EX-99.1 2 exhibit9911q202333123.htm EX-99.1 Document

Columbia Financial, Inc. Announces Financial Results
for the First Quarter Ended March 31, 2023

Fair Lawn, New Jersey (April 26, 2023): Columbia Financial, Inc. (the “Company”) (NASDAQ: CLBK), the mid-tier holding company for Columbia Bank ("Columbia") and Freehold Bank ("Freehold"), reported net income of $18.7 million, or $0.18 per basic and diluted share, for the quarter ended March 31, 2023, as compared to net income of $20.4 million, or $0.20 per basic and diluted share, for the quarter ended March 31, 2022. Earnings for the quarter ended March 31, 2023 reflected lower net interest income and higher non-interest expense, partially offset by lower provision for credit losses, higher non-interest income and lower income tax expense. For the quarter ended March 31, 2023, the Company reported core net income of $19.8 million, a decrease of $2.4 million, or 10.8%, compared to core net income of $22.2 million for the quarter ended March 31, 2022.
Mr. Thomas J. Kemly, President and Chief Executive Officer commented: “The month of March 2023 was difficult for the banking industry following the failure of two regional banks with outsized funding concentrations and large risk exposures, that lead to unnecessary customer nervousness. At March 31, 2023, our balance sheet, capital and liquidity positions remain strong. The Company has a diversified deposit base, abundant liquidity, and a conservative credit and risk management culture, all of which enable us to withstand market and economic challenges as we have through prior economic disruptions throughout our 96 year history. Furthermore, depositors have the full backing of the FDIC up to specified limits and can gain full deposit insurance coverage through our IntraFi partner. The volatility of bank stocks has allowed the Company to repurchase 2.4 million shares at attractive prices during the quarter ended March 31, 2023. The Company anticipates additional margin compression in the second quarter of 2023 due to rising funding costs, and is executing strategies to moderate the impact by boosting revenue and controlling non-interest expense.”

Results of Operations for the Three Months Ended March 31, 2023 and March 31, 2022
Net income of $18.7 million was recorded for the quarter ended March 31, 2023, a decrease of $1.7 million, or 8.2%, compared to net income of $20.4 million for the quarter ended March 31, 2022. The decrease in net income was primarily attributable to a $1.9 million decrease in net interest income, and a $3.2 million increase in non-interest expense, partially offset by a $1.3 million decrease in provision for credit losses, a $1.0 million increase in non-interest income and a $1.0 million decrease in income tax expense.
Net interest income was $60.9 million for the quarter ended March 31, 2023, a decrease of $1.9 million, or 3.0%, from $62.7 million for the quarter ended March 31, 2022. The decrease in net interest income was primarily attributable to a $26.0 million increase in interest expense on deposits and borrowings, partially offset by a $24.1 million increase in interest income. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields due to the rise in interest rates in 2022 and 2023. The increase in interest expense on deposits and borrowings was driven by an increase in the average balance of deposits and borrowings coupled with the repricing of existing deposits at higher rates. The Federal Reserve raised interest rates 25 basis points in March 2022, and approved five additional rate increases between May 2022 and December 2022, ranging from 50 to 75 basis points. In 2023, the Federal Reserve raised rates another 50 basis points. The rise in interest rates in 2022 initially had a more immediate impact on interest income from loans, securities and other interest-earning assets than on interest expense on deposits, as the repricing on deposit products lags in relation to increases in market interest rates, but significantly impacted interest expense for the quarter ended March 31, 2023. The increase in interest expense on borrowings was also impacted by the significant increase in interest rates for new borrowings since March 2022, along with an increase in the balance of borrowings. Prepayment penalties, which are included in interest income on loans, totaled $200,000 for the quarter ended March 31, 2023, compared to $1.3 million for the quarter ended March 31, 2022.
The average yield on loans for the quarter ended March 31, 2023 increased 62 basis points to 4.24%, as compared to 3.62% for the quarter ended March 31, 2022, as interest income was influenced by rising interest rates and loan growth. The average yield on securities for the quarter ended March 31, 2023 increased 33 basis points to 2.53%, as compared to 2.20% for the quarter ended March 31, 2022, as a number of adjustable rate securities tied to various indexes repriced higher during the quarter. The average yield on other interest-earning assets for the quarter ended March 31, 2023 increased 141 basis points to 4.22%, as compared to 2.81% for the quarter ended March 31, 2022, due to the rise in average balances and interest rates, as noted above.



Total interest expense was $32.0 million for the quarter ended March 31, 2023, an increase of $26.0 million, or 432.8%, from $6.0 million for the quarter ended March 31, 2022. The increase in interest expense was primarily attributable to a 328 basis point increase in the average cost of borrowings, and an increase in the average balance of borrowings, coupled with an 81 basis point increase in the average cost of interest-bearing deposits and an increase in the average balance of deposits. Interest expense on borrowings increased $13.6 million, or 1029.2%, and interest expense on deposits increased $12.4 million, or 264.58%, due to the rise in interest rates as noted above.
The Company's net interest margin for the quarter ended March 31, 2023 decreased 40 basis points to 2.58%, when compared to 2.98% for the quarter ended March 31, 2022. The weighted average yield on interest-earning assets increased 66 basis points to 3.93% for the quarter ended March 31, 2023, as compared to 3.27% for the quarter ended March 31, 2022. The average cost of interest-bearing liabilities increased 135 basis points to 1.74% for the quarter ended March 31, 2023, as compared to 0.39% for the quarter ended March 31, 2022. The increase in yields for the quarter ended March 31, 2023 was due to the impact of the rise in interest rates which began in March 2022. The net interest margin decreased for the quarter ended March 31, 2023, as the average cost of interest-bearing liabilities outweighed the increase in the average yield on interest-earning assets.
The provision for credit losses for the quarter ended March 31, 2023 was $175,000, a decrease of $1.3 million, from $1.5 million for the quarter ended March 31, 2022. The decrease in provision for credit losses during the quarter was primarily attributable to the decrease in loan loss rates and the evaluation of current and forecasted economic conditions, partially offset by an increase in the outstanding balances of loans.
Non-interest income was $8.1 million for the quarter ended March 31, 2023, an increase of $1.0 million, or 14.7%, from $7.0 million for the quarter ended March 31, 2022. The increase was primarily attributable to an increase in loan fees and service charges of $432,000, an increase in income from the gain on sale of loans of $681,000 and an increase in other non-interest income of $1.2 million, primarily related to swap income, partially offset by the loss on securities transactions of $1.3 million and a decrease in title insurance fees of $370,000.
Non-interest expense was $43.9 million for the quarter ended March 31, 2023, an increase of $3.2 million, or 7.7%, from $40.7 million for the quarter ended March 31, 2022. The increase was primarily attributable to an increase in compensation and employee benefits expense of $5.2 million, partially offset by a decrease in other non-interest expense of $2.9 million. The increase in compensation and employee benefits expense was due to an increase in staff levels and related personnel benefit costs, mainly due to the acquisition of RSI Bank in May 2022, lower deferred compensation due to lower loan originations, and normal annual increases in employee related benefits. The decrease in other non-interest expense was primarily related to a decrease of $1.2 million related to the provision for credit losses for unfunded commitments and a decrease of $1.1 million in expenses related to swap transactions. The decrease for the 2023 period was also attributable to the quarter ended March 31, 2022 including three litigation settlements paid or accrued totaling $2.2 million.
Income tax expense was $6.1 million for the quarter ended March 31, 2023, a decrease of $1.0 million, as compared to $7.2 million for the quarter ended March 31, 2022, mainly due to a decrease in pre-tax income, and to a lesser extent, a decrease in the Company's effective tax rate. The Company's effective tax rate was 24.7% and 26.0% for the quarters ended March 31, 2023 and 2022, respectively.
Balance Sheet Summary
Total assets increased $226.5 million, or 2.2%, to $10.6 billion at March 31, 2023 from $10.4 billion at December 31, 2022. The increase in total assets was primarily attributable to an increase in cash and cash equivalents of $140.2 million, an increase in loans receivable, net of $109.4 million, and an increase in Federal Home Loan Bank ("FHLB") stock of $26.7 million, partially offset by a decrease in debt securities available for sale of $56.1 million.
Cash and cash equivalents increased $140.2 million, or 78.2%, to $319.4 million at March 31, 2023 from $179.2 million at December 31, 2022. The increase was primarily attributable to repayments on loans and mortgage-backed securities, $42.6 million in proceeds from the sale of debt securities available for sale, and acquisition of new FHLB borrowings, partially offset by $47.3 million in repurchases of common stock under our stock repurchase program.
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Debt securities available for sale decreased $56.1 million, or 4.2%, to $1.27 billion at March 31, 2023 from $1.33 billion at December 31, 2022. The decrease was attributable to repayments on securities of $27.9 million, and sales of securities of $42.6 million, which was partially offset by a decrease in the gross unrealized loss of $16.2 million. The Bank sold U.S. government obligations at a weighted average rate of 2.35% during the 2023 period.
Loans receivable, net, increased $109.4 million, or 1.4%, to $7.7 billion at March 31, 2023 from $7.6 billion at December 31, 2022. One-to-four family real estate loans, multi-family real estate loans, construction loans and commercial business loans increased $780,000, $75.9 million, $37.9 million and $19.2 million, respectively, partially offset by a decrease in commercial real estate loans and home equity loans and advances of $19.5 million and $2.7 million, respectively. The allowance for credit losses on loans increased $70,000 to $52.9 million at March 31, 2023 from $52.8 million at December 31, 2022. During the quarter ended March 31, 2023, the increase in the allowance for credit losses was primarily due to an increase in the outstanding balance of loans and the evaluation of current and forecasted economic conditions, partially offset by a decrease in loan loss rates.
Federal Home Loan Bank stock increased $26.7 million, or 45.9%, to $84.8 million at March 31, 2023 from $58.1 million at December 31, 2022. The increase was due to the purchase of stock required upon acquiring new FHLB borrowings.
Total liabilities increased $241.2 million, or 2.6%, to $9.6 billion at March 31, 2023 from $9.4 billion at December 31, 2022. The increase was primarily attributable to an increase in borrowings of $579.6 million, or 51.4%, partially offset by a decrease in total deposits of $327.0 million, or 4.1%, and a decrease in accrued expenses and other liabilities of $13.7 million, or 7.5%. The increase in borrowings was driven by a net $579.6 million increase in FHLB advances. The decrease in total deposits primarily consisted of decreases in non-interest bearing demand deposits, interest-bearing demand deposits, and savings and club deposits of $222.8 million, $332.6 million, and $63.0 million, respectively, partially offset by increases in money market accounts of $177.8 million and certificates of deposit of $113.7 million. The Bank has priced select money market and certificates of deposit accounts very competitively to the market, but there continues to be fierce competition for funds from other banks and non-bank investment products. The decrease in accrued expenses and other liabilities primarily consisted of a $9.0 million decrease in accrued bonus and a $3.5 million decrease in interest rate swap liabilities.
Total stockholders’ equity decreased $14.7 million, or 1.4%, to $1.0 billion at March 31, 2023 from $1.1 billion at December 31, 2022. The decrease in equity was primarily attributable to the repurchase of 2,378,434 shares of common stock at a cost of approximately $47.3 million, or $19.90 per share, under our stock repurchase program, partially offset by net income of $18.7 million, and a decrease of $12.1 million in unrealized losses on debt securities available for sale, net of taxes, included in other comprehensive income.
Asset Quality
The Company's non-performing loans at March 31, 2023 totaled $6.6 million, or 0.09% of total gross loans, as compared to $6.7 million, or 0.09% of total gross loans, at December 31, 2022. The $111,000 decrease in non-performing loans was primarily attributable to a decrease of $145,000 in non-performing home equity loans and advances, partially offset by an increase of $63,000 in non-performing one-to-four family loans. Non-performing assets as a percentage of total assets totaled 0.06% at both March 31, 2023 and December 31, 2022.
For the quarter ended March 31, 2023, net charge-offs totaled $104,544, as compared to $111,090 in net recoveries recorded for the quarter ended March 31, 2022.
The Company's allowance for credit losses on loans was $52.9 million, or 0.68% of total gross loans, at March 31, 2023, compared to $52.8 million, or 0.69% of total gross loans, at December 31, 2022. The increase in the allowance for credit losses for loans was primarily due to an increase in the outstanding balance of loans and the evaluation of current and forecasted economic conditions, partially offset by a decrease in loan loss rates.

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Additional Liquidity, Loan, Deposit and Capital Information

The Company services a diverse retail and commercial deposit base through its 67 branches. With over 210,000 accounts, the average deposit account balance was approximately $37,000 at March 31, 2023. The Company had uninsured deposits (excluding municipal deposits which are collateralized) totaling $2.1 billion at March 31, 2023, or 27.7% of total deposits as of that date.

Deposit balances are summarized as follows:
At March 31, 2023At February 28, 2023At December 31, 2022
BalanceWeighted Average RateBalanceWeighted Average RateBalanceWeighted Average Rate
(Dollars in thousands)
Non-interest-bearing demand$1,583,329 — %$1,658,247 — %$1,806,152 — %
Interest-bearing demand2,260,240 1.06 2,492,166 1.08 2,592,884 0.75 
Money market accounts896,336 2.27 739,592 1.81 718,524 0.93 
Savings and club deposits850,777 0.10 881,147 0.10 913,738 0.06 
Certificates of deposit2,083,519 2.32 2,022,697 2.14 1,969,861 2.16 
Total deposits$7,674,201 1.22 %$7,793,849 1.08 %$8,001,159 0.86 %

The Company continues to maintain strong liquidity and capital positions. The Company has not utilized the Federal Reserve’s Bank Term Funding Program and had no outstanding borrowings from the Federal Reserve Discount Window at March 31, 2023. The Company had immediate access to $2.9 billion of funding with additional unpledged loan collateral available to pledge in excess of $2.7 billion at March 31, 2023. Available sources of liquidity include but are not limited to:

•Cash and cash equivalents of $319.4 million;
•Borrowing capacity based on unencumbered collateral pledged at the FHLB totaling $1.1 billion;
•Borrowing capacity based on unencumbered collateral pledged at the Federal Reserve Bank totaling $1.4 billion;
•Available correspondent lines of credit of $384.0 million with various third parties;and
•Unpledged loan collateral available to pledge in excess of $2.7 billion.

At March 31, 2023, other comprehensive income includes net unrealized losses on debt securities available for sale of $123.5 million and net unrealized losses on the Company's defined benefit plan of $44.1 million. If the Company sold all its debt securities available for sale at March 31, 2023, the Company’s tier 1 capital (leverage ratio) and total risk-based capital ratios would be 9.03% and 13.75%, respectively, which are well in excess of regulatory capital requirements.

At March 31, 2023, 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.
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At March 31, 2023
(Dollars in thousands)
Balance% of Gross LoansLoan to Value RatioDebt Service Coverage
Multifamily Real Estate$1,315,143 17.0 %62.2 %1.45x
Owner Occupied Commercial Real Estate$521,653 6.7 %51.5 %2.21x
Investor Owned Commercial Real Estate:
Retail / Shopping centers$520,753 6.7 %52.1 %1.43x
Mixed Use306,504 4.0 59.4 1.48 
Industrial / Warehouse332,560 4.3 52.2 1.65 
Non-Medical Office238,495 3.1 52.1 1.66 
Medical Office147,778 1.9 60.3 1.56 
Single Purpose71,636 0.9 59.6 2.33 
Other254,539 3.3 53.5 1.44 
Total$1,872,265 24.2 %54.5 %1.55x
Total Multifamily and Commercial Real Estate Loans$3,709,061 48.0 %56.8 %1.61x

About Columbia Financial, Inc.
The consolidated financial results include the accounts of Columbia Financial, Inc., its wholly-owned subsidiaries Columbia Bank and Freehold Bank, and their wholly-owned subsidiaries. Columbia Financial, Inc. is a Delaware corporation organized as Columbia Bank's mid-tier stock holding company. Columbia Financial, Inc. is a majority-owned subsidiary of Columbia Bank, MHC. Columbia Bank is a federally chartered savings bank headquartered in Fair Lawn, New Jersey that operates 65 full-service banking offices. Freehold Bank is a federally chartered savings bank headquartered in Freehold, New Jersey that operates 2 full-service banking offices. Both banks offer traditional financial services to consumers and businesses in their market areas.

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Forward Looking Statements
Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “projects,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates, higher inflation and their impact on national and local economic conditions; changes in monetary and fiscal policies of the U.S. Treasury, the Board of Governors of the Federal Reserve System and other governmental entities; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect a borrowers’ ability to service and repay the Company’s loans; the effect of 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, 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".
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COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Financial Condition
(In thousands)
March 31,December 31,
20232022
Assets(Unaudited)
Cash and due from banks$319,333 $179,097 
Short-term investments106 131 
Total cash and cash equivalents319,439 179,228 
Debt securities available for sale, at fair value 1,272,570 1,328,634 
Debt securities held to maturity, at amortized cost (fair value of $372,187, and $370,391 at March 31, 2023 and December 31, 2022, respectively)
417,227 421,523 
Equity securities, at fair value3,552 3,384 
Federal Home Loan Bank stock84,799 58,114 
Loans receivable7,787,072 7,677,564 
Less: allowance for credit losses 52,873 52,803 
Loans receivable, net7,734,199 7,624,761 
Accrued interest receivable35,126 33,898 
Office properties and equipment, net83,721 83,877 
Bank-owned life insurance266,230 264,854 
Goodwill and intangible assets124,581 125,142 
Other assets293,206 284,754 
Total assets$10,634,650 $10,408,169 
Liabilities and Stockholders' Equity
Liabilities:
Deposits$7,674,201 $8,001,159 
Borrowings1,706,613 1,127,047 
Advance payments by borrowers for taxes and insurance47,690 45,460 
Accrued expenses and other liabilities167,256 180,908 
Total liabilities9,595,760 9,354,574 
Stockholders' equity:
Total stockholders' equity1,038,890 1,053,595 
Total liabilities and stockholders' equity$10,634,650 $10,408,169 


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COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended
March 31,
20232022
Interest income:
(Unaudited)
Loans receivable
$80,290 $56,957 
Debt securities available for sale and equity securities
8,451 8,888 
Debt securities held to maturity
2,457 2,426 
Federal funds and interest-earning deposits
812 17 
Federal Home Loan Bank stock dividends
870 447 
Total interest income
92,880 68,735 
Interest expense:
Deposits
17,088 4,687 
Borrowings
14,928 1,322 
Total interest expense
32,016 6,009 
Net interest income
60,864 62,726 
Provision for credit losses
175 1,459 
Net interest income after provision for credit losses
60,689 61,267 
Non-interest income:
Demand deposit account fees
1,176 1,170 
Bank-owned life insurance
1,981 1,729 
Title insurance fees
587 957 
Loan fees and service charges
1,072 640 
Loss on securities transactions
(1,295)— 
Change in fair value of equity securities
168 79 
Gain on sale of loans
791 110 
Other non-interest income
3,593 2,356 
Total non-interest income
8,073 7,041 
Non-interest expense:
Compensation and employee benefits
31,158 25,999 
Occupancy
5,754 5,429 
Federal deposit insurance premiums
689 647 
Advertising
687 649 
Professional fees
1,875 1,754 
Data processing and software expenses
3,825 3,267 
Merger-related expenses
— 151 
Other non-interest expense, net
(87)2,853 
Total non-interest expense
43,901 40,749 
Income before income tax expense24,861 27,559 
Income tax expense6,138 7,155 
Net income
$18,723 $20,404 
Earnings per share-basic $0.18 $0.20 
Earnings per share-diluted$0.18 $0.20 
Weighted average shares outstanding-basic104,631,583 103,148,417 
Weighted average shares outstanding-diluted105,148,375 103,737,252 
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COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Average Balances/Yields
 For the Three Months Ended March 31,
20232022
Average Balance
Interest and Dividends
Yield / Cost
Average Balance
Interest and Dividends
Yield / Cost
(Dollars in thousands)
Interest-earnings assets:
Loans
$7,674,995 $80,290 4.24 %$6,380,983 $56,957 3.62 %
Securities
1,747,736 10,908 2.53 %2,082,060 11,314 2.20 %
Other interest-earning assets
161,569 1,682 4.22 %67,070 464 2.81 %
Total interest-earning assets
9,584,300 92,880 3.93 %8,530,113 68,735 3.27 %
Non-interest-earning assets
826,202 716,149 
Total assets
$10,410,502 $9,246,262 
Interest-bearing liabilities:
Interest-bearing demand
$2,495,310 $6,016 0.98 %$2,660,083 $1,620 0.25 %
Money market accounts
740,331 2,257 1.24 %656,039 323 0.20 %
Savings and club deposits
887,927 214 0.10 %836,255 109 0.05 %
Certificates of deposit
2,012,725 8,601 1.73 %1,750,783 2,635 0.61 %
Total interest-bearing deposits
6,136,293 17,088 1.13 %5,903,160 4,687 0.32 %
FHLB advances
1,278,916 14,491 4.60 %368,446 995 1.10 %
Notes payable
29,898 290 3.93 %29,846 264 3.59 %
Junior subordinated debentures
7,439 147 8.01 %7,720 63 3.31 %
Total borrowings
1,316,253 14,928 4.60 %406,012 1,322 1.32 %
Total interest-bearing liabilities
7,452,546 $32,016 1.74 %6,309,172 $6,009 0.39 %
Non-interest-bearing liabilities:
Non-interest-bearing deposits
1,680,959 1,673,708 
Other non-interest-bearing liabilities
221,822 192,759 
Total liabilities
9,355,327 8,175,639 
Total stockholders' equity
1,055,175 1,070,623 
Total liabilities and stockholders' equity
$10,410,502 $9,246,262 
Net interest income
$60,864 $62,726 
Interest rate spread
2.19 %2.88 %
Net interest-earning assets
$2,131,754 $2,220,941 
Net interest margin
2.58 %2.98 %
Ratio of interest-earning assets to interest-bearing liabilities
128.60 %135.20 %

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COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Components of Net Interest Rate Spread and Margin
Average Yields/Costs by Quarter
March 31, 2023December 31, 2022September 30, 2022June 30, 2022March 31, 2022
Yield on interest-earning assets:
Loans
4.24 %4.05 %3.80 %3.68 %3.62 %
Securities
2.53 2.45 2.27 2.14 2.20 
Other interest-earning assets
4.22 4.00 2.68 1.93 2.81 
Total interest-earning assets
3.93 %3.75 %3.47 %3.31 %3.27 %
Cost of interest-bearing liabilities:
Total interest-bearing deposits
1.13 %0.73 %0.44 %0.31 %0.32 %
Total borrowings
4.60 3.69 2.47 1.67 1.32 
Total interest-bearing liabilities
1.74 %1.09 %0.62 %0.40 %0.39 %
Interest rate spread
2.19 %2.66 %2.85 %2.91 %2.88 %
Net interest margin
2.58 %2.91 %3.01 %3.01 %2.98 %
Ratio of interest-earning assets to interest-bearing liabilities
128.60 %130.79 %132.57 %134.81 %135.20 %


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COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Selected Financial Highlights
 For the Three Months Ended March 31,
20232022
SELECTED FINANCIAL RATIOS (1):
Return on average assets0.73 %0.89 %
Core return on average assets0.77 %0.97 %
Return on average equity7.20 %7.73 %
Core return on average equity7.59 %8.38 %
Core return on average tangible equity8.61 %9.17 %
Interest rate spread2.19 %2.88 %
Net interest margin2.58 %2.98 %
Non-interest income to average assets0.31 %0.31 %
Non-interest expense to average assets1.71 %1.79 %
Efficiency ratio63.68 %58.41 %
Core efficiency ratio62.35 %55.01 %
Average interest-earning assets to average interest-bearing liabilities128.60 %135.20 %
Net charge-offs to average outstanding loans0.01 %(0.01)%
(1) Ratios are annualized when appropriate.

CAPITAL RATIOS:
March 31,
December 31,
2023 (1)
2022
Company:
Total capital (to risk-weighted assets)
14.75 %15.39 %
Tier 1 capital (to risk-weighted assets)
13.97 %14.59 %
Common equity tier 1 capital (to risk-weighted assets)
13.87 %14.49 %
Tier 1 capital (to adjusted total assets)
10.19 %10.68 %
Columbia Bank:
Total capital (to risk-weighted assets)
14.21 %14.12 %
Tier 1 capital (to risk-weighted assets)
13.43 %13.32 %
Common equity tier 1 capital (to risk-weighted assets)
13.43 %13.32 %
Tier 1 capital (to adjusted total assets)
9.77 %9.74 %
Freehold Bank:
Total capital (to risk-weighted assets)
22.82 %22.92 %
Tier 1 capital (to risk-weighted assets)
22.12 %22.19 %
Common equity tier 1 capital (to risk-weighted assets)
22.12 %22.19 %
Tier 1 capital (to adjusted total assets)
15.22 %15.19 %
(1) Estimated ratios at March 31, 2023

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ASSET QUALITY:
March 31,
December 31,
20232022
(Dollars in thousands)
Non-accrual loans
$6,610 $6,721 
90+ and still accruing
— — 
Non-performing loans
6,610 6,721 
Real estate owned
— — 
Total non-performing assets
$6,610 $6,721 
Non-performing loans to total gross loans
0.09 %0.09 %
Non-performing assets to total assets
0.06 %0.06 %
Allowance for credit losses on loans ("ACL")
$52,873 $52,803 
ACL to total non-performing loans
799.89 %785.64 %
ACL to gross loans
0.68 %0.69 %
Unamortized purchase accounting fair value credit marks on acquired loans
$3,173 $4,025 

LOAN DATA:
March 31,
December 31,
20232022
(In thousands)
Real estate loans:
One-to-four family
$2,860,964 $2,860,184 
Multifamily 1,315,143 1,239,207 
Commercial real estate
2,393,918 2,413,394 
Construction
374,434 336,553 
Commercial business loans
516,682 497,469 
Consumer loans:
Home equity loans and advances
271,620 274,302 
Other consumer loans
2,322 3,425 
Total gross loans
7,735,083 7,624,534 
Purchased credit deteriorated ("PCD") loans
16,245 17,059 
Net deferred loan costs, fees and purchased premiums and discounts
35,744 35,971 
Allowance for credit losses
(52,873)(52,803)
Loans receivable, net
$7,734,199 $7,624,761 
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Reconciliation of GAAP to Non-GAAP Financial Measures
Book and Tangible Book Value per Share
March 31,December 31,
20232022
(Dollars in thousands)
Total stockholders' equity$1,038,890 $1,053,595 
Less: goodwill(110,715)(110,715)
Less: core deposit intangible(12,903)(13,505)
Total tangible stockholders' equity$915,272 $929,375 
Shares outstanding106,584,538 108,970,476 
Book value per share$9.75 $9.67 
Tangible book value per share$8.59 $8.53 

Reconciliation of Core Net Income
Three Months Ended March 31,
20232022
(In thousands)
Net income$18,723 $20,404 
Add: loss on securities transactions, net of tax975 — 
Add: merger-related expenses, net of tax— 123 
Add: litigation expenses, net of tax81 1,644 
Core net income$19,779 $22,171 


Return on Average Assets
Three Months Ended March 31,
20232022
(Dollars in thousands)
Net income$18,723 $20,404 
Average assets$10,410,502 $9,246,262 
Return on average assets0.73 %0.89 %
Core net income$19,779 $22,171 
Core return on average assets0.77 %0.97 %




13

Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
Return on Average Equity
Three Months Ended March 31,
20232022
(Dollars in thousands)
Total average stockholders' equity$1,055,175 $1,070,623 
Add: loss on securities transactions, net of tax975 — 
Add: merger-related expenses, net of tax— 123 
Add: litigation expenses, net of tax81 1,644 
Core average stockholders' equity$1,056,231 $1,072,390 
Return on average equity7.20 %7.73 %
Core return on core average equity7.59 %8.38 %

Return on Average Tangible Equity
Three Months Ended March 31,
20232022
(Dollars in thousands)
Total average stockholders' equity$1,055,175 $1,070,623 
Less: average goodwill(110,715)(85,323)
Less: average core deposit intangible(13,288)(5,128)
Total average tangible stockholders' equity$931,172 $980,172 
Core return on average tangible equity8.61 %9.17 %




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Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
Efficiency Ratios
Three Months Ended March 31,
20232022
(Dollars in thousands)
Net interest income$60,864 $62,726 
Non-interest income8,073 7,041 
Total income$68,937 $69,767 
Non-interest expense$43,901 $40,749 
Efficiency ratio63.68 %58.41 %
Non-interest income$8,073 $7,041 
Add: loss on securities transactions1,295 — 
Core non-interest income$9,368 $7,041 
Non-interest expense$43,901 $40,749 
Less: merger-related expenses— (151)
Less: litigation expenses(108)(2,220)
Core non-interest expense$43,793 $38,378 
Core efficiency ratio62.35 %55.01 %


15