Columbia Financial (CLBK) closed out FY 2025 with Q4 total revenue of US$66.7 million and basic EPS of US$0.15, as the bank reported a full year of positive net income over the last twelve months. The company’s quarterly revenue moved from US$19.8 million in Q4 2024 to US$66.7 million in Q4 2025, while basic EPS shifted from a loss of US$0.21 to a profit of US$0.15 over the same period, providing a clearer earnings base against which investors can assess the latest release. With that backdrop and a full year of positive net income now recorded, the focus turns to how sustainable these margins appear from this point.

With the headline numbers in place, the next step is to line them up against the main stories circulating about Columbia Financial to see which narratives are supported and which ones the latest results start to challenge.

Profitability builds through FY 2025

• Across FY 2025, net income moved from US$8.9 million in Q1 to US$15.7 million in Q4, and on a trailing twelve month view earnings reached US$51.8 million with basic EPS of US$0.51.
• What stands out for the bullish narrative around improving fundamentals is that this full year of profit follows a trailing twelve month net loss of US$11.7 million and basic EPS loss of US$0.11 at Q4 2024. Quarterly basic EPS in 2025 rose from US$0.09 in Q1 to US$0.15 in Q4, which directly supports the view that the business has shifted from losses to positive, recurring earnings.

Net interest margin and loan book trends

• Net interest margin in the period moved from 1.84% in Q3 2024 to 2.11% in Q1 2025 and 2.29% in Q3 2025. Over the same period, total loans in the quarterly data rose from US$7.8b in Q4 2024 to US$8.2b in Q3 2025.
• For investors testing the bullish angle that the bank’s core lending engine is on firmer footing, the combination of a higher reported net interest margin and a loan book that increased from US$7.9b in Q1 2025 to US$8.2b in Q3 2025 suggests earnings are being supported by both pricing on assets and a larger balance of loans. This comes even as non performing loans in the quarterly snapshot ranged between US$21.7 million and US$39.5 million across the periods shown.

Premium valuation against historic earnings record

• Columbia Financial is reported to trade on a trailing P/E of 35.8x, compared with 15.7x for peers and 11.7x for the US Banks industry, while over the past five years reported earnings declined at an annualized rate of 33.6%.
• Critics highlight that this bearish concern about paying a premium multiple is grounded in the contrast between the current 35.8x trailing P/E and the multi year earnings decline. While the latest trailing twelve month net income of US$51.8 million and EPS of US$0.51 confirm the business is profitable again, the longer run 33.6% annualized drop in earnings over five years gives bears a concrete reason to question how much of the forecast growth is already reflected in the current valuation.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Columbia Financial's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

While Columbia Financial has returned to profitability, the combination of a 35.8x trailing P/E and a five year annualized earnings decline of 33.6% raises valuation concerns.

If you would rather focus on companies where current prices look more aligned with earnings power, use our these 874 undervalued stocks based on cash flows today to quickly surface ideas with valuations that may better fit your risk and return preferences.

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.