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Columbia Financial, Inc. Announces Financial Results for the Fourth Quarter and Year Ended December 31, 2023

FAIR LAWN, N.J., Jan. 25, 2024 (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 $6.6 million, or $0.06 per basic and diluted share, for the quarter ended December 31, 2023, as compared to net income of $21.9 million, or $0.21 per basic and diluted share, for the quarter ended December 31, 2022. Earnings for the quarter ended December 31, 2023 reflected lower net interest income, mainly due to an increase in interest expense, a higher provision for credit losses and higher non-interest expense, which included a one-time Federal Deposit Insurance Corporation special assessment, partially offset by higher non-interest income and a lower income tax expense. For the quarter ended December 31, 2023, the Company reported core net income of $10.1 million, a decrease of $12.0 million, or 54.3%, compared to core net income of $22.2 million for the quarter ended December 31, 2022. (Refer to "Reconciliation of GAAP to Non-GAAP Financial Measures" for a reconciliation of GAAP net income to core net income.)

For the year ended December 31, 2023, the Company reported net income of $36.1 million, or $0.35 per basic and diluted share, as compared to net income of $86.2 million, or $0.82 per basic and $0.81 per diluted share, for the year ended December 31, 2022. Earnings for the year ended December 31, 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 a lower income tax expense. Non-interest income for the year ended December 31, 2023 included a $10.8 million loss on the sale of available for sale securities. For the year ended December 31, 2023, the Company reported core net income of $50.8 million, a decrease of $40.1 million, or 44.1%, compared to core net income of $90.9 million for the year ended December 31, 2022.

Thomas J. Kemly, President and Chief Executive Officer commented: "The Company's balance sheet, asset quality, liquidity position and capital remained strong in 2023. This year was uniquely challenging due to a difficult operating environment resulting from a dramatic rise in interest rates, and new industry concerns that emerged from a few bank failures earlier in the year. We continue to implement prudent strategies that mitigate risks and build a foundation for future success and increased profitability. We are focused on providing outstanding customer service and continue our investment in technology to enhance our products and delivery channels."

Results of Operations for the Three Months Ended December 31, 2023 and December 31, 2022

Net income of $6.6 million was recorded for the quarter ended December 31, 2023, a decrease of $15.3 million, or 70.0%, compared to net income of $21.9 million for the quarter ended December 31, 2022. The decrease in net income was primarily attributable to a $23.1 million decrease in net interest income and a $3.5 million increase in non-interest expense, partially offset by a $3.7 million increase in non-interest income and a $7.7 million decrease in income tax expense.

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Net interest income was $45.3 million for the quarter ended December 31, 2023, a decrease of $23.1 million, or 33.7%, from $68.4 million for the quarter ended December 31, 2022. The decrease in net interest income was primarily attributable to a $42.7 million increase in interest expense on deposits and borrowings, partially offset by a $19.6 million increase in interest income. The increase in interest income was primarily due to an increase in the average balance of interest-earning assets coupled with an increase in average yields due to market interest rate increases that occurred over the previous two years. 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 $419,000 for the quarter ended December 31, 2023, compared to $1.0 million for the quarter ended December 31, 2022.

The average yield on loans for the quarter ended December 31, 2023 increased 61 basis points to 4.66%, as compared to 4.05% for the quarter ended December 31, 2022, as interest income was influenced by rising interest rates and loan growth. The average yield on securities for the quarter ended December 31, 2023 increased 13 basis points to 2.58%, as compared to 2.45% for the quarter ended December 31, 2022, as a number of adjustable rate securities tied to various indexes continued to reprice higher during the quarter, and new securities purchased during 2023 were at higher interest rates. The average yield on other interest-earning assets for the quarter ended December 31, 2023 increased 164 basis points to 5.64%, as compared to 4.00% for the quarter ended December 31, 2022, due to interest rates paid on cash balances and an increase in the dividend paid on Federal Home Loan Bank stock.

Total interest expense was $62.2 million for the quarter ended December 31, 2023, an increase of $42.7 million, or 218.4%, from $19.5 million for the quarter ended December 31, 2022. The increase in interest expense was primarily attributable to a 203 basis point increase in the average cost of interest-bearing deposits, partially offset by a decrease in the average balance of interest-bearing deposits, coupled with a 127 basis point increase in the average cost of borrowings, and a significant increase in the average balance of borrowings. Interest expense on borrowings increased $10.8 million, or 135.2%, and interest expense on deposits increased $31.9 million or 275.9% due to the rise in interest rates as noted above.

The Company's net interest margin for the quarter ended December 31, 2023 decreased 106 basis points to 1.85%, when compared to 2.91% for the quarter ended December 31, 2022. The weighted average yield on interest-earning assets increased 64 basis points to 4.39% for the quarter ended December 31, 2023 as compared to 3.75% for the quarter ended December 31, 2022. The average cost of interest-bearing liabilities increased 209 basis points to 3.18% for the quarter ended December 31, 2023 as compared to 1.09% for the quarter ended December 31, 2022. The increase in yields for the quarter ended December 31, 2023 was due to the impact of market interest rate increases between periods. The net interest margin decreased for the quarter ended December 31, 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 December 31, 2023 was $1.2 million, an increase of $184,000, from $971,000 for the quarter ended December 31, 2022. The increase in provision for credit losses during the quarter was primarily attributable to an increase in the outstanding balance of loans, partially offset by a decrease in loan loss rates.

Non-interest income was $11.2 million for the quarter ended December 31, 2023, an increase of $3.7 million, or 49.5%, from $7.5 million for the quarter ended December 31, 2022. The increase was primarily attributable to an increase in bank-owned life insurance income of $2.6 million which included death benefit claims, coupled with a $515,000 increase in the fair value of equity securities.

Non-interest expense was $48.0 million for the quarter ended December 31, 2023, an increase of $3.5 million, or 7.8%, from $44.5 million for the quarter ended December 31, 2022. The increase was primarily attributable to an increase in federal deposit insurance premiums of $4.3 million, an increase in data processing and software expenses of $828,000 and a loss on the extinguishment of debt of $300,000, partially offset by a decrease of $2.1 million in compensation and employee benefits expense. The increase in federal deposit insurance premiums was due to a one-time Federal Deposit Insurance Corporation special assessment recorded in December 2023, and an increase in the assessment rate imposed by the FDIC effective January 1, 2023. The increase in data processing and software expenses mainly related to the increase in core processing expense. During the quarter ended December 31, 2023, the Company prepaid a term note which resulted in a $300,000 loss on the early extinguishment of debt. The decrease in compensation and employee benefits expense was due to the result of a workforce reduction in June 2023, along with other related employee expense cutting strategies implemented during the current year including a reduction in bonus accrual.

Income tax expense was $865,000 for the quarter ended December 31, 2023, a decrease of $7.7 million, as compared to $8.5 million for the quarter ended December 31, 2022, mainly due to a decrease in pre-tax income and a decrease in the Company's effective tax rate. The Company's effective tax rate was 11.6% and 28.1% for the quarters ended December 31, 2023 and 2022, respectively. The effective tax rate for the 2023 period was primarily impacted by lower net interest income and higher actual tax-exempt income.

Results of Operations for the Years Ended December 31, 2023 and December 31, 2022

Net income of $36.1 million was recorded for the year ended December 31, 2023, a decrease of $50.1 million, or 58.1%, compared to net income of $86.2 million for the year ended December 31, 2022. The decrease in net income was primarily attributable to a $60.9 million decrease in net interest income, a $3.0 million decrease in non-interest income, and a $7.6 million increase in non-interest expense, partially offset by a $698,000 decrease in provision for credit losses and a $20.7 million decrease in income tax expense.

Net interest income was $205.9 million for the year ended December 31, 2023, a decrease of $60.9 million, or 22.8%, from $266.8 million for the year ended December 31, 2022. The decrease in net interest income was primarily attributable to a $146.2 million increase in interest expense on deposits and borrowings, partially offset by a $85.3 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 in 2022 and 2023. The increase in interest expense on deposits and borrowings 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 $817,000 for the year ended December 31, 2023, compared to $4.5 million for the year ended December 31, 2022.

The average yield on loans for the year ended December 31, 2023 increased 64 basis points to 4.44%, as compared to 3.80% for the year ended December 31, 2022, as interest income increased due to rising rates and loan growth. The average yield on securities for the year ended December 31, 2023 increased 20 basis points to 2.46%, as compared to 2.26% for the year ended December 31, 2022 as $124.6 million of higher yielding securities were purchased, and a number of adjustable rate securities tied to various indexes continued to reprice higher during the year. The average yield on other interest-earning assets for the year ended December 31, 2023 increased 267 basis points to 5.54%, as compared to 2.87% for the year ended December 31, 2022, due to the rise in interest rates, as noted above.

Total interest expense was $189.1 million for the year ended December 31, 2023, an increase of $146.2 million, or 340.9%, from $42.9 million for the year ended December 31, 2022. The increase in interest expense was primarily attributable to a 158 basis point increase in the average cost of interest-bearing deposits and an increase in the average balance of deposits, coupled with an increase in interest on borrowings of $48.9 million due to a 218 basis point increase in the cost of total borrowings and an increase in the average balance of borrowings.

The Company's net interest margin for the year ended December 31, 2023 decreased 82 basis points to 2.16%, when compared to 2.98% for the year ended December 31, 2022. The weighted average yield on interest-earning assets for the year ended December 31, 2023 increased 68 basis points to 4.14%, as compared to 3.46% for the year ended December 31, 2022. The average cost of interest-bearing liabilities increased 188 basis points to 2.52% for the year ended December 31, 2023 as compared to 0.64% for the year ended December 31, 2022. The increase in yields for the year ended December 31, 2023 was due to the impact of market rate increases between periods. The net interest margin decreased for the year ended December 31, 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 year ended December 31, 2023 was $4.8 million, a decrease of $698,000, from $5.5 million for the year ended December 31, 2022. The decrease in provision for credit losses during the year 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 $27.4 million for the year ended December 31, 2023, a decrease of $3.0 million, or 9.9%, from $30.4 million for the year ended December 31, 2022. The decrease was primarily attributable to an increase in the loss of securities transactions of $11.1 million, partially offset by an increase in bank-owned life insurance income of $2.7 million due to death benefit claims, an increase in the change in fair value of equity securities of $1.1 million, an increase in the gain on sale of loans of $1.0 million and an increase in other non-interest income of $3.8 million, primarily related to swap income.

Non-interest expense was $182.4 million for the year ended December 31, 2023, an increase of $7.6 million, or 4.3%, from $174.8 million for the year ended December 31, 2022. The increase was primarily attributable to an increase in compensation and employee benefits expense of $3.9 million, an increase in federal deposit insurance premiums of $6.0 million, and a loss on extinguishment of debt of $300,000, resulting from the prepayment of a term note. These increases were partially offset by a decrease in merger-related expenses of $2.2 million and a decrease in other non-interest expense of $4.1 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 federal deposit insurance premium expense increased due to the one-time Federal Deposit Insurance Corporation special assessment recorded in December 2023, and an increase in the assessment rate imposed by the FDIC effective January 1, 2023. 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.

Income tax expense was $10.0 million for the year ended December 31, 2023, a decrease of $20.7 million, as compared to $30.7 million for the year ended December 31, 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 21.6% and 26.3% for the years ended December 31, 2023 and 2022, respectively. The effective tax rate for the 2023 period was primarily impacted by lower net interest income and the loss on the sale of securities, and higher tax-exempt income.

Balance Sheet Summary

Total assets increased $237.4 million, or 2.3%, to $10.6 billion at December 31, 2023 from $10.4 billion at December 31, 2022. The increase in total assets was primarily attributable to an increase in cash and cash equivalents of $244.0 million, an increase in loans receivable, net, of $194.7 million, an increase in Federal Home Loan Bank stock of $22.9 million, and an increase in other assets of $23.7 million, partially offset by decrease in debt securities available for sale of $235.1 million.

Cash and cash equivalents increased $244.0 million, or 136.2%, to $423.2 million at December 31, 2023 from $179.2 million at December 31, 2022. The increase was primarily attributable to $277.0 million in proceeds from the sale of debt securities available for sale, and an increase in borrowings of $401.6 million, or 35.6%, partially offset by purchases of debt securities available for sale of $124.6 million, a decrease in total deposits of $154.6 million and $80.5 million in repurchases of common stock under our stock repurchase program.

Debt securities available for sale decreased $235.1 million, or 17.7%, to $1.1 billion at December 31, 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 $100.9 million, which was partially offset by purchases of U.S. government obligations of $124.6 million and a decrease in the gross unrealized loss on securities of $30.3 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 3.12% during the year ended December 31, 2023. The Bank sold predominantly fixed rate, low-yielding debt securities and used the proceeds to repay high costing short term borrowings to improve net interest rate margin.

Loans receivable, net, increased $194.7 million, or 2.6%, to $7.8 billion at December 31, 2023 from $7.6 billion at December 31, 2022. Multifamily real estate loans, construction loans, and commercial business loans increased $170.0 million, $106.5 million, and $35.6 million, respectively, partially offset by decreases in one-to-four family real estate loans, commercial real estate loans and home equity loans and advances of $67.4 million, $36.3 million and $7.7 million, respectively. The allowance for credit losses for loans increased $2.3 million to $55.1 million at December 31, 2023 from $52.8 million at December 31, 2022. During the year ended December 31, 2023, the increase in the allowance for credit losses for loans was primarily due to an increase in the outstanding balance of loans and an increase in qualitative factors, partially offset by a decrease in loan loss rates.

Federal Home Loan Bank stock increased $22.9 million, or 39.4%, to $81.0 million at December 31, 2023 from $58.1 million at December 31, 2022. The increase was due to the purchase of stock required upon acquiring new FHLB borrowings.

Other assets increased $23.7 million, or 8.3%, to $308.4 million at December 31, 2023 from $284.8 million at December 31, 2022, primarily due to a $15.1 million increase in the Company's pension plan balance, as the return on plan assets outpaced the growth in the plan’s obligations, and a $10.0 million increase in a low income housing tax credit asset.

Total liabilities increased $250.7 million, or 2.7%, to $9.6 billion at December 31, 2023 from $9.4 billion at December 31, 2022. The increase was primarily attributable to an increase in borrowings of $401.6 million, or 35.6%, partially offset by a decrease in total deposits of $154.6 million, or 1.9%. The $401.6 million increase in borrowings was primarily driven by a net increase in long-term borrowings of $494.5 million, partially offset by a decrease in short-term borrowing of $93.2 million. The decrease in total deposits primarily consisted of decreases in non-interest-bearing and interest-bearing demand deposits and savings and club accounts of $368.8 million, $626.4 million, and $213.4 million, respectively, partially offset by increases in money market accounts of $537.0 million and certificates of deposit of $517.0 million. The Bank has priced select money market and certificates of deposit accounts very competitively to the market, but there continues to be strong competition for funds from other banks and non-bank investment products.

Total stockholders’ equity decreased $13.3 million, or 1.3%, to $1.0 billion at December 31, 2023 from $1.1 billion December 31, 2022. The decrease in equity was primarily attributable to the repurchase of 4,242,693 shares of common stock at a cost of approximately $80.5 million, or $18.97 per share, under our stock repurchase program, partially offset by net income of $36.1 million, and a decrease of $21.8 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 December 31, 2023 totaled $12.6 million, or 0.16% of total gross loans, as compared to $6.7 million, or 0.09% of total gross loans, at December 31, 2022. The $5.9 million increase in non-performing loans was primarily attributable to an increase in non-performing commercial business loans of $5.7 million and an increase in non-performing one-to-four family real estate loans of $410,000. 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 ten loans at December 31, 2023, including a $3.7 million loan to a technology company. 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 17 loans at December 31, 2023. Non-performing assets as a percentage of total assets totaled 0.12% at December 31, 2023 as compared to 0.06% at December 31, 2022.

For the quarter ended December 31, 2023, net charge-offs totaled $173,000, as compared to $59,000 in net charge-offs recorded for the quarter ended December 31, 2022. For the year ended December 31, 2023, net charge-offs totaled $2.5 million, as compared to $45,000 in net charge-offs recorded for the year ended December 31, 2022.

The Company's allowance for credit losses on loans was $55.1 million, or 0.70% of total gross loans, at December 31, 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 and an increase in qualitative factors, partially offset by a decrease in loan loss rates.

Stock Repurchase Program

During the year ended December 31, 2023, the Company repurchased 4,242,693 shares of common stock at a cost of $80.5 million, or $18.97 per share, and during the quarter ended December 31, 2023, the Company repurchased 138,620 shares of common stock at a cost of $2.2 million, or $15.88 per share. On May 25, 2023, the Company announced that its Board of Directors authorized the Company's sixth stock repurchase program to acquire up to 2,000,000 shares, or approximately 1.9% of the Company's then issued and outstanding common stock. As of January 19, 2024, there are 1,106,841 shares remaining to be repurchased under the existing program. Management has slowed repurchase activity to maintain higher capital and due to the increased value of the stock during the fourth quarter of 2023.

Additional Liquidity, Loan, and Deposit Information

The Company services a diverse retail and commercial deposit base through its 67 branches. With over 215,000 accounts, the average deposit account balance was approximately $36,000 at December 31, 2023.

The Company had uninsured deposits totaling $1.8 billion at both December 31, 2023 and September 30, 2023, excluding municipal deposits of $825.9 million and $810.8 million, respectively, which are collateralized, and intercompany deposits of $3.5 billion and $3.6 billion, respectively.

The Company had uninsured deposits as summarized below:

 

At December 31, 2023

 

At September 30, 2023

 

(Dollars in thousands)

 

 

 

 

Uninsured deposits

$

1,837,083

 

 

$

1,773,116

 

Uninsured deposits to total deposits

 

23.4

%

 

 

23.0

%

 

 

 

 

 

 

 

 

Deposit balances are summarized as follows:

 

At December 31, 2023

 

At September 30, 2023

 

Balance

 

Weighted
Average
Rate

 

Balance

 

Weighted
Average
Rate

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

Non-interest-bearing demand

$

1,437,361

 

%

 

$

1,439,517

 

%

Interest-bearing demand

 

1,966,463

 

2.07

 

 

 

2,001,260

 

1.77

 

Money market accounts

 

1,255,528

 

3.28

 

 

 

1,196,983

 

3.09

 

Savings and club deposits

 

700,348

 

0.48

 

 

 

736,558

 

0.38

 

Certificates of deposit

 

2,486,856

 

3.91

 

 

 

2,328,848

 

3.27

 

Total deposits

$

7,846,556

 

2.31

%

 

$

7,703,166

 

1.97

%

 

 

 

 

 

 

 

 

 

 

 

 

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 December 31, 2023. As of December 31, 2023, the Company had immediate access to approximately $3.0 billion of funding, with additional unpledged loan collateral available to pledge in excess of $1.4 billion. Available sources of liquidity include but are not limited to:

  • Cash and cash equivalents of $423.2 million;

  • Borrowing capacity based on unencumbered collateral pledged at the FHLB totaling $617.2 million;

  • Borrowing capacity based on unencumbered collateral pledged at the Federal Reserve Bank totaling $2.0 billion; and

  • Available correspondent lines of credit of $339.0 million with various third parties.

At December 31, 2023, the Company's non-performing commercial real estate loans totaled $2.7 million, or 0.03%, 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 December 31, 2023

 

(Dollars in thousands)

 

Balance

 

% of
Gross Loans

 

Weighted Average
Loan to
Value Ratio

 

Weighted Average
Debt Service
Coverage

Multifamily Real Estate

$

1,409,187

 

18.0

%

 

62.2

%

 

1.54x

 

 

 

 

 

 

 

 

Owner Occupied Commercial Real Estate

$

485,968

 

6.2

%

 

50.4

%

 

1.95x

 

 

 

 

 

 

 

 

Investor Owned Commercial Real Estate:

 

 

 

 

 

 

 

Retail / Shopping centers

$

489,777

 

6.3

%

 

52.5

%

 

1.51x

Mixed Use

 

312,410

 

4.0

 

 

58.6

 

 

1.52

Industrial / Warehouse

 

400,945

 

5.1

 

 

53.2

 

 

1.73

Non-Medical Office

 

219,284

 

2.8

 

 

51.6

 

 

1.58

Medical Office

 

138,964

 

1.8

 

 

58.9

 

 

1.70

Single Purpose

 

81,780

 

1.0

 

 

56.9

 

 

2.31

Other

 

248,984

 

3.2

 

 

50.2

 

 

1.80

Total

$

1,892,144

 

24.2

%

 

53.9

%

 

1.65

 

 

 

 

 

 

 

 

Total Multifamily and Commercial Real Estate Loans

$

3,787,299

 

48.4

%

 

56.6

%

 

1.65x

 

 

 

 

 

 

 

 

 

 

 

Annual Meeting of Stockholders

On January 25, 2024, the Company also announced that its annual meeting of stockholders will be held on June 6, 2024.

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; 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 SUBSIDIARIES

Consolidated Statements of Financial Condition

(In thousands)

 

 

December 31,

 

 

2023

 

 

2022

Assets

(Unaudited)

 

 

Cash and due from banks

$

423,140

 

$

179,097

Short-term investments

 

109

 

 

131

Total cash and cash equivalents

 

423,249

 

 

179,228

 

 

 

 

Debt securities available for sale, at fair value

 

1,093,557

 

 

1,328,634

Debt securities held to maturity, at amortized cost (fair value of $357,177, and $370,391 at December 31, 2023 and 2022, respectively)

 

401,154

 

 

421,523

Equity securities, at fair value

 

4,079

 

 

3,384

Federal Home Loan Bank stock

 

81,022

 

 

58,114

 

 

 

 

Loans receivable

 

7,874,537

 

 

7,677,564

Less: allowance for credit losses

 

55,096

 

 

52,803

Loans receivable, net

 

7,819,441

 

 

7,624,761

 

 

 

 

Accrued interest receivable

 

39,345

 

 

33,898

Office properties and equipment, net

 

83,577

 

 

83,877

Bank-owned life insurance

 

268,362

 

 

264,854

Goodwill and intangible assets

 

123,350

 

 

125,142

Other assets

 

308,432

 

 

284,754

Total assets

$

10,645,568

 

$

10,408,169

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

Liabilities:

 

 

 

Deposits

$

7,846,556

 

$

8,001,159

Borrowings

 

1,528,695

 

 

1,127,047

Advance payments by borrowers for taxes and insurance

 

43,509

 

 

45,460

Accrued expenses and other liabilities

 

186,473

 

 

180,908

Total liabilities

 

9,605,233

 

 

9,354,574

 

 

 

 

Stockholders' equity:

 

 

 

Total stockholders' equity

 

1,040,335

 

 

1,053,595

Total liabilities and stockholders' equity

$

10,645,568

 

$

10,408,169

 

 

 

 


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(In thousands, except share and per share data)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2023

 

 

2022

 

 

 

2023

 

 

 

2022

 

Interest income:

(Unaudited)

 

(Unaudited)

 

 

Loans receivable

$

91,744

 

$

76,159

 

 

$

343,770

 

 

$

263,559

 

Debt securities available for sale and equity securities

 

7,077

 

 

8,480

 

 

 

28,120

 

 

 

34,221

 

Debt securities held to maturity

 

2,370

 

 

2,471

 

 

 

9,708

 

 

 

9,694

 

Federal funds and interest-earning deposits

 

4,828

 

 

229

 

 

 

8,188

 

 

 

474

 

Federal Home Loan Bank stock dividends

 

1,531

 

 

593

 

 

 

5,192

 

 

 

1,722

 

Total interest income

 

107,550

 

 

87,932

 

 

 

394,978

 

 

 

309,670

 

Interest expense:

 

 

 

 

 

 

 

Deposits

 

43,429

 

 

11,552

 

 

 

125,162

 

 

 

27,878

 

Borrowings

 

18,782

 

 

7,987

 

 

 

63,940

 

 

 

15,015

 

Total interest expense

 

62,211

 

 

19,539

 

 

 

189,102

 

 

 

42,893

 

 

 

 

 

 

 

 

 

Net interest income

 

45,339

 

 

68,393

 

 

 

205,876

 

 

 

266,777

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

1,155

 

 

971

 

 

 

4,787

 

 

 

5,485

 

 

 

 

 

 

 

 

 

Net interest income after provision for credit losses

 

44,184

 

 

67,422

 

 

 

201,089

 

 

 

261,292

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

Demand deposit account fees

 

1,330

 

 

1,164

 

 

 

5,145

 

 

 

5,293

 

Bank-owned life insurance

 

4,456

 

 

1,892

 

 

 

10,126

 

 

 

7,393

 

Title insurance fees

 

560

 

 

635

 

 

 

2,400

 

 

 

3,423

 

Loan fees and service charges

 

1,144

 

 

996

 

 

 

4,510

 

 

 

3,924

 

(Loss) gain on securities transactions

 

 

 

 

 

 

(10,847

)

 

 

210

 

Change in fair value of equity securities

 

446

 

 

(69

)

 

 

695

 

 

 

(401

)

Gain on sale of loans

 

154

 

 

69

 

 

 

1,214

 

 

 

178

 

Other non-interest income

 

3,159

 

 

2,839

 

 

 

14,136

 

 

 

10,380

 

Total non-interest income

 

11,249

 

 

7,526

 

 

 

27,379

 

 

 

30,400

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

Compensation and employee benefits

 

28,463

 

 

30,533

 

 

 

120,846

 

 

 

116,926

 

Occupancy

 

5,590

 

 

5,751

 

 

 

22,927

 

 

 

22,589

 

Federal deposit insurance premiums

 

5,015

 

 

669

 

 

 

8,639

 

 

 

2,591

 

Advertising

 

498

 

 

650

 

 

 

2,805

 

 

 

2,865

 

Professional fees

 

3,083

 

 

2,431

 

 

 

9,824

 

 

 

8,158

 

Data processing and software expenses

 

4,154

 

 

3,326

 

 

 

15,039

 

 

 

13,362

 

Merger-related expenses

 

326

 

 

134

 

 

 

606

 

 

 

2,810

 

Loss on extinguishment of debt

 

300

 

 

 

 

 

300

 

 

 

 

Other non-interest expense

 

570

 

 

1,014

 

 

 

1,431

 

 

 

5,515

 

Total non-interest expense

 

47,999

 

 

44,508

 

 

 

182,417

 

 

 

174,816

 

 

 

 

 

 

 

 

 

Income before income tax expense

 

7,434

 

 

30,440

 

 

 

46,051

 

 

 

116,876

 

 

 

 

 

 

 

 

 

Income tax expense

 

865

 

 

8,549

 

 

 

9,965

 

 

 

30,703

 

 

 

 

 

 

 

 

 

Net income

$

6,569

 

$

21,891

 

 

$

36,086

 

 

$

86,173

 

 

 

 

 

 

 

 

 

Earnings per share-basic

$

0.06

 

$

0.21

 

 

$

0.35

 

 

$

0.82

 

Earnings per share-diluted

$

0.06

 

$

0.21

 

 

$

0.35

 

 

$

0.81

 

Weighted average shares outstanding-basic

 

101,656,890

 

 

105,997,676

 

 

 

102,656,388

 

 

 

105,580,823

 

Weighted average shares outstanding-diluted

 

101,817,194

 

 

106,631,357

 

 

 

102,894,969

 

 

 

106,193,161

 

 

 

 

 

 

 

 

 



COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Average Balances/Yields

 

 

For the Three Months Ended December 31,

 

 

2023

 

 

 

2022

 

 

Average
Balance

 

Interest and
Dividends

 

Yield / Cost

 

Average
Balance

 

Interest and
Dividends

 

Yield / Cost

 

(Dollars in thousands)

Interest-earnings assets:

 

 

 

 

 

 

 

 

 

 

 

Loans

$

7,816,272

 

 

$

91,744

 

4.66

%

 

$

7,458,467

 

 

$

76,159

 

4.05

%

Securities

 

1,453,863

 

 

 

9,447

 

2.58

%

 

 

1,774,890

 

 

 

10,951

 

2.45

%

Other interest-earning assets

 

447,369

 

 

 

6,359

 

5.64

%

 

 

81,592

 

 

 

822

 

4.00

%

Total interest-earning assets

 

9,717,504

 

 

 

107,550

 

4.39

%

 

 

9,314,949

 

 

 

87,932

 

3.75

%

Non-interest-earning assets

 

854,857

 

 

 

 

 

 

 

842,571

 

 

 

 

 

Total assets

$

10,572,361

 

 

 

 

 

 

$

10,157,520

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand

$

2,000,406

 

 

$

12,308

 

2.44

%

 

$

2,684,095

 

 

$

4,882

 

0.72

%

Money market accounts

 

1,119,290

 

 

 

8,962

 

3.18

%

 

 

709,591

 

 

 

1,244

 

0.70

%

Savings and club deposits

 

714,664

 

 

 

846

 

0.47

%

 

 

932,732

 

 

 

121

 

0.05

%

Certificates of deposit

 

2,416,773

 

 

 

21,313

 

3.50

%

 

 

1,937,489

 

 

 

5,305

 

1.09

%

Total interest-bearing deposits

 

6,251,133

 

 

 

43,429

 

2.76

%

 

 

6,263,907

 

 

 

11,552

 

0.73

%

FHLB advances

 

1,494,794

 

 

 

18,592

 

4.93

%

 

 

821,141

 

 

 

7,558

 

3.65

%

Notes payable

 

916

 

 

 

23

 

9.96

%

 

 

29,885

 

 

 

297

 

3.94

%

Junior subordinated debentures

 

7,013

 

 

 

167

 

9.45

%

 

 

6,992

 

 

 

130

 

7.38

%

Other borrowings

 

 

 

 

 

%

 

 

163

 

 

 

2

 

4.87

%

Total borrowings

 

1,502,723

 

 

 

18,782

 

4.96

%

 

 

858,181

 

 

 

7,987

 

3.69

%

Total interest-bearing liabilities

 

7,753,856

 

 

$

62,211

 

3.18

%

 

 

7,122,088

 

 

$

19,539

 

1.09

%

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

1,441,005

 

 

 

 

 

 

 

1,759,372

 

 

 

 

 

Other non-interest-bearing liabilities

 

247,545

 

 

 

 

 

 

 

244,504

 

 

 

 

 

Total liabilities

 

9,442,406

 

 

 

 

 

 

 

9,125,964

 

 

 

 

 

Total stockholders' equity

 

1,129,955

 

 

 

 

 

 

 

1,031,556

 

 

 

 

 

Total liabilities and stockholders' equity

$

10,572,361

 

 

 

 

 

 

$

10,157,520

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

$

45,339

 

 

 

 

 

$

68,393

 

 

Interest rate spread

 

 

 

 

1.21

%

 

 

 

 

 

2.66

%

Net interest-earning assets

$

1,963,648

 

 

 

 

 

 

$

2,192,861

 

 

 

 

 

Net interest margin

 

 

 

 

1.85

%

 

 

 

 

 

2.91

%

Ratio of interest-earning assets to interest-bearing liabilities

 

125.32

%

 

 

 

 

 

 

130.79

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Average Balances/Yields

 

 

For the Years Ended December 31,

 

 

2023

 

 

 

2022

 

 

Average
Balance

 

Interest and
Dividends

 

Yield / Cost

 

Average
Balance

 

Interest and
Dividends

 

Yield / Cost

 

(Dollars in thousands)

Interest-earnings assets:

 

 

 

 

 

 

 

 

 

 

 

Loans

$

7,748,096

 

 

$

343,770

 

4.44

%

 

$

6,939,419

 

 

$

263,559

 

3.80

%

Securities

 

1,540,726

 

 

 

37,828

 

2.46

%

 

 

1,943,459

 

 

 

43,915

 

2.26

%

Other interest-earning assets

 

241,520

 

 

 

13,380

 

5.54

%

 

 

76,500

 

 

 

2,196

 

2.87

%

Total interest-earning assets

 

9,530,342

 

 

$

394,978

 

4.14

%

 

 

8,959,378

 

 

$

309,670

 

3.46

%

Non-interest-earning assets

 

840,215

 

 

 

 

 

 

 

782,444

 

 

 

 

 

Total assets

$

10,370,557

 

 

 

 

 

 

$

9,741,822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand

$

2,183,333

 

 

$

37,774

 

1.73

%

 

$

2,685,675

 

 

$

11,307

 

0.42

%

Money market accounts

 

951,174

 

 

 

24,296

 

2.55

%

 

 

695,849

 

 

 

2,593

 

0.37

%

Savings and club deposits

 

793,303

 

 

 

2,231

 

0.28

%

 

 

922,916

 

 

 

466

 

0.05

%

Certificates of deposit

 

2,229,042

 

 

 

60,861

 

2.73

%

 

 

1,834,876

 

 

 

13,512

 

0.74

%

Total interest-bearing deposits

 

6,156,852

 

 

 

125,162

 

2.03

%

 

 

6,139,316

 

 

 

27,878

 

0.45

%

FHLB advances

 

1,315,401

 

 

 

62,398

 

4.74

%

 

 

547,158

 

 

 

13,449

 

2.46

%

Notes payable

 

22,780

 

 

 

918

 

4.03

%

 

 

30,084

 

 

 

1,194

 

3.97

%

Junior subordinated debentures

 

7,054

 

 

 

624

 

8.85

%

 

 

6,984

 

 

 

370

 

5.30

%

Other borrowings

 

 

 

 

 

%

 

 

55

 

 

 

2

 

3.64

%

Total borrowings

 

1,345,235

 

 

 

63,940

 

4.75

%

 

 

584,281

 

 

 

15,015

 

2.57

%

Total interest-bearing liabilities

 

7,502,087

 

 

$

189,102

 

2.52

%

 

 

6,723,597

 

 

$

42,893

 

0.64

%

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

1,539,354

 

 

 

 

 

 

 

1,742,607

 

 

 

 

 

Other non-interest-bearing liabilities

 

231,018

 

 

 

 

 

 

 

210,280

 

 

 

 

 

Total liabilities

 

9,272,459

 

 

 

 

 

 

 

8,676,484

 

 

 

 

 

Total stockholders' equity

 

1,098,098

 

 

 

 

 

 

 

1,065,338

 

 

 

 

 

Total liabilities and stockholders' equity

$

10,370,557

 

 

 

 

 

 

$

9,741,822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

$

205,876

 

 

 

 

 

$

266,777

 

 

Interest rate spread

 

 

 

 

1.62

%

 

 

 

 

 

2.82

%

Net interest-earning assets

$

2,028,255

 

 

 

 

 

 

$

2,235,781

 

 

 

 

 

Net interest margin

 

 

 

 

2.16

%

 

 

 

 

 

2.98

%

Ratio of interest-earning assets to interest-bearing liabilities

 

127.04

%

 

 

 

 

 

 

133.25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Components of Net Interest Rate Spread and Margin

 

 

Average Yields/Costs by Quarter

 

December 31,
2023

 

September 30,
2023

 

June 30,
2023

 

March 31,
2023

 

December 31,
2022

Yield on interest-earning assets:

 

 

 

 

 

 

 

 

 

Loans

4.66

%

 

4.47

%

 

4.36

%

 

4.24

%

 

4.05

%

Securities

2.58

 

 

2.37

 

 

2.33

 

 

2.53

 

 

2.45

 

Other interest-earning assets

5.64

 

 

5.91

 

 

6.08

 

 

4.22

 

 

4.00

 

Total interest-earning assets

4.39

%

 

4.17

%

 

4.07

%

 

3.93

%

 

3.75

%

 

 

 

 

 

 

 

 

 

 

Cost of interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

Total interest-bearing deposits

2.76

%

 

2.31

%

 

1.90

%

 

1.13

%

 

0.73

%

Total borrowings

4.96

 

 

4.70

 

 

4.72

 

 

4.60

 

 

3.69

 

Total interest-earning liabilities

3.18

%

 

2.70

%

 

2.42

%

 

1.74

%

 

1.09

%

 

 

 

 

 

 

 

 

 

 

Interest rate spread

1.21

%

 

1.47

%

 

1.65

%

 

2.19

%

 

2.66

%

Net interest margin

1.85

%

 

2.06

%

 

2.17

%

 

2.58

%

 

2.91

%

 

 

 

 

 

 

 

 

 

 

Ratio of interest-earning assets to interest-bearing liabilities

125.32

%

 

127.46

%

 

126.86

%

 

128.60

%

 

130.79

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Selected Financial Highlights

 

 

December 31,
2023

 

September 30,
2023

 

June 30,
2023

 

March 31,
2023

 

December 31,
2022

 

 

 

 

 

 

 

 

 

 

SELECTED FINANCIAL RATIOS (1):

 

 

 

 

 

 

 

 

 

Return on average assets

0.25

%

 

0.36

%

 

0.06

%

 

0.73

%

 

0.86

%

Core return on average assets

0.38

%

 

0.36

%

 

0.46

%

 

0.77

%

 

0.87

%

Return on average equity

2.31

%

 

3.23

%

 

0.61

%

 

7.20

%

 

8.42

%

Core return on average equity

3.55

%

 

3.24

%

 

4.29

%

 

7.59

%

 

8.52

%

Core return on average tangible equity

3.99

%

 

3.64

%

 

4.89

%

 

8.61

%

 

9.70

%

Interest rate spread

1.21

%

 

1.47

%

 

1.65

%

 

2.19

%

 

2.66

%

Net interest margin

1.85

%

 

2.06

%

 

2.17

%

 

2.58

%

 

2.91

%

Non-interest income to average assets

0.42

%

 

0.33

%

 

(0.02

)%

 

0.31

%

 

0.29

%

Non-interest expense to average assets

1.80

%

 

1.67

%

 

1.85

%

 

1.71

%

 

1.74

%

Efficiency ratio

84.82

%

 

75.12

%

 

94.07

%

 

63.68

%

 

58.63

%

Core efficiency ratio

76.93

%

 

75.09

%

 

75.68

%

 

62.35

%

 

58.26

%

Average interest-earning assets to average interest-bearing liabilities

125.32

%

 

127.46

%

 

126.86

%

 

128.60

%

 

130.79

%

Net charge-offs to average outstanding loans

0.01

%

 

0.09

%

 

0.03

%

 

0.01

%

 

%

 

 

 

 

 

 

 

 

 

 

(1) Ratios for the three months are annualized when appropriate.

 


ASSET QUALITY:

 

 

 

 

 

 

 

 

 

 

December 31,
2023

 

September 30,
2023

 

June 30,
2023

 

March 31,
2023

 

December 31,
2022

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

Non-accrual loans

$

12,618

 

 

$

15,150

 

 

$

11,091

 

 

$

6,610

 

 

$

6,721

 

90+ and still accruing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans

 

12,618

 

 

 

15,150

 

 

 

11,091

 

 

 

6,610

 

 

 

6,721

 

Real estate owned

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing assets

$

12,618

 

 

$

15,150

 

 

$

11,091

 

 

$

6,610

 

 

$

6,721

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans to total gross loans

 

0.16

%

 

 

0.19

%

 

 

0.14

%

 

 

0.09

%

 

 

0.09

%

Non-performing assets to total assets

 

0.12

%

 

 

0.15

%

 

 

0.11

%

 

 

0.06

%

 

 

0.06

%

Allowance for credit losses on loans ("ACL")

$

55,096

 

 

$

54,113

 

 

$

53,456

 

 

$

52,873

 

 

$

52,803

 

ACL to total non-performing loans

 

436.65

%

 

 

357.18

%

 

 

481.98

%

 

 

799.89

%

 

 

785.64

%

ACL to gross loans

 

0.70

%

 

 

0.69

%

 

 

0.69

%

 

 

0.68

%

 

 

0.69

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


LOAN DATA:

 

 

 

 

 

 

 

 

 

 

December 31,
2023

 

September 30,
2023

 

June 30,
2023

 

March 31,
2023

 

December 31,
2022

 

(In thousands)

 

Real estate loans:

 

 

 

 

 

 

 

 

 

One-to-four family

$

2,792,833

 

 

$

2,791,939

 

 

$

2,789,269

 

 

$

2,860,964

 

 

$

2,860,184

 

Multifamily

 

1,409,187

 

 

 

1,417,233

 

 

 

1,376,999

 

 

 

1,315,143

 

 

 

1,239,207

 

Commercial real estate

 

2,377,077

 

 

 

2,374,488

 

 

 

2,386,896

 

 

 

2,393,918

 

 

 

2,413,394

 

Construction

 

443,094

 

 

 

390,940

 

 

 

378,988

 

 

 

374,434

 

 

 

336,553

 

Commercial business loans

 

533,041

 

 

 

546,750

 

 

 

505,524

 

 

 

516,682

 

 

 

497,469

 

Consumer loans:

 

 

 

 

 

 

 

 

 

Home equity loans and advances

 

266,632

 

 

 

267,016

 

 

 

269,310

 

 

 

271,620

 

 

 

274,302

 

Other consumer loans

 

2,801

 

 

 

2,586

 

 

 

2,552

 

 

 

2,322

 

 

 

3,425

 

Total gross loans

 

7,824,665

 

 

 

7,790,952

 

 

 

7,709,538

 

 

 

7,735,083

 

 

 

7,624,534

 

Purchased credit deteriorated ("PCD") loans

 

15,089

 

 

 

15,228

 

 

 

16,107

 

 

 

16,245

 

 

 

17,059

 

Net deferred loan costs, fees and purchased premiums and discounts

 

34,783

 

 

 

34,360

 

 

 

34,791

 

 

 

35,744

 

 

 

35,971

 

Allowance for credit losses

 

(55,096

)

 

 

(54,113

)

 

 

(53,456

)

 

 

(52,873

)

 

 

(52,803

)

Loans receivable, net

$

7,819,441

 

 

$

7,786,427

 

 

$

7,706,980

 

 

$

7,734,199

 

 

$

7,624,761

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


CAPITAL RATIOS:

 

 

 

 

December 31,

 

2023 (1)

 

2022

 

Company:

 

 

 

Total capital (to risk-weighted assets)

14.08

%

 

15.39

%

Tier 1 capital (to risk-weighted assets)

13.32

%

 

14.59

%

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

13.23

%

 

14.49

%

Tier 1 capital (to adjusted total assets)

10.04

%

 

10.68

%

 

 

 

 

Columbia Bank:

 

 

 

Total capital (to risk-weighted assets)

14.02

%

 

14.12

%

Tier 1 capital (to risk-weighted assets)

13.22

%

 

13.32

%

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

13.22

%

 

13.32

%

Tier 1 capital (to adjusted total assets)

9.48

%

 

9.74

%

 

 

 

 

Freehold Bank:

 

 

 

Total capital (to risk-weighted assets)

22.49

%

 

22.92

%

Tier 1 capital (to risk-weighted assets)

21.81

%

 

22.19

%

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

21.81

%

 

22.19

%

Tier 1 capital (to adjusted total assets)

15.27

%

 

15.19

%

 

 

 

 

(1) Estimated ratios at December 31, 2023.

 

 

 

 

 

 

 


Reconciliation of GAAP to Non-GAAP Financial Measures

 

 

 

 

Book and Tangible Book Value per Share

 

December 31,

 

 

2023

 

 

 

2022

 

 

(Dollars in thousands)

Total stockholders' equity

$

1,040,335

 

 

$

1,053,595

 

Less: goodwill

 

(110,715

)

 

 

(110,715

)

Less: core deposit intangible

 

(11,155

)

 

 

(13,505

)

Total tangible stockholders' equity

$

918,465

 

 

$

929,375

 

 

 

 

 

Shares outstanding

 

104,918,905

 

 

 

108,970,476

 

 

 

 

 

Book value per share

$

9.92

 

 

$

9.67

 

Tangible book value per share

$

8.75

 

 

$

8.53

 

 

 

 

 

 

 

 

 


Reconciliation of Core Net Income

 

Three Months Ended December 31,

 

Years Ended December 31,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

(In thousands)

Net income

$

6,569

 

$

21,891

 

$

36,086

 

$

86,173

 

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

 

 

 

 

 

9,249

 

 

(156

)

Less: insurance settlement, net of tax

 

 

 

 

 

 

 

(486

)

Add: FDIC special assessment, net of tax

 

3,009

 

 

 

 

3,009

 

 

 

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

 

 

 

 

 

1,390

 

 

 

Add: merger-related expenses, net of tax

 

288

 

 

168

 

 

529

 

 

2,210

 

Add: loss on extinguishment of debt, net of tax

 

265

 

 

 

 

265

 

 

 

Add: litigation expense, net of tax

 

 

 

46

 

 

262

 

 

2,913

 

Add: branch closure expense, net of tax

 

 

 

58

 

 

 

 

199

 

Core net income

$

10,131

 

$

22,163

 

$

50,790

 

$

90,853

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Return on Average Assets

 

Three Months Ended December 31,

 

Years Ended December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

(Dollars in thousands)

Net income

$

6,569

 

 

$

21,891

 

 

$

36,086

 

 

$

86,173

 

 

 

 

 

 

 

 

 

Average assets

$

10,572,361

 

 

$

10,157,520

 

 

$

10,370,557

 

 

$

9,741,822

 

 

 

 

 

 

 

 

 

Return on average assets

 

0.25

%

 

 

0.86

%

 

 

0.35

%

 

 

0.88

%

 

 

 

 

 

 

 

 

Core net income

$

10,131

 

 

$

22,163

 

 

$

50,790

 

 

$

90,853

 

 

 

 

 

 

 

 

 

Core return on average assets

 

0.38

%

 

 

0.87

%

 

 

0.49

%

 

 

0.93

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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

 

 

 

 

 

 

 

 

 

 

Return on Average Equity

 

Three Months Ended December 31,

 

Years Ended December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

(Dollars in thousands)

Total average stockholders' equity

$

1,129,955

 

 

$

1,031,556

 

 

$

1,098,098

 

 

$

1,065,338

 

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

 

 

 

 

 

 

 

9,249

 

 

 

(156

)

Less: insurance settlement, net of tax

 

 

 

 

 

 

 

 

 

 

(486

)

Add: FDIC special assessment, net of tax

 

3,009

 

 

 

 

 

 

3,009

 

 

 

 

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

 

 

 

 

 

 

 

1,390

 

 

 

 

Add: merger-related expenses, net of tax

 

288

 

 

 

168

 

 

 

529

 

 

 

2,210

 

Add: loss on extinguishment of debt, net of tax

 

265

 

 

 

 

 

 

265

 

 

 

 

Add: litigation expenses, net of tax

 

 

 

 

46

 

 

 

262

 

 

 

2,913

 

Add: branch closure expense, net of tax

 

 

 

 

58

 

 

 

 

 

 

199

 

Core average stockholders' equity

$

1,133,517

 

 

$

1,031,828

 

 

$

1,112,802

 

 

$

1,070,018

 

 

 

 

 

 

 

 

 

Return on average equity

 

2.31

%

 

 

8.42

%

 

 

3.29

%

 

 

8.09

%

 

 

 

 

 

 

 

 

Core return on core average equity

 

3.55

%

 

 

8.52

%

 

 

4.56

%

 

 

8.49

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Return on Average Tangible Equity

 

Three Months Ended December 31,

 

Years Ended December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

(Dollars in thousands)

Total average stockholders' equity

$

1,129,955

 

 

$

1,031,556

 

 

$

1,098,098

 

 

$

1,065,338

 

Less: average goodwill

 

(110,715

)

 

 

(111,115

)

 

 

(110,715

)

 

 

(103,477

)

Less: average core deposit intangible

 

(11,524

)

 

 

(13,905

)

 

 

(12,398

)

 

 

(11,352

)

Total average tangible stockholders' equity

$

1,007,716

 

 

$

906,536

 

 

$

974,985

 

 

$

950,509

 

 

 

 

 

 

 

 

 

Core return on average tangible equity

 

3.99

%

 

 

9.70

%

 

 

5.21

%

 

 

9.56

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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

 

 

 

 

 

 

 

 

 

 

Efficiency Ratios

 

Three Months Ended December 31,

 

Years Ended December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

(Dollars in thousands)

Net interest income

$

45,339

 

 

$

68,393

 

 

$

205,876

 

 

$

266,777

 

Non-interest income

 

11,249

 

 

 

7,526

 

 

 

27,379

 

 

 

30,400

 

Total income

$

56,588

 

 

$

75,919

 

 

$

233,255

 

 

$

297,177

 

 

 

 

 

 

 

 

 

Non-interest expense

$

47,999

 

 

$

44,508

 

 

$

182,417

 

 

$

174,816

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

84.82

%

 

 

58.63

%

 

 

78.20

%

 

 

58.83

%

 

 

 

 

 

 

 

 

Non-interest income

$

11,249

 

 

$

7,526

 

 

$

27,379

 

 

$

30,400

 

Add/less: loss (gain) on securities transactions

 

 

 

 

 

 

 

10,847

 

 

 

(210

)

Less: insurance settlement

 

 

 

 

 

 

 

 

 

 

(650

)

Core non-interest income

$

11,249

 

 

$

7,526

 

 

$

38,226

 

 

$

29,540

 

 

 

 

 

 

 

 

 

Non-interest expense

$

47,999

 

 

$

44,508

 

 

$

182,417

 

 

$

174,816

 

Less: FDIC special assessment

 

(3,840

)

 

 

 

 

 

(3,840

)

 

 

 

Less: severance expense from reduction in workforce

 

 

 

 

 

 

 

(1,605

)

 

 

 

Less: merger-related expenses

 

(326

)

 

 

(134

)

 

 

(606

)

 

 

(2,810

)

Less: loss on extinguishment of debt

 

(300

)

 

 

 

 

 

(300

)

 

 

 

Less: litigation expense

 

 

 

 

(62

)

 

 

(317

)

 

 

(3,916

)

Less: branch closure expense

 

 

 

 

(78

)

 

 

 

 

 

(266

)

Core non-interest expense

$

43,533

 

 

$

44,234

 

 

$

175,749

 

 

$

167,824

 

 

 

 

 

 

 

 

 

Core efficiency ratio

 

76.93

%

 

 

58.26

%

 

 

72.00

%

 

 

56.64

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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