Financial Performance - Net income for the quarter ended September 30, 2024, was $6.2 million, a decrease of $2.9 million, or 32.3%, compared to $9.1 million for the same quarter in 2023[251]. - Net income for the nine months ended September 30, 2024, was $9.6 million, a decrease of $19.9 million, or 67.6%, compared to $29.5 million for the same period in 2023[261]. - Net interest income was $45.3 million for the quarter ended September 30, 2024, a decrease of $3.2 million, or 6.7%, from $48.5 million for the same quarter in 2023[252]. - Net interest income for the nine months ended September 30, 2024, was $131.6 million, a decrease of $29.0 million, or 18.1%, from $160.5 million for the same period in 2023[262]. - Non-interest income was $9.0 million for the quarter ended September 30, 2024, an increase of $376,000 from $8.6 million for the same quarter in 2023[258]. - Non-interest income increased to $25.6 million, up $9.5 million from $16.1 million for the nine months ended September 30, 2023[268]. Assets and Liabilities - Total assets increased by $40.9 million, or 0.4%, to $10.7 billion at September 30, 2024, compared to $10.6 billion at December 31, 2023[243]. - Total stockholders' equity increased by $38.8 million, or 3.7%, to $1.1 billion at September 30, 2024, compared to $1.0 billion at December 31, 2023[250]. - Total deposits reached $7.96 billion with an average deposit account balance of approximately $37,000 as of September 30, 2024[276]. Interest Expense and Credit Losses - Total interest expense increased by $20.7 million, or 41.6%, to $70.6 million for the quarter ended September 30, 2024, from $49.9 million for the same quarter in 2023[254]. - The provision for credit losses for the quarter ended September 30, 2024, was $4.1 million, an increase of $1.7 million from $2.4 million for the same quarter in 2023[257]. - Total interest expense rose to $206.2 million, an increase of $79.4 million or 62.5%, from $126.9 million for the nine months ended September 30, 2023[264]. - The provision for credit losses increased to $11.6 million, up $7.9 million from $3.6 million for the nine months ended September 30, 2023[267]. - Non-performing loans totaled $28.0 million, or 0.36% of total gross loans, as of September 30, 2024, compared to $12.6 million or 0.16% at December 31, 2023[271]. - The allowance for credit losses on loans was $58.5 million, or 0.75% of total gross loans, at September 30, 2024, compared to $55.1 million or 0.70% at December 31, 2023[275]. Capital Ratios - As of September 30, 2024, the Company reported total capital to risk-weighted assets of $1,144,340, representing a ratio of 14.37%, exceeding the minimum requirement of 8.00%[317]. - The Tier 1 capital to risk-weighted assets ratio was 13.59% at September 30, 2024, with an actual amount of $1,082,443, surpassing the minimum requirement of 6.00%[317]. - Common equity tier 1 capital to risk-weighted assets was 13.50% at September 30, 2024, with an actual amount of $1,075,226, exceeding the minimum requirement of 4.50%[317]. - The Company maintained a Tier 1 capital to adjusted total assets ratio of 10.16% as of September 30, 2024, above the minimum requirement of 4.00%[317]. - Columbia Bank's total capital to risk-weighted assets was 14.44% at September 30, 2024, with an actual amount of $1,059,944, exceeding the minimum requirement of 8.00%[318]. - Freehold Bank reported a total capital to risk-weighted assets ratio of 25.98% at September 30, 2024, with an actual amount of $46,167, significantly above the minimum requirement of 8.00%[318]. Liquidity Management - The Company maintains a stable funding base by focusing on core deposit accounts, which helps retain maturing time deposit accounts[299]. - The Company has contingency funding plans to assess liquidity needs arising from stress events, ensuring adequate liquidity from various sources[313]. - As of September 30, 2024, the potential liquidity from available sources exceeds any contingent liquidity needs[315]. - The Company assesses liquidity risks and sets policies to manage these risks at quarterly meetings of the Asset/Liability Committee[312]. - The company maintains a liquidity management strategy that includes diverse funding sources such as retail deposits and long-term debt[311]. Interest Rate Sensitivity - The net interest income would increase by approximately 1.21% if interest rates rise by 200 basis points, and decrease by 1.87% if rates fall by 200 basis points over a one-year horizon[306]. - In the event of an immediate and sustained 200 basis point increase in interest rates, the net present value (NPV) is projected to decrease by 16.29%[307]. - The net portfolio value (NPV) is projected to decrease by 16.29% with an immediate and sustained 200 basis point increase in interest rates, while a decrease of 200 basis points is expected to increase the NPV by 11.82%[307]. - The Asset/Liability Committee regularly reviews the impact of interest rate changes on net interest income and net income[298]. Internal Controls and Legal Matters - The Company’s management concluded that the disclosure controls and procedures were effective as of September 30, 2024[320]. - There were no changes in the Company's internal control over financial reporting that materially affected its effectiveness during the quarter ended September 30, 2024[321]. - Management believes that ongoing legal actions and claims will not have a material adverse impact on the company's financial condition[323].
umbia Financial(CLBK) - 2024 Q3 - Quarterly Report