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

FAIR LAWN, N.J., Jan. 28, 2025 (GLOBE NEWSWIRE) -- Columbia Financial, Inc. (the “Company”) (NASDAQ: CLBK), the mid-tier holding company for Columbia Bank ("Columbia"), reported a net loss of $21.2 million, or $0.21 per basic and diluted share, for the quarter ended December 31, 2024, as compared to net income of $6.6 million, or $0.06 per basic and diluted share, for the quarter ended December 31, 2023. The net loss for the quarter ended December 31, 2024 reflected lower non-interest income mainly due to the previously disclosed balance sheet repositioning transaction. As part of the Company’s strategy to improve future earnings and expand its net interest margin, the Company sold $352.3 million of debt securities available for sale during the fourth quarter of 2024, and the proceeds from the sale were used to fund loan growth of $72.9 million, purchase $78.1 million of higher yielding debt securities and prepay $170.0 million of higher cost borrowings. This balance sheet repositioning transaction resulted in a pre-tax loss on the sale of securities and extinguishment of debt of $37.9 million. The quarter ended December 31, 2024 results also reflected a higher provision for credit losses, partially offset by higher net interest income, mainly due to an increase in interest income, lower non-interest expense and lower income tax expense. For the quarter ended December 31, 2024, the Company reported core net income of $11.4 million, an increase of $1.3 million, or 12.4%, compared to core net income of $10.1 million for the quarter ended December 31, 2023. The benefit of the balance sheet repositioning transaction was modest during the fourth quarter, as the settlement of the transaction occurred late in the quarter. (Refer to "Reconciliation of GAAP to Non-GAAP Financial Measures" for a reconciliation of GAAP net income to core net income.) For the year ended December 31, 2024, the Company reported a net loss of $11.7 million, or $0.11 per basic and diluted share, as compared to net income of $36.1 million, or $0.35 per basic and diluted share, for the year ended December 31, 2023. The year ended December 31, 2024 reflected lower net interest income, mainly due to an increase in interest expense, higher provision for credit losses and lower non-interest income due to loss on securities transactions resulting from the balance sheet repositioning transaction described above, partially offset by lower non-interest expense and lower income tax expense. Non-interest income for the year ended December 31, 2024 included a $34.6 million loss on the sale of securities and non-interest expense included a $3.4 million loss on extinguishment of debt. Thomas J. Kemly, President and Chief Executive Officer commented: "The Company maintained a strong balance sheet and capital position, which will allow us to benefit from an improving operating environment. Additionally, our fourth quarter repositioning strategy should result in improved future earnings and net interest margin. We will continue to examine and implement prudent strategies that we believe will build a foundation for the future success of the Company and increased profitability." Results of Operations for the Three Months Ended December 31, 2024 and December 31, 2023 A net loss of $21.2 million was recorded for the quarter ended December 31, 2024, a decrease of $27.8 million, compared to net income of $6.6 million for the quarter ended December 31, 2023. The decrease in net income was primarily attributable to a $35.0 million decrease in non-interest income, and a $1.7 million increase in provision for credit losses, partially offset by a $1.1 million increase in net interest income, a $1.4 million decrease in non-interest expense, and a $6.4 million decrease in income tax expense. Net interest income was $46.4 million for the quarter ended December 31, 2024, an increase of $1.1 million, or 2.4%, from $45.3 million for the quarter ended December 31, 2023. The increase in net interest income was primarily attributable to a $6.1 million increase in interest income partially offset by a $5.0 million increase in interest expense on deposits and borrowings. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields. Market interest rates increased 100 basis points throughout the 2023 period and were subsequently reduced 100 basis points during the last four months of 2024. The increase in interest expense on deposits was driven by the higher rate environment coupled with intense competition for deposits in the market and the repricing of existing deposits into higher cost products throughout the majority of the 2024 fiscal year. However, during the fourth quarter, competitive pressures eased, and deposits became easier to attract, resulting in a reduced cost of deposits. The decrease in interest expense on borrowings was also impacted by the lower interest rates for new borrowings, along with a decrease in the average balance of borrowings. Prepayment penalties, which are included in interest income on loans, totaled $84,000 for the quarter ended December 31, 2024, compared to $419,000 for the quarter ended December 31, 2023. The average yield on loans for the quarter ended December 31, 2024 increased 22 basis points to 4.88%, as compared to 4.66% for the quarter ended December 31, 2023, as interest income was influenced by the interest rate increases that occurred in 2023 and loan growth. The average yield on securities for the quarter ended December 31, 2024 increased 41 basis points to 2.99%, as compared to 2.58% for the quarter ended December 31, 2023, as new securities purchased during 2024 were at higher interest rates. The average yield on other interest-earning assets for the quarter ended December 31, 2024 increased 36 basis points to 6.00%, as compared to 5.64% for the quarter ended December 31, 2023, due to an increase in the average balance of higher yielding Federal Home Loan Bank stock, as compared to average cash balances, which decreased in the 2024 period. Total interest expense was $67.2 million for the quarter ended December 31, 2024, an increase of $5.0 million, or 8.0%, from $62.2 million for the quarter ended December 31, 2023. The increase in interest expense was primarily attributable to a 37 basis point increase in the average cost of interest-bearing deposits, coupled with an increase in the average balance of interest-bearing deposits, partially offset by a 31 basis point decrease in the average cost of borrowings, coupled with a decrease in the average balance of borrowings. Interest expense on deposits increased $8.5 million or 19.6%, and interest expense on borrowings decreased $3.5 million, or 18.8%. The Company's net interest margin for the quarter ended December 31, 2024 increased 3 basis points to 1.88%, when compared to 1.85% for the quarter ended December 31, 2023. The weighted average yield on interest-earning assets increased 22 basis points to 4.61% for the quarter ended December 31, 2024 as compared to 4.39% for the quarter ended December 31, 2023. The average cost of interest-bearing liabilities increased 20 basis points to 3.38% for the quarter ended December 31, 2024 as compared to 3.18% for the quarter ended December 31, 2023. The net interest margin increased for the quarter ended December 31, 2024, as the increase in the average yield on interest-earning assets slightly outweighed the average cost of interest-bearing liabilities. The provision for credit losses for the quarter ended December 31, 2024 was $2.9 million, an increase of $1.7 million, from $1.2 million for the quarter ended December 31, 2023. The increase in the allowance for credit losses for loans was primarily due to net charge-offs totaling $1.4 million and an increase in loan performance qualitative factors. Non-interest income was $(23.7) million for the quarter ended December 31, 2024, a decrease of $35.0 million, or 310.8%, from $11.2 million for the quarter ended December 31, 2023. The decrease was primarily attributable to the loss on securities transactions of $34.6 million resulting from the balance sheet repositioning transaction and a decrease in bank-owned life insurance income of $2.4 million, attributable to death benefits in 2023, partially offset by a $1.7 million increase in the fair value of Federal Home Loan Mortgage Corporation and Federal National Mortgage Association preferred stock included in equity securities. Non-interest expense was $46.6 million for the quarter ended December 31, 2024, a decrease of $1.4 million, or 2.9%, from $48.0 million for the quarter ended December 31, 2023. The decrease was primarily attributable to a decrease in compensation and employee benefits expense of $1.9 million and a decrease in federal deposit insurance premiums of $3.2 million, partially offset by an increase in loss on the extinguishment of debt of $3.1 million. The decrease in compensation and employee benefits expense was the result of lower incentive compensation and a workforce reduction related to cost cutting strategies implemented during 2023 and 2024. The decrease in federal deposit insurance premiums was due to the 2023 quarter including a one-time Federal Deposit Insurance Corporation special assessment recorded in December 2023. During the quarter ended December 31, 2024, the Company prepaid $200.0 million in FHLB borrowings, inclusive of the $170.0 million as part of a balance sheet repositioning transaction which resulted in a $3.4 million loss on the extinguishment of debt. Income tax benefit was $5.5 million for the quarter ended December 31, 2024, a decrease of $6.4 million, as compared to income tax expense of $865,000 for the quarter ended December 31, 2023, mainly due to a decrease in pre-tax income. The Company's effective tax rate was 20.7% and 11.6% for the quarters ended December 31, 2024 and 2023, respectively. Results of Operations for the Years Ended December 31, 2024 and December 31, 2023 A net loss of $11.7 million was recorded for the year ended December 31, 2024, a decrease of $47.7 million, compared to net income of $36.1 million for the year ended December 31, 2023. The decrease in net income was primarily attributable to a $27.9 million decrease in net interest income, a $9.7 million increase in provision for credit losses and a $25.5 million decrease in non-interest income, partially offset by a $1.1 million decrease in non-interest expense, and a $14.2 million decrease in income tax expense. Net interest income was $178.0 million for the year ended December 31, 2024, a decrease of $27.9 million, or 13.5%, from $205.9 million for the year ended December 31, 2023. The decrease in net interest income was primarily attributable to an $84.3 million increase in interest expense on deposits and borrowings, partially offset by a $56.4 million increase in interest income. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields due to market interest rate increases in 2023. The increase in interest expense on deposits and borrowings was driven by these same rate increases coupled with intense competition for deposits in the market and the repricing of existing deposits into higher cost products along with higher balances. The increase in interest expense on borrowings was also impacted by the increase in interest rates for new borrowings along with an increase in the average balance of borrowings. Prepayment penalties, which are included in interest income on loans, totaled $960,000 for the year ended December 31, 2024, compared to $817,000 for the year ended December 31, 2023. The average yield on loans for the year ended December 31, 2024 increased 46 basis points to 4.90%, as compared to 4.44% for the year ended December 31, 2023, as interest income increased due to rising rates and loan growth. The average yield on securities for the year ended December 31, 2024 increased 40 basis points to 2.86%, as compared to 2.46% for the year ended December 31, 2023 as $124.6 million of higher yielding securities were purchased, and a number of adjustable rate securities tied to various indexes continued to reprice higher during the year. The average yield on other interest-earning assets for the year ended December 31, 2024 increased 73 basis points to 6.27%, as compared to 5.54% for the year ended December 31, 2023, due to the rise in interest rates, as noted above. Total interest expense was $273.4 million for the year ended December 31, 2024, an increase of $84.3 million, or 44.6%, from $189.1 million for the year ended December 31, 2023. The increase in interest expense was primarily attributable to a 109 basis point increase in the average cost of interest-bearing deposits and an increase in the average balance of deposits, coupled with an increase in interest on borrowings of $7.1 million due to an 11 basis point increase in the cost of total borrowings and an increase in the average balance of borrowings. The Company's net interest margin for the year ended December 31, 2024 decreased 34 basis points to 1.82%, when compared to 2.16% for the year ended December 31, 2023. The weighted average yield on interest-earning assets for the year ended December 31, 2024 increased 47 basis points to 4.61%, as compared to 4.14% for the year ended December 31, 2023. The average cost of interest-bearing liabilities increased 92 basis points to 3.44% for the year ended December 31, 2024 as compared to 2.52% for the year ended December 31, 2023. The increase in yields for the year ended December 31, 2024 was due to the impact of market rate increases between periods, with rates decreasing just prior to the fourth quarter of 2024. The net interest margin decreased for the year ended December 31, 2024, as the increase in the average cost of interest-bearing liabilities outweighed the increase in the average yield on interest-earning assets. The provision for credit losses for the year ended December 31, 2024 was $14.5 million, an increase of $9.7 million, from $4.8 million for the year ended December 31, 2023. The increase in provision for credit losses during the year was primarily due to net charge-offs totaling $9.6 million and an increase in loan performance qualitative factors. Non-interest income was $1.9 million for the year ended December 31, 2024, a decrease of $25.5 million, or 93.1%, from $27.4 million for the year ended December 31, 2023. The decrease was primarily attributable to an increase in the loss on securities transactions of $25.0 million, and a decrease in bank-owned life insurance income of $2.8 million, attributable to death benefits in 2023, partially offset by a $1.9 million increase in the fair value of Federal Home Loan Mortgage Corporation and Federal National Mortgage Association preferred stock included in equity securities. Non-interest expense was $181.3 million for the year ended December 31, 2024, a decrease of $1.1 million, or 0.6%, from $182.4 million for the year ended December 31, 2023. The decrease was primarily attributable to a decrease in compensation and employee benefits expense of $11.4 million, partially offset by an increase in professional fee of $4.3 million, an increase in merger-related expenses of $1.1 million and an increase in loss on extinguishment of debt of $3.1 million, resulting primarily from the repositioning transaction, and an increase in other non-interest expense of $2.0 million. The decrease in compensation and employee benefits expense was the result of lower incentive compensation and a workforce reduction related to cost cutting strategies implemented during 2023 and 2024. The increase in professional fees was primarily related to an increase in legal, regulatory and compliance-related costs while the increase in other non-interest expense related to swap transactions. During the quarter ended December 31, 2024, the Company prepaid $170.0 million of FHLB borrowings as part of the previously discussed balance sheet repositioning transaction which resulted in a $3.3 million loss on the extinguishment of debt. Income tax benefit was $4.3 million for the year ended December 31, 2024, a decrease of $14.2 million, as compared to income tax expense of $10.0 million for the year ended December 31, 2023, mainly due to a decrease in pre-tax income. The Company's effective tax rate was 26.8% and 21.6% for the years ended December 31, 2024 and 2023, respectively. Balance Sheet Summary Total assets decreased $170.1 million, or 1.6%, to $10.5 billion at December 31, 2024 as compared to $10.6 billion at December 31, 2023. The decrease in total assets was primarily attributable to a decrease in cash and cash equivalents of $134.0 million, a decrease in debt securities available for sale of $67.6 million, and a decrease in Federal Home Loan Bank stock of $20.6 million, partially offset by an increase in loans receivable, net, of $37.5 million and an increase in other assets of $15.6 million. Cash and cash equivalents decreased $134.0 million, or 31.7%, to $289.2 million at December 31, 2024 from $423.2 million at December 31, 2023. The decrease was primarily attributable to purchases of securities of $446.2 million, a decrease in borrowings of $448.1 million, and repurchases of common stock under our stock repurchase program of $5.9 million, partially offset by proceeds from the sale of securities of $321.2 million, principal repayments on securities of $185.6 million, and repayments on loans receivable, and an increase in total deposits of $249.6 million. Debt securities available for sale decreased $67.6 million, or 6.2%, to $1.0 billion at December 31, 2024 from $1.1 billion at December 31, 2023. The decrease was attributable to sales of securities with an amortized cost of $357.1 million which resulted in a realized loss of $35.9 million, and repayments on securities of $140.5 million, which was partially offset by purchases of securities of $404.7 million and a decrease in the gross unrealized loss on securities of $34.9 million. The Company sold predominantly fixed rate, low-yielding debt securities and used the proceeds to repay high costing borrowings and purchase higher-yielding debt securities to improve future net interest rate margin. Loans receivable, net, increased $37.5 million, or 0.5%, to $7.9 billion at December 31, 2024 from $7.8 billion at December 31, 2023. Multifamily loans, construction loans, and commercial business loans increased $51.5 million, $30.5 million, and $89.0 million, respectively, partially offset by decreases in one-to-four family real estate loans, commercial real estate loans and home equity loans and advances of $81.9 million, $37.2 million and $7.6 million, respectively. The allowance for credit losses for loans increased $4.9 million to $60.0 million at December 31, 2024 from $55.1 million at December 31, 2023. During the year ended December 31, 2024, the increase in the allowance for credit losses for loans was primarily due to net charge-offs of $9.6 million and an increase in loan performance qualitative factors. Federal Home Loan Bank stock decreased $20.6 million, or 25.5%, to $60.4 million at December 31, 2024 from $81.0 million at December 31, 2023. The decrease was due to the redemption of stock required upon repaying FHLB borrowings. Other assets increased $15.6 million, or 5.1%, to $324.0 million at December 31, 2024 from $308.4 million at December 31, 2023, primarily due to a $14.3 million increase in the Company's pension plan balance, as the return on plan assets outpaced the growth in the plan’s obligations. Total liabilities decreased $210.1 million, or 2.2%, to $9.4 billion at December 31, 2024 from $9.6 billion at December 31, 2023. The decrease was primarily attributable to a decrease in borrowings of $448.1 million, or 29.3%, partially offset by an increase in total deposits of $249.6 million, or 3.2%. The $448.1 million decrease in borrowings was primarily driven by a net decrease in long-term borrowings of $170.0 million, coupled with a decrease in short-term borrowings of $237.8 million. The decrease in long-term borrowings was mainly attributable to the prepayment of $170.0 million of long-term borrowings as part of the balance sheet repositioning transaction as described above. The increase in total deposits primarily consisted of increases in non-interest-bearing and interest-bearing demand deposits and certificates of deposit of $669,000, $54.8 million, and $255.8 million, respectively, partially offset by decreases in money market and savings and club accounts of $13.8 million and $47.8 million, respectively. Total stockholders’ equity increased $40.0 million, or 3.8%, to $1.1 billion at December 31, 2024 from $1.0 billion at December 31, 2023. The increase in total stockholders’ equity was primarily attributable to the recognition of $8.0 million in stock based compensation expense and an increase of $48.2 million in other comprehensive income, which includes changes in unrealized losses on debt securities available for sale and unrealized gains on swap contracts, net of taxes. These increases were partially offset by a net loss of $11.7 million, and the repurchase of 365,116 shares of common stock at a cost of approximately $5.9 million, or $16.14 per share, under our stock repurchase program. Repurchases have been paused in order to retain capital. Asset Quality The Company's non-performing loans at December 31, 2024 totaled $21.7 million, or 0.28% of total gross loans, as compared to $12.6 million, or 0.16% of total gross loans, at December 31, 2023. The $9.1 million increase in non-performing loans was primarily attributable to an increase in non-performing commercial business loans of $3.3 million and an increase in non-performing one-to-four family real estate loans of $5.6 million. The increase in non-performing commercial business loans primarily consists of two loans totaling $6.4 million at December 31, 2024, partially offset by the charge-off of a $3.7 million loan to a technology company during 2024. The increase in non-performing one-to-four family real estate loans was due to an increase in the number of loans from 17 non-performing loans at December 31, 2023 to 32 loans at December 31, 2024. Non-performing assets as a percentage of total assets totaled 0.22% at December 31, 2024 as compared to 0.12% at December 31, 2023. For the quarter ended December 31, 2024, net charge-offs totaled $1.4 million, as compared to $173,000 in net charge-offs recorded for the quarter ended December 31, 2023. For the year ended December 31, 2024, net charge-offs totaled $9.6 million, as compared to $2.5 million in net charge-offs recorded for the year ended December 31, 2023. Net charge-offs for the year ended December 31, 2024 included charge-offs related to 17 commercial business loans totaling $9.2 million. Recoveries on previously charged-off loans for the quarter ended December 31, 2024, and the year ended December 31, 2024, totaled approximately $88,000 and $1.4 million, respectively. The Company's allowance for credit losses on loans was $60.0 million, or 0.76% of total gross loans, at December 31, 2024, compared to $55.1 million, or 0.70% of total gross loans, at December 31, 2023. The increase in the allowance for credit losses for loans was primarily due to net charge-offs of $9.6 million and an increase in loan performance qualitative factors. Additional Liquidity, Loan, and Deposit Information The Company services a diverse retail and commercial deposit base through its 69 branches. With over 215,000 accounts, the average deposit account balance was approximately $38,000 at December 31, 2024. Deposit balances are summarized as follows: At December 31, 2024 At September 30, 2024 Balance Weighted Average Rate Balance Weighted Average Rate (Dollars in thousands) Non-interest-bearing demand $1,438,030 —% $1,406,152 —%Interest-bearing demand 2,021,312 2.19 1,980,298 2.41 Money market accounts 1,241,691 2.82 1,239,204 2.92 Savings and club deposits 652,501 0.75 649,858 0.79 Certificates of deposit 2,742,615 4.24 2,682,547 4.45 Total deposits $8,096,149 2.47% $7,958,059 2.62% The Company continues to maintain strong liquidity and capital positions. The Company had no outstanding borrowings from the Federal Reserve Discount Window at December 31, 2024. As of December 31, 2024, the Company had immediate access to approximately $2.7 billion of funding, with additional unpledged loan collateral available to pledge is approximately $2.1 billion. At December 31, 2024, the Company's non-performing commercial real estate loans totaled $2.9 million, or 0.04%, of the total loans receivable loan portfolio balance. The following table presents multifamily real estate, owner occupied commercial real estate, and the components of investor owned commercial real estate loans included in the real estate loan portfolio. At December 31, 2024 (Dollars in thousands) Balance % of Gross Loans Weighted Average Loan to Value Ratio Weighted Average Debt Service CoverageMultifamily Real Estate $1,460,641 18.4% 58.0% 1.59x Owner Occupied Commercial Real Estate $688,341 8.7% 53.3% 2.22x Investor Owned Commercial Real Estate: Retail / Shopping centers $506,544 6.4% 51.6% 1.50xMixed Use 214,148 2.7 57.3 1.58 Industrial / Warehouse 383,585 4.8 54.7 1.69 Non-Medical Office 193,569 2.4 50.8 1.65 Medical Office 120,381 1.5 58.5 1.46 Single Purpose 96,907 1.2 52.3 3.13 Other 136,408 1.7 47.8 1.76 Total $1,651,542 20.9% 53.2% 1.69 Total Multifamily and Commercial Real Estate Loans $3,800,524 48.0% 55.1% 1.75x At December 31, 2024, the Company had less than $1.0 million in loan exposure to office or rent stabilized multifamily loans in New York City. Annual Meeting of Stockholders On January 28, 2025, the Company also announced that its annual meeting of stockholders will be held on June 5, 2025. About Columbia Financial, Inc. The consolidated financial results include the accounts of Columbia Financial, Inc., its wholly-owned subsidiary Columbia Bank (the "Bank") and the Bank's wholly-owned subsidiaries. Columbia Financial, Inc. is a Delaware corporation organized as Columbia Bank's mid-tier stock holding company. Columbia Financial, Inc. is a majority-owned subsidiary of Columbia Bank, MHC. Columbia Bank is a federally chartered savings bank headquartered in Fair Lawn, New Jersey that operates 69 full-service banking offices and offers traditional financial services to consumers and businesses in its market area. Forward-Looking Statements Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “projects,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates, higher inflation and their impact on national and local economic conditions; changes in monetary and fiscal policies of the U.S. Treasury, the Board of Governors of the Federal Reserve System and other governmental entities; the impact of legal, judicial and regulatory proceedings or investigations, competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect a borrowers’ ability to service and repay the Company’s loans; the effect of acts of terrorism, war or pandemics,, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; changes in the value of securities in the Company’s portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and securities; legislative changes and changes in government regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s consolidated financial statements will become impaired; cyber-attacks, computer viruses and other technological risks that may breach the security of our systems and allow unauthorized access to confidential information; the inability of third party service providers to perform; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits and effectively manage liquidity; risks related to the implementation of acquisitions, dispositions, and restructurings; the successful implementation of our December 2024 balance sheet repositioning transaction; the risk that the Company may not be successful in the implementation of its business strategy, or its integration of acquired financial institutions and businesses, and changes in assumptions used in making such forward-looking statements which are subject to numerous risks and uncertainties, including but not limited to, those set forth in Item 1A of the Company's Annual Report on Form 10-K and those set forth in the Company's Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, all as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, the Company's actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law. Non-GAAP Financial Measures Reported amounts are presented in accordance with U.S. generally accepted accounting principles ("GAAP"). This press release also contains certain supplemental non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. Specifically, the Company provides measures based on what it believes are its operating earnings on a consistent basis and excludes material non-routine operating items which affect the GAAP reporting of results of operations. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s core financial results for the periods presented. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. The Company also provides measurements and ratios based on tangible stockholders' equity. These measures are commonly utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors. A reconciliation of GAAP to non-GAAP financial measures are included at the end of this press release. See "Reconciliation of GAAP to Non-GAAP Financial Measures". COLUMBIA FINANCIAL, INC. AND SUBSIDIARIESConsolidated Statements of Financial Condition(In thousands) December 31, 2024 2023 Assets (Unaudited) Cash and due from banks $289,113 $423,140 Short-term investments 110 109 Total cash and cash equivalents 289,223 423,249 Debt securities available for sale, at fair value 1,025,946 1,093,557 Debt securities held to maturity, at amortized cost (fair value of $350,153, and $357,177 at December 31, 2024 and 2023, respectively) 392,840 401,154 Equity securities, at fair value 6,673 4,079 Federal Home Loan Bank stock 60,387 81,022 Loans receivable 7,916,928 7,874,537 Less: allowance for credit losses 59,958 55,096 Loans receivable, net 7,856,970 7,819,441 Accrued interest receivable 40,383 39,345 Office properties and equipment, net 81,772 83,577 Bank-owned life insurance 274,908 268,362 Goodwill and intangible assets 121,008 123,350 Other real estate owned 1,334 — Other assets 324,049 308,432 Total assets $10,475,493 $10,645,568 Liabilities and Stockholders' Equity Liabilities: Deposits $8,096,149 $7,846,556 Borrowings 1,080,600 1,528,695 Advance payments by borrowers for taxes and insurance 45,453 43,509 Accrued expenses and other liabilities 172,915 186,473 Total liabilities 9,395,117 9,605,233 Stockholders' equity: Total stockholders' equity 1,080,376 1,040,335 Total liabilities and stockholders' equity $10,475,493 $10,645,568 COLUMBIA FINANCIAL, INC. AND SUBSIDIARIESConsolidated Statements of Income(In thousands, except per share data) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Interest income: (Unaudited) (Unaudited) Loans receivable $96,202 $91,744 $382,266 $343,770 Debt securities available for sale and equity securities 9,793 7,077 36,411 28,120 Debt securities held to maturity 2,479 2,370 9,966 9,708 Federal funds and interest-earning deposits 3,309 4,828 15,181 8,188 Federal Home Loan Bank stock dividends 1,843 1,531 7,602 5,192 Total interest income 113,626 107,550 451,426 394,978 Interest expense: Deposits 51,943 43,429 202,383 125,162 Borrowings 15,256 18,782 71,061 63,940 Total interest expense 67,199 62,211 273,444 189,102 Net interest income 46,427 45,339 177,982 205,876 Provision for credit losses 2,876 1,155 14,451 4,787 Net interest income after provision for credit losses 43,551 44,184 163,531 201,089 Non-interest income: Demand deposit account fees 1,809 1,330 6,507 5,145 Bank-owned life insurance 2,066 4,456 7,319 10,126 Title insurance fees 570 560 2,505 2,400 Loan fees and service charges 1,193 1,144 4,483 4,510 Loss on securities transactions (34,595) — (35,851) (10,847)Change in fair value of equity securities 2,169 446 2,594 695 Gain on sale of loans 81 154 906 1,214 Other non-interest income 2,991 3,159 13,431 14,136 Total non-interest income (23,716) 11,249 1,894 27,379 Non-interest expense: Compensation and employee benefits 26,579 28,463 109,489 120,846 Occupancy 5,861 5,590 23,482 22,927 Federal deposit insurance premiums 1,829 5,015 7,581 8,639 Advertising 457 498 2,510 2,805 Professional fees 2,567 3,083 14,164 9,824 Data processing and software expenses 3,572 4,154 15,578 15,039 Merger-related expenses 928 326 1,665 606 Loss on extinguishment of debt 3,447 300 3,447 300 Other non-interest expense 1,356 570 3,419 1,431 Total non-interest expense 46,596 47,999 181,335 182,417 (Loss) income before income tax (benefit) expense (26,761) 7,434 (15,910) 46,051 Income tax (benefit) expense (5,538) 865 (4,257) 9,965 Net (loss) income $(21,223) $6,569 $(11,653) $36,086 (Loss) earnings per share-basic $(0.21) $0.06 $(0.11) $0.35 (Loss) earnings per share-diluted $(0.21) $0.06 $(0.11) $0.35 Weighted average shares outstanding-basic 101,686,108 101,656,890 101,676,758 102,656,388 Weighted average shares outstanding-diluted 101,945,750 101,817,194 101,839,507 102,894,969 COLUMBIA FINANCIAL, INC. AND SUBSIDIARIESAverage Balances/Yields For the Three Months Ended December 31, 2024 2023 Average Balance Interest and Dividends Yield / Cost Average Balance Interest and Dividends Yield / Cost (Dollars in thousands)Interest-earnings assets: Loans $7,839,416 $96,202 4.88% $7,816,272 $91,744 4.66%Securities 1,635,028 12,272 2.99% 1,453,863 9,447 2.58%Other interest-earning assets 341,393 5,152 6.00% 447,369 6,359 5.64%Total interest-earning assets 9,815,837 113,626 4.61% 9,717,504 107,550 4.39%Non-interest-earning assets 874,522 854,857 Total assets $10,690,359 $10,572,361 Interest-bearing liabilities: Interest-bearing demand $2,027,003 $13,686 2.69% $2,000,406 $12,308 2.44%Money market accounts 1,235,421 7,630 2.46% 1,119,290 8,962 3.18%Savings and club deposits 649,686 1,209 0.74% 714,664 846 0.47%Certificates of deposit 2,696,740 29,418 4.34% 2,416,773 21,313 3.50%Total interest-bearing deposits 6,608,850 51,943 3.13% 6,251,133 43,429 2.76%FHLB advances 1,298,686 15,102 4.63% 1,494,794 18,592 4.93%Notes payable — — —% 916 23 9.96%Junior subordinated debentures 7,036 154 8.71% 7,013 167 9.45%Total borrowings 1,305,722 15,256 4.65% 1,502,723 18,782 4.96%Total interest-bearing liabilities 7,914,572 $67,199 3.38% 7,753,856 $62,211 3.18% Non-interest-bearing liabilities: Non-interest-bearing deposits 1,460,125 1,441,005 Other non-interest-bearing liabilities 241,582 247,545 Total liabilities 9,616,279 9,442,406 Total stockholders' equity 1,074,080 1,129,955 Total liabilities and stockholders' equity $10,690,359 $10,572,361 Net interest income $46,427 $45,339 Interest rate spread 1.23% 1.21%Net interest-earning assets $1,901,265 $1,963,648 Net interest margin 1.88% 1.85%Ratio of interest-earning assets to interest-bearing liabilities 124.02% 125.32% COLUMBIA FINANCIAL, INC. AND SUBSIDIARIESAverage Balances/Yields For the Years Ended December 31, 2024 2023 Average Balance Interest and Dividends Yield / Cost Average Balance Interest and Dividends Yield / Cost (Dollars in thousands)Interest-earnings assets: Loans $7,801,939 $382,266 4.90% $7,748,096 $343,770 4.44%Securities 1,622,519 46,377 2.86% 1,540,726 37,828 2.46%Other interest-earning assets 363,370 22,783 6.27% 241,520 13,380 5.54%Total interest-earning assets 9,787,828 $451,426 4.61% 9,530,342 $394,978 4.14%Non-interest-earning assets 865,684 840,215 Total assets $10,653,512 $10,370,557 Interest-bearing liabilities: Interest-bearing demand $1,986,215 $55,360 2.79% $2,183,333 $37,774 1.73%Money market accounts 1,235,495 32,977 2.67% 951,174 24,296 2.55%Savings and club deposits 667,836 5,130 0.77% 793,303 2,231 0.28%Certificates of deposit 2,587,360 108,916 4.21% 2,229,042 60,861 2.73%Total interest-bearing deposits 6,476,906 202,383 3.12% 6,156,852 125,162 2.03%FHLB advances 1,454,674 70,418 4.84% 1,315,401 62,398 4.74%Notes payable — — —% 22,780 918 4.03%Junior subordinated debentures 7,023 640 9.11% 7,054 624 8.85%Other borrowings 55 3 5.45% — — —%Total borrowings 1,461,752 71,061 4.86% 1,345,235 63,940 4.75%Total interest-bearing liabilities 7,938,658 $273,444 3.44% 7,502,087 $189,102 2.52% Non-interest-bearing liabilities: Non-interest-bearing deposits 1,420,104 1,539,354 Other non-interest-bearing liabilities 242,290 231,018 Total liabilities 9,601,052 9,272,459 Total stockholders' equity 1,052,460 1,098,098 Total liabilities and stockholders' equity $10,653,512 $10,370,557 Net interest income $177,982 $205,876 Interest rate spread 1.17% 1.62%Net interest-earning assets $1,849,170 $2,028,255 Net interest margin 1.82% 2.16%Ratio of interest-earning assets to interest-bearing liabilities 123.29% 127.04% COLUMBIA FINANCIAL, INC. AND SUBSIDIARIESComponents of Net Interest Rate Spread and Margin Average Yields/Costs by Quarter December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023Yield on interest-earning assets: Loans 4.88% 5.00% 4.93% 4.79% 4.66%Securities 2.99 2.90 2.89 2.65 2.58 Other interest-earning assets 6.00 6.72 6.30 6.06 5.64 Total interest-earning assets 4.61% 4.70% 4.64% 4.50% 4.39% Cost of interest-bearing liabilities: Total interest-bearing deposits 3.13% 3.21% 3.14% 3.02% 2.76%Total borrowings 4.65 4.87 4.92 4.98 4.96 Total interest-earning liabilities 3.38% 3.52% 3.49% 3.38% 3.18% Interest rate spread 1.23% 1.18% 1.15% 1.12% 1.21%Net interest margin 1.88% 1.84% 1.81% 1.75% 1.85% Ratio of interest-earning assets to interest-bearing liabilities 124.02% 123.06% 123.03% 123.06% 125.32% COLUMBIA FINANCIAL, INC. AND SUBSIDIARIESSelected Financial Highlights December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 SELECTED FINANCIAL RATIOS(1): Return on average assets (0.79)% 0.23% 0.17% (0.04)% 0.25%Core return on average assets 0.42% 0.23% 0.20% 0.02% 0.38%Return on average equity (7.86)% 2.32% 1.77% (0.45)% 2.31%Core return on average equity 4.09% 2.29% 2.06% 0.18% 3.56%Core return on average tangible equity 4.74% 2.58% 2.34% 0.20% 3.99%Interest rate spread 1.23% 1.18% 1.15% 1.12% 1.21%Net interest margin 1.88% 1.84% 1.81% 1.75% 1.85%Non-interest income to average assets (0.88)% 0.33% 0.35% 0.28% 0.42%Non-interest expense to average assets 1.73% 1.60% 1.74% 1.74% 1.80%Efficiency ratio 205.17% 78.95% 86.83% 91.96% 84.82%Core efficiency ratio 73.68% 79.14% 85.34% 88.39% 76.93%Average interest-earning assets to average interest-bearing liabilities 124.02% 123.06% 123.03% 123.06% 125.32%Net charge-offs to average outstanding loans 0.07% 0.14% 0.03% 0.26% 0.01% (1) Ratios are annualized when appropriate. ASSET QUALITY: December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 (Dollars in thousands) Non-accrual loans $21,701 $28,014 $25,281 $22,935 $12,618 90+ and still accruing — — — — — Non-performing loans 21,701 28,014 25,281 22,935 12,618 Real estate owned 1,334 1,974 1,974 — — Total non-performing assets $23,035 $29,988 $27,255 $22,935 $12,618 Non-performing loans to total gross loans 0.28% 0.36% 0.33% 0.30% 0.16%Non-performing assets to total assets 0.22% 0.28% 0.25% 0.22% 0.12%Allowance for credit losses on loans ("ACL") $59,958 $58,495 $57,062 $55,401 $55,096 ACL to total non-performing loans 276.29% 208.81% 225.71% 241.56% 436.65%ACL to gross loans 0.76% 0.75% 0.73% 0.71% 0.70% LOAN DATA: December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 (In thousands) Real estate loans: One-to-four family $2,710,937 $2,737,190 $2,764,177 $2,778,932 $2,792,833 Multifamily 1,460,641 1,399,000 1,409,316 1,429,369 1,409,187 Commercial real estate 2,339,883 2,312,759 2,316,252 2,318,178 2,377,077 Construction 473,573 510,439 462,880 437,566 443,094 Commercial business loans 622,000 586,447 554,768 538,260 533,041 Consumer loans: Home equity loans and advances 259,009 261,041 260,427 260,786 266,632 Other consumer loans 3,404 2,877 2,689 2,601 2,801 Total gross loans 7,869,447 7,809,753 7,770,509 7,765,692 7,824,665 Purchased credit deteriorated loans 11,686 11,795 12,150 14,945 15,089 Net deferred loan costs, fees and purchased premiums and discounts 35,795 35,642 36,352 34,992 34,783 Allowance for credit losses (59,958) (58,495) (57,062) (55,401) (55,096)Loans receivable, net $7,856,970 $7,798,695 $7,761,949 $7,760,228 $7,819,441 CAPITAL RATIOS: December 31, 2024(1) 2023Company: Total capital (to risk-weighted assets) 14.20% 14.08%Tier 1 capital (to risk-weighted assets) 13.40% 13.32%Common equity tier 1 capital (to risk-weighted assets) 13.31% 13.23%Tier 1 capital (to adjusted total assets) 10.02% 10.04% Columbia Bank: Total capital (to risk-weighted assets) 14.41% 14.02%Tier 1 capital (to risk-weighted assets) 13.56% 13.22%Common equity tier 1 capital (to risk-weighted assets) 13.56% 13.22%Tier 1 capital (to adjusted total assets) 9.64% 9.48% (1) Estimated ratios at December 31, 2024. Reconciliation of GAAP to Non-GAAP Financial Measures Book and Tangible Book Value per Share December 31, 2024 2023 (Dollars in thousands)Total stockholders' equity $1,080,376 $1,040,335 Less: goodwill (110,715) (110,715)Less: core deposit intangible (8,964) (11,155)Total tangible stockholders' equity $960,697 $918,465 Shares outstanding 104,759,185 104,918,905 Book value per share $10.31 $9.92 Tangible book value per share $9.17 $8.75 Reconciliation of Core Net Income Three Months Ended December 31, Years Ended December 31, 2024 2023 2024 2023 (In thousands)Net (loss) income $(21,223) $6,569 $(11,653) $36,086 Add: loss on securities transactions, net of tax 28,952 — 30,082 9,249 Add: FDIC special assessment, net of tax — 3,009 385 3,009 Add: severance expense from reduction in workforce, net of tax — — 67 1,390 Add: merger-related expenses, net of tax 777 288 1,468 529 Add: loss on extinguishment of debt, net of tax 2,885 265 2,885 265 Add: litigation expenses, net of tax — — — 262 Core net income $11,391 $10,131 $23,234 $50,790 Return on Average Assets Three Months Ended December 31, Years Ended December 31, 2024 2023 2024 2023 (Dollars in thousands)Net (loss) income $(21,223) $6,569 $(11,653) $36,086 Average assets $10,690,359 $10,572,361 $10,653,512 $10,370,557 Return on average assets (0.79)% 0.25% (0.11)% 0.35% Core net income $11,391 $10,131 $23,234 $50,790 Core return on average assets 0.42% 0.38% 0.22% 0.49% Reconciliation of GAAP to Non-GAAP Financial Measures (continued) Return on Average Equity Three Months Ended December 31, Years Ended December 31, 2024 2023 2024 2023 (Dollars in thousands)Total average stockholders' equity $1,074,080 $1,129,955 $1,052,460 $1,098,098 Add: loss on securities transactions, net of tax 28,952 — 30,082 9,249 Add: FDIC special assessment, net of tax — 3,009 385 3,009 Add: severance expense from reduction in workforce, net of tax — — 67 1,390 Add: merger-related expenses, net of tax 777 288 1,468 529 Add: loss on extinguishment of debt, net of tax 2,885 265 2,885 265 Add: litigation expenses, net of tax — — — 262 Core average stockholders' equity $1,106,694 $1,133,517 $1,087,347 $1,112,802 Return on average equity (7.86)% 2.31% (1.11)% 3.29% Core return on core average equity 4.09% 3.56% 2.14% 4.56% Return on Average Tangible Equity Three Months Ended December 31, Years Ended December 31, 2024 2023 2024 2023 (Dollars in thousands)Total average stockholders' equity $1,074,080 $1,129,955 $1,052,460 $1,098,098 Less: average goodwill (110,715) (110,715) (110,715) (110,715)Less: average core deposit intangible (9,311) (11,524) (10,119) (12,398)Total average tangible stockholders' equity $954,054 $1,007,716 $931,626 $974,985 Core return on average tangible equity 4.74% 3.99% 2.49% 5.21% Reconciliation of GAAP to Non-GAAP Financial Measures (continued) Efficiency Ratios Three Months Ended December 31, Years Ended December 31, 2024 2023 2024 2023 (Dollars in thousands)Net interest income $46,427 $45,339 $177,982 $205,876 Non-interest income (23,716) 11,249 1,894 27,379 Total income $22,711 $56,588 $179,876 $233,255 Non-interest expense $46,596 $47,999 $181,335 $182,417 Efficiency ratio 205.17% 84.82% 100.81% 78.20% Non-interest income $(23,716) $11,249 $1,894 $27,379 Add: loss on securities transactions 34,595 — 35,851 10,847 Core non-interest income $10,879 $11,249 $37,745 $38,226 Non-interest expense $46,596 $47,999 $181,335 $182,417 Less: FDIC special assessment — (3,840) (439) (3,840)Less: severance expense from reduction in workforce — — (74) (1,605)Less: merger-related expenses (928) (326) (1,665) (606)Less: loss on extinguishment of debt (3,447) (300) (3,447) (300)Less: litigation expenses — — — (317)Core non-interest expense $42,221 $43,533 $175,710 $175,749 Core efficiency ratio 73.68% 76.93% 81.45% 72.00% Columbia Financial, Inc. Investor Relations Department (833) 550-0717

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

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