Columbia Financial, Inc. (the “Company”) (NASDAQ: CLBK), the
mid-tier holding company for Columbia Bank ("Columbia"), reported a
net loss of $21.2 million, or $0.21 per basic and diluted share,
for the quarter ended December 31, 2024, as compared to net
income of $6.6 million, or $0.06 per basic and diluted share, for
the quarter ended December 31, 2023. The net loss for the
quarter ended December 31, 2024 reflected lower non-interest
income mainly due to the previously disclosed balance sheet
repositioning transaction. As part of the Company’s strategy to
improve future earnings and expand its net interest margin, the
Company sold $352.3 million of debt securities available for sale
during the fourth quarter of 2024, and the proceeds from the sale
were used to fund loan growth of $72.9 million, purchase $78.1
million of higher yielding debt securities and prepay $170.0
million of higher cost borrowings. This balance sheet repositioning
transaction resulted in a pre-tax loss on the sale of securities
and extinguishment of debt of $37.9 million. The quarter ended
December 31, 2024 results also reflected a higher provision
for credit losses, partially offset by higher net interest income,
mainly due to an increase in interest income, lower non-interest
expense and lower income tax expense. For the quarter ended
December 31, 2024, the Company reported core net income of
$11.4 million, an increase of $1.3 million, or 12.4%, compared to
core net income of $10.1 million for the quarter ended
December 31, 2023. The benefit of the balance sheet
repositioning transaction was modest during the fourth quarter, as
the settlement of the transaction occurred late in the quarter.
(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, 2024, the
Company reported a net loss of $11.7 million, or $0.11 per basic
and diluted share, as compared to net income of $36.1 million, or
$0.35 per basic and diluted share, for the year ended
December 31, 2023. The year ended December 31, 2024
reflected lower net interest income, mainly due to an increase in
interest expense, higher provision for credit losses and lower
non-interest income due to loss on securities transactions
resulting from the balance sheet repositioning transaction
described above, partially offset by lower non-interest expense and
lower income tax expense. Non-interest income for the year ended
December 31, 2024 included a $34.6 million loss on the sale of
securities and non-interest expense included a $3.4 million loss on
extinguishment of debt.
Thomas J. Kemly, President and Chief Executive
Officer commented: "The Company maintained a strong balance sheet
and capital position, which will allow us to benefit from an
improving operating environment. Additionally, our fourth quarter
repositioning strategy should result in improved future earnings
and net interest margin. We will continue to examine and implement
prudent strategies that we believe will build a foundation for the
future success of the Company and increased profitability."
Results of Operations for the Three
Months Ended December 31, 2024
and December 31, 2023
A net loss of $21.2 million was recorded for the
quarter ended December 31, 2024, a decrease of $27.8 million,
compared to net income of $6.6 million for the quarter ended
December 31, 2023. The decrease in net income was primarily
attributable to a $35.0 million decrease in non-interest income,
and a $1.7 million increase in provision for credit losses,
partially offset by a $1.1 million increase in net interest income,
a $1.4 million decrease in non-interest expense, and a $6.4 million
decrease in income tax expense.
Net interest income was $46.4 million for the
quarter ended December 31, 2024, an increase of $1.1 million,
or 2.4%, from $45.3 million for the quarter ended December 31,
2023. The increase in net interest income was primarily
attributable to a $6.1 million increase in interest income
partially offset by a $5.0 million increase in interest expense on
deposits and borrowings. 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.
Market interest rates increased 100 basis points throughout the
2023 period and were subsequently reduced 100 basis points during
the last four months of 2024. The increase in interest expense on
deposits was driven by the higher rate environment coupled with
intense competition for deposits in the market and the repricing of
existing deposits into higher cost products throughout the majority
of the 2024 fiscal year. However, during the fourth quarter,
competitive pressures eased, and deposits became easier to attract,
resulting in a reduced cost of deposits. The decrease in interest
expense on borrowings was also impacted by the lower interest rates
for new borrowings, along with a decrease in the average balance of
borrowings. Prepayment penalties, which are included in interest
income on loans, totaled $84,000 for the quarter ended
December 31, 2024, compared to $419,000 for the quarter ended
December 31, 2023.
The average yield on loans for the quarter ended
December 31, 2024 increased 22 basis points to 4.88%, as
compared to 4.66% for the quarter ended December 31, 2023, as
interest income was influenced by the interest rate increases that
occurred in 2023 and loan growth. The average yield on securities
for the quarter ended December 31, 2024 increased 41 basis
points to 2.99%, as compared to 2.58% for the quarter ended
December 31, 2023, as new securities purchased during 2024
were at higher interest rates. The average yield on other
interest-earning assets for the quarter ended December 31,
2024 increased 36 basis points to 6.00%, as compared to 5.64% for
the quarter ended December 31, 2023, due to an increase in the
average balance of higher yielding Federal Home Loan Bank stock, as
compared to average cash balances, which decreased in the 2024
period.
Total interest expense was $67.2 million for the
quarter ended December 31, 2024, an increase of $5.0 million,
or 8.0%, from $62.2 million for the quarter ended December 31,
2023. The increase in interest expense was primarily attributable
to a 37 basis point increase in the average cost of
interest-bearing deposits, coupled with an increase in the average
balance of interest-bearing deposits, partially offset by a 31
basis point decrease in the average cost of borrowings, coupled
with a decrease in the average balance of borrowings. Interest
expense on deposits increased $8.5 million or 19.6%, and interest
expense on borrowings decreased $3.5 million, or 18.8%.
The Company's net interest margin for the
quarter ended December 31, 2024 increased 3 basis points to
1.88%, when compared to 1.85% for the quarter ended
December 31, 2023. The weighted average yield on
interest-earning assets increased 22 basis points to 4.61% for the
quarter ended December 31, 2024 as compared to 4.39% for the
quarter ended December 31, 2023. The average cost of
interest-bearing liabilities increased 20 basis points to 3.38% for
the quarter ended December 31, 2024 as compared to 3.18% for
the quarter ended December 31, 2023. The net interest margin
increased for the quarter ended December 31, 2024, as the
increase in the average yield on interest-earning assets slightly
outweighed the average cost of interest-bearing liabilities.
The provision for credit losses for the quarter
ended December 31, 2024 was $2.9 million, an increase of $1.7
million, from $1.2 million for the quarter ended December 31,
2023. The increase in the allowance for credit losses for loans was
primarily due to net charge-offs totaling $1.4 million and an
increase in loan performance qualitative factors.
Non-interest income was $(23.7) million for the
quarter ended December 31, 2024, a decrease of $35.0 million,
or 310.8%, from $11.2 million for the quarter ended
December 31, 2023. The decrease was primarily attributable to
the loss on securities transactions of $34.6 million resulting from
the balance sheet repositioning transaction and a decrease in
bank-owned life insurance income of $2.4 million, attributable to
death benefits in 2023, partially offset by a $1.7 million increase
in the fair value of Federal Home Loan Mortgage Corporation and
Federal National Mortgage Association preferred stock included in
equity securities.
Non-interest expense was $46.6 million for the
quarter ended December 31, 2024, a decrease of $1.4 million,
or 2.9%, from $48.0 million for the quarter ended December 31,
2023. The decrease was primarily attributable to a decrease in
compensation and employee benefits expense of $1.9 million and a
decrease in federal deposit insurance premiums of $3.2 million,
partially offset by an increase in loss on the extinguishment of
debt of $3.1 million. The decrease in compensation and employee
benefits expense was the result of lower incentive compensation and
a workforce reduction related to cost cutting strategies
implemented during 2023 and 2024. The decrease in federal deposit
insurance premiums was due to the 2023 quarter including a one-time
Federal Deposit Insurance Corporation special assessment recorded
in December 2023. During the quarter ended December 31, 2024,
the Company prepaid $200.0 million in FHLB borrowings, inclusive of
the $170.0 million as part of a balance sheet repositioning
transaction which resulted in a $3.4 million loss on the
extinguishment of debt.
Income tax benefit was $5.5 million for the
quarter ended December 31, 2024, a decrease of $6.4 million,
as compared to income tax expense of $865,000 for the quarter ended
December 31, 2023, mainly due to a decrease in pre-tax income.
The Company's effective tax rate was 20.7% and 11.6% for the
quarters ended December 31, 2024 and 2023, respectively.
Results of Operations for the Years
Ended December 31, 2024
and December 31, 2023
A net loss of $11.7 million was recorded for the
year ended December 31, 2024, a decrease of $47.7 million,
compared to net income of $36.1 million for the year ended
December 31, 2023. The decrease in net income was primarily
attributable to a $27.9 million decrease in net interest income, a
$9.7 million increase in provision for credit losses and a $25.5
million decrease in non-interest income, partially offset by a $1.1
million decrease in non-interest expense, and a $14.2 million
decrease in income tax expense.
Net interest income was $178.0 million for the
year ended December 31, 2024, a decrease of $27.9 million, or
13.5%, from $205.9 million for the year ended December 31,
2023. The decrease in net interest income was primarily
attributable to an $84.3 million increase in interest expense on
deposits and borrowings, partially offset by a $56.4 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 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 along with higher balances. The increase in interest
expense on borrowings was also impacted by the increase in interest
rates for new borrowings along with an increase in the average
balance of borrowings. Prepayment penalties, which are included in
interest income on loans, totaled $960,000 for the year ended
December 31, 2024, compared to $817,000 for the year ended
December 31, 2023.
The average yield on loans for the year ended
December 31, 2024 increased 46 basis points to 4.90%, as
compared to 4.44% for the year ended December 31, 2023, as
interest income increased due to rising rates and loan growth. The
average yield on securities for the year ended December 31,
2024 increased 40 basis points to 2.86%, as compared to 2.46% for
the year ended December 31, 2023 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, 2024 increased 73 basis points
to 6.27%, as compared to 5.54% for the year ended December 31,
2023, due to the rise in interest rates, as noted above.
Total interest expense was $273.4 million for
the year ended December 31, 2024, an increase of $84.3
million, or 44.6%, from $189.1 million for the year ended
December 31, 2023. The increase in interest expense was
primarily attributable to a 109 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 $7.1 million due to an 11 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, 2024 decreased 34 basis points to 1.82%,
when compared to 2.16% for the year ended December 31, 2023.
The weighted average yield on interest-earning assets for the year
ended December 31, 2024 increased 47 basis points to 4.61%, as
compared to 4.14% for the year ended December 31, 2023. The
average cost of interest-bearing liabilities increased 92 basis
points to 3.44% for the year ended December 31, 2024 as
compared to 2.52% for the year ended December 31, 2023. The
increase in yields for the year ended December 31, 2024 was due to
the impact of market rate increases between periods, with rates
decreasing just prior to the fourth quarter of 2024. The net
interest margin decreased for the year ended December 31,
2024, as the increase in the average cost of interest-bearing
liabilities outweighed the increase in the average yield on
interest-earning assets.
The provision for credit losses for the year
ended December 31, 2024 was $14.5 million, an increase of $9.7
million, from $4.8 million for the year ended December 31,
2023. The increase in provision for credit losses during the year
was primarily due to net charge-offs totaling $9.6 million and an
increase in loan performance qualitative factors.
Non-interest income was $1.9 million for the
year ended December 31, 2024, a decrease of $25.5 million, or
93.1%, from $27.4 million for the year ended December 31,
2023. The decrease was primarily attributable to an increase in the
loss on securities transactions of $25.0 million, and a decrease in
bank-owned life insurance income of $2.8 million, attributable to
death benefits in 2023, partially offset by a $1.9 million increase
in the fair value of Federal Home Loan Mortgage Corporation and
Federal National Mortgage Association preferred stock included in
equity securities.
Non-interest expense was $181.3 million for the
year ended December 31, 2024, a decrease of $1.1 million, or
0.6%, from $182.4 million for the year ended December 31,
2023. The decrease was primarily attributable to a decrease in
compensation and employee benefits expense of $11.4 million,
partially offset by an increase in professional fee of $4.3
million, an increase in merger-related expenses of $1.1 million and
an increase in loss on extinguishment of debt of $3.1 million,
resulting primarily from the repositioning transaction, and an
increase in other non-interest expense of $2.0 million. The
decrease in compensation and employee benefits expense was the
result of lower incentive compensation and a workforce reduction
related to cost cutting strategies implemented during 2023 and
2024. The increase in professional fees was primarily related to an
increase in legal, regulatory and compliance-related costs while
the increase in other non-interest expense related to swap
transactions. During the quarter ended December 31, 2024, the
Company prepaid $170.0 million of FHLB borrowings as part of the
previously discussed balance sheet repositioning transaction which
resulted in a $3.3 million loss on the extinguishment of debt.
Income tax benefit was $4.3 million for the year
ended December 31, 2024, a decrease of $14.2 million, as
compared to income tax expense of $10.0 million for the year ended
December 31, 2023, mainly due to a decrease in pre-tax income.
The Company's effective tax rate was 26.8% and 21.6% for the years
ended December 31, 2024 and 2023, respectively.
Balance Sheet Summary
Total assets decreased $170.1 million, or 1.6%,
to $10.5 billion at December 31, 2024 as compared to $10.6
billion at December 31, 2023. The decrease in total assets was
primarily attributable to a decrease in cash and cash equivalents
of $134.0 million, a decrease in debt securities available for sale
of $67.6 million, and a decrease in Federal Home Loan Bank stock of
$20.6 million, partially offset by an increase in loans receivable,
net, of $37.5 million and an increase in other assets of $15.6
million.
Cash and cash equivalents decreased $134.0
million, or 31.7%, to $289.2 million at December 31, 2024 from
$423.2 million at December 31, 2023. The decrease was
primarily attributable to purchases of securities of $446.2
million, a decrease in borrowings of $448.1 million, and
repurchases of common stock under our stock repurchase program of
$5.9 million, partially offset by proceeds from the sale of
securities of $321.2 million, principal repayments on securities of
$185.6 million, and repayments on loans receivable, and an increase
in total deposits of $249.6 million.
Debt securities available for sale decreased
$67.6 million, or 6.2%, to $1.0 billion at December 31, 2024
from $1.1 billion at December 31, 2023. The decrease was
attributable to sales of securities with an amortized cost of
$357.1 million which resulted in a realized loss of $35.9 million,
and repayments on securities of $140.5 million, which was partially
offset by purchases of securities of $404.7 million and a decrease
in the gross unrealized loss on securities of $34.9 million. The
Company sold predominantly fixed rate, low-yielding debt securities
and used the proceeds to repay high costing borrowings and purchase
higher-yielding debt securities to improve future net interest rate
margin.
Loans receivable, net, increased $37.5 million,
or 0.5%, to $7.9 billion at December 31, 2024 from $7.8
billion at December 31, 2023. Multifamily loans, construction
loans, and commercial business loans increased $51.5 million, $30.5
million, and $89.0 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 $81.9 million,
$37.2 million and $7.6 million, respectively. The allowance for
credit losses for loans increased $4.9 million to $60.0 million at
December 31, 2024 from $55.1 million at December 31,
2023. During the year ended December 31, 2024, the increase in
the allowance for credit losses for loans was primarily due to net
charge-offs of $9.6 million and an increase in loan performance
qualitative factors.
Federal Home Loan Bank stock decreased $20.6
million, or 25.5%, to $60.4 million at December 31, 2024 from
$81.0 million at December 31, 2023. The decrease was due to
the redemption of stock required upon repaying FHLB borrowings.
Other assets increased $15.6 million, or 5.1%,
to $324.0 million at December 31, 2024 from $308.4 million at
December 31, 2023, primarily due to a $14.3 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 $210.1 million, or
2.2%, to $9.4 billion at December 31, 2024 from $9.6 billion
at December 31, 2023. The decrease was primarily attributable
to a decrease in borrowings of $448.1 million, or 29.3%, partially
offset by an increase in total deposits of $249.6 million, or 3.2%.
The $448.1 million decrease in borrowings was primarily driven by a
net decrease in long-term borrowings of $170.0 million, coupled
with a decrease in short-term borrowings of $237.8 million. The
decrease in long-term borrowings was mainly attributable to the
prepayment of $170.0 million of long-term borrowings as part of the
balance sheet repositioning transaction as described above. The
increase in total deposits primarily consisted of increases in
non-interest-bearing and interest-bearing demand deposits and
certificates of deposit of $669,000, $54.8 million, and $255.8
million, respectively, partially offset by decreases in money
market and savings and club accounts of $13.8 million and $47.8
million, respectively.
Total stockholders’ equity increased $40.0
million, or 3.8%, to $1.1 billion at December 31, 2024 from
$1.0 billion at December 31, 2023. The increase in total
stockholders’ equity was primarily attributable to the recognition
of $8.0 million in stock based compensation expense and an increase
of $48.2 million in other comprehensive income, which includes
changes in unrealized losses on debt securities available for sale
and unrealized gains on swap contracts, net of taxes. These
increases were partially offset by a net loss of $11.7 million, and
the repurchase of 365,116 shares of common stock at a cost of
approximately $5.9 million, or $16.14 per share, under our stock
repurchase program. Repurchases have been paused in order to retain
capital.
Asset Quality
The Company's non-performing loans at
December 31, 2024 totaled $21.7 million, or 0.28% of total
gross loans, as compared to $12.6 million, or 0.16% of total gross
loans, at December 31, 2023. The $9.1 million increase in
non-performing loans was primarily attributable to an increase in
non-performing commercial business loans of $3.3 million and an
increase in non-performing one-to-four family real estate loans of
$5.6 million. The increase in non-performing commercial business
loans primarily consists of two loans totaling $6.4 million at
December 31, 2024, partially offset by the charge-off of a
$3.7 million loan to a technology company during 2024. The increase
in non-performing one-to-four family real estate loans was due to
an increase in the number of loans from 17 non-performing loans at
December 31, 2023 to 32 loans at December 31, 2024.
Non-performing assets as a percentage of total assets totaled 0.22%
at December 31, 2024 as compared to 0.12% at December 31,
2023.
For the quarter ended December 31, 2024,
net charge-offs totaled $1.4 million, as compared to $173,000 in
net charge-offs recorded for the quarter ended December 31,
2023. For the year ended December 31, 2024, net charge-offs
totaled $9.6 million, as compared to $2.5 million in net
charge-offs recorded for the year ended December 31, 2023. Net
charge-offs for the year ended December 31, 2024 included
charge-offs related to 17 commercial business loans totaling $9.2
million. Recoveries on previously charged-off loans for the quarter
ended December 31, 2024, and the year ended December 31,
2024, totaled approximately $88,000 and $1.4 million,
respectively.
The Company's allowance for credit losses on
loans was $60.0 million, or 0.76% of total gross loans, at
December 31, 2024, compared to $55.1 million, or 0.70% of
total gross loans, at December 31, 2023. The increase in the
allowance for credit losses for loans was primarily due to net
charge-offs of $9.6 million and an increase in loan performance
qualitative factors.
Additional Liquidity, Loan, and Deposit
Information
The Company services a diverse retail and
commercial deposit base through its 69 branches. With over 215,000
accounts, the average deposit account balance was approximately
$38,000 at December 31, 2024.
Deposit balances are summarized as follows:
|
|
At December 31, 2024 |
|
At September 30, 2024 |
|
|
Balance |
|
Weighted Average Rate |
|
Balance |
|
Weighted Average Rate |
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
Non-interest-bearing demand |
|
$ |
1,438,030 |
|
|
— |
% |
|
$ |
1,406,152 |
|
|
— |
% |
Interest-bearing demand |
|
|
2,021,312 |
|
|
2.19 |
|
|
|
1,980,298 |
|
|
2.41 |
|
Money market accounts |
|
|
1,241,691 |
|
|
2.82 |
|
|
|
1,239,204 |
|
|
2.92 |
|
Savings and club deposits |
|
|
652,501 |
|
|
0.75 |
|
|
|
649,858 |
|
|
0.79 |
|
Certificates of deposit |
|
|
2,742,615 |
|
|
4.24 |
|
|
|
2,682,547 |
|
|
4.45 |
|
Total deposits |
|
$ |
8,096,149 |
|
|
2.47 |
% |
|
$ |
7,958,059 |
|
|
2.62 |
% |
The Company continues to maintain strong
liquidity and capital positions. The Company had no outstanding
borrowings from the Federal Reserve Discount Window at
December 31, 2024. As of December 31, 2024, the Company
had immediate access to approximately $2.7 billion of funding, with
additional unpledged loan collateral available to pledge is
approximately $2.1 billion.
At December 31, 2024, the Company's
non-performing commercial real estate loans totaled $2.9 million,
or 0.04%, 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, 2024 |
|
|
(Dollars in thousands) |
|
|
Balance |
|
% of Gross Loans |
|
Weighted Average Loan to Value Ratio |
|
Weighted Average Debt Service Coverage |
Multifamily Real Estate |
|
$ |
1,460,641 |
|
|
18.4 |
% |
|
58.0 |
% |
|
1.59 |
x |
|
|
|
|
|
|
|
|
|
|
Owner Occupied Commercial Real Estate |
|
$ |
688,341 |
|
|
8.7 |
% |
|
53.3 |
% |
|
2.22 |
x |
|
|
|
|
|
|
|
|
|
|
Investor Owned Commercial Real Estate: |
|
|
|
|
|
|
|
|
|
Retail / Shopping centers |
|
$ |
506,544 |
|
|
6.4 |
% |
|
51.6 |
% |
|
1.50 |
x |
Mixed Use |
|
|
214,148 |
|
|
2.7 |
|
|
57.3 |
|
|
1.58 |
|
Industrial / Warehouse |
|
|
383,585 |
|
|
4.8 |
|
|
54.7 |
|
|
1.69 |
|
Non-Medical Office |
|
|
193,569 |
|
|
2.4 |
|
|
50.8 |
|
|
1.65 |
|
Medical Office |
|
|
120,381 |
|
|
1.5 |
|
|
58.5 |
|
|
1.46 |
|
Single Purpose |
|
|
96,907 |
|
|
1.2 |
|
|
52.3 |
|
|
3.13 |
|
Other |
|
|
136,408 |
|
|
1.7 |
|
|
47.8 |
|
|
1.76 |
|
Total |
|
$ |
1,651,542 |
|
|
20.9 |
% |
|
53.2 |
% |
|
1.69 |
|
|
|
|
|
|
|
|
|
|
|
Total Multifamily and Commercial Real Estate Loans |
|
$ |
3,800,524 |
|
|
48.0 |
% |
|
55.1 |
% |
|
1.75 |
x |
At December 31, 2024, the Company had less
than $1.0 million in loan exposure to office or rent stabilized
multifamily loans in New York City.
Annual Meeting of
Stockholders
On January 28, 2025, the Company also announced
that its annual meeting of stockholders will be held on June 5,
2025.
About Columbia Financial,
Inc.
The consolidated financial results include the
accounts of Columbia Financial, Inc., its wholly-owned subsidiary
Columbia Bank (the "Bank") and the Bank's 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 69
full-service banking offices and offers traditional financial
services to consumers and businesses in its market area.
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 successful implementation of our December
2024 balance sheet repositioning transaction; 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, |
|
|
|
2024 |
|
|
|
2023 |
|
Assets |
|
(Unaudited) |
|
|
Cash and due from banks |
|
$ |
289,113 |
|
|
$ |
423,140 |
|
Short-term investments |
|
|
110 |
|
|
|
109 |
|
Total cash and cash equivalents |
|
|
289,223 |
|
|
|
423,249 |
|
|
|
|
|
|
Debt securities available for sale, at fair value |
|
|
1,025,946 |
|
|
|
1,093,557 |
|
Debt securities held to maturity, at amortized cost (fair value of
$350,153, and $357,177 at December 31, 2024 and 2023,
respectively) |
|
|
392,840 |
|
|
|
401,154 |
|
Equity securities, at fair value |
|
|
6,673 |
|
|
|
4,079 |
|
Federal Home Loan Bank stock |
|
|
60,387 |
|
|
|
81,022 |
|
|
|
|
|
|
Loans receivable |
|
|
7,916,928 |
|
|
|
7,874,537 |
|
Less: allowance for credit losses |
|
|
59,958 |
|
|
|
55,096 |
|
Loans receivable, net |
|
|
7,856,970 |
|
|
|
7,819,441 |
|
|
|
|
|
|
Accrued interest receivable |
|
|
40,383 |
|
|
|
39,345 |
|
Office properties and equipment, net |
|
|
81,772 |
|
|
|
83,577 |
|
Bank-owned life insurance |
|
|
274,908 |
|
|
|
268,362 |
|
Goodwill and intangible assets |
|
|
121,008 |
|
|
|
123,350 |
|
Other real estate owned |
|
|
1,334 |
|
|
|
— |
|
Other assets |
|
|
324,049 |
|
|
|
308,432 |
|
Total assets |
|
$ |
10,475,493 |
|
|
$ |
10,645,568 |
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
Liabilities: |
|
|
|
|
Deposits |
|
$ |
8,096,149 |
|
|
$ |
7,846,556 |
|
Borrowings |
|
|
1,080,600 |
|
|
|
1,528,695 |
|
Advance payments by borrowers for taxes and insurance |
|
|
45,453 |
|
|
|
43,509 |
|
Accrued expenses and other liabilities |
|
|
172,915 |
|
|
|
186,473 |
|
Total liabilities |
|
|
9,395,117 |
|
|
|
9,605,233 |
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
Total stockholders' equity |
|
|
1,080,376 |
|
|
|
1,040,335 |
|
Total liabilities and stockholders' equity |
|
$ |
10,475,493 |
|
|
$ |
10,645,568 |
|
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES |
Consolidated Statements of Income |
(In thousands, except per share data) |
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Interest income: |
|
(Unaudited) |
|
(Unaudited) |
|
|
Loans receivable |
|
$ |
96,202 |
|
|
$ |
91,744 |
|
|
$ |
382,266 |
|
|
$ |
343,770 |
|
Debt securities available for sale and equity securities |
|
|
9,793 |
|
|
|
7,077 |
|
|
|
36,411 |
|
|
|
28,120 |
|
Debt securities held to maturity |
|
|
2,479 |
|
|
|
2,370 |
|
|
|
9,966 |
|
|
|
9,708 |
|
Federal funds and interest-earning deposits |
|
|
3,309 |
|
|
|
4,828 |
|
|
|
15,181 |
|
|
|
8,188 |
|
Federal Home Loan Bank stock dividends |
|
|
1,843 |
|
|
|
1,531 |
|
|
|
7,602 |
|
|
|
5,192 |
|
Total interest income |
|
|
113,626 |
|
|
|
107,550 |
|
|
|
451,426 |
|
|
|
394,978 |
|
Interest expense: |
|
|
|
|
|
|
|
|
Deposits |
|
|
51,943 |
|
|
|
43,429 |
|
|
|
202,383 |
|
|
|
125,162 |
|
Borrowings |
|
|
15,256 |
|
|
|
18,782 |
|
|
|
71,061 |
|
|
|
63,940 |
|
Total interest expense |
|
|
67,199 |
|
|
|
62,211 |
|
|
|
273,444 |
|
|
|
189,102 |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
46,427 |
|
|
|
45,339 |
|
|
|
177,982 |
|
|
|
205,876 |
|
|
|
|
|
|
|
|
|
|
Provision for credit losses |
|
|
2,876 |
|
|
|
1,155 |
|
|
|
14,451 |
|
|
|
4,787 |
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for credit losses |
|
|
43,551 |
|
|
|
44,184 |
|
|
|
163,531 |
|
|
|
201,089 |
|
|
|
|
|
|
|
|
|
|
Non-interest income: |
|
|
|
|
|
|
|
|
Demand deposit account fees |
|
|
1,809 |
|
|
|
1,330 |
|
|
|
6,507 |
|
|
|
5,145 |
|
Bank-owned life insurance |
|
|
2,066 |
|
|
|
4,456 |
|
|
|
7,319 |
|
|
|
10,126 |
|
Title insurance fees |
|
|
570 |
|
|
|
560 |
|
|
|
2,505 |
|
|
|
2,400 |
|
Loan fees and service charges |
|
|
1,193 |
|
|
|
1,144 |
|
|
|
4,483 |
|
|
|
4,510 |
|
Loss on securities transactions |
|
|
(34,595 |
) |
|
|
— |
|
|
|
(35,851 |
) |
|
|
(10,847 |
) |
Change in fair value of equity securities |
|
|
2,169 |
|
|
|
446 |
|
|
|
2,594 |
|
|
|
695 |
|
Gain on sale of loans |
|
|
81 |
|
|
|
154 |
|
|
|
906 |
|
|
|
1,214 |
|
Other non-interest income |
|
|
2,991 |
|
|
|
3,159 |
|
|
|
13,431 |
|
|
|
14,136 |
|
Total non-interest income |
|
|
(23,716 |
) |
|
|
11,249 |
|
|
|
1,894 |
|
|
|
27,379 |
|
|
|
|
|
|
|
|
|
|
Non-interest expense: |
|
|
|
|
|
|
|
|
Compensation and employee benefits |
|
|
26,579 |
|
|
|
28,463 |
|
|
|
109,489 |
|
|
|
120,846 |
|
Occupancy |
|
|
5,861 |
|
|
|
5,590 |
|
|
|
23,482 |
|
|
|
22,927 |
|
Federal deposit insurance premiums |
|
|
1,829 |
|
|
|
5,015 |
|
|
|
7,581 |
|
|
|
8,639 |
|
Advertising |
|
|
457 |
|
|
|
498 |
|
|
|
2,510 |
|
|
|
2,805 |
|
Professional fees |
|
|
2,567 |
|
|
|
3,083 |
|
|
|
14,164 |
|
|
|
9,824 |
|
Data processing and software expenses |
|
|
3,572 |
|
|
|
4,154 |
|
|
|
15,578 |
|
|
|
15,039 |
|
Merger-related expenses |
|
|
928 |
|
|
|
326 |
|
|
|
1,665 |
|
|
|
606 |
|
Loss on extinguishment of debt |
|
|
3,447 |
|
|
|
300 |
|
|
|
3,447 |
|
|
|
300 |
|
Other non-interest expense |
|
|
1,356 |
|
|
|
570 |
|
|
|
3,419 |
|
|
|
1,431 |
|
Total non-interest expense |
|
|
46,596 |
|
|
|
47,999 |
|
|
|
181,335 |
|
|
|
182,417 |
|
|
|
|
|
|
|
|
|
|
(Loss) income before income tax (benefit) expense |
|
|
(26,761 |
) |
|
|
7,434 |
|
|
|
(15,910 |
) |
|
|
46,051 |
|
|
|
|
|
|
|
|
|
|
Income tax (benefit) expense |
|
|
(5,538 |
) |
|
|
865 |
|
|
|
(4,257 |
) |
|
|
9,965 |
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(21,223 |
) |
|
$ |
6,569 |
|
|
$ |
(11,653 |
) |
|
$ |
36,086 |
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per share-basic |
|
$ |
(0.21 |
) |
|
$ |
0.06 |
|
|
$ |
(0.11 |
) |
|
$ |
0.35 |
|
(Loss) earnings per share-diluted |
|
$ |
(0.21 |
) |
|
$ |
0.06 |
|
|
$ |
(0.11 |
) |
|
$ |
0.35 |
|
Weighted average shares outstanding-basic |
|
|
101,686,108 |
|
|
|
101,656,890 |
|
|
|
101,676,758 |
|
|
|
102,656,388 |
|
Weighted average shares outstanding-diluted |
|
|
101,945,750 |
|
|
|
101,817,194 |
|
|
|
101,839,507 |
|
|
|
102,894,969 |
|
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES |
Average Balances/Yields |
|
|
|
For the Three Months Ended December 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
Average Balance |
|
Interest and Dividends |
|
Yield / Cost |
|
Average Balance |
|
Interest and Dividends |
|
Yield / Cost |
|
|
(Dollars in thousands) |
Interest-earnings assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
7,839,416 |
|
|
$ |
96,202 |
|
|
4.88 |
% |
|
$ |
7,816,272 |
|
|
$ |
91,744 |
|
|
4.66 |
% |
Securities |
|
|
1,635,028 |
|
|
|
12,272 |
|
|
2.99 |
% |
|
|
1,453,863 |
|
|
|
9,447 |
|
|
2.58 |
% |
Other interest-earning assets |
|
|
341,393 |
|
|
|
5,152 |
|
|
6.00 |
% |
|
|
447,369 |
|
|
|
6,359 |
|
|
5.64 |
% |
Total interest-earning assets |
|
|
9,815,837 |
|
|
|
113,626 |
|
|
4.61 |
% |
|
|
9,717,504 |
|
|
|
107,550 |
|
|
4.39 |
% |
Non-interest-earning assets |
|
|
874,522 |
|
|
|
|
|
|
|
854,857 |
|
|
|
|
|
Total assets |
|
$ |
10,690,359 |
|
|
|
|
|
|
$ |
10,572,361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
|
$ |
2,027,003 |
|
|
$ |
13,686 |
|
|
2.69 |
% |
|
$ |
2,000,406 |
|
|
$ |
12,308 |
|
|
2.44 |
% |
Money market accounts |
|
|
1,235,421 |
|
|
|
7,630 |
|
|
2.46 |
% |
|
|
1,119,290 |
|
|
|
8,962 |
|
|
3.18 |
% |
Savings and club deposits |
|
|
649,686 |
|
|
|
1,209 |
|
|
0.74 |
% |
|
|
714,664 |
|
|
|
846 |
|
|
0.47 |
% |
Certificates of deposit |
|
|
2,696,740 |
|
|
|
29,418 |
|
|
4.34 |
% |
|
|
2,416,773 |
|
|
|
21,313 |
|
|
3.50 |
% |
Total interest-bearing deposits |
|
|
6,608,850 |
|
|
|
51,943 |
|
|
3.13 |
% |
|
|
6,251,133 |
|
|
|
43,429 |
|
|
2.76 |
% |
FHLB advances |
|
|
1,298,686 |
|
|
|
15,102 |
|
|
4.63 |
% |
|
|
1,494,794 |
|
|
|
18,592 |
|
|
4.93 |
% |
Notes payable |
|
|
— |
|
|
|
— |
|
|
— |
% |
|
|
916 |
|
|
|
23 |
|
|
9.96 |
% |
Junior subordinated debentures |
|
|
7,036 |
|
|
|
154 |
|
|
8.71 |
% |
|
|
7,013 |
|
|
|
167 |
|
|
9.45 |
% |
Total borrowings |
|
|
1,305,722 |
|
|
|
15,256 |
|
|
4.65 |
% |
|
|
1,502,723 |
|
|
|
18,782 |
|
|
4.96 |
% |
Total interest-bearing liabilities |
|
|
7,914,572 |
|
|
$ |
67,199 |
|
|
3.38 |
% |
|
|
7,753,856 |
|
|
$ |
62,211 |
|
|
3.18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
|
1,460,125 |
|
|
|
|
|
|
|
1,441,005 |
|
|
|
|
|
Other non-interest-bearing liabilities |
|
|
241,582 |
|
|
|
|
|
|
|
247,545 |
|
|
|
|
|
Total liabilities |
|
|
9,616,279 |
|
|
|
|
|
|
|
9,442,406 |
|
|
|
|
|
Total stockholders' equity |
|
|
1,074,080 |
|
|
|
|
|
|
|
1,129,955 |
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
10,690,359 |
|
|
|
|
|
|
$ |
10,572,361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
$ |
46,427 |
|
|
|
|
|
|
$ |
45,339 |
|
|
|
Interest rate spread |
|
|
|
|
|
1.23 |
% |
|
|
|
|
|
1.21 |
% |
Net interest-earning assets |
|
$ |
1,901,265 |
|
|
|
|
|
|
$ |
1,963,648 |
|
|
|
|
|
Net interest margin |
|
|
|
|
|
1.88 |
% |
|
|
|
|
|
1.85 |
% |
Ratio of interest-earning assets to interest-bearing
liabilities |
|
|
124.02 |
% |
|
|
|
|
|
|
125.32 |
% |
|
|
|
|
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES |
Average Balances/Yields |
|
|
|
For the Years Ended December 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
Average Balance |
|
Interest and Dividends |
|
Yield / Cost |
|
Average Balance |
|
Interest and Dividends |
|
Yield / Cost |
|
|
(Dollars in thousands) |
Interest-earnings assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
7,801,939 |
|
|
$ |
382,266 |
|
|
4.90 |
% |
|
$ |
7,748,096 |
|
|
$ |
343,770 |
|
|
4.44 |
% |
Securities |
|
|
1,622,519 |
|
|
|
46,377 |
|
|
2.86 |
% |
|
|
1,540,726 |
|
|
|
37,828 |
|
|
2.46 |
% |
Other interest-earning assets |
|
|
363,370 |
|
|
|
22,783 |
|
|
6.27 |
% |
|
|
241,520 |
|
|
|
13,380 |
|
|
5.54 |
% |
Total interest-earning assets |
|
|
9,787,828 |
|
|
$ |
451,426 |
|
|
4.61 |
% |
|
|
9,530,342 |
|
|
$ |
394,978 |
|
|
4.14 |
% |
Non-interest-earning assets |
|
|
865,684 |
|
|
|
|
|
|
|
840,215 |
|
|
|
|
|
Total assets |
|
$ |
10,653,512 |
|
|
|
|
|
|
$ |
10,370,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
|
$ |
1,986,215 |
|
|
$ |
55,360 |
|
|
2.79 |
% |
|
$ |
2,183,333 |
|
|
$ |
37,774 |
|
|
1.73 |
% |
Money market accounts |
|
|
1,235,495 |
|
|
|
32,977 |
|
|
2.67 |
% |
|
|
951,174 |
|
|
|
24,296 |
|
|
2.55 |
% |
Savings and club deposits |
|
|
667,836 |
|
|
|
5,130 |
|
|
0.77 |
% |
|
|
793,303 |
|
|
|
2,231 |
|
|
0.28 |
% |
Certificates of deposit |
|
|
2,587,360 |
|
|
|
108,916 |
|
|
4.21 |
% |
|
|
2,229,042 |
|
|
|
60,861 |
|
|
2.73 |
% |
Total interest-bearing deposits |
|
|
6,476,906 |
|
|
|
202,383 |
|
|
3.12 |
% |
|
|
6,156,852 |
|
|
|
125,162 |
|
|
2.03 |
% |
FHLB advances |
|
|
1,454,674 |
|
|
|
70,418 |
|
|
4.84 |
% |
|
|
1,315,401 |
|
|
|
62,398 |
|
|
4.74 |
% |
Notes payable |
|
|
— |
|
|
|
— |
|
|
— |
% |
|
|
22,780 |
|
|
|
918 |
|
|
4.03 |
% |
Junior subordinated debentures |
|
|
7,023 |
|
|
|
640 |
|
|
9.11 |
% |
|
|
7,054 |
|
|
|
624 |
|
|
8.85 |
% |
Other borrowings |
|
|
55 |
|
|
|
3 |
|
|
5.45 |
% |
|
|
— |
|
|
|
— |
|
|
— |
% |
Total borrowings |
|
|
1,461,752 |
|
|
|
71,061 |
|
|
4.86 |
% |
|
|
1,345,235 |
|
|
|
63,940 |
|
|
4.75 |
% |
Total interest-bearing liabilities |
|
|
7,938,658 |
|
|
$ |
273,444 |
|
|
3.44 |
% |
|
|
7,502,087 |
|
|
$ |
189,102 |
|
|
2.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
|
1,420,104 |
|
|
|
|
|
|
|
1,539,354 |
|
|
|
|
|
Other non-interest-bearing liabilities |
|
|
242,290 |
|
|
|
|
|
|
|
231,018 |
|
|
|
|
|
Total liabilities |
|
|
9,601,052 |
|
|
|
|
|
|
|
9,272,459 |
|
|
|
|
|
Total stockholders' equity |
|
|
1,052,460 |
|
|
|
|
|
|
|
1,098,098 |
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
10,653,512 |
|
|
|
|
|
|
$ |
10,370,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
$ |
177,982 |
|
|
|
|
|
|
$ |
205,876 |
|
|
|
Interest rate spread |
|
|
|
|
|
1.17 |
% |
|
|
|
|
|
1.62 |
% |
Net interest-earning assets |
|
$ |
1,849,170 |
|
|
|
|
|
|
$ |
2,028,255 |
|
|
|
|
|
Net interest margin |
|
|
|
|
|
1.82 |
% |
|
|
|
|
|
2.16 |
% |
Ratio of interest-earning assets to interest-bearing
liabilities |
|
|
123.29 |
% |
|
|
|
|
|
|
127.04 |
% |
|
|
|
|
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES |
Components of Net Interest Rate Spread and
Margin |
|
|
|
Average Yields/Costs by Quarter |
|
|
December 31, 2024 |
|
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
Yield on interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
Loans |
|
4.88 |
% |
|
5.00 |
% |
|
4.93 |
% |
|
4.79 |
% |
|
4.66 |
% |
Securities |
|
2.99 |
|
|
2.90 |
|
|
2.89 |
|
|
2.65 |
|
|
2.58 |
|
Other interest-earning assets |
|
6.00 |
|
|
6.72 |
|
|
6.30 |
|
|
6.06 |
|
|
5.64 |
|
Total interest-earning assets |
|
4.61 |
% |
|
4.70 |
% |
|
4.64 |
% |
|
4.50 |
% |
|
4.39 |
% |
|
|
|
|
|
|
|
|
|
|
|
Cost of interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
Total interest-bearing deposits |
|
3.13 |
% |
|
3.21 |
% |
|
3.14 |
% |
|
3.02 |
% |
|
2.76 |
% |
Total borrowings |
|
4.65 |
|
|
4.87 |
|
|
4.92 |
|
|
4.98 |
|
|
4.96 |
|
Total interest-earning liabilities |
|
3.38 |
% |
|
3.52 |
% |
|
3.49 |
% |
|
3.38 |
% |
|
3.18 |
% |
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread |
|
1.23 |
% |
|
1.18 |
% |
|
1.15 |
% |
|
1.12 |
% |
|
1.21 |
% |
Net interest margin |
|
1.88 |
% |
|
1.84 |
% |
|
1.81 |
% |
|
1.75 |
% |
|
1.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
Ratio of interest-earning assets to interest-bearing
liabilities |
|
124.02 |
% |
|
123.06 |
% |
|
123.03 |
% |
|
123.06 |
% |
|
125.32 |
% |
COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES |
Selected Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024 |
|
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
SELECTED FINANCIAL
RATIOS(1): |
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
(0.79 |
)% |
|
0.23 |
% |
|
0.17 |
% |
|
(0.04 |
)% |
|
0.25 |
% |
Core return on average assets |
|
0.42 |
% |
|
0.23 |
% |
|
0.20 |
% |
|
0.02 |
% |
|
0.38 |
% |
Return on average equity |
|
(7.86 |
)% |
|
2.32 |
% |
|
1.77 |
% |
|
(0.45 |
)% |
|
2.31 |
% |
Core return on average equity |
|
4.09 |
% |
|
2.29 |
% |
|
2.06 |
% |
|
0.18 |
% |
|
3.56 |
% |
Core return on average tangible equity |
|
4.74 |
% |
|
2.58 |
% |
|
2.34 |
% |
|
0.20 |
% |
|
3.99 |
% |
Interest rate spread |
|
1.23 |
% |
|
1.18 |
% |
|
1.15 |
% |
|
1.12 |
% |
|
1.21 |
% |
Net interest margin |
|
1.88 |
% |
|
1.84 |
% |
|
1.81 |
% |
|
1.75 |
% |
|
1.85 |
% |
Non-interest income to average assets |
|
(0.88 |
)% |
|
0.33 |
% |
|
0.35 |
% |
|
0.28 |
% |
|
0.42 |
% |
Non-interest expense to average assets |
|
1.73 |
% |
|
1.60 |
% |
|
1.74 |
% |
|
1.74 |
% |
|
1.80 |
% |
Efficiency ratio |
|
205.17 |
% |
|
78.95 |
% |
|
86.83 |
% |
|
91.96 |
% |
|
84.82 |
% |
Core efficiency ratio |
|
73.68 |
% |
|
79.14 |
% |
|
85.34 |
% |
|
88.39 |
% |
|
76.93 |
% |
Average interest-earning assets to average interest-bearing
liabilities |
|
124.02 |
% |
|
123.06 |
% |
|
123.03 |
% |
|
123.06 |
% |
|
125.32 |
% |
Net charge-offs to average outstanding loans |
|
0.07 |
% |
|
0.14 |
% |
|
0.03 |
% |
|
0.26 |
% |
|
0.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
(1) Ratios are annualized when appropriate. |
ASSET QUALITY: |
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024 |
|
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans |
|
$ |
21,701 |
|
|
$ |
28,014 |
|
|
$ |
25,281 |
|
|
$ |
22,935 |
|
|
$ |
12,618 |
|
90+ and still accruing |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-performing loans |
|
|
21,701 |
|
|
|
28,014 |
|
|
|
25,281 |
|
|
|
22,935 |
|
|
|
12,618 |
|
Real estate owned |
|
|
1,334 |
|
|
|
1,974 |
|
|
|
1,974 |
|
|
|
— |
|
|
|
— |
|
Total non-performing assets |
|
$ |
23,035 |
|
|
$ |
29,988 |
|
|
$ |
27,255 |
|
|
$ |
22,935 |
|
|
$ |
12,618 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans to total gross loans |
|
|
0.28 |
% |
|
|
0.36 |
% |
|
|
0.33 |
% |
|
|
0.30 |
% |
|
|
0.16 |
% |
Non-performing assets to total assets |
|
|
0.22 |
% |
|
|
0.28 |
% |
|
|
0.25 |
% |
|
|
0.22 |
% |
|
|
0.12 |
% |
Allowance for credit losses on loans ("ACL") |
|
$ |
59,958 |
|
|
$ |
58,495 |
|
|
$ |
57,062 |
|
|
$ |
55,401 |
|
|
$ |
55,096 |
|
ACL to total non-performing loans |
|
|
276.29 |
% |
|
|
208.81 |
% |
|
|
225.71 |
% |
|
|
241.56 |
% |
|
|
436.65 |
% |
ACL to gross loans |
|
|
0.76 |
% |
|
|
0.75 |
% |
|
|
0.73 |
% |
|
|
0.71 |
% |
|
|
0.70 |
% |
LOAN DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024 |
|
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
|
(In thousands) |
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
One-to-four family |
|
$ |
2,710,937 |
|
|
$ |
2,737,190 |
|
|
$ |
2,764,177 |
|
|
$ |
2,778,932 |
|
|
$ |
2,792,833 |
|
Multifamily |
|
|
1,460,641 |
|
|
|
1,399,000 |
|
|
|
1,409,316 |
|
|
|
1,429,369 |
|
|
|
1,409,187 |
|
Commercial real estate |
|
|
2,339,883 |
|
|
|
2,312,759 |
|
|
|
2,316,252 |
|
|
|
2,318,178 |
|
|
|
2,377,077 |
|
Construction |
|
|
473,573 |
|
|
|
510,439 |
|
|
|
462,880 |
|
|
|
437,566 |
|
|
|
443,094 |
|
Commercial business loans |
|
|
622,000 |
|
|
|
586,447 |
|
|
|
554,768 |
|
|
|
538,260 |
|
|
|
533,041 |
|
Consumer loans: |
|
|
|
|
|
|
|
|
|
|
Home equity loans and advances |
|
|
259,009 |
|
|
|
261,041 |
|
|
|
260,427 |
|
|
|
260,786 |
|
|
|
266,632 |
|
Other consumer loans |
|
|
3,404 |
|
|
|
2,877 |
|
|
|
2,689 |
|
|
|
2,601 |
|
|
|
2,801 |
|
Total gross loans |
|
|
7,869,447 |
|
|
|
7,809,753 |
|
|
|
7,770,509 |
|
|
|
7,765,692 |
|
|
|
7,824,665 |
|
Purchased credit deteriorated loans |
|
|
11,686 |
|
|
|
11,795 |
|
|
|
12,150 |
|
|
|
14,945 |
|
|
|
15,089 |
|
Net deferred loan costs, fees and purchased premiums and
discounts |
|
|
35,795 |
|
|
|
35,642 |
|
|
|
36,352 |
|
|
|
34,992 |
|
|
|
34,783 |
|
Allowance for credit losses |
|
|
(59,958 |
) |
|
|
(58,495 |
) |
|
|
(57,062 |
) |
|
|
(55,401 |
) |
|
|
(55,096 |
) |
Loans receivable, net |
|
$ |
7,856,970 |
|
|
$ |
7,798,695 |
|
|
$ |
7,761,949 |
|
|
$ |
7,760,228 |
|
|
$ |
7,819,441 |
|
CAPITAL RATIOS: |
|
|
|
|
|
|
December 31, |
|
|
2024(1) |
|
2023 |
Company: |
|
|
|
|
Total capital (to risk-weighted assets) |
|
14.20 |
% |
|
14.08 |
% |
Tier 1 capital (to risk-weighted assets) |
|
13.40 |
% |
|
13.32 |
% |
Common equity tier 1 capital (to risk-weighted assets) |
|
13.31 |
% |
|
13.23 |
% |
Tier 1 capital (to adjusted total assets) |
|
10.02 |
% |
|
10.04 |
% |
|
|
|
|
|
Columbia Bank: |
|
|
|
|
Total capital (to risk-weighted assets) |
|
14.41 |
% |
|
14.02 |
% |
Tier 1 capital (to risk-weighted assets) |
|
13.56 |
% |
|
13.22 |
% |
Common equity tier 1 capital (to risk-weighted assets) |
|
13.56 |
% |
|
13.22 |
% |
Tier 1 capital (to adjusted total assets) |
|
9.64 |
% |
|
9.48 |
% |
|
|
|
|
|
(1) Estimated ratios at December 31, 2024. |
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial
Measures |
|
|
|
|
|
Book and Tangible Book Value per Share |
|
|
December 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(Dollars in thousands) |
Total stockholders' equity |
|
$ |
1,080,376 |
|
|
$ |
1,040,335 |
|
Less: goodwill |
|
|
(110,715 |
) |
|
|
(110,715 |
) |
Less: core deposit intangible |
|
|
(8,964 |
) |
|
|
(11,155 |
) |
Total tangible stockholders' equity |
|
$ |
960,697 |
|
|
$ |
918,465 |
|
|
|
|
|
|
Shares outstanding |
|
|
104,759,185 |
|
|
|
104,918,905 |
|
|
|
|
|
|
Book value per share |
|
$ |
10.31 |
|
|
$ |
9.92 |
|
Tangible book value per share |
|
$ |
9.17 |
|
|
$ |
8.75 |
|
Reconciliation of Core Net Income |
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(In thousands) |
Net (loss) income |
|
$ |
(21,223 |
) |
|
$ |
6,569 |
|
|
$ |
(11,653 |
) |
|
$ |
36,086 |
|
Add: loss on securities transactions, net of tax |
|
|
28,952 |
|
|
|
— |
|
|
|
30,082 |
|
|
|
9,249 |
|
Add: FDIC special assessment, net of tax |
|
|
— |
|
|
|
3,009 |
|
|
|
385 |
|
|
|
3,009 |
|
Add: severance expense from reduction in workforce, net of tax |
|
|
— |
|
|
|
— |
|
|
|
67 |
|
|
|
1,390 |
|
Add: merger-related expenses, net of tax |
|
|
777 |
|
|
|
288 |
|
|
|
1,468 |
|
|
|
529 |
|
Add: loss on extinguishment of debt, net of tax |
|
|
2,885 |
|
|
|
265 |
|
|
|
2,885 |
|
|
|
265 |
|
Add: litigation expenses, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
262 |
|
Core net income |
|
$ |
11,391 |
|
|
$ |
10,131 |
|
|
$ |
23,234 |
|
|
$ |
50,790 |
|
Return on Average Assets |
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(Dollars in thousands) |
Net (loss) income |
|
$ |
(21,223 |
) |
|
$ |
6,569 |
|
|
$ |
(11,653 |
) |
|
$ |
36,086 |
|
|
|
|
|
|
|
|
|
|
Average assets |
|
$ |
10,690,359 |
|
|
$ |
10,572,361 |
|
|
$ |
10,653,512 |
|
|
$ |
10,370,557 |
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
(0.79 |
)% |
|
|
0.25 |
% |
|
|
(0.11 |
)% |
|
|
0.35 |
% |
|
|
|
|
|
|
|
|
|
Core net income |
|
$ |
11,391 |
|
|
$ |
10,131 |
|
|
$ |
23,234 |
|
|
$ |
50,790 |
|
|
|
|
|
|
|
|
|
|
Core return on average assets |
|
|
0.42 |
% |
|
|
0.38 |
% |
|
|
0.22 |
% |
|
|
0.49 |
% |
Reconciliation of GAAP to Non-GAAP Financial Measures
(continued) |
|
|
|
|
|
|
|
|
|
|
|
Return on Average Equity |
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(Dollars in thousands) |
Total average stockholders' equity |
|
$ |
1,074,080 |
|
|
$ |
1,129,955 |
|
|
$ |
1,052,460 |
|
|
$ |
1,098,098 |
|
Add: loss on securities transactions, net of tax |
|
|
28,952 |
|
|
|
— |
|
|
|
30,082 |
|
|
|
9,249 |
|
Add: FDIC special assessment, net of tax |
|
|
— |
|
|
|
3,009 |
|
|
|
385 |
|
|
|
3,009 |
|
Add: severance expense from reduction in workforce, net of tax |
|
|
— |
|
|
|
— |
|
|
|
67 |
|
|
|
1,390 |
|
Add: merger-related expenses, net of tax |
|
|
777 |
|
|
|
288 |
|
|
|
1,468 |
|
|
|
529 |
|
Add: loss on extinguishment of debt, net of tax |
|
|
2,885 |
|
|
|
265 |
|
|
|
2,885 |
|
|
|
265 |
|
Add: litigation expenses, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
262 |
|
Core average stockholders' equity |
|
$ |
1,106,694 |
|
|
$ |
1,133,517 |
|
|
$ |
1,087,347 |
|
|
$ |
1,112,802 |
|
|
|
|
|
|
|
|
|
|
Return on average equity |
|
|
(7.86 |
)% |
|
|
2.31 |
% |
|
|
(1.11 |
)% |
|
|
3.29 |
% |
|
|
|
|
|
|
|
|
|
Core return on core average equity |
|
|
4.09 |
% |
|
|
3.56 |
% |
|
|
2.14 |
% |
|
|
4.56 |
% |
Return on Average Tangible Equity |
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(Dollars in thousands) |
Total average stockholders' equity |
|
$ |
1,074,080 |
|
|
$ |
1,129,955 |
|
|
$ |
1,052,460 |
|
|
$ |
1,098,098 |
|
Less: average goodwill |
|
|
(110,715 |
) |
|
|
(110,715 |
) |
|
|
(110,715 |
) |
|
|
(110,715 |
) |
Less: average core deposit intangible |
|
|
(9,311 |
) |
|
|
(11,524 |
) |
|
|
(10,119 |
) |
|
|
(12,398 |
) |
Total average tangible stockholders' equity |
|
$ |
954,054 |
|
|
$ |
1,007,716 |
|
|
$ |
931,626 |
|
|
$ |
974,985 |
|
|
|
|
|
|
|
|
|
|
Core return on average tangible equity |
|
|
4.74 |
% |
|
|
3.99 |
% |
|
|
2.49 |
% |
|
|
5.21 |
% |
Reconciliation of GAAP to Non-GAAP Financial Measures
(continued) |
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratios |
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(Dollars in thousands) |
Net interest income |
|
$ |
46,427 |
|
|
$ |
45,339 |
|
|
$ |
177,982 |
|
|
$ |
205,876 |
|
Non-interest income |
|
|
(23,716 |
) |
|
|
11,249 |
|
|
|
1,894 |
|
|
|
27,379 |
|
Total income |
|
$ |
22,711 |
|
|
$ |
56,588 |
|
|
$ |
179,876 |
|
|
$ |
233,255 |
|
|
|
|
|
|
|
|
|
|
Non-interest expense |
|
$ |
46,596 |
|
|
$ |
47,999 |
|
|
$ |
181,335 |
|
|
$ |
182,417 |
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
|
205.17 |
% |
|
|
84.82 |
% |
|
|
100.81 |
% |
|
|
78.20 |
% |
|
|
|
|
|
|
|
|
|
Non-interest income |
|
$ |
(23,716 |
) |
|
$ |
11,249 |
|
|
$ |
1,894 |
|
|
$ |
27,379 |
|
Add: loss on securities transactions |
|
|
34,595 |
|
|
|
— |
|
|
|
35,851 |
|
|
|
10,847 |
|
Core non-interest income |
|
$ |
10,879 |
|
|
$ |
11,249 |
|
|
$ |
37,745 |
|
|
$ |
38,226 |
|
|
|
|
|
|
|
|
|
|
Non-interest expense |
|
$ |
46,596 |
|
|
$ |
47,999 |
|
|
$ |
181,335 |
|
|
$ |
182,417 |
|
Less: FDIC special assessment |
|
|
— |
|
|
|
(3,840 |
) |
|
|
(439 |
) |
|
|
(3,840 |
) |
Less: severance expense from reduction in workforce |
|
|
— |
|
|
|
— |
|
|
|
(74 |
) |
|
|
(1,605 |
) |
Less: merger-related expenses |
|
|
(928 |
) |
|
|
(326 |
) |
|
|
(1,665 |
) |
|
|
(606 |
) |
Less: loss on extinguishment of debt |
|
|
(3,447 |
) |
|
|
(300 |
) |
|
|
(3,447 |
) |
|
|
(300 |
) |
Less: litigation expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(317 |
) |
Core non-interest expense |
|
$ |
42,221 |
|
|
$ |
43,533 |
|
|
$ |
175,710 |
|
|
$ |
175,749 |
|
|
|
|
|
|
|
|
|
|
Core efficiency ratio |
|
|
73.68 |
% |
|
|
76.93 |
% |
|
|
81.45 |
% |
|
|
72.00 |
% |
Columbia Financial, Inc.
Investor Relations Department (833)
550-0717
Columbia Financial (NASDAQ:CLBK)
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