Columbia Financial (CLBK) is in focus after reporting first quarter 2026 earnings, with net interest income of US$60.39 million and net income of US$13.1 million compared with the same quarter a year earlier.

The earnings release appears to have kept momentum building, with a 1-day share price return of 1.93% and year to date share price return of 20.10%. The 1-year total shareholder return of 33.05% reflects stronger gains when dividends are included.

If this earnings move has you looking beyond a single regional bank, it could be a useful time to widen your watchlist and check out 18 top founder-led companies

With earnings per share at US$0.13 and the stock recently closing at US$18.52, Columbia Financial is not priced for extremes. However, after a 33.05% 1 year total return, are you seeing an opportunity, or is future growth already in the price?

Preferred P/E of 34.5x: Is it justified?

At a last close of $18.52, Columbia Financial trades on a P/E of 34.5x, which sits well above both the US Banks industry and its direct peers.

The P/E ratio compares the current share price to earnings per share, so a higher multiple often signals that the market is pricing in stronger earnings power. For a regional bank like Columbia Financial, that kind of premium usually reflects expectations around future profit growth rather than current profitability alone.

Here, the market’s stance is clear. Columbia Financial is described as expensive versus the US Banks industry average P/E of 11.5x and against a peer average of 14.2x, which is a sizeable step up. However, the estimated fair P/E of 43.7x points to a level the market could move towards if earnings progress matches expectations, suggesting the current premium is not out of line with that fair ratio.

Result: Price-to-earnings of 34.5x (OVERVALUED)

However, that kind of premium can come under pressure if earnings stumble or if sentiment toward regional banks and New Jersey concentrated loan books weakens.

Next Steps

The debate around whether this valuation is rich or reasonable is only useful if you weigh it against your own expectations and risk tolerance. Take a closer look at what investors are optimistic about by checking the 2 key rewards.

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.