Janney starts Columbia Financial at Buy, sees balance sheet optionality

As previously reported, Janney Montgomery Scott initiated coverage of Columbia Financial with a Buy rating and $18 fair value estimate. Columbia Financial is the publicly-traded, majority-owned subsidiary of Columbia Bank, Mutual Holding Company, the mid-tier holding company for Columbia Bank and Freehold Bank, the analyst tells investors. The mutual holding company structure provides a unique opportunity to acquire other mutual institutions and Columbia has been acquisitive in recent years, completing four whole-bank deals since 2019, notes the analyst, who sees Columbia having “levers to pull to manage the income statement.”