Investing.com - The Federal Reserve Board on Friday approved applications by Columbia Bank MHC (NASDAQ: COLB) and Columbia Financial, Inc. (NASDAQ: CLBK), both of Fair Lawn, New Jersey, allowing the banking organization to convert from mutual to stock form and acquire Northfield Bancorp, Inc.

The approvals allow Columbia Financial, Inc. to become a savings and loan holding company by acquiring Columbia Bank of Fair Lawn, New Jersey. Columbia Financial also received approval to acquire Northfield Bancorp of Woodbridge, New Jersey, and thereby indirectly acquire Northfield Bank of Staten Island, New York. Following the proposed acquisition, Northfield Bancorp would be merged into Columbia Financial, and Northfield Bank would be merged into Columbia Bank.

Columbia Bank MHC has consolidated assets of approximately $11.0 billion and controls approximately $8.5 billion in consolidated deposits, representing less than 1 percent of total deposits of insured depository institutions in the United States. Northfield Bancorp has consolidated assets of approximately $5.8 billion and controls approximately $4.0 billion in consolidated deposits. On consummation of the proposed conversion and acquisition, Columbia Financial would become the 110th largest insured depository organization in the United States with consolidated assets of approximately $18.1 billion.

The Board received two adverse comments on the proposal but determined that all considerations are consistent with approval. The Department of Justice conducted a review of the potential competitive effects and advised the Board that it did not conclude the proposal would have a significantly adverse effect on competition. Columbia Financial and Northfield Bancorp have subsidiary banks that compete directly in the Metro New York City and Philadelphia banking markets.

Columbia Bank MHC, Northfield Bancorp, and their subsidiary depository institutions are well capitalized. Following the proposed conversion, Columbia Financial would be well capitalized, and Columbia Bank would remain well capitalized upon consummation of the proposed acquisition of Northfield Bancorp.