Columbia and Northfield Banks to Merge, Forming Third Largest Regional Bank in New Jersey

The $597 million deal would expand Columbia's footprint into New York, but raises concerns about potential branch closures.

Feb. 3, 2026 at 3:47am

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Columbia Financial, based in Fair Lawn, New Jersey, is acquiring Woodbridge-based Northfield Bancorp in a $597 million deal that would create the third largest regional bank headquartered in New Jersey. The merger would allow Columbia to expand into New York for the first time, tapping into consumer finance markets that Northfield has served in Brooklyn and Staten Island. However, the consolidation has triggered concern from consumer groups about potential branch closures and the impact on underserved communities.

Why it matters

The merger is part of a broader trend of consolidation among regional banks in New Jersey, which has raised concerns about the potential loss of local branches and access to banking services for vulnerable communities. The deal will be closely watched to see if the combined bank upholds its commitments to low- and moderate-income neighborhoods under the Community Reinvestment Act.

The details

Under the terms of the deal, Columbia will acquire Northfield's 37 branches across New Jersey, Staten Island and Brooklyn. The combined bank would have $18 billion in total assets. It is unclear if the merged entity will close any branches, but Columbia's CEO has stated they 'don't expect any customer interruption.' Northfield's CEO Steven Klein will take on the role of Columbia's senior executive vice president and chief operating officer, while Columbia's CEO Thomas Kemly will remain in charge. The board of directors will include four directors from Northfield and nine from Columbia.

  • The merger is expected to be completed in the third quarter of 2026.
  • A month ago, OceanFirst Financial Corp. announced plans to acquire Flushing Financial Corp. for $597 million in stock.

The players

Columbia Financial

A bank based in Fair Lawn, New Jersey that is acquiring Northfield Bancorp.

Northfield Bancorp

A bank based in Woodbridge, New Jersey that is being acquired by Columbia Financial.

Thomas Kemly

The chief executive officer of Columbia Financial, who will remain in charge of the combined bank.

Steven Klein

The chief executive officer of Northfield Bancorp, who will take on the role of senior executive vice president and chief operating officer at the combined bank.

Leila Amirhamzeh

The director of community reinvestment at New Jersey Citizen Action, a consumer group that has raised concerns about the merger.

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What they’re saying

“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.”

— Thomas Kemly, Chief Executive Officer, Columbia Financial (app.com)

“Under the current Administration federal regulatory oversight of mergers and acquisitions has been significantly weakened, with a streamlined approval process that limits opportunities for public comment and fails to take into account actual public benefit of proposed expansions.”

— Leila Amirhamzeh, Director of Community Reinvestment, New Jersey Citizen Action (app.com)

What’s next

The merger still requires regulatory approval and is expected to be completed in the third quarter of 2026.

The takeaway

This merger is part of a broader trend of consolidation among regional banks in New Jersey, which has raised concerns about the potential loss of local branches and access to banking services for vulnerable communities. The deal will be closely watched to see if the combined bank upholds its commitments to low- and moderate-income neighborhoods under the Community Reinvestment Act.