Columbia, Northfield to merge in $597M NJ bank deal

The basics:

• Columbia Financial, Northfield Bancorp agree to $597M merger
• Combined company will have about $18B in assets, form New Jersey’s 3rd-largest regional bank
• Columbia to complete second-step conversion, becoming fully public holding company
• Deal expected to close in Q3 2026, pending regulatory and shareholder approvals

The latest combination of New Jersey banks will bring together Columbia Financial Inc. and Northfield Bancorp Inc. in a merger valued at $597 million.

The holding companies for Fair Lawn-based Columbia Bank and Northfield Bank of Woodbridge announced the plan Feb. 2. The deal will establish the third-largest regional bank based in New Jersey, according to the parties, with pro forma total assets of $18 billion, based on Dec. 31, 2025, financial data.

As part of the agreement, Columbia also unanimously adopted a plan to reorganize as part of a “second-step” conversion. The development will release shares representing the majority ownership of Columbia Bank MHC for sale to the public at the price of $10 per share. The bank, currently operating as a mutual holding company, will then reorganize into a fully public stock holding company and will become a wholly owned subsidiary of a new holding company formed in connection with the deal.

Under the terms, Northfield will merge into the holding company immediately following the second-step conversion. On a pro forma basis at the midpoint of the estimated valuation range for the second-step conversion based on a preliminary independent appraisal, Columbia anticipates that the merger with Northfield would be 50% accretive to Columbia’s 2027 earnings per share.

Reorganizing

Following the deal, Thomas Kemley will continue as president and CEO of the bank holding company and bank; Dennis Gibney will continue as first senior executive vice president and chief banking officer; and Thomas Splaine will continue as executive vice president and chief financial officer.

Additionally, Northfield Chairman, President and CEO Steven Klein will become senior executive vice president and chief operating officer for the combined holding company and bank. Upon completion, the new board of directors will comprise participants of Columbia as of the merger’s effective date, along with four members from Northfield, including Klein.

Directors of both banks have approved the agreement, the parties said.

“The simultaneous merger allows us to immediately leverage a portion of the capital raised and materially augment financial results,” said Kemly, expressing excitement about the deal. “Northfield has built an excellent deposit franchise with a conservative credit culture, which makes it an ideal fit with Columbia and provides great opportunities for future growth.”

Added Klein, “I have known and respected the Columbia team for nearly 40 years, and I believe this combination will create enormous value and opportunity for our team members, customers, and stockholders.”

The second-step conversion, the conversion offering and merger are expected to close in the third quarter.

Major mergers

Columbia Bank operates 71 full-service branches with total assets of more than $10.8 billion, as of Sept. 30, 2025. Founded in 1887, Northfield boasts 37 full-service locations in Staten Island and Brooklyn in New York, as well as across Hunterdon, Middlesex, Mercer and Union counties. As of Sept. 30, 2025, its total assets were over $5.7 billion.

In 2022, Columbia Bank acquired RSI Bank of Rahway. The financial institution unveiled the deal in December 2021, the same day it closed its acquisition of Freehold Bank.

The news marks the latest New Jersey bank to grow its ranks. To close out 2025, OceanFirst Bank revealed a $579 million merger of its own. The month before, regional institution Blue Foundry Bancorp and Fulton Financial Corp. said they would combine in a deal valued at approximately $243 million. And they aren’t the only ones.

U.S. News & World Report noted 52 bank mergers announced in the third quarter of 2025, the most since 2021, it said, citing S&P Global Intelligence data. The publication attributed the activity to a favorable regulatory environment along with the need to stay competitive amid a changing financial landscape.

Advisors

Keefe, Bruyette & Woods Inc., A Stifel Co., serves as financial advisor to Columbia. The firm will also act as marketing agent for the subscription and community offerings as well as the lead left book-running manager for any firm commitment underwritten offering conducted by the holding company in connection with the second-step conversion.

Raymond James & Associates Inc. serves as financial advisor to Northfield. According to the announcement, it has rendered a fairness opinion to the Northfield Board of Directors. Kilpatrick Townsend & Stockton LLP serves as legal counsel to Columbia; Luse Gorman PC is counsel to Northfield.