EX-99.1 2 exhibit991063020181.htm EXHIBIT 99.1 Exhibit


Columbia Financial, Inc. Announces Second Quarter Earnings

Fair Lawn, New Jersey (July 26, 2018): Columbia Financial, Inc. (the “Company”) (NASDAQ: CLBK) reported a net loss of $14.7 million for the three months ended June 30, 2018, compared to net income of $9.3 million for the three months ended June 30, 2017. The quarterly earnings reflects $34.8 million of expense related to the contribution of 3% of the Company's outstanding common stock to the Columbia Bank Foundation as we previously disclosed in the prospectus relating to our minority stock offering. Excluding the charitable contribution, core net income would have been $12.7 million for the three months ended June 30, 2018, an increase of 35.8% as compared to the same period ended June 30, 2017.

Mr. Thomas J. Kemly, President and Chief Executive Officer commented: "The contribution of stock to our charitable foundation will provide the necessary future funding for charitable causes and community development activities. This contribution demonstrates our unwavering commitment to supporting the local communities that we serve".

For the six months ended June 30, 2018, the Company reported a net loss of $3.0 million, compared to net income of $19.6 million for the six months ended June 30, 2017. The decrease in earnings for the six month period is driven by the increase in charitable contribution expense as discussed above. Excluding the charitable contribution, core net income would have been $24.5 million for the six months ended June 30, 2018, an increase of 23.4% as compared to the same period ending June 30, 2017.

Mr. Kemly also commented: "With the recent minority stock offering now behind us, we are intently focused on executing on our growth strategy and deploying the newly acquired capital in a measured and controlled fashion. We experienced solid growth in our balance sheet and realized strong core earnings for the quarter while maintaining the desired asset quality and achieving other targeted performance measures."


Results of Operations for the Three Months Ended June 30, 2018 and June 30, 2017

A net loss of $14.7 million was recorded for the three months ended June 30, 2018, compared to net income of $9.3 million for the three months ended June 30, 2017. The decrease of $24.0 million was primarily attributable to the above-noted $34.8 million expense related to the contribution of shares of the Company's common stock to our charitable foundation coupled with a $2.0 million increase in the provision for loan losses. These expenses were partially offset by a $5.4 million increase in net interest income and an $8.9 million decrease in income tax expense.
The Company’s net interest income was $41.0 million for the quarter ended June 30, 2018, an increase of $5.4 million, or 15.1% from $35.6 million for the quarter ended June 30, 2017. The increase in net interest income was attributable to an $8.2 million increase in interest and dividend income which was partially offset by a $2.8 million increase in interest expense.

The increase in interest and dividend income for the three month period was largely due to a $308.6 million increase in average loans, a $500.2 million increase in average investment securities and a $104.7 million increase in other interest earning assets. The increase in other interest earning assets was largely due to the increase in excess cash reserves for the majority of the month of April related to the subscriptions for the minority stock offering.
The yield on total average earning assets decreased two basis points due to the growth in lower yielding excess cash reserves as a percentage of the earning asset mix. The yield on average loans increased seven basis points while the yield on investment securities increased 11 basis points for the quarter ended June 30, 2018 as compared with the quarter ended June 30, 2017.
The $2.8 million increase in interest expense on deposits was largely the result of a $536.0 million increase in the average balance of interest bearing deposits combined with a 19 basis point increase in the cost of deposits. Interest expense related to junior subordinated debt increased as the Company has completed all steps required to call the debt during the third quarter of 2018 and therefore accelerated the amortization of deferred issuance costs.



The Company's net interest margin for the quarter ended June 30, 2018 decreased seven basis points to 2.76% when compared to 2.83% for the quarter ended June 30, 2017. The weighted average yield on interest-earning assets decreased two basis points to 3.70% for the quarter ended June 30, 2018 compared with 3.72% for the quarter ended June 30, 2017. The cost of average total interest bearing liabilities increased 11 basis points to 1.20% for the quarter ended June 30, 2018 as compared to 1.09% for the quarter ended June 30, 2017.
The provision for loan losses was $2.4 million for the quarter ended June 30, 2018, an increase of approximately $2.0 million from $375 thousand for the quarter ended June 30, 2017. The increase was primarily driven by loan growth during the period and changes in certain credit metrics.
Non-interest income was $5.4 million for the quarter ended June 30, 2018, an increase of $642 thousand or 13.5% from $4.8 million for the quarter ended June 30, 2017. Income from bank-owned life insurance increased $434 thousand as a result of one-time gains associated with life insurance proceeds during the three months ended June 30, 2018. Title insurance fees were higher by $306 thousand as a result of increased activity during the quarter.
Non-interest expense was $61.7 million for the quarter ended June 30, 2018, an increase of $36.9 million, or 148.6%, from $24.8 million for the quarter ended June 30, 2017. The increase was driven primarily by the previously noted one-time $34.8 million contribution of common stock of Columbia Financial, Inc. to the Columbia Bank Foundation. In addition, compensation and employee benefit expenses increased $1.4 million as a result of the newly created Employee Stock Ownership Plan, several strategic hires and annual merit increases and incentives for staff.
Income tax benefit was $3.0 million for the quarter ended June 30, 2018 as compared to $5.9 million of tax expense for the quarter ended June 30, 2017.

Results of Operations for the Six Months Ended June 30, 2018 and June 30, 2017

For the six months ended June 30, 2018, earnings decreased $22.5 million to a loss of $3.0 million, compared to income of $19.6 million for the six months ended June 30, 2017. The decrease was primarily attributable to the previously noted one-time contribution of the Company's stock to our charitable foundation and related tax benefit associated with the contribution and a $3.6 million increase in the provision for loan losses, partially offset by a $9.7 million increase in net interest income.

Net interest income was $80.1 million for the six month period ended June 30, 2018, an increase of $9.7 million, or 13.7% from $70.4 million for the six months ended June 30, 2017. The increase in net interest income was attributable to a $14.5 million increase in interest and dividend income which was partially offset by a $4.9 million increase in interest expense.

The increase in interest and dividend income for the six month period was primarily the result of a $293.8 million increase in average loans, a $418.7 million increase in average investment securities and a $107.5 million increase in other interest earning assets. The increase in other interest earning assets was largely due to the increase in excess cash reserves related to the subscriptions for the minority stock offering.
The yield on total average earning assets decreased two basis points due to the growth in lower yielding excess cash reserves as a percentage of the earning asset mix. The yield on average loans increased six basis points while the yield on investment securities increased 13 basis points for the six months ended June 30, 2018 as compared with the same period ended June 30, 2017.
For the six months ended June 30, 2018, interest expense on deposits was $17.3 million, an increase of $4.8 million or 38.9% from $12.5 million for the six months ended June 30, 2017, driven by a $530.7 million increase in the average balance of total interest bearing deposits coupled with a 14 basis point increase in the cost of deposits. Total borrowings increased by $62.0 million in average balances while the average cost of borrowings declined by 19 basis points. The reduced cost of average borrowings resulted from the maturity of higher rate borrowings. Interest expense related to the junior subordinated debt increased as the
Company completed all steps required to call the debt during the third quarter of 2018 and therefore accelerated the amortization of deferred issuance costs.



The Company's net interest margin for the six month period ended June 30, 2018 decreased seven basis points to 2.78% compared with 2.85% for the six months ended June 30, 2017. The weighted average yield on interest-earning assets decreased two basis points to 3.71% for the six months ended June 30, 2018 compared with 3.73% for the six months ended June 30, 2017. The cost of average total interest bearing liabilities increased eight basis points to 1.15% for the six months ended June 30, 2018 compared with 1.07% for the six months ended June 30, 2017.
For the six months ended June 30, 2018 the provision for loan losses expense was $4.4 million, an increase of $3.6 million from $751 thousand for the six months ended June 30, 2017. The increase was primarily driven by loan growth during the period and changes in certain credit metrics.
Non-interest income was $9.9 million for the six month period ended June 30, 2018, a decrease of $615 thousand, or 5.8% from $10.5 million for the six months ended June 30, 2017. Income from bank-owned life insurance decreased approximately $201 thousand as a result of higher gains associated with life insurance proceeds recognized during the six months ended June 30, 2017.
For the six months ended June 30, 2018 non-interest expense was $87.7 million, an increase of $38.0 million, or 76.5% from $49.7 million for the six months ended June 30, 2017. The increase was driven primarily by the above noted $34.8 million contribution of common stock of Columbia Financial, Inc. to the Columbia Bank Foundation. In addition, compensation and employee benefit expenses increased $2.0 million as a result of newly created Employee Stock Ownership Plan, several strategic hires and annual merit increases and incentives for staff.
Income tax expense was $844 thousand for the six months ended June 30, 2018 as compared to $10.9 million of tax expense for the same period ended June 30, 2017.


Balance Sheet Summary

Total assets increased approximately $510.9 million, or 8.9%, to $6.3 billion at June 30, 2018 from $5.8 billion at December 31, 2017. The increase in total assets was primarily attributed to the increases in loans receivable, net of $248.6 million and available-for-sale securities of $221.5 million. Growth was funded primarily by $492.4 million of net proceeds from the minority stock offering.

Securities available-for-sale increased $221.5 million to $932.1 million at June 30, 2018 from $710.6 million at December 31, 2017. Securities held-to-maturity increased $15.2 million to $254.8 million at June 30, 2018 from $239.6 million at December 31, 2017.

Loans receivable, net increased $248.6 million to $4.6 billion at June 30, 2018 from $4.4 billion at December 31, 2017. One-to-four family, multifamily and commercial, construction loans and C&I lending contributed $146.9 million, $100.6 million, $21.2 million and $14.1 million to the growth, respectively. Home equity loans and advances declined $33.6 million between June 30, 2018 and December 31, 2017.

Total liabilities increased $41.7 million, or 0.8%, to $5.3 billion at June 30, 2018 from $5.3 billion at December 31, 2017. The increase is primarily attributable to an increase in total deposits of $31.5 million mainly driven by higher certificate of deposit balances. Overall borrowings remained relatively flat over the six month period.

Total stockholders’ equity increased $469.2 million or 99.4%, to $941.3 million at June 30, 2018 from $472.1 million at December 31, 2017. The net increase is primarily driven by the recording of common stock and additional-paid-in capital related to the completion of the minority stock offering. Net proceeds from the offering totaled $492.4 million.







Asset Quality

The Company's total non-performing loans at June 30, 2018 totaled $3.8 million, or 0.08% of total loans, compared to $6.5 million or 0.15% of total loans at December 31, 2017. The Company held $660 thousand in foreclosed assets at June 30, 2018 compared to $959 thousand at December 31, 2017. Non-performing assets as a percentage of total assets totaled 0.07% at June 30, 2018 compared to 0.13% at December 31, 2017.

The Company's allowance for loan losses was $62.5 million, or 1.33% of total loans at June 30, 2018, compared to $58.2 million or 1.31% of total loans at December 31, 2017.


About Columbia Financial, Inc.

The unaudited 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 49 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,” “project,” “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 borrowers’ ability to service and repay the Company’s loans; changes in the value of securities in the Company’s investment 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 investments; legislative changes and changes in government regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s 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 or its deployment of the proceeds raised in its minority public offering; and changes in assumptions used in making such forward-looking statements and Quarterly Reports on Form 10-Q 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, Columbia Financial, Inc.’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.



COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Balance Sheets

 
(Unaudited)

(Unaudited)
 
June 30,

December 31,
 
2018

2017
 
(In thousands)
Assets



Cash and cash equivalents
$
67,055


$
65,334

Short-term investments
128


164

Total cash and cash equivalents
67,183


65,498





Securities available-for-sale, at fair value
932,070


710,570

Securities held-to-maturity, at amortized cost (fair value of $244,239 and $236,125 at June 30, 2018 and December 31, 2017, respectively)
254,801


239,618

Federal Home Loan Bank stock
45,009


44,664

Loans receivable, net
4,649,054


4,400,470

Accrued interest receivable
17,067


15,915

Real estate owned
660


959

Office properties and equipment, net
46,623


42,620

Bank-owned life insurance
151,837


150,521

Goodwill and intangible assets
5,957


5,997

Other assets
107,141


89,668

Total assets
$
6,277,403


$
5,766,500





Liabilities and Stockholders' Equity



Liabilities:



Deposits
$
4,294,832


$
4,263,315

Borrowings
930,618


929,057

Advance payments by borrowers for taxes and insurance
30,995


25,563

Accrued expenses and other liabilities
79,660


76,495

Total liabilities
5,336,105


5,294,430





Stockholders' equity:



Preferred stock, $0.01 par value. Authorized 10,000,000 shares; issued none
—


—

Common stock, $0.01 par value. Authorized 500,000,000 shares authorized; 115,889,175 shares issued and outstanding at June 30, 2018 and none at December 31, 2017
1,159


—

Additional paid-in capital
526,332


—

Retained earnings
534,522


537,480

Accumulated other comprehensive loss
(75,736
)

(65,410
)
Unallocated common stock held by the Employee Stock Ownership Plan
(44,980
)

—

Total stockholders' equity
941,297


472,070

Total liabilities and stockholders' equity
$
6,277,403


$
5,766,500




5


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except for per share data)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Interest and dividend income:
 
 
 
 
 
 
 
Loans receivable
$
45,865

 
$
41,981

 
$
89,706

 
$
82,583

Securities available-for-sale
4,922

 
4,354

 
11,336

 
8,692

Securities held-to-maturity
2,991

 
—

 
3,455

 
—

Federal funds and interest earning deposits
584

 
66

 
1,072

 
89

Federal Home Loan Bank stock dividends
657

 
449

 
1,244

 
914

Total interest and dividend income
55,019

 
46,850

 
106,813

 
92,278

Interest expense:
 
 
 
 
 
 
 
Deposits
9,194

 
6,382

 
17,293

 
12,454

Borrowings
4,809

 
4,829

 
9,442

 
9,408

Total interest expense
14,004

 
11,211

 
26,735

 
21,862

 
 
 


 
 
 

Net interest income
41,015

 
35,639

 
80,078

 
70,416

 
 
 


 
 
 

Provision for loan losses
2,400

 
375

 
4,400

 
751

 
 
 

 
 
 

Net interest income after provision for loan losses
38,615

 
35,264

 
75,677

 
69,665

 
 
 
 
 
 
 
 
Non-interest income:
 
 
 
 
 
 
 
Demand deposit account fees
976

 
922

 
1,920

 
1,837

Bank-owned life insurance
1,493

 
1,059

 
2,557

 
2,758

Title insurance fees
1,255

 
949

 
2,029

 
1,916

Loan fees and service charges
451

 
532

 
922

 
1,027

Gain on securities transactions, net
—

 
—

 
116

 
—

Gain on sale of loans receivable, net
15

 
69

 
15

 
170

(Loss) Gain on sale of real estate owned
(13
)
 
39

 
(13
)
 
248

Other non-interest income
1,233

 
1,198

 
2,367

 
2,571

Total non-interest income
5,410

 
4,768

 
9,912

 
10,527

 
 
 
 
 
 
 
 
Non-interest expense:
 
 
 
 
 
 
 
Compensation and employee benefits expense
16,750

 
15,304

 
33,275

 
31,283

Occupancy expense
3,518

 
3,465

 
7,234

 
6,895

Federal insurance premiums expense
473

 
412

 
901

 
825

Advertising expense
1,292

 
1,122

 
2,139

 
1,803

Professional fees expense
399

 
379

 
613

 
558

Data processing expense
672

 
577

 
1,314

 
1,144

Charitable contribution to foundation
34,767


154

 
34,767


454

Other non-interest expense
3,859

 
3,413

 
7,462

 
6,717

Total non-interest expense
61,728

 
24,826

 
87,703

 
49,679

 
 
 
 
 
 
 
 
(Loss) Income before income tax expense
(17,703
)
 
15,206

 
(2,113
)
 
30,513

 
 
 

 
 
 

Income tax (benefit) expense
(2,961
)
 
5,934

 
844

 
10,946

 
 
 

 
 
 

Net (loss) income
$
(14,742
)
 
$
9,272

 
$
(2,958
)
 
$
19,567

Basic and diluted earnings per share
$
(0.13
)
 
N/A

 
$
(0.03
)
 
N/A

Weighted average shares outstanding
111,346,897

 
N/A

 
111,346,897

 
N/A


6


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Average Balances / Yields (Unaudited)
 
For the Three Months Ended
 
June 30, 2018
 
June 30, 2017
 
Average Balance
 
Interest and Dividends
 
Yield / Cost
 
Average Balance
 
Interest and Dividends
 
Yield / Cost
 
(In thousands)
 
 
 
(In thousands)
 
 
Interest-earnings assets:
 
 
 
 
 
 
 
 
 
 
 
Loans
$
4,618,006

 
$
45,865

 
3.98
%
 
$
4,309,453

 
$
41,981

 
3.91
%
Investment securities
1,173,935

 
7,913

 
2.70
%
 
673,712

 
4,354

 
2.59
%
Other interest-earning assets
166,412

 
1,241

 
2.99
%
 
61,717

 
515

 
3.35
%
Total interest-earning assets
5,958,354

 
$
55,019

 
3.70
%
 
5,044,882

 
$
46,850

 
3.72
%
Non-interest-earning assets
339,732

 
 
 
 
 
255,898

 
 
 
 
Total assets
$
6,298,086

 
 
 
 
 
$
5,300,780

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
Interest bearing transaction accounts
$
1,385,603

 
$
2,881

 
0.83
%
 
$
1,289,392

 
$
1,852


0.58
%
Money market deposit accounts
372,728

 
487

 
0.52
%
 
274,657

 
193


0.28
%
Savings deposit accounts
744,114

 
287

 
0.15
%
 
548,202

 
211


0.15
%
Certificates of deposit
1,427,838

 
5,540

 
1.56
%
 
1,281,988

 
4,126


1.29
%
Total interest-bearing deposits
3,930,282

 
9,194

 
0.94
%
 
3,394,239

 
6,382


0.75
%
FHLB advances
694,581

 
3,480

 
2.01
%
 
652,524

 
3,392


2.09
%
Junior subordinated debt
50,678

 
1,329

 
10.52
%
 
50,621

 
1,044


8.27
%
Other borrowings
11

 
—

 
—
%
 
40,000

 
393


3.94
%
Total borrowings
745,270

 
4,809

 
2.59
%
 
743,145

 
4,829


2.61
%
Total interest-bearing liabilities
4,675,552

 
$
14,004

 
1.20
%
 
4,137,384

 
$
11,211


1.09
%
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing deposits
701,609

 
 
 
 
 
617,366

 
 
 
 
Other non-interest bearing liabilities
135,436

 
 
 
 
 
92,998

 
 
 
 
Total liabilities
5,512,597

 
 
 
 
 
4,847,748

 
 
 
 
Total equity
785,489

 
 
 
 
 
453,032

 
 
 
 
Total liabilities and equity
$
6,298,086

 
 
 
 
 
$
5,300,780

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
 
 
$
41,015

 
 
 
 
 
$
35,639

 
 
Interest rate spread
 
 
 
 
2.50
%
 
 
 
 
 
2.63
%
Net interest-earning assets
$
1,282,802

 
 
 

 
$
907,498

 
 
 

Net interest margin
 
 
 
 
2.76
%
 
 
 
 
 
2.83
%
Ratio of interest-earning assets to interest-bearing liabilities
127.44
%
 
 
 
 
 
121.93
%
 
 
 
 


7


 
For the Six Months Ended
 
June 30, 2018
 
June 30, 2017
 
Average Balance
 
Interest and Dividends
 
Yield / Cost
 
Average Balance
 
Interest and Dividends
 
Yield / Cost
 
(In thousands)
 
 
 
(In thousands)
 
 
Interest-earnings assets:
 
 
 
 
 
 
 
 
 
 
 
Loans
$
4,551,970


$
89,706


3.97
%
 
$
4,258,192


$
82,583


3.91
%
Investment securities
1,095,928


14,791


2.72
%
 
677,243


8,692


2.59
%
Other interest-earning assets
161,899


2,316


2.88
%
 
54,420


1,003


3.72
%
Total interest-earning assets
5,809,798


$
106,813


3.71
%
 
4,989,855


$
92,278


3.73
%
Non-interest-earning assets
328,626





 
255,748





Total assets
$
6,138,424





 
$
5,245,603





 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
Interest bearing transaction accounts
$
1,405,231


$
5,378


0.77
%

$
1,294,638


$
3,654


0.57
%
Money market deposit accounts
335,136


722


0.43
%

272,943


381


0.28
%
Savings deposit accounts
740,185


579


0.16
%

544,340


417


0.15
%
Certificates of deposit
1,420,500


10,614


1.51
%

1,258,426


8,002


1.28
%
Total interest-bearing deposits
3,901,053


17,293


0.89
%

3,370,347


12,454


0.75
%
FHLB advances
745,394


7,066


1.91
%

643,593


6,538


2.05
%
Junior subordinated debt
50,670


2,374


9.45
%

50,614


2,089


8.32
%
Other borrowings
171


3


3.16
%

40,000


781


3.94
%
Total borrowings
796,235


9,442


2.39
%

734,207


9,408


2.58
%
Total interest-bearing liabilities
4,697,288


$
26,735


1.15
%

4,104,554


$
21,862


1.07
%
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing deposits
689,021

 
 
 
 
 
601,447

 
 
 
 
Other non-interest bearing liabilities
122,573

 
 
 
 
 
93,049

 
 
 
 
Total liabilities
5,508,882

 
 
 
 
 
4,799,050

 
 
 
 
Total equity
629,542

 
 
 
 
 
446,553

 
 
 
 
Total liabilities and equity
$
6,138,424

 
 
 
 
 
$
5,245,603

 
 
 
 
 

 
 
 
 
 

 
 
 
 
Net interest income

 
$
80,078

 
 
 

 
$
70,416

 
 
Interest rate spread

 
 
 
2.56
%
 

 
 
 
2.66
%
Net interest-earning assets
$
1,112,510

 
 
 

 
$
885,301

 
 
 

Net interest margin

 
 
 
2.78
%
 

 
 
 
2.85
%
Ratio of interest-earning assets to interest-bearing liabilities
123.68
%
 
 
 
 
 
121.57
%
 
 
 
 





8


The following table summarizes the quarterly net interest margin for the previous five quarters.
 
Average Yields/Costs by Quarter
 
June 30, 2018

March 31, 2018

December 31, 2017

September 30, 2017

June 30, 2017
Yield on interest earning assets:









Loans
3.98
%

3.96


3.91


3.90


3.91
%
Investment securities
2.70
%

2.74


2.64


2.57


2.59
%
Other interest-earning assets
2.99
%

2.77


3.99


2.93


3.35
%
Total interest-earning assets
3.70
%

3.71


3.71


3.71


3.72
%
 









Cost of interest bearing liabilities:









Total interest-bearing deposits
0.94
%

0.85


0.85


0.80


0.75
%
Total borrowings
2.59
%

2.22


2.50


2.59


2.61
%
Total interest-earning liabilities
1.20
%

1.09


1.13


1.12


1.09
%
 









Interest rate spread
2.50
%

2.62


2.58


2.58


2.63
%
Net interest margin
2.76
%

2.80


2.79


2.79


2.83
%
 









Ratio of interest-earning assets to interest bearing liabilities
127.44
%

119.93


122.50


122.33


121.93
%



9


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)

SELECTED FINANCIAL RATIOS:
 
 
 
 
 
 
 
 
For the Three Months
Ended June 30,
 
For the Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
Return on average assets
(0.94
)%

0.70
%

(0.10
)%

0.75
%
Core return on average assets
0.81
 %

0.71
%

0.81
 %

0.76
%
Return on average equity
(7.53
)%

8.21
%

(0.95
)%

8.84
%
Core return on average equity
6.10
 %

8.30
%

7.55
 %

8.97
%
Interest rate spread
2.50
 %

2.63
%

2.56
 %

2.66
%
Net interest margin
2.76
 %

2.83
%

2.78
 %

2.85
%
Non-interest expense to average assets
3.93
 %

1.88
%

2.88
 %

1.91
%
Efficiency ratio
132.96
 %

61.44
%

97.46
 %

61.38
%
Core efficiency ratio
58.07
 %

61.19
%

58.82
 %

61.01
%
Average interest-earning assets to average interest-bearing liabilities
127.44
 %

121.93
%

123.68
 %

121.57
%

CAPITAL RATIOS:
 
 
 
 
June 30,
 
December 31,
 
2018
 
2017
Columbia Financial, Inc.:
 
 
 
Total capital (to risk-weighted assets)
25.37
%
 
15.01
%
Tier 1 capital (to risk-weighted assets)
24.11
%
 
13.76
%
Common equity Tier 1 capital (to risk-weighted assets)
22.94
%
 
12.55
%
Tier 1 capital (to adjusted total assets)
16.88
%
 
10.54
%
 
 
 
 
Columbia Bank:
 
 
 
Total capital (to risk-weighted assets)
19.53
%
 
14.90
%
Tier 1 capital (to risk-weighted assets)
18.27
%
 
13.64
%
Common equity Tier 1 capital (to risk-weighted assets)
18.27
%
 
13.64
%
Tier 1 capital (to adjusted total assets)
12.85
%
 
10.44
%



10


ASSET QUALITY:
 
 
 
($ in thousands)
June 30,
 
December 31,
 
2018
 
2017
 
 
 
 
Non-accrual loans
$
3,761


$
6,525

90+ and still accruing
—


—

Non-performing loans
3,761


6,525

Foreclosed assets
660


959

Total Non-performing assets
$
4,421


$
7,484

 




Non-performing loans to total loans
0.08
%

0.15
%
Non-performing assets to total assets
0.07
%

0.13
%
Allowance for loan losses
$
62,524


$
58,178

Allowance for loan losses to total non-performing loans
1,662.43
%

891.62
%
Allowance for loan losses to gross loans
1.33
%

1.31
%

LOAN DATA:
 
 
 
($ in thousands)
June 30,
 
December 31,
 
2018
 
2017
Real estate loans:
 
 
 
One to four family
$
1,763,158

 
$
1,616,259

Multifamily and commercial
1,971,803

 
1,871,210

Construction
254,850

 
233,652

Commercial business loans
292,113

 
277,970

Consumer loans:
 
 
 
Home equity loans and advances
414,388

 
448,020

Other consumer loans
956

 
998

Total loans
4,697,268

 
4,448,109

Net deferred loan costs
12,280

 
9,135

Allowance for loan losses
(62,524
)
 
(58,178
)
Loans receivable, net
$
4,649,054

 
$
4,400,470


Notes and Reconciliation of GAAP to Non-GAAP Financial Measures


 
 
 
 
 
 
 
Book and Tangible Book Value per Share

($ in thousands)
 
 
 
 
At June 30,

At December 31,

 
 
 

2018

2017

 
 
 



 
Total stockholders' equity
 
 
 

$
941,297


$
472,070

Less: goodwill
 
 
 

5,716


5,716

Total tangible stockholders' equity
 
 
 

$
935,581


$
466,354


 
 
 



 
Shares outstanding
 
 
 

115,889,175


—


 
 
 




Book value per share
 
 
 

$
8.12


N/A

Tangible book value per share
 
 
 

$
8.07


N/A

 
 
 
 
 
 
 
 

11


Reconciliation to Core Net Income







($ in thousands)
Three months ended June 30,
Six months ended June 30,

2018

2017

2018

2017








Net income
$
(14,742
)

$
9,272


$
(2,958
)

$
19,567

Add: Contribution to foundation, net of tax
27,466


100


27,466


295

Core net income
$
12,724


$
9,372


$
24,508


$
19,862

 
 
 
 
 
 
 
 







 
Return on Average Assets
($ in thousands)
Three months ended June 30,
Six months ended June 30,

2018

2017

2018

2017








Net income
$
(14,742
)

$
9,272


$
(2,958
)

$
19,567

Average assets
6,298,086


5,300,780


6,138,424


5,245,603









Return on average assets
(0.94
)%

0.70
%

(0.10
)%

0.75
%








Add: Contribution to foundation, net of tax
27,466


100


27,466


295

Core net income
$
12,724


$
9,372


$
24,508


$
19,862

 
 
 
 
 
 
 
 
Core return on average assets
0.81
 %

0.71
%

0.81
 %

0.76
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on Average Equity
($ in thousands)
Three months ended June 30,
Six months ended June 30,

2018

2017

2018

2017








Total average stockholders' equity
$
785,489


$
453,032


$
629,542


$
446,553









Net loss (income)
(14,742
)

9,272


(2,958
)

19,567









Return on average equity
(7.53
)%

8.21
%

(0.95
)%

8.84
%








Add: Contribution to foundation, net of tax
27,466


100


27,466


295

Core average stockholders' equity
837,281


453,032


654,572


446,553

Core net income
$
12,724


$
9,372


$
24,508


$
19,862









Core return on average equity
6.10
 %

8.30
%

7.55
 %

8.97
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

12


Efficiency Ratios
($ in thousands)
Three months ended June 30,
Six months ended June 30,

2018

2017

2018

2017








Net interest income
$
41,015


$
35,639


$
80,078


$
70,416

Non-interest income
5,410


4,768


9,912


10,527

Total income
$
46,425


$
40,407


$
89,990


$
80,943









Non-interest expense
$
61,728


$
24,826


$
87,703


$
49,679









Efficiency ratio
132.96
 %

61.44
%

97.46
 %

61.38
%








Less: contribution to charitable foundation
34,767


100


34,767


295

Core non-interest expense
26,961


24,726


52,936


49,384









Core efficiency ratio
58.07
 %

61.19
%

58.82
 %

61.01
%



13