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CF

Columbia Financial, Inc. (CLBK)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered a clear inflection: GAAP EPS rose to $0.12 vs $0.04 YoY and $0.09 QoQ, with net interest margin expanding to 2.19% (from 1.81% YoY, 2.11% QoQ) as the December 2024 balance sheet repositioning lowered funding costs and lifted asset yields .
  • Non-interest expense fell 2.9% YoY; efficiency ratio improved to 70.30% (vs 86.83% YoY, 74.57% QoQ), signaling tighter cost control and scale benefits despite a higher tax rate .
  • Asset growth (+2.5% YTD) and balanced loan growth (+$254.1M net since 12/31/24) were supported by a $130.9M purchase of equipment finance loans; deposits rose modestly (+$39.3M YTD), while borrowings increased to fund loan purchases .
  • Asset quality mixed: NPLs rose to 0.49% of loans (from 0.28% at YE 2024) on construction and CRE additions; ACL/loans strengthened to 0.79% (from 0.76%) and coverage of NPLs remained robust at 163% .
  • Street comparison: Q2 EPS beat consensus ($0.1265 vs $0.105, +$0.022); S&P-defined revenue also beat ($61.4M vs $53.2M, +$8.2M). We note definitional differences vs company “Total income” ($63.9M) . Values retrieved from S&P Global.*

What Went Well and What Went Wrong

What Went Well

  • Net interest margin expansion to 2.19% (+38 bps YoY, +8 bps QoQ), driven by lower deposit/borrowing costs and higher asset yields after the Q4 2024 repositioning .
  • Cost discipline: non-interest expense fell to $44.9M (-$1.3M YoY), with lower professional fees, merger-related costs, and other expenses; efficiency ratio improved to 70.30% .
  • CEO tone highlighted sustained earnings momentum and strategic execution: “continued expansion of our net interest margin... solid loan growth... reduced our overall operating costs” (Kemly) .

What Went Wrong

  • Asset quality pressure: NPLs up to $39.5M (0.49% of loans) from $21.7M (0.28%) at YE 2024, including a $5.9M construction loan and increased non-performing CRE and one-to-four family exposures .
  • Net charge-offs elevated at ~$3.2M in Q2 (including $3.2M PCD charge-offs tied to purchased equipment finance loans), though down for 1H vs prior year .
  • Borrowings rose $192.0M YTD (17.8%) to fund loan purchases, partially offsetting deposit inflows and raising funding dependence on the FHLB .

Financial Results

MetricQ4 2024Q1 2025Q2 2025
GAAP EPS ($)$(0.21)$ $0.09 $0.12
Net Income ($USD Millions)$(21.2)$ $8.9 $12.3
Net Interest Income ($USD Millions)$46.4 $50.3 $53.7
Non-Interest Income ($USD Millions)$(23.7)$ $8.5 $10.2
Total Income ($USD Millions)$22.7 $58.8 $63.9
Net Interest Margin (%)1.88% 2.11% 2.19%
Efficiency Ratio (%)205.17% 74.57% 70.30%
Q2 2025 vs ConsensusConsensusActualSurprise
Primary EPS ($)$0.105*$0.1265*+$0.022*
Revenue ($USD)$53.207M*$61.408M*+$8.201M*
# of EPS Estimates2*——
# of Revenue Estimates2*——
Values retrieved from S&P Global.*

Segment/Lending Mix (End of Period)

Loan Category ($USD Millions)Dec 31, 2024Mar 31, 2025Jun 30, 2025
One-to-Four Family$2,710.9 $2,676.6 $2,629.4
Multifamily$1,460.6 $1,567.9 $1,578.7
Commercial Real Estate$2,339.9 $2,429.4 $2,517.7
Construction$473.6 $437.1 $415.4
Commercial Business$622.0 $614.0 $726.5
Home Equity & Advances$259.0 $253.4 $256.4
Other Consumer$3.4 $2.5 $2.6
Total Gross Loans$7,869.4 $7,981.0 $8,126.7

Key KPIs

KPIDec 31, 2024Mar 31, 2025Jun 30, 2025
NPLs / Gross Loans (%)0.28% 0.31% 0.49%
Non-Performing Assets / Total Assets (%)0.22% 0.25% 0.37%
ACL / Gross Loans (%)0.76% 0.78% 0.79%
ACL Coverage of NPLs (%)276.29% 249.57% 163.02%
Quarterly Net Charge-Offs ($USD Millions)$1.4 $0.857 $3.2
Total Deposits ($USD Billions)$8.096 $8.195 $8.135
Weighted Avg Deposit Rate (%)2.47% 2.40% 2.36%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue/Total IncomeQ3/Q4 2025Not providedNot providedMaintained (no formal guidance)
Net Interest MarginFY 2025Not providedNot providedMaintained (no formal guidance)
OpEx/EfficiencyFY 2025Not providedNot providedMaintained (no formal guidance)
Tax RateFY 2025Not providedNot providedMaintained (no formal guidance)
Capital Return/DividendFY 2025Not providedNot providedMaintained (no formal guidance)
No explicit quantitative guidance issued in the Q2 press release or related 8-K .

Earnings Call Themes & Trends

Note: A Q2 2025 earnings call transcript was not available in our document set.

TopicPrevious Mentions (Q4 2024)Previous Mentions (Q1 2025)Current Period (Q2 2025)Trend
Balance sheet repositioning & NIMExecuted securities sales and debt prepayment; short-term hit to GAAP earnings; intended to improve NIM NIM up 36 bps YoY to 2.11%; lower cost of borrowings; asset yields rising NIM up to 2.19%; asset yields higher; funding costs down; continued benefits Improving
Loan growth & mixYE increase in multifamily, construction, commercial business; reposition to higher-yield assets Strong CRE and multifamily growth; deposits up; borrowings modestly higher Broad-based CRE/multifamily growth; $130.9M equipment finance loan purchase lifts commercial business Accelerating
Funding costs & depositsDeposit costs elevated in 2024; easing late Q4; borrowings prepaid Deposit growth; weighted avg deposit rate 2.40% Weighted avg deposit rate 2.36%; deposit mix shifting to money markets and CDs Moderating
Asset qualityNPLs up to 0.28%; ACL increased; C&I charge-offs NPLs 0.31%; lower net charge-offs QoQ NPLs 0.49%; construction/CRE additions; PCD charge-offs tied to equipment loans Deteriorating
Cost disciplineWorkforce reduction and lower FDIC expense in 2024 OpEx down; professional fees and FDIC premiums lower OpEx down YoY; efficiency ratio improved to 70.30% Improving
Liquidity & capitalStrong liquidity; capital ratios stable; repurchases paused Immediate access ~$2.8B funding; robust capital ratios Capital ratios remain strong; CET1 13.27%; Tier 1 leverage ~10.37% (company est.) Stable

Management Commentary

  • “We are pleased with our results for the second quarter of 2025, which reflect a substantial increase in earnings and the continued expansion of our net interest margin… solid loan growth, complemented by the purchase of approximately $130.9 million in commercial equipment finance loans… Assets and deposits continued to increase… and we reduced our overall operating costs.” — Thomas J. Kemly, President & CEO .
  • Q1 2025 tone on execution: “increase earnings, expand our net interest margin and reduce overall funding costs mainly due to a balance sheet repositioning strategy… focused on managing the balance sheet mix and controlling operating expenses…” — Thomas J. Kemly .

Q&A Highlights

  • No Q2 2025 earnings call transcript was available; therefore, Q&A content, guidance clarifications, and tone changes during the call could not be assessed.

Estimates Context

  • Q2 2025 EPS beat: $0.1265 vs $0.105 (+$0.022). Q2 2025 S&P-defined revenue beat: $61.4M vs $53.2M (+$8.2M). Both had 2 contributing estimates.*
  • Company-reported “Total income” was $63.9M, which differs from S&P “Revenue” definition; this definitional nuance should be considered when modeling .
    Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Earnings trajectory improving with NIM expansion and lower funding costs driving sequential and YoY EPS growth; continued benefits expected from Q4 2024 repositioning .
  • Cost discipline is visible in lower non-interest expense and a materially better efficiency ratio; watch for sustainability as deposit competition evolves .
  • Loan growth is healthy and diversified; equipment finance purchase adds yield but brings incremental credit risk—monitor non-performing trends and PCD performance .
  • Asset quality has softened (NPLs up to 0.49%); robust ACL coverage mitigates risk, but CRE/construction concentrations warrant closer scrutiny in a mixed macro backdrop .
  • Funding mix improved with lower deposit rates and higher money market/CD balances; reliance on borrowings increased to fund growth—pay attention to leverage and cost trajectory .
  • Capital remains solid (CET1 ~13.27%; leverage ~10.37%), supporting flexibility; future capital return decisions likely hinge on credit normalization and earnings durability .
  • Near-term trading: bias positive on NIM/OpEx execution and clear beat vs consensus; medium-term thesis depends on managing CRE/construction credit risk while sustaining margin gains .