Columbia Financial (CLBK) said Thursday it repositioned its balance sheet in an effort to boost future earnings and grow its net interest margin.

The bank holding firm said it divested $321 million in available-for-sale debt securities with a 1.53% weighted average book yield, and an average life of 3.6 years, mainly purchased during the COVID period. The company used the proceeds for $85 million in loan growth, $66 million in higher-yielding debt securities, and $170 million to prepay high-cost borrowings.

The transaction resulted in about $38 million pre-tax loss but is expected to boost net interest income immediately and have no impact on tangible book value per share, the company said, adding that it expects a 24% increase in 2025 earnings and a 15 basis point rise in net interest margin compared to current analyst projections, with an estimated payback period of 3.1 years.

Columbia Financial said that after the transaction, it will maintain "well capitalized" regulatory capital ratios, with an estimated total capital to risk-weighted assets ratio at 13.87% and a tier 1 leverage capital ratio of 9.99%.

Shares of Columbia Financial were down 0.3% in recent trading.

Price: 17.75, Change: -0.05, Percent Change: -0.28