Columbia Financial, Inc. (the “Company”) (NASDAQ: CLBK), the
mid-tier holding company for Columbia Bank ("Columbia") and
Freehold Bank ("Freehold"), reported net income of $4.5 million, or
$0.04 per basic and diluted share, for the quarter ended
June 30, 2024, as compared to $1.7 million, or $0.02 per basic
and diluted share, for the quarter ended June 30, 2023. The
income for the quarter ended June 30, 2024 reflected higher
non-interest income, mainly due to the 2023 period including a $9.6
million loss on securities transactions, and lower non-interest
expense, partially offset by lower net interest income, mainly due
to an increase in interest expense, higher provision for credit
losses and higher income tax expense. For the quarter ended
June 30, 2024, the Company reported core net income of $5.3
million, a decrease of $6.5 million, or 54.9%, compared to core net
income of $11.7 million for the quarter ended June 30, 2023.
For the six months ended June 30, 2024, the
Company reported net income of $3.4 million, or $0.03 per basic and
diluted share, as compared to $20.4 million, or $0.20 per basic and
diluted share, for the six months ended June 30, 2023.
Earnings for the six months ended June 30, 2024 reflected
lower net interest income, mainly due to an increase in interest
expense, a higher provision for credit losses and higher
non-interest expense, partially offset by higher non-interest
income and lower income tax expense. Non-interest income for the
2023 period included a $10.8 million loss on securities
transactions.
Mr. Thomas J. Kemly, President and Chief
Executive Officer commented: “The second quarter results showed
improvement over the first quarter despite continuing pressure on
funding costs. Our net interest margin increased 6 basis points
over the first quarter of 2024 and we believe net interest margin
expansion and expense management will improve earnings on a go
forward basis. The Company's balance sheet, asset quality and
capital remain strong, and we have maintained a stable, diversified
deposit base and abundant liquidity. During the quarter, the Bank
also expanded its presence in southern New Jersey by opening a new
branch in the city of Camden.”
Results of Operations for the Three
Months Ended June 30, 2024
and June 30, 2023
Net income of $4.5 million was recorded for the
quarter ended June 30, 2024, an increase of $2.9 million, or
172.8%, compared to $1.7 million for the quarter ended
June 30, 2023. The increase in net income was primarily
attributable to a $9.7 million increase in non-interest income,
mainly due to the 2023 period including a $9.6 million loss on
securities transactions, and a $1.4 million decrease in
non-interest expense, partially offset by a $7.1 million decrease
in net interest income, and a $1.1 million increase in provision
for credit losses.
Net interest income was $44.1 million for the
quarter ended June 30, 2024, a decrease of $7.1 million, or
13.8%, from $51.2 million for the quarter ended June 30, 2023.
The decrease in net interest income was primarily attributable to a
$24.2 million increase in interest expense on deposits and
borrowings, partially offset by a $17.1 million increase in
interest income. The increase in interest income was primarily due
to an increase in the average balance of total interest-earning
assets coupled with an increase in average yields due to market
interest rate increases that occurred over the previous year, and
adjustable rate securities and loans tied to various indexes that
repriced higher in the 2024 period. The increase in interest
expense on deposits was driven by these same rate increases and an
increase in the average balance of interest-bearing deposits,
coupled with intense competition for deposits in the market and the
repricing of existing deposits into higher cost products. The
increase in interest expense on borrowings was also impacted by an
increase in the average balance of borrowings and the increase in
interest rates for new borrowings. Prepayment penalties, which are
included in interest income on loans, totaled $436,000 for the
quarter ended June 30, 2024, compared to $116,000 for the
quarter ended June 30, 2023.
The average yield on loans for the quarter ended
June 30, 2024 increased 57 basis points to 4.93%, as compared
to 4.36% for the quarter ended June 30, 2023, as interest
income was influenced by rising interest rates and loan growth. The
average yield on securities for the quarter ended June 30,
2024 increased 56 basis points to 2.89%, as compared to 2.33% for
the quarter ended June 30, 2023, as new securities purchased
during the 2024 period were at higher rates. The average yield on
other interest-earning assets for the quarter ended June 30,
2024 increased 22 basis points to 6.30%, as compared to 6.08% for
the quarter ended June 30, 2023, due to the rise in average
balances and interest rates paid on cash balances and an increase
in the dividend rate paid on Federal Home Loan Bank stock.
Total interest expense was $69.2 million for the
quarter ended June 30, 2024, an increase of $24.2 million, or
53.8%, from $45.0 million for the quarter ended June 30, 2023.
The increase in interest expense was primarily attributable to a
124 basis point increase in the average cost of interest-bearing
deposits, coupled with an increase in the average balance of
interest-bearing deposits, along with a 20 basis point increase in
the average cost of borrowings, coupled with an increase in the
average balance of borrowings. Interest expense on deposits
increased $21.1 million, or 73.4%, and interest expense on
borrowings increased $3.1 million, or 19.2%.
The Company's net interest margin for the
quarter ended June 30, 2024 decreased 36 basis points to
1.81%, when compared to 2.17% for the quarter ended June 30,
2023. The weighted average yield on interest-earning assets
increased 57 basis points to 4.64% for the quarter ended
June 30, 2024, as compared to 4.07% for the quarter ended
June 30, 2023. The average cost of interest-bearing
liabilities increased 107 basis points to 3.49% for the quarter
ended June 30, 2024, as compared to 2.42% for the quarter
ended June 30, 2023. The increase in yields for the quarter
ended June 30, 2024 was due to the impact of market interest
rate increases between periods. The net interest margin decreased
for the quarter ended June 30, 2024, as the increase in the
average cost of interest-bearing liabilities outweighed the
increase in the average yield on interest-earning assets. The
Company's net interest margin for the quarter ended June 30,
2024 when compared to the quarter ended March 31, 2024 increased 6
basis points from 1.75% to 1.81%.
The provision for credit losses for the quarter
ended June 30, 2024 was $2.2 million, an increase of $1.1
million, from $1.1 million for the quarter ended June 30,
2023. The increase in provision for credit losses during the
quarter was primarily attributable to net charge-offs totaling
$533,000 and an increase in quantitative loss
rates.
Non-interest income was $9.2 million for the
quarter ended June 30, 2024, an increase of $9.7 million, from
$(546,000) for the quarter ended June 30, 2023. The increase
was primarily attributable to a decrease in the loss on securities
transactions of $9.6 million.
Non-interest expense was $46.2 million for the
quarter ended June 30, 2024, a decrease of $1.4 million, from
$47.6 million for the quarter ended June 30, 2023. The
decrease was primarily attributable to a decrease in compensation
and employee benefits expense of $4.8 million, partially offset by
an increase in professional fees of $2.1 million, and an increase
in merger expenses of $426,000. The decrease in compensation and
employee benefits expense was the result of workforce reduction and
other related employee expense cutting strategies implemented
during 2023 and 2024. Professional fees included an increase in
legal, regulatory and compliance-related costs.
Income tax expense was $279,000 for the quarter
ended June 30, 2024, an increase of $22,000, as compared to
income tax expense of $257,000 for the quarter ended June 30,
2023, mainly due to an increase in pre-tax income. The Company's
effective tax rate was 5.8% and 13.4% for the quarters ended
June 30, 2024 and 2023, respectively. The effective tax rate
for the 2024 period was primarily impacted by permanent income tax
differences, and the effective tax rate for the 2023 period was
primarily impacted by the loss on the sale of securities.
Results of Operations for the Six Months
Ended June 30, 2024
and June 30, 2023
Net income of $3.4 million was recorded for the
six months ended June 30, 2024, a decrease of $17.0 million,
or 83.4%, compared to $20.4 million for the six months ended
June 30, 2023. The decrease in net income was primarily
attributable to a $25.7 million decrease in net interest income, a
$6.2 million increase in provision for credit losses, and a
$397,000 increase in non-interest expense, partially offset by a
$9.1 million increase in non-interest income and a $6.2 million
decrease in income tax expense.
Net interest income was $86.3 million for the
six months ended June 30, 2024, a decrease of $25.7 million,
or 23.0%, from $112.0 million for the six months ended
June 30, 2023. The decrease in net interest income was
primarily attributable to a $58.6 million increase in interest
expense on deposits and borrowings, partially offset by a $32.9
million increase in interest income. The increase in interest
income was primarily due to an increase in the average balance of
total interest-earning assets coupled with an increase in average
yields due to market interest rate increases that occurred over the
previous year and adjustable rate securities and loans tied to
various indexes that repriced higher in the 2024 period. The
increase in interest expense on deposits was driven by these same
rate increases coupled with intense competition for deposits in the
market, an increase in average balances of deposits, and the
repricing of existing deposits into higher cost products. The
increase in interest expense on borrowings was also impacted by an
increase in the average balance of borrowings and the increase in
interest rates for new borrowings. Prepayment penalties, which are
included in interest income on loans, totaled $703,000 for the six
months ended June 30, 2024, compared to $315,000 for the six
months ended June 30, 2023.
The average yield on loans for the six months
ended June 30, 2024 increased 56 basis points to 4.86%, as
compared to 4.30% for the six months ended June 30, 2023, as
interest income was influenced by higher interest rates and loan
growth. The average yield on securities for the six months ended
June 30, 2024 increased 33 basis points to 2.77%, as compared
to 2.44% for the six months ended June 30, 2023, as a number
of adjustable rate securities tied to various indexes repriced
higher during the six months, and new securities purchased during
the 2024 period were at higher yields. The average yield on other
interest-earning assets for the six months ended June 30, 2024
increased 93 basis points to 6.19%, as compared to 5.26% for the
six months ended June 30, 2023, due to the rise in average
balances and interest rates paid on cash balances and an increase
in the dividend rate paid on Federal Home Loan Bank stock.
Total interest expense was $135.6 million for
the six months ended June 30, 2024, an increase of $58.6
million, 76.1%, from $77.0 million for the six months ended
June 30, 2023. The increase in interest expense was primarily
attributable to a 157 basis point increase in the average cost of
interest-bearing deposits, coupled with an increase in the average
balance of interest-bearing deposits, along with a 29 basis point
increase in the average cost of borrowings, and an increase in the
average balance of borrowings. Interest expense on deposits
increased $52.4 million, or 114.4%, and interest expense on
borrowings increased $6.2 million, or 19.9%.
The Company's net interest margin for the six
months ended June 30, 2024 decreased 59 basis points to 1.78%,
when compared to 2.37% for the six months ended June 30, 2023.
The weighted average yield on interest-earning assets increased 57
basis points to 4.57% for the six months ended June 30, 2024,
as compared to 4.00% for the six months ended June 30, 2023.
The average cost of interest-bearing liabilities increased 136
basis points to 3.44% for the six months ended June 30, 2024,
as compared to 2.08% for the six months ended June 30, 2023.
The increase in yields for the six months ended June 30, 2024
was due to the impact of market interest rate increases between
periods. The net interest margin decreased for the six months ended
June 30, 2024, as the increase in the average cost of
interest-bearing liabilities outweighed the increase in the average
yield on interest-earning assets.
The provision for credit losses for the six
months ended June 30, 2024 was $7.5 million, an increase of
$6.2 million, from $1.3 million for the six months ended
June 30, 2023. The increase in provision for credit losses
during the six months was primarily attributable to net charge-offs
totaling $5.5 million and an increase in quantitative loss
rates.
Non-interest income was $16.6 million for the
six months ended June 30, 2024, an increase of $9.1 million,
from $7.5 million for the six months ended June 30, 2023. The
increase was primarily attributable to a decrease in the loss on
securities transactions of $9.6 million.
Non-interest expense was $91.9 million for the
six months ended June 30, 2024, an increase of $397,000, from
$91.5 million for the six months ended June 30, 2023. The
increase was primarily attributable to an increase in federal
deposit insurance premiums of $1.8 million, due to the 2024 period
including an increase in a one-time special assessment charge, an
increase in professional fees of $4.9 million, and an increase in
other non-interest expense of $888,000, partially offset by a
decrease in compensation and employee benefits expense of $8.4
million. Professional fees included an increase in legal,
regulatory and compliance-related costs. The decrease in
compensation and employee benefits expense was the result of
workforce reduction and other related employee expense cutting
strategies implemented during 2023 and 2024.
Income tax expense was $150,000 for the six
months ended June 30, 2024, a decrease of $6.2 million, as
compared to income tax expense of $6.4 million for the six months
ended June 30, 2023, mainly due to a decrease in pre-tax
income. The Company's effective tax rate was 4.2% and 23.9% for the
six months ended June 30, 2024 and 2023, respectively. The
effective tax rate for the 2024 period was also impacted by
permanent income tax differences.
Balance Sheet Summary
Total assets increased $118.0 million, or 1.1%,
to $10.8 billion at June 30, 2024 as compared to
December 31, 2023. The increase in total assets was primarily
attributable to an increase in debt securities available for sale
of $169.9 million, an increase in debt securities held to maturity
of $10.1 million, and an increase in other assets of $15.9 million,
partially offset by a decrease in cash and cash equivalents of
$32.1 million, and a decrease in loans receivable, net, of $57.5
million.
Cash and cash equivalents decreased $32.1
million, or 7.6%, to $391.1 million at June 30, 2024 from
$423.2 million at December 31, 2023. The decrease was
primarily attributable to purchases of debt securities available
for sale of $246.2 million, repurchases of common stock under our
stock repurchase program of $5.9 million and a decrease in total
deposits of $65.0 million, partially offset by proceeds from
principal repayments on securities of $59.5 million, and repayments
on loans receivable.
Debt securities available for sale increased
$169.9 million, or 15.5%, to $1.3 billion at June 30, 2024
from $1.1 billion at December 31, 2023. The increase was
attributable to the purchases of debt securities available for sale
of $246.2 million, consisting primarily of U.S. government
obligations and mortgage-backed securities, partially offset by
repayments on securities of $53.0 million, maturities of securities
of $10.0 million, an increase in the gross unrealized loss on
securities of $8.8 million, and the sale of one corporate debt
security with a carrying value of $4.8 million, resulting in a loss
of $1.3 million.
Loans receivable, net, decreased $57.5 million,
or 0.7%, with a balance of $7.8 billion at both June 30, 2024
and December 31, 2023. One-to-four family real estate loans,
commercial real estate loans, and home equity loans and advances
decreased $28.7 million, $60.8 million, and $6.2 million,
respectively, partially offset by increases in construction loans
of $19.8 million and commercial business loans of $21.7 million.
The allowance for credit losses for loans increased $2.0 million to
$57.1 million at June 30, 2024 from $55.1 million at
December 31, 2023.
Total liabilities increased $111.6 million, or
1.2%, to $9.7 billion at June 30, 2024 as compared to $9.6
billion at December 31, 2023. The increase was primarily
attributable to an increase in borrowings of $155.2 million, or
10.2%, and an increase in accrued expenses and other liabilities of
$17.1 million, or 9.2%, partially offset by a decrease in total
deposits of $65.0 million, or 0.8%. The $155.2 million increase in
borrowings was primarily driven by a net increase in short-term
borrowings of $15.2 million and an increase in long-term borrowings
of $210.0 million, partially offset by repayments of $70.0 million
in maturing long-term borrowings. The $17.1 million increase in
accrued expenses and other liabilities was primarily attributable
to an $18.3 million net increase in balances related to our
interest rate swap program. The decrease in total deposits
primarily consisted of decreases in non-interest-bearing demand
deposits, interest-bearing demand deposits, money market accounts,
and savings and club accounts of $31.9 million, $62.0 million, $8.9
million, and $27.3 million, respectively, partially offset by an
increase in certificates of deposit of $65.1 million.
Total stockholders’ equity increased $6.4
million, or 0.6%, with a balance of $1.0 billion at both
June 30, 2024 and December 31, 2023. The increase in
total stockholders' equity was primarily attributable to net income
of $3.4 million, a $4.3 million increase in stock based
compensation and an increase of $3.3 million in other comprehensive
income, which includes changes in unrealized losses on debt
securities available for sale and unrealized gains on swap
contracts, net of taxes, included in other comprehensive income.
These increases were partially offset by the repurchase of 365,116
shares of common stock at a cost of approximately $5.9 million, or
$16.14 per share, under our stock repurchase program. Repurchases
have been paused in order to retain capital.
Asset Quality
The Company's non-performing loans at
June 30, 2024 totaled $25.3 million, or 0.33% of total gross
loans, as compared to $12.6 million, or 0.16% of total gross loans,
at December 31, 2023. The $12.7 million increase in
non-performing loans was primarily attributable to an increase in
non-performing one-to-four family real estate loans of $2.6
million, an increase in non-performing commercial real estate loans
of $5.3 million, and an increase in non-performing commercial
business loans of $4.8 million. One borrower with an outstanding
$5.7 million commercial real estate loan and a related $2.6 million
commercial business loan was placed on non-accrual status,
representing approximately 66% of the increase in non-performing
loans, during the 2024 period. The borrower is a healthcare
facility that is in the process of being acquired. The Company has
the first lien on the healthcare facility which has a 2024
appraised value of approximately $18.5 million along with
additional collateral. The acquiring entity, which has strong cash
flow, has partially guaranteed the commercial business loan and has
provided cash collateral. One commercial real estate loan for $2.0
million secured by a medical condominium was transferred to other
real estate owned in May 2024, and a related commercial business
loan to the same borrower for $54,000 was charged-off during the
quarter ended June 30, 2024.
The increase in non-performing one-to-four
family real estate loans was due to an increase in the number of
loans from 17 non-performing loans at December 31, 2023 to 21 loans
at June 30, 2024. Non-performing assets as a percentage of
total assets totaled 0.25% and 0.12% at June 30, 2024 and
December 31, 2023, respectively.
For the quarter ended June 30, 2024, net
charge-offs totaled $533,000, as compared to $495,000 in net
charge-offs recorded for the quarter ended June 30, 2023. For
the six months ended June 30, 2024, net charge-offs totaled
$5.5 million, as compared to $600,000 in net charge-offs recorded
for the six months ended June 30, 2023. Net charge-offs
recorded for the six months ended June 30, 2024 included
charge-offs related to seven commercial business loans totaling
$5.6 million. Three of the seven loans represented $4.9 million of
charge-offs and two of these borrowers continue making monthly
payments. Management expects some additional recoveries from these
borrowers on a go forward basis.
The Company's allowance for credit losses on
loans was $57.1 million, or 0.73% of total gross loans, at
June 30, 2024, compared to $55.1 million, or 0.70% of total
gross loans, at December 31, 2023.
Additional Liquidity, Loan, and Deposit
Information
The Company services a diverse retail and
commercial deposit base through its 68 branches. With over 216,000
accounts, the average deposit account balance was approximately
$36,000 at June 30, 2024.
The Company had uninsured deposits totaling $2.1
billion at June 30, 2024 and $1.9 billion at March 31, 2024,
excluding municipal deposits of $831.2 million and $826.5 million,
respectively, which are collateralized, and intercompany deposits
of $13.8 million at June 30, 2024 compared to $3.5 billion at
March 31, 2024, a decrease of 99.6%. Intercompany deposits
significantly decreased as the Company dissolved subsidiaries
during the quarter ended June 30, 2024.
The Company had uninsured deposits as summarized
below:
| |
At June 30, 2024 |
|
At March 31, 2024 |
| |
(Dollars in thousands) |
| |
|
|
|
|
Uninsured deposits |
$ |
2,070,601 |
|
|
$ |
1,888,443 |
|
| Uninsured deposits to total
deposits |
|
26.6 |
% |
|
|
24.1 |
% |
| |
|
|
|
|
|
|
|
Deposit balances are summarized as follows:
| |
At June 30, 2024 |
|
At March 31, 2024 |
| |
Balance |
|
Weighted Average Rate |
|
Balance |
|
Weighted Average Rate |
| |
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
|
Non-interest-bearing demand |
$ |
1,405,441 |
|
— |
% |
|
$ |
1,415,909 |
|
— |
% |
| Interest-bearing demand |
|
1,904,483 |
|
2.37 |
|
|
|
1,929,490 |
|
2.23 |
|
| Money market accounts |
|
1,246,663 |
|
3.17 |
|
|
|
1,228,098 |
|
3.26 |
|
| Savings and club deposits |
|
673,031 |
|
0.83 |
|
|
|
687,303 |
|
0.73 |
|
| Certificates of deposit |
|
2,551,929 |
|
4.34 |
|
|
|
2,568,603 |
|
4.20 |
|
|
Total deposits |
$ |
7,781,547 |
|
2.56 |
% |
|
$ |
7,829,403 |
|
2.50 |
% |
|
|
The Company continues to maintain strong
liquidity and capital positions. The Company had no outstanding
borrowings from the Federal Reserve Discount Window at
June 30, 2024. As of June 30, 2024, the Company had
immediate access to approximately $2.3 billion of funding, with
additional unpledged loan collateral in excess of $1.6 billion.
At June 30, 2024, the Company's
non-performing commercial real estate loans totaled $8.1 million,
or 0.10%, of the total loans receivable loan portfolio balance.
The following table presents multifamily real
estate, owner occupied commercial real estate, and the components
of investor owned commercial real estate loans included in the real
estate loan portfolio.
| |
At June 30, 2024 |
| |
(Dollars in thousands) |
| |
Balance |
|
% of Gross Loans |
|
Weighted Average Loan to Value Ratio |
|
Weighted Average Debt Service Coverage |
|
Multifamily Real Estate |
$ |
1,409,316 |
|
18.1 |
% |
|
62.0 |
% |
|
1.61x |
| |
|
|
|
|
|
|
|
| Owner Occupied Commercial Real
Estate |
$ |
699,807 |
|
9.0 |
% |
|
55.0 |
% |
|
2.10x |
| |
|
|
|
|
|
|
|
| Investor Owned Commercial Real
Estate: |
|
|
|
|
|
|
|
|
Retail / Shopping centers |
$ |
498,623 |
|
6.4 |
% |
|
52.3 |
% |
|
1.59x |
|
Mixed Use |
|
211,550 |
|
2.7 |
|
|
58.6 |
|
|
1.61 |
|
Industrial / Warehouse |
|
381,154 |
|
4.9 |
|
|
55.9 |
|
|
1.70 |
|
Non-Medical Office |
|
197,009 |
|
2.5 |
|
|
54.8 |
|
|
1.47 |
|
Medical Office |
|
126,566 |
|
1.6 |
|
|
57.9 |
|
|
1.50 |
|
Single Purpose |
|
70,315 |
|
0.9 |
|
|
53.1 |
|
|
3.69 |
|
Other |
|
131,228 |
|
1.7 |
|
|
51.9 |
|
|
1.68 |
|
Total |
$ |
1,616,445 |
|
20.8 |
% |
|
54.7 |
% |
|
1.69x |
| |
|
|
|
|
|
|
|
|
Total Multifamily and Commercial Real Estate Loans |
$ |
3,725,568 |
|
48.0 |
% |
|
57.5 |
% |
|
1.74x |
|
|
As of June 30, 2024, the Company had less than
$1.0 million in loan exposure to office or rent stabilized
multifamily loans in New York City.
About Columbia Financial,
Inc.
The consolidated financial results include the
accounts of Columbia Financial, Inc., its wholly-owned subsidiaries
Columbia Bank and Freehold Bank, and their wholly-owned
subsidiaries. Columbia Financial, Inc. is a Delaware corporation
organized as Columbia Bank's mid-tier stock holding company.
Columbia Financial, Inc. is a majority-owned subsidiary of Columbia
Bank, MHC. Columbia Bank is a federally chartered savings bank
headquartered in Fair Lawn, New Jersey that operates 66
full-service banking offices. Freehold Bank is a federally
chartered savings bank headquartered in Freehold, New Jersey that
operates 2 full-service banking offices. Both banks offer
traditional financial services to consumers and businesses in their
market areas.
Forward Looking Statements
Certain statements herein constitute
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Exchange
Act and are intended to be covered by the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Such
statements may be identified by words such as “believes,” “will,”
“would,” “expects,” “projects,” “may,” “could,” “developments,”
“strategic,” “launching,” “opportunities,” “anticipates,”
“estimates,” “intends,” “plans,” “targets” and similar expressions.
These statements are based upon the current beliefs and
expectations of the Company’s management and are subject to
significant risks and uncertainties. Actual results may differ
materially from those set forth in the forward-looking statements
as a result of numerous factors. Factors that could cause such
differences to exist include, but are not limited to, adverse
conditions in the capital and debt markets and the impact of such
conditions on the Company’s business activities; changes in
interest rates, higher inflation and their impact on national and
local economic conditions; changes in monetary and fiscal policies
of the U.S. Treasury, the Board of Governors of the Federal Reserve
System and other governmental entities; the impact of legal,
judicial and regulatory proceedings or investigations, competitive
pressures from other financial institutions; the effects of general
economic conditions on a national basis or in the local markets in
which the Company operates, including changes that adversely affect
a borrowers’ ability to service and repay the Company’s loans; the
effect of acts of terrorism, war or pandemics,, including on our
credit quality and business operations, as well as its impact on
general economic and financial market conditions; changes in the
value of securities in the Company’s portfolio; changes in loan
default and charge-off rates; fluctuations in real estate values;
the adequacy of loan loss reserves; decreases in deposit levels
necessitating increased borrowing to fund loans and securities;
legislative changes and changes in government regulation; changes
in accounting standards and practices; the risk that goodwill and
intangibles recorded in the Company’s consolidated financial
statements will become impaired; cyber-attacks, computer viruses
and other technological risks that may breach the security of our
systems and allow unauthorized access to confidential information;
the inability of third party service providers to perform; demand
for loans in the Company’s market area; the Company’s ability to
attract and maintain deposits and effectively manage liquidity;
risks related to the implementation of acquisitions, dispositions,
and restructurings; the risk that the Company may not be successful
in the implementation of its business strategy, or its integration
of acquired financial institutions and businesses, and changes in
assumptions used in making such forward-looking statements which
are subject to numerous risks and uncertainties, including but not
limited to, those set forth in Item 1A of the Company's Annual
Report on Form 10-K and those set forth in the Company's Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K, all as filed
with the Securities and Exchange Commission (the “SEC”), which are
available at the SEC’s website, www.sec.gov. Should one or more of
these risks materialize or should underlying beliefs or assumptions
prove incorrect, the Company's actual results could differ
materially from those discussed. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date of this release. The Company disclaims any
obligation to publicly update or revise any forward-looking
statements to reflect changes in underlying assumptions or factors,
new information, future events or other changes, except as required
by law.
Non-GAAP Financial Measures
Reported amounts are presented in accordance
with U.S. generally accepted accounting principles ("GAAP"). This
press release also contains certain supplemental non-GAAP
information that the Company’s management uses in its analysis of
the Company’s financial results. Specifically, the Company provides
measures based on what it believes are its operating earnings on a
consistent basis and excludes material non-routine operating items
which affect the GAAP reporting of results of operations. The
Company’s management believes that providing this information to
analysts and investors allows them to better understand and
evaluate the Company’s core financial results for the periods
presented. Because non-GAAP financial measures are not
standardized, it may not be possible to compare these financial
measures with other companies' non-GAAP financial measures having
the same or similar names.
The Company also provides measurements and
ratios based on tangible stockholders' equity. These measures are
commonly utilized by regulators and market analysts to evaluate a
company’s financial condition and, therefore, the Company’s
management believes that such information is useful to
investors.
A reconciliation of GAAP to non-GAAP financial
measures are included at the end of this press release. See
"Reconciliation of GAAP to Non-GAAP Financial Measures".
|
COLUMBIA FINANCIAL, INC. AND
SUBSIDIARIESConsolidated Statements of Financial
Condition(In thousands) |
|
|
| |
June 30, |
|
December 31, |
|
|
|
2024 |
|
|
2023 |
|
Assets |
(Unaudited) |
|
|
|
Cash and due from banks |
$ |
391,004 |
|
$ |
423,140 |
|
Short-term investments |
|
110 |
|
|
109 |
|
Total cash and cash equivalents |
|
391,114 |
|
|
423,249 |
| |
|
|
|
|
Debt securities available for sale, at fair value |
|
1,263,459 |
|
|
1,093,557 |
| Debt securities held to
maturity, at amortized cost (fair value of $365,344, and $357,177
at June 30, 2024 and December 31, 2023,
respectively) |
|
411,300 |
|
|
401,154 |
|
Equity securities, at fair value |
|
4,531 |
|
|
4,079 |
|
Federal Home Loan Bank stock |
|
87,618 |
|
|
81,022 |
| |
|
|
|
|
Loans receivable |
|
7,819,011 |
|
|
7,874,537 |
|
Less: allowance for credit losses |
|
57,062 |
|
|
55,096 |
|
Loans receivable, net |
|
7,761,949 |
|
|
7,819,441 |
| |
|
|
|
|
Accrued interest receivable |
|
41,338 |
|
|
39,345 |
|
Office properties and equipment, net |
|
82,547 |
|
|
83,577 |
|
Bank-owned life insurance |
|
271,300 |
|
|
268,362 |
|
Goodwill and intangible assets |
|
122,102 |
|
|
123,350 |
|
Other real estate owned |
|
1,974 |
|
|
— |
|
Other assets |
|
324,358 |
|
|
308,432 |
|
Total assets |
$ |
10,763,590 |
|
$ |
10,645,568 |
| |
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
| Liabilities: |
|
|
|
|
Deposits |
$ |
7,781,547 |
|
$ |
7,846,556 |
|
Borrowings |
|
1,683,899 |
|
|
1,528,695 |
|
Advance payments by borrowers for taxes and insurance |
|
47,842 |
|
|
43,509 |
|
Accrued expenses and other liabilities |
|
203,568 |
|
|
186,473 |
|
Total liabilities |
|
9,716,856 |
|
|
9,605,233 |
| |
|
|
|
| Stockholders' equity: |
|
|
|
|
Total stockholders' equity |
|
1,046,734 |
|
|
1,040,335 |
|
Total liabilities and stockholders' equity |
$ |
10,763,590 |
|
$ |
10,645,568 |
| |
|
|
|
| |
|
|
|
COLUMBIA FINANCIAL, INC. AND
SUBSIDIARIESConsolidated Statements of
Income(In thousands, except per share
data) |
|
|
| |
Three Months EndedJune 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Interest income: |
(Unaudited) |
|
(Unaudited) |
|
Loans receivable |
$ |
95,252 |
|
$ |
84,188 |
|
|
$ |
188,201 |
|
|
$ |
164,478 |
|
|
Debt securities available for sale and equity securities |
|
9,241 |
|
|
6,445 |
|
|
|
17,026 |
|
|
|
14,896 |
|
|
Debt securities held to maturity |
|
2,502 |
|
|
2,447 |
|
|
|
4,871 |
|
|
|
4,904 |
|
|
Federal funds and interest-earning deposits |
|
4,459 |
|
|
1,801 |
|
|
|
8,022 |
|
|
|
2,613 |
|
|
Federal Home Loan Bank stock dividends |
|
1,832 |
|
|
1,262 |
|
|
|
3,793 |
|
|
|
2,132 |
|
|
Total interest income |
|
113,286 |
|
|
96,143 |
|
|
|
221,913 |
|
|
|
189,023 |
|
| Interest expense: |
|
|
|
|
|
|
|
|
Deposits |
|
49,826 |
|
|
28,727 |
|
|
|
98,244 |
|
|
|
45,815 |
|
|
Borrowings |
|
19,380 |
|
|
16,265 |
|
|
|
37,389 |
|
|
|
31,193 |
|
|
Total interest expense |
|
69,206 |
|
|
44,992 |
|
|
|
135,633 |
|
|
|
77,008 |
|
| |
|
|
|
|
|
|
|
|
Net interest income |
|
44,080 |
|
|
51,151 |
|
|
|
86,280 |
|
|
|
112,015 |
|
| |
|
|
|
|
|
|
|
| Provision for credit
losses |
|
2,194 |
|
|
1,078 |
|
|
|
7,472 |
|
|
|
1,253 |
|
| |
|
|
|
|
|
|
|
|
Net interest income after provision for credit losses |
|
41,886 |
|
|
50,073 |
|
|
|
78,808 |
|
|
|
110,762 |
|
| |
|
|
|
|
|
|
|
| Non-interest income: |
|
|
|
|
|
|
|
|
Demand deposit account fees |
|
1,590 |
|
|
1,291 |
|
|
|
3,003 |
|
|
|
2,467 |
|
|
Bank-owned life insurance |
|
1,804 |
|
|
1,675 |
|
|
|
3,584 |
|
|
|
3,656 |
|
|
Title insurance fees |
|
744 |
|
|
624 |
|
|
|
1,247 |
|
|
|
1,211 |
|
|
Loan fees and service charges |
|
1,378 |
|
|
1,325 |
|
|
|
2,339 |
|
|
|
2,397 |
|
|
Loss on securities transactions |
|
— |
|
|
(9,552 |
) |
|
|
(1,256 |
) |
|
|
(10,847 |
) |
|
Change in fair value of equity securities |
|
101 |
|
|
162 |
|
|
|
452 |
|
|
|
330 |
|
|
Gain on sale of loans |
|
181 |
|
|
(128 |
) |
|
|
366 |
|
|
|
663 |
|
|
Other non-interest income |
|
3,382 |
|
|
4,057 |
|
|
|
6,897 |
|
|
|
7,651 |
|
|
Total non-interest income |
|
9,180 |
|
|
(546 |
) |
|
|
16,632 |
|
|
|
7,528 |
|
| |
|
|
|
|
|
|
|
| Non-interest expense: |
|
|
|
|
|
|
|
|
Compensation and employee benefits |
|
27,659 |
|
|
32,460 |
|
|
|
55,172 |
|
|
|
63,618 |
|
|
Occupancy |
|
6,054 |
|
|
5,738 |
|
|
|
12,027 |
|
|
|
11,492 |
|
|
Federal deposit insurance premiums |
|
1,879 |
|
|
1,734 |
|
|
|
4,234 |
|
|
|
2,423 |
|
|
Advertising |
|
661 |
|
|
786 |
|
|
|
1,287 |
|
|
|
1,473 |
|
|
Professional fees |
|
4,509 |
|
|
2,376 |
|
|
|
9,143 |
|
|
|
4,251 |
|
|
Data processing and software expenses |
|
3,914 |
|
|
3,601 |
|
|
|
7,881 |
|
|
|
7,426 |
|
|
Merger-related expenses |
|
692 |
|
|
266 |
|
|
|
714 |
|
|
|
266 |
|
|
Other non-interest expense, net |
|
879 |
|
|
645 |
|
|
|
1,447 |
|
|
|
559 |
|
|
Total non-interest expense |
|
46,247 |
|
|
47,606 |
|
|
|
91,905 |
|
|
|
91,508 |
|
| |
|
|
|
|
|
|
|
|
Income before income tax expense |
|
4,819 |
|
|
1,921 |
|
|
|
3,535 |
|
|
|
26,782 |
|
| |
|
|
|
|
|
|
|
|
Income tax expense |
|
279 |
|
|
257 |
|
|
|
150 |
|
|
|
6,395 |
|
| |
|
|
|
|
|
|
|
|
Net income |
$ |
4,540 |
|
$ |
1,664 |
|
|
$ |
3,385 |
|
|
$ |
20,387 |
|
| |
|
|
|
|
|
|
|
| Earnings per share-basic |
$ |
0.04 |
|
$ |
0.02 |
|
|
$ |
0.03 |
|
|
$ |
0.20 |
|
| Earnings per
share-diluted |
$ |
0.04 |
|
$ |
0.02 |
|
|
$ |
0.03 |
|
|
$ |
0.20 |
|
| Weighted average shares
outstanding-basic |
|
101,651,511 |
|
|
102,409,035 |
|
|
|
101,699,126 |
|
|
|
103,514,169 |
|
| Weighted average shares
outstanding-diluted |
|
101,651,511 |
|
|
102,517,584 |
|
|
|
101,804,386 |
|
|
|
103,835,235 |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
COLUMBIA FINANCIAL, INC. AND
SUBSIDIARIESAverage Balances/Yields |
|
|
| |
For the Three Months Ended June 30, |
| |
|
2024 |
|
|
|
2023 |
|
| |
Average Balance |
|
Interest and Dividends |
|
Yield / Cost |
|
Average Balance |
|
Interest and Dividends |
|
Yield / Cost |
| |
(Dollars in thousands) |
| Interest-earnings assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
7,774,052 |
|
|
$ |
95,252 |
|
4.93 |
% |
|
$ |
7,736,029 |
|
|
$ |
84,188 |
|
4.36 |
% |
|
Securities |
|
1,633,801 |
|
|
|
11,743 |
|
2.89 |
% |
|
|
1,527,722 |
|
|
|
8,892 |
|
2.33 |
% |
|
Other interest-earning assets |
|
401,633 |
|
|
|
6,291 |
|
6.30 |
% |
|
|
202,076 |
|
|
|
3,063 |
|
6.08 |
% |
| Total interest-earning
assets |
|
9,809,486 |
|
|
|
113,286 |
|
4.64 |
% |
|
|
9,465,827 |
|
|
|
96,143 |
|
4.07 |
% |
| Non-interest-earning
assets |
|
871,525 |
|
|
|
|
|
|
|
835,995 |
|
|
|
|
|
| Total assets |
$ |
10,681,011 |
|
|
|
|
|
|
$ |
10,301,822 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
$ |
1,948,389 |
|
|
$ |
13,708 |
|
2.83 |
% |
|
$ |
2,190,005 |
|
|
$ |
8,486 |
|
1.55 |
% |
|
Money market accounts |
|
1,220,774 |
|
|
|
8,323 |
|
2.74 |
% |
|
|
890,556 |
|
|
|
5,313 |
|
2.39 |
% |
|
Savings and club deposits |
|
674,793 |
|
|
|
1,370 |
|
0.82 |
% |
|
|
813,904 |
|
|
|
479 |
|
0.24 |
% |
|
Certificates of deposit |
|
2,545,967 |
|
|
|
26,425 |
|
4.17 |
% |
|
|
2,184,915 |
|
|
|
14,449 |
|
2.65 |
% |
| Total interest-bearing
deposits |
|
6,389,923 |
|
|
|
49,826 |
|
3.14 |
% |
|
|
6,079,380 |
|
|
|
28,727 |
|
1.90 |
% |
|
FHLB advances |
|
1,576,514 |
|
|
|
19,219 |
|
4.90 |
% |
|
|
1,344,006 |
|
|
|
15,808 |
|
4.72 |
% |
|
Notes payable |
|
— |
|
|
|
— |
|
— |
% |
|
|
30,621 |
|
|
|
307 |
|
4.02 |
% |
|
Junior subordinated debentures |
|
7,023 |
|
|
|
161 |
|
9.22 |
% |
|
|
7,377 |
|
|
|
150 |
|
8.16 |
% |
| Total borrowings |
|
1,583,537 |
|
|
|
19,380 |
|
4.92 |
% |
|
|
1,382,004 |
|
|
|
16,265 |
|
4.72 |
% |
| Total interest-bearing
liabilities |
|
7,973,460 |
|
|
$ |
69,206 |
|
3.49 |
% |
|
|
7,461,384 |
|
|
$ |
44,992 |
|
2.42 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
1,416,047 |
|
|
|
|
|
|
|
1,539,808 |
|
|
|
|
|
|
Other non-interest-bearing liabilities |
|
260,107 |
|
|
|
|
|
|
|
214,300 |
|
|
|
|
|
| Total liabilities |
|
9,649,614 |
|
|
|
|
|
|
|
9,215,492 |
|
|
|
|
|
| Total stockholders'
equity |
|
1,031,397 |
|
|
|
|
|
|
|
1,086,330 |
|
|
|
|
|
| Total liabilities and
stockholders' equity |
$ |
10,681,011 |
|
|
|
|
|
|
$ |
10,301,822 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
|
$ |
44,080 |
|
|
|
|
|
$ |
51,151 |
|
|
| Interest rate spread |
|
|
|
|
1.15 |
% |
|
|
|
|
|
1.65 |
% |
| Net interest-earning
assets |
$ |
1,836,026 |
|
|
|
|
|
|
$ |
2,004,443 |
|
|
|
|
|
| Net interest margin |
|
|
|
|
1.81 |
% |
|
|
|
|
|
2.17 |
% |
| Ratio of interest-earning
assets to interest-bearing liabilities |
|
123.03 |
% |
|
|
|
|
|
|
126.86 |
% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA FINANCIAL, INC. AND
SUBSIDIARIESAverage Balances/Yields |
|
|
| |
For the Six Months Ended June 30, |
| |
|
2024 |
|
|
|
2023 |
|
| |
Average Balance |
|
Interest and Dividends |
|
Yield / Cost |
|
Average Balance |
|
Interest and Dividends |
|
Yield / Cost |
| |
(Dollars in thousands) |
| Interest-earnings assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
7,788,459 |
|
|
$ |
188,201 |
|
4.86 |
% |
|
$ |
7,705,680 |
|
|
$ |
164,478 |
|
4.30 |
% |
|
Securities |
|
1,588,767 |
|
|
|
21,897 |
|
2.77 |
% |
|
|
1,637,121 |
|
|
|
19,800 |
|
2.44 |
% |
|
Other interest-earning assets |
|
383,989 |
|
|
|
11,815 |
|
6.19 |
% |
|
|
181,934 |
|
|
|
4,745 |
|
5.26 |
% |
| Total interest-earning
assets |
|
9,761,215 |
|
|
|
221,913 |
|
4.57 |
% |
|
|
9,524,735 |
|
|
|
189,023 |
|
4.00 |
% |
| Non-interest-earning
assets |
|
861,632 |
|
|
|
|
|
|
|
831,020 |
|
|
|
|
|
| Total assets |
$ |
10,622,847 |
|
|
|
|
|
|
$ |
10,355,755 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
$ |
1,973,569 |
|
|
$ |
27,092 |
|
2.76 |
% |
|
$ |
2,341,814 |
|
|
$ |
14,503 |
|
1.25 |
% |
|
Money market accounts |
|
1,227,857 |
|
|
|
17,093 |
|
2.80 |
% |
|
|
815,859 |
|
|
|
7,570 |
|
1.87 |
% |
|
Savings and club deposits |
|
681,664 |
|
|
|
2,607 |
|
0.77 |
% |
|
|
850,711 |
|
|
|
693 |
|
0.16 |
% |
|
Certificates of deposit |
|
2,531,145 |
|
|
|
51,452 |
|
4.09 |
% |
|
|
2,099,296 |
|
|
|
23,049 |
|
2.21 |
% |
| Total interest-bearing
deposits |
|
6,414,235 |
|
|
|
98,244 |
|
3.08 |
% |
|
|
6,107,680 |
|
|
|
45,815 |
|
1.51 |
% |
|
FHLB advances |
|
1,511,830 |
|
|
|
37,067 |
|
4.93 |
% |
|
|
1,311,640 |
|
|
|
30,298 |
|
4.66 |
% |
|
Notes payable |
|
— |
|
|
|
— |
|
— |
% |
|
|
30,261 |
|
|
|
599 |
|
3.99 |
% |
|
Junior subordinated debentures |
|
7,020 |
|
|
|
322 |
|
9.22 |
% |
|
|
7,408 |
|
|
|
296 |
|
8.06 |
% |
| Total borrowings |
|
1,518,850 |
|
|
|
37,389 |
|
4.95 |
% |
|
|
1,349,309 |
|
|
|
31,193 |
|
4.66 |
% |
| Total interest-bearing
liabilities |
|
7,933,085 |
|
|
$ |
135,633 |
|
3.44 |
% |
|
|
7,456,989 |
|
|
$ |
77,008 |
|
2.08 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
1,404,161 |
|
|
|
|
|
|
|
1,609,994 |
|
|
|
|
|
|
Other non-interest-bearing liabilities |
|
248,514 |
|
|
|
|
|
|
|
217,933 |
|
|
|
|
|
| Total liabilities |
|
9,585,760 |
|
|
|
|
|
|
|
9,284,916 |
|
|
|
|
|
| Total stockholders'
equity |
|
1,037,087 |
|
|
|
|
|
|
|
1,070,839 |
|
|
|
|
|
| Total liabilities and
stockholders' equity |
$ |
10,622,847 |
|
|
|
|
|
|
$ |
10,355,755 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
|
$ |
86,280 |
|
|
|
|
|
$ |
112,015 |
|
|
| Interest rate spread |
|
|
|
|
1.13 |
% |
|
|
|
|
|
1.92 |
% |
| Net interest-earning
assets |
$ |
1,828,130 |
|
|
|
|
|
|
$ |
2,067,746 |
|
|
|
|
|
| Net interest margin |
|
|
|
|
1.78 |
% |
|
|
|
|
|
2.37 |
% |
| Ratio of interest-earning
assets to interest-bearing liabilities |
|
123.04 |
% |
|
|
|
|
|
|
127.73 |
% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA FINANCIAL, INC. AND
SUBSIDIARIESComponents of Net Interest Rate Spread
and Margin |
|
|
| |
Average Yields/Costs by Quarter |
| |
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
| Yield on
interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
Loans |
4.93 |
% |
|
4.79 |
% |
|
4.66 |
% |
|
4.47 |
% |
|
4.36 |
% |
|
Securities |
2.89 |
|
|
2.65 |
|
|
2.58 |
|
|
2.37 |
|
|
2.33 |
|
|
Other interest-earning assets |
6.30 |
|
|
6.06 |
|
|
5.64 |
|
|
5.91 |
|
|
6.08 |
|
|
Total interest-earning assets |
4.64 |
% |
|
4.50 |
% |
|
4.39 |
% |
|
4.17 |
% |
|
4.07 |
% |
| |
|
|
|
|
|
|
|
|
|
| Cost of
interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
Total interest-bearing deposits |
3.14 |
% |
|
3.02 |
% |
|
2.76 |
% |
|
2.31 |
% |
|
1.90 |
% |
|
Total borrowings |
4.92 |
|
|
4.98 |
|
|
4.96 |
|
|
4.70 |
|
|
4.72 |
|
|
Total interest-bearing liabilities |
3.49 |
% |
|
3.38 |
% |
|
3.18 |
% |
|
2.70 |
% |
|
2.42 |
% |
| |
|
|
|
|
|
|
|
|
|
|
Interest rate spread |
1.15 |
% |
|
1.12 |
% |
|
1.21 |
% |
|
1.47 |
% |
|
1.65 |
% |
|
Net interest margin |
1.81 |
% |
|
1.75 |
% |
|
1.85 |
% |
|
2.06 |
% |
|
2.17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of interest-earning assets to interest-bearing
liabilities |
123.03 |
% |
|
123.06 |
% |
|
125.32 |
% |
|
127.46 |
% |
|
126.86 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA FINANCIAL, INC. AND
SUBSIDIARIESSelected Financial
Highlights |
|
|
| |
|
| |
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
| SELECTED FINANCIAL
RATIOS(1): |
|
|
|
|
|
|
|
|
|
|
Return on average assets |
0.17 |
% |
|
(0.04 |
)% |
|
0.25 |
% |
|
0.36 |
% |
|
0.06 |
% |
|
Core return on average assets |
0.20 |
% |
|
0.02 |
% |
|
0.38 |
% |
|
0.36 |
% |
|
0.46 |
% |
| Return on average equity |
1.77 |
% |
|
(0.45 |
)% |
|
2.31 |
% |
|
3.23 |
% |
|
0.61 |
% |
|
Core return on average equity |
2.06 |
% |
|
0.18 |
% |
|
3.55 |
% |
|
3.24 |
% |
|
4.29 |
% |
|
Core return on average tangible equity |
2.34 |
% |
|
0.20 |
% |
|
3.99 |
% |
|
3.64 |
% |
|
4.89 |
% |
| Interest rate spread |
1.15 |
% |
|
1.12 |
% |
|
1.21 |
% |
|
1.47 |
% |
|
1.65 |
% |
| Net interest margin |
1.81 |
% |
|
1.75 |
% |
|
1.85 |
% |
|
2.06 |
% |
|
2.17 |
% |
| Non-interest income to average
assets |
0.35 |
% |
|
0.28 |
% |
|
0.42 |
% |
|
0.33 |
% |
|
(0.02 |
)% |
| Non-interest expense to
average assets |
1.74 |
% |
|
1.74 |
% |
|
1.80 |
% |
|
1.67 |
% |
|
1.85 |
% |
| Efficiency ratio |
86.83 |
% |
|
91.96 |
% |
|
84.82 |
% |
|
75.12 |
% |
|
94.07 |
% |
|
Core efficiency ratio |
85.34 |
% |
|
88.39 |
% |
|
76.93 |
% |
|
75.09 |
% |
|
81.01 |
% |
| Average interest-earning
assets to average interest-bearing liabilities |
123.03 |
% |
|
123.06 |
% |
|
125.32 |
% |
|
127.46 |
% |
|
126.86 |
% |
| Net charge-offs to average
outstanding loans |
0.03 |
% |
|
0.26 |
% |
|
0.01 |
% |
|
0.09 |
% |
|
0.03 |
% |
| |
|
|
|
|
|
|
|
|
|
| (1)Ratios are
annualized when appropriate. |
| ASSET QUALITY
DATA: |
|
| |
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
| |
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
|
|
|
Non-accrual loans |
$ |
25,281 |
|
|
$ |
22,935 |
|
|
$ |
12,618 |
|
|
$ |
15,150 |
|
|
$ |
11,091 |
|
| 90+ and still accruing |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Non-performing loans |
|
25,281 |
|
|
|
22,935 |
|
|
|
12,618 |
|
|
|
15,150 |
|
|
|
11,091 |
|
| Real estate owned |
|
1,974 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Total non-performing assets |
$ |
27,255 |
|
|
$ |
22,935 |
|
|
$ |
12,618 |
|
|
$ |
15,150 |
|
|
$ |
11,091 |
|
| |
|
|
|
|
|
|
|
|
|
| Non-performing loans to total
gross loans |
|
0.33 |
% |
|
|
0.30 |
% |
|
|
0.16 |
% |
|
|
0.19 |
% |
|
|
0.14 |
% |
| Non-performing assets to total
assets |
|
0.25 |
% |
|
|
0.22 |
% |
|
|
0.12 |
% |
|
|
0.15 |
% |
|
|
0.11 |
% |
| Allowance for credit losses on
loans ("ACL") |
$ |
57,062 |
|
|
$ |
55,401 |
|
|
$ |
55,096 |
|
|
$ |
54,113 |
|
|
$ |
53,456 |
|
| ACL to total non-performing
loans |
|
225.71 |
% |
|
|
241.56 |
% |
|
|
436.65 |
% |
|
|
357.18 |
% |
|
|
481.98 |
% |
| ACL to gross loans |
|
0.73 |
% |
|
|
0.71 |
% |
|
|
0.70 |
% |
|
|
0.69 |
% |
|
|
0.69 |
% |
| LOAN
DATA: |
|
| |
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
| |
(In thousands) |
| Real estate loans: |
|
|
|
|
|
|
One-to-four family |
$ |
2,764,177 |
|
|
$ |
2,778,932 |
|
|
$ |
2,792,833 |
|
|
$ |
2,791,939 |
|
|
$ |
2,789,269 |
|
|
Multifamily |
|
1,409,316 |
|
|
|
1,429,369 |
|
|
|
1,409,187 |
|
|
|
1,417,233 |
|
|
|
1,376,999 |
|
|
Commercial real estate |
|
2,316,252 |
|
|
|
2,318,178 |
|
|
|
2,377,077 |
|
|
|
2,374,488 |
|
|
|
2,386,896 |
|
|
Construction |
|
462,880 |
|
|
|
437,566 |
|
|
|
443,094 |
|
|
|
390,940 |
|
|
|
378,988 |
|
| Commercial business loans |
|
554,768 |
|
|
|
538,260 |
|
|
|
533,041 |
|
|
|
546,750 |
|
|
|
505,524 |
|
| Consumer loans: |
|
|
|
|
|
|
|
|
|
|
Home equity loans and advances |
|
260,427 |
|
|
|
260,786 |
|
|
|
266,632 |
|
|
|
267,016 |
|
|
|
269,310 |
|
|
Other consumer loans |
|
2,689 |
|
|
|
2,601 |
|
|
|
2,801 |
|
|
|
2,586 |
|
|
|
2,552 |
|
|
Total gross loans |
|
7,770,509 |
|
|
|
7,765,692 |
|
|
|
7,824,665 |
|
|
|
7,790,952 |
|
|
|
7,709,538 |
|
| Purchased credit deteriorated
loans |
|
12,150 |
|
|
|
14,945 |
|
|
|
15,089 |
|
|
|
15,228 |
|
|
|
16,107 |
|
| Net deferred loan costs, fees
and purchased premiums and discounts |
|
36,352 |
|
|
|
34,992 |
|
|
|
34,783 |
|
|
|
34,360 |
|
|
|
34,791 |
|
| Allowance for credit
losses |
|
(57,062 |
) |
|
|
(55,401 |
) |
|
|
(55,096 |
) |
|
|
(54,113 |
) |
|
|
(53,456 |
) |
|
Loans receivable, net |
$ |
7,761,949 |
|
|
$ |
7,760,228 |
|
|
$ |
7,819,441 |
|
|
$ |
7,786,427 |
|
|
$ |
7,706,980 |
|
| CAPITAL
RATIOS: |
|
|
|
| |
June 30, |
|
December 31, |
| |
2024(1) |
|
2023 |
|
| Company: |
|
|
|
|
Total capital (to risk-weighted assets) |
14.22 |
% |
|
14.08 |
% |
| Tier 1 capital (to
risk-weighted assets) |
13.45 |
% |
|
13.32 |
% |
| Common equity tier 1 capital
(to risk-weighted assets) |
13.36 |
% |
|
13.23 |
% |
| Tier 1 capital (to adjusted
total assets) |
9.94 |
% |
|
10.04 |
% |
| |
|
|
|
| Columbia
Bank: |
|
|
|
| Total capital (to
risk-weighted assets) |
14.32 |
% |
|
14.02 |
% |
| Tier 1 capital (to
risk-weighted assets) |
13.50 |
% |
|
13.22 |
% |
| Common equity tier 1 capital
(to risk-weighted assets) |
13.50 |
% |
|
13.22 |
% |
| Tier 1 capital (to adjusted
total assets) |
9.42 |
% |
|
9.48 |
% |
| |
|
|
|
| Freehold
Bank: |
|
|
|
| Total capital (to
risk-weighted assets) |
23.84 |
% |
|
22.49 |
% |
| Tier 1 capital (to
risk-weighted assets) |
23.14 |
% |
|
21.81 |
% |
| Common equity tier 1 capital
(to risk-weighted assets) |
23.14 |
% |
|
21.81 |
% |
| Tier 1 capital (to adjusted
total assets) |
16.02 |
% |
|
15.27 |
% |
| |
|
|
|
| (1)Estimated ratios at June
30, 2024 |
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial
Measures |
| |
|
|
|
|
|
| Book and
Tangible Book Value per Share |
| |
|
|
June 30, |
|
December 31, |
|
|
|
|
|
2024 |
|
|
|
2023 |
|
| |
|
|
(Dollars in thousands) |
| |
|
|
|
| Total stockholders'
equity |
|
|
$ |
1,046,734 |
|
|
$ |
1,040,335 |
|
| Less: goodwill |
|
|
|
(110,715 |
) |
|
|
(110,715 |
) |
| Less: core deposit
intangible |
|
|
|
(10,039 |
) |
|
|
(11,155 |
) |
| Total tangible stockholders'
equity |
|
|
$ |
925,980 |
|
|
$ |
918,465 |
|
| |
|
|
|
|
|
| Shares outstanding |
|
|
|
104,755,270 |
|
|
|
104,918,905 |
|
| |
|
|
|
|
|
| Book value per share |
|
|
$ |
9.99 |
|
|
$ |
9.92 |
|
| Tangible book value per
share |
|
|
$ |
8.84 |
|
|
$ |
8.75 |
|
| Reconciliation of Core
Net Income |
|
|
|
|
|
|
|
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
| |
(In thousands) |
| |
|
|
|
|
|
|
|
| Net income |
$ |
4,540 |
|
$ |
1,664 |
|
$ |
3,385 |
|
$ |
20,387 |
| Add: loss on securities
transactions, net of tax |
|
— |
|
|
8,274 |
|
|
1,130 |
|
|
9,249 |
| Add: FDIC special assessment,
net of tax |
|
97 |
|
|
— |
|
|
490 |
|
|
— |
| Add: severance expense from
reduction in workforce, net of tax |
|
— |
|
|
1,390 |
|
|
67 |
|
|
1,390 |
| Add: merger-related expenses,
net of tax |
|
652 |
|
|
230 |
|
|
672 |
|
|
230 |
| Add: litigation expenses, net
of tax |
|
— |
|
|
181 |
|
|
— |
|
|
262 |
| Core net income |
$ |
5,289 |
|
$ |
11,739 |
|
$ |
5,744 |
|
$ |
31,518 |
| Return on Average
Assets |
|
|
|
|
|
|
|
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| |
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
| Net income |
$ |
4,540 |
|
|
$ |
1,664 |
|
|
$ |
3,385 |
|
|
$ |
20,387 |
|
| |
|
|
|
|
|
|
|
| Average assets |
$ |
10,681,011 |
|
|
$ |
10,301,822 |
|
|
$ |
10,622,847 |
|
|
$ |
10,355,755 |
|
| |
|
|
|
|
|
|
|
| Return on average assets |
|
0.17 |
% |
|
|
0.06 |
% |
|
|
0.06 |
% |
|
|
0.40 |
% |
| |
|
|
|
|
|
|
|
| Core net income |
$ |
5,289 |
|
|
$ |
11,739 |
|
|
$ |
5,744 |
|
|
$ |
31,518 |
|
| |
|
|
|
|
|
|
|
| Core return on average
assets |
|
0.20 |
% |
|
|
0.46 |
% |
|
|
0.11 |
% |
|
|
0.61 |
% |
|
Reconciliation of GAAP to Non-GAAP Financial Measures
(continued) |
| |
|
|
|
|
|
|
|
| Return on Average
Equity |
|
|
|
|
|
|
|
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| |
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
| Total average stockholders'
equity |
$ |
1,031,397 |
|
|
$ |
1,086,330 |
|
|
$ |
1,037,087 |
|
|
$ |
1,070,839 |
|
| Add: loss on securities
transactions, net of tax |
|
— |
|
|
|
8,274 |
|
|
|
1,130 |
|
|
|
9,249 |
|
| Add: FDIC special assessment,
net of tax |
|
97 |
|
|
|
— |
|
|
|
490 |
|
|
|
— |
|
| Add: severance expense from
reduction in workforce, net of tax |
|
— |
|
|
|
1,390 |
|
|
|
67 |
|
|
|
1,390 |
|
| Add: merger-related expenses,
net of tax |
|
652 |
|
|
|
230 |
|
|
|
672 |
|
|
|
230 |
|
| Add: litigation expenses, net
of tax |
|
— |
|
|
|
181 |
|
|
|
— |
|
|
|
262 |
|
| Core average stockholders'
equity |
$ |
1,032,146 |
|
|
$ |
1,096,405 |
|
|
$ |
1,039,446 |
|
|
$ |
1,081,970 |
|
| |
|
|
|
|
|
|
|
| Return on average equity |
|
1.77 |
% |
|
|
0.61 |
% |
|
|
0.66 |
% |
|
|
3.84 |
% |
| |
|
|
|
|
|
|
|
| Core return on core average
equity |
|
2.06 |
% |
|
|
4.29 |
% |
|
|
1.11 |
% |
|
|
5.87 |
% |
| Return on
Average Tangible Equity |
|
|
|
|
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| |
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
| Total average stockholders'
equity |
$ |
1,031,397 |
|
|
$ |
1,086,330 |
|
|
$ |
1,037,087 |
|
|
$ |
1,070,839 |
|
| Less: average goodwill |
|
(110,715 |
) |
|
|
(110,715 |
) |
|
|
(110,715 |
) |
|
|
(110,715 |
) |
| Less: average core deposit
intangible |
|
(10,381 |
) |
|
|
(12,694 |
) |
|
|
(10,668 |
) |
|
|
(12,989 |
) |
| Total average tangible
stockholders' equity |
$ |
910,301 |
|
|
$ |
962,921 |
|
|
$ |
915,704 |
|
|
$ |
947,135 |
|
| |
|
|
|
|
|
|
|
| Core return on average
tangible equity |
|
2.34 |
% |
|
|
4.89 |
% |
|
|
1.26 |
% |
|
|
6.71 |
% |
|
Reconciliation of GAAP to Non-GAAP Financial Measures
(continued) |
| |
|
|
|
|
|
|
|
| Efficiency
Ratios |
|
|
|
|
|
|
|
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| |
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
| Net interest income |
$ |
44,080 |
|
|
$ |
51,151 |
|
|
$ |
86,280 |
|
|
$ |
112,015 |
|
| Non-interest income |
|
9,180 |
|
|
|
(546 |
) |
|
|
16,632 |
|
|
|
7,528 |
|
| Total income |
$ |
53,260 |
|
|
$ |
50,605 |
|
|
$ |
102,912 |
|
|
$ |
119,543 |
|
| |
|
|
|
|
|
|
|
| Non-interest expense |
$ |
46,247 |
|
|
$ |
47,606 |
|
|
$ |
91,905 |
|
|
$ |
91,508 |
|
| |
|
|
|
|
|
|
|
| Efficiency ratio |
|
86.83 |
% |
|
|
94.07 |
% |
|
|
89.30 |
% |
|
|
76.55 |
% |
| |
|
|
|
|
|
|
|
| Non-interest income |
$ |
9,180 |
|
|
$ |
(546 |
) |
|
$ |
16,632 |
|
|
$ |
7,528 |
|
| Add: loss on securities
transactions |
|
— |
|
|
|
9,552 |
|
|
|
1,256 |
|
|
|
10,847 |
|
| Core non-interest income |
$ |
9,180 |
|
|
$ |
9,006 |
|
|
$ |
17,888 |
|
|
$ |
18,375 |
|
| |
|
|
|
|
|
|
|
| Non-interest expense |
$ |
46,247 |
|
|
$ |
47,606 |
|
|
$ |
91,905 |
|
|
$ |
91,508 |
|
| Less: FDIC special
assessment |
|
(103 |
) |
|
|
— |
|
|
|
(565 |
) |
|
|
— |
|
| Less: severance expense from
reduction in workforce |
|
— |
|
|
|
1,605 |
|
|
|
(74 |
) |
|
|
1,605 |
|
| Less: merger-related
expenses |
|
(692 |
) |
|
|
(266 |
) |
|
|
(714 |
) |
|
|
(266 |
) |
| Less: litigation expenses |
|
— |
|
|
|
(209 |
) |
|
|
— |
|
|
|
(317 |
) |
| Core non-interest expense |
$ |
45,452 |
|
|
$ |
48,736 |
|
|
$ |
90,552 |
|
|
$ |
92,530 |
|
| |
|
|
|
|
|
|
|
| Core efficiency ratio |
|
85.34 |
% |
|
|
81.01 |
% |
|
|
86.93 |
% |
|
|
70.96 |
% |
| |
Columbia Financial, Inc.Investor
Relations Department(833) 550-0717
Grafico Azioni Columbia Financial (NASDAQ:CLBK)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni Columbia Financial (NASDAQ:CLBK)
Storico
Da Nov 2023 a Nov 2024
