Columbia Financial (NASDAQ:CLBK) reported a significant return to profitability for both the fourth quarter and the full year of 2025, fueled by a sharp expansion in net interest margin (NIM) and a strategic balance sheet repositioning initiated in late 2024.
The Fair Lawn, New Jersey-based holding company posted fourth-quarter net income of $15.7 million ($0.15 per share), a dramatic reversal from the $21.2 million net loss recorded during the same period in 2024.
For the full year 2025, net income reached $51.8 million ($0.51 per share), compared to a net loss of $11.7 million in 2024.
The improvement was largely driven by a 29.7% year-over-year increase in net interest income for the fourth quarter, which totaled $60.2 million.
This growth resulted from a combination of higher interest income on a growing loan portfolio and a substantial decrease in interest expenses on deposits and borrowings following the restructuring of the bank's debt.
"Our quarterly earnings continue to increase in 2025, driven by net interest margin expansion and a continued shift in our loan mix toward commercial lending," said CEO Thomas J. Kemly.
The bank's NIM expanded by 48 basis points in the fourth quarter to 2.36%, while the full-year margin rose 42 basis points.