Shares of Northfield Bancorp Inc (NASDAQ:NFBK) jumped nearly 12% in premarket trading on Monday after the bank agreed to be acquired by Columbia Financial Inc (NASDAQ:CLBK) in a transaction valued at about $597 million.
The all-cash-and-stock deal, which has been unanimously approved by both boards, will create the third-largest regional bank headquartered in New Jersey, with pro forma total assets of roughly $18 billion based on figures as of December 31, 2025.
Under the terms of the agreement, Northfield shareholders can elect to receive either cash or shares in Columbia’s newly formed holding company. The final exchange will be set following an independent valuation, with investors receiving between 1.425 and 1.465 shares of the new holding company’s stock per Northfield share, or cash consideration ranging from $14.25 to $14.65 per share. Cash payments will be capped at 30% of Northfield’s outstanding shares.
Alongside the merger announcement, Columbia also unveiled plans for a so-called “second-step” conversion, moving from its mutual holding company structure to a fully public stock holding company. As part of this process, Columbia will offer shares at $10.00 each, with depositors receiving priority subscription rights.
“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,” said Thomas J. Kemly, President and CEO of Columbia.
Following completion of the transaction, Kemly will remain President and CEO of the combined organization. Northfield’s Chairman, President and CEO Steven M. Klein is set to take on the role of Senior Executive Vice President and Chief Operating Officer.
The companies expect the deal to close in the early part of the third quarter of 2026, subject to regulatory approvals and shareholder consent. Columbia said it expects the acquisition to be around 50% accretive to its earnings per share in 2027.