Northfield Stock Jumps on $597M Columbia Financial Merger

Key Takeaways of the Merger

Columbia Financial, Inc. has announced its acquisition of Northfield Bancorp Inc. in a transaction valued at approximately $597 million. This strategic move caused Northfield's stock to surge by 11.9% in premarket trading, signaling strong market approval.

Overview of the Acquisition

The merger agreement will establish the third largest regional bank headquartered in New Jersey, with projected total assets of $18 billion. Under the terms, Northfield shareholders can opt for either cash or shares in Columbia's newly formed holding company. The cash consideration is capped at 30% of outstanding Northfield shares. The deal coincides with Columbia's plan to convert from a mutual holding company to a fully public stock organization.

Market Reaction and Future Outlook

The immediate market response was positive, with Northfield Bancorp's stock (NASDAQ:NFBK) seeing a significant premarket jump. Columbia Financial anticipates the merger will be highly beneficial, projecting a 50% accretion to its 2027 earnings per share. Thomas J. Kemly, President and CEO of Columbia, highlighted Northfield's strong deposit franchise and conservative credit culture as key factors for the acquisition.

Summary

The transaction is slated for completion in the third quarter of 2026. It remains subject to customary closing conditions, including approvals from regulators and shareholders of both companies. The leadership of the combined entity will see Columbia's CEO continue in his role, with Northfield's CEO taking on the position of Senior Executive Vice President and COO.

FAQ

Q: What is the total value of the Columbia Financial and Northfield Bancorp deal?
A: The acquisition is valued at approximately $597 million.

Q: When is the merger expected to be completed?
A: The transaction is expected to close early in the third quarter of 2026, pending regulatory and shareholder approvals.

Source: Investing.com