UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading symbol(s) Name of each exchange on which registered Common Stock, $0.01 par value per share CLBK The Nasdaq Stock Market LLC FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-38456 Col ...

Part I [Business](index=5&type=section&id=Item%201.%20Business) Columbia Financial is a bank holding company offering diverse financial services, primarily in New Jersey, with recent growth through acquisitions [General Overview and Recent Acquisitions](index=5&type=section&id=General%20Overview%20and%20Recent%20Acquisitions) The company operates as a community-focused bank, recently expanding through the acquisitions of Stewardship Financial and Roselle Entities - Columbia Financial, Inc is the holding company for Columbia Bank, a federally chartered savings bank founded in 1927, offering traditional financial services to businesses and consumers[20](index=20&type=chunk)[21](index=21&type=chunk) - The company completed the acquisition of Stewardship Financial Corporation on November 1, 2019, for a total consideration of **$136.3 million** in cash[26](index=26&type=chunk) - On April 1, 2020, the company acquired the Roselle Entities, issuing **4,759,048 additional shares** of its common stock to its MHC as consideration[27](index=27&type=chunk) - Effective October 15, 2020, the Bank began operating as a "covered savings association," which provides rights and privileges similar to a national bank and removes certain lending limits applicable to savings associations[23](index=23&type=chunk) [Market Area and Competition](index=6&type=section&id=Market%20Area%20and%20Competition) The company operates 61 branches in New Jersey, a high-income market, facing intense competition from various financial institutions - As of December 31, 2020, the company operated **61 full-service banking offices** in twelve New Jersey counties[31](index=31&type=chunk) - The market area is characterized by a high median household income of **$97,516** in 2020 for the twelve counties served, significantly above the national median of $67,761[33](index=33&type=chunk) - The company faces intense competition for both deposits and loans from a wide range of financial institutions, including large national banks, community banks, credit unions, and emerging fintech companies[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) [Lending Activities and Credit Risks](index=6&type=section&id=Lending%20Activities%20and%20Credit%20Risks) The company's **$6.1 billion** loan portfolio is diversified, with a strategic focus on commercial lending and associated credit risk management Loan Portfolio Composition as of December 31, 2020 | Loan Category | Amount (Billions) | Percentage of Total Loans | | :--- | :--- | :--- | | Multifamily and Commercial Real Estate | $2.8 | 45.7% | | One-to-Four Family Residential | $1.9 | 31.5% | | Commercial Business (incl. PPP) | $0.75 | 12.2% | | Construction | $0.33 | 5.3% | | Home Equity Loans and Advances | $0.32 | 5.2% | - The company originated **$344.4 million** in Paycheck Protection Program (PPP) loans as of December 31, 2020, as part of the CARES Act[52](index=52&type=chunk) - Credit risks vary by loan type: multifamily/commercial loans depend on property cash flow, residential loans are sensitive to interest rate changes and property values, and commercial business loans rely on the success of the borrower's business[63](index=63&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk) - The maximum regulatory lending limit to a single borrower was **$138.7 million** at year-end 2020, with the largest relationship totaling **$115.5 million**, which was performing as per its terms[76](index=76&type=chunk) [Securities and Deposit Activities](index=11&type=section&id=Securities%20and%20Deposit%20Activities) The securities portfolio is primarily government-backed, while deposits from a diverse customer base serve as the main source of funding - The securities portfolio is primarily composed of mortgage-backed securities and CMOs issued by Freddie Mac, Fannie Mae, and Ginnie Mae, which comprised **91.1%** of the available-for-sale portfolio and **98.1%** of the held-to-maturity portfolio at December 31, 2020[81](index=81&type=chunk)[83](index=83&type=chunk) - To mitigate credit risk, **93.9%** of the total securities portfolio consisted of direct government obligations or government-sponsored enterprise obligations as of December 31, 2020[85](index=85&type=chunk) - Deposits are the primary source of funds, attracted from retail, business, and municipal customers through products like checking, savings, money market accounts, and certificates of deposit[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk) - The company supplements its funding with borrowings, primarily advances from the Federal Home Loan Bank (FHLB), for which it must own capital stock and pledge collateral[90](index=90&type=chunk) [Regulation and Supervision](index=13&type=section&id=Regulation%20and%20Supervision) The company and its bank subsidiary are subject to extensive federal regulation and supervision and were considered "well capitalized" - The Bank is primarily supervised by the Office of the Comptroller of the Currency (OCC), while the holding company (Columbia Financial, Inc) and the mutual holding company (MHC) are supervised by the Federal Reserve Board[92](index=92&type=chunk)[94](index=94&type=chunk) - The Bank must adhere to minimum capital standards, including a common equity Tier 1 ratio of **4.5%**, a Tier 1 capital ratio of **6.0%**, and a total capital ratio of **8.0%** It also must maintain a capital conservation buffer of **2.5%**[98](index=98&type=chunk)[99](index=99&type=chunk)[103](index=103&type=chunk) - As of December 31, 2020, the Bank **exceeded all applicable capital requirements** and met the criteria for being considered "well capitalized"[105](index=105&type=chunk)[110](index=110&type=chunk) - The Bank received a **"satisfactory"** Community Reinvestment Act (CRA) rating in its most recent federal examination[114](index=114&type=chunk) [Human Capital Management](index=19&type=section&id=Human%20Capital%20Management) The company employed 628 people and focused on talent management, DEI initiatives, and employee safety during the COVID-19 pandemic - As of December 31, 2020, the company had **628 total employees** (557 full-time, 71 part-time)[141](index=141&type=chunk)[143](index=143&type=chunk) - The voluntary turnover rate was **7.92%** and involuntary turnover was **10.91%** in 2020, impacted by the pandemic and a voluntary early retirement program that 55 employees accepted[143](index=143&type=chunk) - The company is implementing an Environmental Social Governance (ESG) program and has named a Diversity Officer to support its **Diversity, Equity, and Inclusion (DEI)** strategy[153](index=153&type=chunk) - In response to COVID-19, the company took significant steps to protect employee health and safety, including implementing technologies for a remote work environment[160](index=160&type=chunk)[162](index=162&type=chunk) [Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from the COVID-19 pandemic, loan portfolio concentrations, competition, and extensive industry regulation - The COVID-19 pandemic poses significant risks, including potential increases in **loan delinquencies**, a need to increase the allowance for loan losses, and negative impacts from changes in consumer and business spending habits[184](index=184&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk) - A significant portion of the loan portfolio is concentrated in multifamily and commercial real estate (**$2.8 billion**, or **45.7%** of total loans), which exposes the company to greater risks of non-payment compared to residential mortgages[192](index=192&type=chunk) - The geographic concentration of the loan portfolio, primarily in New Jersey and the metropolitan New York and Philadelphia areas, makes the company vulnerable to local economic downturns[202](index=202&type=chunk)[203](index=203&type=chunk) - The company is subject to significant operational and technological risks, including systems failures, **cybersecurity breaches**, and the need to keep pace with technological change to remain competitive[220](index=220&type=chunk)[223](index=223&type=chunk)[225](index=225&type=chunk) - Intense government regulation, including changes from the Dodd-Frank Act and the upcoming transition from LIBOR, could materially impact profitability and increase compliance costs[235](index=235&type=chunk)[237](index=237&type=chunk)[238](index=238&type=chunk) [Properties](index=32&type=section&id=Item%202.%20Properties) The company operates from a main office and 61 branch offices across New Jersey, with a mix of owned and leased properties - The company operates through a main office and **61 branch offices** in New Jersey[243](index=243&type=chunk) - The company **owns 28** of its properties and **leases the remaining 33**[243](index=243&type=chunk) [Legal Proceedings](index=32&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in routine legal proceedings that are considered immaterial to its financial condition - Management considers all current legal proceedings to be **routine and immaterial** to the company's financial condition[244](index=244&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=32&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock trades on Nasdaq (CLBK), with no current dividend payments and an active share repurchase program - The company's common stock is listed on the Nasdaq Global Select Market under the symbol **"CLBK"**[247](index=247&type=chunk) - The company has not declared any dividends and does not currently anticipate paying them, citing regulatory limitations on its mutual holding company's ability to waive dividend receipts[248](index=248&type=chunk)[250](index=250&type=chunk) Stock Repurchases for Quarter Ended Dec 31, 2020 | Period | Total Shares Purchased | Average Price Paid | Shares Purchased Under Program | | :--- | :--- | :--- | :--- | | Oct 2020 | 1,516,966 | $12.36 | 1,516,710 | | Nov 2020 | 973,728 | $12.36 | 973,600 | | Dec 2020 | 1,017,723 | $15.15 | 1,015,700 | | **Total** | **3,508,417** | **$13.66** | **3,506,010** | - On September 10, 2020, the Board authorized a new stock repurchase program for up to **5,000,000 shares**[258](index=258&type=chunk) [Selected Financial Data](index=35&type=section&id=Item%206.%20Selected%20Financial%20Data) The company's financial data shows asset growth to **$8.8 billion** and net income of **$57.6 million** in 2020, with non-GAAP reconciliations provided Selected Financial Condition Data (in thousands) | Metric | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Total assets | $8,798,536 | $8,188,694 | $6,691,618 | | Loans receivable, net | $6,107,094 | $6,135,857 | $4,916,840 | | Deposits | $6,778,624 | $5,645,842 | $4,413,873 | | Stockholder's equity | $1,011,287 | $982,517 | $972,060 | Selected Operating Data (in thousands) | Metric | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Net interest income | $221,573 | $172,371 | $164,034 | | Provision for loan losses | $18,447 | $4,224 | $6,677 | | Net income | $57,603 | $54,717 | $22,736 | Key Performance Ratios | Ratio | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Return on average assets | 0.66% | 0.77% | 0.36% | | Return on average equity | 5.67% | 5.50% | 2.87% | | Net interest margin | 2.72% | 2.58% | 2.74% | | Basic and diluted EPS | $0.52 | $0.49 | $0.20 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net income rose to **$57.6 million** in 2020, driven by higher net interest income from acquisitions, despite a significant increase in loan loss provisions [Business Strategy](index=38&type=section&id=Business%20Strategy) The company's strategy centers on profitable growth through organic expansion, commercial relationship building, and strategic acquisitions - Increase earnings through organic growth of loans and securities, funded by deposits and borrowings, while shifting the loan mix toward commercial loans and the deposit mix toward commercial deposits[279](index=279&type=chunk)[280](index=280&type=chunk) - Expand commercial business relationships, focusing on commercial business lending to manage interest rate risk and offer a full range of products[282](index=282&type=chunk) - Grow fee income by expanding existing title insurance and wealth management services, increasing loan servicing activities, and potentially acquiring other fee-based businesses[285](index=285&type=chunk)[286](index=286&type=chunk) - Expand the franchise through de novo branching, branch acquisitions, and the acquisition of other financial institutions, as demonstrated by the recent acquisitions of Stewardship Financial and the Roselle Entities[287](index=287&type=chunk)[289](index=289&type=chunk) - Manage capital through asset growth and tools like stock repurchase programs The company has repurchased an aggregate of **11,130,942 shares** as of December 31, 2020[300](index=300&type=chunk) [Comparison of Financial Condition at December 31, 2020 and 2019](index=44&type=section&id=Comparison%20of%20Financial%20Condition%20at%20December%2031%2C%202020%20and%202019) Total assets grew **7.4%** to **$8.8 billion**, driven by acquisitions and deposit growth, while total loans remained stable Financial Condition Comparison (in millions) | Account | Dec 31, 2020 | Dec 31, 2019 | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | $8,798.5 | $8,188.7 | 7.4% | | Total Gross Loans | $6,162.5 | $6,169.3 | (0.1%) | | Total Deposits | $6,778.6 | $5,645.8 | 20.1% | | Total Borrowings | $799.4 | $1,407.0 | (43.2%) | | Stockholders' Equity | $1,011.3 | $982.5 | 2.9% | - The increase in commercial business loans was primarily driven by **$344.4 million** in SBA Paycheck Protection Program (PPP) loans originated during 2020[340](index=340&type=chunk) - The increase in deposits was partially driven by **$333.2 million** in deposits assumed from the acquisition of the Roselle Entities[350](index=350&type=chunk) [Results of Operations Comparison](index=53&type=section&id=Results%20of%20Operations%20Comparison) Net income increased **5.3%** to **$57.6 million** in 2020, as higher net interest income was offset by a large provision for loan losses Results of Operations (Year Ended Dec 31, in thousands) | Metric | 2020 | 2019 | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | $221,573 | $172,371 | 28.5% | | Provision for Loan Losses | $18,447 | $4,224 | 336.7% | | Non-interest Income | $31,270 | $31,636 | (1.2%) | | Non-interest Expense | $158,139 | $128,701 | 22.9% | | Net Income | $57,603 | $54,717 | 5.3% | - The increase in provision for loan losses in 2020 was primarily due to the deterioration of economic conditions related to the **COVID-19 pandemic**[365](index=365&type=chunk)[373](index=373&type=chunk) - The increase in non-interest expense in 2020 was driven by higher compensation (including equity plan expenses and a voluntary early retirement program), occupancy costs from acquisitions, and a **$1.2 million loss** on extinguishment of debt[367](index=367&type=chunk)[377](index=377&type=chunk) - The significant increase in 2019 net income compared to 2018 was largely due to a one-time **$34.8 million charitable contribution** made in 2018, which reduced that year's net income[382](index=382&type=chunk)[383](index=383&type=chunk) [Risk Management](index=63&type=section&id=Risk%20Management) The company manages credit, interest rate, and liquidity risks through disciplined underwriting, modeling, and maintaining a stable funding base - The allowance for loan losses increased to **$74.7 million**, or **1.21%** of total loans, at Dec 31, 2020, up from $61.7 million, or 1.00% of total loans, at year-end 2019, primarily due to the economic impact of the COVID-19 pandemic[438](index=438&type=chunk)[441](index=441&type=chunk) - Non-performing assets increased to **$8.2 million** (**0.09%** of total assets) at Dec 31, 2020, from $6.7 million (0.08% of total assets) at year-end 2019[419](index=419&type=chunk) Interest Rate Risk Simulation (as of Dec 31, 2020) | Rate Change (bps) | Change in Net Interest Income (%) | Change in Net Portfolio Value (%) | | :--- | :--- | :--- | | +200 | 4.60% | (2.39%) | | +100 | 2.21% | (0.08%) | | -100 | (6.90%) | (9.00%) | - As of January 31, 2021, the company had granted COVID-19 related loan modifications on loans with current balances of **$734.7 million** for commercial and **$178.1 million** for consumer loans[450](index=450&type=chunk) [Controls and Procedures](index=78&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and the independent auditor concluded that the company's disclosure controls and internal controls over financial reporting were effective - Management concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2020[491](index=491&type=chunk) - Management's report on internal control over financial reporting concluded that the company's internal controls were **effective** as of December 31, 2020, based on the COSO framework[493](index=493&type=chunk)[497](index=497&type=chunk) - The independent registered public accounting firm's attestation report expressed an **unqualified opinion** on the effectiveness of the company's internal control over financial reporting[498](index=498&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=79&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, officers, and corporate governance is incorporated by reference from the company's 2021 Proxy Statement - Information related to directors, corporate governance, and the code of ethics is **incorporated by reference** from the 2021 Proxy Statement[501](index=501&type=chunk)[504](index=504&type=chunk)[505](index=505&type=chunk) [Executive Compensation](index=80&type=section&id=Item%2011.%20Executive%20Compensation) Details regarding executive and director compensation are incorporated by reference from the company's 2021 Proxy Statement - Information regarding executive compensation is **incorporated by reference** from the 2021 Proxy Statement[507](index=507&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=80&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership by management and beneficial owners is incorporated by reference from the 2021 Proxy Statement - Information regarding security ownership is **incorporated by reference** from the 2021 Proxy Statement[508](index=508&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=80&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the 2021 Proxy Statement - Information regarding related party transactions and director independence is **incorporated by reference** from the 2021 Proxy Statement[509](index=509&type=chunk)[510](index=510&type=chunk) [Principal Accounting Fees and Services](index=80&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Details regarding principal accountant fees and services are incorporated by reference from the company's 2021 Proxy Statement - Information regarding principal accountant fees and services is **incorporated by reference** from the 2021 Proxy Statement[511](index=511&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=81&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed as part of the Form 10-K report - This section contains a list of all exhibits filed with the Form 10-K, including the company's certificate of incorporation, bylaws, employment agreements, and SEC certifications[514](index=514&type=chunk)[528](index=528&type=chunk) [Financial Statements](index=84&type=section&id=Financial%20Statements) The company's audited consolidated financial statements received an unqualified opinion from its independent auditor - KPMG LLP issued an **unqualified opinion** on the consolidated financial statements, stating they present fairly the financial position and results of operations in conformity with US GAAP[530](index=530&type=chunk) - KPMG LLP also issued an **unqualified opinion** on the effectiveness of the Company's internal control over financial reporting as of December 31, 2020[531](index=531&type=chunk)[543](index=543&type=chunk) - A critical audit matter identified was the assessment of the **allowance for loan losses** for loans collectively evaluated for impairment, due to the significant measurement uncertainty and subjective judgment involved[535](index=535&type=chunk)[536](index=536&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading symbol(s) Name of each exchange on which registered Common Stock, $0.01 par value per share CLBK The Nasdaq Stock Market LLC FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-38456 ...

Financial Performance - Net income for the quarter ended June 30, 2020, was $15.1 million, an increase of $3.1 million, or 25.5%, compared to the same quarter in 2019 [306]. - Net income for the six months ended June 30, 2020, was $21.9 million, a decrease of $5.1 million, or 18.9%, compared to $27.0 million for the same period in 2019 [316]. - Net interest income increased by $15.0 million, or 36.8%, to $55.9 million for the quarter ended June 30, 2020, driven by higher average balances on loans and securities [307]. - Net interest income increased to $106.6 million for the six months ended June 30, 2020, up $23.3 million, or 28.1%, from $83.2 million in the prior year [317]. - Non-interest income rose by $233,000, or 3.4%, to $7.0 million for the quarter ended June 30, 2020, primarily from gains on loan sales and changes in fair value of equity securities [313]. - Non-interest income was $13.4 million for the six months ended June 30, 2020, an increase of $587,000, or 4.6%, from $12.8 million for the same period in 2019 [323]. Asset and Liability Management - Total assets increased by $774.5 million, or 9.5%, to $9.0 billion at June 30, 2020, from $8.2 billion at December 31, 2019 [297]. - Total liabilities increased by $716.0 million, or 9.9%, to $7.9 billion at June 30, 2020, mainly due to a $935.3 million increase in total deposits [304]. - Total stockholders' equity increased by $58.5 million, or 6.0%, to $1.0 billion at June 30, 2020, driven by net income and additional capital from the Roselle merger [305]. - The Company’s strategy for liabilities focuses on maintaining a stable funding base through core deposit accounts [350]. - The company maintains a stable funding base by focusing on core deposit accounts, which aids in retaining maturing time deposit accounts [350]. Loan Performance and Provisions - Loans receivable, net, increased by $430.0 million, or 7.0%, to $6.6 billion at June 30, 2020, with $467.0 million attributed to the SBA Paycheck Protection Program [300]. - The provision for loan losses was $5.7 million for the quarter ended June 30, 2020, an increase of $5.6 million from the same quarter in 2019, due to economic conditions related to COVID-19 [312]. - The provision for loan losses rose to $15.3 million for the six months ended June 30, 2020, an increase of $14.8 million from $548,000 in the same period of 2019 [322]. - Non-performing loans totaled $13.5 million, or 0.20% of total gross loans, as of June 30, 2020, compared to $6.7 million, or 0.11%, at December 31, 2019 [325]. - The allowance for loan losses was $74.0 million, or 1.12% of total loans, at June 30, 2020, up from $61.7 million, or 1.00%, at December 31, 2019 [328]. - The Company granted $768.0 million in commercial loan modifications and $195.0 million in consumer-related loan modifications due to COVID-19 [329]. Capital Adequacy - As of June 30, 2020, the Company and its subsidiary Bank exceeded all capital adequacy requirements, maintaining a total capital to risk-weighted assets ratio of at least 10.0% [362]. - As of June 30, 2020, total capital to risk-weighted assets was $1,092,838, representing a ratio of 18.22%, exceeding the minimum requirement of 8.00% [364]. - Tier 1 capital to risk-weighted assets was $1,006,951, with a ratio of 16.79%, above the required 6.00% [364]. - Common equity tier 1 capital to risk-weighted assets was $999,734, equating to 16.67%, surpassing the minimum of 4.50% [364]. - The company's total capital to risk-weighted assets increased from $1,061,555 (17.25%) at December 31, 2019, to $1,092,838 (18.22%) at June 30, 2020 [364]. - The Bank's total capital to risk-weighted assets ratio was 15.58% as of June 30, 2020, above the 8.00% minimum [368]. Interest Rate Sensitivity - The Company’s net interest income would increase by approximately 2.90% if interest rates were to rise by 200 basis points over a one-year period [357]. - In the event of a 200 basis point increase in interest rates, the net portfolio value (NPV) is projected to decrease by 4.69% [358]. - A 200 basis point increase in interest rates is projected to increase net interest income by approximately 2.90% [358]. - A 100 basis point decrease in interest rates is expected to decrease net interest income by 3.25% [358]. - As of June 30, 2020, the net portfolio value (NPV) is projected to decrease by 4.69% with an immediate and sustained 200 basis point increase in interest rates [358]. Management and Controls - The company's disclosure controls and procedures were deemed effective as of June 30, 2020, following an evaluation by management [370]. - The Company’s management concluded that the disclosure controls and procedures were effective as of June 30, 2020 [370]. - The Asset/Liability Committee regularly reviews the impact of interest rate changes on net interest income and net income [349].

Part I. Financial Information [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents Columbia Financial, Inc.'s unaudited consolidated financial statements and notes for the specified periods [Consolidated Statements of Financial Condition](index=3&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) As of March 31, 2020, total assets increased to $8.33 billion from $8.19 billion at year-end 2019, driven by growth in net loans receivable, while total liabilities also rose to $7.36 billion from $7.21 billion, primarily due to an increase in deposits, and total stockholders' equity decreased slightly to $961.1 million from $982.5 million Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2020 (in thousands) | December 31, 2019 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$8,325,051** | **$8,188,694** | | Loans receivable, net | $6,181,305 | $6,135,857 | | Debt securities available for sale | $1,116,417 | $1,098,336 | | **Total Liabilities** | **$7,363,925** | **$7,206,177** | | Deposits | $5,772,418 | $5,645,842 | | Borrowings | $1,376,941 | $1,407,022 | | **Total Stockholders' Equity** | **$961,126** | **$982,517** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) For the three months ended March 31, 2020, net income was $6.8 million, a 54.7% decrease from $14.9 million in the prior-year period, primarily driven by a significant increase in the provision for loan losses to $9.6 million, up from $436,000 in Q1 2019, while net interest income grew to $50.7 million from $42.4 million year-over-year Quarterly Income Statement Comparison (Unaudited) | Metric | Three Months Ended March 31, 2020 (in thousands) | Three Months Ended March 31, 2019 (in thousands) | | :--- | :--- | :--- | | Net Interest Income | $50,702 | $42,384 | | Provision for Loan Losses | $9,568 | $436 | | Non-interest Income | $6,391 | $6,037 | | Non-interest Expense | $38,508 | $29,559 | | **Net Income** | **$6,765** | **$14,919** | | **Earnings Per Share (Basic & Diluted)** | **$0.06** | **$0.13** | [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Total comprehensive income for Q1 2020 was $15.8 million, compared to $21.5 million in Q1 2019, including net income of $6.8 million and other comprehensive income of $9.1 million, primarily driven by unrealized gains on debt securities available for sale, partially offset by unrealized losses on cash flow hedges Comprehensive Income Breakdown (Unaudited) | Component | Three Months Ended March 31, 2020 (in thousands) | Three Months Ended March 31, 2019 (in thousands) | | :--- | :--- | :--- | | Net Income | $6,765 | $14,919 | | Other Comprehensive Income | $9,070 | $6,625 | | **Total Comprehensive Income** | **$15,835** | **$21,544** | [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity decreased by $21.4 million during the first quarter of 2020, from $982.5 million to $961.1 million, primarily due to the repurchase of treasury stock for $40.4 million, partially offset by $6.8 million in net income and $9.1 million in other comprehensive income - Key drivers of the change in stockholders' equity for Q1 2020 include: - Net Income: **+$6.8 million** - Other Comprehensive Income: **+$9.1 million** - Purchase of Treasury Stock: **-$40.4 million** - Stock-based Compensation: **+$2.2 million**[21](index=21&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first quarter of 2020, net cash provided by operating activities was $43.2 million, net cash used in investing activities totaled $87.8 million mainly due to a net increase in loans, and financing activities provided $57.4 million driven by a net increase in deposits, resulting in a net increase in cash and cash equivalents of $12.8 million Cash Flow Summary (Unaudited) | Activity | Three Months Ended March 31, 2020 (in thousands) | Three Months Ended March 31, 2019 (in thousands) | | :--- | :--- | :--- | | Net Cash from Operating Activities | $43,167 | $25,834 | | Net Cash used in Investing Activities | ($87,770) | ($105,831) | | Net Cash from Financing Activities | $57,380 | $102,937 | | **Net Increase in Cash** | **$12,777** | **$22,940** | [Notes to Unaudited Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) These notes detail accounting policies and financial statement components, covering CECL deferral, loan loss allowance, and acquisitions - The Company elected to defer the adoption of the Current Expected Credit Losses (CECL) methodology as permitted by the CARES Act. Adoption is expected by December 31, 2020, and is anticipated to increase the allowance for loan losses by **10% to 20%**[57](index=57&type=chunk)[58](index=58&type=chunk) - The allowance for loan losses increased from **$61.7 million** at year-end 2019 to **$71.2 million** at March 31, 2020, with a provision of **$9.6 million** for the quarter, largely due to the economic impact of the COVID-19 pandemic[129](index=129&type=chunk) - On January 1, 2020, the Company adopted the new lease accounting standard (Topic 842), resulting in the recognition of a right-of-use asset of **$22.2 million** and a lease liability of **$23.3 million**[147](index=147&type=chunk) - On April 1, 2020, subsequent to the reporting period, the Company completed its acquisition of Roselle Bank[264](index=264&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses key factors impacting financial condition and operations, highlighting asset growth, net income decline, and rising non-performing assets [Comparison of Financial Condition](index=48&type=section&id=Comparison%20of%20Financial%20Condition) Total assets grew by $136.4 million (1.7%) to $8.3 billion in Q1 2020, primarily from a $45.4 million increase in net loans and a $73.4 million increase in other assets, which included a right-of-use asset from the new lease standard, while total liabilities increased by $157.7 million, driven by a $126.6 million rise in deposits, and stockholders' equity fell by $21.4 million due to $40.4 million in stock repurchases - Total assets increased by **$136.4 million**, or **1.7%**, to **$8.3 billion** at March 31, 2020[275](index=275&type=chunk) - Net loans receivable increased by **$45.4 million**, or **0.7%**, to **$6.2 billion**, driven by growth in commercial real estate, construction, and commercial business loans[277](index=277&type=chunk) - Total liabilities increased by **$157.7 million**, or **2.2%**, primarily due to a **$126.6 million** increase in deposits, particularly non-interest-bearing demand accounts[279](index=279&type=chunk) [Comparison of Results of Operations](index=49&type=section&id=Comparison%20of%20Results%20of%20Operations) Net income for Q1 2020 was $6.8 million, down $8.2 million (54.7%) from Q1 2019, mainly caused by a $9.1 million increase in the provision for loan losses reflecting the deteriorating economic outlook from the COVID-19 pandemic, while net interest income rose by $8.3 million to $50.7 million, but non-interest expense also increased by $8.9 million, driven by higher compensation and merger-related costs - Net income decreased by **$8.2 million**, or **54.7%**, compared to Q1 2019[282](index=282&type=chunk) - The provision for loan losses surged to **$9.6 million**, an increase of **$9.1 million** from the prior year, primarily due to the expected economic impact of the COVID-19 pandemic[286](index=286&type=chunk) - Non-interest expense increased by **$8.9 million**, or **30.3%**, due to higher compensation, employee benefits, and merger-related expenses[287](index=287&type=chunk) [Asset Quality and Impact of COVID-19](index=50&type=section&id=Asset%20Quality%20and%20Impact%20of%20COVID-19) Asset quality weakened, with non-performing loans increasing to $10.7 million (0.17% of total loans) from $6.7 million at year-end 2019, and the allowance for loan losses to total loans ratio increased to 1.14% from 1.00%, reflecting increased qualitative factors due to the pandemic, while as of May 7, 2020, the Company had received approximately $995 million in loan modification requests and originated $475 million in PPP loans - Non-performing loans increased by **$4.0 million** to **$10.7 million**, or **0.17%** of total gross loans[290](index=290&type=chunk) - As of May 7, 2020, the Company had received loan modification requests totaling approximately **$840 million** for commercial loans and **$155 million** for consumer loans[292](index=292&type=chunk) - The Company originated approximately **2,200 loans** for **$475.0 million** under the SBA's Paycheck Protection Program (PPP) as of May 7, 2020[294](index=294&type=chunk) [Critical Accounting Policies](index=50&type=section&id=Critical%20Accounting%20Policies) Critical accounting policies, including allowance for loan losses, deferred tax assets, and retirement benefits, involve significant judgment, particularly regarding COVID-19 and CECL - The calculation of the allowance for loan losses is a critical accounting policy involving a high degree of judgment, particularly regarding economic conditions, collateral values, and loss factors[295](index=295&type=chunk) - Due to the COVID-19 pandemic's impact on economic conditions, management established an additional qualitative loss factor, contributing to a **$9.6 million** loan loss provision for the quarter[308](index=308&type=chunk) - The Company elected to defer the adoption of the CECL methodology as permitted by the CARES Act and will adopt it by December 31, 2020[295](index=295&type=chunk)[297](index=297&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Company manages interest rate risk through its Asset/Liability Committee, using balance sheet and income simulation models, where as of March 31, 2020, a +200 basis point rate shock was projected to decrease net interest income by 0.81% and Net Portfolio Value (NPV) by 9.74% over one year, and the Company and its subsidiary bank remain well-capitalized, exceeding all regulatory minimums Interest Rate Sensitivity Analysis (as of March 31, 2020) | Rate Shock (Basis Points) | Change in Net Interest Income (12 Months) | Change in Net Portfolio Value (NPV) | | :--- | :--- | :--- | | +200 | (0.81)% | (9.74)% | | +100 | (0.45)% | (4.09)% | | -100 | (0.62)% | (9.56)% | Company Capital Ratios (as of March 31, 2020) | Ratio | Actual | Minimum Adequacy | Well Capitalized Requirement | | :--- | :--- | :--- | :--- | | Total capital (to risk-weighted assets) | 15.94% | 8.00% | N/A | | Tier 1 capital (to risk-weighted assets) | 14.67% | 6.00% | N/A | | Common equity tier 1 capital (to risk-weighted assets) | 14.56% | 4.50% | N/A | Bank Capital Ratios (as of March 31, 2020) | Ratio | Actual | Minimum Adequacy | Well Capitalized Requirement | | :--- | :--- | :--- | :--- | | Total capital (to risk-weighted assets) | 14.38% | 8.00% | 10.00% | | Tier 1 capital (to risk-weighted assets) | 13.19% | 6.00% | 8.00% | | Common equity tier 1 capital (to risk-weighted assets) | 13.19% | 4.50% | 6.50% | [Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the Company's disclosure controls and procedures and concluded they were effective as of March 31, 2020, with no material changes in the Company's internal control over financial reporting during the quarter - The CEO and CFO concluded that the Company's disclosure controls and procedures were **effective as of the end of the period covered by the report**[332](index=332&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, the Company's internal controls**[333](index=333&type=chunk) Part II. Other Information [Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) The Company is involved in various legal actions arising in the normal course of business, which management does not expect to have a material adverse impact on the Company's financial condition - Ongoing legal actions and claims are **not expected to materially impact** the Company's financial condition[336](index=336&type=chunk) [Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) The primary update to risk factors relates to the COVID-19 pandemic, highlighting significant uncertainty and potential adverse impacts on the Company's business, customers, and financial results due to market volatility, economic disruptions, and potential increases in loan delinquencies and defaults - The COVID-19 pandemic has introduced **significant volatility and could harm business and results of operations**[338](index=338&type=chunk) - Disruptions to customers could **increase the risk of delinquencies, defaults, and losses on loans, and negatively impact regional economic conditions**[340](index=340&type=chunk) - The pandemic could **create widespread business continuity issues, affecting employees, customers, and third-party vendors**[341](index=341&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of 2020, the Company repurchased a total of 2,557,126 shares under its publicly announced stock repurchase programs at an average price of $15.78 per share, with the repurchase programs completed on April 23, 2020 Stock Repurchases in Q1 2020 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2020 | 894,326 | $16.89 | | Feb 2020 | 584,700 | $16.97 | | Mar 2020 | 1,078,100 | $14.23 | | **Total** | **2,557,126** | **$15.78** | - The Company's stock repurchase programs were completed on **April 23, 2020**[345](index=345&type=chunk) [Other Items](index=59&type=section&id=Item%203-6) Items 3 (Defaults Upon Senior Securities) and 4 (Mine Safety Disclosures) are not applicable, Item 5 (Other Information) reports no additional information, and Item 6 (Exhibits) lists the exhibits filed with the report - **No defaults on senior securities or mine safety disclosures were reported**[346](index=346&type=chunk)[347](index=347&type=chunk)

Part I [Business](index=4&type=section&id=Item%201.%20Business) Columbia Financial, Inc. operates as the holding company for Columbia Bank, a federally chartered savings bank providing traditional financial services and actively pursuing growth through strategic acquisitions - Columbia Financial, Inc. is the holding company for Columbia Bank, a federally chartered savings bank serving businesses and consumers in its market areas[13](index=13&type=chunk)[14](index=14&type=chunk) - On November 1, 2019, the Company completed its acquisition of Stewardship Financial Corporation and its subsidiary, Atlantic Stewardship Bank[18](index=18&type=chunk) - On December 2, 2019, the Company entered into an agreement to acquire RSB Bancorp, MHC, and its subsidiaries, with the transaction expected to close in the second quarter of 2020[19](index=19&type=chunk)[21](index=21&type=chunk) - The company operates **64** full-service banking offices across ten counties in New Jersey, considering its market area to be the State of New Jersey and the suburbs surrounding New York City and Philadelphia[24](index=24&type=chunk)[25](index=25&type=chunk) [Lending Activities](index=5&type=section&id=Item%201.%20Business-Lending%20Activities) The company's diverse lending activities focus on commercial loans, with multifamily and commercial real estate loans comprising the largest portfolio segment Loan Portfolio Composition as of December 31, 2019 | Loan Category | Amount (in billions) | Percentage of Total Portfolio | | :--- | :--- | :--- | | Multifamily and Commercial Real Estate | $2.9 | 47.3% | | One-to-Four Family Residential | $2.1 | 33.7% | | Home Equity Loans and Advances | $0.388 | 6.3% | | Construction Loans | $0.283 | - | | Other Consumer Loans | $0.002 | - | - The company intends to continue emphasizing commercial lending, having hired additional lenders to expand its commercial real estate and commercial and industrial lending efforts[31](index=31&type=chunk) - The largest single lending relationship exposure was **$107.5 million**, well below the regulatory limit of **$126.7 million** for loans to one borrower[67](index=67&type=chunk) [Securities Activities](index=10&type=section&id=Item%201.%20Business-Securities%20Activities) The securities portfolio primarily comprises U.S. Government and agency obligations, structured to mitigate credit risk with a high concentration in government-backed securities - The securities portfolio is primarily composed of U.S. Government and agency obligations, mortgage-backed securities, and corporate debt, classified as either held-to-maturity or available-for-sale[71](index=71&type=chunk) - To mitigate credit risk, approximately **94.3%** of the total securities portfolio consisted of direct government obligations or government-sponsored enterprise obligations as of December 31, 2019[75](index=75&type=chunk) - At December 31, 2019, mortgage-backed securities and CMOs issued by Freddie Mac, Fannie Mae, and Ginnie Mae comprised **89.2%** of the available-for-sale portfolio and **93.0%** of the held-to-maturity portfolio[72](index=72&type=chunk)[73](index=73&type=chunk) [Deposit Activities and Other Sources of Funds](index=11&type=section&id=Item%201.%20Business-Deposit%20Activities%20and%20Other%20Sources%20of%20Funds) The company's primary funding sources are diverse deposits from various customer segments and supplemental borrowings from the FHLB and Federal Reserve - Primary sources of funds are deposits, borrowings, and loan/securities repayments[77](index=77&type=chunk) - Deposit customers are categorized into retail, business, and municipal sectors, with various products offered including checking, savings, and certificates of deposit[78](index=78&type=chunk)[79](index=79&type=chunk) - The company utilizes advances from the FHLB as a key source of supplemental funding and has access to the Federal Reserve Bank's discount window[81](index=81&type=chunk) [Regulation and Supervision](index=11&type=section&id=Item%201.%20Business-Regulation%20and%20Supervision) Columbia Bank is primarily regulated by the OCC and FDIC, adhering to federal regulations including capital requirements, QTL, and CRA, and was 'well capitalized' in 2019 - The Bank is primarily regulated by the Office of the Comptroller of the Currency (OCC), with secondary oversight from the FDIC. The holding company is supervised by the Federal Reserve Board[82](index=82&type=chunk)[84](index=84&type=chunk) - The Bank must meet several minimum capital standards, including ratios for common equity Tier 1, Tier 1, and Total capital to risk-weighted assets. As of December 31, 2019, the Bank exceeded all applicable requirements and was considered **'well capitalized'**[90](index=90&type=chunk)[96](index=96&type=chunk)[100](index=100&type=chunk) - The Bank must satisfy the Qualified Thrift Lender (QTL) test, requiring at least **65%** of its "portfolio assets" to be in "qualified thrift investments," which it met as of December 31, 2019[101](index=101&type=chunk)[102](index=102&type=chunk) - The Bank received a **"satisfactory"** Community Reinvestment Act (CRA) rating in its most recent federal examination[110](index=110&type=chunk) [Risk Factors](index=20&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from its concentrated commercial real estate loan portfolio, acquisition strategy, geographic concentration, interest rate fluctuations, and new accounting standards - The company's multifamily and commercial real estate loan portfolio totaled **$2.9 billion**, or **47.3%** of the total loan portfolio, exposing it to increased lending risks compared to residential mortgages[158](index=158&type=chunk) - The company's non-owner-occupied commercial real estate loans represented **319%** of the Bank's total risk-based capital, exceeding the **300%** threshold in regulatory guidance, which could lead to increased supervisory scrutiny[160](index=160&type=chunk) - The geographic concentration of the loan portfolio in New Jersey and the metropolitan New York and Philadelphia areas makes the company vulnerable to local economic downturns[173](index=173&type=chunk)[174](index=174&type=chunk) - The company faces risks from its M&A strategy, including integration challenges and potential dilution of tangible book value, as evidenced by the 2019 acquisition of Stewardship and the pending acquisition of Roselle Bank[177](index=177&type=chunk) - The company is exposed to significant interest rate risk due to a high percentage of fixed-rate loans and certificates of deposit on its balance sheet[179](index=179&type=chunk) - The upcoming transition from LIBOR to an alternative reference rate like SOFR creates uncertainty and could adversely affect the value of LIBOR-based instruments and lead to disputes[203](index=203&type=chunk) - The implementation of the Current Expected Credit Loss (CECL) accounting standard, effective January 1, 2020, is expected to increase the allowance for loan losses by no more than **10%** and may introduce greater volatility[205](index=205&type=chunk)[291](index=291&type=chunk) [Properties](index=26&type=section&id=Item%202.%20Properties) The company operates through a main office and 64 branch offices in New Jersey, with a mix of owned and leased properties - The company operates a network of **64** branch offices in New Jersey[207](index=207&type=chunk) - The company owns **28** of its properties and leases the remaining **36**[207](index=207&type=chunk) [Legal Proceedings](index=26&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in routine legal proceedings that management deems immaterial to its financial condition and operations - Management considers all current legal proceedings to be routine and immaterial to the company's financial condition[208](index=208&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=26&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, with no current dividend payments anticipated, while an active stock repurchase program is in place - The company's common stock is listed on the Nasdaq under the symbol **"CLBK"**[212](index=212&type=chunk) - The company has not declared any dividends and does not currently anticipate paying them, partly due to the Federal Reserve's policy of not permitting its mutual holding company (MHC) to waive dividend receipts[213](index=213&type=chunk)[215](index=215&type=chunk) Issuer Purchases of Equity Securities (Q4 2019) | Period | Total Shares Repurchased | Average Price Paid per Share | | :--- | :--- | :--- | | Oct 1 - 31, 2019 | 327,700 | $15.81 | | Nov 1 - 30, 2019 | 44,231 | $16.64 | | Dec 1 - 31, 2019 | 473,800 | $16.98 | | **Total** | **845,731** | **$16.51** | - The Board of Directors authorized a stock repurchase program for up to **4,000,000** shares on June 11, 2019, and expanded it by an additional **3,000,000** shares on December 5, 2019[222](index=222&type=chunk)[223](index=223&type=chunk) [Selected Financial Data](index=30&type=section&id=Item%206.%20Selected%20Financial%20Data) This section summarizes the company's consolidated financial data, highlighting significant asset and net income growth in 2019, alongside key performance ratios Selected Financial Condition Data (in thousands) | | Dec 31, 2019 ($) | Dec 31, 2018 ($) | | :--- | :--- | :--- | | Total assets | $8,188,694 | $6,691,618 | | Loans receivable, net | $6,135,857 | $4,916,840 | | Deposits | $5,645,842 | $4,413,873 | | Stockholder's equity | $982,517 | $972,060 | Selected Operating Data (in thousands) | | Year Ended Dec 31, 2019 ($) | Year Ended Dec 31, 2018 ($) | | :--- | :--- | :--- | | Net interest income | $172,371 | $164,034 | | Provision for loan losses | $4,224 | $6,677 | | Non-interest income | $31,636 | $21,688 | | Non-interest expense | $128,701 | $145,386 | | **Net income** | **$54,717** | **$22,736** | Selected Performance and Capital Ratios | Ratio | Dec 31, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | Return on average assets | 0.77% | 0.36% | | Return on average equity | 5.50% | 2.87% | | Net interest margin | 2.58% | 2.74% | | Efficiency ratio | 63.09% | 78.28% | | NPLs to total gross loans | 0.11% | 0.06% | | Columbia Bank Tier 1 capital (to adjusted total assets) | 10.25% | 12.60% | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=34&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A discusses the company's financial condition and operations, emphasizing strategic growth, asset and income expansion, and detailed risk management [Business Strategy](index=34&type=section&id=Item%207.%20MD%26A-Business%20Strategy) The company's business strategy focuses on profitable growth through commercial banking expansion, balance sheet growth, fee income generation, and strategic acquisitions - Expand commercial business lending, which offers shorter terms and variable rates to help manage interest rate risk[249](index=249&type=chunk) - Increase fee income by growing the title insurance business, expanding wealth management services, and pursuing acquisitions of other fee-based businesses[252](index=252&type=chunk)[253](index=253&type=chunk) - Expand the franchise through de novo branching and acquisitions of other financial institutions, such as the completed Stewardship acquisition and the pending Roselle Bank acquisition[256](index=256&type=chunk) - Enhance technology infrastructure, including a new commercial loan underwriting system (implemented in 2019) and a planned digital mortgage system[262](index=262&type=chunk) [Comparison of Financial Condition at December 31, 2019 and 2018](index=41&type=section&id=Item%207.%20MD%26A-Comparison%20of%20Financial%20Condition) Total assets, net loans, and deposits significantly increased in 2019, primarily driven by the Stewardship Financial acquisition, while stockholders' equity saw modest growth - Total assets increased **22.4%** to **$8.2 billion**, largely due to the acquisition of Stewardship Financial[298](index=298&type=chunk) Loan Portfolio Growth (2018 vs. 2019) | Loan Category | 2019 (in millions) | 2018 (in millions) | % Change | | :--- | :--- | :--- | :--- | | One-to-four family | $2,077.1 | $1,830.2 | 13.5% | | Multifamily and commercial | $2,920.0 | $2,142.2 | 36.3% | | Commercial business loans | $483.2 | $333.9 | 44.7% | | **Total Gross Loans** | **$6,169.3** | **$4,962.3** | **24.3%** | Deposit Growth (2018 vs. 2019) | Deposit Category | 2019 (in millions) | 2018 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Non-interest-bearing demand | $958.4 | $723.8 | 32.4% | | Interest-bearing demand | $1,720.4 | $1,219.4 | 41.1% | | Certificates of deposit | $2,013.1 | $1,700.3 | 18.4% | | **Total Deposits** | **$5,645.8** | **$4,413.9** | **27.9%** | [Results of Operations](index=51&type=section&id=Item%207.%20MD%26A-Results%20of%20Operations) Net income significantly increased in 2019 due to the absence of a prior-year charitable contribution, alongside growth in net interest and non-interest income Summary of Income Statement Changes (2019 vs. 2018) | Item | 2019 (in millions) | 2018 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Net interest income | $172.4 | $164.0 | 5.1% | | Provision for loan losses | $4.2 | $6.7 | (36.7)% | | Non-interest income | $31.6 | $21.7 | 45.9% | | Non-interest expense | $128.7 | $145.4 | (11.5)% | | **Net income** | **$54.7** | **$22.7** | **140.7%** | - The decrease in non-interest expense was primarily due to a one-time **$34.8 million** charitable contribution to the Columbia Bank Foundation in 2018. Excluding this, non-interest expense increased by **$18.1 million** in 2019[343](index=343&type=chunk)[353](index=353&type=chunk) - The increase in non-interest income was largely driven by a **$4.1 million** increase in income from swap transactions and a **$2.5 million** increase in gains on the sale of securities[342](index=342&type=chunk)[351](index=351&type=chunk) - The effective tax rate for 2019 was **23.0%**, down from **32.5%** in 2018. The 2018 rate was higher due to the net loss impact from the large charitable contribution[344](index=344&type=chunk)[355](index=355&type=chunk) [Risk Management](index=61&type=section&id=Item%207.%20MD%26A-Risk%20Management) The company's risk management framework addresses credit, interest rate, and liquidity risks through conservative practices, monitoring, and diverse funding sources Non-Performing Assets (in thousands) | | Dec 31, 2019 ($) | Dec 31, 2018 ($) | | :--- | :--- | :--- | | Non-accrual loans | $6,687 | $2,789 | | Real estate owned | $0 | $92 | | **Total non-performing assets** | **$6,687** | **$2,881** | | NPA to total assets | 0.08% | 0.04% | Allowance for Loan Losses Activity (Year Ended Dec 31, 2019, in thousands) | | Amount ($) | | :--- | :--- | | Beginning Balance (Jan 1, 2019) | $62,342 | | Provision for loan losses | $4,224 | | Charge-offs | ($5,353) | | Recoveries | $496 | | **Ending Balance (Dec 31, 2019)** | **$61,709** | - The allowance for loan losses as a percentage of total loans decreased from **1.26%** in 2018 to **1.00%** in 2019, largely due to purchase accounting standards related to the Stewardship acquisition[426](index=426&type=chunk) Interest Rate Sensitivity Analysis (as of Dec 31, 2019) | Rate Change (bps) | Change in Net Interest Income (12 months) | Change in Net Portfolio Value (NPV) | | :--- | :--- | :--- | | +200 | +0.43% | (13.60)% | | +100 | +0.43% | (5.40)% | | -100 | (1.01)% | +1.90% | [Financial Statements and Supplementary Data](index=74&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements and KPMG's unqualified opinion, highlighting critical audit matters related to loan loss allowance and acquired loan fair value - Includes the Report of Independent Registered Public Accounting Firm (KPMG LLP), which provides an unqualified opinion on the consolidated financial statements and internal control over financial reporting[509](index=509&type=chunk)[510](index=510&type=chunk) - KPMG identified two critical audit matters: the assessment of the allowance for loan losses for loans collectively evaluated for impairment, and the assessment of the fair value measurement of loans acquired in the Stewardship Financial Corporation acquisition[514](index=514&type=chunk)[518](index=518&type=chunk) - The section includes the full set of consolidated financial statements and accompanying notes, as well as condensed financial statements for the parent company, Columbia Financial, Inc[473](index=473&type=chunk) [Controls and Procedures](index=74&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2019, with no material changes - Management concluded that the Company's disclosure controls and procedures were effective as of December 31, 2019[475](index=475&type=chunk) - There were no material changes in the Company's internal control over financial reporting during the fourth quarter of 2019[476](index=476&type=chunk) - Management assessed internal control over financial reporting using the COSO 2013 framework and concluded it was effective as of December 31, 2019[481](index=481&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=75&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) This section incorporates by reference information on directors, executive officers, corporate governance, and the Code of Ethics from the 2020 Proxy Statement - Information regarding directors, corporate governance, and the code of ethics is incorporated by reference from the Company's 2020 Proxy Statement[485](index=485&type=chunk)[488](index=488&type=chunk)[490](index=490&type=chunk) [Executive Compensation](index=76&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive and director compensation is incorporated by reference from the company's 2020 Proxy Statement - Details on executive compensation are incorporated by reference from the Company's 2020 Proxy Statement[491](index=491&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=76&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership by beneficial owners and management is incorporated by reference from the company's 2020 Proxy Statement - Information on security ownership is incorporated by reference from the Company's 2020 Proxy Statement[492](index=492&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=76&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the company's 2020 Proxy Statement - Details on related party transactions and director independence are incorporated by reference from the Company's 2020 Proxy Statement[493](index=493&type=chunk)[494](index=494&type=chunk) [Principal Accounting Fees and Services](index=76&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding principal accounting fees and services is incorporated by reference from the company's 2020 Proxy Statement - Information on principal accountant fees and services is incorporated by reference from the Company's 2020 Proxy Statement[495](index=495&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=77&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists exhibits filed with the Form 10-K, including corporate governance documents, employment agreements, compensation plans, and CEO/CFO certifications - Lists all exhibits filed with the report, including corporate governance documents, employment agreements, and compensation plans[502](index=502&type=chunk)[504](index=504&type=chunk) - Certifications by the Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a) and Section 1350 are filed as exhibits[506](index=506&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-38456 Columbia Financial, Inc. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ýQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-38456 Columbia Financial, Inc. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 22-350 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading symbol(s) Name of each exchange on which registered Common Stock, $0.01 par value per share CLBK The Nasdaq Stock Market LLC FORM 10-Q (Mark one) ýQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-38456 Colu ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark one) ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2018 or ¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 001-38456 COLUMBIA FINANCIAL, INC. (Exact name of registrant as specified in its charter) | --- | --- | --- | --- | --- | |-- ...