Advertisement
New Zealand markets closed
  • NZX 50

    11,756.00
    -27.39 (-0.23%)
     
  • NZD/USD

    0.6146
    +0.0023 (+0.37%)
     
  • ALL ORDS

    8,058.60
    +59.40 (+0.74%)
     
  • OIL

    78.24
    +0.52 (+0.67%)
     
  • GOLD

    2,345.90
    +11.40 (+0.49%)
     

Columbia Financial, Inc. Announces Financial Results for the Second Quarter Ended June 30, 2023

FAIR LAWN, N.J., July 26, 2023 (GLOBE NEWSWIRE) -- Columbia Financial, Inc. (the “Company”) (NASDAQ: CLBK), the mid-tier holding company for Columbia Bank ("Columbia") and Freehold Bank ("Freehold"), reported net income of $1.7 million, or $0.02 per basic and diluted share, for the quarter ended June 30, 2023, as compared to net income of $23.0 million, or $0.22 per basic and diluted share, for the quarter ended June 30, 2022. The 2023 quarter was significantly impacted by the previously disclosed $9.6 million loss on the sale of available for sale securities and $1.6 million in severance expense recorded in June 2023, related to a reduction in workforce. Earnings for the quarter ended June 30, 2023 reflected lower net interest income, mainly due to an increase in interest expense, lower non-interest income, and higher non-interest expense, partially offset by a lower provision for credit losses and lower income tax expense. For the quarter ended June 30, 2023, the Company reported core net income of $11.7 million, a decrease of $12.1 million, or 50.7%, compared to core net income of $23.8 million for the quarter ended June 30, 2022.

For the six months ended June 30, 2023, the Company reported net income of $20.4 million, or $0.20 per basic and diluted share, as compared to net income of $43.4 million, or $0.41 per basic and diluted share, for the six months ended June 30, 2022. Earnings for the six months ended June 30, 2023 reflected lower net interest income, mainly due to an increase in interest expense, lower non-interest income, which was primarily due to a $10.8 million loss on the sale of available for sale securities included in the six months ended June 30, 2023, and higher non-interest expense, partially offset by a lower provision for credit losses and a lower income tax expense. For the six months ended June 30, 2023, the Company reported core net income of $31.5 million, a decrease of $14.5 million, or 31.4%, compared to core net income of $46.0 million for the six months ended June 30, 2022.

Mr. Thomas J. Kemly, President and Chief Executive Officer commented: “The Bank maintains a solid balance sheet, with strong liquidity, asset quality and capital levels. Net income has decreased as there is continued margin compression in the banking industry due to rising funding costs, as the Bank increased deposit rates in order to stabilize funding to support lending operations. During the second quarter, we sold $234.4 million of available for sale securities to reposition our balance sheet and executed various cost cutting strategies, including a reduction in workforce. We also announced our sixth share repurchase program in May 2023, as we remain committed to enhancing shareholder value.”

Results of Operations for the Three Months Ended June 30, 2023 and June 30, 2022

Net income of $1.7 million was recorded for the quarter ended June 30, 2023, a decrease of $21.3 million, or 92.8%, compared to net income of $23.0 million for the quarter ended June 30, 2022. The decrease in net income was primarily attributable to a $15.4 million decrease in net interest income, an $8.2 million decrease in non-interest income, and a $5.9 million increase in non-interest expense, partially offset by a $461,000 decrease in provision for credit losses, and a $7.7 million decrease in income tax expense.

ADVERTISEMENT

Net interest income was $51.2 million for the quarter ended June 30, 2023, a decrease of $15.4 million, or 23.1%, from $66.5 million for the quarter ended June 30, 2022. The decrease in net interest income was primarily attributable to a $38.4 million increase in interest expense on deposits and borrowings, partially offset by a $23.1 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 multiple federal funds rate increases that occurred over the previous year. The increase in interest expense on deposits was driven by these same rate increases 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 the significant increase in interest rates for new borrowings since interest rates began rising in March 2022, along with an increase in the average balance of borrowings. Prepayment penalties, which are included in interest income on loans, totaled $116,000 for the quarter ended June 30, 2023, compared to $1.5 million for the quarter ended June 30, 2022.

The average yield on loans for the quarter ended June 30, 2023 increased 68 basis points to 4.36%, as compared to 3.68% for the quarter ended June 30, 2022, as interest income was influenced by rising interest rates and loan growth. The average yield on securities for the quarter ended June 30, 2023 increased 19 basis points to 2.33%, as compared to 2.14% for the quarter ended June 30, 2022, as a number of adjustable rate securities tied to various indexes repriced higher during the quarter. The average yield on other interest-earning assets for the quarter ended June 30, 2023 increased 415 basis points to 6.08%, as compared to 1.93% for the quarter ended June 30, 2022, 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 $45.0 million for the quarter ended June 30, 2023, an increase of $38.4 million, or 584.7%, from $6.6 million for the quarter ended June 30, 2022. The increase in interest expense was primarily attributable to a 305 basis point increase in the average cost of borrowings, and an increase in the average balance of borrowings, coupled with a 159 basis point increase in the average cost of interest-bearing deposits. Interest expense on borrowings increased $14.4 million, or 756.1%, and interest expense on deposits increased $24.1 million, or 515.0%, due to the rise in interest rates as noted above.

The Company's net interest margin for the quarter ended June 30, 2023 decreased 84 basis points to 2.17%, when compared to 3.01% for the quarter ended June 30, 2022. The weighted average yield on interest-earning assets increased 76 basis points to 4.07% for the quarter ended June 30, 2023, as compared to 3.31% for the quarter ended June 30, 2022. The average cost of interest-bearing liabilities increased 202 basis points to 2.42% for the quarter ended June 30, 2023, as compared to 0.40% for the quarter ended June 30, 2022. The increase in yields for the quarter ended June 30, 2023 was due to the impact of multiple federal funds rate increases between periods. The net interest margin decreased for the quarter ended June 30, 2023, 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 quarter ended June 30, 2023 was $1.1 million, a decrease of $461,000, from $1.5 million for the quarter ended June 30, 2022. The decrease in provision for credit losses during the quarter was primarily attributable to a decrease in loan loss rates, partially offset by an increase in the outstanding balance of loans.

Non-interest income was $(546,000) for the quarter ended June 30, 2023, a decrease of $8.2 million, or 107.1%, from $7.7 million for the quarter ended June 30, 2022. The decrease was primarily attributable to an increase in the loss on securities transactions of $9.8 million, partially offset by an increase in other non-interest income of $1.9 million, which is primarily related to swap income.

Non-interest expense was $47.6 million for the quarter ended June 30, 2023, an increase of $5.9 million, or 14.1%, from $41.7 million for the quarter ended June 30, 2022. The increase was primarily attributable to an increase in compensation and employee benefits expense of $3.6 million, an increase in federal deposit insurance premiums of $1.1 million, due to an increase in the assessment rate imposed by the FDIC effective January 1, 2023, and an increase in other non-interest expense of $922,000, partially offset by a decrease in merger-related expenses of $1.1 million. The increase in compensation and employee benefits expense was due to normal annual increases in employee related compensation, as well as $1.6 million in severance expenses recorded in June 2023 as a result of a workforce reduction. The increase in other non-interest expense was primarily related to a decrease in the pension plan related expense benefit.

Income tax expense was $257,000 for the quarter ended June 30, 2023, a decrease of $7.7 million, as compared to $8.0 million for the quarter ended June 30, 2022, mainly due to a decrease in pre-tax income. The Company's effective tax rate was 13.4% and 25.7% for the quarters ended June 30, 2023 and 2022, respectively. The annual effective tax rate for the 2023 period was primarily impacted by lower net interest income and the loss on the sale of securities.

Results of Operations for the Six Months Ended June 30, 2023 and June 30, 2022

Net income of $20.4 million was recorded for the six months ended June 30, 2023, a decrease of $23.0 million, or 53.0%, compared to net income of $43.4 million for the six months ended June 30, 2022. The decrease in net income was primarily attributable to a $17.2 million decrease in net interest income, a $7.2 million decrease in non-interest income, and a $9.0 million increase in non-interest expense, partially offset by a $1.7 million decrease in provision for credit losses, and an $8.7 million decrease in income tax expense.

Net interest income was $112.0 million for the six months ended June 30, 2023, a decrease of $17.2 million, or 13.3%, from $129.2 million for the six months ended June 30, 2022. The decrease in net interest income was primarily attributable to a $64.4 million increase in interest expense on deposits and borrowings, partially offset by a $47.2 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 the rise in interest rates in 2022 and 2023. The increase in interest expense on deposits and borrowings was driven by an increase in the average balance of deposits and borrowings coupled with an increase in the cost of deposits and borrowings. The increase in interest expense on borrowings was also impacted by the significant increase in interest rates for new borrowings due to multiple federal funds rate increases that occurred over the previous year, along with an increase in the balance of borrowings. Prepayment penalties, which are included in interest income on loans, totaled $315,000 for the six months ended June 30, 2023, compared to $2.8 million for the six months ended June 30, 2022.

The average yield on loans for the six months ended June 30, 2023 increased 65 basis points to 4.30%, as compared to 3.65% for the six months ended June 30, 2022, as interest income was influenced by rising interest rates and loan growth. The average yield on securities for the six months ended June 30, 2023 increased 27 basis points to 2.44%, as compared to 2.17% for the six months ended June 30, 2022, as a number of adjustable rate securities tied to various indexes repriced higher during the year. The average yield on other interest-earning assets for the six months ended June 30, 2023 increased 293 basis points to 5.26%, as compared to 2.33% for the six months ended June 30, 2022, due to the rise in average balances and interest rates, as noted above.

Total interest expense was $77.0 million for the six months ended June 30, 2023, an increase of $64.4 million, or 512.1%, from $12.6 million for the six months ended June 30, 2022. The increase in interest expense was primarily attributable to a 316 basis point increase in the average cost of borrowings, and an increase in the average balance of borrowings, coupled with a 120 basis point increase in the average cost of interest-bearing deposits and an increase in the average balance of deposits. Interest expense on borrowings increased $28.0 million, or 868.1%, and interest expense on deposits increased $36.5 million, or 389.6%, due to the rise in interest rates as noted above.

The Company's net interest margin for the six months ended June 30, 2023 decreased 63 basis points to 2.37%, when compared to 3.00% for the six months ended June 30, 2022. The weighted average yield on interest-earning assets increased 71 basis points to 4.00% for the six months ended June 30, 2023, as compared to 3.29% for the six months ended June 30, 2022. The average cost of interest-bearing liabilities increased 169 basis points to 2.08% for the six months ended June 30, 2023, as compared to 0.39% for the six months ended June 30, 2022. The increase in yields for the six months ended June 30, 2023 was due to the impact of multiple federal funds rate increases between periods. The net interest margin decreased for the six months ended June 30, 2023, as 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, 2023 was $1.3 million, a decrease of $1.7 million, from $3.0 million for the six months ended June 30, 2022. The decrease in provision for credit losses during the six months was primarily attributable to a decrease in loan loss rates, partially offset by an increase in the outstanding balance of loans.

Non-interest income was $7.5 million for the six months ended June 30, 2023, a decrease of $7.2 million, or 48.8%, from $14.7 million for the quarter ended June 30, 2022. The decrease was primarily attributable to an increase in the loss on securities transactions of $11.1 million, partially offset by an increase in other non-interest income of $3.2 million, which is primarily related to swap income.

Non-interest expense was $91.5 million for the six months ended June 30, 2023, an increase of $9.0 million, or 11.0%, from $82.5 million for the six months ended June 30, 2022. The increase was primarily attributable to an increase in compensation and employee benefits expense of $8.7 million, an increase in federal deposit insurance premiums of $1.1 million, due to an increase in the assessment rate imposed by the FDIC effective January 1, 2023, and an increase in data processing and software expenses of $1.1 million, partially offset by a decrease in merger-related expenses of $1.2 million, and a decrease in other non-interest expense of $2.0 million. The increase in compensation and employee benefits expense for the 2023 period was due to normal annual increases in employee related compensation, increased staff levels due to the May 2022 merger with RSI Bank, and severance expense recorded in June 2023 as a result of a workforce reduction. The decrease in other non-interest expense was primarily related to non-recurring litigation settlements included in the 2022 period, and the decrease in expenses related to swap transactions, partially offset by a decrease in the pension plan related expense benefit.

Income tax expense was $6.4 million for the six months ended June 30, 2023, a decrease of $8.7 million, as compared to $15.1 million for the six months ended June 30, 2022, mainly due to a decrease in pre-tax income, and to a lesser extent, a decrease in the Company's effective tax rate. The Company's effective tax rate was 23.9% and 25.8% for the six months ended June 30, 2023 and 2022, respectively.

Balance Sheet Summary

Total assets decreased $322.9 million, or 3.1%, to $10.1 billion at June 30, 2023 from $10.4 billion at December 31, 2022. The decrease in total assets was primarily attributable to a decrease in cash and cash equivalents of $85.8 million, and a decrease in debt securities available for sale of $331.2 million, partially offset by an increase in loans receivable, net, of $82.2 million and an increase in other assets of $11.8 million.

Cash and cash equivalents decreased $85.8 million, or 47.8%, to $93.5 million at June 30, 2023 from $179.2 million at December 31, 2022. The decrease was primarily attributable to a decrease in total deposits of $287.0 million and $69.3 million in repurchases of common stock under our stock repurchase program, partially offset by $277.0 million in proceeds from the sale of debt securities available for sale.

Debt securities available for sale decreased $331.2 million, or 24.9%, to $997.5 million at June 30, 2023 from $1.3 billion at December 31, 2022. The decrease was attributable to sales of securities of $277.0 million which resulted in a realized loss of $10.8 million, and repayments on securities of $53.4 million, which was partially offset by a decrease in the gross unrealized loss of $11.1 million. The Bank sold U.S. government obligations at a weighted average rate of 2.36%, and mortgage-backed securities at a weighted average rate of 3.26% during the 2023 period.

Loans receivable, net, increased $82.2 million, or 1.1%, to $7.7 billion at June 30, 2023 from $7.6 billion at December 31, 2022. Multifamily real estate loans, construction loans and commercial business loans increased $137.8 million, $42.4 million, and $8.1 million, respectively, partially offset by a decrease in one-to-four family real estate loans, commercial real estate loans, and home equity loans and advances of $70.9 million, $26.5 million, and $5.0 million, respectively. The allowance for credit losses on loans increased $653,000 to $53.5 million at June 30, 2023 from $52.8 million at December 31, 2022. During the six months ended June 30, 2023, the increase in the allowance for credit losses was primarily due to an increase in the outstanding balance of loans, partially offset by a decrease in loan loss rates.

Other assets increased $11.8 million, or 4.2%, to $296.6 million at June 30, 2023 from $284.8 million at December 31, 2022, primarily due to a $10.5 million increase in the Company's pension plan balance, as the return on plan assets outpaced the growth in the plan’s obligations.

Total liabilities decreased $292.1 million, or 3.1%, to $9.1 billion at June 30, 2023 from $9.4 billion at December 31, 2022. The decrease was primarily attributable to a decrease in total deposits of $287.0 million, or 3.6%, and a decrease in borrowings of $6.8 million, or 0.6%. The decrease in total deposits primarily consisted of decreases in non-interest-bearing demand deposits, interest-bearing demand deposits, and savings and club deposits of $296.3 million, $528.1 million, and $130.7 million, respectively, partially offset by increases in money market accounts of $366.8 million and certificates of deposit of $301.3 million. The Bank has priced select money market and certificates of deposit accounts very competitively to the market, but there continues to be fierce competition for funds from other banks and non-bank investment products. The $6.8 million decrease in borrowings was primarily driven by a net decrease in short-term borrowings of $256.6 million, partially offset by an increase in long-term borrowings of $249.8 million.

Total stockholders’ equity decreased $30.8 million, or 2.9%, to $1.0 billion at June 30, 2023 from $1.1 billion at December 31, 2022. The decrease in equity was primarily attributable to the repurchase of 1,207,100 shares of common stock at a cost of approximately $69.3 million, or $19.33 per share, under our stock repurchase program, partially offset by net income of $20.4 million, and a decrease of $8.5 million in unrealized losses on debt securities available for sale, net of taxes, included in other comprehensive income.

Asset Quality

The Company's non-performing loans at June 30, 2023 totaled $11.1 million, or 0.14% of total gross loans, as compared to $6.7 million, or 0.09% of total gross loans, at December 31, 2022. The $4.4 million increase in non-performing loans was primarily attributable to an increase in non-performing commercial business loans of $2.3 million, an increase in non-performing one-to-four family real estate loans of $1.3 million, and an increase in non-performing commercial real estate loans of $852,000. The increase in non-performing commercial business loans was due to an increase in the number of loans from three non-performing loans at December 31, 2022 to eight loans at June 30, 2023. The increase in non-performing one-to-four family real estate loans was due to an increase in the number of loans from 12 non-performing loans at December 31, 2022 to 16 loans at June 30, 2023. The increase in non-performing commercial real estate loans was due to the addition of one loan from December 31, 2022 to June 30, 2023. Non-performing assets as a percentage of total assets totaled 0.11% and 0.06% at June 30, 2023 and December 31, 2022, respectively.

For the quarter ended June 30, 2023, net charge-offs totaled $495,000, as compared to $105,000 in net recoveries recorded for the quarter ended June 30, 2022. For the six months ended June 30, 2023, net charge-offs totaled $600,000, as compared to $216,000 in net recoveries recorded for the six months ended June 30, 2022.

The Company's allowance for credit losses on loans was $53.5 million, or 0.69% of total gross loans, at June 30, 2023, compared to $52.8 million, or 0.69% of total gross loans, at December 31, 2022. The increase in the allowance for credit losses for loans was primarily due to an increase in the outstanding balance of loans, partially offset by a decrease in loan loss rates.

Additional Liquidity, Loan, and Deposit Information

The Company services a diverse retail and commercial deposit base through its 67 branches. With over 213,000 accounts, the average deposit account balance was approximately $36,000 at June 30, 2023. The Company had uninsured deposits (excluding municipal deposits of $762.0 million , which are collateralized, and $3.6 billion of intercompany deposits) totaling $1.9 billion, or 24.1% of total deposits at June 30, 2023, down from $2.1 billion, or 27.7% of total deposits at March 31, 2023.

Deposit balances are summarized as follows:

 

At June 30, 2023

 

At March 31, 2023

 

Balance

 

Weighted Average Rate

 

Balance

 

Weighted Average Rate

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

Non-interest-bearing demand

$

1,509,852

 

%

 

$

1,583,329

 

%

Interest-bearing demand

 

2,064,803

 

1.51

 

 

 

2,260,240

 

1.06

 

Money market accounts

 

1,085,317

 

2.80

 

 

 

896,336

 

2.27

 

Savings and club deposits

 

782,996

 

0.24

 

 

 

850,777

 

0.10

 

Certificates of deposit

 

2,271,188

 

2.91

 

 

 

2,083,519

 

2.32

 

Total deposits

$

7,714,156

 

1.68

%

 

$

7,674,201

 

1.22

%


The Company continues to maintain strong liquidity and capital positions. The Company has not utilized the Federal Reserve’s Bank Term Funding Program and had no outstanding borrowings from the Federal Reserve Discount Window at June 30, 2023. The Company had immediate access to $3.6 billion of funding with additional unpledged loan collateral available to pledge in excess of $2.1 billion at June 30, 2023. Available sources of liquidity include but are not limited to:

  • Cash and cash equivalents of $93.5 million;

  • Borrowing capacity based on unencumbered collateral pledged at the FHLB totaling $1.3 billion;

  • Borrowing capacity based on unencumbered collateral pledged at the Federal Reserve Bank totaling $1.9 billion;

  • Available correspondent lines of credit of $384.0 million with various third parties; and

  • Unpledged loan collateral available to pledge in excess of $2.1 billion.

At June 30, 2023, the Company's non-performing commercial real estate loans totaled $3.7 million, or 0.05% 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, 2023

 

(Dollars in thousands)

 

Balance

 

% of Gross Loans

 

Weighted Average Loan to Value Ratio

 

Weighted Average Debt Service Coverage

 

Multifamily Real Estate

$

1,376,999

 

17.9

%

 

61.9

%

 

1.64

x

 

 

 

 

 

 

 

 

 

Owner Occupied Commercial Real Estate

$

509,133

 

6.6

%

 

51.4

%

 

2.16

x

 

 

 

 

 

 

 

 

 

Investor Owned Commercial Real Estate:

 

 

 

 

 

 

 

 

Retail / Shopping centers

$

497,106

 

6.4

%

 

53.1

%

 

1.51

x

Mixed Use

 

317,189

 

4.1

 

 

59.1

 

 

1.63

 

Industrial / Warehouse

 

384,893

 

5.0

 

 

52.4

 

 

1.66

 

Non-Medical Office

 

227,950

 

3.0

 

 

52.5

 

 

1.58

 

Medical Office

 

141,895

 

1.8

 

 

59.5

 

 

1.70

 

Single Purpose

 

74,430

 

1.0

 

 

59.4

 

 

2.23

 

Other

 

234,300

 

3.0

 

 

50.6

 

 

1.68

 

Total

$

1,877,763

 

24.4

%

 

54.3

%

 

1.63

x

 

 

 

 

 

 

 

 

 

Total Multifamily and Commercial Real Estate Loans

$

3,763,895

 

48.8

%

 

56.7

%

 

1.70

x


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 65 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; 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, such as the recent COVID-19 pandemic, 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; 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".

Contact Information:

Columbia Financial, Inc.
Investor Relations Department
(833) 550-0717


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Financial Condition
(In thousands)

 

 

June 30,

 

December 31,

 

 

2023

 

 

2022

Assets

(Unaudited)

 

 

Cash and due from banks

$

93,368

 

$

179,097

Short-term investments

 

107

 

 

131

Total cash and cash equivalents

 

93,475

 

 

179,228

 

 

 

 

Debt securities available for sale, at fair value

 

997,459

 

 

1,328,634

Debt securities held to maturity, at amortized cost (fair value of $364,111, and $370,391 at June 30, 2023 and December 31, 2022, respectively)

 

415,333

 

 

421,523

Equity securities, at fair value

 

3,714

 

 

3,384

Federal Home Loan Bank stock

 

61,277

 

 

58,114

 

 

 

 

Loans receivable

 

7,760,436

 

 

7,677,564

Less: allowance for credit losses

 

53,456

 

 

52,803

Loans receivable, net

 

7,706,980

 

 

7,624,761

 

 

 

 

Accrued interest receivable

 

35,159

 

 

33,898

Office properties and equipment, net

 

82,843

 

 

83,877

Bank-owned life insurance

 

267,905

 

 

264,854

Goodwill and intangible assets

 

124,538

 

 

125,142

Other assets

 

296,592

 

 

284,754

Total assets

$

10,085,275

 

$

10,408,169

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

Liabilities:

 

 

 

Deposits

$

7,714,156

 

$

8,001,159

Borrowings

 

1,120,260

 

 

1,127,047

Advance payments by borrowers for taxes and insurance

 

48,176

 

 

45,460

Accrued expenses and other liabilities

 

179,895

 

 

180,908

Total liabilities

 

9,062,487

 

 

9,354,574

 

 

 

 

Stockholders' equity:

 

 

 

Total stockholders' equity

 

1,022,788

 

 

1,053,595

Total liabilities and stockholders' equity

$

10,085,275

 

$

10,408,169

 

 

 

 

 

 

 


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except per share data)

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Interest income:

(Unaudited)

 

(Unaudited)

Loans receivable

$

84,188

 

 

$

61,927

 

 

$

164,478

 

 

$

118,884

 

Debt securities available for sale and equity securities

 

6,445

 

 

 

8,419

 

 

 

14,896

 

 

 

17,307

 

Debt securities held to maturity

 

2,447

 

 

 

2,357

 

 

 

4,904

 

 

 

4,783

 

Federal funds and interest-earning deposits

 

1,801

 

 

 

77

 

 

 

2,613

 

 

 

94

 

Federal Home Loan Bank stock dividends

 

1,262

 

 

 

298

 

 

 

2,132

 

 

 

745

 

Total interest income

 

96,143

 

 

 

73,078

 

 

 

189,023

 

 

 

141,813

 

Interest expense:

 

 

 

 

 

 

 

Deposits

 

28,727

 

 

 

4,671

 

 

 

45,815

 

 

 

9,358

 

Borrowings

 

16,265

 

 

 

1,900

 

 

 

31,193

 

 

 

3,222

 

Total interest expense

 

44,992

 

 

 

6,571

 

 

 

77,008

 

 

 

12,580

 

 

 

 

 

 

 

 

 

Net interest income

 

51,151

 

 

 

66,507

 

 

 

112,015

 

 

 

129,233

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

1,078

 

 

 

1,539

 

 

 

1,253

 

 

 

2,998

 

 

 

 

 

 

 

 

 

Net interest income after provision for credit losses

 

50,073

 

 

 

64,968

 

 

 

110,762

 

 

 

126,235

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

Demand deposit account fees

 

1,291

 

 

 

1,449

 

 

 

2,467

 

 

 

2,619

 

Bank-owned life insurance

 

1,675

 

 

 

2,139

 

 

 

3,656

 

 

 

3,868

 

Title insurance fees

 

624

 

 

 

1,035

 

 

 

1,211

 

 

 

1,992

 

Loan fees and service charges

 

1,325

 

 

 

856

 

 

 

2,397

 

 

 

1,496

 

(Loss) gain on securities transactions

 

(9,552

)

 

 

210

 

 

 

(10,847

)

 

 

210

 

Change in fair value of equity securities

 

162

 

 

 

(147

)

 

 

330

 

 

 

(68

)

(Loss) gain on sale of loans

 

(128

)

 

 

 

 

 

663

 

 

 

110

 

Other non-interest income

 

4,057

 

 

 

2,127

 

 

 

7,651

 

 

 

4,483

 

Total non-interest income

 

(546

)

 

 

7,669

 

 

 

7,528

 

 

 

14,710

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

Compensation and employee benefits

 

32,460

 

 

 

28,871

 

 

 

63,618

 

 

 

54,870

 

Occupancy

 

5,738

 

 

 

5,436

 

 

 

11,492

 

 

 

10,865

 

Federal deposit insurance premiums

 

1,734

 

 

 

630

 

 

 

2,423

 

 

 

1,277

 

Advertising

 

786

 

 

 

795

 

 

 

1,473

 

 

 

1,444

 

Professional fees

 

2,376

 

 

 

1,839

 

 

 

4,251

 

 

 

3,593

 

Data processing and software expenses

 

3,601

 

 

 

3,099

 

 

 

7,426

 

 

 

6,366

 

Merger-related expenses

 

266

 

 

 

1,327

 

 

 

266

 

 

 

1,478

 

Other non-interest expense, net

 

645

 

 

 

(277

)

 

 

559

 

 

 

2,576

 

Total non-interest expense

 

47,606

 

 

 

41,720

 

 

 

91,508

 

 

 

82,469

 

 

 

 

 

 

 

 

 

Income before income tax expense

 

1,921

 

 

 

30,917

 

 

 

26,782

 

 

 

58,476

 

 

 

 

 

 

 

 

 

Income tax expense

 

257

 

 

 

7,958

 

 

 

6,395

 

 

 

15,113

 

 

 

 

 

 

 

 

 

Net income

$

1,664

 

 

$

22,959

 

 

$

20,387

 

 

$

43,363

 

 

 

 

 

 

 

 

 

Earnings per share-basic

$

0.02

 

 

$

0.22

 

 

$

0.20

 

 

$

0.41

 

Earnings per share-diluted

$

0.02

 

 

$

0.22

 

 

$

0.20

 

 

$

0.41

 

Weighted average shares outstanding-basic

 

102,409,035

 

 

 

106,204,230

 

 

 

103,514,169

 

 

 

104,684,765

 

Weighted average shares outstanding-diluted

 

102,517,584

 

 

 

106,750,557

 

 

 

103,835,235

 

 

 

105,246,304

 

 

 

 

 

 

 

 

 

 


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Average Balances/Yields

 

 

For the Three Months Ended June 30,

 

 

2023

 

 

 

2022

 

 

Average Balance

 

Interest and Dividends

 

Yield / Cost

 

Average Balance

 

Interest and Dividends

 

Yield / Cost

 

(Dollars in thousands)

Interest-earnings assets:

 

 

 

 

 

 

 

 

 

 

 

Loans

$

7,736,029

 

 

$

84,188

 

4.36

%

 

$

6,754,749

 

 

$

61,928

 

3.68

%

Securities

 

1,527,722

 

 

 

8,892

 

2.33

%

 

 

2,022,536

 

 

 

10,775

 

2.14

%

Other interest-earning assets

 

202,076

 

 

 

3,063

 

6.08

%

 

 

77,821

 

 

 

375

 

1.93

%

Total interest-earning assets

 

9,465,827

 

 

 

96,143

 

4.07

%

 

 

8,855,106

 

 

 

73,078

 

3.31

%

Non-interest-earning assets

 

835,995

 

 

 

 

 

 

 

781,393

 

 

 

 

 

Total assets

$

10,301,822

 

 

 

 

 

 

$

9,636,499

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand

$

2,190,005

 

 

$

8,486

 

1.55

%

 

$

2,658,584

 

 

$

1,643

 

0.25

%

Money market accounts

 

890,556

 

 

 

5,313

 

2.39

%

 

 

698,526

 

 

 

372

 

0.21

%

Savings and club deposits

 

813,904

 

 

 

479

 

0.24

%

 

 

945,892

 

 

 

117

 

0.05

%

Certificates of deposit

 

2,184,915

 

 

 

14,449

 

2.65

%

 

 

1,808,215

 

 

 

2,539

 

0.56

%

Total interest-bearing deposits

 

6,079,380

 

 

 

28,727

 

1.90

%

 

 

6,111,217

 

 

 

4,671

 

0.31

%

FHLB advances

 

1,344,006

 

 

 

15,808

 

4.72

%

 

 

419,884

 

 

 

1,500

 

1.43

%

Notes payable

 

30,621

 

 

 

307

 

4.02

%

 

 

29,859

 

 

 

322

 

4.33

%

Junior subordinated debentures

 

7,377

 

 

 

150

 

8.16

%

 

 

7,628

 

 

 

78

 

4.10

%

Total borrowings

 

1,382,004

 

 

 

16,265

 

4.72

%

 

 

457,371

 

 

 

1,900

 

1.67

%

Total interest-bearing liabilities

 

7,461,384

 

 

$

44,992

 

2.42

%

 

 

6,568,588

 

 

$

6,571

 

0.40

%

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

1,539,808

 

 

 

 

 

 

 

1,784,991

 

 

 

 

 

Other non-interest-bearing liabilities

 

214,300

 

 

 

 

 

 

 

201,355

 

 

 

 

 

Total liabilities

 

9,215,492

 

 

 

 

 

 

 

8,554,934

 

 

 

 

 

Total stockholders' equity

 

1,086,330

 

 

 

 

 

 

 

1,081,565

 

 

 

 

 

Total liabilities and stockholders' equity

$

10,301,822

 

 

 

 

 

 

$

9,636,499

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

$

51,151

 

 

 

 

 

$

66,507

 

 

Interest rate spread

 

 

 

 

1.65

%

 

 

 

 

 

2.91

%

Net interest-earning assets

$

2,004,443

 

 

 

 

 

 

$

2,286,518

 

 

 

 

 

Net interest margin

 

 

 

 

2.17

%

 

 

 

 

 

3.01

%

Ratio of interest-earning assets to interest-bearing liabilities

 

126.86

%

 

 

 

 

 

 

134.81

%

 

 

 

 


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Average Balances/Yields

 

 

For the Six Months Ended June 30,

 

 

2023

 

 

 

2022

 

 

Average Balance

 

Interest and Dividends

 

Yield / Cost

 

Average Balance

 

Interest and Dividends

 

Yield / Cost

 

(Dollars in thousands)

Interest-earnings assets:

 

 

 

 

 

 

 

 

 

 

 

Loans

$

7,705,680

 

 

$

164,478

 

4.30

%

 

$

6,568,899

 

 

$

118,884

 

3.65

%

Securities

 

1,637,121

 

 

 

19,800

 

2.44

%

 

 

2,051,975

 

 

 

22,090

 

2.17

%

Other interest-earning assets

 

181,934

 

 

 

4,745

 

5.26

%

 

 

72,475

 

 

 

839

 

2.33

%

Total interest-earning assets

 

9,524,735

 

 

 

189,023

 

4.00

%

 

 

8,693,349

 

 

 

141,813

 

3.29

%

Non-interest-earning assets

 

831,020

 

 

 

 

 

 

 

743,419

 

 

 

 

 

Total assets

$

10,355,755

 

 

 

 

 

 

$

9,436,768

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand

$

2,341,814

 

 

$

14,503

 

1.25

%

 

$

2,659,329

 

 

$

3,263

 

0.25

%

Money market accounts

 

815,859

 

 

 

7,570

 

1.87

%

 

 

677,400

 

 

 

696

 

0.21

%

Savings and club deposits

 

850,711

 

 

 

693

 

0.16

%

 

 

891,376

 

 

 

226

 

0.05

%

Certificates of deposit

 

2,099,296

 

 

 

23,049

 

2.21

%

 

 

1,779,658

 

 

 

5,173

 

0.59

%

Total interest-bearing deposits

 

6,107,680

 

 

 

45,815

 

1.51

%

 

 

6,007,763

 

 

 

9,358

 

0.31

%

FHLB advances

 

1,311,640

 

 

 

30,298

 

4.66

%

 

 

394,307

 

 

 

2,495

 

1.28

%

Notes payable

 

30,261

 

 

 

599

 

3.99

%

 

 

29,852

 

 

 

587

 

3.97

%

Junior subordinated debentures

 

7,408

 

 

 

296

 

8.06

%

 

 

7,674

 

 

 

140

 

3.68

%

Total borrowings

 

1,349,309

 

 

 

31,193

 

4.66

%

 

 

431,833

 

 

 

3,222

 

1.50

%

Total interest-bearing liabilities

 

7,456,989

 

 

$

77,008

 

2.08

%

 

 

6,439,596

 

 

$

12,580

 

0.39

%

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

1,609,994

 

 

 

 

 

 

 

1,729,657

 

 

 

 

 

Other non-interest-bearing liabilities

 

217,933

 

 

 

 

 

 

 

191,549

 

 

 

 

 

Total liabilities

 

9,284,916

 

 

 

 

 

 

 

8,360,802

 

 

 

 

 

Total stockholders' equity

 

1,070,839

 

 

 

 

 

 

 

1,075,966

 

 

 

 

 

Total liabilities and stockholders' equity

$

10,355,755

 

 

 

 

 

 

$

9,436,768

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

$

112,015

 

 

 

 

 

$

129,233

 

 

Interest rate spread

 

 

 

 

1.92

%

 

 

 

 

 

2.90

%

Net interest-earning assets

$

2,067,746

 

 

 

 

 

 

$

2,253,753

 

 

 

 

 

Net interest margin

 

 

 

 

2.37

%

 

 

 

 

 

3.00

%

Ratio of interest-earning assets to interest-bearing liabilities

 

127.73

%

 

 

 

 

 

 

135.00

%

 

 

 

 


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Components of Net Interest Rate Spread and Margin

 

 

Average Yields/Costs by Quarter

 

June 30, 2023

 

March 31, 2023

 

December 31, 2022

 

September 30, 2022

 

June 30, 2022

Yield on interest-earning assets:

 

 

 

 

 

 

 

 

 

Loans

4.36

%

 

4.24

%

 

4.05

%

 

3.80

%

 

3.68

%

Securities

2.33

 

 

2.53

 

 

2.45

 

 

2.27

 

 

2.14

 

Other interest-earning assets

6.08

 

 

4.22

 

 

4.00

 

 

2.68

 

 

1.93

 

Total interest-earning assets

4.07

%

 

3.93

%

 

3.75

%

 

3.47

%

 

3.31

%

 

 

 

 

 

 

 

 

 

 

Cost of interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

Total interest-bearing deposits

1.90

%

 

1.13

%

 

0.73

%

 

0.44

%

 

0.31

%

Total borrowings

4.72

 

 

4.60

 

 

3.69

 

 

2.47

 

 

1.67

 

Total interest-bearing liabilities

2.42

%

 

1.74

%

 

1.09

%

 

0.62

%

 

0.40

%

 

 

 

 

 

 

 

 

 

 

Interest rate spread

1.65

%

 

2.19

%

 

2.66

%

 

2.85

%

 

2.91

%

Net interest margin

2.17

%

 

2.58

%

 

2.91

%

 

3.01

%

 

3.01

%

 

 

 

 

 

 

 

 

 

 

Ratio of interest-earning assets to interest-bearing liabilities

126.86

%

 

128.60

%

 

130.79

%

 

132.57

%

 

134.81

%


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Selected Financial Highlights

 

 

QUARTERLY FINANCIAL RATIOS

 

June 30, 2023

 

March 31, 2023

 

December 31, 2022

 

September 30, 2022

 

June 30, 2022

SELECTED FINANCIAL RATIOS (1):

 

 

 

 

 

 

 

 

 

Return on average assets

0.06

%

 

0.73

%

 

0.86

%

 

0.84

%

 

0.96

%

Core return on average assets

0.46

%

 

0.77

%

 

0.87

%

 

0.91

%

 

0.99

%

Return on average equity

0.61

%

 

7.20

%

 

8.42

%

 

7.70

%

 

8.51

%

Core return on average equity

4.29

%

 

7.59

%

 

8.52

%

 

8.35

%

 

8.82

%

Core return on average tangible equity

4.89

%

 

8.61

%

 

9.70

%

 

9.49

%

 

9.88

%

Interest rate spread

1.65

%

 

2.19

%

 

2.66

%

 

2.85

%

 

2.91

%

Net interest margin

2.17

%

 

2.58

%

 

2.91

%

 

3.01

%

 

3.01

%

Non-interest income to average assets

(0.02)

%

 

0.31

%

 

0.29

%

 

0.33

%

 

0.32

%

Non-interest expense to average assets

1.85

%

 

1.71

%

 

1.74

%

 

1.91

%

 

1.74

%

Efficiency ratio

94.07

%

 

63.68

%

 

58.63

%

 

61.88

%

 

56.24

%

Core efficiency ratio

81.01

%

 

62.35

%

 

58.26

%

 

58.43

%

 

54.65

%

Average interest-earning assets to average interest-bearing liabilities

126.86

%

 

128.60

%

 

130.79

%

 

132.57

%

 

134.81

%

Net charge-offs (recoveries) to average outstanding loans

0.03

%

 

0.01

%

 

%

 

0.01

%

 

(0.01)

%

 

 

 

 

 

 

 

 

 

 

(1) Ratios are annualized when appropriate.


ASSET QUALITY DATA:

 

 

June 30, 2023

 

March 31, 2023

 

December 31, 2022

 

September 30, 2022

 

June 30, 2022

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

Non-accrual loans

$

11,091

 

 

$

6,610

 

 

$

6,721

 

 

$

6,996

 

 

$

4,525

 

90+ and still accruing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans

 

11,091

 

 

 

6,610

 

 

 

6,721

 

 

 

6,996

 

 

 

4,525

 

Real estate owned

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing assets

$

11,091

 

 

$

6,610

 

 

$

6,721

 

 

$

6,996

 

 

$

4,525

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans to total gross loans

 

0.14

%

 

 

0.09

%

 

 

0.09

%

 

 

0.10

%

 

 

0.07

%

Non-performing assets to total assets

 

0.11

%

 

 

0.06

%

 

 

0.06

%

 

 

0.07

%

 

 

0.05

%

Allowance for credit losses on loans ("ACL")

$

53,456

 

 

$

52,873

 

 

$

52,803

 

 

$

51,891

 

 

$

50,583

 

ACL to total non-performing loans

 

481.98

%

 

 

799.89

%

 

 

785.64

%

 

 

741.72

%

 

 

1,117.86

%

ACL to gross loans

 

0.69

%

 

 

0.68

%

 

 

0.69

%

 

 

0.71

%

 

 

0.73

%

Unamortized purchase accounting fair value credit marks on acquired loans

$

2,397

 

 

$

3,173

 

 

$

4,025

 

 

$

4,927

 

 

$

5,896

 


LOAN DATA:

 

 

 

 

June 30, 2023

 

March 31, 2023

 

December 31, 2022

 

September 30, 2022

 

June 30, 2022

 

(In thousands)

 

 

Real estate loans:

 

 

 

 

 

One-to-four family

$

2,789,269

 

 

$

2,860,964

 

 

$

2,860,184

 

 

$

2,706,114

 

 

$

2,511,715

 

Multifamily

 

1,376,999

 

 

 

1,315,143

 

 

 

1,239,207

 

 

 

1,142,459

 

 

 

1,077,459

 

Commercial real estate

 

2,386,896

 

 

 

2,393,918

 

 

 

2,413,394

 

 

 

2,354,786

 

 

 

2,306,683

 

Construction

 

378,988

 

 

 

374,434

 

 

 

336,553

 

 

 

289,650

 

 

 

276,710

 

Commercial business loans

 

505,524

 

 

 

516,682

 

 

 

497,469

 

 

 

497,478

 

 

 

474,145

 

Consumer loans:

 

 

 

 

 

 

 

 

 

Home equity loans and advances

 

269,310

 

 

 

271,620

 

 

 

274,302

 

 

 

279,824

 

 

 

281,590

 

Other consumer loans

 

2,552

 

 

 

2,322

 

 

 

3,425

 

 

 

2,214

 

 

 

2,131

 

Total gross loans

 

7,709,538

 

 

 

7,735,083

 

 

 

7,624,534

 

 

 

7,272,525

 

 

 

6,930,433

 

Purchased credit deteriorated ("PCD") loans

 

16,107

 

 

 

16,245

 

 

 

17,059

 

 

 

19,771

 

 

 

21,353

 

Net deferred loan costs, fees and purchased premiums and discounts

 

34,791

 

 

 

35,744

 

 

 

35,971

 

 

 

33,927

 

 

 

31,010

 

Allowance for credit losses

 

(53,456

)

 

 

(52,873

)

 

 

(52,803

)

 

 

(51,891

)

 

 

(50,583

)

Loans receivable, net

$

7,706,980

 

 

$

7,734,199

 

 

$

7,624,761

 

 

$

7,274,332

 

 

$

6,932,213

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


CAPITAL RATIOS:

 

 

 

 

June 30,

 

December 31,

 

2023 (1)

 

2022

 

Company:

 

 

 

Total capital (to risk-weighted assets)

14.06

%

 

15.39

%

Tier 1 capital (to risk-weighted assets)

13.30

%

 

14.59

%

Common equity tier 1 capital (to risk-weighted assets)

13.21

%

 

14.49

%

Tier 1 capital (to adjusted total assets)

10.16

%

 

10.68

%

 

 

 

 

Columbia Bank:

 

 

 

Total capital (to risk-weighted assets)

13.80

%

 

14.12

%

Tier 1 capital (to risk-weighted assets)

13.00

%

 

13.32

%

Common equity tier 1 capital (to risk-weighted assets)

13.00

%

 

13.32

%

Tier 1 capital (to adjusted total assets)

9.49

%

 

9.74

%

 

 

 

 

Freehold Bank:

 

 

 

Total capital (to risk-weighted assets)

22.60

%

 

22.92

%

Tier 1 capital (to risk-weighted assets)

21.91

%

 

22.19

%

Common equity tier 1 capital (to risk-weighted assets)

21.91

%

 

22.19

%

Tier 1 capital (to adjusted total assets)

15.33

%

 

15.19

%

 

 

 

 

(1) Estimated ratios at June 30, 2023

 

 

 


Reconciliation of GAAP to Non-GAAP Financial Measures

 

 

 

 

 

 

Book and Tangible Book Value per Share

 

 

 

June 30,

 

December 31,

 

 

 

 

2023

 

 

 

2022

 

 

 

 

(Dollars in thousands)

 

 

 

 

Total stockholders' equity

 

 

$

1,022,788

 

 

$

1,053,595

 

Less: goodwill

 

 

 

(110,715

)

 

 

(110,715

)

Less: core deposit intangible

 

 

 

(12,311

)

 

 

(13,505

)

Total tangible stockholders' equity

 

 

$

899,762

 

 

$

929,375

 

 

 

 

 

 

 

Shares outstanding

 

 

 

105,598,742

 

 

 

108,970,476

 

 

 

 

 

 

 

Book value per share

 

 

$

9.69

 

 

$

9.67

 

Tangible book value per share

 

 

$

8.52

 

 

$

8.53

 


Reconciliation of Core Net Income

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2023

 

 

2022

 

 

 

2023

 

 

2022

 

 

(In thousands)

 

 

 

 

 

 

 

 

Net income

$

1,664

 

$

22,959

 

 

$

20,387

 

$

43,363

 

Add/Less: loss (gain) on securities transactions, net of tax

 

8,274

 

 

(156

)

 

 

9,249

 

 

(156

)

Add: severance expense from reduction in workforce, net of tax

 

1,390

 

 

 

 

 

1,390

 

 

 

Add: merger-related expenses, net of tax

 

230

 

 

1,022

 

 

 

230

 

 

1,144

 

Add/Less: litigation expense (credit), net of tax

 

181

 

 

(46

)

 

 

262

 

 

1,598

 

Add: branch closure expense, net of tax

 

 

 

27

 

 

 

 

 

27

 

Core net income

$

11,739

 

$

23,806

 

 

$

31,518

 

$

45,976

 


Return on Average Assets

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

Net income

$

1,664

 

 

$

22,959

 

 

$

20,387

 

 

$

43,363

 

 

 

 

 

 

 

 

 

Average assets

$

10,301,822

 

 

$

9,636,499

 

 

$

10,355,755

 

 

$

9,436,768

 

 

 

 

 

 

 

 

 

Return on average assets

 

0.06

%

 

 

0.96

%

 

 

0.40

%

 

 

0.93

%

 

 

 

 

 

 

 

 

Core net income

$

11,739

 

 

$

23,806

 

 

$

31,518

 

 

$

45,976

 

 

 

 

 

 

 

 

 

Core return on average assets

 

0.46

%

 

 

0.99

%

 

 

0.61

%

 

 

0.98

%


Reconciliation of GAAP to Non-GAAP Financial Measures (continued)

 

 

 

 

 

 

 

 

Return on Average Equity

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

Total average stockholders' equity

$

1,086,330

 

 

$

1,081,565

 

 

$

1,070,839

 

 

$

1,075,966

 

Add/Less: loss (gain) on securities transactions, net of tax

 

8,274

 

 

 

(156

)

 

 

9,249

 

 

 

(156

)

Add: severance expense from reduction in workforce, net of tax

 

1,390

 

 

 

 

 

 

1,390

 

 

 

 

Add: merger-related expenses, net of tax

 

230

 

 

 

1,022

 

 

 

230

 

 

 

1,144

 

Add: litigation expenses (credit), net of tax

 

181

 

 

 

(46

)

 

 

262

 

 

 

1,598

 

Add: branch closure expense, net of tax

 

 

 

 

27

 

 

 

 

 

 

27

 

Core average stockholders' equity

$

1,096,405

 

 

$

1,082,412

 

 

$

1,081,970

 

 

$

1,078,579

 

 

 

 

 

 

 

 

 

Return on average equity

 

0.61

%

 

 

8.51

%

 

 

3.84

%

 

 

8.13

%

 

 

 

 

 

 

 

 

Core return on core average equity

 

4.29

%

 

 

8.82

%

 

 

5.87

%

 

 

8.60

%


Return on Average Tangible Equity

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

Total average stockholders' equity

$

1,086,330

 

 

$

1,081,565

 

 

$

1,070,839

 

 

$

1,075,966

 

Less: average goodwill

 

(110,715

)

 

 

(103,776

)

 

 

(110,715

)

 

 

(94,601

)

Less: average core deposit intangible

 

(12,694

)

 

 

(11,720

)

 

 

(12,989

)

 

 

(8,442

)

Total average tangible stockholders' equity

$

962,921

 

 

$

966,069

 

 

$

947,135

 

 

$

972,923

 

 

 

 

 

 

 

 

 

Core return on average tangible equity

 

4.89

%

 

 

9.88

%

 

 

6.71

%

 

 

9.53

%


Reconciliation of GAAP to Non-GAAP Financial Measures (continued)

 

 

 

 

 

 

 

 

Efficiency Ratios

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

Net interest income

$

51,151

 

 

$

66,507

 

 

$

112,015

 

 

$

129,233

 

Non-interest income

 

(546

)

 

 

7,669

 

 

 

7,528

 

 

 

14,710

 

Total income

$

50,605

 

 

$

74,176

 

 

$

119,543

 

 

$

143,943

 

 

 

 

 

 

 

 

 

Non-interest expense

$

47,606

 

 

$

41,720

 

 

$

91,508

 

 

$

82,469

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

94.07

%

 

 

56.24

%

 

 

76.55

%

 

 

57.29

%

 

 

 

 

 

 

 

 

Non-interest income

$

(546

)

 

$

7,669

 

 

$

7,528

 

 

$

14,710

 

Add/Less: loss (gain) on securities transactions

 

9,552

 

 

 

(210

)

 

 

10,847

 

 

 

(210

)

Core non-interest income

$

9,006

 

 

$

7,459

 

 

$

18,375

 

 

$

14,500

 

 

 

 

 

 

 

 

 

Non-interest expense

$

47,606

 

 

$

41,720

 

 

$

91,508

 

 

$

82,469

 

Less: severance expense from reduction in workforce

 

1,605

 

 

 

 

 

 

1,605

 

 

 

 

Less: merger-related expenses

 

(266

)

 

 

(1,327

)

 

 

(266

)

 

 

(1,478

)

Less/Add: litigation (expense)credit

 

(209

)

 

 

62

 

 

 

(317

)

 

 

(2,158

)

Less: branch closure expense

 

 

 

 

(36

)

 

 

 

 

 

(36

)

Core non-interest expense

$

48,736

 

 

$

40,419

 

 

$

92,530

 

 

$

78,797

 

 

 

 

 

 

 

 

 

Core efficiency ratio

 

81.01

%

 

 

54.65

%

 

 

70.96

%

 

 

54.82

%