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Columbia Financial, Inc. Announces Second Quarter Earnings

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Columbia Financial, Inc. Announces Second Quarter Earnings

PR Newswire

FAIR LAWN, N.J., July 27, 2018 /PRNewswire/ -- Columbia Financial, Inc. (the "Company") (NASDAQ:CLBK) reported a net loss of  $14.7 million for the three months ended June 30, 2018, compared to net income of $9.3 million for the three months ended June 30, 2017.  The quarterly earnings reflects $34.8 million of expense related to the contribution of 3% of the Company's outstanding common stock to the Columbia Bank Foundation as we previously disclosed in the prospectus relating to our minority stock offering.  Excluding the charitable contribution, core net income would have been $12.7 million for the three months ended June 30, 2018, an increase of 35.8% as compared to the same period ended June 30, 2017.

Mr. Thomas J. Kemly, President and Chief Executive Officer commented: "The contribution of stock to our charitable foundation will provide the necessary future funding for charitable causes and community development activities.  This contribution demonstrates our unwavering commitment to supporting the local communities that we serve".

For the six months ended June 30, 2018, the Company reported a net loss of $3.0 million, compared to net income of $19.6 million for the six months ended June 30, 2017.  The decrease in earnings for the six month period is driven by the increase in charitable contribution expense as discussed above.  Excluding the charitable contribution, core net income would have been $24.5 million for the six months ended June 30, 2018, an increase of 23.4% as compared to the same period ending June 30, 2017.

Mr. Kemly also commented: "With the recent minority stock offering now behind us, we are intently focused on executing on our growth strategy and deploying the newly acquired capital in a measured and controlled fashion.  We experienced solid growth in our balance sheet and realized strong core earnings for the quarter while maintaining the desired asset quality and achieving other targeted performance measures."

Results of Operations for the Three Months Ended June 30, 2018 and June 30, 2017

A net loss of $14.7 million was recorded for the three months ended June 30, 2018, compared to net income of $9.3 million for the three months ended June 30, 2017.  The decrease of $24.0 million was primarily attributable to the above-noted $34.8 million expense related to the contribution of shares of the Company's common stock to our charitable foundation coupled with a $2.0 million increase in the provision for loan losses.  These expenses were partially offset by a $5.4 million increase in net interest income and an $8.9 million decrease in income tax expense.

The Company's net interest income was $41.0 million for the quarter ended June 30, 2018, an increase of $5.4 million, or 15.1% from $35.6 million for the quarter ended June 30, 2017.  The increase in net interest income was attributable to an $8.2 million increase in interest and dividend income which was partially offset by a $2.8 million increase in interest expense.

The increase in interest and dividend income for the three month period was largely due to a $308.6 million increase in average loans, a $500.2 million increase in average investment securities and a $104.7 million increase in other interest earning assets. The increase in other interest earning assets was largely due to the increase in excess cash reserves for the majority of the month of April related to the subscriptions for the minority stock offering.

The yield on total average earning assets decreased two basis points due to the growth in lower yielding excess cash reserves as a percentage of the earning asset mix.  The yield on average loans increased seven basis points while the yield on investment securities increased 11 basis points for the quarter ended June 30, 2018 as compared with the quarter ended June 30, 2017.

The $2.8 million increase in interest expense on deposits was largely the result of a $536.0 million increase in the average balance of interest bearing deposits combined with a 19 basis point increase in the cost of deposits. Interest expense related to junior subordinated debt increased as the Company has completed all steps required to call the debt during the third quarter of 2018 and therefore accelerated the amortization of deferred issuance costs.

The Company's net interest margin for the quarter ended June 30, 2018 decreased seven basis points to 2.76% when compared to 2.83% for the quarter ended June 30, 2017.  The weighted average yield on interest-earning assets decreased two basis points to 3.70% for the quarter ended June 30, 2018 compared with 3.72% for the quarter ended June 30, 2017.  The cost of average total interest bearing liabilities increased 11 basis points to 1.20% for the quarter ended June 30, 2018 as compared to 1.09% for the quarter ended June 30, 2017.

The provision for loan losses was $2.4 million for the quarter ended June 30, 2018, an increase of approximately $2.0 million from $375 thousand for the quarter ended June 30, 2017.  The increase was primarily driven by loan growth during the period and changes in certain credit metrics.

Non-interest income was $5.4 million for the quarter ended June 30, 2018, an increase of $642 thousand or 13.5% from $4.8 million for the quarter ended June 30, 2017.  Income from bank-owned life insurance increased $434 thousand as a result of  one-time gains associated with life insurance proceeds during the three months ended  June 30, 2018.  Title insurance fees were higher by $306 thousand as a result of increased activity during the quarter.

Non-interest expense was $61.7 million for the quarter ended June 30, 2018, an increase of $36.9 million, or 148.6%, from $24.8 million for the quarter ended June 30, 2017.  The increase was driven primarily by the previously noted one-time $34.8 million contribution of common stock of Columbia Financial, Inc. to the Columbia Bank Foundation.  In addition, compensation and employee benefit expenses increased $1.4 million  as a result of the newly created Employee Stock Ownership Plan, several strategic hires and annual merit increases and incentives for staff.

Income tax benefit was $3.0 million for the quarter ended June 30, 2018 as compared to $5.9 million of tax expense for the quarter ended June 30, 2017.

Results of Operations for the Six Months Ended June 30, 2018 and June 30, 2017

For the six months ended June 30, 2018, earnings decreased $22.5 million to a loss of $3.0 million, compared to income of $19.6 million for the six months ended June 30, 2017.  The decrease was primarily attributable to the previously noted one-time contribution of the Company's stock to our charitable foundation and related tax benefit associated with the contribution and a $3.6 million increase in the provision for loan losses, partially offset by a $9.7 million increase in net interest income.

Net interest income was $80.1 million for the six month period ended June 30, 2018, an increase of $9.7 million, or 13.7% from $70.4 million for the six months ended June 30, 2017.  The increase in net interest income was attributable to a $14.5 million increase in interest and dividend income which was partially offset by a $4.9 million increase in interest expense.

The increase in interest and dividend income for the six month period was primarily the result of a $293.8 million increase in average loans, a $418.7 million increase in average investment securities and a $107.5 million increase in other interest earning assets. The increase in other interest earning assets was largely due to the increase in excess cash reserves related to the subscriptions for the minority stock offering.

The yield on total average earning assets decreased two basis points due to the growth in lower yielding excess cash reserves as a percentage of the earning asset mix.  The yield on average loans increased six basis points while the yield on investment securities increased 13 basis points for the six months ended June 30, 2018 as compared with the same period ended June 30, 2017.

For the six months ended June 30, 2018, interest expense on deposits was $17.3 million, an increase of $4.8 million or 38.9% from $12.5 million for the six months ended June 30, 2017, driven by a $530.7 million increase in the average balance of total interest bearing deposits coupled with a 14 basis point increase in the cost of deposits.  Total borrowings increased by $62.0 million in average balances while the average cost of borrowings declined by 19 basis points.  The reduced cost of average borrowings resulted from the maturity of higher rate borrowings.  Interest expense related to the junior subordinated debt increased as the

Company completed all steps required to call the debt during the third quarter of 2018 and therefore accelerated the amortization of deferred issuance costs.

The Company's net interest margin for the six month period ended June 30, 2018 decreased seven basis points to 2.78%  compared with 2.85% for the six months ended June 30, 2017.  The weighted average yield on interest-earning assets decreased two basis points to 3.71% for the six months ended June 30, 2018 compared with 3.73% for the six months ended June 30, 2017.  The cost of average total interest bearing liabilities increased eight basis points to 1.15% for the six months ended June 30, 2018 compared with 1.07% for the six months ended June 30, 2017.

For the six months ended June 30, 2018 the provision for loan losses expense was $4.4 million, an increase of $3.6 million from $751 thousand for the six months ended June 30, 2017.  The increase was primarily driven by loan growth during the period and changes in certain credit metrics.

Non-interest income was $9.9 million for the six month period ended June 30, 2018, a decrease of $615 thousand, or 5.8% from $10.5 million for the six months ended June 30, 2017.  Income from bank-owned life insurance decreased approximately $201 thousand as a result of higher gains associated with life insurance proceeds recognized during the six months ended June 30, 2017.

For the six months ended June 30, 2018 non-interest expense was $87.7 million, an increase of $38.0 million, or 76.5% from $49.7 million for the six months ended June 30, 2017.  The increase was driven primarily by the above noted $34.8 million contribution of common stock of Columbia Financial, Inc. to the Columbia Bank Foundation.  In addition, compensation and employee benefit expenses increased $2.0 million as a result of newly created Employee Stock Ownership Plan, several strategic hires and annual merit increases and incentives for staff.

Income tax expense was $844 thousand for the six months ended June 30, 2018 as compared to $10.9 million of tax expense for the same period ended June 30, 2017.

Balance Sheet Summary

Total assets increased approximately $510.9 million, or 8.9%, to $6.3 billion at June 30, 2018 from $5.8 billion at December 31, 2017.  The increase in total assets was primarily attributed to the increases in loans receivable, net of $248.6 million and available-for-sale securities of $221.5 million.  Growth was funded primarily by $492.4 million of net proceeds from the minority stock offering.

Securities available-for-sale increased $221.5 million to $932.1 million at June 30, 2018 from $710.6 million at December 31, 2017.  Securities held-to-maturity increased $15.2 million to $254.8 million at June 30, 2018 from $239.6 million at December 31, 2017.

Loans receivable, net increased $248.6 million to $4.6 billion at June 30, 2018 from $4.4 billion at December 31, 2017.  One-to-four family, multifamily and commercial, construction loans and C&I lending contributed $146.9 million, $100.6 million, $21.2 million and $14.1 million to the growth, respectively.  Home equity loans and advances declined $33.6 million between June 30, 2018 and December 31, 2017.

Total liabilities increased $41.7 million, or 0.8%, to $5.3 billion at June 30, 2018 from $5.3 billion at December 31, 2017.  The increase is primarily attributable to an increase in total deposits of $31.5 million mainly driven by higher certificate of deposit balances. Overall borrowings remained relatively flat over the six month period.

Total stockholders' equity increased $469.2 million or 99.4%, to $941.3 million at June 30, 2018 from $472.1 million at December 31, 2017.  The net increase is primarily driven by the recording of common stock and additional-paid-in capital related to the completion of the minority stock offering.  Net proceeds from the offering totaled $492.4 million.

Asset Quality

The Company's total non-performing loans at June 30, 2018 totaled $3.8 million, or 0.08% of total loans, compared to $6.5 million or 0.15% of total loans at December 31, 2017.  The Company held $660 thousand in foreclosed assets at June 30, 2018 compared to $959 thousand at December 31, 2017.  Non-performing assets as a percentage of total assets totaled 0.07% at June 30, 2018 compared to 0.13% at December 31, 2017.

The Company's allowance for loan losses was $62.5 million, or 1.33% of total loans at June 30, 2018, compared to $58.2 million or 1.31% of total loans at December 31, 2017.

About Columbia Financial, Inc.

The unaudited 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.  The Bank offers traditional financial services to consumers and businesses in our market areas.  We currently operate 49 full-services banking offices.

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," "project," "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; 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 borrowers' ability to service and repay the Company's loans; changes in the value of securities in the Company's investment 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 investments; legislative changes and changes in government regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company's financial statements will become impaired; demand for loans in the Company's market area; the Company's ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy or its deployment of the proceeds raised in its minority public offering; and changes in assumptions used in making such forward-looking statements and Quarterly Reports on Form 10-Q 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, Columbia Financial, Inc.'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.


 

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Balance Sheets



(Unaudited)


(Unaudited)


June 30,


December 31,


2018


2017


(In thousands)

Assets




Cash and cash equivalents

$

67,055



$

65,334


Short-term investments

128



164


Total cash and cash equivalents

67,183



65,498






Securities available-for-sale, at fair value

932,070



710,570


Securities held-to-maturity, at amortized cost (fair value of $244,239 and $236,125 at June 30, 2018 and December 31, 2017, respectively)

254,801



239,618


Federal Home Loan Bank stock

45,009



44,664


Loans receivable, net

4,649,054



4,400,470


Accrued interest receivable

17,067



15,915


Real estate owned

660



959


Office properties and equipment, net

46,623



42,620


Bank-owned life insurance

151,837



150,521


Goodwill and intangible assets

5,957



5,997


Other assets

107,141



89,668


Total assets

$

6,277,403



$

5,766,500






Liabilities and Stockholders' Equity




Liabilities:




Deposits

$

4,294,832



$

4,263,315


Borrowings

930,618



929,057


Advance payments by borrowers for taxes and insurance

30,995



25,563


Accrued expenses and other liabilities

79,660



76,495


Total liabilities

5,336,105



5,294,430






Stockholders' equity:




Preferred stock, $0.01 par value. Authorized 10,000,000 shares; issued none




Common stock, $0.01 par value. Authorized 500,000,000 shares authorized; 115,889,175 shares issued and outstanding at June 30, 2018 and none at December 31, 2017

1,159




Additional paid-in capital

526,332




Retained earnings

534,522



537,480


Accumulated other comprehensive loss

(75,736)



(65,410)


Unallocated common stock held by the Employee Stock Ownership Plan

(44,980)




Total stockholders' equity

941,297



472,070


Total liabilities and stockholders' equity

$

6,277,403



$

5,766,500



 

 

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Statements of Operations (Unaudited)

(Dollars in thousands, except for per share data)



Three Months Ended June 30,


Six Months Ended June 30,


2018


2017


2018


2017

Interest and dividend income:








Loans receivable

$

45,865



$

41,981



$

89,706



$

82,583


Securities available-for-sale

4,922



4,354



11,336



8,692


Securities held-to-maturity

2,991





3,455




Federal funds and interest earning deposits

584



66



1,072



89


Federal Home Loan Bank stock dividends

657



449



1,244



914


Total interest and dividend income

55,019



46,850



106,813



92,278


Interest expense:








Deposits

9,194



6,382



17,293



12,454


Borrowings

4,809



4,829



9,442



9,408


Total interest expense

14,004



11,211



26,735



21,862










Net interest income

41,015



35,639



80,078



70,416










Provision for loan losses

2,400



375



4,400



751










Net interest income after provision for loan losses

38,615



35,264



75,677



69,665










Non-interest income:








Demand deposit account fees

976



922



1,920



1,837


Bank-owned life insurance

1,493



1,059



2,557



2,758


Title insurance fees

1,255



949



2,029



1,916


Loan fees and service charges

451



532



922



1,027


Gain on securities transactions, net





116




Gain on sale of loans receivable, net

15



69



15



170


(Loss) Gain on sale of  real estate owned

(13)



39



(13)



248


Other non-interest income

1,233



1,198



2,367



2,571


Total non-interest income

5,410



4,768



9,912



10,527










Non-interest expense:








Compensation and employee benefits expense

16,750



15,304



33,275



31,283


Occupancy expense

3,518



3,465



7,234



6,895


Federal insurance premiums expense

473



412



901



825


Advertising expense

1,292



1,122



2,139



1,803


Professional fees expense

399



379



613



558


Data processing expense

672



577



1,314



1,144


Charitable contribution to foundation

34,767



154



34,767



454


Other non-interest expense

3,859



3,413



7,462



6,717


Total non-interest expense

61,728



24,826



87,703



49,679










(Loss) Income before income tax expense

(17,703)



15,206



(2,113)



30,513










Income tax (benefit) expense

(2,961)



5,934



844



10,946










Net (loss) income

$

(14,742)



$

9,272



$

(2,958)



$

19,567


Basic and diluted earnings per share

$

(0.13)



N/A



$

(0.03)



N/A


Weighted average shares outstanding

111,346,897



N/A



111,346,897



N/A



 

 

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Average Balances / Yields (Unaudited)



For the Three Months Ended


June 30, 2018


June 30, 2017


Average
Balance


Interest
and
Dividends


Yield /
Cost


Average
Balance


Interest
and
Dividends


Yield /
Cost


(In thousands)




(In thousands)



Interest-earnings assets:












Loans

$

4,618,006



$

45,865



3.98

%


$

4,309,453



$

41,981



3.91

%

Investment securities

1,173,935



7,913



2.70

%


673,712



4,354



2.59

%

Other interest-earning assets

166,412



1,241



2.99

%


61,717



515



3.35

%

Total interest-earning assets

5,958,354



$

55,019



3.70

%


5,044,882



$

46,850



3.72

%

Non-interest-earning assets

339,732







255,898






Total assets

$

6,298,086







$

5,300,780


















Interest-bearing liabilities:












Interest bearing transaction accounts

$

1,385,603



$

2,881



0.83

%


$

1,289,392



$

1,852



0.58

%

Money market deposit accounts

372,728



487



0.52

%


274,657



193



0.28

%

Savings deposit accounts

744,114



287



0.15

%


548,202



211



0.15

%

Certificates of deposit

1,427,838



5,540



1.56

%


1,281,988



4,126



1.29

%

Total interest-bearing deposits

3,930,282



9,194



0.94

%


3,394,239



6,382



0.75

%

FHLB advances

694,581



3,480



2.01

%


652,524



3,392



2.09

%

Junior subordinated debt

50,678



1,329



10.52

%


50,621



1,044



8.27

%

Other borrowings

11





%


40,000



393



3.94

%

Total borrowings

745,270



4,809



2.59

%


743,145



4,829



2.61

%

Total interest-bearing liabilities

4,675,552



$

14,004



1.20

%


4,137,384



$

11,211



1.09

%













Non-interest bearing liabilities












Non-interest bearing deposits

701,609







617,366






Other non-interest bearing liabilities

135,436







92,998






Total liabilities

5,512,597







4,847,748






Total equity

785,489







453,032






Total liabilities and equity

$

6,298,086







$

5,300,780


















Net interest income



$

41,015







$

35,639




Interest rate spread





2.50

%






2.63

%

Net interest-earning assets

$

1,282,802







$

907,498






Net interest margin





2.76

%






2.83

%

Ratio of interest-earning assets to interest-bearing liabilities

127.44

%






121.93

%





 

 


For the Six Months Ended


June 30, 2018


June 30, 2017


Average
Balance


Interest
and
Dividends


Yield /
Cost


Average
Balance


Interest
and
Dividends


Yield /
Cost


(In thousands)




(In thousands)



Interest-earnings assets:












Loans

$

4,551,970



$

89,706



3.97

%


$

4,258,192



$

82,583



3.91

%

Investment securities

1,095,928



14,791



2.72

%


677,243



8,692



2.59

%

Other interest-earning assets

161,899



2,316



2.88

%


54,420



1,003



3.72

%

Total interest-earning assets

5,809,798



$

106,813



3.71

%


4,989,855



$

92,278



3.73

%

Non-interest-earning assets

328,626







255,748






Total assets

$

6,138,424







$

5,245,603


















Interest-bearing liabilities:












Interest bearing transaction accounts

$

1,405,231



$

5,378



0.77

%


$

1,294,638



$

3,654



0.57

%

Money market deposit accounts

335,136



722



0.43

%


272,943



381



0.28

%

Savings deposit accounts

740,185



579



0.16

%


544,340



417



0.15

%

Certificates of deposit

1,420,500



10,614



1.51

%


1,258,426



8,002



1.28

%

Total interest-bearing deposits

3,901,053



17,293



0.89

%


3,370,347



12,454



0.75

%

FHLB advances

745,394



7,066



1.91

%


643,593



6,538



2.05

%

Junior subordinated debt

50,670



2,374



9.45

%


50,614



2,089



8.32

%

Other borrowings

171



3



3.16

%


40,000



781



3.94

%

Total borrowings

796,235



9,442



2.39

%


734,207



9,408



2.58

%

Total interest-bearing liabilities

4,697,288



$

26,735



1.15

%


4,104,554



$

21,862



1.07

%













Non-interest bearing liabilities












Non-interest bearing deposits

689,021







601,447






Other non-interest bearing liabilities

122,573







93,049






Total liabilities

5,508,882







4,799,050






Total equity

629,542







446,553






Total liabilities and equity

$

6,138,424







$

5,245,603


















Net interest income



$

80,078







$

70,416




Interest rate spread





2.56

%






2.66

%

Net interest-earning assets

$

1,112,510







$

885,301






Net interest margin





2.78

%






2.85

%

Ratio of interest-earning assets to interest-bearing liabilities

123.68

%






121.57

%





 

 

The following table summarizes the quarterly net interest margin for the previous five quarters.


Average Yields/Costs by Quarter


June 30, 2018


March 31, 2018


December 31, 2017


September 30, 2017


June 30, 2017

Yield on interest earning assets:










Loans

3.98

%


3.96



3.91



3.90



3.91

%

Investment securities

2.70

%


2.74



2.64



2.57



2.59

%

Other interest-earning assets

2.99

%


2.77



3.99



2.93



3.35

%

Total interest-earning assets

3.70

%


3.71



3.71



3.71



3.72

%











Cost of interest bearing liabilities:










Total interest-bearing deposits

0.94

%


0.85



0.85



0.80



0.75

%

Total borrowings

2.59

%


2.22



2.50



2.59



2.61

%

Total interest-earning liabilities

1.20

%


1.09



1.13



1.12



1.09

%











Interest rate spread

2.50

%


2.62



2.58



2.58



2.63

%

Net interest margin

2.76

%


2.80



2.79



2.79



2.83

%











Ratio of interest-earning assets to interest bearing liabilities

127.44

%


119.93



122.50



122.33



121.93

%

 

 

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Selected Financial Highlights (Unaudited)


SELECTED FINANCIAL RATIOS:









For the Three Months
Ended June 30,


For the Six Months
Ended June 30,


2018


2017


2018


2017









Return on average assets

(0.94)

%


0.70

%


(0.10)

%


0.75

%

Core return on average assets

0.81

%


0.71

%


0.81

%


0.76

%

Return on average equity

(7.53)%



8.21

%


(0.95)

%


8.84

%

Core return on average equity

6.10

%


8.30

%


7.55

%


8.97

%

Interest rate spread

2.50

%


2.63

%


2.56

%


2.66

%

Net interest margin

2.76

%


2.83

%


2.78

%


2.85

%

Non-interest expense to average assets

3.93

%


1.88

%


2.88

%


1.91

%

Efficiency ratio

132.96

%


61.44

%


97.46

%


61.38

%

Core efficiency ratio

58.07

%


61.19

%


58.82

%


61.01

%

Average interest-earning assets to average interest-bearing liabilities

127.44

%


121.93

%


123.68

%


121.57

%











CAPITAL RATIOS:

















June 30,


December 31,








2018


2017

Columbia Financial, Inc.:










Total capital (to risk-weighted assets)







25.37

%


15.01

%

Tier 1 capital (to risk-weighted assets)







24.11

%


13.76

%

Common equity Tier 1 capital (to risk-weighted assets)







22.94

%


12.55

%

Tier 1 capital (to adjusted total assets)







16.88

%


10.54

%











Columbia Bank:










Total capital (to risk-weighted assets)







19.53

%


14.90

%

Tier 1 capital (to risk-weighted assets)







18.27

%


13.64

%

Common equity Tier 1 capital (to risk-weighted assets)







18.27

%


13.64

%

Tier 1 capital (to adjusted total assets)







12.85

%


10.44

%

 

 

ASSET QUALITY:




($ in thousands)

June 30,


December 31,


2018


2017





Non-accrual loans

$

3,761



$

6,525


90+ and still accruing




Non-performing loans

3,761



6,525


Foreclosed assets

660



959


Total Non-performing assets

$

4,421



$

7,484






Non-performing loans to total loans

0.08

%


0.15

%

Non-performing assets to total assets

0.07

%


0.13

%

Allowance for loan losses

$

62,524



$

58,178


Allowance for loan losses to total non-performing loans

1,662.43

%


891.62

%

Allowance for loan losses to gross loans

1.33

%


1.31

%

 

LOAN DATA:




($ in thousands)

June 30,


December 31,


2018


2017

Real estate loans:




One to four family

$

1,763,158



$

1,616,259


Multifamily and commercial

1,971,803



1,871,210


Construction

254,850



233,652


Commercial business loans

292,113



277,970


Consumer loans:




Home equity loans and advances

414,388



448,020


Other consumer loans

956



998


Total loans

4,697,268



4,448,109


Net deferred loan costs

12,280



9,135


Allowance for loan losses

(62,524)



(58,178)


Loans receivable, net

$

4,649,054



$

4,400,470


 

Notes and Reconciliation of GAAP to Non-GAAP Financial Measures










Book and Tangible Book Value per Share


($ in thousands)





At June 30,


At December 31,






2018


2017









Total stockholders' equity





$

941,297



$

472,070


Less: goodwill





5,716



5,716


Total tangible stockholders' equity





$

935,581



$

466,354










Shares outstanding





115,889,175













Book value per share





$

8.12



N/A


Tangible book value per share





$

8.07



N/A










Reconciliation to Core Net Income








($ in thousands)

Three months ended June 30,

Six months ended June 30,


2018


2017


2018


2017









Net income

$

(14,742)



$

9,272



$

(2,958)



$

19,567


Add: Contribution to foundation, net of tax

27,466



100



27,466



295


Core net income

$

12,724



$

9,372



$

24,508



$

19,862


















Return on Average Assets

($ in thousands)

Three months ended June 30,

Six months ended June 30,


2018


2017


2018


2017









Net income

$

(14,742)



$

9,272



$

(2,958)



$

19,567


Average assets

6,298,086



5,300,780



6,138,424



5,245,603










Return on average assets

(0.94)%



0.70

%


(0.10)%



0.75

%









Add: Contribution to foundation, net of tax

27,466



100



27,466



295


Core net income

$

12,724



$

9,372



$

24,508



$

19,862










Core return on average assets

0.81

%


0.71

%


0.81

%


0.76

%

















Return on Average Equity

($ in thousands)

Three months ended June 30,

Six months ended June 30,


2018


2017


2018


2017









Total average stockholders' equity

$

785,489



$

453,032



$

629,542



$

446,553










Net loss (income)

(14,742)



9,272



(2,958)



19,567










Return on average equity

(7.53)%



8.21

%


(0.95)%



8.84

%









Add: Contribution to foundation, net of tax

27,466



100



27,466



295


Core average stockholders' equity

837,281



453,032



654,572



446,553


Core net income

$

12,724



$

9,372



$

24,508



$

19,862










Core return on average equity

6.10

%


8.30

%


7.55

%


8.97

%

















Efficiency Ratios

($ in thousands)

Three months ended June 30,

Six months ended June 30,


2018


2017


2018


2017









Net interest income

$

41,015



$

35,639



$

80,078



$

70,416


Non-interest income

5,410



4,768



9,912



10,527


Total income

$

46,425



$

40,407



$

89,990



$

80,943










Non-interest expense

$

61,728



$

24,826



$

87,703



$

49,679










Efficiency ratio

132.96

%


61.44

%


97.46

%


61.38

%









Less: contribution to charitable foundation

34,767



100



34,767



295


Core non-interest expense

26,961



24,726



52,936



49,384










Core efficiency ratio

58.07

%


61.19

%


58.82

%


61.01

%

 

 

Cision View original content:http://www.prnewswire.com/news-releases/columbia-financial-inc-announces-second-quarter-earnings-300687856.html

SOURCE Columbia Financial, Inc.

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