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umbia Financial(CLBK) - 2024 Q4 - Annual Report
CLBKumbia Financial(CLBK)2025-03-03 21:32

Financial Performance and Securities - As of December 31, 2024, loan participations purchased totaled 174.2million,consistingof57commercialrealestateloans[68].AtDecember31,2024,60.7174.2 million, consisting of 57 commercial real estate loans[68]. - At December 31, 2024, 60.7% of the available for sale securities portfolio was comprised of mortgage-backed securities and CMOs issued by Freddie Mac, Fannie Mae, and Ginnie Mae[74]. - The company sold 352.3 million of debt securities available for sale in December 2024, funding loan growth of 72.9millionandpurchasing72.9 million and purchasing 78.1 million of higher yielding debt securities[73]. - At December 31, 2024, 88.6% of the held to maturity securities portfolio was comprised of mortgage-backed securities and CMOs issued by Freddie Mac, Fannie Mae, and Ginnie Mae[75]. - The company’s securities portfolio consists of approximately 93.2% direct government obligations or government-sponsored enterprise obligations as of December 31, 2024[77]. Capital and Regulatory Compliance - Columbia Bank's capital exceeded all applicable requirements as of December 31, 2024[93]. - Columbia Bank met the criteria for being considered "well capitalized," with a total risk-based capital ratio exceeding 10.0%[98]. - Federal regulations require a common equity Tier 1 capital to risk-weighted assets ratio of at least 4.5%[90]. - The capital standards mandate a minimum required leverage ratio of at least 4.0% of Tier 1 capital[90]. - Columbia Bank was in compliance with the loans-to-one borrower limitations as of December 31, 2024[94]. - Columbia Bank's capital requirements were in compliance as of December 31, 2024[117]. Deposit and Insurance Information - The FDIC increased initial base deposit insurance assessment rates by 2 basis points effective January 1, 2023, impacting Columbia Bank's assessment rates[108]. - The FDIC insures deposits at Columbia Bank up to a maximum of 250,000perseparatelyinsureddepositor[107].AnysignificantincreasesinFDICinsuranceassessmentscouldadverselyaffectColumbiaBanksoperatingexpenses[109].ColumbiaBanksspecialassessmentamountedto250,000 per separately insured depositor[107]. - Any significant increases in FDIC insurance assessments could adversely affect Columbia Bank's operating expenses[109]. - Columbia Bank's special assessment amounted to 4.5 million for the first quarter of 2024[112]. Employee Engagement and Workforce Development - As of December 31, 2024, Columbia Bank employed 755 full and part-time employees, with a voluntary turnover rate of 13.5% and an involuntary turnover rate of 3.6%[126]. - The attrition rate improved by nearly 60% over 2023 due to increased employee engagement efforts[126]. - In 2024, 53 employees received good grade awards totaling approximately 260,000,and34employeesreceivedapproximately260,000, and 34 employees received approximately 53,000 in student loan repayments[128]. - The company paid out over 100,000inwellnessprogramincentivestoapproximately60100,000 in wellness program incentives to approximately 60% of the workforce in 2024[130]. - The company was certified as a "Great Place to Work" with 85% employee participation in 2024[127]. - The company delivered over 43,000 hours of in-person or virtual learning completed by employees, focusing on customer service, sales, and digital banking[132]. - The company aims to develop a talent pool of well-educated and technically skilled professionals to support growth plans over the next decade[133]. Community and Corporate Responsibility - The company established the 1901 Community Development Corporation in 2024, with total assets of approximately 1.0 million, aimed at promoting affordable housing[145]. - The company is committed to enhancing shareholder value and maintaining a robust capital position while providing high-quality products and services[137]. - Columbia Bank received a "satisfactory" Community Reinvestment Act rating in its most recent federal examination[102]. Risk Management and Technological Investments - The company anticipates that adjustable-rate loans will better offset the adverse effects of an increase in interest rates compared to fixed-rate mortgages[60]. - Significant technological investments were made, including upgrades to the core banking platform and loan origination systems, aimed at enhancing customer features and automating routine tasks[133]. - The company has implemented policies and programs to ensure workplace safety and employee well-being, including an Employee Assistance Program[141]. Management and Governance - The company’s executive team includes experienced professionals with backgrounds in banking, finance, and human resources, ensuring strong leadership[149]. - Succession planning is linked to strategic planning, with various development programs in place to address leadership capacity and retention challenges[139]. - The company has incorporated market risk disclosures in the section titled "Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations"[421]. - Financial statements and supplementary data are included starting on page 74 of the report[421]. - There are no changes or disagreements with accountants regarding accounting and financial disclosure[421].