Columbia Financial, Inc. Announces Financial Results for the Fourth Quarter and Year Ended December 31, 2024

Core Points - Columbia Financial, Inc. reported a net loss of $21.2 million for Q4 2024, a significant decline from a net income of $6.6 million in Q4 2023, primarily due to lower non-interest income and a balance sheet repositioning transaction [1][3] - For the full year 2024, the company recorded a net loss of $11.7 million compared to a net income of $36.1 million in 2023, driven by decreased net interest income and increased provisions for credit losses [1][13] Financial Performance - The net interest income for Q4 2024 was $46.4 million, a slight increase of 2.4% from $45.3 million in Q4 2023, attributed to a rise in interest income despite higher interest expenses [4][8] - The provision for credit losses increased to $2.9 million in Q4 2024 from $1.2 million in Q4 2023, reflecting higher net charge-offs and qualitative factors affecting loan performance [9][32] - Non-interest income for Q4 2024 was $(23.7) million, a decrease of 310.8% from $11.2 million in Q4 2023, mainly due to a $34.6 million loss on securities transactions [10] Balance Sheet Highlights - Total assets decreased by $170.1 million, or 1.6%, to $10.5 billion as of December 31, 2024, primarily due to a reduction in cash and cash equivalents and debt securities available for sale [23][24] - Loans receivable increased by $37.5 million, or 0.5%, to $7.9 billion, with notable growth in multifamily, construction, and commercial business loans [26] - Total liabilities decreased by $210.1 million, or 2.2%, to $9.4 billion, driven by a significant reduction in borrowings [29] Capital and Equity - Total stockholders' equity increased by $40.0 million, or 3.8%, to $1.1 billion, supported by stock-based compensation and comprehensive income, despite the net loss [30] - The company maintained a strong capital position, with no outstanding borrowings from the Federal Reserve Discount Window as of December 31, 2024 [34] Asset Quality - Non-performing loans rose to $21.7 million, or 0.28% of total gross loans, compared to $12.6 million, or 0.16% in the previous year, indicating a deterioration in asset quality [31] - The allowance for credit losses on loans increased to $60.0 million, or 0.76% of total gross loans, reflecting higher net charge-offs and qualitative factors [33]