Columbia Bank and Northfield to Merge: Is Your Local Branch on the Chopping Block?
the staff of the Ridgewood blog
Ridgewood NJ, the New Jersey banking landscape is shifting once again. Columbia Financial, the Fair Lawn-based parent of Columbia Bank, has announced a massive $597 million acquisition of Woodbridge-based Northfield Bancorp.
This powerhouse merger is set to create the third-largest regional bank headquartered in New Jersey, boasting a combined $18 billion in assets. But as the “super-community bank” trend accelerates, many Garden State residents are asking the same question: What happens to my local branch?
Expansion into New York: The Strategic Move
For Columbia Bank, which currently operates 71 branches from North Jersey down to Camden County, this deal is a ticket into the lucrative New York market. By acquiring Northfield’s 37 locations, Columbia will establish a major footprint in:
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Staten Island
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Brooklyn
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Central and North Jersey
Thomas Kemly, CEO of Columbia, noted that Northfield’s “conservative credit culture” and strong deposit franchise make it the perfect vehicle for future growth. Kemly will remain at the helm of the combined company, while Northfield CEO Steven Klein will transition to Senior Executive Vice President and COO.
Will Branches Close? The “Banking Desert” Concern
While Kemly stated he expects “no customer interruption,” history suggests that bank mergers often lead to “consolidation.”
Just last year, the merger of Lakeland Bank and Provident Bank resulted in the closure of 22 branches. Similarly, TD Bank recently shuttered eight locations across New Jersey. This trend has sparked warnings from advocacy groups like New Jersey Citizen Action (NJCA).
Why “Banking Deserts” Matter:
When regional banks merge and close overlapping branches, they risk creating “banking deserts,” particularly impacting:
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The Elderly: Who often rely on in-person services rather than mobile apps.
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Low-Income Communities: Who may lose access to essential credit and check-cashing services.
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Minority Neighborhoods: Where physical bank presence is a key driver of local economic growth.
“We hope Columbia Bank will stand out as a leader… and negotiate a Community Benefits Agreement that will outline their expanded commitments to New Jersey’s underserved communities.” — Leila Amirhamzeh, NJ Citizen Action
The Timeline: What Customers Need to Know
If you currently bank with Columbia or Northfield, here is the roadmap for 2026:
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Regulatory Review: The deal is currently undergoing federal and state oversight.
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Expected Completion: The merger is slated to wrap up in the third quarter of 2026.
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Transition: Customers can expect to receive new debit cards and updated account terms as the systems integrate toward the end of the year.
NJ Banking Merger Tracker: 2025-2026
| Bank Merger | Value | Result |
| Columbia + Northfield | $597 Million | Creates 3rd largest NJ regional bank. |
| Provident + Lakeland | $1.3 Billion | Resulted in 22 branch closures. |
| OceanFirst + Flushing | $597 Million | Expansion into Queens/Manhattan. |
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If their focus is ‘underserved communities’ I’d never invest in their stock.
I want banks that lend money to people who will actually pay it back