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CF

Columbia Financial, Inc. (CLBK)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered stronger profitability on expanding net interest margin and lower funding costs: Net income rose to $14.9M and diluted EPS to $0.15, up from $6.2M and $0.06 in Q3 2024 . Net interest margin expanded to 2.29% (+10 bps q/q; +45 bps y/y) on higher asset yields and lower liability costs .
  • EPS beat Wall Street: Actual EPS $0.1506 vs $0.13 consensus; revenue beat as well: actual $64.91M vs $56.20M consensus. Both Q2 and Q1 also beat on revenue; Q1 EPS was marginally below consensus ($0.089 vs $0.09)*.
  • Management reactivated buybacks: Board authorized 1.8M shares in September and repurchased 183,864 shares ($2.8M at $15.43/share), signaling confidence and capital deployment flexibility .
  • Asset quality improved q/q: Non‑performing assets to total assets declined to 0.30% from 0.37% in Q2; net charge‑offs fell to $1.2M from $2.7M y/y .
  • Call transcript not available; narrative from the press release highlights NIM/loan growth tailwinds, funding cost relief, and a continued shift toward commercially‑oriented segments .

Values retrieved from S&P Global.*

What Went Well and What Went Wrong

What Went Well

  • Net interest margin expansion and funding cost relief: NIM reached 2.29% in Q3 (+10 bps q/q; +45 bps y/y), driven by higher asset yields and lower average costs on interest‑bearing deposits and borrowings .
  • Commercial mix shift and loan growth: Loans grew $97.1M in Q3 (≈4.8% annualized), with commercial real estate and commercial business loans up $192.4M and $149.5M YTD; CEO emphasized “strong loan demand” and “continued shift in loan mix” .
  • Share repurchases and confident tone: “We recommenced our share repurchase program… which we believe will contribute to enhanced shareholder value,” and noted “asset quality remains very strong,” highlighting q/q decline in NPAs .

What Went Wrong

  • Higher non‑interest expense: Q3 non‑interest expense increased to $45.1M (+5.3% y/y), driven by compensation, occupancy, and data/software costs .
  • Elevated, though improving, non‑performing loans vs year‑end: NPLs were $32.5M (0.40% of gross loans) vs $21.7M (0.28%) at 12/31/24; increase reflects one $5.9M construction loan and broader upticks in 1‑4 family and CRE categories .
  • Effective tax rate normalization lifting tax expense: Q3 income tax expense rose to $5.0M (effective rate 25.0% vs 15.5% LY), reflecting higher pre‑tax income and fewer permanent differences vs 2024 .

Financial Results

Quarterly P&L and Efficiency (Q1→Q3 FY25)

MetricQ1 2025Q2 2025Q3 2025
Net Interest Income ($USD Millions)$50.3 $53.7 $57.4
Non-Interest Income ($USD Millions)$8.5 $10.2 $9.9
Total Income ($USD Millions)$58.8 $63.9 $67.3
Net Income ($USD Millions)$8.9 $12.3 $14.9
Diluted EPS ($)$0.09 $0.12 $0.15
Net Interest Margin (%)2.11% 2.19% 2.29%
Efficiency Ratio (%)74.57% 70.30% 67.04%
ROA (%)0.34% 0.46% 0.55%
ROE (%)3.31% 4.46% 5.23%

Year-over-Year Comparison (Q3 FY24 vs Q3 FY25)

MetricQ3 2024Q3 2025
Net Interest Income ($USD Millions)$45.3 $57.4
Non-Interest Income ($USD Millions)$9.0 $9.9
Net Income ($USD Millions)$6.2 $14.9
Diluted EPS ($)$0.06 $0.15
Net Interest Margin (%)1.84% 2.29%

Segment/Portfolio Breakdown (Balances at quarter end)

Loans ($USD Millions)Q1 2025Q2 2025Q3 2025
One-to-Four Family$2,676.6 $2,629.4 $2,583.2
Multifamily$1,567.9 $1,578.7 $1,612.1
Commercial Real Estate$2,429.4 $2,517.7 $2,532.3
Construction$437.1 $415.4 $465.3
Commercial Business$614.0 $726.5 $771.5
Total Gross Loans$7,981.0 $8,126.7 $8,224.1

KPIs: Deposits and Asset Quality

KPIQ1 2025Q2 2025Q3 2025
Total Deposits ($USD Millions)$8,194.9 $8,135.5 $8,240.3
Weighted Avg Rate – Interest-Bearing Demand (%)2.08% 2.03% 2.04%
Weighted Avg Rate – Money Market (%)2.84% 2.79% 2.74%
Weighted Avg Rate – CDs (%)4.08% 3.96% 3.89%
Non-Performing Assets to Total Assets (%)0.25% 0.37% 0.30%
NPLs to Total Gross Loans (%)0.31% 0.49% 0.40%
ACL to NPLs (%)249.57% 163.02% 201.85%

Non-GAAP Highlights

Non-GAAPQ3 2024Q3 2025
Core Net Income ($USD Millions)$6.1 $15.4
Core Efficiency Ratio (%)79.14% 66.04%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Share Repurchase ProgramQ3 2025None disclosedAuthorized 1,800,000 shares; repurchased 183,864 in Sept ($2.8M at $15.43/share) Initiated/Commenced
DividendQ3 2025Not disclosedNot disclosedMaintained (no update)
Financial Guidance (Revenue/Margins/OpEx)Q3 2025Not providedNot providedN/A

No explicit numeric forward guidance was provided in the Q3 materials .

Earnings Call Themes & Trends

Call transcript for Q3 2025 was not available; themes below reflect quarter-to-quarter narrative in earnings releases.

TopicPrevious Mentions (Q1 & Q2 FY25)Current Period (Q3 FY25)Trend
Net Interest Margin expansionNIM 2.11% (Q1) and 2.19% (Q2) on higher asset yields, lower borrowing costs NIM 2.29% with continued asset yield lift and deposit/borrowing cost declines Improving
Funding costsBorrowing cost down ~54 bps y/y in Q1; deposit cost down 10–19 bps in Q2 Liability costs continued to decline: deposits 2.91% and borrowings 4.37% avg costs in Q3 Favorable
Loan growth and commercial mix shiftMultifamily/CRE up q/q; purchase of $130.9M equipment finance loans in May with PCD charge-offs in Q2 Further growth; CRE and commercial business balances up; mix shift toward commercial continues Continuing
Asset qualityNPLs rose from YE to Q2 (0.49% of loans) on construction/CRE adds NPAs improved q/q (0.30% of assets), NCOs fell y/y; ACL coverage robust Stabilizing/Improving q/q
Capital deploymentNo buyback noted in Q1/Q2; focus on cost control and NIM Buyback reinitiated, 183,864 shares repurchased in Sept New catalyst

Management Commentary

  • CEO remarks: “Our quarterly earnings continue to increase in 2025 driven by net interest margin expansion, strong loan demand, a continued shift in loan mix and a reduction in funding costs… Our asset quality remains very strong and improved from the prior quarter with a decrease in non-performing assets” .
  • Strategic framing: Balance sheet repositioning in Q4 2024 “resulted in an increase in the average yield on securities and a decrease in the cost of borrowings,” materially supporting 2025 performance .
  • Commercial orientation: “We continue to grow the Company's balance sheet towards commercially oriented segments in a very competitive environment” .

Q&A Highlights

No Q3 2025 earnings call transcript was found in the document catalog, so Q&A highlights and any intra‑quarter guidance clarifications are unavailable for this period.

Estimates Context

MetricQ1 2025Q2 2025Q3 2025
EPS: Actual vs Consensus ($)0.089 vs 0.09*0.1265 vs 0.105*0.1506 vs 0.13*
Revenue: Actual vs Consensus ($USD)55,863,000 vs 49,950,500*61,408,000 vs 53,207,000*64,909,000 vs 56,200,000*
  • Q3: EPS and revenue beat; Q2: EPS and revenue beat; Q1: revenue beat, EPS marginal miss*. The magnitude of beats aligns with stronger NIM and lower interest expense on deposits/borrowings, and increased asset yields from the Q4 2024 repositioning .

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • NIM tailwinds and funding cost normalization are driving sequential EPS and efficiency improvements; watch sustainability as market rates evolve .
  • Commercial loan growth and mix shift (CRE/commercial business) continue; equipment finance purchase broadened earning assets but came with PCD charge‑offs earlier this year .
  • Asset quality improved q/q with lower NPAs and NCOs; ACL coverage remains strong (>200% of NPLs in Q3) .
  • Buyback reactivation is a near‑term capital deployment catalyst; 1.8M shares authorized and initial repurchases completed .
  • Non‑interest expense creep (comp/tech/occupancy) should be monitored; overall efficiency ratio improved to 67.0% .
  • Earnings trajectory remains upward given NIM expansion; estimate revisions likely higher post‑beat, but no formal guidance was provided .
  • Near‑term trading: positive skew on continued NIM expansion and buyback activity; medium‑term thesis hinges on loan growth in commercial segments and disciplined funding costs amid competitive deposit dynamics .

Sources

  • Q3 2025 8-K and press release: ;
  • Q2 2025 press release and 8-K: ;
  • Q1 2025 press release and 8-K: ;
  • Estimates: Values retrieved from S&P Global.*