The Federal Reserve Board on Friday granted approvals to Columbia Bank MHC and Columbia Financial, Inc., both of Fair Lawn, New Jersey, allowing the organizations to proceed with a conversion from mutual to stock form and to complete a related acquisition of Northfield Bancorp, Inc.
Under the approvals, Columbia Financial, Inc. may become a savings and loan holding company through the acquisition of Columbia Bank of Fair Lawn, New Jersey. Columbia Financial also received clearance to acquire Northfield Bancorp of Woodbridge, New Jersey, which would entail the indirect acquisition of Northfield Bank of Staten Island, New York.
The approved transactions contemplate that, upon closing, Northfield Bancorp would be merged into Columbia Financial, and Northfield Bank would be merged into Columbia Bank. The combination would consolidate the organizations' assets and deposits under Columbia Financial and Columbia Bank management.
On a consolidated basis, Columbia Bank MHC reported approximately $11.0 billion in assets and controls about $8.5 billion in consolidated deposits. The Fed noted that those deposits represent less than 1 percent of total deposits held by insured depository institutions in the United States. Northfield Bancorp reported consolidated assets of about $5.8 billion and controls approximately $4.0 billion in consolidated deposits.
If the conversion and acquisition are consummated as proposed, Columbia Financial would have consolidated assets of approximately $18.1 billion and would rank as the 110th largest insured depository organization in the United States based on consolidated assets.
The Board disclosed that it received two adverse comments concerning the proposal. Despite those comments, the Board concluded that the statutory and regulatory considerations it reviewed were consistent with granting approval.
As part of its review of competitive effects, the Department of Justice examined the transaction and informed the Board that it did not conclude the proposal would have a significantly adverse effect on competition. The two organizations and their subsidiary banks do compete directly in the Metro New York City and Philadelphia banking markets, a factor that was considered during regulatory review.
The Fed also reported on capital adequacy. Columbia Bank MHC, Northfield Bancorp, and their subsidiary depository institutions are characterized as well capitalized. The Board found that following the proposed conversion Columbia Financial would be well capitalized, and that Columbia Bank would remain well capitalized upon completion of the proposed acquisition of Northfield Bancorp.
This approval clears the regulatory path for the mutual-to-stock conversion and the planned consolidation of Columbia and Northfield operations, subject to the parties consummating the transactions and meeting any additional conditions required by applicable law and regulatory practice.