For the quarter ended June 2024, Columbia Financial (CLBK) reported revenue of $53.26 million, up 5.2% over the same period last year. EPS came in at $0.05, compared to $0.12 in the year-ago quarter. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. The reported revenue represents a surprise of +2.82% over the Zacks Consensus Estimate of $51.8 million. With the c ...

Columbia Financial (CLBK) came out with quarterly earnings of $0.05 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 25%. A quarter ago, it was expected that this company would post earnings of $0.05 per share when it actually produced earnings of $0.01, delivering a surprise of -80%. Over the last four quarters, the company ...

Columbia Financial, Inc. Announces Financial Results for the Second Quarter Ended June 30, 2024 Mr. Thomas J. Kemly, President and Chief Executive Officer commented: "The second quarter results showed improvement over the first quarter despite continuing pressure on funding costs. Our net interest margin increased 6 basis points over the first quarter of 2024 and we believe net interest margin expansion and expense management will improve earnings on a go forward basis. The Company's balance sheet, asset qu ...

PART I. Financial Information [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Columbia Financial, Inc. as of March 31, 2024, and for the three months then ended, compared with prior periods Consolidated Statement of Financial Condition Highlights | Account | March 31, 2024 ($ in thousands) | December 31, 2023 ($ in thousands) | | :--- | :--- | :--- | | **Total Assets** | **10,637,519** | **10,645,568** | | Loans receivable, net | 7,760,228 | 7,819,441 | | Debt securities available for sale | 1,187,440 | 1,093,557 | | **Total Liabilities** | **9,599,494** | **9,605,233** | | Deposits | 7,829,403 | 7,846,556 | | Borrowings | 1,530,424 | 1,528,695 | | **Total Stockholders' Equity** | **1,038,025** | **1,040,335** | Consolidated Statement of Income (Loss) Highlights (Three Months Ended) | Account | March 31, 2024 ($ in thousands) | March 31, 2023 ($ in thousands) | | :--- | :--- | :--- | | Net interest income | 42,200 | 60,864 | | Provision for credit losses | 5,278 | 175 | | Non-interest income | 7,452 | 8,073 | | Non-interest expense | 45,658 | 43,901 | | **Net (loss) income** | **(1,155)** | **18,723** | | **(Loss) earnings per share-diluted** | **(0.01)** | **0.18** | [Notes to Unaudited Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on the company's accounting policies and financial activities, covering debt securities, loans, deposits, fair value measurements, and stock-based compensation [Note 6. Debt Securities Available for Sale](index=14&type=section&id=Note%206.%20Debt%20Securities%20Available%20for%20Sale) The portfolio of debt securities available for sale increased to $1.19 billion at March 31, 2024, with gross unrealized losses rising to $166.1 million, primarily in mortgage-backed securities and U.S. government obligations Debt Securities Available for Sale (at Fair Value) | Security Type | March 31, 2024 ($ in thousands) | December 31, 2023 ($ in thousands) | | :--- | :--- | :--- | | U.S. government and agency obligations | 237,034 | 145,501 | | Mortgage-backed securities and CMOs | 869,217 | 867,585 | | Municipal obligations | 2,708 | 2,702 | | Corporate debt securities | 78,481 | 77,769 | | **Total** | **1,187,440** | **1,093,557** | - Gross unrealized losses on AFS securities were **$166.1 million** at March 31, 2024, with **$165.5 million** in a loss position for 12 months or longer[298](index=298&type=chunk) - During Q1 2024, the company sold one debt security for proceeds of **$3.5 million**, resulting in a gross loss of **$1.3 million**[295](index=295&type=chunk) [Note 7. Debt Securities Held to Maturity](index=16&type=section&id=Note%207.%20Debt%20Securities%20Held%20to%20Maturity) Debt securities held to maturity totaled $398.4 million at amortized cost as of March 31, 2024, consisting entirely of investment-grade U.S. government and mortgage-backed securities, all in an unrealized loss position totaling $46.4 million Debt Securities Held to Maturity | Security Type | Amortized Cost (Mar 31, 2024) | Fair Value (Mar 31, 2024) | Gross Unrealized Losses (Mar 31, 2024) | | :--- | :--- | :--- | :--- | | U.S. government and agency obligations | $49,871 | $43,807 | $(6,064) | | Mortgage-backed securities and CMOs | $348,480 | $308,184 | $(40,296) | | **Total** | **$398,351** | **$351,991** | **$(46,360)** | - All **111 securities** in the HTM portfolio were in an unrealized loss position at March 31, 2024, and all were investment grade, with no allowance for credit losses required due to government guarantees[218](index=218&type=chunk)[219](index=219&type=chunk) [Note 9. Loans Receivable and Allowance for Credit Losses](index=19&type=section&id=Note%209.%20Loans%20Receivable%20and%20Allowance%20for%20Credit%20Losses) Total gross loans slightly decreased to $7.77 billion, while the allowance for credit losses (ACL) increased to $55.4 million, driven by a significant rise in non-accrual loans to $22.9 million and $5.0 million in net charge-offs Loans Receivable by Category (Gross) | Loan Category | March 31, 2024 ($ in thousands) | December 31, 2023 ($ in thousands) | | :--- | :--- | :--- | | One-to-four family | 2,778,932 | 2,792,833 | | Multifamily | 1,429,369 | 1,409,187 | | Commercial real estate | 2,318,178 | 2,377,077 | | Construction | 437,566 | 443,094 | | Commercial business | 538,260 | 533,041 | | Consumer loans | 263,387 | 269,433 | | **Total gross loans** | **7,765,692** | **7,824,665** | Allowance for Credit Losses (ACL) Activity (Q1 2024) | Metric | Amount ($ in thousands) | | :--- | :--- | | Balance at Dec 31, 2023 | 55,096 | | Provision for credit losses | 5,278 | | Charge-offs | (5,122) | | Recoveries | 149 | | **Balance at Mar 31, 2024** | **55,401** | - Non-accrual loans increased significantly to **$22.9 million** at March 31, 2024, from **$12.6 million** at December 31, 2023[194](index=194&type=chunk) - The ACL is estimated using a CECL model that incorporates a reasonable and supportable forecast period of **six quarters**, followed by a **four-quarter** reversion period to long-term historical loss rates[236](index=236&type=chunk) [Note 11. Deposits](index=36&type=section&id=Note%2011.%20Deposits) Total deposits slightly decreased to $7.83 billion, with a shift towards higher-cost certificates of deposit, leading to a sharp increase in interest expense on deposits to $48.4 million for Q1 2024 Deposit Composition | Deposit Type | March 31, 2024 ($ in thousands) | December 31, 2023 ($ in thousands) | | :--- | :--- | :--- | | Non-interest-bearing demand | 1,415,909 | 1,437,361 | | Interest-bearing demand | 1,929,490 | 1,966,463 | | Money market accounts | 1,228,098 | 1,255,528 | | Savings and club deposits | 687,303 | 700,348 | | Certificates of deposit | 2,568,603 | 2,486,856 | | **Total deposits** | **7,829,403** | **7,846,556** | - Interest expense on deposits for Q1 2024 was **$48.4 million**, a significant increase from **$17.1 million** in Q1 2023, reflecting the higher interest rate environment and shift in deposit mix[61](index=61&type=chunk) - Of the **$2.57 billion** in certificates of deposit, **$2.20 billion** (approximately **86%**) are scheduled to mature in one year or less[64](index=64&type=chunk) [Note 12. Stock Based Compensation](index=37&type=section&id=Note%2012.%20Stock%20Based%20Compensation) In Q1 2024, the company awarded 212,441 restricted shares and 286,265 stock options, incurring $1.3 million in restricted stock expense and $951,000 for stock options, with significant unrecognized compensation remaining - In March 2024, the company awarded **212,441 restricted shares** and **286,265 stock options**[69](index=69&type=chunk)[70](index=70&type=chunk) Stock-Based Compensation Expense (Q1) | Award Type | Q1 2024 Expense ($ in thousands) | Q1 2023 Expense ($ in thousands) | | :--- | :--- | :--- | | Restricted Stock | 1,300 | 1,000 | | Stock Options | 951 | 921 | - At March 31, 2024, there were **620,547 non-vested restricted shares** and **1,265,884 non-vested options** outstanding[69](index=69&type=chunk)[80](index=80&type=chunk) [Note 14. Fair Value Measurements](index=41&type=section&id=Note%2014.%20Fair%20Value%20Measurements) The company's recurring fair value measurements totaled $1.22 billion, primarily Level 1 and Level 2 debt securities and derivatives, with minimal Level 3 assets, while non-recurring Level 3 assets, including impaired loans, totaled $7.6 million Assets Measured at Fair Value on a Recurring Basis (March 31, 2024) | Asset Type | Level 1 ($ in thousands) | Level 2 ($ in thousands) | Level 3 ($ in thousands) | Total ($ in thousands) | | :--- | :--- | :--- | :--- | :--- | | Debt securities available for sale | 229,844 | 947,685 | 9,911 | 1,187,440 | | Equity securities | 4,107 | 323 | — | 4,430 | | Derivative assets | — | 25,346 | — | 25,346 | | **Total** | **233,951** | **973,354** | **9,911** | **1,217,216** | - Level 3 assets measured on a recurring basis consist of **two private placement corporate debt securities** and **two private placement municipal obligations**[115](index=115&type=chunk) - Assets measured at fair value on a non-recurring basis totaled **$7.6 million**, consisting of impaired loans (**$4.9 million**) and mortgage servicing rights (**$2.8 million**), both classified as Level 3[128](index=128&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=56&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a challenging first quarter, with a net loss of $1.2 million driven by a 30.7% decrease in net interest income due to rising funding costs and a significant increase in non-performing loans, while maintaining strong liquidity and capital [Comparison of Financial Condition](index=56&type=section&id=Comparison%20of%20Financial%20Condition) Total assets remained stable at $10.6 billion, with a decrease in net loans and cash offset by an increase in debt securities available for sale, while total liabilities and stockholders' equity saw minor decreases - Total assets decreased by a marginal **$8.0 million** to **$10.6 billion** at March 31, 2024[338](index=338&type=chunk) - Loans receivable, net, decreased by **$59.2 million**, while debt securities available for sale increased by **$93.9 million**[339](index=339&type=chunk)[303](index=303&type=chunk) - Total deposits decreased by **$17.2 million**, reflecting a shift from demand and savings accounts to higher-cost certificates of deposit[310](index=310&type=chunk) - Stockholders' equity decreased by **$2.3 million**, primarily due to a **$1.2 million** net loss and **$1.7 million** in stock repurchases[340](index=340&type=chunk) [Comparison of Results of Operations](index=57&type=section&id=Comparison%20of%20Results%20of%20Operations) The company reported a net loss of $1.2 million for Q1 2024, a $19.9 million decrease from the prior year, primarily due to a 30.7% drop in net interest income and an 83 basis point compression in net interest margin to 1.75% - Net loss for Q1 2024 was **$1.2 million**, a decrease of **$19.9 million** from the **$18.7 million** net income in Q1 2023[313](index=313&type=chunk) - Net interest income decreased by **30.7%** to **$42.2 million**, as the increase in interest expense (**$34.4 million**) significantly outpaced the increase in interest income (**$15.7 million**)[341](index=341&type=chunk) - The net interest margin for Q1 2024 fell to **1.75%** from **2.58%** in Q1 2023[315](index=315&type=chunk) - The provision for credit losses increased to **$5.3 million**, primarily due to **$5.0 million** in net charge-offs[343](index=343&type=chunk) - Non-interest expense increased by **$1.8 million (4.0%)**, driven by higher FDIC insurance premiums and professional fees, though partially offset by lower compensation costs[316](index=316&type=chunk) [Asset Quality](index=58&type=section&id=Asset%20Quality) Asset quality deteriorated in Q1 2024, with non-performing loans increasing by $10.3 million to $22.9 million, largely due to a single commercial loan relationship, and net charge-offs totaling $5.0 million - Non-performing loans increased to **$22.9 million (0.30% of gross loans)** at March 31, 2024, from **$12.6 million (0.16%)** at December 31, 2023[319](index=319&type=chunk) - A single borrower relationship with a struggling healthcare facility accounted for **$7.3 million (71%)** of the increase in non-performing loans, though the loans are current on payments and well-collateralized[319](index=319&type=chunk) - Net charge-offs for Q1 2024 totaled **$5.0 million**, compared to only **$105,000** in Q1 2023, related to four commercial business loans with expected future recoveries[320](index=320&type=chunk) - The allowance for credit losses on loans was **$55.4 million**, or **0.71%** of total gross loans, at March 31, 2024[347](index=347&type=chunk) [Critical Accounting Policies](index=60&type=section&id=Critical%20Accounting%20Policies) Management identifies the allowance for credit losses (ACL), valuation of deferred tax assets, and valuation of retirement benefits as critical accounting policies requiring significant judgment and sensitivity to economic conditions - The determination of the Allowance for Credit Losses (ACL) is a critical accounting estimate due to the high degree of judgment involved[386](index=386&type=chunk) - The ACL methodology uses a discounted cash flow model incorporating probability of default (PD) and loss given default (LGD) based on a **6-quarter** reasonable and supportable forecast, followed by a **4-quarter** reversion to long-term averages[357](index=357&type=chunk)[389](index=389&type=chunk) - Other critical policies include the valuation of deferred tax assets, which depends on future taxable income projections, and the valuation of retirement and post-retirement benefits, which relies on actuarial assumptions[355](index=355&type=chunk)[332](index=332&type=chunk)[391](index=391&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=62&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company actively manages interest rate risk, with simulations indicating net interest income is liability-sensitive in a rising rate environment and asset-sensitive in a falling rate environment, while maintaining strong liquidity and capital positions Interest Rate Sensitivity Analysis (as of March 31, 2024) | Change in Interest Rates (bps) | Change in Net Interest Income (12 Months) | Change in Net Portfolio Value (NPV) | | :--- | :--- | :--- | | +200 | (3.91)% | (18.43)% | | +100 | (1.81)% | (8.97)% | | Base | — | — | | -100 | +1.89% | +8.80% | | -200 | +3.12% | +16.04% | - The company maintains strong liquidity, with access to approximately **$2.7 billion** in immediate funding and over **$1.5 billion** in additional unpledged collateral as of March 31, 2024[351](index=351&type=chunk) - As of March 31, 2024, the company, Columbia Bank, and Freehold Bank all exceeded the capital requirements to be classified as 'well capitalized' under regulatory standards[371](index=371&type=chunk) [Item 4. Controls and Procedures](index=66&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the first quarter - Management concluded that the Company's disclosure controls and procedures were effective as of the end of the reporting period[376](index=376&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[407](index=407&type=chunk) PART II. Other Information [Item 1. Legal Proceedings](index=67&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal actions in the normal course of business, which management does not expect to have a material adverse impact on its financial condition - Ongoing legal actions are not expected to have a material adverse impact on the Company's financial condition[378](index=378&type=chunk) [Item 1A. Risk Factors](index=67&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2023 - As of March 31, 2024, the Company's risk factors have not materially changed from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023[409](index=409&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=67&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company continued its sixth stock repurchase program, acquiring 101,516 shares at an average price of $16.31 per share during the first quarter of 2024 Share Repurchases in Q1 2024 | Period | Total Shares Purchased (Public Program) | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2024 | 0 | N/A | | Feb 2024 | 100 | $16.52 | | Mar 2024 | 101,416 | $16.31 | | **Total Q1** | **101,516** | **$16.31** | - As of March 31, 2024, there were **1,005,325 shares** remaining to be purchased under the company's sixth stock repurchase program[286](index=286&type=chunk)[305](index=305&type=chunk)

Columbia Financial (CLBK) reported $49.65 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 28%. EPS of $0.01 for the same period compares to $0.19 a year ago.The reported revenue represents a surprise of -3.40% over the Zacks Consensus Estimate of $51.4 million. With the consensus EPS estimate being $0.05, the EPS surprise was -80.00%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall S ...

Columbia Financial (CLBK) came out with quarterly earnings of $0.01 per share, missing the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -80%. A quarter ago, it was expected that this company would post earnings of $0.07 per share when it actually produced earnings of $0.09, delivering a surprise of 28.57%.Over the last four quarters, the company ...

Mr. Thomas J. Kemly, President and Chief Executive Officer commented: "While the first quarter results were disappointing as we were challenged by the environment and non-recurring items, management believes it has achieved net interest margin stabilization. We believe net interest margin expansion, additional loan volumes and cost controls will contribute to improved earnings on a go forward basis. The Company's balance sheet, asset quality and capital remain strong, and we have maintained a stable, divers ...

PART I [Business](index=4&type=section&id=Item%201.%20Business) Columbia Financial, Inc. is a New Jersey-focused bank holding company, growing through acquisitions and specializing in diversified lending and non-interest income services [General and Acquisition History](index=4&type=section&id=General%20and%20Acquisition%20History) Columbia Financial, Inc. is a Delaware corporation and holding company for Columbia and Freehold Banks, expanding through strategic acquisitions - **Columbia Financial, Inc.** is the holding company for Columbia Bank and Freehold Bank, both federally chartered stock savings banks[83](index=83&type=chunk) - Columbia Bank operates as a "covered savings association," enjoying rights similar to a national bank, including exemption from the qualified thrift lender test[84](index=84&type=chunk) - The company has a history of strategic acquisitions, including Stewardship Financial (2019), Roselle Bank (2020), Freehold Bank (2021), and RSI Bank (2022), to expand its market presence[59](index=59&type=chunk)[122](index=122&type=chunk)[124](index=124&type=chunk) [Market Area and Competition](index=5&type=section&id=Market%20Area%20and%20Competition) The company operates in New Jersey, facing intense competition from diverse financial institutions for loans and deposits in a high-income market - As of December 31, 2023, Columbia Bank operated **65 offices** across twelve New Jersey counties, and Freehold Bank operated **two offices** in Freehold, New Jersey[47](index=47&type=chunk) Market Area Economic Indicators (2024 Projections & Dec 2023 Data) | Indicator | Company's 12-County Market | New Jersey State | National | | :--- | :--- | :--- | :--- | | **Projected Median Household Income (2024)** | $105,598 | $96,278 | $75,874 | | **Unemployment Rate (Dec 2023)** | N/A | 4.8% | 3.7% | - The company faces intense competition from large national banks, community banks, credit unions, and non-depository fintech companies for both loans and deposits[61](index=61&type=chunk)[62](index=62&type=chunk)[88](index=88&type=chunk) [Lending Activities and Credit Risks](index=6&type=section&id=Lending%20Activities%20and%20Credit%20Risks) The company's lending focuses on commercial real estate and multifamily loans, totaling **$3.8 billion**, with associated credit risks from concentration and construction financing Loan Portfolio Composition (December 31, 2023) | Loan Category | Amount (Billions) | % of Total Loans | | :--- | :--- | :--- | | Multifamily & Commercial Real Estate | $3.8 | 48.5% | | One-to-Four Family Residential | $2.8 | 35.6% | | Construction Loans | $0.443 | 5.7% | | Home Equity Loans & Advances | $0.267 | 3.4% | - The company's largest multifamily loan was **$48.7 million** and its largest commercial real estate loan was a **$27.7 million** participation loan as of year-end 2023[65](index=65&type=chunk) - Construction financing is considered higher risk due to reliance on initial estimates and potential for delays, mitigated by lending to experienced developers and requiring sales agreements[79](index=79&type=chunk)[100](index=100&type=chunk) - Commercial business loans carry higher risk as repayment depends on borrower cash flow, and collateral may be difficult to appraise and can depreciate[126](index=126&type=chunk) [Securities and Deposit Activities](index=10&type=section&id=Securities%20and%20Deposit%20Activities) The company's securities portfolio is primarily government-backed, while deposits from diverse customers are the main funding source, supplemented by FHLB borrowings - The securities portfolio is classified as either held-to-maturity (amortized cost) or available-for-sale (fair value)[82](index=82&type=chunk) - As of December 31, 2023, the available-for-sale portfolio was **79.3%** MBS and CMOs, while the held-to-maturity portfolio was **87.6%** MBS and CMOs[134](index=134&type=chunk)[135](index=135&type=chunk) - Deposits are the primary source of funds from retail, business, and municipal customers, with cash management services offered to business clients[139](index=139&type=chunk)[141](index=141&type=chunk) - The company supplements liquidity with FHLB borrowings and maintains access to the Federal Reserve's discount window and Bank Term Funding Program[143](index=143&type=chunk) [Regulation and Supervision](index=11&type=section&id=Regulation%20and%20Supervision) The company and its banks are regulated by the OCC, FDIC, and Federal Reserve, exceeding stringent capital requirements and deemed "well capitalized" as of December 31, 2023 - The company and its subsidiary banks are subject to supervision and regulation by the OCC, FDIC, and the Federal Reserve Board[144](index=144&type=chunk)[170](index=170&type=chunk) Minimum Regulatory Capital Requirements | Capital Ratio | Minimum Requirement | Requirement with Buffer | | :--- | :--- | :--- | | Common Equity Tier 1 to Risk-Weighted Assets | 4.5% | 7.0% | | Tier 1 to Risk-Weighted Assets | 6.0% | 8.5% | | Total Capital to Risk-Weighted Assets | 8.0% | 10.5% | | Tier 1 Leverage Ratio | 4.0% | 4.0% | - As of December 31, 2023, both Columbia Bank and Freehold Bank exceeded all regulatory capital requirements and were considered "**well capitalized**"[123](index=123&type=chunk)[178](index=178&type=chunk) - The FDIC imposes special assessments for Silicon Valley Bank and Signature Bank failures, with the company unable to reasonably estimate the additional assessment amount[185](index=185&type=chunk)[161](index=161&type=chunk) [Human Capital Management](index=17&type=section&id=Human%20Capital%20Management) As of December 31, 2023, the company employed **774** individuals, focusing on retention, talent development, and DEI, with **61%** women and **37%** minorities - The company employed **720 full-time** and **54 part-time** employees as of December 31, 2023[223](index=223&type=chunk) - In 2023, the voluntary employee turnover rate was **17.04%**, reflecting a competitive market for talent[224](index=224&type=chunk) - The company has a strong focus on Diversity, Equity, and Inclusion (DEI), with a workforce comprising approximately **61% women** and **37% minorities** at year-end 2023[203](index=203&type=chunk) - Succession planning is a critical initiative, supported by programs like the Associate Development Program and Leadership Development Program to build a leadership pipeline[206](index=206&type=chunk) [Risk Factors](index=22&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant lending risks from high commercial real estate concentration, regulatory scrutiny due to asset growth, and operational risks including interest rate fluctuations and cybersecurity threats - **Lending Risks:** The company has a high concentration in multifamily and commercial real estate loans, totaling **$3.8 billion** or **48.5%** of the portfolio, exposing it to greater non-payment risk than residential loans[216](index=216&type=chunk)[243](index=243&type=chunk) - **Regulatory Scrutiny:** Non-owner-occupied commercial real estate loans represented **315.2%** of total risk-based capital, exceeding the **300%** regulatory guideline and potentially leading to increased supervisory attention[244](index=244&type=chunk) - **Growth and Regulatory Risks:** Surpassing **$10 billion** in assets increases regulation, including Durbin Amendment debit card interchange fee restrictions and CFPB supervision[254](index=254&type=chunk)[286](index=286&type=chunk)[287](index=287&type=chunk) - **Market and Operational Risks:** The company is exposed to interest rate risk, liquidity risk from potential deposit outflows, and significant operational risks from information technology reliance and cybersecurity threats[260](index=260&type=chunk)[259](index=259&type=chunk)[264](index=264&type=chunk) [Cybersecurity](index=28&type=section&id=Item%201C.%20Cybersecurity) The company implements a comprehensive, three-lines-of-defense cybersecurity program with Board oversight, ensuring data protection and timely reporting of material incidents - The company has a comprehensive cybersecurity program to protect sensitive information and customer data, managed through an enterprise-wide strategy[330](index=330&type=chunk) - A multiple lines of defense approach is used, involving an Information Security Officer (ISO), an Enterprise Technology Risk Management (ETRM) function, and an internal audit department for independent assurance[332](index=332&type=chunk)[307](index=307&type=chunk) - The Board of Directors actively oversees the cybersecurity program, receiving regular reports on cyber risks, threats, and the status of security initiatives[333](index=333&type=chunk) - Procedures have been enhanced for timely reporting of material cybersecurity incidents on Form 8-K within four business days of determination[331](index=331&type=chunk) [Properties](index=29&type=section&id=Item%202.%20Properties) The company operates **67** branch offices in New Jersey, with **31** owned and **34** leased properties - The company operates through **65 Columbia Bank branches** and **2 Freehold Bank branches** in New Jersey[335](index=335&type=chunk) - The company owns **31** of its properties and leases the remaining **34**[335](index=335&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=30&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq under "CLBK," with no current dividends, but an active stock repurchase program, including **138,620** shares bought in Q4 2023 - The company's common stock is listed on the Nasdaq Global Select Market under the symbol "**CLBK**"[311](index=311&type=chunk) - The company has not paid dividends and does not currently anticipate doing so, citing regulatory hurdles for its mutual holding company to waive dividend receipts[312](index=312&type=chunk)[313](index=313&type=chunk) - On May 25, 2023, the Board authorized the **sixth stock repurchase program** for up to **2,000,000 shares**[344](index=344&type=chunk) Stock Repurchases (Q4 2023) | Period | Total Shares Repurchased | Average Price Paid per Share ($) | Shares Purchased Under Program | | :--- | :--- | :--- | :--- | | Oct 2023 | 127,487 | $15.83 | 124,420 | | Nov 2023 | 14,000 | $16.38 | 14,000 | | Dec 2023 | 6,826 | $19.18 | 200 | | **Total Q4** | **148,313** | **$16.04** | **138,620** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and operations, highlighting a **2.3%** asset growth to **$10.6 billion** and a **58.1%** net income decrease to **$36.1 million** in 2023, driven by reduced net interest income [Business Strategy](index=34&type=section&id=Business%20Strategy) The company's strategy focuses on balanced growth, commercial banking expansion, increasing fee income, franchise expansion, and stockholder-focused capital management - Increase earnings through balanced growth of the loan portfolio and deposit base, with a strategic shift towards commercial loans and deposits to enhance net interest margin[348](index=348&type=chunk) - Expand commercial business relationships, with a focus on commercial business lending which grew **7.2%** in 2023[378](index=378&type=chunk)[349](index=349&type=chunk) - Grow fee income by expanding existing title insurance and wealth management services and considering acquisitions of other fee-based businesses[352](index=352&type=chunk)[380](index=380&type=chunk) - Pursue franchise expansion through selective de novo branching and strategic acquisitions of other financial institutions[353](index=353&type=chunk)[354](index=354&type=chunk) - Manage capital through asset growth and stock repurchase programs, having repurchased **25.9 million shares** under six programs as of December 31, 2023[361](index=361&type=chunk) [Critical Accounting Policies and Estimates](index=37&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The Allowance for Credit Losses (ACL) is a critical estimate, increasing to **$55.1 million** in 2023, with sensitivity to unemployment rates and other critical policies including deferred tax assets - The Allowance for Credit Losses (ACL) is a critical accounting estimate due to significant judgment in forecasting economic conditions and determining qualitative loss factors[417](index=417&type=chunk) - The ACL on loans increased to **$55.1 million** at December 31, 2023, from **$52.8 million** at December 31, 2022, primarily due to loan growth and increased qualitative factors[417](index=417&type=chunk) - A sensitivity analysis showed that if the U.S. unemployment rate forecast was **9%** instead of approximately **4.3%**, the ACL would have been approximately **$18.4 million** higher[365](index=365&type=chunk) - The company held a net deferred tax asset of **$25.5 million** as of December 31, 2023, which management believes is more likely than not to be realized[392](index=392&type=chunk) [Comparison of Financial Condition at December 31, 2023 and 2022](index=39&type=section&id=Comparison%20of%20Financial%20Condition%20at%20December%2031%2C%202023%20and%202022) Total assets grew **2.3%** to **$10.6 billion** in 2023, driven by loan growth, while deposits decreased **1.9%** and stockholders' equity declined **1.3%** due to repurchases Financial Condition Highlights (in millions) | Account | Dec 31, 2023 (Millions) | Dec 31, 2022 (Millions) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | $10,645.6 | $10,408.2 | 2.3% | | Loans Receivable, net | $7,819.4 | $7,624.8 | 2.6% | | Total Securities | $1,454.8 | $1,702.4 | (14.5)% | | Total Deposits | $7,846.6 | $8,001.2 | (1.9)% | | Total Borrowings | $1,528.7 | $1,127.0 | 35.6% | | Total Stockholders' Equity | $1,040.3 | $1,053.6 | (1.3)% | - The loan portfolio growth was led by increases in multifamily real estate (**+$170.0 million**), construction (**+$106.5 million**), and commercial business loans (**+$35.6 million**)[422](index=422&type=chunk) - The decrease in deposits was driven by outflows from demand and savings accounts, partially offset by significant inflows into higher-yielding money market (**+$537.0 million**) and certificate of deposit accounts (**+$517.0 million**)[396](index=396&type=chunk)[411](index=411&type=chunk) [Results of Operations](index=49&type=section&id=Results%20of%20Operations) Net income decreased **58.1%** to **$36.1 million** in 2023, primarily due to a **22.8%** decline in net interest income and increased non-interest expenses Summary of Operations (Year Ended Dec 31, in millions) | Metric | 2023 (Millions) | 2022 (Millions) | % Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $205.9 | $266.8 | (22.8)% | | Provision for Credit Losses | $4.8 | $5.5 | (12.7)% | | Non-interest Income | $27.4 | $30.4 | (9.9)% | | Non-interest Expense | $182.4 | $174.8 | 4.3% | | **Net Income** | **$36.1** | **$86.2** | **(58.1)%** | - The primary driver of the net income decrease was a significant compression in net interest income, caused by a **340.9%** increase in total interest expense to **$189.1 million**, far outpacing the **27.5%** growth in total interest income[445](index=445&type=chunk)[476](index=476&type=chunk) - Non-interest expense increased mainly due to a **$3.9 million** rise in compensation and a **$6.0 million** increase in federal deposit insurance premiums, including a one-time special assessment[473](index=473&type=chunk)[479](index=479&type=chunk) - Non-interest income decreased primarily due to an **$11.1 million** increase in the loss on securities transactions, partially offset by higher income from BOLI and loan sale gains[446](index=446&type=chunk)[478](index=478&type=chunk) [Risk Management](index=58&type=section&id=Risk%20Management) The company manages credit, interest rate, and liquidity risks, with non-performing assets increasing to **$12.6 million** and a **200 basis point** rate increase projected to decrease net interest income by **4.11%** Non-Performing Assets (in millions) | Metric | Dec 31, 2023 (Millions) | Dec 31, 2022 (Millions) | Dec 31, 2021 (Millions) | | :--- | :--- | :--- | :--- | | Total Non-Performing Assets | $12.6 | $6.7 | $3.9 | | as a % of Total Assets | 0.12% | 0.06% | 0.04% | Allowance for Credit Losses (ACL) Activity (in millions) | ACL Activity | 2023 (Millions) | 2022 (Millions) | 2021 (Millions) | | :--- | :--- | :--- | :--- | | Beginning Balance | $52.8 | $62.7 | $74.7 | | Provision for (reversal of) credit losses | $4.8 | $6.0 | $(10.0) | | Net Charge-offs | $(2.5) | $(0.045) | $(2.0) | | **Ending Balance** | **$55.1** | **$52.8** | **$62.7** | | ACL as % of Total Loans | 0.70% | 0.69% | 0.99% | - Interest rate risk simulation at year-end 2023 showed that a **+200 basis point** shock would decrease Net Interest Income by **4.11%** and Net Portfolio Value by **18.29%** over 12 months[551](index=551&type=chunk)[580](index=580&type=chunk) - The company maintains liquidity through its core deposit base and access to wholesale funding, including FHLB advances and other credit lines[553](index=553&type=chunk)[608](index=608&type=chunk) [Financial Statements and Supplementary Data](index=69&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents consolidated financial statements for 2021-2023, with an unqualified audit opinion from KPMG LLP, highlighting the Allowance for Credit Losses as a critical audit matter - The independent auditor, KPMG LLP, issued an unqualified opinion on the consolidated financial statements and the effectiveness of internal control over financial reporting as of December 31, 2023[631](index=631&type=chunk)[7](index=7&type=chunk) - The auditor identified the assessment of the collective Allowance for Credit Losses (ACL) as a Critical Audit Matter, due to high audit effort and subjective judgment in evaluating methodology, models, and assumptions for expected credit losses[10](index=10&type=chunk)[53](index=53&type=chunk) Key Financial Statement Data (Year Ended Dec 31, 2023, in thousands) | Metric | Amount (Thousands) | | :--- | :--- | | Total Assets | $10,645,568 | | Total Liabilities | $9,605,233 | | Total Stockholders' Equity | $1,040,335 | | Net Income | $36,086 | | Total Comprehensive Income | $56,647 | [Controls and Procedures](index=71&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023, with no material changes in Q4 2023 - Management concluded that the Company's disclosure controls and procedures were effective as of December 31, 2023[36](index=36&type=chunk) - Based on an assessment using the COSO framework, management concluded that the Company's internal control over financial reporting was effective as of December 31, 2023[49](index=49&type=chunk) - No material changes were made to the Company's internal control over financial reporting during the fourth quarter ended December 31, 2023[617](index=617&type=chunk) PART III [Directors, Executive Officers, Corporate Governance, Executive Compensation, and Related Party Transactions](index=72&type=section&id=Items%2010-14) This section incorporates information by reference from the 2024 Proxy Statement, covering directors, executive officers, corporate governance, compensation, security ownership, and related party transactions - Information regarding Directors, Executive Officers, Corporate Governance (Item 10), Executive Compensation (Item 11), Security Ownership (Item 12), Certain Relationships and Related Transactions (Item 13), and Principal Accounting Fees (Item 14) is incorporated by reference from the Company's 2024 Proxy Statement[23](index=23&type=chunk)[621](index=621&type=chunk)[599](index=599&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=74&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists exhibits filed with the Form 10-K, including corporate governance documents, employment agreements, regulatory certifications, and Inline XBRL financial data files - The financial statements required for this item are incorporated by reference from Item 8 of the report[602](index=602&type=chunk) - Exhibits filed with the report include corporate governance documents (Exhibits 3.1, 3.2), employment agreements for key executives (Exhibits 10.1-10.9), and regulatory certifications (Exhibits 31.1, 31.2)[4](index=4&type=chunk)[5](index=5&type=chunk) - The report includes financial data formatted in Inline XBRL (Extensible Business Reporting Language) as required by the SEC[604](index=604&type=chunk)

For the quarter ended December 2023, Columbia Financial (CLBK) reported revenue of $56.59 million, down 25.5% over the same period last year. EPS came in at $0.09, compared to $0.21 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $54.9 million, representing a surprise of +3.08%. The company delivered an EPS surprise of +28.57%, with the consensus EPS estimate being $0.07.While investors scrutinize revenue and earnings changes year-over-year and how they compare with ...

Columbia Financial (CLBK) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.07 per share. This compares to earnings of $0.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 28.57%. A quarter ago, it was expected that this company would post earnings of $0.07 per share when it actually produced earnings of $0.09, delivering a surprise of 28.57%.Over the last four quarters, the compa ...