Columbia Financial reports Q4 profit on higher interest income

Overview

• Bank holding company reported Q4 net income of $15.7 mln, reversing prior yr loss

• Core net income for Q4 rose 39.6% yr/yr

• Net interest margin expanded by 48 basis points in Q4

Outlook

• Company maintains strong balance sheet to benefit from improving economic environment

Result Drivers

• NET INTEREST INCOME - Increase in net interest income driven by higher interest income and lower interest expense

• BALANCE SHEET REPOSITIONING - Strategic repositioning in 2024 improved net interest margins

• CREDIT LOSSES - Decrease in provision for credit losses contributed to improved results

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Columbia Financial Inc is $18.00, about 10.6% above its January 30 closing price of $16.27

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nGNX1mQRRw

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