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) | --- | --- | --- | --- | --- | |-- ...