Columbia Financial (CLBK) investor relations material

Deal rationale and strategic fit

• Merger creates the third-largest regional bank in New Jersey and a top 5 community bank in the NYC metro area, expanding into 14 NJ counties and key NY markets, with over 100 branches and leading deposit share in Brooklyn and Staten Island.

• Simultaneous second step conversion and acquisition eliminates the minority discount, accelerates normalized return on equity, and leverages capital for improved performance and growth.

• Combines experienced management teams with compatible cultures, strong community focus, and local decision-making.

• Northfield's established deposit franchise and commercial lending platform provide a foundation for sustainable growth and expansion.

Financial terms and conditions

• Merger valued at approximately $597–$613 million, or 0.86x Northfield's tangible book value, with consideration in stock or up to 30% cash.

• Northfield shareholders receive $14.25–$14.65 per share, representing a 15–20% premium over recent prices, with a pro forma exchange ratio for minority shareholders ranging from 1.8729–2.5340.

• Deal structure assumes 70% stock and 30% cash, with a gross offering size of $1.4–$1.9 billion and an appraisal value range of $1.9–$2.6 billion.

• Second step conversion to a fully public stockholding company is required for the merger to close.

Synergies and expected cost savings

• Projected 51% earnings accretion by 2027, with a 4.4% tangible book value dilution and a 1.8-year earnback period.

• Pre-tax cost savings estimated at 35% of Northfield's non-interest expense, phased in 50% in 2026, 90% in 2027, and 100% thereafter.

• Efficiency ratio expected to improve to 48%, better than peers, driven by technology investments and maturing higher-yielding assets.

• One-time pre-tax merger expenses of $55 million.