Columbia Financial, Inc. (CLBK): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how Columbia Financial, Inc. makes its money, especially after their recent balance sheet adjustments and pivot toward commercial lending. Honestly, mapping out their strategy reveals a community bank heritage-serving NJ, PA, and NY suburbs since 1927-now managing $10.8 billion in assets with a sharp focus on relationship-driven commercial loan originations. They are balancing that community touch with solid metrics, like a 13.21% CET1 ratio from Q1 2025, while pushing their Net Interest Margin to 2.29% by Q3 2025. If you want the full, precise breakdown of their key partners, cost drivers, and revenue streams, check out the nine building blocks mapped out below; it's the clearest picture you'll get.

Columbia Financial, Inc. (CLBK) - Canvas Business Model: Key Partnerships

You're looking at the relationships Columbia Financial, Inc. (CLBK) relies on to run its business as of late 2025. These aren't just vendors; these are the entities that enable its operations, compliance, and ownership structure. It's a mix of regulatory bodies, the parent structure, and the tech backbone.

Regulatory and Ownership Structure

The relationship with the Federal Reserve Bank of Philadelphia is key for corporate actions. For instance, the September 2025 authorization of a new stock repurchase program to acquire up to $\text{1,800,000}$ shares, or approximately $\text{1.7\%}$ of the Company's currently issued and outstanding common stock, followed the receipt of a notice of non-objection from the Federal Reserve Bank of Philadelphia.

The ownership structure is anchored by Columbia Bank, MHC. As of February 26, 2025, out of $\text{104,730,129}$ total outstanding shares of common stock, $\text{76,016,524}$ shares were held by Columbia Bank, MHC. This confirms Columbia Financial, Inc. remains a majority-owned subsidiary of Columbia Bank, MHC.

Here's a snapshot of the ownership structure as reported near the start of 2025:

Core Technology Vendors

Columbia Bank has been actively upgrading its technology stack to keep pace with fintech competition. This involves partnerships for the systems that run the daily business, even if the specific vendor names aren't always public. The company has funded significant technological investments, including the upgrade of its:

• Core banking platform.
• Loan origination systems.
• Document imaging systems.
• Business intelligence reporting.

The ability to administer these new systems requires a dedicated talent pool, which is an essential component of this partnership strategy.

Community and Outreach Partners

Maintaining a community-based focus is a stated mission, which requires engagement with local organizations for outreach and to meet Community Reinvestment Act (CRA) compliance goals. While specific 2025 CRA performance metrics aren't detailed here, the commitment is evident in employee actions and foundation support. For example, employee efforts in 2024 included over $\text{3,300}$ volunteer hours contributed across outreach programs like financial literacy seminars and affordable housing initiatives. Furthermore, as part of a prior stock offering, there was an intent to contribute $\text{3.0\%}$ of Columbia Financial, Inc.'s outstanding common stock to the Bank's existing charitable foundation.

The operational scale of the bank, which is the primary asset of CLBK, reflects the scale of its market presence, which these partnerships support. As of September 30, 2025, following the August 31, 2025 acquisition of Pacific Premier, the combined entity (Columbia Banking System, Inc.) reported total assets of $\text{67.5 billion}$. This scale is supported by a network spanning approximately $\text{350}$ branches across eight Western states.

The bank's operational metrics as of Q3 2025 show the environment these partnerships operate within:

Finance: draft 13-week cash view by Friday.

Columbia Financial, Inc. (CLBK) - Canvas Business Model: Key Activities

You're focused on the core engine of Columbia Financial, Inc. (CLBK) right now, which is how they are actively deploying capital and managing their balance sheet as of late 2025. The activity around loan origination is clearly shifting toward the commercial side, which is a key strategic move. You saw Commercial Real Estate (CRE) and Construction loans increase by a combined $192.4 million Year-to-Date (YTD) through Q3 2025. That's paired with Commercial Business loans growing by $149.5 million YTD. Overall, loans grew by $97.1 million in the third quarter alone, representing an annualized growth rate of approximately 4.8%.

A primary activity is managing the balance sheet, which, for Columbia Bank, stood at approximately $10.8 billion in consolidated assets as of September 30, 2025. This management focus involves driving profitability through asset mix and cost control. Here's a quick look at the operational scale and recent performance driving that activity:

Expanding the Net Interest Margin (NIM) is a critical, ongoing activity, clearly showing results from prior balance sheet repositioning. The NIM reached 2.29% for the quarter ended September 30, 2025. That's an increase of 10 basis points sequentially and 45 basis points year-over-year from the 1.84% seen in Q3 2024. This expansion is tied directly to higher asset yields and, importantly, lower liability costs. Honestly, that NIM movement is a big win for near-term profitability.

Building the core commercial deposit and treasury service accounts is the funding side of the equation. While the most recent specific deposit account count is from year-end 2024, it sets the baseline for this activity: the diversified deposit base had more than 215,000 accounts with an average balance around $38,000. You've seen management actively work to increase customer deposits to reduce reliance on higher-cost funding sources, which directly supports that NIM expansion. Fees from commercial account treasury services also contributed, showing an increase of $475,000 in Q1 2025 compared to Q1 2024.

Finally, executing capital deployment through share repurchases is a stated key activity signaling management confidence. The Board authorized a new program in September 2025 to acquire up to 1,800,000 shares. Management didn't wait; they commenced repurchases immediately, buying back 183,864 shares during September 2025 at an average price of $15.43 per share, totaling $2.8 million. This action is designed to contribute to enhanced shareholder value, and it's definitely something to track for capital efficiency.

Columbia Financial, Inc. (CLBK) - Canvas Business Model: Key Resources

You're looking at the tangible and intangible assets that power Columbia Financial, Inc.'s operations as of late 2025. These aren't just line items; they represent the scale and stability you need to assess their market position.

The sheer size of the balance sheet is a primary resource. As of the third quarter of 2025, Columbia Financial, Inc. reported consolidated assets of approximately $10.8 billion. This scale supports their lending capacity and market presence across New Jersey.

Capital strength is another non-negotiable resource in banking. For the first quarter of 2025, the company maintained a strong capital base, evidenced by a Common Equity Tier 1 (CET1) ratio, calculated to risk-weighted assets, of 13.21% as of March 31, 2025. This ratio shows they have a substantial cushion above regulatory minimums, which is key for weathering any unexpected economic shifts.

Physical presence and customer access are built on their network infrastructure. As of September 30, 2025, this network included:

• 69 full-service branch offices.
• Four regional lending centers.

This physical footprint underpins their relationship-driven strategy in their core operating regions.

The funding side of the equation relies heavily on customer deposits. While total deposits were reported at $42.2 billion at March 31, 2025, the core deposit base-the stable, less rate-sensitive funding-is a critical measure. For Q1 2025, the average core deposit intangible, which relates to the value of that stable base, was reported at approximately $8.241 billion (derived from $8,241 thousand for March 31, 2025).

Here's a quick look at the core financial foundation as of Q1 2025:

Finally, the human capital-the experienced local lending and relationship management talent-is an intangible but vital resource. This talent drives the relationship-based loan volume and deposit generation that management emphasizes. The company has explicitly stated its commitment to investments in talent and systems to support future growth.

Columbia Financial, Inc. (CLBK) - Canvas Business Model: Value Propositions

You're looking at the core value Columbia Financial, Inc. (CLBK) delivers to its market as of late 2025. It's built on a foundation of longevity and a commitment to local service, even as the company has scaled up significantly through recent strategic moves.

Reliable, community-based financial institution since 1927.

This history is a key differentiator. Columbia Bank, the primary operating subsidiary, has served the residents and businesses of New Jersey since 1927. This long tenure suggests deep community roots and established trust. As of September 30, 2025, the consolidated entity, Columbia Financial, Inc., reported total consolidated assets of approximately $67.5 billion, a substantial increase following the acquisition of Pacific Premier on August 31, 2025. This growth, however, is framed by the ongoing mission of the core bank.

The company's financial health underpins this reliability. Management emphasizes that asset quality remains very strong and improved from the prior quarter. Here's a quick look at how the balance sheet quality stacked up at the end of Q3 2025:

This focus on asset quality is a core value proposition for depositors and investors alike. It shows the company is managing credit risk effectively, even while growing its loan portfolio by $97.1 million in the quarter, representing an annualized growth rate of approximately 4.8%.

Relationship-focused banking model for self-sourced originations.

The CEO noted that recent performance is driven by strong loan demand and a continued shift in loan mix toward commercially-oriented segments. This shift speaks directly to the relationship model; it's about deepening ties with commercial clients rather than purely transactional, market-sourced business. The value here is the personalized service that supports these core customer relationships, which management believes is key to navigating a competitive environment.

Broad suite of traditional financial services for consumers and businesses.

Columbia Financial, Inc. delivers a comprehensive set of services through its operating bank and specialized divisions. The unified brand, effective September 1, 2025, simplifies this offering. You get the traditional banking services through Columbia Bank, plus specialized wealth and trust management capabilities.

• Columbia Bank (traditional consumer and business banking)
• Columbia Wealth Advisors
• Columbia Trust Company
• Columbia Private Bank
• Columbia Private Trust

The company operated 69 full-service banking offices as of September 30, 2025, providing physical access points alongside its digital and specialized offerings. The acquisition also added custodial trust services and proprietary technology to this suite.

Finance: draft 13-week cash view by Friday.

Columbia Financial, Inc. (CLBK) - Canvas Business Model: Customer Relationships

The customer relationship strategy for Columbia Financial, Inc. centers on blending personalized, local service with scalable digital capabilities, particularly evident in the structure of Columbia Bank's operations as of late 2025.

Personal, relationship-driven service model at branch level

The physical network supports a relationship-based approach, which management noted directly contributed to new deposit generation in Q3 2025, reducing reliance on wholesale funding sources. The expansion of the physical footprint continues to be a stated goal to bring essential services to communities.

• As of September 30, 2025, Columbia Bank operated 69 full-service branch offices and four regional lending centers.
• A branch was opened in Eastern Oregon during the second quarter of 2025, bringing essential banking services to an underserved rural community.
• As of March 31, 2025, the Company serviced a diverse retail and commercial deposit base through its 69 branches.

Here's a look at the scale of the customer deposit base supporting these relationships:

Dedicated commercial relationship managers for business clients

The focus on relationship banking is explicitly tied to commercial loan growth and fee income generation from business services. The strategy involves fostering deeper relationships to drive business activity.

• Loan growth for the quarter ended September 30, 2025, was $97.1 million, resulting in an annualized growth rate of approximately 4.8%.
• The increase in loans receivable, net, to $8.0 billion at March 31, 2025, from $7.9 billion at December 31, 2024, included growth in commercial business loans.

Self-service options via a modernized digital platform

While emphasizing personal service, Columbia Financial, Inc. supports clients with digital tools, aligning with broader industry trends where digital preference is high among consumers.

Industry-wide statistics for 2025 show a strong reliance on digital channels:

• A significant majority of consumers (77 percent) prefer to manage their bank accounts through a mobile app or a computer.
• 96 percent of customers rate their mobile and online banking experience as "excellent," "very good" or "good."
• 83 percent of customers say digital innovations in banking are making services more easily accessible.

High-touch service for commercial treasury management clients

Fees from commercial treasury services are a recognized component of non-interest income, indicating an active, high-touch service component for business clients utilizing these solutions for cash flow and financial efficiency.

The focus on relationship banking and treasury services is helping to diversify the revenue mix; new platforms and cross-sell referrals since the August 31, 2025, acquisition will continue to support deeper relationships and a more durable fee income mix.

Columbia Financial, Inc. (CLBK) - Canvas Business Model: Channels

You're looking at how Columbia Financial, Inc. gets its value proposition out to the market, which, as of late 2025, is a mix of established physical presence and necessary digital evolution. Honestly, for a community-focused bank, the physical footprint is still a huge part of the channel strategy.

Here's a quick look at the core delivery mechanisms as of the third quarter of 2025:

The brick-and-mortar network remains substantial. As of September 30, 2025, Columbia Financial, Inc. supported its market area through exactly 69 full-service branch offices. This physical network is complemented by four dedicated regional lending centers, which focus specifically on commercial clients, helping to drive the loan book. To give you some context on the scale of the operation supporting these channels, consolidated assets for Columbia Bank stood at approximately $10.8 billion on that same date.

The digital side is catching up to the relationship focus. Management has been working to ensure clients get seamless digital solutions alongside that personalized, relationship-based approach. This means the Columbia Bank website and mobile app have been redesigned and modernized to handle transactions and service inquiries efficiently. While I don't have the exact number of mobile app downloads or website traffic for 2025, the strategic investment points to digital as a critical, growing channel for customer interaction and basic service delivery.

For the more complex, high-value products, the direct sales force is key. Columbia Financial, Inc. relies on direct loan officers who are tasked with self-sourced loan originations. This channel is about deep, proactive relationship management rather than waiting for walk-ins. This direct approach seems to be working, as loan growth for the quarter ending September 30, 2025, reached $97.1 million, representing an annualized growth rate of about 4.8%.

You can also see the focus on relationship-driven lending through the utilization of these channels in the overall performance metrics. The net interest margin for the quarter ending September 30, 2025, hit 2.29%, up from 1.84% in the prior year quarter, suggesting the mix of business coming through these channels is becoming more profitable.

Finance: draft 13-week cash view by Friday.

Columbia Financial, Inc. (CLBK) - Canvas Business Model: Customer Segments

You're looking at the core groups Columbia Financial, Inc. serves across its franchise, which is headquartered in Fair Lawn, New Jersey. The bank focuses on a defined geographic footprint combined with specific business needs.

The retail consumer base is substantial. As of March 31, 2025, Columbia Financial, Inc. serviced over 207,000 deposit accounts across its 69 branches. For these retail customers, the average deposit account balance stood at approximately $40,000 at the end of the first quarter of 2025. This segment utilizes standard deposit products like checking, savings, money market accounts, and Certificates of Deposit (CDs), alongside consumer lending such as home equity lines of credit and residential mortgages.

The commercial side targets small to mid-sized businesses. These clients receive treasury management tools, business credit lines, and equipment financing. The bank saw non-interest income increase in Q1 2025, partly driven by higher fees related to commercial account treasury services. This indicates active engagement with the business segment for cash management solutions.

A key specialized group within the commercial segment is Commercial Real Estate (CRE) investors and construction developers. The loan portfolio composition shows a focus here; for instance, at December 31, 2024, loan growth was seen in multifamily real estate loans, construction loans, and commercial business loans. By the second quarter of 2025, non-performing loans (NPLs) had risen to 0.49% of total loans, partly attributed to additions in construction and CRE exposures.

The geographic focus anchors these segments. Columbia Bank operates its full-service banking offices primarily within New Jersey, serving the suburbs in that region, while also targeting the broader New Jersey, Pennsylvania, and New York suburban markets for its lending and deposit gathering activities.

Here's a quick look at some key quantitative data points defining these segments as of the first half of 2025:

The bank also serves wealth management clients. These customers utilize trust services, investment advisory offerings, and insurance solutions provided through its subsidiary, Columbia Investment Services, Inc. Columbia Financial, Inc. also offers title insurance products through First Jersey Title Services, Inc.

You should track the growth in commercial loan categories against the NPL trend. Finance: draft 13-week cash view by Friday.

Columbia Financial, Inc. (CLBK) - Canvas Business Model: Cost Structure

You're looking at the expense side of Columbia Financial, Inc. (CLBK)'s operations as of late 2025, focusing on where the money goes to keep the bank running. Honestly, the story here is one of active management, especially around funding costs and operational overhead.

Interest expense on deposits and borrowings is a major component, and Columbia Financial, Inc. has been actively managing this for reduction. For the quarter ended September 30, 2025, the interest expense on deposits fell by $2.6 million, or 5.0%, year-over-year, while interest expense on borrowings saw a larger drop of $5.0 million, or 26.9%, compared to the same quarter in 2024. This reduction was a key factor in the net interest margin expanding to 2.29% for that quarter. Earlier in the year, for the first quarter ended March 31, 2025, the decrease in interest expense on deposits and borrowings contributed a $4.6 million reduction to net interest income compared to the prior year period. That same quarter, the average cost of interest-bearing liabilities decreased by 17 basis points to 3.21%.

When we look at the non-interest expenses, we see clear efforts toward efficiency. For the quarter ended March 31, 2025, Non-interest expense was $43.8 million, which represented a year-over-year decrease of $1.8 million, or 4.0%, from the $45.7 million reported in the first quarter of 2024. This operational discipline continued into the second quarter, where non-interest expenses fell to $44.9 million, a 2.9% decline year-over-year.

The drivers behind these non-interest expense changes are concrete examples of cost control. For instance, the Q1 2025 reduction was primarily due to a decrease in professional fees of $2.1 million, as legal, regulatory, and compliance-related costs came down, plus a $475,000 decrease in federal deposit insurance premiums. However, other costs are rising, reflecting investment or normal inflation. In the third quarter ended September 30, 2025, there was an increase in compensation and employee benefits expense of $1.5 million. Also, operating costs related to the 69 branch network and technology systems showed increases in specific areas during Q3 2025, with data processing and software expenses rising by $332,000, and occupancy expense increasing by $461,000.

The Provision for credit losses is another variable cost tied to asset quality. For the first quarter ended March 31, 2025, the provision decreased by $2.3 million, coming in at $2.9 million compared to $5.3 million in Q1 2024, largely because net charge-offs dropped from $5.0 million to approximately $857,000 year-over-year. A similar trend continued into Q3 2025, where the provision for credit losses decreased by $1.8 million (or 42.9%) to $2.3 million compared to Q3 2024.

Here's a quick look at some of those key expense movements from the first half of 2025:

• Non-interest expense for Q1 2025: $43.8 million
• Year-over-year drop in Non-interest expense (Q1 2025): $1.8 million
• Decrease in Provision for Credit Losses (Q1 2025 vs Q1 2024): $2.3 million
• Decrease in Interest Expense on Borrowings (Q3 2025 vs Q3 2024): $5.0 million
• Increase in Compensation and Employee Benefits (Q3 2025): $1.5 million

To be fair, managing personnel expenses for branch staff and lending teams is an ongoing balancing act, especially when the company is committing to investments in talent for future growth. We can see the impact of this in the Q3 2025 compensation increase, even as other non-interest costs are being trimmed. What this estimate hides is the exact breakdown of personnel costs versus technology spend across the 69 branch footprint.

The focus on reducing funding costs is clear, as seen in the year-to-date figures for the nine months ended September 30, 2025, where interest expense on borrowings decreased by $17.2 million. Finance: draft 13-week cash view by Friday.

Columbia Financial, Inc. (CLBK) - Canvas Business Model: Revenue Streams

The revenue streams for Columbia Financial, Inc. (CLBK) are fundamentally driven by its core banking activities, centered on earning interest from its assets and generating non-interest income through various service charges and fees.

Net Interest Income (NII) remains the primary component. For the third quarter ended September 30, 2025, Columbia Financial, Inc. reported NII of $57.4 million. This represented a significant year-over-year increase of 26.7% from $45.3 million in Q3 2024. The net interest margin (NIM) for Q3 2025 expanded to 2.29%, a 45 basis point increase from the prior year quarter.

Interest income is generated from a substantial asset base, primarily the loan portfolio and debt securities. While the prompt referenced an $8.0 billion loan portfolio for Q1 2025, the actual reported gross loans and leases for Columbia Financial, Inc. at the end of Q1 2025 (March 31, 2025) totaled $37.6 billion. The average yield on loans for Q3 2025 was 5.04%. The interest income from debt securities and other investments is also a key driver, with the average yield on securities for Q3 2025 increasing to 3.41%.

Columbia Financial, Inc. also captures revenue through non-interest income sources, which include fees and service charges. For the nine months ended September 30, 2025, non-interest income saw an increase of $2.9 million compared to the same period in 2024. Loan origination and servicing fees contribute to this segment, as evidenced by an increase of $475,000 in fees related to commercial account treasury services during Q1 2025 compared to Q1 2024. Prepayment penalties, which are included in interest income on loans, totaled $767,000 for Q3 2025.

Here's a look at the key income components across the first three quarters of 2025:

You can see the quarterly progression of the primary revenue driver in the table above. The growth in NII from Q1 to Q3 2025 is defintely a key focus area for management.

The non-interest income is sourced from several fee-based activities:

• Service charges on deposits.
• Card-based fees.
• Financial services and trust revenue.
• Residential mortgage banking revenue, net.
• Fees related to commercial account treasury services.