Columbia Financial, Inc. (the “Company”) (NASDAQ: CLBK), the
mid-tier holding company for Columbia Bank (the "Bank"), reported
net income of $21.0 million, or $0.20 per basic and diluted share,
for the quarter ended September 30, 2021, as compared to net
income of $15.1 million, or $0.14 per basic and diluted share, for
the quarter ended September 30, 2020. Earnings for the quarter
ended September 30, 2021 reflected higher net interest income,
a lower provision for loan losses, higher non-interest income and
lower non-interest expense, partially offset by higher income tax
expense.
For the nine months ended September 30,
2021, the Company reported net income of $68.7 million, or $0.66
per basic and diluted share, as compared to net income of $36.9
million, or $0.34 per basic and diluted share, for the nine months
ended September 30, 2020. Earnings for the nine months ended
September 30, 2021 reflected higher net interest income, a
lower provision for loan losses, higher non-interest income and
lower non-interest expense, partially offset by higher income tax
expense.
Mr. Thomas J. Kemly, President and Chief
Executive Officer commented: "We are pleased with our third quarter
results as our net income increased $5.9 million, or 39.1% over the
same 2020 period, and we increased our earnings per share by 43% to
$0.20 for the quarter ended September 30, 2021, from $0.14 for the
same 2020 period. We successfully increased assets, loans and
deposits during the quarter, while maintaining a strong balance
sheet and solid capital levels. This year has been full of unique
challenges, and we continue to evaluate prudent cost strategies as
we navigate the current competitive employment market. We remain
focused on enhancing digital technology to create efficiencies
while enhancing the client experience."
Results of Operations for the Quarters
Ended September 30, 2021 and September 30,
2020
Net income of $21.0 million was recorded for the
quarter ended September 30, 2021, an increase of $5.9 million,
or 39.1%, compared to net income of $15.1 million for the quarter
ended September 30, 2020. The increase in net income was
primarily attributable to a $1.0 million increase in net interest
income, a $2.0 million decrease in provision for loan losses, a
$1.0 million increase in non-interest income, and a $4.3 million
decrease in non-interest expense, partially offset by a $2.5
million increase in income tax expense.
Net interest income was $57.4 million for the
quarter ended September 30, 2021, an increase of $1.0 million,
or 1.8%, from $56.3 million for the quarter ended
September 30, 2020. The increase in net interest income was
primarily attributable to a $7.9 million decrease in interest
expense, resulting from a decrease in both interest expense on
deposits and interest expense on borrowings, partially offset by a
$6.9 million decrease in interest income. The decrease in interest
expense on deposits was driven by both an inflow of lower cost
deposits and the repricing of existing deposits at significantly
reduced rates as a result of a lower interest rate environment. The
decrease in interest expense on borrowings was the result of
decreases in both the average balance and average cost of
borrowings. The decrease in interest income for the quarter ended
September 30, 2021 was largely due to decreases in the average
yields on interest-earning assets. Prepayment penalties, which are
included in interest income on loans, totaled $778,000 for the
quarter ended September 30, 2021, compared to $380,000 for the
quarter ended September 30, 2020.
The average yield on loans for the quarter ended
September 30, 2021 decreased 19 basis points to 3.66%, as
compared to 3.85% for the quarter ended September 30, 2020,
while the average yield on securities for the quarter ended
September 30, 2021 decreased 45 basis points to 1.93%, as
compared to 2.38% for the quarter ended September 30, 2020.
The average yield on other interest-earning assets for the quarter
ended September 30, 2021 decreased 72 basis points to 0.54%,
as compared to 1.26% for the quarter ended September 30, 2020,
as there were substantially higher average cash balances in low
yielding bank accounts for the quarter ended September 30,
2021. Decreases in the average yields on these portfolios for the
quarter ended September 30, 2021 were influenced by the lower
interest rate environment as the Federal Reserve reduced interest
rates by 150 basis points in March 2020 in response to the COVID-19
pandemic.
Total interest expense was $8.7 million for the
quarter ended September 30, 2021, a decrease of $7.9 million,
or 47.6%, from $16.6 million for the quarter ended
September 30, 2020. The decrease in interest expense was
primarily attributable to a 49 basis point decrease in the average
cost of interest-bearing deposits which was partially offset by the
impact of the increase in the average balance of deposits. The
decrease in the cost of deposits was driven by both an inflow of
lower cost deposits and the repricing of existing deposits at lower
interest rates. Interest on borrowings decreased $1.8 million, or
46.4%, due to a decrease in the average balance of borrowings,
coupled with a 34 basis point decrease in the cost of total
borrowings.
The Company's net interest margin for the
quarter ended September 30, 2021 decreased 3 basis points to
2.67%, when compared to 2.70% for the quarter ended
September 30, 2020. The weighted average yield on
interest-earning assets decreased 42 basis points to 3.08% for the
quarter ended September 30, 2021 as compared to 3.50% for the
quarter ended September 30, 2020. The average cost of
interest-bearing liabilities decreased 50 basis points to 0.54% for
the quarter ended September 30, 2021 as compared to 1.04% for
the quarter ended September 30, 2020. The decrease in yields
and costs for the quarter ended September 30, 2021 were
largely driven by a continued lower interest rate environment.
The provision for loan losses for the quarter
ended September 30, 2021 was $480,000, a decrease of $2.0
million, from $2.5 million for the quarter ended September 30,
2020. The comparatively lower level of provision for the 2021
period was primarily attributable to a decrease in the balance of
loans, a decrease in loan loss rates, a decrease in the balances of
delinquent and non-accrual loans, and the consideration of the
improving economic environment.
Non-interest income was $8.9 million for the
quarter ended September 30, 2021, an increase of
$1.0 million, or 12.2%, from $7.9 million for the quarter
ended September 30, 2020. The increase was primarily
attributable to an increase in income from the gain on securities
transactions of $2.3 million, partially offset by a decrease in
income from the gain on the sale of loans of $1.7 million.
Non-interest expense was $37.1 million for the
quarter ended September 30, 2021, a decrease of $4.3 million,
or 10.5%, from $41.4 million for the quarter ended
September 30, 2020. The decrease was primarily attributable to
a decrease in compensation and employee benefits expense of $2.2
million, and a decrease in other non-interest expense of $2.1
million. The decrease in compensation and employee benefits expense
was due to the 2020 period including $3.0 million in expense
recorded in connection with a voluntary early retirement program
which offered early retirement incentives for qualified employees.
The decrease in other non-interest expense was primarily
attributable to a $2.0 million decrease in pension plan
expense.
Income tax expense was $7.7 million for the
quarter ended September 30, 2021, an increase of $2.5 million,
as compared to $5.3 million for the quarter ended
September 30, 2020, mainly due to an increase in pre-tax
income, and to a lesser extent, an increase in the Company's
effective state income tax rate. The Company's effective tax rate
was 26.9% and 25.8% for the quarters ended September 30, 2021
and 2020, respectively.
Results of Operations for the Nine
Months Ended September 30, 2021 and September 30,
2020
Net income of $68.7 million was recorded for the
nine months ended September 30, 2021, an increase of $31.8
million, or 86.0%, compared to net income of $36.9 million for the
nine months ended September 30, 2020. The increase in net
income was primarily attributable to a $9.3 million increase in net
interest income, a $20.4 million decrease in provision for loan
losses, a $10.6 million increase in non-interest income, and a $5.0
million decrease in non-interest expense, partially offset by a
$13.4 million increase in income tax expense.
Net interest income was $172.2 million for the
nine months ended September 30, 2021, an increase of $9.3
million, or 5.7%, from $162.9 million for the nine months ended
September 30, 2020. The increase in net interest income was
primarily attributable to a $30.9 million decrease in interest
expense, resulting from a decrease in both interest expense on
deposits and interest expense on borrowings, partially offset by a
$21.6 million decrease in interest income. The decrease in interest
expense on deposits was driven by both an inflow of lower cost
deposits and the repricing of existing deposits at a significantly
reduced rate as a result of a lower interest rate environment. The
decrease in interest expense on borrowings was the result of
decreases in both the average balance and average cost of
borrowings. During the nine months ended September 30, 2021,
$56.5 million of Federal Home Loan Bank of New York ("FHLB")
borrowings was prepaid, resulting in a $742,000 loss on early
extinguishment of debt included in non-interest expense. The
decrease in interest income for the nine months ended
September 30, 2021 was largely due to decreases in the average
yields on interest-earning assets. Prepayment penalties, which are
included in interest income on loans, totaled $2.8 million for the
nine months ended September 30, 2021, compared to $2.0 million
for the nine months ended September 30, 2020.
The average yield on loans for the nine months
ended September 30, 2021 decreased 23 basis points to 3.75%,
as compared to 3.98% for the nine months ended September 30,
2020, while the average yield on securities for the nine months
ended September 30, 2021 decreased 59 basis points to 1.96%,
as compared to 2.55% for the nine months ended September 30,
2020. The average yield on other interest-earning assets for the
nine months ended September 30, 2021 decreased 175 basis
points to 0.70%, as compared to 2.45% for the nine months ended
September 30, 2020, as there were substantially higher cash
balances in low yielding bank accounts for the nine months ended
September 30, 2021. Decreases in the average yields on these
portfolios for the nine months ended September 30, 2021 were
influenced by the lower interest rate environment as the Federal
Reserve reduced interest rates in early 2020 in response to the
COVID-19 pandemic.
Total interest expense was $29.4 million for the
nine months ended September 30, 2021, a decrease of $30.9
million, or 51.3%, from $60.3 million for the nine months ended
September 30, 2020. The decrease in interest expense was
primarily attributable to a 61 basis point decrease in the average
cost of interest-bearing deposits which was partially offset by the
impact of the increase in the average balance of deposits. The
decrease in the cost of deposits was driven by both an inflow of
lower cost deposits and the repricing of existing deposits at lower
interest rates. Interest on borrowings decreased $9.7 million due
to a decrease in the average balance of borrowings, coupled with a
66 basis point decrease in the cost of total borrowings. During the
nine months ended September 30, 2021, we prepaid $53.5 million
of FHLB borrowings with an average rate of 2.64% and original
contractual maturities through March 2022, and a $3.0 million FHLB
borrowing acquired in our acquisition of Roselle Bank with a rate
of 2.74% and an original contractual maturity of March 2024. The
prepayments were funded by excess cash liquidity. The transactions
were accounted for as early debt extinguishments resulting in a
loss of $742,000.
The Company's net interest margin for the nine
months ended September 30, 2021 increased 5 basis points to
2.75%, when compared to 2.70% for the nine months ended
September 30, 2020. The weighted average yield on
interest-earning assets decreased 47 basis points to 3.22% for the
nine months ended September 30, 2021 as compared to 3.69% for
the nine months ended September 30, 2020. Excluding the impact
of the acceleration of Paycheck Protection Program ("PPP") loan
deferred fee for the nine months ended September 30, 2021, the net
interest margin would have been 2.65%. The average cost of
interest-bearing liabilities decreased 66 basis points to 0.62% for
the nine months ended September 30, 2021 as compared to 1.28%
for the nine months ended September 30, 2020. The decreases in
yields and costs for the nine months ended September 30, 2021
were largely driven by a continued lower interest rate environment.
The net interest margin increased for the nine months ended
September 30, 2021 as the cost of interest-bearing liabilities
continued to reprice lower more rapidly than the yields on
interest-earning assets.
The reversal of provision for loan loss recorded
for the nine months ended September 30, 2021 was $2.6 million,
a decrease of $20.4 million, from $17.8 million of provision for
loan loss expense recorded for the nine months ended
September 30, 2020. The comparatively lower level of provision
for the 2021 period was primarily attributable to a decrease in the
balance of loans, a decrease in loan loss rates, a decrease in the
balances of delinquent and non-accrual loans, and the consideration
of the improving economic environment.
Non-interest income was $31.9 million for the
nine months ended September 30, 2021, an increase of $10.6
million, or 49.5%, from $21.3 million for the nine months ended
September 30, 2020. The increase was primarily attributable to
an increase in title insurance fees of $1.1 million, an increase in
the income from gains on securities transactions of $1.6 million,
an increase in income from the gain on the sale of loans of $7.4
million and an increase in other non-interest income of $1.9
million, partially offset by a decrease in the fair value of equity
securities of $1.9 million. The increase in the gain on sale of
loans was primarily attributable to a gain of $7.7 million
resulting from the sale of $237.0 million of commercial business
loans granted as part of the Small Business Administration PPP.
Other non-interest income includes an increase of $900,000 from
debit card transactions.
Non-interest expense was $112.4 million for the
nine months ended September 30, 2021, a decrease of $5.0
million, or 4.2%, from $117.3 million for the nine months ended
September 30, 2020. The decrease was primarily attributable to
a decrease in compensation and employee benefits expense of $4.8
million, a decrease in merger-related expenses of $1.8 million, and
a decrease in other non-interest expense of $1.7 million, partially
offset by an increase in professional fees of $1.1 million, an
increase in data processing and software expenses of $762,000 and
the loss on the extinguishment of debt of $742,000. The decrease in
compensation and employee benefits expense was primarily
attributable to an increase in amounts deferred for direct loan
origination costs as a result of an increase in originations, and
due to the 2020 period including $3.0 million in expense recorded
in connection with a voluntary early retirement program.
Merger-related expenses recorded in the 2020 period related to the
acquisitions of Stewardship Financial Corporation and Roselle Bank,
while the 2021 period relates to the pending acquisition of
Freehold Bank. The decrease in other non-interest expense included
a $3.0 million decrease in pension plan expense, partially offset
by $1.9 million increase related to interest rate swap
transactions. Professional fees included an increase in consulting
expenses related to information technology, and the increase in
data processing and software expenses was attributable to the
purchase and implementation of several digital banking and other
Fintech solutions, as well as the amortization of software costs
related to a digital small business lending solution. As noted
above, during the nine months ended September 30, 2021, the
Company utilized excess liquidity to prepay long-term borrowings
which resulted in a $742,000 loss on the early extinguishment of
debt.
Income tax expense was $25.5 million for the
nine months ended September 30, 2021, an increase of $13.4
million, as compared to $12.1 million for the nine months ended
September 30, 2020, mainly due to an increase in pre-tax
income, and to a lesser extent, an increase in the Company's
effective state income tax rate. The Company's effective tax rate
was 27.1% and 24.7% for the nine months ended September 30,
2021 and 2020, respectively.
Balance Sheet Summary
Total assets increased $401.6 million, or 4.6%,
to $9.2 billion at September 30, 2021 from $8.8 billion at
December 31, 2020. The increase in total assets was primarily
attributable to increases in debt securities available for sale of
$447.9 million, debt securities held to maturity of $145.4 million,
and other assets of $35.7 million, partially offset by decreases of
$124.5 million in cash and cash equivalents, and $93.1 million in
loans receivable, net.
Cash and cash equivalents decreased $124.5
million, or 29.4%, to $298.5 million at September 30, 2021
from $423.0 million at December 31, 2020. The decrease was
primarily attributable to $834.6 million in purchases of debt
securities available for sale and held to maturity, $79.1 million
in repurchases of common stock under our stock repurchase program,
and $56.5 million in prepayments of borrowings, partially offset by
an increase in repayments on loans, repayments on mortgage-backed
securities, and growth in deposits.
Debt securities available for sale increased
$447.9 million, or 34.0%, to $1.8 billion at September 30,
2021 from $1.3 billion at December 31, 2020. The increase was
attributable to purchases of $659.0 million of securities primarily
consisting of U.S. government and agency obligations,
mortgage-backed securities and municipal securities, and $99.6
million in purchases of guarantor swaps with Freddie Mac, partially
offset by maturities, calls and sales of $41.5 million in U.S.
government and agency obligations, corporate debt and municipal
securities, and repayments of $243.1 million. The gross unrealized
gain (loss) on debt securities available for sale decreased by
$24.8 million during the nine months ended September 30,
2021.
Debt securities held to maturity increased
$145.4 million, or 55.3%, to $408.1 million at September 30,
2021 from $262.7 million at December 31, 2020. The increase
was primarily attributable to purchases of $175.5 million of
securities primarily consisting of U.S. agency obligations and
mortgage-backed securities, partially offset by calls of $5.1
million in U.S. agency obligations and repayments of $24.5
million.
Loans receivable, net, decreased $93.1 million,
or 1.5%, to $6.0 billion at September 30, 2021 from $6.1
billion at December 31, 2020. Multi-family and commercial real
estate loans increased $319.5 million, partially offset by
decreases in commercial business loans, one-to-four family real
estate loans, construction loans, and home equity loans and
advances of $302.8 million, $6.5 million, $56.7 million and $57.1
million, respectively. The increase in multi-family and commercial
real estate loans included the purchase of $73.6 million of loan
participations. The decrease in commercial business loans was
mainly due to the sale of $237.0 million in loans granted and
$277.2 in forgiven PPP loans included as part of the Small Business
Administration PPP. The allowance for loan loss balance decreased
$4.4 million to $70.3 million at September 30, 2021 from $74.7
million at December 31, 2020, which was primarily attributable
to a decrease in the balance of loans, a decrease in loan loss
rates, and a decrease in the balance of delinquent and non-accrual
loans, as well as the consideration of improving economic
conditions. The current allowance for loan losses was calculated
utilizing the existing incurred loss methodology. The Company
elected to defer the adoption of the Current Expected Credit Loss
("CECL") methodology as was originally permitted by the CARES Act
and the Consolidated Appropriations Act, 2021, which, when enacted,
extended certain provisions of the CARES Act. The Company expects
to adopt CECL on January 1, 2022.
Other assets increased $35.7 million, or 17.0%,
to $245.6 million at September 30, 2021 from $209.9 million at
December 31, 2020. The increase in other assets consisted of
an increase of $75.1 million in the Company's pension plan balance
based on a revaluation of the plan, coupled with a $35.0 million
contribution which increased the funded status of the Company's
pension plan, partially offset by a decrease of $17.2 million in
the collateral balance related to our swap agreement obligations, a
decrease of $8.2 million in interest rate swap assets, and a
decrease of $10.5 million in deferred taxes.
Total liabilities increased $382.0 million, or
4.9%, to $8.2 billion at September 30, 2021 from $7.8 billion
at December 31, 2020. The increase was primarily attributable
to an increase in total deposits of $443.7 million, or 6.5%,
partially offset by a decrease in borrowings of $49.7 million, or
6.2%, and a decrease in accrued expenses and other liabilities of
$15.5 million, or 8.8%. The increase in total deposits consisted of
increases in non-interest-bearing and interest-bearing demand
deposits of $212.5 million and $262.6 million, respectively, and
money market accounts and savings and club deposits of $48.2
million and $87.4 million, respectively, partially offset by a
decrease in certificates of deposit accounts of $166.9 million. The
decrease in borrowings was primarily driven by the prepayment of
$56.5 million of FHLB borrowings. The decrease in accrued expenses
and other liabilities primarily consisted of a $17.3 million
decrease in interest rate swap liabilities.
Total stockholders’ equity increased $19.6
million, or 1.9%, with a balance of $1.0 billion at both
September 30, 2021 and December 31, 2020. The increase
was primarily attributable to net income of $68.7 million, and a
change in the pension obligation of $33.3 million due to a
revaluation of the plan, partially offset by the repurchase of
4,633,540 shares of common stock totaling $79.1 million under our
stock repurchase program.
Asset Quality
The Company's non-performing loans at
September 30, 2021 totaled $5.3 million, or 0.09% of total
gross loans, as compared to $8.2 million, or 0.13% of total gross
loans, at December 31, 2020. The $2.9 million decrease in
non-performing loans was primarily attributable to decreases of
$646,000 in non-performing one-to-four family real estate loans,
$2.5 million in non-performing commercial business loans, and
$360,000 in non-performing home equity loans and advances,
partially offset by an increase of $560,000 in non-performing
multifamily and commercial real estate loans. The decrease in
non-performing one-to-four family real estate loans was due to a
decrease in the number of loans from 13 non-performing loans at
December 31, 2020 to 11 non-performing loans at September 30,
2021. The decrease in non-performing commercial business loans was
mainly due to charge-offs totaling $1.7 million. The decrease in
non-performing home equity loans and advances was due to a decrease
in the number of loans from 12 non-performing loans at
December 31, 2020 to six non-performing loans at
September 30, 2021. Non-performing assets as a percentage of
total assets totaled 0.06% at September 30, 2021 as compared
to 0.09% at December 31, 2020.
For the quarter ended September 30, 2021,
net charge-offs totaled $53,000 as compared to $397,000 for the
quarter ended September 30, 2020. For the nine months ended
September 30, 2021, net charge-offs totaled $1.8 million as
compared to $3.4 million for the nine months ended
September 30, 2020.
The Company's allowance for loan losses was
$70.3 million, or 1.16% of total loans, at September 30, 2021,
compared to $74.7 million, or 1.21% of total loans, at
December 31, 2020. The decrease in the allowance for loan
losses was primarily attributable to a decrease in the balance of
loans, a decrease in loan loss rates, and a decrease in the balance
of delinquent and non-accrual loans, as well as the consideration
of improving economic conditions.
COVID-19
At September 30, 2021, there were 12 loans
on deferral for $28.0 million, a decrease of $35.8 million,
compared to $63.8 million at June 30, 2021, and a decrease of $57.1
million, compared to $85.1 million at December 31, 2020. These
short-term loan modifications are treated in accordance with
Section 4013 of the CARES Act and are not treated as troubled debt
restructurings during the short-term modification period if the
loan was not in arrears. The Consolidated Appropriations Act, 2021,
which was enacted in late December 2020, extended certain
provisions of the CARES Act, including provisions permitting loan
deferral extension requests to not be treated as troubled debt
restructurings.
At September 30, 2021, three loans totaling
$25.7 million are remitting partial payments.
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. The Bank offers traditional
financial services to consumers and businesses in our market areas.
We currently operate 61 full-services banking offices.
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; 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 the COVID-19 pandemic, including on our credit quality
and business operations, as well as its impact on general economic
and financial market conditions; changes in the value of securities
in the Company’s portfolio; changes in loan default and charge-off
rates; fluctuations in real estate values; the adequacy of loan
loss reserves; decreases in deposit levels necessitating increased
borrowing to fund loans and securities; legislative changes and
changes in government regulation; changes in accounting standards
and practices; the risk that goodwill and intangibles recorded in
the Company’s consolidated financial statements will become
impaired; demand for loans in the Company’s market area; the
Company’s ability to attract and maintain deposits; 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, including the
successful consummation of its pending acquisition of Freehold
Bank, or its integration of acquired financial institutions and
businesses, and changes in assumptions used in making such
forward-looking statements which are subject to numerous risks and
uncertainties, including but not limited to, those set forth in
Item 1A of the Company's Annual Report on Form 10-K and those set
forth in the Company's Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K, all as filed with the Securities and Exchange
Commission (the “SEC”), which are available at the SEC’s website,
www.sec.gov. Should one or more of these risks materialize or
should underlying beliefs or assumptions prove incorrect, the
Company's actual results could differ materially from those
discussed. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
of this release. The Company disclaims any obligation to publicly
update or revise any forward-looking statements to reflect changes
in underlying assumptions or factors, new information, future
events or other changes, except as required by law.
Non-GAAP Financial Measures
Reported amounts are presented in accordance
with U.S. generally accepted accounting principles ("GAAP"). This
press release also contains certain supplemental non-GAAP
information that the Company’s management uses in its analysis of
the Company’s financial results. Specifically, the Company provides
measures based on what it believes are its operating earnings on a
consistent basis, and excludes material non-routine operating items
which affect the GAAP reporting of results of operations. The
Company’s management believes that providing this information to
analysts and investors allows them to better understand and
evaluate the Company’s core financial results for the periods
presented. Because non-GAAP financial measures are not
standardized, it may not be possible to compare these financial
measures with other companies' non-GAAP financial measures having
the same or similar names.
The Company also provides measurements and
ratios based on tangible stockholders' equity. These measures are
commonly utilized by regulators and market analysts to evaluate a
company’s financial condition and, therefore, the Company’s
management believes that such information is useful to
investors.
A reconciliation of GAAP to non-GAAP financial
measures are included at the end of this press release. See
"Reconciliation of GAAP to Non-GAAP Financial Measures".
COLUMBIA FINANCIAL, INC. AND
SUBSIDIARIESConsolidated Statements of Financial
Condition(In thousands)
| |
September 30, |
|
December 31, |
| |
2021 |
|
2020 |
|
Assets |
(Unaudited) |
|
|
|
Cash and due from banks |
$ |
298,359 |
|
|
$ |
422,787 |
|
|
Short-term investments |
129 |
|
|
170 |
|
|
Total cash and cash equivalents |
298,488 |
|
|
422,957 |
|
| |
|
|
|
|
Debt securities available for sale, at fair value |
1,764,866 |
|
|
1,316,952 |
|
|
Debt securities held to maturity, at amortized cost (fair value of
$417,268, and $277,091 at September 30, 2021 and December 31,
2020, respectively) |
408,088 |
|
|
262,720 |
|
|
Equity securities, at fair value |
2,785 |
|
|
5,418 |
|
|
Federal Home Loan Bank stock |
40,891 |
|
|
43,759 |
|
|
Loans held-for-sale, at fair value |
— |
|
|
4,146 |
|
| |
|
|
|
|
Loans receivable |
6,084,294 |
|
|
6,181,770 |
|
|
Less: allowance for loan losses |
70,326 |
|
|
74,676 |
|
|
Loans receivable, net |
6,013,968 |
|
|
6,107,094 |
|
| |
|
|
|
|
Accrued interest receivable |
27,857 |
|
|
29,456 |
|
|
Office properties and equipment, net |
74,426 |
|
|
75,974 |
|
|
Bank-owned life insurance |
237,294 |
|
|
232,824 |
|
|
Goodwill and intangible assets |
85,864 |
|
|
87,384 |
|
|
Other assets |
245,593 |
|
|
209,852 |
|
|
Total assets |
$ |
9,200,120 |
|
|
$ |
8,798,536 |
|
| |
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
| Liabilities: |
|
|
|
|
Deposits |
$ |
7,222,358 |
|
|
$ |
6,778,624 |
|
|
Borrowings |
749,631 |
|
|
799,364 |
|
|
Advance payments by borrowers for taxes and insurance |
36,039 |
|
|
32,570 |
|
|
Accrued expenses and other liabilities |
161,216 |
|
|
176,691 |
|
|
Total liabilities |
8,169,244 |
|
|
7,787,249 |
|
| |
|
|
|
| Stockholders' equity: |
|
|
|
|
Total stockholders' equity |
1,030,876 |
|
|
1,011,287 |
|
|
Total liabilities and stockholders' equity |
$ |
9,200,120 |
|
|
$ |
8,798,536 |
|
|
|
|
|
|
|
|
|
|
COLUMBIA FINANCIAL, INC. AND
SUBSIDIARIESConsolidated Statements of
Income(In thousands, except share and per share
data)
| |
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
| |
2021 |
|
2020 |
|
2021 |
|
2020 |
| Interest income: |
(Unaudited) |
|
(Unaudited) |
|
Loans receivable |
$ |
55,451 |
|
|
|
$ |
63,258 |
|
|
|
$ |
171,902 |
|
|
|
$ |
192,511 |
|
|
Debt securities available for sale and equity securities |
7,622 |
|
|
|
7,034 |
|
|
|
21,521 |
|
|
|
21,654 |
|
|
Debt securities held to maturity |
2,353 |
|
|
|
1,749 |
|
|
|
6,256 |
|
|
|
5,807 |
|
|
Federal funds and interest-earning deposits |
167 |
|
|
|
71 |
|
|
|
310 |
|
|
|
287 |
|
|
Federal Home Loan Bank stock dividends |
460 |
|
|
|
821 |
|
|
|
1,582 |
|
|
|
2,951 |
|
|
Total interest income |
66,053 |
|
|
|
72,933 |
|
|
|
201,571 |
|
|
|
223,210 |
|
| Interest expense: |
|
|
|
|
|
|
|
|
Deposits |
6,673 |
|
|
|
12,826 |
|
|
|
23,403 |
|
|
|
44,569 |
|
|
Borrowings |
2,028 |
|
|
|
3,783 |
|
|
|
5,996 |
|
|
|
15,744 |
|
|
Total interest expense |
8,701 |
|
|
|
16,609 |
|
|
|
29,399 |
|
|
|
60,313 |
|
| |
|
|
|
|
|
|
|
|
Net interest income |
57,352 |
|
|
|
56,324 |
|
|
|
172,172 |
|
|
|
162,897 |
|
| |
|
|
|
|
|
|
|
| Provision for (reversal of)
loan losses |
480 |
|
|
|
2,516 |
|
|
|
(2,561 |
) |
|
|
17,820 |
|
| |
|
|
|
|
|
|
|
|
Net interest income after provision for (reversal of) loan
losses |
56,872 |
|
|
|
53,808 |
|
|
|
174,733 |
|
|
|
145,077 |
|
| |
|
|
|
|
|
|
|
| Non-interest income: |
|
|
|
|
|
|
|
|
Demand deposit account fees |
986 |
|
|
|
787 |
|
|
|
2,682 |
|
|
|
2,706 |
|
|
Bank-owned life insurance |
1,504 |
|
|
|
1,531 |
|
|
|
4,475 |
|
|
|
4,467 |
|
|
Title insurance fees |
1,431 |
|
|
|
1,218 |
|
|
|
4,554 |
|
|
|
3,445 |
|
|
Loan fees and service charges |
844 |
|
|
|
565 |
|
|
|
2,209 |
|
|
|
1,826 |
|
|
Gain on securities transactions |
2,296 |
|
|
|
— |
|
|
|
2,015 |
|
|
|
370 |
|
|
Change in fair value of equity securities |
(443 |
) |
|
|
(4 |
) |
|
|
(1,809 |
) |
|
|
55 |
|
|
Gain on sale of loans |
140 |
|
|
|
1,873 |
|
|
|
10,814 |
|
|
|
3,422 |
|
|
Other non-interest income |
2,116 |
|
|
|
1,939 |
|
|
|
6,920 |
|
|
|
5,017 |
|
|
Total non-interest income |
8,874 |
|
|
|
7,909 |
|
|
|
31,860 |
|
|
|
21,308 |
|
| |
|
|
|
|
|
|
|
| Non-interest expense: |
|
|
|
|
|
|
|
|
Compensation and employee benefits |
24,512 |
|
|
|
26,666 |
|
|
|
71,506 |
|
|
|
76,349 |
|
|
Occupancy |
4,846 |
|
|
|
4,823 |
|
|
|
14,912 |
|
|
|
14,319 |
|
|
Federal deposit insurance premiums |
604 |
|
|
|
614 |
|
|
|
1,751 |
|
|
|
1,350 |
|
|
Advertising |
662 |
|
|
|
484 |
|
|
|
1,860 |
|
|
|
2,075 |
|
|
Professional fees |
1,766 |
|
|
|
1,680 |
|
|
|
5,207 |
|
|
|
4,129 |
|
|
Data processing and software expenses |
2,798 |
|
|
|
2,825 |
|
|
|
8,181 |
|
|
|
7,419 |
|
|
Merger-related expenses |
55 |
|
|
|
424 |
|
|
|
130 |
|
|
|
1,931 |
|
|
Loss on extinguishment of debt |
— |
|
|
|
— |
|
|
|
742 |
|
|
|
— |
|
|
Other non-interest expense |
1,809 |
|
|
|
3,862 |
|
|
|
8,076 |
|
|
|
9,757 |
|
|
Total non-interest expense |
37,052 |
|
|
|
41,378 |
|
|
|
112,365 |
|
|
|
117,329 |
|
| |
|
|
|
|
|
|
|
|
Income before income tax expense |
28,694 |
|
|
|
20,339 |
|
|
|
94,228 |
|
|
|
49,056 |
|
| |
|
|
|
|
|
|
|
|
Income tax expense |
7,712 |
|
|
|
5,252 |
|
|
|
25,513 |
|
|
|
12,107 |
|
| |
|
|
|
|
|
|
|
|
Net income |
$ |
20,982 |
|
|
|
$ |
15,087 |
|
|
|
$ |
68,715 |
|
|
|
$ |
36,949 |
|
| |
|
|
|
|
|
|
|
| Earnings per share-basic and
diluted |
$ |
0.20 |
|
|
|
$ |
0.14 |
|
|
|
$ |
0.66 |
|
|
|
$ |
0.34 |
|
| Weighted average shares
outstanding-basic and diluted |
102,977,254 |
|
|
|
110,983,871 |
|
|
|
104,486,520 |
|
|
|
110,177,736 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA FINANCIAL, INC. AND
SUBSIDIARIESAverage Balances/Yields
| |
For the Three Months Ended September 30, |
| |
2021 |
|
2020 |
| |
Average Balance |
|
Interest and Dividends |
|
Yield / Cost |
|
Average Balance |
|
Interest and Dividends |
|
Yield / Cost |
| |
(Dollars in thousands) |
| Interest-earnings assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
6,008,998 |
|
|
$ |
55,451 |
|
|
3.66 |
% |
|
$ |
6,544,206 |
|
|
$ |
63,258 |
|
|
3.85 |
% |
|
Securities |
2,049,806 |
|
|
9,975 |
|
|
1.93 |
% |
|
1,467,497 |
|
|
8,783 |
|
|
2.38 |
% |
|
Other interest-earning assets |
457,880 |
|
|
627 |
|
|
0.54 |
% |
|
281,361 |
|
|
892 |
|
|
1.26 |
% |
| Total interest-earning
assets |
8,516,684 |
|
|
66,053 |
|
|
3.08 |
% |
|
8,293,064 |
|
|
72,933 |
|
|
3.50 |
% |
| Non-interest-earning
assets |
671,537 |
|
|
|
|
|
|
632,474 |
|
|
|
|
|
| Total assets |
$ |
9,188,221 |
|
|
|
|
|
|
$ |
8,925,538 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
$ |
2,441,575 |
|
|
$ |
2,003 |
|
|
0.33 |
% |
|
$ |
2,016,953 |
|
|
$ |
2,608 |
|
|
0.51 |
% |
|
Money market accounts |
650,968 |
|
|
486 |
|
|
0.30 |
% |
|
520,723 |
|
|
572 |
|
|
0.44 |
% |
|
Savings and club deposits |
763,717 |
|
|
213 |
|
|
0.11 |
% |
|
647,608 |
|
|
261 |
|
|
0.16 |
% |
|
Certificates of deposit |
1,802,698 |
|
|
3,971 |
|
|
0.87 |
% |
|
2,116,748 |
|
|
9,385 |
|
|
1.76 |
% |
| Total interest-bearing
deposits |
5,658,958 |
|
|
6,673 |
|
|
0.47 |
% |
|
5,302,032 |
|
|
12,826 |
|
|
0.96 |
% |
|
FHLB advances |
742,261 |
|
|
1,967 |
|
|
1.05 |
% |
|
1,050,422 |
|
|
3,606 |
|
|
1.37 |
% |
|
Subordinated notes |
— |
|
|
— |
|
|
— |
% |
|
12,362 |
|
|
112 |
|
|
3.60 |
% |
|
Junior subordinated debentures |
7,404 |
|
|
61 |
|
|
3.27 |
% |
|
7,975 |
|
|
65 |
|
|
3.24 |
% |
| Total borrowings |
749,665 |
|
|
2,028 |
|
|
1.07 |
% |
|
1,070,759 |
|
|
3,783 |
|
|
1.41 |
% |
| Total interest-bearing
liabilities |
6,408,623 |
|
|
$ |
8,701 |
|
|
0.54 |
% |
|
6,372,791 |
|
|
$ |
16,609 |
|
|
1.04 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
1,540,431 |
|
|
|
|
|
|
1,293,182 |
|
|
|
|
|
|
Other non-interest-bearing liabilities |
204,473 |
|
|
|
|
|
|
209,772 |
|
|
|
|
|
| Total liabilities |
8,153,527 |
|
|
|
|
|
|
7,875,745 |
|
|
|
|
|
| Total stockholders'
equity |
1,034,694 |
|
|
|
|
|
|
1,049,793 |
|
|
|
|
|
| Total liabilities and
stockholders' equity |
$ |
9,188,221 |
|
|
|
|
|
|
$ |
8,925,538 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
|
$ |
57,352 |
|
|
|
|
|
|
$ |
56,324 |
|
|
|
| Interest rate spread |
|
|
|
|
2.54 |
% |
|
|
|
|
|
2.46 |
% |
| Net interest-earning
assets |
$ |
2,108,061 |
|
|
|
|
|
|
$ |
1,920,273 |
|
|
|
|
|
| Net interest margin |
|
|
|
|
2.67 |
% |
|
|
|
|
|
2.70 |
% |
| Ratio of interest-earning
assets to interest-bearing liabilities |
132.89 |
% |
|
|
|
|
|
130.13 |
% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA FINANCIAL, INC. AND
SUBSIDIARIESAverage Balances/Yields
| |
For the Nine Months Ended September 30, |
| |
2021 |
|
2020 |
| |
Average Balance |
|
Interest and Dividends |
|
Yield / Cost |
|
Average Balance |
|
Interest and Dividends |
|
Yield / Cost |
| |
(Dollars in thousands) |
| Interest-earnings assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
6,130,944 |
|
|
$ |
171,902 |
|
|
3.75 |
% |
|
$ |
6,457,681 |
|
|
$ |
192,511 |
|
|
3.98 |
% |
|
Securities |
1,891,023 |
|
|
27,777 |
|
|
1.96 |
% |
|
1,437,708 |
|
|
27,461 |
|
|
2.55 |
% |
|
Other interest-earning assets |
359,438 |
|
|
1,892 |
|
|
0.70 |
% |
|
176,627 |
|
|
3,238 |
|
|
2.45 |
% |
| Total interest-earning
assets |
8,381,405 |
|
|
201,571 |
|
|
3.22 |
% |
|
8,072,016 |
|
|
223,210 |
|
|
3.69 |
% |
| Non-interest-earning
assets |
634,494 |
|
|
|
|
|
|
615,698 |
|
|
|
|
|
| Total assets |
$ |
9,015,899 |
|
|
|
|
|
|
$ |
8,687,714 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
$ |
2,343,718 |
|
|
$ |
6,234 |
|
|
0.36 |
% |
|
$ |
1,878,890 |
|
|
$ |
10,292 |
|
|
0.73 |
% |
|
Money market accounts |
627,188 |
|
|
1,536 |
|
|
0.33 |
% |
|
475,376 |
|
|
2,287 |
|
|
0.64 |
% |
|
Savings and club deposits |
739,272 |
|
|
612 |
|
|
0.11 |
% |
|
608,259 |
|
|
755 |
|
|
0.17 |
% |
|
Certificates of deposit |
1,855,582 |
|
|
15,021 |
|
|
1.08 |
% |
|
2,116,831 |
|
|
31,235 |
|
|
1.97 |
% |
| Total interest-bearing
deposits |
5,565,760 |
|
|
23,403 |
|
|
0.56 |
% |
|
5,079,356 |
|
|
44,569 |
|
|
1.17 |
% |
|
FHLB advances |
736,365 |
|
|
5,813 |
|
|
1.06 |
% |
|
1,183,068 |
|
|
15,062 |
|
|
1.70 |
% |
|
Subordinated notes |
— |
|
|
— |
|
|
— |
% |
|
15,573 |
|
|
448 |
|
|
3.84 |
% |
|
Junior subordinated debentures |
7,480 |
|
|
183 |
|
|
3.27 |
% |
|
7,729 |
|
|
230 |
|
|
3.97 |
% |
|
Other borrowings |
— |
|
|
— |
|
|
— |
% |
|
2,555 |
|
|
4 |
|
|
0.21 |
% |
| Total borrowings |
743,845 |
|
|
5,996 |
|
|
1.08 |
% |
|
1,208,925 |
|
|
15,744 |
|
|
1.74 |
% |
| Total interest-bearing
liabilities |
6,309,605 |
|
|
$ |
29,399 |
|
|
0.62 |
% |
|
6,288,281 |
|
|
$ |
60,313 |
|
|
1.28 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
1,480,315 |
|
|
|
|
|
|
1,178,190 |
|
|
|
|
|
|
Other non-interest-bearing liabilities |
210,349 |
|
|
|
|
|
|
200,947 |
|
|
|
|
|
| Total liabilities |
8,000,269 |
|
|
|
|
|
|
7,667,418 |
|
|
|
|
|
| Total stockholders'
equity |
1,015,630 |
|
|
|
|
|
|
1,020,296 |
|
|
|
|
|
| Total liabilities and
stockholders' equity |
$ |
9,015,899 |
|
|
|
|
|
|
$ |
8,687,714 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
|
$ |
172,172 |
|
|
|
|
|
|
$ |
162,897 |
|
|
|
| Interest rate spread |
|
|
|
|
2.60 |
% |
|
|
|
|
|
2.41 |
% |
| Net interest-earning
assets |
$ |
2,071,800 |
|
|
|
|
|
|
$ |
1,783,735 |
|
|
|
|
|
| Net interest margin |
|
|
|
|
2.75 |
% |
|
|
|
|
|
2.70 |
% |
| Ratio of interest-earning
assets to interest-bearing liabilities |
132.84 |
% |
|
|
|
|
|
128.37 |
% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA FINANCIAL, INC. AND
SUBSIDIARIESComponents of Net Interest Rate Spread
and Margin
| |
Average Yields/Costs by Quarter |
| |
September 30,2021 |
|
June 30,2021 |
|
March 31,2021 |
|
December 31,2020 |
|
September 30,2020 |
| Yield on
interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
Loans |
3.66 |
% |
|
3.72 |
% |
|
3.87 |
% |
|
3.97 |
% |
|
3.85 |
% |
| Securities |
1.93 |
|
|
1.93 |
|
|
2.05 |
|
|
2.30 |
|
|
2.38 |
|
| Other interest-earning
assets |
0.54 |
|
|
1.24 |
|
|
0.67 |
|
|
0.68 |
|
|
1.26 |
|
| Total interest-earning
assets |
3.08 |
% |
|
3.24 |
% |
|
3.34 |
% |
|
3.47 |
% |
|
3.50 |
% |
| |
|
|
|
|
|
|
|
|
|
| Cost of
interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
| Total interest-bearing
deposits |
0.47 |
% |
|
0.57 |
% |
|
0.66 |
% |
|
0.78 |
% |
|
0.96 |
% |
| Total borrowings |
1.07 |
|
|
1.07 |
|
|
1.09 |
|
|
1.32 |
|
|
1.41 |
|
| Total interest-bearing
liabilities |
0.54 |
% |
|
0.62 |
% |
|
0.71 |
% |
|
0.86 |
% |
|
1.04 |
% |
| |
|
|
|
|
|
|
|
|
|
| Interest rate spread |
2.54 |
% |
|
2.62 |
% |
|
2.63 |
% |
|
2.61 |
% |
|
2.46 |
% |
| Net interest margin |
2.67 |
% |
|
2.77 |
% |
|
2.80 |
% |
|
2.81 |
% |
|
2.70 |
% |
| |
|
|
|
|
|
|
|
|
|
| Ratio of interest-earning
assets to interest-bearing liabilities |
132.89 |
% |
|
133.53 |
% |
|
132.06 |
% |
|
130.35 |
% |
|
130.13 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA FINANCIAL, INC. AND
SUBSIDIARIESSelected Financial
Highlights
| |
|
|
|
|
|
|
|
| |
For the Three Months EndedSeptember 30, |
|
For the Nine Months EndedSeptember 30, |
| |
2021 |
|
2020 |
|
2021 |
|
2020 |
| SELECTED FINANCIAL
RATIOS (1): |
|
|
|
|
|
|
|
|
Return on average assets |
0.91 |
% |
|
0.67 |
% |
|
1.02 |
% |
|
0.57 |
% |
|
Core return on average assets |
0.83 |
% |
|
0.79 |
% |
|
1.01 |
% |
|
0.64 |
% |
| Return on average equity |
8.05 |
% |
|
5.72 |
% |
|
9.05 |
% |
|
4.84 |
% |
|
Core return on average equity |
7.42 |
% |
|
6.68 |
% |
|
8.99 |
% |
|
5.39 |
% |
|
Core return on average tangible equity |
8.07 |
% |
|
7.34 |
% |
|
9.81 |
% |
|
5.90 |
% |
| Interest rate spread |
2.54 |
% |
|
2.46 |
% |
|
2.60 |
% |
|
2.41 |
% |
| Net interest margin |
2.67 |
% |
|
2.70 |
% |
|
2.75 |
% |
|
2.70 |
% |
| Non-interest income to average
assets |
0.38 |
% |
|
0.31 |
% |
|
0.47 |
% |
|
0.21 |
% |
| Non-interest expense to
average assets |
1.60 |
% |
|
1.84 |
% |
|
1.67 |
% |
|
1.80 |
% |
| Efficiency ratio |
55.95 |
% |
|
64.42 |
% |
|
55.07 |
% |
|
63.69 |
% |
|
Core efficiency ratio |
57.89 |
% |
|
59.06 |
% |
|
54.92 |
% |
|
60.49 |
% |
| Average interest-earning
assets to average interest-bearing liabilities |
132.89 |
% |
|
130.13 |
% |
|
132.84 |
% |
|
128.37 |
% |
| Net charge-offs to average
outstanding loans |
— |
% |
|
0.02 |
% |
|
0.04 |
% |
|
0.07 |
% |
| |
|
|
|
|
|
|
|
| (1) Ratios for the
three and nine months are annualized when appropriate. |
|
|
|
|
|
|
| CAPITAL
RATIOS: |
|
|
|
| |
September 30, |
|
December 31, |
| |
2021 |
|
2020 |
| Company: |
|
|
|
|
Total capital (to risk-weighted assets) |
16.82 |
% |
|
18.54 |
% |
| Tier 1 capital (to
risk-weighted assets) |
15.71 |
% |
|
17.29 |
% |
| Common equity tier 1 capital
(to risk-weighted assets) |
15.60 |
% |
|
17.17 |
% |
| Tier 1 capital (to adjusted
total assets) |
11.02 |
% |
|
11.38 |
% |
| |
|
|
|
| Bank: |
|
|
|
| Total capital (to
risk-weighted assets) |
16.36 |
% |
|
16.05 |
% |
| Tier 1 capital (to
risk-weighted assets) |
15.21 |
% |
|
14.80 |
% |
| Common equity tier 1 capital
(to risk-weighted assets) |
15.21 |
% |
|
14.80 |
% |
| Tier 1 capital (to adjusted
total assets) |
10.30 |
% |
|
9.72 |
% |
| |
|
|
|
|
|
| ASSET
QUALITY: |
|
|
|
| |
September 30, |
|
December 31, |
| |
2021 |
|
2020 |
| |
(Dollars in thousands) |
|
Non-accrual loans |
$ |
5,266 |
|
|
$ |
8,156 |
|
| 90+ and still accruing |
— |
|
|
— |
|
| Non-performing loans |
5,266 |
|
|
8,156 |
|
| Real estate owned |
— |
|
|
— |
|
|
Total non-performing assets |
$ |
5,266 |
|
|
$ |
8,156 |
|
| |
|
|
|
| Non-performing loans to total
gross loans |
0.09 |
% |
|
0.13 |
% |
| Non-performing assets to total
assets |
0.06 |
% |
|
0.09 |
% |
| Allowance for loan losses |
$ |
70,326 |
|
|
$ |
74,676 |
|
| Allowance for loan losses to
total non-performing loans |
1,335.47 |
% |
|
915.60 |
% |
| Allowance for loan losses to
gross loans |
1.16 |
% |
|
1.21 |
% |
| Allowance for loan losses to
gross loans, excluding SBA PPP loans |
1.17 |
% |
|
1.28 |
% |
| Unamortized purchase
accounting fair value credit marks on acquired loans |
$ |
4,668 |
|
|
$ |
6,486 |
|
| |
|
|
|
|
|
|
|
| LOAN
DATA: |
|
|
|
| |
September 30, |
|
December 31, |
| |
2021 |
|
2020 |
| Real estate loans: |
(In thousands) |
|
One-to-four family |
$ |
1,933,876 |
|
|
|
$ |
1,940,327 |
|
|
|
Multifamily and commercial |
3,137,461 |
|
|
|
2,817,965 |
|
|
|
Construction |
272,004 |
|
|
|
328,711 |
|
|
| Commercial business loans
* |
450,021 |
|
|
|
752,870 |
|
|
| Consumer loans: |
|
|
|
|
Home equity loans and advances |
264,111 |
|
|
|
321,177 |
|
|
|
Other consumer loans |
1,772 |
|
|
|
1,497 |
|
|
|
Total gross loans |
6,059,245 |
|
|
|
6,162,547 |
|
|
| Purchased credit-impaired
("PCI") loans |
2,994 |
|
|
|
6,345 |
|
|
| Net deferred loan costs, fees
and purchased premiums and discounts ** |
22,055 |
|
|
|
12,878 |
|
|
| Allowance for loan losses |
(70,326 |
) |
|
|
(74,676 |
) |
|
|
Loans receivable, net |
$ |
6,013,968 |
|
|
|
$ |
6,107,094 |
|
|
| |
|
|
|
| * At
September 30, 2021 and December 31, 2020 includes SBA PPP
loans totaling $69.2 million and $344.4 million, respectively. |
| ** At
September 30, 2021 and December 31, 2020 includes SBA PPP
net deferred loan fees totaling $1.9 million and $6.6 million,
respectively. |
|
Reconciliation of GAAP to Non-GAAP Financial
Measures |
| |
|
|
|
|
|
| Book and
Tangible Book Value per Share |
| |
|
|
September 30, |
|
December 31, |
| |
|
|
2021 |
|
2020 |
| |
|
|
|
|
|
|
Total stockholders' equity |
|
|
$ |
1,030,876 |
|
|
|
$ |
1,011,287 |
|
|
| Less: goodwill |
|
|
(79,220 |
) |
|
|
(80,285 |
) |
|
| Less: core deposit
intangible |
|
|
(5,423 |
) |
|
|
(6,197 |
) |
|
| Total tangible stockholders'
equity |
|
|
$ |
946,233 |
|
|
|
$ |
924,805 |
|
|
| |
|
|
|
|
|
| Shares outstanding |
|
|
106,297,899 |
|
|
|
110,939,753 |
|
|
| |
|
|
|
|
|
| Book value per share |
|
|
$ |
9.70 |
|
|
|
$ |
9.12 |
|
|
| Tangible book value per
share |
|
|
$ |
8.90 |
|
|
|
$ |
8.34 |
|
|
| Reconciliation of Core
Net Income |
|
|
|
|
|
|
|
| |
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember 30, |
| |
2021 |
|
2020 |
|
2021 |
|
2020 |
| |
(In thousands) |
| |
|
|
|
|
|
|
|
|
Net income |
$ |
20,982 |
|
|
|
$ |
15,087 |
|
|
$ |
68,715 |
|
|
|
$ |
36,949 |
|
|
| Less: gain on securities
transactions, net of tax |
(1,679 |
) |
|
|
— |
|
|
(1,474 |
) |
|
|
(279 |
) |
|
| Add: voluntary early
retirement plan expenses, net of tax |
— |
|
|
|
2,273 |
|
|
— |
|
|
|
2,273 |
|
|
| Add: merger-related expenses,
net of tax |
40 |
|
|
|
316 |
|
|
95 |
|
|
|
1,500 |
|
|
| Add: loss on extinguishment of
debt, net of tax |
— |
|
|
|
— |
|
|
540 |
|
|
|
— |
|
|
| Less/Add: branch closure
(credit) expense, net of tax |
(10 |
) |
|
|
— |
|
|
410 |
|
|
|
878 |
|
|
| Core net income |
$ |
19,333 |
|
|
|
$ |
17,676 |
|
|
$ |
68,286 |
|
|
|
$ |
41,321 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial Measures
(continued)
| Return on Average
Assets |
|
|
|
|
|
|
|
| |
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember
30, |
| |
2021 |
|
2020 |
|
2021 |
|
2020 |
| |
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
|
Net income |
$ |
20,982 |
|
|
$ |
15,087 |
|
|
$ |
68,715 |
|
|
$ |
36,949 |
|
| |
|
|
|
|
|
|
|
| Average assets |
$ |
9,188,221 |
|
|
$ |
8,925,538 |
|
|
$ |
9,015,899 |
|
|
$ |
8,687,714 |
|
| |
|
|
|
|
|
|
|
| Return on average assets |
0.91 |
% |
|
0.67 |
% |
|
1.02 |
% |
|
0.57 |
% |
| |
|
|
|
|
|
|
|
| Core net income |
$ |
19,333 |
|
|
$ |
17,676 |
|
|
$ |
68,286 |
|
|
$ |
41,321 |
|
| |
|
|
|
|
|
|
|
| Core return on average
assets |
0.83 |
% |
|
0.79 |
% |
|
1.01 |
% |
|
0.64 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Return on Average
Equity |
|
|
|
|
|
|
|
| |
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember
30, |
| |
2021 |
|
2020 |
|
2021 |
|
2020 |
| |
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
|
Total average stockholders' equity |
$ |
1,034,694 |
|
|
|
$ |
1,049,793 |
|
|
$ |
1,015,630 |
|
|
|
$ |
1,020,296 |
|
|
| Less: gain on securities
transactions, net of tax |
(1,679 |
) |
|
|
— |
|
|
(1,474 |
) |
|
|
(279 |
) |
|
| Add: voluntary early
retirement plan expenses, net of tax |
— |
|
|
|
2,273 |
|
|
— |
|
|
|
2,273 |
|
|
| Add: merger-related expenses,
net of tax |
40 |
|
|
|
316 |
|
|
95 |
|
|
|
1,500 |
|
|
| Add: loss on extinguishment of
debt, net of tax |
— |
|
|
|
— |
|
|
540 |
|
|
|
— |
|
|
| Less/Add: branch closure
(credit) expense, net of tax |
(10 |
) |
|
|
— |
|
|
410 |
|
|
|
878 |
|
|
| Core average stockholders'
equity |
$ |
1,033,045 |
|
|
|
$ |
1,052,382 |
|
|
$ |
1,015,201 |
|
|
|
$ |
1,024,668 |
|
|
| |
|
|
|
|
|
|
|
| Return on average equity |
8.05 |
|
% |
|
5.72 |
% |
|
9.05 |
|
% |
|
4.84 |
|
% |
| |
|
|
|
|
|
|
|
| Core return on core average
equity |
7.42 |
|
% |
|
6.68 |
% |
|
8.99 |
|
% |
|
5.39 |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial Measures
(continued)
| Return on
Average Tangible Equity |
|
|
|
|
| |
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember
30, |
| |
2021 |
|
2020 |
|
2021 |
|
2020 |
| |
|
|
|
|
|
|
|
|
Total average stockholders' equity |
$ |
1,034,694 |
|
|
|
$ |
1,049,793 |
|
|
|
$ |
1,015,630 |
|
|
|
$ |
1,020,296 |
|
|
| Less: average goodwill |
(79,220 |
) |
|
|
(85,426 |
) |
|
|
(79,446 |
) |
|
|
(77,653 |
) |
|
| Less: average core deposit
intangible |
(5,590 |
) |
|
|
(6,638 |
) |
|
|
(5,842 |
) |
|
|
(6,904 |
) |
|
| Total average tangible
stockholders' equity |
$ |
949,884 |
|
|
|
$ |
957,729 |
|
|
|
$ |
930,342 |
|
|
|
$ |
935,739 |
|
|
| |
|
|
|
|
|
|
|
| Core return on average
tangible equity |
8.07 |
|
% |
|
7.34 |
|
% |
|
9.81 |
|
% |
|
5.90 |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency
Ratios |
|
|
|
|
|
|
|
| |
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember
30, |
| |
2021 |
|
2020 |
|
2021 |
|
2020 |
| |
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
|
Net interest income |
$ |
57,352 |
|
|
|
$ |
56,324 |
|
|
|
$ |
172,172 |
|
|
|
$ |
162,897 |
|
|
| Non-interest income |
8,874 |
|
|
|
7,909 |
|
|
|
31,860 |
|
|
|
21,308 |
|
|
| Total income |
$ |
66,226 |
|
|
|
$ |
64,233 |
|
|
|
$ |
204,032 |
|
|
|
$ |
184,205 |
|
|
| |
|
|
|
|
|
|
|
| Non-interest expense |
$ |
37,052 |
|
|
|
$ |
41,378 |
|
|
|
$ |
112,365 |
|
|
|
$ |
117,329 |
|
|
| |
|
|
|
|
|
|
|
| Efficiency ratio |
55.95 |
|
% |
|
64.42 |
|
% |
|
55.07 |
|
% |
|
63.69 |
|
% |
| |
|
|
|
|
|
|
|
| Non-interest income |
$ |
8,874 |
|
|
|
$ |
7,909 |
|
|
|
$ |
31,860 |
|
|
|
$ |
21,308 |
|
|
| Less: gain on securities
transactions |
(2,296 |
) |
|
|
— |
|
|
|
(2,015 |
) |
|
|
(370 |
) |
|
| Core non-interest income |
$ |
6,578 |
|
|
|
$ |
7,909 |
|
|
|
$ |
29,845 |
|
|
|
$ |
20,938 |
|
|
| |
|
|
|
|
|
|
|
| Non-interest expense |
$ |
37,052 |
|
|
|
$ |
41,378 |
|
|
|
$ |
112,365 |
|
|
|
$ |
117,329 |
|
|
| Less: voluntary early
retirement plan expenses |
— |
|
|
|
(3,018 |
) |
|
|
— |
|
|
|
(3,018 |
) |
|
| Less: merger-related
expenses |
(55 |
) |
|
|
(424 |
) |
|
|
(130 |
) |
|
|
(1,931 |
) |
|
| Less: loss on extinguishment
of debt |
— |
|
|
|
— |
|
|
|
(742 |
) |
|
|
— |
|
|
| Add/Less: branch closure
(credit) expense |
14 |
|
|
|
— |
|
|
|
(548 |
) |
|
|
(1,170 |
) |
|
| Core non-interest expense |
$ |
37,011 |
|
|
|
$ |
37,936 |
|
|
|
$ |
110,945 |
|
|
|
$ |
111,210 |
|
|
| |
|
|
|
|
|
|
|
| Core efficiency ratio |
57.89 |
|
% |
|
59.06 |
|
% |
|
54.92 |
|
% |
|
60.49 |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact: Tony
Rose1st Senior
Vice President/Marketing
Director201-794-5828
Columbia Financial (NASDAQ:CLBK)
Historical Stock Chart
From Jun 2024 to Jul 2024
Columbia Financial (NASDAQ:CLBK)
Historical Stock Chart
From Jul 2023 to Jul 2024
