cost included in net income | ( | ( | ( | ( | |||||||||||||||||||
| Reclassification adjustment of actuarial net gain included in net income | |||||||||||||||||||||||
| Change in funded status of retirement obligations | ( | ||||||||||||||||||||||
| ( | |||||||||||||||||||||||
| Total other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
| Total comprehensive income (loss), net of tax | $ | ( | $ | $ | $ | ||||||||||||||||||
| See accompanying notes to unaudited consolidated financial statements. | |||||||||||||||||||||||
4
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Changes in Stockholders' Equity (Unaudited)
Three Months Ended September 30, 2026 and 2025 (In thousands)
| Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Common Stock Held by the Employee Stock Ownership Plan | Stock Held by Rabbi Trust | Deferred Compensation Obligations | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2026 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Stock based compensation | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options ( | — | ( | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Restricted stock forfeitures ( | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Employee Stock Ownership Plan shares committed to be released | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Funding of deferred compensation obligations | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Corporate reorganization: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Merger of Northfield Bancorp, Inc. | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Exchange of common stock | ( | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Dissolution of Columbia Bank, MHC | ( | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Treasury stock retired | ( | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Proceeds of stock offering, net of costs | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Purchase of common stock by ESOP | — | — | — | ( | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2026 | $ | $ | $ | $ | ( | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||
Share and per share amounts related to periods prior to the date of conversion (July 20, 2026) have been adjusted to give retroactive recognition to the | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| See accompanying notes to unaudited consolidated financial statements. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
5
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (continued)
Three Months Ended September 30, 2026 and 2025 (In thousands)
| Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Common Stock Held by the Employee Stock Ownership Plan | Stock Held by Rabbi Trust | Deferred Compensation Obligations | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Stock based compensation | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock ( | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Excise tax benefit on net stock repurchases | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Employee Stock Ownership Plan shares committed to be released | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Funding of deferred compensation obligations | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2025 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Share and per share amounts related to periods prior to the date of conversion (July 20, 2026) have been adjusted to give retroactive recognition to the | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| See accompanying notes to unaudited consolidated financial statements. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
6
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (continued)
Nine Months Ended September 30, 2026 and 2025 (In thousands)
| Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Common Stock Held by the Employee Stock Ownership Plan | Stock Held by Rabbi Trust | Deferred Compensation Obligations | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock allocated to restricted stock award grants ( | ( | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Stock based compensation | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options ( | — | ( | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Restricted stock forfeitures ( | — | — | — | ( | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Repurchase shares for taxes ( | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Excise tax benefit on net stock repurchases | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
| Employee Stock Ownership Plan shares committed to be released | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Funding of deferred compensation obligations | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Corporate reorganization: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Merger of Northfield Bancorp, Inc. | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Dissolution of Columbia Bank MHC | ( | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Exchange of common stock | ( | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Treasury stock retired | ( | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Proceeds of stock offering, net of costs | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Purchase of common stock by ESOP | — | — | — | ( | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2026 | $ | $ | $ | $ | ( | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||
Share and per share amounts related to periods prior to the date of conversion (July 20, 2026) have been adjusted to give retroactive recognition to the | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| See accompanying notes to unaudited consolidated financial statements. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
7
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (continued)
Nine Months Ended September 30, 2026 and 2025 (In thousands)
| Common Stock | Additional Paid-in-Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Common Stock Held by the Employee Stock Ownership Plan | Stock Held by Rabbi Trust | Deferred Compensation Obligations | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock allocated to restricted stock award grants ( | ( | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Stock based compensation | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock ( | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Restricted stock forfeitures ( | — | — | — | ( | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Repurchase shares for taxes ( | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Excise tax benefit on net stock repurchases | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Employee Stock Ownership Plan shares committed to be released | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Funding of deferred compensation obligations | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2025 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Share and per share amounts related to periods prior to the date of conversion (July 20, 2026) have been adjusted to give retroactive recognition to the | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| See accompanying notes to unaudited consolidated financial statements. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
8
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (In thousands, unaudited) | |||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | $ | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Amortization of deferred loan costs, fees and purchased premiums and discounts | ( | ||||||||||
| Net accretion of premiums and discounts on securities | ( | ( | |||||||||
| Net amortization of mortgage servicing rights and other intangible assets | |||||||||||
| Amortization of core deposit intangibles | |||||||||||
| Depreciation and amortization of office properties and equipment | |||||||||||
| Amortization of operating lease right-of-use assets | |||||||||||
| Loss on extinguishment of debt | |||||||||||
| Provision for credit losses | |||||||||||
| Loss (gain) on securities transactions | ( | ||||||||||
| Change in fair value of equity securities | ( | ||||||||||
| Gain on securitizations | ( | ||||||||||
| Loss (gain) on sale of loans, net | ( | ||||||||||
| Bargain purchase gain | ( | ||||||||||
| Loss on disposal of office properties and equipment, net | |||||||||||
| Increase in accrued interest receivable | ( | ( | |||||||||
| Loss (gain) on sale of other real estate owned | ( | ||||||||||
| (Increase) decrease in other assets | ( | ||||||||||
| Increase (decrease) in accrued expenses and other liabilities | ( | ||||||||||
| Income on bank-owned life insurance | ( | ( | |||||||||
| Employee stock ownership plan expense | |||||||||||
| Stock based compensation | |||||||||||
| Decrease (increase) in deferred compensation obligations under Rabbi Trust | ( | ||||||||||
| Net cash provided by operating activities | |||||||||||
| Cash flows used in investing activities: | |||||||||||
| Proceeds from sales of debt securities available for sale | |||||||||||
| Proceeds from paydowns/maturities/calls of debt securities available for sale | |||||||||||
| Proceeds from paydowns/maturities/calls of debt securities held to maturity | |||||||||||
| Purchases of debt securities available for sale | ( | ( | |||||||||
| Purchases of debt securities held to maturity | ( | ( | |||||||||
| Proceeds from sales of loans held-for-sale | |||||||||||
| Purchases of loans receivable | ( | ||||||||||
| Net increase in loans receivable | ( | ( | |||||||||
| Proceeds from bank-owned life insurance death benefit | |||||||||||
| Proceeds from redemptions of Federal Home Loan Bank stock | |||||||||||
| Purchases of Federal Home Loan Bank and Federal Reserve Bank stock | ( | ( | |||||||||
| Proceeds from sales of office properties and equipment | |||||||||||
| Additions to office properties and equipment | ( | ( | |||||||||
| Merger consideration Northfield Bancorp, Inc. | ( | ||||||||||
| Net cash acquired in acquisition | |||||||||||
| Proceeds from sales of other real estate owned | |||||||||||
| Purchase of insurance agency book of business | ( | ||||||||||
| Net cash used in investing activities | $ | ( | $ | ( | |||||||
See accompanying notes to unaudited consolidated financial statements. | |||||||||||
9
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows (continued)
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (In thousands, unaudited) | |||||||||||
| Cash flows from financing activities: | |||||||||||
| Net increase in deposits | $ | $ | |||||||||
| Proceeds from long-term borrowings | |||||||||||
| Payments on long-term borrowings | ( | ( | |||||||||
| Net (decrease) increase in short-term borrowings | ( | ||||||||||
| Increase in advance payments by borrowers for taxes and insurance | ( | ( | |||||||||
| Dividends paid | ( | ||||||||||
| Net proceeds from sale of common stock | |||||||||||
| Purchase of common stock for ESOP | ( | ||||||||||
| Exercise of stock options | ( | ||||||||||
| Purchase of treasury stock | ( | ||||||||||
| Repurchase of shares for taxes | ( | ( | |||||||||
| Net cash provided by financing activities | $ | $ | |||||||||
| Net increase (decrease) in cash and cash equivalents | $ | $ | ( | ||||||||
| Cash and cash equivalents at beginning of year | |||||||||||
| Cash and cash equivalents at end of period | $ | $ | |||||||||
| Cash paid during the period for: | |||||||||||
| Interest on deposits and borrowings | $ | $ | |||||||||
| Income tax payments, net of refunds | $ | $ | |||||||||
| Non-cash investing and financing activities: | |||||||||||
| Transfer of loans receivable to loans held-for-sale | $ | $ | |||||||||
| Transfer of loans receivable to other real estate owned | $ | $ | |||||||||
| Securitization of loans | $ | $ | |||||||||
| Excise tax (benefit) on net stock repurchases | $ | $ | |||||||||
| Deposits utilized to purchase common stock | $ | $ | |||||||||
| Acquisition of right-of-use assets | $ | $ | |||||||||
| Acquisition: | |||||||||||
| Non-cash assets acquired: | |||||||||||
| Debt securities available for sale | $ | $ | |||||||||
| Equity securities | |||||||||||
| Federal Home Loan Bank stock | |||||||||||
| Loans receivable | |||||||||||
| Accrued interest receivable | |||||||||||
| Office properties and equipment, net | |||||||||||
| Core deposit intangibles | |||||||||||
| Bank-owned life insurance | |||||||||||
| Other assets | |||||||||||
| Total non-cash assets acquired | $ | $ | |||||||||
| Liabilities assumed: | |||||||||||
| Deposits | $ | $ | |||||||||
| Borrowings | |||||||||||
| Advance payments by borrowers for taxes and insurance | |||||||||||
| Accrued expenses and other liabilities | |||||||||||
| Total liabilities assumed | $ | $ | |||||||||
| Net assets acquired | $ | $ | |||||||||
| Net cash and cash equivalents acquired in acquisition | $ | $ | |||||||||
| See accompanying notes to unaudited consolidated financial statements. | |||||||||||
10
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
1.Basis of Financial Statement Presentation
Columbia Financial, Inc. (the “Company”) is a Maryland corporation that was incorporated in January 2026 as the successor to Columbia Financial, Inc., a Delaware corporation (“Columbia Financial-Delaware”) and the former mid-tier stock holding company for Columbia Bank ("the Bank") or ("Columbia"), upon completion of the second-step conversion of the Bank from the two-tier mutual holding company structure to the stock holding company structure. Columbia Bank MHC was the former mutual holding company for Columbia Financial-Delaware prior to completion of the second-step conversion. In conjunction with the second-step conversion, Columbia Bank MHC merged into Columbia Financial-Delaware (and ceased to exist), and Columbia Financial-Delaware merged into the Company, with the Company as the surviving entity. The second-step conversion was completed on July 20, 2026, at which time the Company sold, for gross proceeds of $1.7 billion, a total of 167,236,353 shares of common stock at $10.00 per share, including 5,017,091 shares purchased by the Bank’s employee stock ownership plan (the "ESOP"). As part of the second-step conversion, each of the existing outstanding shares of Columbia Financial-Delaware common stock owned by persons other than Columbia Bank MHC were converted into 2.2000 shares of Company common stock, and all historical share and per share information included in this report has been revised to reflect this exchange ratio.
The Company recognized direct stock offering costs of $39.5 million in conjunction with the transaction which reduced the net proceeds credited to capital. After adjusting for transaction costs and the value of the shares issued to the Bank's ESOP, the Company recognized a net increase in equity capital of $1.6 billion, of which $816.4 million was contributed to the Bank by the Company as additional investment in the Bank's common equity. Approximately $183.4 million of new capital proceeds were funded through withdrawals of existing customer deposits previously held at the Bank.
In addition, on July 20, 2026, the Company completed its acquisition of Northfield Bancorp, Inc. (“Northfield”). In connection with the completion of the Northfield acquisition, each share of Northfield common stock was converted into the right to receive either $14.25 in cash or 1.425 shares of Company common stock, or a combination thereof, subject to the elections made and proration procedures, for an aggregate transaction value of $580.3 million. The final aggregate merger consideration at closing was comprised of 70 % Company common stock and 30 % cash. Cash in lieu of fractional shares was paid at a rate of $10.00 per share.
Unless the context otherwise requires, references in this Quarterly Report on Form 10-Q to the “Company,” “we,” “us,” and “our” used for periods prior to the completion of the second-step conversion refer to Columbia Financial-Delaware and, for periods after the completion of the second-step conversion, to the Company, in each case including its consolidated subsidiaries.
In preparing the interim unaudited consolidated financial statements, management is required to make estimates, significant judgments and assumptions that affect the reported amounts of assets and liabilities as of the dates of the Consolidated Statements of Financial Condition and Consolidated Statements of Income for the periods presented. Actual results could differ from these judgments and estimates under different conditions, resulting in a change that could have a material impact on the carrying values of our assets and liabilities and our results of operations. Material estimates that involve significant judgments and assumptions that are particularly susceptible to change are the determination of the adequacy of the allowance for credit losses, evaluation of the need for valuation allowances on deferred tax assets, fair values of assets acquired and liabilities assumed in a business combination, and a determination of liabilities related to retirement and other post-retirement benefits. These estimates, significant judgments and assumptions are evaluated on an ongoing basis and are adjusted when facts and circumstances dictate.
The interim unaudited consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. The results of operations for the three and nine months ended September 30, 2026 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year or any other period.
11
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
2. Earnings per Share
Basic earnings per share ("EPS") is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. For purposes of calculating basic EPS, weighted average common shares outstanding excludes treasury stock, unallocated employee stock ownership plan shares that have not been committed for release and deferred compensation obligations required to be settled in shares of Company stock.
Diluted EPS is computed using the same method as basic EPS and reflects the potential dilution which could occur if stock options and unvested shares were exercised and converted into common stock. The potentially diluted shares would then be included in the weighted average number of shares outstanding for the period using the treasury stock method.
The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the three and nine months ended September 30, 2026 and 2025:
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||
| Shares: | |||||||||||||||||||||||
| Weighted average shares outstanding - basic | |||||||||||||||||||||||
| Weighted average diluted shares outstanding | |||||||||||||||||||||||
| Weighted average shares outstanding - diluted | |||||||||||||||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Basic | $ | $ | $ | $ | |||||||||||||||||||
| Diluted | $ | $ | $ | $ | |||||||||||||||||||
During the three and nine months ended September 30, 2026 and 2025, the average number of stock options which could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive totaled 6,581,012 and 9,035,448 and 6,953,497 and 8,896,599 , respectively.
3. Acquisition
Northfield Bank
On July 20, 2026, the Company completed its acquisition of Northfield, whereby each share of Northfield common stock was converted into the right to receive either $14.25 in cash or 1.425 shares of Company common stock, or a combination thereof, subject to the elections made and proration procedures, for an aggregate transaction value of $580.3 million. The final aggregate merger consideration at closing was comprised of approximately 70 % of Company common stock, or 40,720,930 shares, and approximately 30 % cash, or $174.1 million. Cash in lieu of fractional shares was paid at a rate of $10.00 per share. Northfield's results of operations from July 21, 2026 through September 30, 2026 are included in the Company's consolidated results for the three and nine months ended September 30, 2026, but are not included in the Company's results of operations for the corresponding prior year periods.
Merger-related expenses are recorded in the Consolidated Statements of Income and are expensed as incurred. Direct acquisition and other charges incurred in connection with the Northfield acquisition totaled $30.6 million and $33.3 million during the three and nine months ended September 30, 2026.
12
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
3. Acquisition (continued)
The following table sets forth the assets acquired and liabilities assumed in the Northfield acquisition, at their estimated fair values as of the closing date of the transaction:
| July 20, 2026 | |||||
| Assets acquired: | (in thousands) | ||||
| Cash and cash equivalents | $ | ||||
| Debt securities available for sale | |||||
| Equity securities | |||||
| Federal Home Loan Bank and Federal Reserve Bank stock | |||||
| Loans receivable | |||||
| Accrued interest receivable | |||||
| Office properties and equipment, net | |||||
| Bank-owned life insurance | |||||
| Core deposit intangibles | |||||
| Other assets | |||||
| Total assets acquired | $ | ||||
| Liabilities assumed: | |||||
| Deposits | $ | ||||
| Borrowings | |||||
| Advance payments by borrowers for taxes and insurance | |||||
| Accrued expenses and other liabilities | |||||
| Total liabilities assumed | $ | ||||
| Net assets acquired | $ | ||||
| Fair market value of stock issued and cash consideration paid | |||||
| Bargain purchase gain | $ | ||||
The assets acquired and liabilities assumed have been accounted for under the acquisition method of accounting. As the purchase price for Northfield was less than the fair value of the net assets acquired, the transaction resulted in the recognition of a bargain purchase gain of $25.7 million which is included in non-interest income in Consolidated Statements of Income and arose primarily from transaction-specific market factors. The determination of the fair value of assets acquired and liabilities assumed required management to make estimates about discount rates, future expected cash flows, market conditions, and other future events that are subjective in nature and subject to change for up to one year after the closing date of the acquisition as additional information becomes available, and the measurement period ends July 20, 2027. Changes to the acquisition date fair values of assets acquired and liabilities assumed during the measurement period may result in adjustments to the bargain purchase gain. During the period from January 1, 2026 to September 30, 2026, there were no measurement period adjustments made to the assets acquired or liabilities assumed.
Fair Value Measurement of Assets Acquired and Liabilities Assumed
Described below are the methods used to determine the fair values of the significant assets acquired and liabilities assumed in the Northfield acquisition:
Cash and cash equivalents. The estimated fair values of cash and cash equivalents approximate their stated face amounts, as these financial instruments are either due on demand or have short-term maturities.
13
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
3. Acquisition (continued)
Debt securities available for sale. The estimated fair values of the acquired debt securities available for sale were determined principally on the basis of market sale prices, and to a lesser extent, by utilizing Level 2 and Level 3 inputs. With respect to fixed income instruments for which values were not derived from market sales prices, such prices were obtained from an independent pricing service where available, or from dealer market participants with whom the Company has historically transacted with for both purchases and sales of securities. These prices are derived from market quotations and matrix pricing. These fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, and the bond's terms and conditions, among other things. Management reviewed the data and assumptions used in pricing securities by its third-party provider to ensure the highest level of significant inputs are derived from market observable data.
Loans held-for-sale. The acquired portfolio was valued based on estimated sales price, net of estimated costs to sell, from an observable transaction completed shortly after the acquisition date, as this was determined to be the best indicator of fair value. The increase in market interest rates which occurred between the acquisition date and the sale date resulted in a loss which was recorded in the Consolidated Statements of Income during the quarter ended September 30, 2026.
Loans receivable. The acquired loan portfolio was segregated into pools for valuation purposes primarily based on loan type, non-accrual status, and credit risk rating. The estimated fair values were computed by discounting the expected cash flows from the respective pools. Cash flows were estimated by using valuation models that incorporated estimates of current key assumptions such as prepayment speeds, default rates, and loss severity rates. The process included: (1) projecting monthly principal and/or interest cash flows based on the contractual terms of the loans, including both maturity and contractual amortization; (2) adjusting projected cash flows for expected losses and prepayments, where appropriate; (3) developing a discount rate based on the relative risk of the cash flows, considering the loan type, liquidity risk, the maturity of the loans, servicing costs, and a required return on capital; and (4) discounting the projected cash flows to a present value, to arrive at the calculated value of the loans.
The methods used to estimate the fair values of loans are extremely sensitive to the assumptions used. While management attempted to use assumptions and estimates that best reflected the acquired loan portfolios and current market conditions, a greater degree of subjectivity is inherent in the values than in those determined in active markets.
The following table presents the purchased seasoned loans ("PSL") and purchased credit deteriorated ("PCD") on loans held for investment excluding loans held-for-sale:
July 20, 2026 (1) | |||||||||||
| PSL | PCD | ||||||||||
| (In thousands) | |||||||||||
Carrying value of loans at acquisition (2) | $ | $ | |||||||||
| Initial allowance for credit losses on acquired loans | ( | $ | ( | ||||||||
| Non-credit discount on acquired loans | ( | ( | |||||||||
| Fair value of acquired loans | $ | $ | |||||||||
(1) Excludes loans at a day one fair value of $ | |||||||||||
| (2) Represents gross contractual balances. | |||||||||||
Upon completion of the acquisition, the Company sold $54.1 million of multifamily loans that were classified as loans held-for-sale, with servicing released. Held-for-sale loans were valued based on the executed sales price, net of estimated costs to sell, derived from an observable market transaction completed shortly after the acquisition date. Management concluded that the transaction price represented the best evidence of fair value, as no significant changes in market conditions or the underlying loan characteristics occurred between the acquisition date and the sale date.
Office properties and equipment, net. The fair value of land and buildings was estimated using current appraisals. Acquired equipment was not material. Buildings are generally amortized over 40 years. Equipment is amortized or depreciated over their estimated useful lives usually ranging from three years to seven years .
Bank-owned life insurance. Bank-owned life insurance is accounted for using the cash surrender value method and is recorded at its net realizable value.
14
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
3. Acquisition (continued)
Core deposit intangibles. Core deposit intangibles ("CDI") are the measure of the value of non-maturity deposits in a business combination. The fair value of the CDI was calculated utilizing the cost savings approach, the expected cost savings attributable to the core deposits funding relative to an alternative source of funding, using a discounted cash flow present value methodology. Key inputs and assumptions utilized in the discounted cash flow present value methodology include core deposit balances and rates paid, the cost of an additional funding source, the aggregate life of deposits and truncation points, non-interest deposit costs, and the immediate deposit outflow assumption. The Company recorded a CDI of $76.2 million which is being amortized over ten years using an accelerated amortization method.
Deposits. The fair values of deposit liabilities with no stated maturity (i.e., non-interest-bearing and interest-bearing demand deposit accounts, money market and savings and club deposits) are equal to the carrying amounts payable on demand. The fair value of certificates of deposit represents contractual cash flows, discounted to present value using interest rates currently offered on deposits with similar characteristics and remaining maturities.
Borrowings. The fair values of borrowings consisting of FHLB advances were estimated by discounting future cash flows using market discount rates for borrowings with similar characteristics, terms and remaining maturities. The fair value of other borrowings recognized in the Northfield acquisition, which included subordinated notes and debentures, were measured at the acquisition date using a dealer market quote. The Company prepaid $195.6 million in borrowings resulting in a $196,000 loss on extinguishment of debt.
Supplemental Pro Forma Financial Information
The following table presents information regarding the Northfield operations included in the Consolidated Statements of Income from the date of acquisition July 21, 2026 through September 30, 2026. In addition, the table provides unaudited condensed pro forma financial information assuming the merger had been completed as of January 1, 2026 for the nine months ended September 30, 2026.The table below has been prepared for comparative purposes only and it not necessarily indicative of the actual results that would have been attained had the acquisition occurred as of the beginning of the periods presented, nor is it indicative of future results.
The unaudited pro forma information does not reflect management's estimates of any revenue- enhancing opportunities or anticipated cost savings that may be realized as a result of the integration and consolidation of Northfield's operations. The pro forma information presented gives effect to estimated purchase accounting fair value adjustments, merger-related expenses of $41.1 million (which had an estimated tax-adjusted earnings impact of $0.12 ) assumed to have been incurred in 2026 and therefore excluded from 2026 results, the removal of Northfield's 2026 goodwill impairment charge, and related income tax effects, including the application of the combined entity's effective tax rate. Average diluted shares outstanding include shares issued in connection with the Northfield acquisition.
| Northfield Actual from July 21, 2026 to September 30, 2026 | Pro Forma For the Nine Months Ended September 30, 2026 | Pro Forma For the Nine Months Ended September 30, 2025 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Net interest income | $ | $ | $ | ||||||||||||||
| Credit loss expense | |||||||||||||||||
| Non-interest income | |||||||||||||||||
| Non-interest expense | |||||||||||||||||
| Income before income taxes | |||||||||||||||||
| Provision for income taxes | |||||||||||||||||
| Net income | $ | $ | $ | ||||||||||||||
| Net income available to common stockholders | $ | $ | $ | ||||||||||||||
| Average diluted shares outstanding | |||||||||||||||||
| Fully diluted earnings per share | $ | $ | |||||||||||||||
15
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
4. Stock Repurchase Program
On September 8, 2025, the Company announced that its Board of Directors authorized the Company's seventh stock repurchase program to acquire up to 1,800,000 shares, or approximately 1.7 % of the Company's then issued and outstanding common stock. During the three and nine months ended September 30, 2026, there were no 183,864 2.8 15.43
5. Summary of Significant Accounting Policies
Recent Accounting Pronouncements
Accounting Pronouncements Adopted
In November 2025, the FASB issued ASU 2025-08, Financial Instruments-Credit Losses (Topic 326): Purchased Loans, which amends the guidance in ASC 326 on the accounting for certain purchased loans. Under the ASU, entities must account for acquired loans (excluding credit cards) that meet certain criteria at acquisition (“purchased seasoned loans”) by recognizing them at their purchase price plus an allowance for expected credit losses (i.e., the so-called gross-up approach). The ASU’s amendments align the accounting for purchased seasoned loans with the treatment of financial assets purchased with more-than-insignificant credit deterioration since origination (“PCD assets”). The amendments apply prospectively and will be effective for fiscal periods beginning after December 15, 2026 (and interim periods within) with early adoption permitted. The Company previously adopted this guidance as of January 1, 2026 and upon initial adoption, this guidance did not have a significant impact on the Company's consolidated financial statements. Subsequent to the initial adoption, in conjunction with the acquisition of Northfield on July 20, 2026, an additional $47.1 million allowance was recorded for expected credit losses on acquired loans.
Accounting Pronouncements Not Yet Adopted
In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Topic ("ASU") 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), which requires disaggregated information about certain income statement line items in a tabular format in the notes to the consolidated financial statements. This update is effective for financial statements issued for fiscal years beginning after December 15, 2026, with early adoption in the interim period permitted. The Company is currently evaluating the impact of the adoption of this ASU on its consolidated financial statements. As it is only disclosure related, this ASU is not expected to have a significant impact on the consolidated financial statements.
In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements, which amends the existing requirement that cash flow hedges of groups of individual forecasted transactions designated with a single derivative as the hedging instrument share the same risk exposure. Instead, the amendments require such groups to have a similar risk exposure and clarify that the quantitative threshold for assessing similar risk exposure is consistent with the highly effective threshold used in evaluating hedge effectiveness. These amendments also provide targeted improvements and clarifications to certain other aspects of hedge accounting guidance. This update is effective for financial statements issued for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years, with early adoption permitted. The adoption of this ASU is not expected to have a significant impact on the Company's consolidated financial statements.
16
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
6. Debt Securities Available for Sale
| September 30, 2026 | |||||||||||||||||||||||||||||
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Fair Value | ||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||
| U.S. government and agency obligations | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
| Mortgage-backed securities and collateralized mortgage obligations | ( | ||||||||||||||||||||||||||||
| Municipal obligations | ( | ||||||||||||||||||||||||||||
| Corporate debt securities | ( | ||||||||||||||||||||||||||||
| $ | $ | $ | ( | $ | |||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Fair Value | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| U.S. government and agency obligations | $ | $ | $ | $ | |||||||||||||||||||
| Mortgage-backed securities and collateralized mortgage obligations | ( | ||||||||||||||||||||||
| Municipal obligations | ( | ||||||||||||||||||||||
| Corporate debt securities | ( | ||||||||||||||||||||||
| $ | $ | $ | ( | $ | |||||||||||||||||||
The amortized cost and fair value of debt securities available for sale at September 30, 2026, by contractual final maturity, is shown below. Expected maturities may differ from contractual maturities due to prepayment or early call options exercised by the issuer.
17
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
6. Debt Securities Available for Sale (continued)
| September 30, 2026 | |||||||||||
| Amortized Cost | Fair Value | ||||||||||
| (In thousands) | |||||||||||
| One year or less | $ | $ | |||||||||
| More than one year to five years | |||||||||||
| More than five years to ten years | |||||||||||
| $ | $ | ||||||||||
| Mortgage-backed securities and collateralized mortgage obligations | |||||||||||
| $ | $ | ||||||||||
Mortgage-backed securities and collateralized mortgage obligations totaling $2.4 billion at amortized cost, and $2.3 billion at fair value, are not classified by maturity in the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.
During the three and nine months ended September 30, 2026, proceeds from the sales of debt securities available for sale totaled $864.4 no 40.8 643.3 million of debt securities available for sale acquired in the Northfield merger. During the three months ended September 30, 2026, there were calls of debt securities available for sale totaling $9.6 million, and maturities of debt securities available for sale totaling $10.0 million. During the nine months ended September 30, 2026, there were calls of debt securities available for sale totaling $15.9 million and maturities totaling $65.0 million.
During the nine months ended September 30, 2025, proceeds from the sale of debt securities available for sale totaled $15.7 million, resulting in gross gains of $336,000 and no gross losses. During the three months ended September 30, 2025, there were no sales of debt securities available for sale. There was one call of a debt security available for sale totaling $2.0 million and maturities totaling $10.0 million, during the three months ended September 30, 2025. During the nine months ended September 30, 2025, there were calls of debt securities available for sale totaling $2.8 million and maturities of debt securities available for sale totaling $38.5 million.
Debt securities available for sale having a carrying value of $446.7 million and $478.5 million, at September 30, 2026 and December 31, 2025, respectively, were pledged as security for public funds on deposit at the Bank as required and permitted by law, pledged for outstanding borrowings at the Federal Home Loan Bank, and pledged for potential borrowings at the Federal Reserve Bank of New York.
| September 30, 2026 | |||||||||||||||||||||||||||||||||||
| Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||
| Fair Value | Gross Unrealized (Losses) | Fair Value | Gross Unrealized (Losses) | Fair Value | Gross Unrealized (Losses) | ||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| U.S. government and agency obligations | $ | $ | ( | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||
| Mortgage-backed securities and collateralized mortgage obligations | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Municipal obligations | ( | ( | |||||||||||||||||||||||||||||||||
| Corporate debt securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
| $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
18
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
6. Debt Securities Available for Sale (continued)
| December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||
| Fair Value | Gross Unrealized (Losses) | Fair Value | Gross Unrealized (Losses) | Fair Value | Gross Unrealized (Losses) | ||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| Mortgage-backed securities and collateralized mortgage obligations | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
| Municipal obligations | ( | ( | |||||||||||||||||||||||||||||||||
| Corporate debt securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
| $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
The number of securities in an unrealized loss position at September 30, 2026 totaled 281 , compared with 128 at December 31, 2025. All temporarily impaired securities were deemed investment grade as of September 30, 2026 and December 31, 2025.
For available for sale securities, the Company assesses whether a loss is from credit or other factors and considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows is less than the amortized cost, a credit loss would be recorded through an allowance for credit losses, limited by the amount that the fair value is less than the amortized cost basis.
There was no
The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of debt securities available for sale. Accrued interest receivable on debt securities available for sale is reported as a component of accrued interest receivable on the Consolidated Statement of Financial Condition, which totaled $11.8 million and $5.2 million at September 30, 2026 and December 31, 2025, respectively, and is excluded from the estimate of credit losses.
7. Debt Securities Held to Maturity
| September 30, 2026 | |||||||||||||||||||||||||||||
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Allowance for Credit Losses | Fair Value | |||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||
| U.S. government and agency obligations | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
| Mortgage-backed securities and collateralized mortgage obligations | ( | ||||||||||||||||||||||||||||
| $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
19
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
7. Debt Securities Held to Maturity (continued)
| December 31, 2025 | |||||||||||||||||||||||||||||
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Allowance for Credit Losses | Fair Value | |||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||
| U.S. government and agency obligations | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
| Mortgage-backed securities and collateralized mortgage obligations | ( | ||||||||||||||||||||||||||||
| $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
The amortized cost and fair value of debt securities held to maturity at September 30, 2026, by contractual final maturity, is shown below. Expected maturities may differ from contractual maturities due to prepayment or early call options exercised by the issuer.
| September 30, 2026 | |||||||||||
| Amortized Cost | Fair Value | ||||||||||
| (In thousands) | |||||||||||
| More than one year to five years | $ | $ | |||||||||
| More than five years to ten years | |||||||||||
| Mortgage-backed securities and collateralized mortgage obligations | |||||||||||
| $ | $ | ||||||||||
Mortgage-backed securities and collateralized mortgage obligations totaling $882.2 million at amortized cost and $827.7 million at fair value at September 30, 2026, are not classified by maturity as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.
During the three and nine months ended September 30, 2026, there were no one maturity of a debt security held to maturity totaling $14.9 million. There were no sales, calls or maturities of debt securities held to maturity during the nine months ended September 30, 2025.
Debt securities held to maturity having a carrying value of $339.9 million and $242.2 million, at September 30, 2026 and December 31, 2025, respectively, were pledged as security for public funds on deposit at Columbia Bank as required and permitted by law, pledged for outstanding borrowings at the Federal Home Loan Bank, and pledged for potential borrowings at the Federal Reserve Bank of New York.
The following tables summarize the fair value and gross unrealized losses of those securities that reported an unrealized loss at September 30, 2026 and December 31, 2025 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:
20
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
7. Debt Securities Held to Maturity (continued)
| September 30, 2026 | |||||||||||||||||||||||||||||||||||
| Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||
| Fair Value | Gross Unrealized (Losses) | Fair Value | Gross Unrealized (Losses) | Fair Value | Gross Unrealized (Losses) | ||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| U.S. government and agency obligations | $ | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
| Mortgage-backed securities and collateralized mortgage obligations | ( | ( | ( | ||||||||||||||||||||||||||||||||
| $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||
| Fair Value | Gross Unrealized (Losses) | Fair Value | Gross Unrealized (Losses) | Fair Value | Gross Unrealized (Losses) | ||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| U.S. government and agency obligations | $ | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
| Mortgage-backed securities and collateralized mortgage obligations | ( | ( | ( | ||||||||||||||||||||||||||||||||
| $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
The number of securities in an unrealized loss position at September 30, 2026 totaled 134 , compared with 101 at December 31, 2025. All temporarily impaired securities were investment grade as of September 30, 2026 and December 31, 2025.
For held to maturity securities, management measures expected credit losses on a collective basis by major security type. All of the mortgage-backed securities are issued by U.S. government agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses and, therefore, the expectation of non-payment is zero and the Company is not required to estimate an allowance for credit losses on these securities under the CECL standard. All of these securities reflect a credit quality rating of AAA by Moody's Investors Service.
The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of debt securities held to maturity. Accrued interest receivable on debt securities held to maturity is reported as a component of accrued interest receivable on the Consolidated Statement of Financial Condition, which totaled $3.0 million and $948,000 at September 30, 2026 and December 31, 2025, respectively, and is excluded from the estimate of credit losses.
8. Equity Securities at Fair Value
The Company has an equity securities portfolio which consists of stock in other financial institutions, a payment technology company, a community bank correspondent services company, preferred stock in U.S. Government agencies, and a Community Reinvestment Act qualifying bond fund which are reported at fair value on the Company's Consolidated Statements of Financial Condition. The fair value of the equities portfolio at September 30, 2026 and December 31, 2025 was $5.4 million and $6.8 million, respectively.
The Company recorded a net (decrease)/increase in the fair value of equity securities of $(447,000 ) and $(1.4 ) million, and $714,000 and $1.3 million respectively, during the three and nine months ended September 30, 2026 and 2025, respectively, as a component of non-interest income. During the three and nine months ended September 30, 2026 and 2025, there were no 67,000 in equity securities were acquired in the Northfield merger.
21
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
9. Loans Receivable and Allowance for Credit Losses
Loans receivable at September 30, 2026 and December 31, 2025 are summarized as follows:
| September 30, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| (In thousands) | |||||||||||
| Real estate loans: | |||||||||||
| One-to-four family | $ | $ | |||||||||
| Multifamily | |||||||||||
| Commercial real estate | |||||||||||
| Construction | |||||||||||
| Commercial business loans | |||||||||||
| Consumer loans: | |||||||||||
| Home equity loans and advances | |||||||||||
| Other consumer loans | |||||||||||
| Total gross loans | |||||||||||
| Purchased credit deteriorated ("PCD") loans | |||||||||||
| Net deferred loan costs, fees and purchased premiums and discounts | |||||||||||
| Loans receivable | $ | $ | |||||||||
The Company had $211.4 million of loans held-for-sale at September 30, 2026. There were no loans held-for-sale at December 31, 2025. During the three months ended September 30, 2026, the Company sold $36.8 million and $3.0 million of commercial real estate loans, and Small Business Administration ("SBA") loans included in commercial business loans held-for-sale, respectively, resulting in gross gains of $219,000 and $7.8 million gross losses. During the nine months ended September 30, 2026, the Company sold $36.8 million, $12.2 million and $4.1 million of commercial real estate loans, Small Business Administration ("SBA") loans included in commercial business loans held-for-sale, and construction loans, respectively, resulting in gross gains of $994,000 and gross losses of $7.8 million.
During the three months ended September 30, 2025, the Company sold $3.0 million, $2.7 million and $3.1 million of one-to-four family real estate loans, construction loans, and Small Business Administration ("SBA") loans included in commercial business loans held-for-sale, respectively, resulting in gross gains of $342,000 and no gross losses. During the nine months ended September 30, 2025, the Company sold $13.4 million, $7.5 million, and $8.6 million of one-to-four family real estate loans, construction loans, and SBA loans included in commercial business loans held-for-sale, respectively, resulting in gross gains of $870,000 and gross losses of $98,000 .
During the three and nine months ended September 30, 2026, the Company did not 130.9 million in equipment finance loans, included in commercial business loans and $20.0 million in construction loan participations were also purchased from third parties. During the three months ended September 30, 2025, no loans were purchased by the Company.
The Company has entered into guarantor swaps with Freddie Mac which results in improved liquidity. During the three and nine months ended September 30, 2026, no 6.1 million and $13.3 million, respectively, of loans for Freddie Mac mortgage participation certificates, resulting in gross gains of $59,000 and $129,000 , respectively, and no
At September 30, 2026 and December 31, 2025, the carrying value of loans serviced by the Company for investors was $463.0 million and $494.8 million, respectively. These loans are not included in the Consolidated Statements of Financial Condition.
22
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
9. Loans Receivable and Allowance for Credit Losses (continued)
The following tables summarize the aging of loans receivable by portfolio segment, including non-accrual loans and excluding PCD loans at September 30, 2026 and December 31, 2025:
| September 30, 2026 | |||||||||||||||||||||||||||||||||||||||||
| 30-59 Days | 60-89 Days | 90 Days or More | Total Past Due | Non-accrual | Current | Total | |||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||||||
| Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
| One-to-four family | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Multifamily | |||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | |||||||||||||||||||||||||||||||||||||||||
| Construction | |||||||||||||||||||||||||||||||||||||||||
| Commercial business loans | |||||||||||||||||||||||||||||||||||||||||
| Consumer loans: | |||||||||||||||||||||||||||||||||||||||||
| Home equity loans and advances | |||||||||||||||||||||||||||||||||||||||||
| Other consumer loans | |||||||||||||||||||||||||||||||||||||||||
| Total gross loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| 30-59 Days | 60-89 Days | 90 Days or More | Total Past Due | Non-accrual | Current | Total | |||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||||||
| Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
| One-to-four family | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Multifamily | |||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | |||||||||||||||||||||||||||||||||||||||||
| Construction | |||||||||||||||||||||||||||||||||||||||||
| Commercial business loans | |||||||||||||||||||||||||||||||||||||||||
| Consumer loans: | |||||||||||||||||||||||||||||||||||||||||
| Home equity loans and advances | |||||||||||||||||||||||||||||||||||||||||
| Other consumer loans | |||||||||||||||||||||||||||||||||||||||||
| Total gross loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
The Company considers a loan to be delinquent when we have not received a payment within 30 days of its contractual due date, or when the Company does not expect to receive all principal and interest payments owed substantially in accordance with the terms of the loan agreement, regardless of the past due status. Non-accruing loans are returned to accrual status after there has been a sustained period of repayment performance and both principal and interest are deemed collectible. The Company identifies loans that may need to be charged-off as a loss by reviewing all delinquent loans, classified loans and other loans for which management may have concerns about collectability.
At September 30, 2026 and December 31, 2025, non-accrual loans totaled $36.5 million and $38.0 million, respectively. Included in non-accrual loans at September 30, 2026 and December 31, 2025, are 34 and 38 loans totaling $11.8 million and $10.4 million, respectively, which are less than 90
At September 30, 2026 and December 31, 2025, there were no 90
23
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
9. Loans Receivable and Allowance for Credit Losses (continued)
PCD loans are loans acquired at a discount primarily due to deteriorated credit quality. These loans were initially recorded at fair value at acquisition, based upon the present value of expected future cash flows, with no related provision for credit losses. Loans acquired in a business combination are recorded in accordance with ASC Topic 326, which requires loans as of the acquisition date, which have experienced a more than insignificant deterioration in credit quality since origination, to be classified as PCD loans.
At September 30, 2026, the remaining balance of PCD loans acquired in the Northfield acquisition totaled $153.6 million. At September 30, 2026 and December 31, 2025, PCD loans acquired in the Stewardship Financial Corporation ("Stewardship") acquisition totaled $1.0 33,000 and $44,000 , respectively, and PCD loans acquired in the RSI Bank acquisition totaled $8.0 million and $8.3 million, respectively, PCD loans acquired in conjunction with the purchase of equipment finance loans purchased in 2025, totaled $411,000 and $1.0 million, respectively. Charge-offs related to these purchased loans totaled $3.2 million during the year ended December 31, 2025.
We may obtain physical possession of real estate collateralizing a residential mortgage loan via foreclosure. At both September 30, 2026 and December 31, 2025, the Company held no 5.9 million acquired through foreclosure in March 2026 resulting in a realized loss of $1.8 million. At September 30, 2026, we had nine residential mortgage loans with carrying values totaling $2.9 million and two home equity loans with carrying values totaling $69,000 , collateralized by residential real estate, which were in the process of foreclosure. At December 31, 2025, we had nine residential mortgage loans with carrying values totaling $2.5 million and four home equity loans with carrying value totaling $585,000 , collateralized by residential real estate, which were in the process of foreclosure.
The balance of the allowance for credit losses is based on an expected loss methodology, referred to as the "CECL" methodology. The loan portfolio segmentation includes seven portfolio segments taking into consideration common loan attributes and risk characteristics, as well as historical reporting metrics and data availability. Accrued interest receivable on loans receivable is reported as a component of accrued interest receivable in the Consolidated Statement of Financial Condition, which totaled $51.9 million at September 30, 2026 and $34.7 million at December 31, 2025, and is excluded from the estimate of allowance for credit losses.
The determination of the allowance for credit losses (“ACL”) on loans is considered a critical accounting estimate by management because of the high degree of judgment involved in determining qualitative loss factors, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment. The ACL is maintained at a level management considers adequate to provide for estimated losses and impairment based upon an evaluation of known and inherent risk in the loan portfolio. The ACL consists of two elements: (1) identification of loans that must be individually analyzed for impairment and (2) establishment of an ACL for loans collectively analyzed.
Portfolio segments are defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Management developed segments for estimating losses based on the type of borrower and collateral which is generally based upon federal call report segmentation. The segments have been combined, or sub-segments have been added as needed to ensure loans of similar risk profiles are appropriately pooled.
We maintain a loan review system that provides a periodic review of the loan portfolio and the identification of individually analyzed loans. The ACL for individually analyzed loans is based on the fair value of collateral or cash flows. While management uses current information available to make such evaluations, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used in making the evaluations.
The ACL quantitative allowance for each segment is measured using a discounted cash flow methodology incorporating an econometric, probability of default (“PD”) and loss given default (“LGD”) with distinct segment-specific multi-variate regression models applied. Expected credit losses are estimated over the life of the loans by measuring the difference between the net present value of modeled cash flows and amortized cost basis. Contractual cash flows over the contractual life of the loans are the basis for the modeled cash flows, adjusted for model defaults and expected prepayments and discounted at the loan-level effective interest rate. The contractual term excludes expected extensions, renewals, and modifications.
Management estimates the ACL using relevant and reliable information from internal and external sources, related to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience for both the Company and its
24
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
9. Loans Receivable and Allowance for Credit Losses (continued)
segment-specific peers provides the basis for the estimate of expected credit losses. Credit losses over a defined period are converted to PD rate curves through the use of segment-specific LGD risk factors that convert default rates to loss severity based on industry-level, observed relationships between the two variables for each segment, primarily due to the nature of the underlying collateral. These risk factors were assessed for reasonableness against the Company’s own loss experience and adjusted in certain cases when the relationship between the Company’s historical default and loss severity deviates from that of the wider industry. The historical PD curves, together with corresponding economic conditions, establish a quantitative relationship between economic conditions and loan performance through an economic cycle.
Using the historical relationship between economic conditions and loan performance, management’s expectation of future loan performance is incorporated using a single economic forecast of macroeconomic variables (i.e., unemployment, gross domestic product, vacancy, and home price index). This forecast is applied over a period that management has determined to be reasonable and supportable. Beyond the period over which management can develop or source a reasonable and supportable forecast, the model reverts to long-term average historical loss rates using a straight-line, time-based methodology. The Company's current forecast period is six quarters, with a four-quarter reversion period to long-term average historical loss rates.
After quantitative considerations, management applies additional qualitative adjustments that consider the expected impact of certain factors not fully captured in the quantitative reserve. Qualitative adjustments include but are not limited to concentrations of large loan balances, delinquency trends, change in collateral values within segments, and other considerations.
The ACL is established through the provision for credit losses that are charged to income, which is based upon an evaluation of estimated losses in the current loan portfolio, including the evaluation of individually analyzed loans. Charge-offs against the ACL are taken on loans where management determines that the collection of loan principal and interest is unlikely. Recoveries made on loans that have been charged-off are credited to the ACL. Although we believe we have established and maintained the ACL on loans at appropriate levels, changes in reserves may be necessary if actual economic and other conditions differ substantially from the forecast used in estimating the ACL.
Our financial results are affected by the changes in and the level of the ACL. This process involves our analysis of internal and external variables, and it requires that we exercise judgment to estimate an appropriate ACL. As a result of the uncertainty associated with this subjectivity, we cannot assure the precision of the amount reserved should we experience sizable loan losses in any particular period and/or significant changes in assumptions or economic conditions. We believe the primary risks inherent in the portfolio are a general decline in the economy, a decline in real estate market values, rising unemployment, increasing vacancy rates, and increases in interest rates in the absence of economic improvement or any other such factors. Any one or a combination of these events may adversely affect a borrower's ability to repay its loan, resulting in increased delinquencies and loan losses. Accordingly, we have recorded loan credit losses at a level which is estimated to represent the current risk in its loan portfolio.
For our non-performing loans, the allowance is determined on an individual basis using the present value of expected cash flows, or for collateral dependent loans, the fair value of the collateral less estimated costs to sell. We continue to assess the collateral of loans and update our appraisals on these loans on an annual basis. To the extent the property values decline, there could be additional losses on these non-performing assets, which may be material. Management considered these market conditions in deriving the estimated ACL. Should economic difficulties occur, the ultimate amount of loss could vary from our current estimate.
25
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
9. Loans Receivable and Allowance for Credit Losses (continued)
The following tables summarize loans receivable (including PCD loans) and allowance for credit losses by portfolio segment and impairment method at September 30, 2026 and December 31, 2025:
| September 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||
| One-to-Four Family | Multifamily | Commercial Real Estate | Construction | Commercial Business | Home Equity Loans and Advances | Other Consumer Loans | Total | ||||||||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses: | |||||||||||||||||||||||||||||||||||||||||||||||
| Individually analyzed loans | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Collectively analyzed loans | |||||||||||||||||||||||||||||||||||||||||||||||
| Loans acquired with deteriorated credit quality | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Total loans: | |||||||||||||||||||||||||||||||||||||||||||||||
| Individually analyzed loans | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Collectively analyzed loans | |||||||||||||||||||||||||||||||||||||||||||||||
| Loans acquired with deteriorated credit quality | |||||||||||||||||||||||||||||||||||||||||||||||
| Total loans | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
26
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
9. Loans Receivable and Allowance for Credit Losses (continued)
| December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| One-to-Four Family | Multifamily | Commercial Real Estate | Construction | Commercial Business | Home Equity Loans and Advances | Other Consumer Loans | Total | ||||||||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses: | |||||||||||||||||||||||||||||||||||||||||||||||
| Individually analyzed loans | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Collectively analyzed loans | |||||||||||||||||||||||||||||||||||||||||||||||
| Loans acquired with deteriorated credit quality | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Total loans: | |||||||||||||||||||||||||||||||||||||||||||||||
| Individually analyzed loans | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Collectively analyzed loans | |||||||||||||||||||||||||||||||||||||||||||||||
| Loans acquired with deteriorated credit quality | |||||||||||||||||||||||||||||||||||||||||||||||
| Total loans | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Modifications made to borrowers experiencing financial difficulty may include principal or interest forgiveness, forbearance, interest rate reductions, term extensions, or a combination of these events intended to minimize economic loss and to avoid foreclosure or repossession of collateral.
27
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
9. Loans Receivable and Allowance for Credit Losses (continued)
The following tables presents the modifications of loans to borrowers experiencing financial difficulty that were modified
during the three and nine months ended September 30, 2026 and 2025:
For the Three Months Ended September 30, 2026 | |||||||||||||||||||||||||||||
| Amortized Cost | Interest Rate Reduction | % of Total Class of Loans Receivable | |||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||
| Commercial real estate | $ | $ | % | ||||||||||||||||||||||||||
| Total loans | $ | $ | % | ||||||||||||||||||||||||||
For the Three Months Ended September 30, 2025 | |||||||||||||||||||||||||||||
| Amortized Cost | Combination of Term Extension and Interest Rate Reduction | % of Total Class of Loans Receivable | |||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||
| Commercial business | $ | $ | % | ||||||||||||||||||||||||||
| Total loans | $ | $ | % | ||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2026 | |||||||||||||||||||||||||||||||||||
| Amortized Cost | Term Extension | Interest Rate Reduction | Combination of Term Extension and Interest Rate Reduction | % of Total Class of Loans Receivable | |||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| Commercial real estate | $ | $ | $ | $ | % | ||||||||||||||||||||||||||||||
| Commercial business | % | ||||||||||||||||||||||||||||||||||
| Total loans | $ | $ | $ | % | |||||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Amortized Cost | Interest Rate Reduction | Term Extension | Combination of Term Extension and Interest Rate Reduction | % of Total Class of Loans Receivable | |||||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||||||
| Commercial business | $ | $ | $ | $ | % | ||||||||||||||||||||||||||||||||||||
| Total loans | $ | $ | $ | $ | % | ||||||||||||||||||||||||||||||||||||
28
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
9. Loans Receivable and Allowance for Credit Losses (continued)
The following tables describe the types of modifications of loans to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2026 and 2025:
For the Three Months Ended September 30, 2026 | |||||
| Type of Modifications | |||||
| Commercial real estate | Interest rate reduction | ||||
For the Three Months Ended September 30, 2025 | |||||
| Type of Modifications | |||||
| Commercial business | Interest rate reduction and/or term extensions ranging from | ||||
For the Nine Months Ended September 30, 2026 | |||||
| Type of Modifications | |||||
| Commercial real estate | Interest rate reduction | ||||
| Commercial business | Interest rate reduction and/or term extensions ranging from | ||||
For the Nine Months Ended September 30, 2025 | |||||
| Type of Modifications | |||||
| Commercial business | Interest rate reduction and/or term extensions ranging from | ||||
The Company closely monitors the performance of modifications of loans to borrowers experiencing financial difficulty to understand the effectiveness of these modification efforts. The Company did not extend any commitment to lend additional funds to borrowers experiencing financial difficulty whose loans had been modified during the three and nine months ended September 30, 2026 and 2025.
The following tables present the aging analysis of modifications of loans to borrowers experiencing financial difficulty at September 30, 2026 and December 31, 2025:
September 30, 2026 | |||||||||||||||||||||||||||||||||||
| Current | 30-59 Days | 60-89 Days | 90 Days or More | Non-accrual | Total | ||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| Commercial real estate | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Commercial business | |||||||||||||||||||||||||||||||||||
| Total loans | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
29
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
9. Loans Receivable and Allowance for Credit Losses (continued)
December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Current | 30-59 Days | 60-89 Days | 90 Days or More | Non-accrual | Total | ||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| Commercial real estate | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Commercial business | |||||||||||||||||||||||||||||||||||
| Total loans | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
The activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2026 and 2025 are as follows:
| For the Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| One-to-Four Family | Multifamily | Commercial Real Estate | Construction | Commercial Business | Home Equity Loans and Advances | Other Consumer Loans | Totals | ||||||||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
2026 | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Provision for (reversal of) credit losses | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Initial allowance related to Northfield PCD loans | |||||||||||||||||||||||||||||||||||||||||||||||
| Initial allowance related to Northfield PSL loans | |||||||||||||||||||||||||||||||||||||||||||||||
| Recoveries | |||||||||||||||||||||||||||||||||||||||||||||||
| Charge-offs | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
| Balance at end of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Provision for (reversal of) credit losses | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Recoveries | |||||||||||||||||||||||||||||||||||||||||||||||
| Charge-offs | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Balance at end of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
30
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
9. Loans Receivable and Allowance for Credit Losses (continued)
| For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| One-to-Four Family | Multifamily | Commercial Real Estate | Construction | Commercial Business | Home Equity Loans and Advances | Other Consumer Loans | Totals | ||||||||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
2026 | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Provision for (reversal of) credit losses | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Initial allowance related to Northfield PCD loans | |||||||||||||||||||||||||||||||||||||||||||||||
| Initial allowance related to Northfield PSL loans | |||||||||||||||||||||||||||||||||||||||||||||||
| Recoveries | |||||||||||||||||||||||||||||||||||||||||||||||
| Charge-offs | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
| Balance at end of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Initial allowance related to PCD loans | |||||||||||||||||||||||||||||||||||||||||||||||
| Provision for (reversal of) credit losses | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Recoveries | |||||||||||||||||||||||||||||||||||||||||||||||
| Charge-offs | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
| Balance at end of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
31
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
9. Loans Receivable and Allowance for Credit Losses (continued)
The following tables present individually analyzed loans by segment, excluding PCD loans, at September 30, 2026 and December 31, 2025:
At September 30, 2026 | |||||||||||||||||
| Recorded Investment | Unpaid Principal Balance | Specific Allowance | |||||||||||||||
| (In thousands) | |||||||||||||||||
| With no allowance recorded: | |||||||||||||||||
| Real estate loans: | |||||||||||||||||
| One-to-four family | $ | $ | $ | ||||||||||||||
| Multifamily | |||||||||||||||||
| Commercial real estate | |||||||||||||||||
| Construction | |||||||||||||||||
| Commercial business loans | |||||||||||||||||
| Consumer loans: | |||||||||||||||||
| Home equity loans and advances | |||||||||||||||||
| With a specific allowance recorded: | |||||||||||||||||
| Total: | |||||||||||||||||
| Real estate loans: | |||||||||||||||||
| One-to-four family | |||||||||||||||||
| Multifamily | |||||||||||||||||
| Commercial real estate | |||||||||||||||||
| Construction | |||||||||||||||||
| Commercial business loans | |||||||||||||||||
| Consumer loans: | |||||||||||||||||
| Home equity loans and advances | |||||||||||||||||
| Total loans | $ | $ | $ | ||||||||||||||
32
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
9. Loans Receivable and Allowance for Credit Losses (continued)
At December 31, 2025 | |||||||||||||||||
| Recorded Investment | Unpaid Principal Balance | Specific Allowance | |||||||||||||||
| (In thousands) | |||||||||||||||||
| With no allowance recorded: | |||||||||||||||||
| Real estate loans: | |||||||||||||||||
| One-to-four family | $ | $ | $ | ||||||||||||||
| Multifamily | |||||||||||||||||
| Commercial real estate | |||||||||||||||||
| Construction | |||||||||||||||||
| Commercial business loans | |||||||||||||||||
| Consumer loans: | |||||||||||||||||
| Home equity loans and advances | |||||||||||||||||
| With a specific allowance recorded: | |||||||||||||||||
| Total: | |||||||||||||||||
| Real estate loans: | |||||||||||||||||
| One-to-four family | |||||||||||||||||
| Multifamily | |||||||||||||||||
| Commercial real estate | |||||||||||||||||
| Construction | |||||||||||||||||
| Commercial business loans | |||||||||||||||||
| Consumer loans: | |||||||||||||||||
| Home equity loans and advances | |||||||||||||||||
| $ | $ | $ | |||||||||||||||
33
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
9. Loans Receivable and Allowance for Credit Losses (continued)
The following table presents interest income recognized for individually analyzed loans by loan segment, excluding PCD loans, for the three and nine months ended September 30, 2026 and 2025:
| For the Three Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Real estate loans: | |||||||||||||||||||||||
| One-to-four family | $ | $ | $ | $ | |||||||||||||||||||
| Multifamily | |||||||||||||||||||||||
| Commercial real estate | |||||||||||||||||||||||
| Construction | |||||||||||||||||||||||
| Commercial business loans | |||||||||||||||||||||||
| Consumer loans: | |||||||||||||||||||||||
| Home equity loans and advances | |||||||||||||||||||||||
| Total loans | $ | $ | $ | $ | |||||||||||||||||||
| For the Nine Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Real estate loans: | |||||||||||||||||||||||
| One-to-four family | $ | $ | $ | $ | |||||||||||||||||||
| Multifamily | |||||||||||||||||||||||
| Commercial real estate | |||||||||||||||||||||||
| Construction | |||||||||||||||||||||||
| Commercial business loans | |||||||||||||||||||||||
| Consumer loans: | |||||||||||||||||||||||
| Home equity loans and advances | |||||||||||||||||||||||
| Total loans | $ | $ | $ | $ | |||||||||||||||||||
Management prepares an analysis each quarter that categorizes the entire loan portfolio by certain risk characteristics such as loan type (residential mortgage, commercial mortgage, construction, commercial business, etc.) and loan risk rating. The categorization of loans into risk categories is based upon relevant information about the borrower's ability to service their debt.
The Company utilizes a risk rating system to summarize its loan portfolio into categories with similar risk characteristics. Loans deemed to be “acceptable quality” are rated 1 through 4w, with a rating established for loans with minimal risk. Loans rated 4w are watch loans, which may have a potential concern that warrants increased oversight and tracking by management. We enhanced our level of scrutiny and focus regarding documentation related to credit risk rating benchmark guidelines that pertain to debt-service coverage ratios, LTV ratios, borrower strength, asset quality, and funded cash reserves. Other factors such as guarantees, market strength and remaining loan term and borrower equity are also reviewed and are factored into determining the credit risk rating assigned to each loan. Loans that are deemed to be of “questionable quality” are rated 5 (Special Mention) or 6 (Substandard). Loans with adverse classifications are rated 7 (Doubtful) or 8 (Loss). The risk ratings are also confirmed through periodic loan review examinations which are currently performed by both an independent third-party and the Company's credit risk review department. Results from examinations are presented to the Audit Committee of the Board of Directors.
34
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
9. Loans Receivable and Allowance for Credit Losses (continued)
The following table summarizes the Company's loans by year of origination and internally assigned credit risk rating, excluding PCD loans, at September 30, 2026 and December 31, 2025:
Loans by Year of Origination at September 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2024 | 2023 | 2022 | Prior | Revolving Loans | Revolving Loans to Term Loans | Total | |||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| One-to-Four Family | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total One-to-Four Family | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Multifamily | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Multifamily | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Construction | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Construction | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
35
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
9. Loans Receivable and Allowance for Credit Losses (continued)
Loans by Year of Origination at September 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2024 | 2023 | 2022 | Prior | Revolving Loans | Revolving Loans to Term Loans | Total | |||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Business Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Commercial Business Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home Equity Loans and Advances | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Home Equity Loans and Advances | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Consumer Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Other Consumer Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
36
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
9. Loans Receivable and Allowance for Credit Losses (continued)
Loans by Year of Origination at December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Revolving Loans | Revolving Loans to Term Loans | Total | |||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| One-to-Four Family | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total One-to-Four family | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Multifamily | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Multifamily | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Construction | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Construction | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
37
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
9. Loans Receivable and Allowance for Credit Losses (continued)
Loans by Year of Origination at December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Revolving Loans | Revolving Loans to Term Loans | Total | |||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Business Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Commercial Business Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home Equity Loans and Advances | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Home Equity Loans and Advances | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Consumer Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Other Consumer Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
38
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
9. Loans Receivable and Allowance for Credit Losses (continued)
The Company is required to include unfunded commitments that are expected to be funded in the future within the allowance calculation, other than those that are unconditionally cancellable. To arrive at that reserve, the percentage for each applicable segment is applied to the unused portion of the expected commitment balance and is multiplied by the expected funding rate. To determine the expected funding rate, the Company uses a historical utilization rate for each segment. The allowance for credit losses for off-balance-sheet exposures is reported in other liabilities in the Consolidated Statements of Financial Condition. The liability represents an estimate of expected credit losses arising from off-balance-sheet exposures such as unfunded commitments. At September 30, 2026 and December 31, 2025, the balance of the allowance for credit losses on unfunded commitments, included in other liabilities, totaled $4.7 million and $3.9 million, respectively. The Company recorded a (reversal of) provision for credit losses on unfunded commitments, included in other non-interest expense in the Consolidated Statements of Income of $(638,000 ) and $381,000 , and $354,000 and $110,000 , respectively, during the three and nine months ended September 30, 2026 and 2025, respectively.
The following table presents the activity in the allowance for credit losses on off-balance-sheet exposures for the three and nine months ended September 30, 2026 and 2025:
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Allowance for Credit Losses: | |||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||||||||||
| Initial ACL for Northfield off-balance sheets exposures | |||||||||||||||||||||||
| (Reversal of) provision for credit losses | ( | ||||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ | |||||||||||||||||||
10. Leases
The Company leases real estate property for branches and office space. At September 30, 2026 and December 31, 2025, all of the Company's leases are classified as operating leases.
The Company determines if an arrangement is a lease at inception. ASC Topic 842 requires lessees to recognize a right-of-use asset and a lease liability, measured at the present value of the future minimum lease payments, at the lease commencement date. The calculated amount of the right-of-use asset and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of minimum lease payments. At September 30, 2026 and December 31, 2025, the weighted average remaining lease term for operating leases was 7.8 years and 5.5 years, respectively, and the weighted average discount rate used in the measurement of operating lease liabilities was 4.38 % and 3.39 %, respectively.
The Company accounts for the lease and non-lease components separately since such amounts are readily determinable under the Company's lease contracts. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are recognized as incurred. Variable lease payments include common area maintenance charges, real estate taxes, repairs and maintenance costs and utilities. Operating and variable lease expenses are recorded in occupancy expense in the Consolidated Statements of Income. During the three and nine months ended September 30, 2026 and 2025, operating and variable lease expenses totaled approximately $1.2 million and $821,000 and $3.1 million and $2.4 million, respectively.
There were no sale and leaseback transactions, leveraged leases or lease transactions with related parties during the three and nine months ended September 30, 2026 and 2025. At September 30, 2026, the Company had no leases which had not yet commenced.
During the three and nine months ended September 30, 2026, the Company added 29 new obligations related to the Northfield merger. The Company recorded a $28.5
39
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
10. Leases (continued)
The following table summarizes lease payment obligations for each of the next five years and thereafter as follows:
| Lease Payment Obligations at | |||||||||||
| September 30, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| (In thousands) | |||||||||||
| One year or less | $ | $ | |||||||||
| After one year to two years | |||||||||||
| After two years to three years | |||||||||||
| After three years to four years | |||||||||||
| After four years to five years | |||||||||||
| Thereafter | |||||||||||
| Total undiscounted cash flows | |||||||||||
| Discount on cash flows | ( | ( | |||||||||
| Total lease liability | $ | $ | |||||||||
11. Deposits
| September 30, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| (In thousands) | |||||||||||
| Non-interest-bearing demand | $ | $ | |||||||||
| Negotiable orders of withdrawal and interest-bearing demand | |||||||||||
| Money market accounts | |||||||||||
| Savings and club deposits | |||||||||||
| Certificates of deposit | |||||||||||
| Total deposits | $ | $ | |||||||||
The aggregate amount of certificates of deposit that meet or exceed $250,000 totaled approximately $990.3 million and $723.3 million at September 30, 2026 and December 31, 2025, respectively. Interest expense on deposits for the three months ended September 30, 2026 and 2025 totaled $62.8 million and $49.6 million, respectively. Interest expense on deposits for the nine months ended September 30, 2026 and 2025 totaled $155.3 million and $149.1 million, respectively.
Within total deposits, brokered deposits totaled $48.9 million and $46.2 million at September 30, 2026 and December 31, 2025. The Company also offers its customers reciprocal deposit arrangements, which provide FDIC deposit insurance for accounts that would otherwise exceed deposit insurance limits, which totaled $228.9 million and $262.1 million as of September 30, 2026 and December 31, 2025, respectively.
40
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
11. Deposits (continued)
Scheduled maturities of certificates of deposit accounts at September 30, 2026 and December 31, 2025 are summarized as follows:
| September 30, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| (In thousands) | |||||||||||
| One year or less | $ | $ | |||||||||
| After one year to two years | |||||||||||
| After two years to three years | |||||||||||
| After three years to four years | |||||||||||
| After four years | |||||||||||
| $ | $ | ||||||||||
12. Stock Based Compensation
At September 30, 2026 there were 307,062 shares remaining available for future restricted stock awards and 1,787,192 shares remaining available for future stock option grants under the Columbia Financial, Inc. 2019 Equity Incentive Plan ("2019 Plan").
Restricted shares granted under the 2019 Plan generally vest in equal installments, over performance or service periods generally ranging from one year to three years , beginning one year from the date of grant. A portion of restricted shares awarded are performance awards, which vest upon the satisfactory attainment of certain corporate financial targets. Management recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite performance or service period. During the three months ended September 30, 2026 and 2025, approximately $505,000 and $532,000 , respectively, in expense was recognized in regard to these awards. During the nine months ended September 30, 2026 and 2025, approximately $1.5 million and $1.9 million, respectively, in expense was recognized in regard to these awards. The expected future compensation expense related to the 903,631 non-vested restricted shares outstanding at September 30, 2026 is approximately $2.5 million over a weighted average period of 1.8 years.
41
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
12. Stock Based Compensation (continued)
| Number of Restricted Shares | Weighted Average Grant Date Fair Value | ||||||||||
| Non-vested at January 1, 2026 | $ | ||||||||||
| Grants | |||||||||||
| Vested | ( | ||||||||||
| Forfeited | ( | ||||||||||
| Non-vested at March 31, 2026 | $ | ||||||||||
| Vested | ( | ||||||||||
| Forfeited | ( | ||||||||||
| Non-vested at June 30, 2026 | $ | ||||||||||
| Forfeited | ( | ||||||||||
Non-vested at September 30, 2026 | $ | ||||||||||
| Number of Restricted Shares | Weighted Average Grant Date Fair Value | ||||||||||
| Non-vested at January 1, 2025 | $ | ||||||||||
| Grants | |||||||||||
| Vested | ( | ||||||||||
| Forfeited | ( | ||||||||||
| Non-vested at March 31, 2025 | $ | ||||||||||
| Vested | ( | ||||||||||
| Forfeited | ( | ||||||||||
| Non-vested at June 30, 2025 | $ | ||||||||||
Non-vested at September 30, 2025 | $ | ||||||||||
The fair value of stock option grants is determined through the application of the Black-Scholes model, incorporating the following variables. The expected life of the options represents the term over which stock options are anticipated to remain outstanding, and is estimated by means of the simplified approach, which presupposes that all outstanding options will be exercised at the midpoint between the vesting date and the full contractual term. The risk-free rate of return is derived from the prevailing rates, on the grant date, of a U.S. Treasury Note bearing a term equivalent to the expected option life. The expected volatility is established on the basis of the historical daily stock prices of the Company's common stock. The actual dividend rate paid on the Company's common stock serves as the basis for the applicable dividend rate assumption.
42
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
12. Stock Based Compensation (continued)
Management recognizes expense for the fair value of these awards on a straight-line basis over the requisite service period. During the three months ended September 30, 2026 and 2025, approximately $593,000 and $532,000 in expense was recognized in regard to these awards. During the nine months ended September 30, 2026 and 2025, approximately $1.7 million and $1.9 million, respectively, in expense was recognized in regard to these awards. The expected future compensation expense related to the 1,707,980 non-vested options outstanding at September 30, 2026 is $3.9 million over a weighted average period of 2.0 years.
The following is a summary of the Company's option activity during the three and nine months ended September 30, 2026 and 2025:
| Number of Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | ||||||||||||||||||||
| Outstanding, January 1, 2026 | $ | $ | |||||||||||||||||||||
| Granted | — | — | |||||||||||||||||||||
| Exercised | ( | — | — | ||||||||||||||||||||
| Expired | ( | — | — | ||||||||||||||||||||
| Forfeited | ( | — | — | ||||||||||||||||||||
| Outstanding, March 31, 2026 | $ | $ | |||||||||||||||||||||
| Exercised | ( | — | — | ||||||||||||||||||||
| Expired | ( | — | — | ||||||||||||||||||||
| Forfeited | ( | — | — | ||||||||||||||||||||
| Outstanding, June 30, 2026 | $ | $ | |||||||||||||||||||||
| Exercised | ( | — | — | ||||||||||||||||||||
| Forfeited | ( | — | — | ||||||||||||||||||||
Outstanding, September 30, 2026 | $ | $ | |||||||||||||||||||||
Options exercisable at September 30, 2026 | $ | $ | |||||||||||||||||||||
| Number of Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | ||||||||||||||||||||
| Outstanding, January 1, 2025 | $ | $ | |||||||||||||||||||||
| Granted | — | — | |||||||||||||||||||||
| Expired | ( | — | — | ||||||||||||||||||||
| Forfeited | ( | — | — | ||||||||||||||||||||
| Outstanding, March 31, 2025 | $ | $ | |||||||||||||||||||||
| Expired | ( | — | — | ||||||||||||||||||||
| Forfeited | ( | — | — | ||||||||||||||||||||
| Outstanding, June 30, 2025 | $ | ||||||||||||||||||||||
| Forfeited | ( | — | — | ||||||||||||||||||||
Outstanding, September 30, 2025 | $ | ||||||||||||||||||||||
Options exercisable at September 30, 2025 | $ | ||||||||||||||||||||||
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value, the difference between the Company's closing stock price on the last trading day of the period and the exercise price, multiplied by the number of in-the-money options.
43
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
12. Stock Based Compensation (continued)
During the three and nine months ended September 30, 2026, 43,326 and 326,848 options were exercised. There were no 139,000 and $468,000 , respectively.
Through its acquisition of Northfield Bank, the Company also acquired 114,000 11.85 - $12.94 which expire through November 1, 2027. During the three and nine months ended September 30, 2026, no
Through its acquisition of Northfield Bank, the Company also acquired 213,548 cash-settled restricted stock units. Of these grants 18,735 vest one year form the date of grant and 194,813 vest in equal installments over a three-year period beginning one year from the grant date of February 4, 2026. As the awards will be settled in cash, they are classified as liabilities on the consolidated statements of financial condition. During both the three and nine months ended September 30, 2026, the Company recorded compensation expense of $146,000 related to these awards. As of September 30, 2026, there was $1.7 million of unrecognized compensation costs related to non-vested stock units. That cost is expected to be recognized over a weighted average period of 2.2 years.
Phantom Stock Plan
On January 28, 2026, the Board of Directors of the Company adopted the Columbia Financial, Inc. 2026 Phantom Stock Plan (the “Phantom Stock Plan”). The purpose of the Phantom Stock Plan is to promote the long-term financial success of the Company by providing a means to attract, retain and reward individuals who contribute to the Company’s success and to further align their interests with those of the Company.
Under the terms of the Phantom Stock Plan, eligible employees and directors of the Company may be granted phantom stock units, which confer to the recipient the benefits of owning shares of the Company’s common stock without the actual ownership or transfer of shares. Each phantom stock unit entitles the participant to receive, upon the vesting of the phantom stock unit, a cash amount equal to the fair market value of a share of Company common stock as of the vesting date. “Fair market value” is defined as the last sale price reported on the Nasdaq Stock Market, or other national securities exchange on which shares of the Company’s common stock are traded, as of the vesting date (or, if the Company’s common stock is not listed on a national securities exchange on the vesting date, as otherwise determined by the Compensation Committee of the Company’s Board of Directors in accordance with the terms of the Phantom Stock Plan). Phantom stock units may be granted as performance awards, and awards under the Phantom Stock Plan are subject to the terms and conditions of the Company’s LTIP in effect for the applicable plan year.
The Phantom Stock Plan is administered by the Compensation Committee of the Company’s Board of Directors, which will have the discretion and authority to interpret the Phantom Stock Plan and make all determinations that may be necessary or advisable for the administration of the Phantom Stock Plan. The aggregate number of phantom stock units available for awards granted under the Phantom Stock Plan at any time for each plan year will be determined from time to time by the Compensation Committee based on the LTIP for the applicable plan year.
The Company granted 176,349 phantom stock units under the Phantom Stock Plan in March 2026 of which 171,588 remain outstanding at September 30, 2026. Phantom stock units are recorded in compensation and employee benefits expense based on the fair value of the units on the balance sheet date. The fair value of these awards is updated at each balance sheet date and changes in the fair value of the vested portions of the awards are recorded as increases or decreases to compensation expense within compensation and employee benefits in the Consolidated Statements of Income. All of the outstanding phantom stock units at September 30, 2026 met the criteria to be treated under liability classification in accordance with ASC 718, given that these awards will be settled in cash on the vesting date.
44
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
13. Components of Net Periodic Benefit Cost
Pension Plan, Retirement Income Maintenance Plan (the "RIM Plan") Post-retirement Plan, and Split-Dollar Life Insurance Plans
The Company maintains a single employer, tax-qualified defined benefit pension plan (the "Pension Plan") which covers full-time employees hired prior to October 1, 2018, that satisfied the Pension Plan's eligibility requirements. The benefits are based on years of service and the employee's average compensation for the highest five consecutive years of employment.
The Company's policy is to fund at least the minimum contribution required by the Employee Retirement Income Security Act of 1974. GAAP requires an employer to: (a) recognize in its statement of financial position the over-funded or under-funded status of a defined benefit post-retirement plan measured as the difference between the fair value of plan assets and the benefit obligation; (b) measure a plan’s assets and its obligations that determine its funded status at the end of the employer’s fiscal year (with limited exceptions); and (c) recognize as a component of other comprehensive income (loss), net of tax, the actuarial gains and losses and the
prior service costs and credits that arise during the period. The assets of the plan are primarily invested in fixed income and equity funds.
The Company also maintains a Retirement Income Maintenance Plan (the "RIM Plan") which is a non-qualified defined benefit plan which provides benefits to all employees of the Company if their benefits under the Pension Plan are limited by Internal Revenue Code Sections 415 and 401(a)(17).
In addition, the Company provides certain health care and life insurance benefits to eligible retired employees under a Post-retirement Plan. The Company accrues the cost of retiree health care and other benefits during the employee's period of active service. Effective January 1, 2019, the Post-retirement Plan was closed to new hires.
The Company also provides life insurance benefits to eligible employees under an endorsement split-dollar life insurance program. The Company recognizes a liability for future benefits applicable to endorsement split-dollar life insurance arrangements that provide death benefits post-retirement. Through its mergers, the Company recognized additional liability for future benefits applicable to endorsement split-dollar life insurance arrangements that provide death benefits post-retirement under the programs of certain other previously acquired banks.
Through the acquisition of Northfield, the Company acquired a post-retirement medical and life insurance plan to a limited number of retired individuals, and retiree life insurance benefits to qualified employees, up to certain limits, along with a split-dollar life insurance plan which are not included in the tables below.
45
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
13. Components of Net Periodic Benefit Cost (continued)
Pension Plan, Retirement Income Maintenance Plan (the "RIM Plan") Post-retirement Plan, and Split-Dollar Life Insurance Plans (continued)
Net periodic (income) benefit cost for the Pension Plan, RIM Plan, Post-retirement Plan and Split-Dollar Life Insurance plan benefits for the three and nine months ended September 30, 2026 and 2025, includes the following components:
| For the Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pension Plan | RIM Plan | Post-retirement Plan | Split-Dollar Life Insurance | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | Affected Line Item in the Consolidated Statements of Income | |||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service cost | $ | $ | $ | $ | $ | $ | $ | $ | Compensation and employee benefits | ||||||||||||||||||||||||||||||||||||||||||||
| Interest cost | Other non-interest expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Expected return on plan assets | ( | ( | Other non-interest expense | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prior service cost | Other non-interest expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net loss | ( | Other non-interest expense | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net periodic (income) benefit cost | $ | ( | $ | ( | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pension Plan | RIM Plan | Post-retirement Plan | Split-Dollar Life Insurance | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | Affected Line Item in the Consolidated Statements of Income | |||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service cost | $ | $ | $ | $ | $ | $ | $ | $ | Compensation and employee benefits | ||||||||||||||||||||||||||||||||||||||||||||
| Interest cost | Other non-interest expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Expected return on plan assets | ( | ( | Other non-interest expense | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prior service cost | Other non-interest expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net loss | ( | Other non-interest expense | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net periodic (income) benefit cost | $ | ( | $ | ( | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
46
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
13. Components of Net Periodic Benefit Cost (continued)
Pension Plan, Retirement Income Maintenance Plan (the "RIM Plan") Post-retirement Plan, and Split-Dollar Life Insurance Plans (continued)
For the three and nine months ended September 30, 2026 and 2025, no
14. Fair Value Measurements
The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The determination of fair values of financial instruments often requires the use of estimates. Where quoted market values in an active market are not readily available, the Company utilizes various valuation techniques to estimate fair value.
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:
Level 1: Unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access on the measurement date.
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar instruments in markets that are active or not active, or inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.
Level 3: Prices or valuation techniques that require unobservable inputs that are both significant to the fair value measurement and unobservable (i.e., supported by minimal or no market activity). Valuation techniques include the use of option pricing models, discounted cash flow models and similar techniques.
A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The methods described below were used to measure fair value of financial instruments as reflected in the tables below on a recurring basis at September 30, 2026 and December 31, 2025.
47
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
14. Fair Value Measurements (continued)
Debt Securities Available for Sale, at Fair Value
For debt securities available for sale, fair value was estimated using a market approach. The majority of these securities are fixed income instruments that are not quoted on an exchange but are traded in active markets. Prices for these instruments are obtained through third-party data service providers or dealer market participants with which the Company has historically transacted both purchases and sales of securities. Prices obtained from these sources include market quotations, matrix pricing and discounted cash flow pricing. Matrix pricing, a Level 2 input, is a mathematical technique used principally to value certain securities to a benchmark or to comparable securities. The Company evaluates the quality of Level 2 matrix pricing through comparison to similar assets with greater liquidity and evaluation of projected cash flows. Discounted cash flows, a Level 3 input, is estimated by discounting the expected future cash flows using the current rates for securities with similar credit ratings and similar remaining maturities. As the Company is responsible for the determination of fair value, it performs quarterly analysis on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Company compares the prices received from the pricing service to a secondary pricing source. Additionally, the Company compares changes in the reported market values and returns to relevant market indices to assess the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has not historically resulted in an adjustment in the prices obtained from the pricing service. The Company may hold debt instruments issued by the U.S. government and U.S. government-sponsored agencies that are traded in active markets with readily accessible quoted market prices that are considered Level 1 inputs. The Company classifies the estimated fair value of its loan portfolio as Level 3.
Equity Securities, at Fair Value
The Company holds equity securities that are traded in active markets with readily accessible quoted market prices that are considered Level 1 inputs. A trust preferred security that is not traded in an active market and Federal Home Loan Mortgage Corporation ("FHLMC") and Federal National Mortgage Association ("FNMA") preferred stock are considered Level 2 instruments. In addition, Level 2 instruments include Atlantic Community Bankers Bank ("ACCB") stock, which is based on redemption at par value and can only be sold to the issuing ACBB or another institution that holds ACBB stock.
Loans held-for-sale, at Fair Value
Loans held-for-sale are carried at the lower of unpaid principal balance, net, or estimated fair values based on bid quotations from secondary markets.
Derivatives
The Company records all derivatives included in other assets and liabilities on the Consolidated Statements of Financial Condition at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. See note 15 for disclosures related to the accounting treatment for derivatives.
The fair value of the Company's derivatives is determined by using discounted cash flow analysis using observable market-based inputs, which are considered Level 2 inputs.
48
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
14. Fair Value Measurements (continued)
The following tables present the assets and liabilities reported on the Consolidated Statements of Financial Condition at their fair values at September 30, 2026 and December 31, 2025, by level within the fair value hierarchy:
| September 30, 2026 | |||||||||||||||||||||||
| Fair Value Measurements | |||||||||||||||||||||||
| Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Debt securities available for sale: | |||||||||||||||||||||||
| U.S. government and agency obligations | $ | $ | $ | $ | |||||||||||||||||||
| Mortgage-backed securities and collateralized mortgage obligations | |||||||||||||||||||||||
| Municipal obligations | |||||||||||||||||||||||
| Corporate debt securities | |||||||||||||||||||||||
| Total debt securities available for sale | |||||||||||||||||||||||
| Equity securities | |||||||||||||||||||||||
| Loans held-for-sale | |||||||||||||||||||||||
| Derivative assets | |||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||
| Derivative liabilities | $ | $ | $ | $ | |||||||||||||||||||
49
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
14. Fair Value Measurements (continued)
| December 31, 2025 | |||||||||||||||||||||||
| Fair Value Measurements | |||||||||||||||||||||||
| Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Debt securities available for sale: | |||||||||||||||||||||||
| U.S. government and agency obligations | $ | $ | $ | $ | |||||||||||||||||||
| Mortgage-backed securities and collateralized mortgage obligations | |||||||||||||||||||||||
| Municipal obligations | |||||||||||||||||||||||
| Corporate debt securities | |||||||||||||||||||||||
| Total debt securities available for sale | |||||||||||||||||||||||
| Equity securities | |||||||||||||||||||||||
| Derivative assets | |||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||
| Derivative liabilities | $ | $ | $ | $ | |||||||||||||||||||
The table below provides activity of assets reported as Level 3 during the three and nine months ended September 30, 2026 and 2025:
| Significant Unobservable Inputs (Level 3) | |||||
| (In thousands) | |||||
| Debt securities available for sale: | |||||
| Balance of recurring Level 3 assets - December 31, 2025 | $ | ||||
| Change in fair value of Level 3 assets | ( | ||||
| Balance of recurring Level 3 assets - March 31, 2026 | $ | ||||
| Change in fair value of Level 3 assets | |||||
| Balance of recurring Level 3 assets - June 30, 2026 | $ | ||||
| Purchases of Level 3 assets | |||||
| Change in fair value of Level 3 assets | ( | ||||
| Balance of recurring Level 3 assets - September 30, 2026 | $ | ||||
50
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
14. Fair Value Measurements (continued)
| Significant Unobservable Inputs (Level 3) | |||||
| (In thousands) | |||||
| Debt securities available for sale: | |||||
| Balance of recurring Level 3 assets - December 31, 2024 | $ | ||||
| Change in fair value of Level 3 assets | ( | ||||
| Balance of recurring Level 3 assets - March 31, 2025 | $ | ||||
| Change in fair value of Level 3 assets | |||||
| Balance of recurring Level 3 assets - June 30, 2025 | $ | ||||
| Transfer into Level 3 assets | |||||
| Maturity of Level 3 assets | ( | ||||
| Change in fair value of Level 3 assets | |||||
| Balance of recurring Level 3 assets - September 30, 2025 | $ | ||||
The fair value of investments placed in Level 3 is estimated by discounting the expected future cash flows using reasonably available current rates for comparable new issue securities with similar structure, including original maturity, call date, and assumptions about risk. Discounted cash flow estimated valuations are subsequently validated against comparable structures as an approximation of value.
Expected cash flows were projected based on contractual cash flows. At September 30, 2026, two private placement corporate debt securities classified as available for sale, and six private placement municipal obligations classified as available for sale were included in Level 3 assets. At December 31, 2025, two private placement corporate debt securities classified as available for sale, and one private placement municipal obligation classified as available for sale were included in Level 3 assets.
There were no one
At September 30, 2026, private placement corporate debt security cash flows were discounted to a market yield and weighted average of 9.38 %, and the cash flows for the private placement municipal obligation was discounted to a market yield and weighted average of 4.20 %.
The period end valuations were supported by an analysis prepared by an independent third party market participant and approved by management.
Assets Measured at Fair Value on a Non-Recurring Basis
The valuation techniques described below were used to estimate fair value of financial instruments measured on a non-recurring basis at September 30, 2026 and December 31, 2025.
Individually Analyzed Collateral Dependent Loans/Impaired Loans
The fair value of collateral dependent loans that are individually analyzed or were previously deemed impaired is measured based on the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the loan's observable market price or the fair value of the collateral if the loan is collateral dependent. For individually analyzed loans measured for impairment based on the fair value of the underlying collateral, fair value was estimated using a market approach. The Company measures the fair value of collateral underlying impaired loans primarily through obtaining independent appraisals that rely upon quoted market prices for similar assets in active markets. These appraisals include adjustments, on an individual case-by-case basis, to comparable assets based on the appraisers’ market knowledge and experience, as well as adjustments for estimated costs to sell between 6 % and 8 %. For non-collateral dependent loans, management estimates fair value using discounted cash flows based on inputs that are largely unobservable. The Company classifies these loans as Level 3 within the fair value hierarchy.
51
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
14. Fair Value Measurements (continued)
Other Real Estate Owned
Other real estate owned is initially recorded at the lower of the recorded investment in the loan at the time of foreclosure or at fair value, less estimated costs to sell, when acquired. Fair value is generally based on an independent appraisal which includes adjustments to comparable assets based on the appraisers' market knowledge and experience. Subsequent write-downs in the value of other real estate owned is recorded through expense as incurred. Other real estate owned is considered Level 3 within the fair value hierarchy.
Mortgage Servicing Rights, Net ("MSR's")
Mortgage servicing rights are carried at the lower of cost or estimated fair value. The estimated fair value of MSR's is obtained through an analysis of future cash flows, incorporating assumptions that market participants would use in determining fair value including market discount rates, prepayments speeds, servicing income, servicing costs, default rates and other market driven data, including the market's perception of future interest rate movements. The prepayment speed and the discount rate are considered two of the most significant inputs in the model. A significant degree of judgment is involved in valuing the mortgage servicing rights using Level 3 inputs. The use of different assumptions could have a significant effect on this fair value estimate.
The following tables present the assets and liabilities reported on the Consolidated Statements of Financial Condition at their fair values on a non-recurring basis at September 30, 2026 and December 31, 2025, by level within the fair value hierarchy:
| September 30, 2026 | |||||||||||||||||||||||
| Fair Value Measurements | |||||||||||||||||||||||
| Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Impaired loans | $ | $ | $ | $ | |||||||||||||||||||
| Mortgage servicing rights | |||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||
| Fair Value Measurements | |||||||||||||||||||||||
| Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Impaired loans | $ | $ | $ | $ | |||||||||||||||||||
| Mortgage servicing rights | |||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||
52
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
14. Fair Value Measurements (continued)
The following table presents information for Level 3 assets measured at fair value on a non-recurring basis at September 30, 2026 and December 31, 2025:
| September 30, 2026 | |||||||||||||||||||||||||||||
| Fair Value | Valuation Methodology | Unobservable Inputs | Range of Inputs | Weighted Average Rate | |||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||
| Impaired loans | $ | Other | Liquidation value (1) | ||||||||||||||||||||||||||
| Mortgage servicing rights | $ | Discounted cash flow | Prepayment speeds and discount rates (5) | % | |||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||
| Fair Value | Valuation Methodology | Unobservable Inputs | Range of Inputs | Weighted Average Rate | |||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||
| Impaired loans | $ | Appraisal / Other | Discount for cost to sell (2) | ||||||||||||||||||||||||||
| Mortgage servicing rights | $ | Discounted cash flow | Prepayment speeds and discount rates (4) | % | |||||||||||||||||||||||||
| (1) Based on liquidation values. | |||||||||||||||||||||||||||||
| (2) Value based on management's estimate of selling costs including real estate brokerage commissions, title transfer and other fees. Other includes accounts receivable aging or other collateral value. | |||||||||||||||||||||||||||||
| (3) For real estate secured loans. | |||||||||||||||||||||||||||||
(4) Value of SBA servicing rights based on a discount rate of | |||||||||||||||||||||||||||||
(5) Value of SBA servicing rights based on a discount rate of | |||||||||||||||||||||||||||||
Other Fair Value Disclosures
The Company is required to disclose estimated fair value of financial instruments, both assets and liabilities on and off the balance sheet, for which it is practicable to estimate fair value. A description of the valuation methodologies used for those assets and liabilities not recorded at fair value on a recurring or non-recurring basis are set forth below.
Cash and Cash Equivalents
For cash and due from banks, federal funds sold and short-term investments, the carrying amount approximates fair value due to their nature and short-term maturities.
Debt Securities Held to Maturity
For debt securities held to maturity, fair value was estimated using a market approach. The majority of the Company’s securities are fixed income instruments that are not quoted on an exchange but are traded in active markets. Prices for these instruments are obtained through third-party data service providers or dealer market participants with which the Company has historically transacted both purchases and sales of securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing, a Level 2 input, is a mathematical technique used principally to value certain securities to benchmark or to compare securities. The Company evaluates the quality of Level 2 matrix pricing through comparison to similar assets with greater liquidity and evaluation of projected cash flows. As the Company is responsible for the determination of fair value, it performs quarterly analysis on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Company compares the prices received from the pricing service to a secondary pricing source. Additionally, the Company compares changes in the reported market values and returns to relevant market indices to assess the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation
53
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
14. Fair Value Measurements (continued)
provided by independent pricing services has not historically resulted in an adjustment in the prices obtained from the pricing service. The Company also holds debt instruments issued by the U.S. government and U.S. government sponsored agencies that are traded in active markets with readily accessible quoted market prices that are considered Level 1 inputs within the fair value hierarchy.
Federal Home Loan Bank Stock ("FHLB") and Federal Reserve Bank ("FRB") Stock
The fair value of FHLB stock is based on redemption at par value and can only be sold to the issuing FHLB, to other FHLBs, or to other member banks. The Bank is also a member of the Federal Reserve Bank of New York and is required to own a certain amount of FRB stock. As such, the Company's FHLB and FRB stocks are recorded at cost, or par value, and are evaluated for impairment each reporting period by considering the ultimate recoverability of the investment rather than temporary declines in value. The Company classifies the estimated fair value as Level 2 within the fair value hierarchy.
Loans Receivable
Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial mortgage, residential mortgage, commercial, construction, consumer, and other. Each loan category is further segmented into fixed and adjustable rate interest terms and into performing and non-performing categories.
The fair value of performing loans was estimated using a combination of techniques, including a discounted cash flow model that utilizes a discount rate that reflects the Company's current pricing for loans with similar characteristics and remaining maturity, adjusted by an amount for estimated credit losses inherent in the portfolio at the balance sheet date. The rates take into account the expected yield curve, as well as an adjustment for prepayment risk, when applicable. The Company classifies the estimated fair value of its loan portfolio as Level 3.
The fair value for significant non-performing loans was based on recent external appraisals of collateral securing such loans, adjusted for the timing of anticipated cash flows. The Company classifies the estimated fair value of its non-performing loan portfolio as Level 3.
Deposits
The fair value of deposits with no stated maturity, such as demand, money market, and savings and club deposits are payable on demand at each reporting date and classified as Level 2. The estimated fair value of certificates of deposit was based on the discounted value of contractual cash flows. The discount rate was estimated using the Company’s current rates offered for deposits with similar remaining maturities. The Company classifies the estimated fair value of its certificates of deposit portfolio as Level 2.
Borrowings
The fair value of borrowings was estimated by discounting future cash flows using rates available for debt with similar terms and maturities and is classified by the Company as Level 2 within the fair value hierarchy.
Commitments to Extend Credit and Letters of Credit
The fair value of commitments to extend credit and letters of credit was estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counter-parties. For fixed rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value estimates of commitments to extend credit and letters of credit are deemed immaterial.
The following tables present the assets and liabilities reported on the Consolidated Statements of Financial Condition at their fair values at September 30, 2026 and December 31, 2025:
54
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
14. Fair Value Measurements (continued)
| September 30, 2026 | |||||||||||||||||||||||||||||
| Fair Value Measurements | |||||||||||||||||||||||||||||
| Carrying Value | Total Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||
| Financial assets: | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Debt securities available for sale | |||||||||||||||||||||||||||||
| Debt securities held to maturity | |||||||||||||||||||||||||||||
| Equity securities | |||||||||||||||||||||||||||||
| Federal Home Loan Bank and Federal Reserve Bank stock | |||||||||||||||||||||||||||||
| Loans receivable, net | |||||||||||||||||||||||||||||
| Derivative assets | |||||||||||||||||||||||||||||
| Financial liabilities: | |||||||||||||||||||||||||||||
| Deposits | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Borrowings | |||||||||||||||||||||||||||||
| Derivative liabilities | |||||||||||||||||||||||||||||
55
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
14. Fair Value Measurements (continued)
| December 31, 2025 | |||||||||||||||||||||||||||||
| Fair Value Measurements | |||||||||||||||||||||||||||||
| Carrying Value | Total Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||
| Financial assets: | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Debt securities available for sale | |||||||||||||||||||||||||||||
| Debt securities held to maturity | |||||||||||||||||||||||||||||
| Equity securities | |||||||||||||||||||||||||||||
| Federal Home Loan Bank stock | |||||||||||||||||||||||||||||
| Loans receivable, net | |||||||||||||||||||||||||||||
| Derivative assets | |||||||||||||||||||||||||||||
| Financial liabilities: | |||||||||||||||||||||||||||||
| Deposits | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Borrowings | |||||||||||||||||||||||||||||
| Derivative liabilities | |||||||||||||||||||||||||||||
Limitations
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because limited markets exist for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.
Fair value estimates are based on existing on and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial assets or liabilities include goodwill and intangible assets, deferred tax assets and liabilities, office properties and equipment, and bank-owned life insurance.
56
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
15. Other Comprehensive Income (Loss)
| For the Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| Before Tax | Tax Effect | After Tax | Before Tax | Tax Effect | After Tax | ||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| Components of other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||
| Unrealized gain on debt securities available for sale: | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
| Accretion of unrealized gain on debt securities reclassified as held to maturity | ( | ||||||||||||||||||||||||||||||||||
| Reclassification adjustment for (loss) gain on debt securities available for sale included in net income | ( | ( | |||||||||||||||||||||||||||||||||
| ( | ( | ( | |||||||||||||||||||||||||||||||||
| Derivatives: | |||||||||||||||||||||||||||||||||||
| Unrealized gain (loss) on swap contracts accounted for as cash flow hedges | ( | ( | ( | ||||||||||||||||||||||||||||||||
| ( | ( | ( | |||||||||||||||||||||||||||||||||
| Employee benefit plans: | |||||||||||||||||||||||||||||||||||
| Amortization of prior service cost included in net income | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Reclassification adjustment of actuarial net gain included in net income | ( | ||||||||||||||||||||||||||||||||||
| Change in funded status of retirement obligations | ( | ( | ( | ||||||||||||||||||||||||||||||||
| ( | ( | ( | |||||||||||||||||||||||||||||||||
| Total other comprehensive income (loss) | $ | ( | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||
57
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
15. Other Comprehensive Income (Loss) (continued)
| For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| Before Tax | Tax Effect | After Tax | Before Tax | Tax Effect | After Tax | ||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| Components of other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||
| Unrealized gain on debt securities available for sale: | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
| Accretion of unrealized gain (loss) on debt securities reclassified as held to maturity | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Reclassification adjustment for (loss) gain on debt securities available for sale included in net income | ( | ( | ( | ||||||||||||||||||||||||||||||||
| ( | ( | ( | |||||||||||||||||||||||||||||||||
| Derivatives: | |||||||||||||||||||||||||||||||||||
| Unrealized gain (loss) on swap contracts accounted for as cash flow hedges | ( | ( | ( | ||||||||||||||||||||||||||||||||
| ( | ( | ( | |||||||||||||||||||||||||||||||||
| Employee benefit plans: | |||||||||||||||||||||||||||||||||||
| Amortization of prior service cost included in net income | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Reclassification adjustment of actuarial net gain included in net income | ( | ||||||||||||||||||||||||||||||||||
| Change in funded status of retirement obligations | ( | ( | |||||||||||||||||||||||||||||||||
| ( | ( | ||||||||||||||||||||||||||||||||||
| Total other comprehensive income (loss) | $ | ( | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||
58
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
15. Other Comprehensive Income (Loss) (continued)
| For the Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized (Losses) on Debt Securities Available for Sale | Unrealized Gains (Losses) on Swaps | Employee Benefit Plans | Accumulated Other Comprehensive (Loss) | Unrealized (Losses) on Debt Securities Available for Sale | Unrealized Gains (Losses) on Swaps | Employee Benefit Plans | Accumulated Other Comprehensive (Loss) | ||||||||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | ( | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||
| Current period changes in other comprehensive income (loss) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
| Total other comprehensive income (loss) | $ | ( | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||
| For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized (Losses) on Debt Securities Available for Sale | Unrealized Gains (Losses) on Swaps | Employee Benefit Plans | Accumulated Other Comprehensive (Loss) | Unrealized (Losses) on Debt Securities Available for Sale | Unrealized Gains (Losses) on Swaps | Employee Benefit Plans | Accumulated Other Comprehensive (Loss) | ||||||||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||
| Current period changes in other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Total other comprehensive income (loss) | $ | ( | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||
59
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
15. Other Comprehensive Income (Loss) (continued)
The following tables reflect amounts reclassified from accumulated other comprehensive income (loss) to the Consolidated Statements of Income and the affected line item in the statement where net income is presented for the three and nine months ended September 30, 2026 and 2025:
| Accumulated Other Comprehensive Income (Loss) Components | ||||||||||||||||||||
| For the Three Months Ended September 30, | Affected Line Items in the Consolidated Statements of Income | |||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| Reclassification adjustment for (loss) gain on debt securities available for sale included in net income | $ | ( | $ | Gain on securities transactions | ||||||||||||||||
| Reclassification adjustment of actuarial net gain included in net income | Other non-interest expense | |||||||||||||||||||
| Total before tax | ( | |||||||||||||||||||
| Income tax expense | ( | |||||||||||||||||||
| Net of tax | $ | ( | $ | |||||||||||||||||
| Accumulated Other Comprehensive Income (Loss) Components | ||||||||||||||||||||
| For the Nine Months Ended September 30, | Affected Line Items in the Consolidated Statements of Income | |||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||
| Reclassification adjustment for (loss) gain on debt securities available for sale included in net income | $ | ( | $ | Gain on securities transactions | ||||||||||||||||
| Reclassification adjustment of actuarial net gain included in net income | Other non-interest expense | |||||||||||||||||||
| Total before tax | ( | |||||||||||||||||||
| Income tax expense | ( | |||||||||||||||||||
| Net of tax | $ | ( | $ | |||||||||||||||||
60
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
16. Derivatives and Hedging Activities
The Company uses derivative financial instruments as components of its market risk management, principally to manage interest rate risk. Certain derivatives are entered into in connection with transactions with commercial customers. Derivatives are not used for speculative purposes. All derivatives are recognized as either assets or liabilities in the Consolidated Statements of Financial Condition, reported at fair value and presented on a gross basis. Until a derivative is settled, a favorable change in fair value results in an unrealized gain that is recognized as an asset, while an unfavorable change in fair value results in an unrealized loss that is recognized as a liability.
The Company generally applies hedge accounting to its derivatives used for market risk management purposes. Hedge accounting is permitted only if specific criteria are met, including a requirement that a highly effective relationship exists between the derivative instrument and the hedged item, both at inception of the hedge and on an ongoing basis. Changes in the fair value of effective fair value hedges are recognized in current earnings (with the change in fair value of the hedged asset or liability also recognized in earnings). Changes in the fair value of effective cash flow hedges are recognized in other comprehensive income (loss) until earnings are affected by the variability in cash flows of the designated hedged item. Ineffective portions of hedge results are recognized in current earnings. Changes in the fair value of derivatives for which hedge accounting is not applied are recognized in current earnings.
The Company formally documents at inception all relationships between the derivative instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transactions. This process includes linking all derivatives that are designated as hedges to specific assets and liabilities, or to specific firm commitments. The Company also formally assesses, both at inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the fair values or cash flows of the hedged items. If it is determined that a derivative is not highly effective or has ceased to be a highly effective hedge, the Company would discontinue hedge accounting prospectively. Gains or losses resulting from the termination of a derivative accounted for as a cash flow hedge remain in other comprehensive income (loss) and is (accreted) amortized to earnings over the remaining period of the former hedging relationship.
Certain derivative financial instruments are offered to certain commercial banking customers to manage their risk of exposure and risk management strategies. These derivative instruments consist primarily of currency forward contracts and interest rate swap contracts. The risks associated with these transactions is mitigated by simultaneously entering into similar transactions having essentially offsetting terms with a third party. In addition, the Company executes interest rate swaps with third parties in order to hedge the interest rate risk of short-term FHLB advances.
Interest Rate Swaps. At September 30, 2026 and December 31, 2025, the Company had 98 and 92 interest rate swaps in place with commercial banking customers executed by offsetting interest rate swaps with third parties, with aggregated notional amounts of $400.5 million and $387.2 million, respectively. These derivatives are not designated as hedges and are not speculative. These interest rate swaps do not meet hedge accounting requirements.
At September 30, 2026 and December 31, 2025, the Company had 30 and 33 interest rate swaps with notional amounts of $368.7 million and $393.7 million, respectively, hedging certain FHLB advances. These interest rate swaps meet the cash flow hedge accounting requirements. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counter-party in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount.
At September 30, 2026 and December 31, 2025, the Company had no
61
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
16. Derivatives and Hedging Activities (continued)
Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount.
For the three and nine months ended September 30, 2026, and the nine months ended September 30, 2025, there was no 1,000 .
The tables below present the fair value of the Company’s derivative financial instruments as well as their classification in the Consolidated Statements of Financial Condition at September 30, 2026 and December 31, 2025:
| September 30, 2026 | |||||||||||||||||||||||
| Asset Derivative | Liability Derivative | ||||||||||||||||||||||
| Consolidated Statements of Financial Condition | Fair Value | Consolidated Statements of Financial Condition | Fair Value | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Derivatives: | |||||||||||||||||||||||
| Interest rate products - designated hedges | Other Assets | $ | Other Liabilities | $ | |||||||||||||||||||
| Interest rate products - non-designated hedges | Other Assets | Other Liabilities | |||||||||||||||||||||
| Total derivative instruments | $ | $ | |||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||
| Asset Derivative | Liability Derivative | ||||||||||||||||||||||
| Consolidated Statements of Financial Condition | Fair Value | Consolidated Statements of Financial Condition | Fair Value | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Derivatives: | |||||||||||||||||||||||
| Interest rate products - designated hedges | Other Assets | $ | Other Liabilities | $ | |||||||||||||||||||
| Interest rate products - non-designated hedges | Other Assets | Other Liabilities | |||||||||||||||||||||
| Total derivative instruments | $ | $ | |||||||||||||||||||||
For the three months ended September 30, 2026 and 2025, net gains (losses) of $177,000 and $(1,000 ), respectively, were recorded for changes in fair value of interest rate swaps with third parties. For the nine months ended September 30, 2026 and 2025, gains (losses) of $189,000 and $(198,000 ), respectively, were recorded for changes in fair value of interest rate swaps with third parties.
At September 30, 2026 and December 31, 2025, accrued interest (payable) receivable was $(135,000 ) and $13,000 , respectively.
The Company has agreements with counterparties that contain a provision that if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default of its derivative obligations.
At September 30, 2026, the termination value of derivatives in a net asset position, which includes accrued interest, was $3.5 million. The Company normally has collateral posting thresholds with certain of its derivative counterparties, but as of September 30, 2026 had no required posted collateral against its obligations under these agreements.
62
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
17. Segment Reporting
The Company's reportable segment is determined by the President, Chief Executive Officer ("CEO"), who is designated the chief operating decision maker ("CODM"), based upon information provided about the Company's products and services offered, which primarily consists of banking products. The segment is also distinguished by the level of information provided by the CODM, who uses such information to review the performance of various components of the business, which are then aggregated if operating performance, products and services, and customers are similar. The CODM evaluates the financial performance of the Company's business components including revenue streams, significant expenses and budget to actual results in assessing the Company's segments, and in the determination of allocating resources. The CODM uses revenue streams to evaluate product pricing and significant expenses to assess performance and evaluate return on assets. The CODM utilizes consolidated net income to benchmark the Company against its competitors. The benchmarking analysis coupled with the monitoring of budget to actual results are used in assessing performance and in establishing compensation. Loans, investments, and deposits provide the revenue in banking operations. Interest expense, provision for credit losses, and payroll provide the significant expenses in banking operations. All operations are domestic.
18. Revenue Recognition
The Company's revenue includes net interest income on financial instruments and non-interest (loss) income. Most of the Company's revenue is not within the scope of Accounting Standards Codification ASC Topic 606 which does not apply to revenue associated with financial instruments, including interest income on loans and securities, which comprise the majority of the Company's revenue. Revenue-generating activities that are within the scope of this guidance are components of non-interest (loss) income. These revenue streams can generally be classified as demand deposit account fees, title insurance fees, insurance agency income and other fees.
The following table presents non-interest (loss) income, segregated by revenue streams in-scope and out-of-scope of ASC Topic 606, for the three and nine months ended September 30, 2026 and 2025:
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Non-interest (loss) income | |||||||||||||||||||||||
| In-scope of Topic 606: | |||||||||||||||||||||||
| Demand deposit account fees | $ | $ | $ | $ | |||||||||||||||||||
| Title insurance fees | |||||||||||||||||||||||
| Insurance agency income | |||||||||||||||||||||||
| Other non-interest income | |||||||||||||||||||||||
| Total in-scope non-interest income | |||||||||||||||||||||||
| Total out-of-scope non-interest (loss) income | ( | ( | |||||||||||||||||||||
| Total non-interest (loss) income | $ | ( | $ | $ | $ | ||||||||||||||||||
Demand deposit account fees include monthly maintenance fees and service charges. These fees are generally derived as a result of either transaction-based or serviced-based services. The Company's performance obligation for these services is generally satisfied, and revenue recognized, at the time the transaction is completed, or the service rendered. Fees for these services are generally received from the customer either at the time of the transaction or monthly.
Title insurance fees are generally recognized at the time the transaction closes or when the service is rendered.
63
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
18. Revenue Recognition (continued)
Columbia Insurance Services Inc. performs the function of an insurance intermediary, by introducing the policyholder and insurer for life and health, and property and casualty insurance, and is compensated by a commission fee for placement of an insurance policy. Commission and fees are generally recognized as of the effective date of the insurance policy. Commission revenues related to installment billings are recognized on the invoice date. Subsequent commission adjustments are recognized upon the receipt of notification from insurance companies concerning matters necessitating such adjustments.
Other non-interest income includes check printing fees, gift card fees, branch service fees, overdraft fees, account analysis fees, other deposit related fees, wealth management related fee income which includes annuity fees, brokerage commissions, and asset management fees. Wealth management related fee income represents fees earned from customers as consideration for asset management and investment advisory services provided by a third party. The Company's performance obligation is generally satisfied monthly, and the resulting fees are recognized monthly based upon the month-end market value of the assets under management and the applicable fee rate. The Company does not earn performance-based incentives. The Company's performance obligation for these transaction-based services are generally satisfied, and related revenue recognized, at the time the transaction closes or when the service is rendered or a point in time when the service is completed.
Also included in other fees are debit card and ATM fees which are transaction-based. Debit card revenue is primarily comprised of interchange fees earned when a customer's Company card is processed through a card payment network. ATM fees are largely generated when a Company cardholder uses a non-Company ATM, or a non-Company cardholder uses a Company ATM. The Company's performance obligation for these services is satisfied when the service is rendered. Payment is generally received at time of transaction or monthly.
19. Subsequent Events
The Company has evaluated events subsequent to September 30, 2026 and through the financial statement issuance date of November 9, 2026, and has concluded that, except as noted below, no material events occurred that would require disclosure.
Declaration of Quarterly Cash Dividend
On October 29, 2026, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.05 per share to be paid on November 25, 2026, to stockholders of record as of November 10, 2026.
64
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward-Looking Statements
Certain statements contained herein are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” "project," "intend," “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risk factors and uncertainties, including, but not limited to, those set forth in Item 1A of Columbia Financial-Delaware's Annual Report on Form 10-K for the year ended December 31, 2025, as supplemented by its subsequent Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, as well as its impact on fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in regulation and legislation impacting rent-regulation, including recent rent freezes and expanded tenant protections in New York City, changes in interest rates, higher inflation and their impact on national and local economic conditions, the Company's ability to successfully implement its business strategy, acquisitions and the integration of acquired businesses, the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts, the impact of changing political conditions or federal government shutdowns, the adequacy of loan loss reserves, the impact of legal, judicial and regulatory proceedings or investigations, competitive pressures from other financial institutions and financial services companies, credit risk management, asset-liability management, the financial and securities markets, the impact of failures or disruptions in or breaches of the Company's operational or security systems, data or infrastructure, or those of third parties, including as a result of cyber attacks or campaigns, and the availability of and costs associated with sources of liquidity.
In addition, with respect to the Company’s acquisition of Northfield on July 20, 2026, such risks, uncertainties and assumptions, include, among others, the following: (i) the possibility that the anticipated benefits of the proposed transaction, including anticipated cost savings and strategic gains, are not realized when expected or at all, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which the combined company operates; (ii) the possibility that the integration of the two companies may be more difficult, time-consuming or costly than expected; and (iii) the impact of purchase accounting with respect to the transaction, or any change in the assumptions used regarding the assets acquired and liabilities assumed to determine their fair value and credit marks.
The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date made. The Company also advises readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not have any obligation to update any forward-looking statements to reflect any subsequent events or circumstances after the date of this statement.
Comparison of Financial Condition at September 30, 2026 and December 31, 2025
Total assets increased $6.5 billion, or 59.4%, to $17.6 billion at September 30, 2026 from $11.0 billion at December 31, 2025. The increase in total assets was primarily attributable to increases in cash and cash equivalents of $118.0 million, debt securities available for sale of $1.7 billion, debt securities held to maturity of $516.0 million, loans held-for-sale of $211.4 million, loans receivable, net, of $3.4 billion, bank-owned life insurance of $191.8 million and other assets of $157.6 million, mainly due to assets acquired in the Northfield merger.
Cash and cash equivalents increased $118.0 million, or 34.6%, to $458.8 million at September 30, 2026 from $340.8 million at December 31, 2025. The increase was primarily attributable to proceeds raised through the offering and cash and cash equivalents of $76.0 million acquired in the Northfield acquisition.
Debt securities available for sale increased $1.7 billion, or 151.0%, to $2.8 billion at September 30, 2026 from $1.1 billion at December 31, 2025. The increase was primarily attributable to $1.2 billion of securities acquired in the Northfield acquisition, and purchases of $1.7 billion of securities, consisting primarily of U.S. government obligations and mortgage-backed securities which were purchased with proceeds from the second-step conversion offering. These increases were partially offset by sales of securities with an amortized cost of $643.3 million which were acquired in the Northfield acquisition and the sale of an additional $213.9 million of seasoned securities sold as part of a balance sheet repositioning transaction, which resulted in a realized loss of $40.8 million for the quarter ended September 30, 2026. The Company sold predominantly fixed rate, low-yielding debt securities and used the proceeds to repay high costing borrowings acquired from Northfield and purchase higher-yielding debt securities to improve net
65
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
interest rate margin in the future. The increase in debt securities available for sale also included a decrease of $33.9 million in the unrealized loss on securities available for sale.
Debt securities held to maturity increased $516.0 million, or 130.2%, to $912.2 million at September 30, 2026 from $396.2 million at December 31, 2025. The increase was attributable to purchases of securities of $542.8 million, consisting primarily of U.S. government obligations and mortgage-backed securities, partially offset by maturities on securities of $14.9 million, and repayments on securities of $13.1 million.
Loans held-for-sale increased to $211.4 million, at September 30, 2026 from zero at December 31, 2025. A portion of the loans held-for-sale acquired in the Northfield acquisition along with $9.1 million of residential real estate loans originated by Columbia Bank were transferred to loans held-for-sale at fair value and were subsequently sold in October 2026.
Loans receivable, net, increased $3.4 billion, or 41.9%, to $11.7 billion at September 30, 2026 from $8.2 billion at December 31, 2025, primarily due to $3.5 billion of loans acquired in the Northfield acquisition excluding loans held-for sale. One-to-four family real estate loans, multifamily loans, commercial real estate loans, construction loans, commercial business loans and home equity loans and advances increased $84.0 million, $2.0 billion, $774.9 million, $33.1 million, $253.3 million, and $193.8 million, respectively. The allowance for credit losses for loans increased $51.4 million to $118.6 million at September 30, 2026 from $67.2 million at December 31, 2025, primarily due to the Northfield acquisition and organic loan growth during the nine months ended September 30, 2026. As part of the merger with Northfield, the Company acquired $3.5 billion in loans, net of purchase accounting adjustments related to interest rates. The allowance for credit losses increased due to the day 1 Northfield CECL adjustment of $47.1 million recorded as part of the Northfield acquisition.
Bank-owned life insurance increased $191.8 million, or 67.7%, to $474.9 million at September 30, 2026 from $283.1 million at December 31, 2025, as the Company acquired $187.1 million in bank-owned life insurance policies in the Northfield acquisition, and $8.7 million of income was recognized from bank-owned life insurance for the nine months ended September 30, 2026.
Other assets increased $157.6 million, or 47.0%, to $493.3 million at September 30, 2026 from $335.7 million at December 31, 2025 primarily due to $137.9 million in other assets acquired as part of the Northfield acquisition, an increase in net pension assets of $27.0 million, and an increase of $16.6 million in swap contracts.
Total liabilities increased $4.5 billion, or 46.0%, to $14.4 billion at September 30, 2026 from $9.9 billion at December 31, 2025. The increase was primarily attributable to an increase in total deposits of $4.1 billion, primarily due to the addition of Northfield deposits, an increase in borrowings of $312.8 million, and an increase in accrued expenses and other liabilities of $85.9 million. The increase in total deposits consisted of increases in non-interest-bearing demand deposits, interest-bearing demand deposits, money market accounts, savings and club accounts, and certificates of deposits of $810.1 million, $1.4 billion, $254.3 million, $767.6 million and $868.5 million respectively. The increase in each category of deposits largely reflected the impact of deposits acquired from Northfield while also reflecting an increase related to the impact of continuing business development and competitive pricing strategies. The increase in accrued expenses and other liabilities included $76.9 million acquired from Northfield, which primarily consisted of lease liabilities, accrued expenses and benefit plan related liabilities, and an increase in collateral pledged for interest rate swaps. The $312.8 million increase in borrowings was driven by borrowings acquired from Northfield which included a net increase in short-term borrowings of $175.0 million, coupled with new long-term borrowings of $161.8 million, and long-term subordinated debentures assumed from Northfield totaling $62.0 million, partially offset by repayments of $82.0 million in maturing long-term borrowings. Included in these borrowings were $646.4 million assumed in the Northfield acquisition, of which $195.6 million were subsequently prepaid, resulting in a $196,000 loss on extinguishment of debt.
Total stockholders’ equity increased $2.0 billion, or 172.8%, with a balance of $3.2 billion at September 30, 2026 from $1.2 billion and December 31, 2025. The increase in stockholders' equity reflected $1.6 billion in capital stock issued in the Company's second-step conversion coupled with $406.2 million in capital stock issued in conjunction with the acquisition of Northfield. The increase also included net income of $32.8 million, partially offset by dividends declared and paid of $12.9 million.
Comparison of Results of Operations for the Three Months Ended September 30, 2026 and September 30, 2025
Net income of $5.2 million was recorded for the quarter ended September 30, 2026, a decrease of $9.6 million compared to net income of $14.9 million for the quarter ended September 30, 2025. The decrease in net income was primarily attributable to a $23.8 million decrease in non-interest income and a $52.4 million increase in non-interest expense, partially offset by a $57.0 million increase in net interest income, a $512,000 decrease in provision for credit losses and a $9.1 million decrease in income tax expense. Net income for the quarter ended September 30, 2026 included a bargain purchase gain of $25.7 million related to the Northfield
66
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
merger, partially offset by loss on the sale of securities of $40.8 million, loss on the sale of loans of $7.6 million, merger-related expenses of $30.6 million, severance expense of $1.5 million, and a loss on extinguishment of debt $196,000, which decreased net income by $35.4 million, net of tax.
Net interest income was $114.4 million for the quarter ended September 30, 2026, an increase of $57.0 million, or 99.3%, from $57.4 million for the quarter ended September 30, 2025. The increase in net interest income was primarily attributable to a $72.2 million increase in interest income partially offset by a $15.2 million increase in interest expense on deposits and borrowings. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields on loans, while the increase in interest expense was primarily due to an increase in the average balance of both deposits and borrowings. Accretion of loan yield adjustments for the quarter ended September 30, 2026 totaled $6.8 million. Prepayment penalties, which are included in interest income on loans, totaled $771,000 for the quarter ended September 30, 2026, compared to $767,000 for the quarter ended September 30, 2025.
The average yield on loans for the quarter ended September 30, 2026 increased 33 basis points to 5.37%, as compared to 5.04% for the quarter ended September 30, 2025. Interest income on loans increased due to an increase in both the average balance and yield on loans. The average yield on securities for the quarter ended September 30, 2026 increased 55 basis points to 3.96%, as compared to 3.41% for the quarter ended September 30, 2025. The average yield on other interest-earning assets for the quarter ended September 30, 2026 decreased 137 basis points to 3.87%, as compared to 5.24% for the quarter ended September 30, 2025, mainly due to an increase in the average balance of other interest-earning assets invested in lower earning interest-bearing cash accounts, coupled with a 91 basis point decrease in the dividend rate received on Federal Home Loan Bank stock.
Total interest expense was $78.3 million for the quarter ended September 30, 2026, an increase of $15.2 million, or 24.2%, from $63.0 million for the quarter ended September 30, 2025. The increase in interest expense was primarily attributable to increases in the average balance of interest-bearing deposits and borrowings partially offset by a 31 basis point decrease in the average cost of interest-bearing deposits coupled with a 17 basis point decrease in the average cost of borrowings. Interest expense on deposits increased $13.3 million, or 26.8%, primarily due to the increase in the average balances as a result of the Northfield acquisition during the quarter ended September 30, 2026. Interest expense on borrowings increased $2.0 million, or 14.7%, for the quarter ended September 30, 2026 as compared to the quarter ended September 30, 2025 due to an increase in the average balance of borrowings, partially offset by a decrease in the average cost of borrowings.
The Company's net interest margin for the quarter ended September 30, 2026 increased 67 basis points to 2.96% when compared to 2.29%, for the quarter ended September 30, 2025, mostly due to a decrease in the average cost of interest-bearing liabilities. The weighted average yield on interest-earning assets increased 18 basis point to 4.99% for the quarter ended September 30, 2026 as compared to 4.81% for the quarter ended September 30, 2025. The average cost of interest-bearing liabilities decreased 33 basis points to 2.81% for the quarter ended September 30, 2026 as compared to 3.14% for the quarter ended September 30, 2025.
The provision for credit losses on loans for the quarter ended September 30, 2026 was $1.8 million, a decrease of $512,000, or 21.8%, from $2.3 million for the quarter ended September 30, 2025. The decrease in the provision for credit losses was primarily attributable to lower net charge-offs, partially offset by an increase in loan balances.
Non-interest (loss) income was $(13.9) million for the quarter ended September 30, 2026, a decrease of $23.8 million, or 241.0%, from $9.9 million for the quarter ended September 30, 2025, mainly due to a $40.8 million increase in the loss on securities transactions coupled with a $7.6 million loss on transfer of loans to held-for-sale as previously discussed. These decreases were partially offset by a bargain purchase gain of $25.7 million, net of tax, resulting from the Northfield acquisition.
Non-interest expense was $97.5 million for the quarter ended September 30, 2026, an increase of $52.4 million, or 116.3%, from $45.1 million for the quarter ended September 30, 2025. The increase was primarily attributable to an increase in compensation and employee benefits expense of $14.2 million, an increase in occupancy expense of $2.6 million, an increase in merger-related expenses of $30.6 million, and an increase in amortization of intangible assets of $2.9 million due to the Northfield acquisition. The increase in compensation and employee benefits expense was due to an increase in the number of employees and related employee benefits due to the Northfield acquisition and annual merit increases. The increase in occupancy expense was due to the costs related to the Northfield acquisition.
An income tax benefit of $4.1 million was recorded for the quarter ended September 30, 2026, a decrease of $9.1 million, as compared to income tax expense of $5.0 million for the quarter ended September 30, 2025, mainly due to lower pre-tax income partially offset by non-deductible merger-related expenses.
67
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Comparison of Results of Operations for the Nine Months Ended September 30, 2026 and September 30, 2025
Net income of $32.8 million was recorded for the nine months ended September 30, 2026, a decrease of $3.3 million, or 9.0%, compared to net income of $36.1 million for the nine months ended September 30, 2025. The decrease in net income was primarily attributable to a $24.8 million decrease in non-interest income, and a $60.6 million increase in non-interest expense partially offset by a $76.3 million increase in net interest income, a $645,000 decrease in provision for credit losses, and a $5.2 million decrease in income tax expense. Net income for the nine months ended September 30, 2026 included a bargain purchase gain of $25.7 million related to the Northfield merger, partially offset by loss on the sale of securities of $40.8 million, loss on the sale of loans of $7.6 million, merger-related expenses of $33.3 million, severance expense of $1.5 million, and a loss on extinguishment of debt $196,000, which decreased net income by $37.8 million, net of tax.
Net interest income was $237.7 million for the nine months ended September 30, 2026, an increase of $76.3 million, or 47.3%, from $161.4 million for the nine months ended September 30, 2025. The increase in net interest income was primarily attributable to a $84.7 million increase in interest income partially offset by a $8.4 million increase in interest expense on deposits and borrowings. The increase in interest income was primarily due to an increase in the average balance of loans coupled with an increase in the average yield on loans. Accretion of loan yield adjustments for the nine months ended September 30, 2026 totaled $6.8 million, mainly related to the Northfield acquisition. Prepayment penalties, which are included in interest income on loans, totaled $1.5 million for the nine months ended September 30, 2026, compared to $1.6 million for the nine months ended September 30, 2025.
The average yield on loans for the nine months ended September 30, 2026 increased 20 basis points to 5.16%, as compared to 4.96% for the nine months ended September 30, 2025. Interest income on loans increased due to an increase in both the average balance and yield on loans. The average yield on securities for the nine months ended September 30, 2026 increased 23 basis points to 3.70%, as compared to 3.47% for the nine months ended September 30, 2025. The average yield on other interest-earning assets for the nine months ended September 30, 2026 decreased 126 basis points to 4.13%, as compared to 5.39% for the nine months ended September 30, 2025, mainly due to an increase in the average balance of other interest-earning assets invested in lower earning interest-bearing cash accounts, coupled with a lower dividend rate received on Federal Home Loan Bank stock.
Total interest expense was $196.1 million for the nine months ended September 30, 2026, an increase of $8.4 million, or 4.5%, from $187.7 million for the nine months ended September 30, 2025. The increase in interest expense was primarily attributable to an increase in the average balances of interest-bearing deposits and borrowings, partially offset by a 30 basis point decrease in the average cost of interest-bearing deposits coupled with a 27 basis point decrease in the average cost of borrowings mainly related to the Northfield acquisition. Interest expense on deposits increased $6.2 million, or 4.2%, for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025, due to an increase in the average balance of deposits, while interest expense on borrowings increased $2.2 million, or 5.7%, for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025, due to the increase in the average balance of borrowings.
The Company's net interest margin for the nine months ended September 30, 2026 increased 46 basis points to 2.66% when compared to 2.20% for the nine months ended September 30, 2025, due to an increase in the average yield on interest-earning assets coupled with a decrease in the average cost of interest-bearing liabilities. The weighted average yield on interest-earning assets increased 10 basis points to 4.85% for the nine months ended September 30, 2026 as compared to 4.75% for the nine months ended September 30, 2025. The average cost of interest-bearing liabilities decreased 30 basis points to 2.87% for the nine months ended September 30, 2026 as compared to 3.17% for the nine months ended September 30, 2025.
The provision for credit losses for the nine months ended September 30, 2026 was $7.1 million, a decrease of $645,000, or 8.3% from $7.7 million for the nine months ended September 30, 2025. The decrease in the provision for credit losses was primarily attributable to a decrease in net charge-offs, which totaled $2.9 million for the nine months ended September 30, 2026 as compared to $5.2 million for the nine months ended September 30, 2025, partially offset by an increase in loan balances.
Non-interest income was $3.7 million for the nine months ended September 30, 2026, a decrease of $24.8 million, or 87.1%, from $28.5 million for the nine months ended September 30, 2025. The decrease was primarily attributable to a $40.8 million increase in the loss on securities transactions, coupled with a $7.7 million increase in the loss on transfer of loans. These decreases were partially offset by a bargain purchase gain of $25.7 million, net of tax, resulting from the Northfield acquisition, a $2.7 million increase in bank-owned life insurance due to income from the acquisition of such policies in the Northfield acquisition, death benefit claims in the 2026 period, and income related to the transition and exchange into higher yielding bank-owned life insurance policies.
Non-interest expense was $194.4 million for the nine months ended September 30, 2026, an increase of $60.6 million, or 45.3%, from $133.8 million for the nine months ended September 30, 2025. The increase was primarily attributable to an increase in
68
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
compensation and employee benefits expense of $19.8 million, an increase in occupancy expense of $4.0 million, an increase in data processing and software expenses of $2.7 million and an increase in merger-related expenses of $33.3 million, partially offset by a decrease of $2.6 million in professional fees. The increase in compensation and employee benefits expense was due to an increase in the number of employees and related employee benefits due to the Northfield acquisition and annual merit increases. The increase in occupancy expense was due to the costs related to the Northfield branches acquired.
Income tax expense was $7.0 million for the nine months ended September 30, 2026, a decrease of $5.2 million, as compared to income tax expense of $12.3 million for the nine months ended September 30, 2025, mainly due to a decrease in pre-tax income partially offset by non-deductible merger-related expenses.
Asset Quality
The Company's non-performing loans at September 30, 2026, excluding purchased credit deteriorated ("PCD") loans, totaled $36.5 million, or 0.31% of total gross loans, as compared to $38.0 million, or 0.46% of total gross loans, at December 31, 2025. The $1.5 million decrease in non-performing loans was primarily attributable to a decrease in non-performing one-to-four family loans of $5.4 million. This decrease was mainly due to the transfer of $4.9 million of non-performing one-to-four family loans to loans held-for-sale in September 2026, that were sold in October 2026, a decrease in non-performing commercial business loans of $2.8 million, and a decrease in non-performing construction loans of $4.1 million. The decrease in non-performing construction loans was due to one loan of $5.9 million being transferred to other real estate owned in March 2026 and subsequently sold in September 2026. These decreases were partially offset by an increase of $11.6 million in commercial real estate loans, which included a $10.6 million loan on a six-story mixed use building, located in Philadelphia, Pennsylvania, which contains apartments and commercial/storage space designated as non-performing during the 2026 period. Non-performing assets as a percentage of total assets totaled 0.21% at September 30, 2026, as compared to 0.34% at December 31, 2025.
For the quarter ended September 30, 2026, net charge-offs totaled $1.5 million, as compared to net charge-offs of $1.2 million for the quarter ended September 30, 2025. For the nine months ended September 30, 2026, net charge-offs totaled $2.9 million, as compared to net charge-offs of $5.2 million for the nine months ended September 30, 2025. Charge-offs for the nine months ended September 30, 2025 included $3.2 million in charge-offs related to PCD equipment finance loans purchased in May 2025.
The Company's allowance for credit losses on loans was $118.6 million, or 1.02% of total gross loans, at September 30, 2026, compared to $67.2 million, or 0.82% of total gross loans, at December 31, 2025. The increase in the allowance for credit losses for loans was primarily due to the day 1 Northfield CECL adjustment of $47.1 million recorded as part of the Northfield acquisition.
Critical Accounting Policies
The Company considers certain accounting policies to be critically important to the fair presentation of its Consolidated Statements of Financial Condition and Consolidated Statements of Income. These policies require management to make significant judgments and assumptions on matters which by their nature have elements of uncertainty. The sensitivity of the Company’s consolidated financial statements to these critical accounting policies, and the assumptions, estimates and judgments applied, could have a material impact on its financial condition and results of operations. These assumptions, estimates and judgments we use can be influenced by a number of factors, including the general economic environment. The Company has identified the following as critical accounting policies:
▪Adequacy of the allowance for credit losses
▪Valuation of deferred tax assets
▪Business combinations- fair value of acquired assets and liabilities
▪Valuation of retirement and post-retirement benefits
The determination of the allowance for credit losses (“ACL”) on loans is considered a critical accounting estimate by management because of the high degree of judgment involved in determining qualitative loss factors, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment. The ACL is maintained at a level management considers adequate to provide for estimated losses and impairment based upon an evaluation of known and inherent risk in the loan portfolio. The ACL consists of two elements: (1) identification of loans that must be individually analyzed for impairment and (2) establishment of an ACL for loans collectively analyzed.
Portfolio segments are defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Management developed segments for estimating losses based on the type of borrower and collateral
69
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
which is generally based upon federal call report segmentation. The segments have been combined or sub-segments have been added as needed to ensure loans of similar risk profiles are appropriately pooled.
We maintain a loan review system that provides a periodic review of the loan portfolio and the identification of individually analyzed loans. The ACL for individually analyzed loans is based on the fair value of collateral or cash flows. While management uses current information available to make such evaluations, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used in making the evaluations.
The ACL quantitative allowance for each segment is measured using a discounted cash flow methodology incorporating an econometric, probability of default (“PD”) and loss given default (“LGD”) with distinct segment-specific multi-variate regression models applied. Expected credit losses are estimated over the life of the loans by measuring the difference between the net present value of modeled cash flows and amortized cost basis. Contractual cash flows over the contractual life of the loans are the basis for the modeled cash flows, adjusted for model defaults and expected prepayments and discounted at the loan-level effective interest rate. The contractual term excludes expected extensions, renewals, and modifications.
Management estimates the ACL using relevant and reliable information from internal and external sources, related to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience for both the Company and its segment-specific peers provides the basis for the estimate of expected credit losses. Credit losses over a defined period are converted to PD rate curves through the use of segment-specific LGD risk factors that convert default rates to loss severity based on industry-level, observed relationships between the two variables for each segment, primarily due to the nature of the underlying collateral. These risk factors were assessed for reasonableness against the Company’s own loss experience and adjusted in certain cases when the relationship between the Company’s historical default and loss severity deviates from that of the wider industry. The historical PD curves, together with corresponding economic conditions, establish a quantitative relationship between economic conditions and loan performance through an economic cycle.
Using the historical relationship between economic conditions and loan performance, management’s expectation of future loan performance is incorporated using a single economic forecast of macroeconomic variables (i.e., unemployment, gross domestic product, vacancy, and home price index). This forecast is applied over a period that management has determined to be reasonable and supportable. Beyond the period over which management can develop or source a reasonable and supportable forecast, the model reverts to long-term average historical loss rates using a straight-line, time-based methodology. The Company's current forecast period is six quarters, with a four-quarter reversion period to long-term average historical loss rates.
After quantitative considerations, management applies additional qualitative adjustments that consider the expected impact of certain factors not fully captured in the quantitative reserve. Qualitative adjustments include but are not limited to concentrations of large loan balances, delinquency trends, change in collateral values within segments, and other considerations.
The ACL is established through the provision for credit losses that are charged to income, which is based upon an evaluation of estimated losses in the current loan portfolio, including the evaluation of individually analyzed loans. Charge-offs against the ACL are taken on loans where management determines that the collection of loan principal and interest is unlikely. Recoveries made on loans that have been charged-off are credited to the ACL. Although we believe we have established and maintained the ACL on loans at appropriate levels, changes in reserves may be necessary if actual economic and other conditions differ substantially from the forecast used in estimating the ACL.
Our financial results are affected by the changes in and the level of the ACL. This process involves our analysis of internal and external variables, and it requires that we exercise judgment to estimate an appropriate ACL. As a result of the uncertainty associated with this subjectivity, we cannot assure the precision of the amount reserved should we experience sizable loan losses in any particular period and/or significant changes in assumptions or economic condition. We believe the primary risks inherent in the portfolio are a general decline in the economy, a decline in real estate market values, rising unemployment, increasing vacancy rates, and increases in interest rates in the absence of economic improvement or any other such factors. Any one or a combination of these events may adversely affect a borrower's ability to repay its loan, resulting in increased delinquencies and loan losses. Accordingly, we have recorded loan credit losses at a level which is estimated to represent the current risk in the loan portfolio.
Most of our non-performing assets are collateral dependent loans which are written down to the fair value of the collateral less estimated costs to sell. We continue to assess the collateral of these loans and obtain updated appraisals on these loans on an annual basis. To the extent the property values decline, there could be additional losses on these non-performing assets, which may be material. Management considered these market conditions in deriving the estimated ACL. Should economic difficulties occur, the ultimate amount of loss could vary from our current estimate.
70
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The determination of whether deferred tax assets will be realizable is predicated on the reversal of existing deferred tax liabilities, utilization against carry-back years, and projections of future taxable income. These estimates are subject to management’s judgment. A valuation allowance is established when management is unable to conclude that it is more likely than not that it will realize deferred tax assets based on the nature and timing of these items. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period enacted. Management believes, based on current facts, that it is more likely than not that there will be sufficient taxable income in future years to realize federal deferred tax assets and the benefits from certain state temporary differences. No valuation allowance was deemed necessary at September 30, 2026 and December 31, 2025. Based upon projections of future taxable income and the ability to carryforward operating losses indefinitely, management believes it is more likely than not the Company will realize the remaining deferred tax assets.
Business combinations are generally accounted for under the acquisition method of accounting whereby assets acquired and liabilities assumed in business combinations are recorded at their estimated fair value as of the acquisition date. The determination of fair value may involve the use of internal or third-party valuation specialists to assist in the determination of the fair value of certain assets and liabilities at the acquisition date, including loans, core deposit intangibles and time deposits. The excess of the fair values over the cost of acquisition is recognized as a bargain purchase gain. A description of the valuation methodologies used to estimate the fair values of the significant assets acquired and liabilities assumed can be found in Note 3 "Acquisition" within the notes to the consolidated financial statements.
The Company provides certain health care and life insurance benefits, along with a split dollar BOLI death benefit, to eligible retired employees. The cost of retiree health care and other benefits during the employees' period of active service are accrued monthly. The accounting guidance requires the following: (a) recognize in the statement of financial position the over funded or underfunded status of a defined benefit post-retirement plan measured as the difference between the fair value of plan assets and the benefit obligations; (b) measure a plan's assets and its obligations that determine its funded status as of the end of the Company's fiscal year (with limited exceptions); and (c) recognize as a component of other comprehensive income (loss), net of tax, the actuarial gain and losses and the prior service costs and credits that arise during the period. These assets and liabilities and expenses are based upon actuarial assumptions including interest rates, rates of increase in compensation, expected rate of return on plan assets and the length of time we will have to provide those benefits. Actual results may differ from these assumptions. These assumptions are reviewed and updated at least annually, and management believes the estimates are reasonable.
71
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Qualitative Analysis. Interest rate risk is defined as the exposure of a Company's current and future earnings and capital arising from movements in market interest rates. The guidelines of the Company’s interest rate risk policy seek to limit the exposure to changes in interest rates that affect the underlying economic value of assets, liabilities, earnings and capital.
The Asset/Liability Committee meets regularly to review the impact of interest rate changes on net interest income, net interest margin, net income, and the economic value of equity. The Asset/Liability Committee reviews a variety of strategies that project changes in asset or liability mix and the impact of those changes on projected net interest income and net income.
The Company’s strategy for liabilities has been to maintain a stable funding base by focusing on core deposit accounts. The Company’s ability to retain maturing time deposit accounts is the result of its strategy to remain competitively priced within its marketplace. The Company’s pricing strategy may vary depending upon current funding needs and the ability of the Company to fund operations through alternative sources.
Quantitative Analysis. Current and future sensitivity to changes in interest rates are measured through the use of balance sheet and income simulation models. The analysis captures changes in net interest income using flat rates as a base and rising and declining interest rate forecasts. Changes in net interest income and net income for the forecast period, generally twelve to twenty-four months, are measured and compared to policy limits for acceptable changes. The Company periodically reviews historical deposit re-pricing activity and makes modifications to certain assumptions used in its balance sheet and income simulation models regarding the interest rate sensitivity of deposits. These modifications are made to more closely reflect the most likely results under the various interest rate change scenarios. Since it is inherently difficult to predict the sensitivity of interest-bearing deposits to changes in interest rates, the changes in net interest income due to changes in interest rates cannot be precisely predicted. There are a variety of reasons that may cause actual results to vary considerably from the predictions presented below which include, but are not limited to, the timing, magnitude, and frequency of changes in interest rates, interest rate spreads, prepayments, and actions taken in response to such changes.
Assumptions used in the simulation model may include but are not limited to:
•Securities pricing from third parties;
•Loan pricing indications from third parties;
•Loan and depository spread assumptions based upon the Company's product offerings;
•Securities and borrowing spreads based upon third party indications; and
•Prepayment assumptions derived from the Company's actual results and third party surveys.
Certain shortcomings are inherent in the methodologies used in the interest rate risk measurements. Modeling changes in net interest income requires the use of certain assumptions regarding prepayment and deposit repricing, which may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. While management believes such assumptions are reasonable, there can be no assurance that assumed prepayment rates and repricing rates will approximate actual future asset prepayment and liability repricing activity.
The table below sets forth an approximation of our interest rate exposure. Net interest income assumes that the composition of interest sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and also assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration to maturity or repricing of specific assets and liabilities. Accordingly, although the net interest income table provides an indication of our interest rate risk exposure at a particular point in time, such measurement is not intended to and does not provide a precise forecast of the effect of changes in market interest rates on our net interest income and will differ from actual.
The table below sets forth, as of September 30, 2026, the net portfolio value, the estimated changes in the net portfolio value, and the net interest income that would result from the designated instantaneous parallel changes in market interest rates. This data is for Columbia Bank and its subsidiaries only and does not include any assets of Columbia Financial, Inc.
72
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
| Twelve Months Net Interest Income | Net Portfolio Value ("NPV") | ||||||||||||||||||||||||||||||||||
| Change in Interest Rates (Basis Points) | Amount | Dollar Change | Percent Change | Estimated NPV | Present Value Ratio | Percent Change | |||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
| +300 | $ | 475,750 | $ | (33,292) | (6.54) | % | $ | 2,933,239 | 18.99 | % | (17.76) | % | |||||||||||||||||||||||
| +200 | 490,532 | (18,510) | (3.64) | 3,160,435 | 19.91 | (11.39) | |||||||||||||||||||||||||||||
| +100 | 501,083 | (7,959) | (1.56) | 3,375,943 | 20.69 | (5.35) | |||||||||||||||||||||||||||||
| Base | 509,042 | — | — | 3,566,715 | 21.28 | — | |||||||||||||||||||||||||||||
| -100 | 515,250 | 6,208 | 1.22 | 3,716,563 | 21.61 | 4.20 | |||||||||||||||||||||||||||||
| -200 | 521,306 | 12,264 | 2.41 | 3,793,673 | 21.54 | 6.36 | |||||||||||||||||||||||||||||
| -300 | 528,226 | 19,184 | 3.77 | 3,809,555 | 21.14 | 6.81 | |||||||||||||||||||||||||||||
As of September 30, 2026, based on the scenarios above, net interest income would decrease by approximately 3.64% if rates were to rise 200 basis points, and would increase by 2.41% if rates were to decrease 200 basis points over a one-year time horizon.
Another measure of interest rate sensitivity is to model changes in net portfolio value through the use of immediate and sustained interest rate shocks. As of September 30, 2026, based on the scenarios above, in the event of an immediate and sustained 200 basis point increase in interest rates, the NPV is projected to decrease 11.39%. If rates were to decrease 200 basis points, the model forecasts a 6.36% increase in the NPV.
Overall, our September 30, 2026 results indicate that we are adequately positioned with an acceptable net interest income and economic value at risk in all scenarios and that all interest rate risk results continue to be within our policy guidelines.
Liquidity Management and Capital Resources:
Liquidity Management. Liquidity refers to the Company's ability to generate adequate amounts of cash to meet financial obligations of a short-term and long-term nature. Sources of funds consist of deposit inflows, loan repayments and maturities, maturities and sales of securities, and the ability to execute new borrowings. While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows, calls of debt securities, and prepayments on loans and mortgage-backed securities are influenced by economic conditions, competition, and interest rate movements.
The Company's cash flows are identified as cash flows from operating activities, investing activities and financing activities. Refer to the Consolidated Statements of Cash Flows for further details of the cash inflows and outflows of the Company.
We mitigate liquidity risk by attempting to structure our balance sheet prudently and by maintaining diverse borrowing resources to fund potential cash needs. For example, we structure our balance sheet so that we fund less liquid assets, such as loans, with stable funding sources, such as retail deposits, long-term debt, wholesale borrowings, and capital. We assess liquidity needs arising from asset growth, maturing obligations, and deposit withdrawals, taking into account operations in both the normal course of business and times of unusual events. In addition, we consider our off-balance sheet arrangements and commitments that may impact liquidity in certain business environments.
Our Asset/Liability Committee measures liquidity risks, sets policies to manage these risks, and reviews adherence to those policies at its quarterly meetings. For example, we manage the use of short-term unsecured borrowings as well as total wholesale funding through policies established and reviewed by our Asset/Liability Committee. In addition, the Risk Committee of our board of directors reviews liquidity limits and reviews current and forecasted liquidity positions at each of its regularly scheduled meetings.
We have contingency funding plans that assess liquidity needs that may arise from certain stress events such as rapid asset growth or financial market disruptions. Our contingency plans also provide for continuous monitoring of net borrowed funds and dependence and available sources of contingent liquidity. These sources of contingent liquidity include cash and cash equivalents, capacity to borrow at the Federal Reserve discount window and through the FHLB system, fed funds purchased from other banks and the ability to sell, pledge or borrow against unencumbered securities in our securities portfolio. The potential liquidity from these sources is an amount we believe currently exceeds any contingent liquidity need. As of September 30, 2026 and
73
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
December 31, 2025, the Company had immediate access to approximately $4.3 billion and $3.1 billion, respectively, of funding from these sources, with additional unpledged loan collateral of approximately $4.4 billion and $3.0 billion, respectively.
Capital Resources. The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking regulators, including a risk-based capital measure. The Federal Reserve establishes capital requirements, including well capitalized standards, for the consolidated financial holding company, and the Office of the Comptroller of the Currency (the "OCC") has similar requirements for the Bank. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's Consolidated Statements of Financial Condition.
Federal regulators require federally insured depository institutions to meet several minimum capital standards: (1) total capital to risk-weighted assets of 8.0%; (2) tier 1 capital to risk-weighted assets of 6.0%; (3) common equity tier 1 capital to risk-weighted assets of 4.5%; and (4) tier 1 capital to adjusted total assets of 4.0%. In addition to establishing the minimum regulatory capital requirements, the regulations limit capital distributions and certain discretionary bonus payments to management if the institution does not hold a “capital conservation buffer” consisting of 2.5% of common equity tier 1 capital to risk-weighted assets above the amount necessary to meet its minimum risk-based capital requirements. The regulators established a framework for the classification of savings institutions into five categories: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. Generally, an institution is considered well capitalized if it has: a total capital to risk-weighted assets ratio of at least 10.0%, a tier 1 capital to risk-weighted assets ratio of at least 8.0%, a common tier 1 capital to risk-weighted assets ratio of at least 6.5%, and a tier 1 capital to adjusted total assets ratio of at least 5.0%. As of September 30, 2026 and December 31, 2025, each of the Company and Columbia Bank exceeded all capital adequacy requirements to which it is subject.
The following tables present the Company's and Columbia Bank's actual capital amounts and ratios at September 30, 2026 and December 31, 2025 compared to the Federal Reserve Bank minimum capital adequacy requirements and the Federal Reserve Bank requirements for classification as a well-capitalized institution:
| Actual | Minimum Capital Adequacy Requirements | Minimum Capital Adequacy Requirements with Capital Conservation Buffer | To be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||||||||||||||
| Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||
| Company | (In thousands, except ratio data) | ||||||||||||||||||||||||||||||||||
At September 30, 2026: | |||||||||||||||||||||||||||||||||||
| Total capital (to risk-weighted assets) | $ | 3,203,008 | 25.75 | % | $ | 995,064 | 8.00 | % | $ | 1,306,022 | 10.50 | % | N/A | N/A | |||||||||||||||||||||
| Tier 1 capital (to risk-weighted assets) | 3,021,694 | 24.29 | 746,298 | 6.00 | 1,057,256 | 8.50 | N/A | N/A | |||||||||||||||||||||||||||
| Common equity tier 1 capital (to risk-weighted assets) | 3,014,477 | 24.24 | 559,724 | 4.50 | 870,681 | 7.00 | N/A | N/A | |||||||||||||||||||||||||||
| Tier 1 capital (to adjusted total assets) | 3,021,694 | 18.39 | 657,342 | 4.00 | 657,342 | 4.00 | N/A | N/A | |||||||||||||||||||||||||||
At December 31, 2025: | |||||||||||||||||||||||||||||||||||
| Total capital (to risk-weighted assets) | $ | 1,196,057 | 14.92 | % | $ | 641,506 | 8.00 | % | $ | 841,976 | 10.50 | % | N/A | N/A | |||||||||||||||||||||
| Tier 1 capital (to risk-weighted assets) | 1,125,002 | 14.03 | 481,129 | 6.00 | 681,600 | 8.50 | N/A | N/A | |||||||||||||||||||||||||||
| Common equity tier 1 capital (to risk-weighted assets) | 1,117,785 | 13.94 | 360,847 | 4.50 | 561,317 | 7.00 | N/A | N/A | |||||||||||||||||||||||||||
| Tier 1 capital (to adjusted total assets) | 1,125,002 | 10.27 | 438,061 | 4.00 | 438,061 | 4.00 | N/A | N/A | |||||||||||||||||||||||||||
74
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
| Actual | Minimum Capital Adequacy Requirements | Minimum Capital Adequacy Requirements with Capital Conservation Buffer | To be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||||||||||||||
| Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||
| Columbia Bank | (In thousands, except ratio data) | ||||||||||||||||||||||||||||||||||
At September 30, 2026: | |||||||||||||||||||||||||||||||||||
| Total capital (to risk-weighted assets) | $ | 2,457,139 | 19.77 | % | $ | 994,199 | 8.00 | % | $ | 1,304,887 | 10.50 | % | $ | 1,242,749 | 10.00 | % | |||||||||||||||||||
| Tier 1 capital (to risk-weighted assets) | 2,337,826 | 18.81 | 745,650 | 6.00 | 1,056,337 | 8.50 | 994,199 | 8.00 | |||||||||||||||||||||||||||
| Common equity tier 1 capital (to risk-weighted assets) | 2,337,826 | 18.81 | 559,237 | 4.50 | 869,924 | 7.00 | 807,787 | 6.50 | |||||||||||||||||||||||||||
| Tier 1 capital (to adjusted total assets) | 2,337,826 | 14.23 | 657,062 | 4.00 | 657,062 | 4.00 | 821,327 | 5.00 | |||||||||||||||||||||||||||
At December 31, 2025: | |||||||||||||||||||||||||||||||||||
| Total capital (to risk-weighted assets) | $ | 1,129,574 | 14.09 | % | $ | 641,534 | 8.00 | % | $ | 842,014 | 10.50 | % | $ | 801,918 | 10.00 | % | |||||||||||||||||||
| Tier 1 capital (to risk-weighted assets) | 1,058,519 | 13.20 | 481,151 | 6.00 | 681,630 | 8.50 | 641,534 | 8.00 | |||||||||||||||||||||||||||
| Common equity tier 1 capital (to risk-weighted assets) | 1,058,519 | 13.20 | 360,863 | 4.50 | 561,342 | 7.00 | 521,247 | 6.50 | |||||||||||||||||||||||||||
| Tier 1 capital (to adjusted total assets) | 1,058,519 | 9.67 | 438,029 | 4.00 | 438,029 | 4.00 | 547,536 | 5.00 | |||||||||||||||||||||||||||
75
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Item 4. CONTROLS AND PROCEDURES
An evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and the Principal Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) promulgated under the Securities and Exchange Act of 1934, as amended) as of September 30, 2026. In designing and evaluating the Company’s disclosure controls and procedures, the Company and its management recognize that any controls and procedures, no matter how well-designed and operated, can provide only a reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating and implementing possible controls and procedures. Based on that evaluation, the Company’s management, including the Chief Executive Officer and the Principal Financial Officer, concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective.
During the quarter ended September 30, 2026, there were no changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
76
PART II – OTHER INFORMATION
Item 1. Legal Proceedings
The Company is involved in various legal actions and claims arising in the normal course of business. In the opinion of management, these legal actions and claims are not expected to have a material adverse impact on the Company’s financial condition.
Item 1A. Risk Factors
For information regarding the Company’s risk factors, refer to the Risk Factors previously disclosed under Item 1A of the Columbia Financial-Delaware's Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission on March 6, 2026. As of September 30, 2026, the risk factors of the Company have not materially changed from those disclosed in the Columbia Financial-Delaware's Annual Report on Form 10-K for the year ended December 31, 2025.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
The following table reports information regarding repurchases of the Company's common stock, excluding excise tax during the quarter ended September 30, 2026:
| Period | Total Number of Shares (2) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
| July 1 - 31, 2026 | — | $ | — | — | — | |||||||||||||||||||||
| August 1 - 31, 2026 | — | — | — | — | ||||||||||||||||||||||
| September 1 - 30, 2026 | 618 | 11.50 | — | — | ||||||||||||||||||||||
| Total | 618 | $ | 11.50 | — | ||||||||||||||||||||||
(1) On September 8, 2025, the Company announced that its Board of Directors authorized the Company's seventh stock repurchase program to acquire up to 1,800,000 shares, or approximately 1.7% of the Company's then issued and outstanding common stock. The plan was discontinued in conjunction with the closing of the Company's second step conversion and stock offering on July 20, 2026. | ||||||||||||||||||||||||||
(2) During the three months ended September 30, 2026, 618 shares were repurchased pursuant to forfeitures related to the 2019 Equity Incentive Plan and not as part of a share repurchase program. | ||||||||||||||||||||||||||
Item 3. Defaults Upon Senior Securities
Not Applicable.
Item 4. Mine Safety Disclosures
Not Applicable.
Item 5. Other Information
During the fiscal quarter ended September 30, 2026, none of our directors or officers informed us of the adoption termination
Item 6. Exhibits
The exhibits listed in the Exhibit Index (following the signatures section of this report) are included in, or incorporated by reference into this Quarterly Report on Form 10-Q.
77
Exhibit Index
| 3.1 | Articles of Incorporation of Columbia Financial, Inc. (Incorporated by reference to Exhibit 3.1 to the Registration Statement on Form S-1 (Registration No. 333-294103), as amended, initially filed by Columbia Financial, Inc., a Maryland corporation, on March 6, 2026.) | |||||||
| 3.2 | Bylaws of Columbia Financial, Inc. (Incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 (Registration No. 333-294103), as amended, initially filed by Columbia Financial, Inc., a Maryland corporation, on March 6, 2026.) | |||||||
| 10.1 | Amended and Restated Employment Agreement between Columbia Financial, Inc., Columbia Bank and Steven M. Klein * | |||||||
| 31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||
| 31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||
| 32 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||
| 101.0 | The following materials from the Company’s Quarterly Report to Stockholders on Form 10-Q for the quarter ended September 30, 2026, formatted in inline XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Financial Condition, (ii) the Consolidated Statements of Income (Loss), (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Stockholders' Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to the Consolidated Financial Statements. | |||||||
| 101. INS | The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document | |||||||
| 101. SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
| 101. CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
| 101. DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
| 101. LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
| 101. PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
| 104 | Cover page Interactive Data File (embedded within the Inline XBRL document) | |||||||
| * | Management contractor compensatory plan, contractor arrangement. | |||||||
78
SIGNATURES
Pursuant to the requirements of Section 13 of the Securities Exchange Act of 1934, the Registrant has duly caused this quarterly report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Columbia Financial, Inc. | ||||||||||||||
| Date: | November 9, 2026 | /s/Thomas J. Kemly | ||||||||||||
| Thomas J. Kemly | ||||||||||||||
| President and Chief Executive Officer | ||||||||||||||
| (Principal Executive Officer) | ||||||||||||||
| Date: | November 9, 2026 | /s/Thomas F. Splaine, Jr. | ||||||||||||
| Thomas F. Splaine, Jr. | ||||||||||||||
| Executive Vice President and Chief Financial Officer | ||||||||||||||
| (Principal Financial and Accounting Officer) | ||||||||||||||
79