Columbia Bank and Northfield Bank announced Feb. 2 that Columbia will acquire Northfield in a transaction valued at about $597 million.
The combination of two of the oldest banks in New Jersey will create a regional bank with 108 offices, with pro forma total assets of $18 billion based on financial data as of Dec. 31, 2025.
Under the terms of the agreement, Northfield will merge into Columbia Financial Inc., Columbia’s holding company immediately following the completion of the second-step conversion. At the effective time of the merger, each outstanding share of Northfield common stock will be converted into the right to receive either shares of Holding Company common stock or cash, without interest, at the election of the holder.
Under the terms of the merger agreement, no more than 30% of the outstanding shares of Northfield common stock issued and outstanding as of the effective time of the merger may be converted into the cash consideration. The merger will only occur if the second-step conversion is completed.
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.
The merger agreement has been unanimously approved by the boards of directors of both Columbia and Northfield. The completion of the merger is subject to the satisfaction of various closing conditions. The merger is expected to be completed early in the third quarter of 2026.
Following the completion of the merger, Thomas J. Kemly will continue to serve as president and chief executive officer of the holding company and the bank, Dennis E. Gibney will continue to serve as first senior executive vice president and chief banking officer of the holding company and Columbia Bank and Thomas F. Splaine, Jr. will continue to serve as executive vice president and chief financial officer of the holding company and Columbia Bank.
At the effective time of the merger, Steven M. Klein, chairman, president and chief executive officer of Northfield, will become senior executive vice president and chief operating officer of the holding company and Columbia Bank.
Following the completion of the merger, the board of directors of the holding company and Columbia Bank will consist of the directors of Columbia and Columbia Bank as of the effective time of the merger, as well as four members of Northfield’s board of directors, including Steven M. Klein.
“We are excited to announce our second-step conversion and simultaneous merger with Northfield. The simultaneous merger allows us to immediately leverage a portion of the capital raised and materially augment financial results,” said Kemly. “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.”
Northfield was founded in 1887 in the Northfield section of Staten Island. It operates 37 full-service banking offices in Staten Island and Brooklyn, and Hunterdon, Middlesex, Mercer, and Union counties. Columbia Bank, founded in 1926, is based in Fair Lawn and operates 71 offices in its market area, mostly in Bergen County.
“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,” said Klein.
Keefe, Bruyette & Woods, Inc., A Stifel Company, is serving as financial adviser to Columbia. Raymond James & Associates, Inc. is serving as financial adviser to Northfield.
Kilpatrick Townsend & Stockton LLP is serving as legal counsel to Columbia and Luse Gorman, PC is serving as legal counsel to Northfield.
Shares of Columbia Financial Monday climbed $1.66, or 10.2%, to $17.93 on the NASDAQ Global Select Market Composite. Trading volume of Columbia shares was double the daily average of 114,734. Northfield Bancorp stock leaped $1.51, or 12.2%, to $13.82 on the NASDAQ Global Select Market Composite, Trading volume was already double daily average of 182,485.
