umbia Financial(US:CLBK)2025-11-07 21:03Financial Performance - Net income for the quarter ended September 30, 2025, was $14.9 million, an increase of $8.7 million, or 140.3%, compared to $6.2 million for the same quarter in 2024[210] - Net interest income rose to $57.4 million for the quarter ended September 30, 2025, an increase of $12.1 million, or 26.7%, from $45.3 million for the same quarter in 2024[211] - Non-interest income increased by $889,000, or 9.9%, to $9.9 million for the quarter ended September 30, 2025, from $9.0 million for the same quarter in 2024[216] - Non-interest income increased by $2.9 million, or 11.3%, to $28.5 million for the nine months ended September 30, 2025, compared to $25.6 million in 2024[226] - The provision for credit losses decreased by $1.8 million, or 42.9%, to $2.3 million for the quarter ended September 30, 2025, compared to $4.1 million for the same quarter in 2024[215] - The provision for credit losses decreased by $3.8 million, or 33.1%, to $7.7 million for the nine months ended September 30, 2025, from $11.6 million in 2024[225] Asset and Liability Management - Total assets increased by $380.3 million, or 3.6%, to $10.9 billion at September 30, 2025, compared to $10.5 billion at December 31, 2024[203] - Total liabilities increased by $319.8 million, or 3.4%, to $9.7 billion at September 30, 2025, from $9.4 billion at December 31, 2024[207] - Loans receivable, net, increased by $349.9 million, or 4.5%, to $8.2 billion at September 30, 2025, from $7.9 billion at December 31, 2024[206] - Non-performing loans totaled $32.5 million, or 0.40% of total gross loans, at September 30, 2025, up from $21.7 million, or 0.28%, at December 31, 2024[229] - The allowance for credit losses on loans was $65.7 million, or 0.80% of total gross loans, at September 30, 2025, compared to $60.0 million, or 0.76%, at December 31, 2024[231] Capital Ratios - Total capital to risk-weighted assets ratio was 14.88% as of September 30, 2025, exceeding the minimum requirement of 8.00%[266] - Tier 1 capital to risk-weighted assets ratio was 14.01% as of September 30, 2025, surpassing the minimum requirement of 6.00%[266] - Common equity tier 1 capital to risk-weighted assets ratio was 13.92% as of September 30, 2025, above the minimum requirement of 4.50%[266] - The Company and Columbia Bank both exceeded all capital adequacy requirements as of September 30, 2025, indicating strong financial health[265] Interest Rate Sensitivity - As of September 30, 2025, net interest income would decrease by approximately 6.89% if rates were to rise 200 basis points, and would increase by 5.99% if rates were to decrease 200 basis points[255] - The average yield on loans increased by 4 basis points to 5.04% for the quarter ended September 30, 2025, compared to 5.00% for the same quarter in 2024[212] - The average yield on loans increased by 5 basis points to 4.96% for the nine months ended September 30, 2025, compared to 4.91% for the same period in 2024[221] - The average yield on securities increased by 65 basis points to 3.47% for the nine months ended September 30, 2025, compared to 2.82% for the same period in 2024[221] - The net interest margin increased by 40 basis points to 2.20% for the nine months ended September 30, 2025, compared to 1.80% for the same period in 2024[224] Liquidity Management - The Company had immediate access to approximately $2.5 billion and $2.7 billion of funding from various sources as of September 30, 2025, and December 31, 2024, respectively[263] - The Company maintains a stable funding base by focusing on core deposit accounts, which aids in retaining maturing time deposit accounts[249] - The Company’s liquidity management includes maintaining diverse borrowing resources to fund potential cash needs[260] - The Company has contingency funding plans to address liquidity needs arising from stress events such as rapid asset growth or financial market disruptions[262] Tax and Regulatory Compliance - The effective tax rate increased to 25.0% for the quarter ended September 30, 2025, compared to 15.5% for the same quarter in 2024, mainly due to higher pre-tax income[218] - Income tax expense increased by $11.0 million to $12.3 million for the nine months ended September 30, 2025, compared to $1.3 million in 2024, primarily due to higher pre-tax income[228] - The Company's management concluded that its disclosure controls and procedures were effective as of September 30, 2025[269] - There were no changes in the Company's internal control over financial reporting that materially affected its effectiveness during the quarter ended September 30, 2025[270]