Columbia Financial, Inc. · NASDAQ:CLBK
Columbia Financial — Shareholder Meeting (June 2023)
27 slides from Columbia Financial's shareholder meeting presentation, Jun 7, 2023
Slide 1: Columbia Financial, Inc.
Columbia J4 y 4 Financial, Inc. NASDAQ: CLBK
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT THIS PRESENTATION CONTAINS FORWARD‐LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 REGARDING COLUMBIA FINANCIAL INC.’S EXPECTATIONS OR PREDICTIONS OF FUTURE FINANCIAL OR BUSINESS PERFORMANCE OR CONDITIONS. FORWARD‐LOOKING STATEMENTS
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES THIS PRESENTATION CONTAINS FINANCIAL INFORMATION PRESENTED IN ACCORDANCE WITH U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (“GAAP”). THIS PRESENTATION ALSO CONTAINS CERTAIN NON-GAAP INFORMATION THAT THE COMPANY’S MANAGEMENT USES IN ITS ANALYSIS OF THE COMPANY’S FINANCIAL
Slide 4: 2022 Year in Review
2022 YEAR IN REVIEW ■ Completed the acquisition and integration of RSI Bank ■ Reported net income of $86.2 million, or $0.82 per basic and $0.81 per diluted share ■ Achieved core return on average assets(1) and core return on average tangible equity(1) of 0.93% and 9.56%, respectively ■ Continued to
Slide 5: Consolidated Statements of Financial Condition
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION 3/31/2023 12/31/2022 12/31/2021 12/31/2020 12/31/2019 (In thousands) Total assets $ 10,634,650 $ 10,408,169 $ 9,224,097 $ 8,798,536 $ 8,188,694 Total cash and cash equivalents 319,439 179,228 70,963 422,957 75,547 Debt securities available for sale, at
Slide 6: Financial Performance
FINANCIAL PERFORMANCE For the Three Months Ended March 31, For the Years Ended December 31, Operating Data 2023 2022 2022 2021 2020 2019 (In thousands) Interest income $ 92,880 $ 68,735 $ 309,670 $ 270,150 $ 295,711 $ 261,083 Interest expense 32,016 6,009 42,893 37,016 74,138 88,712 Net interest inc
Slide 7: Financial Performance
FINANCIAL PERFORMANCE (1) Represents a Non-GAAP financial measure. Ratios for 1Q 2023 are annualized. See the appendix for the reconciliation of GAAP to NON-GAAP financial measures. 7
Slide 8: Lending
LENDING Loan Type ($ in thousands) 3/31/2023 12/31/2019 % Change Residential Real Estate $ 2,860,964 $ 2,077,079 37.7 % Home Equity / Consumer 273,942 390,087 (29.8)% Multifamily and Commercial Real Estate 3,709,061 2,919,985 27.0 % Construction 374,434 298,942 25.3 % Commercial Business 516,682 483
Slide 9: Commercial Real Estate Exposure
COMMERCIAL REAL ESTATE EXPOSURE Investor-Owned Commercial Real Estate ($ in thousands) Balance % of Commercial Real Estate Loans Loan to Value Ratio Debt Service Coverage Retail / Shopping Centers $ 520,753 14.0 % 52.1 % 1.43x Mixed Use 306,504 8.3 59.4 1.48 Industrial / Warehouse 332,560 9.0 52.2 1
Slide 10: Asset Quality
ASSET QUALITY ■ Conservative credit culture. ■ Self-sourced lending. ■ Proactively sell problem loans. ■ On January 1, 2022, the Company adopted ASU 2016-13. The adoption resulted in a $16.8 million decrease in our allowance for credit losses. (1) Ratios for 1Q 2023 are annualized. Data: S&P Global
Slide 11: Track Record of Below Industry Net Charge-Offs
TRACK RECORD OF BELOW INDUSTRY NET CHARGE-OFFS (1) March 2023 first quarter ratio is annualized. Sources: S&P Global and Federal Reserve Bank Source: FRED - Gray bars indicate dates of U.S. recessions as inferred by GDP-based recession indicator. 11
Slide 12: Current Banking Environment
CURRENT BANKING ENVIRONMENT There has been a considerable amount of negative attention focused on the failure of three banks with material business concentrations and specializations. Our Company’s business model is completely different from these other institutions. ■ Our Company’s banking subsidia
Slide 13: Liquidity and Investment Portfolio
LIQUIDITY AND INVESTMENT PORTFOLIO At March 31, 2023, available sources of liquidity include but are not limited to: ■ Cash and cash equivalents of $319.4 million; ■ Borrowing capacity based on unencumbered collateral pledged at FHLB totaling $1.1 billion; ■ Borrowing capacity based on unencumbered
Slide 14: Deposits
DEPOSITS ■ Our deposit base has over 210,000 accounts with an average balance of $37,000. ■ Uninsured deposits, excluding municipal deposits which are collateralized, represent only 27.7% of total deposits. ■ Commercial deposit growth is sourced through our retail branch network in conjunction with
Slide 15: Franchise
Source: S&P Global, deposit data as of June 30, 2022. FRANCHISE 15
Slide 16: Mergers & Acquisitions
MERGERS & ACQUISITIONS $136 million cash acquisition Community bank with $962 million in assets and $783 million in deposits In market transaction adding seven Mutual Merger $316 million in assets and $210 million in deposits at two branches Freehold Bank is expected to merge Columbia tancial, Ine a
Slide 17: Stock Performance
STOCK PERFORMANCE Source: S&P Global with data through June 5, 2023. 17
Slide 18: Capital Management
CAPITAL MANAGEMENT ■ Management continues to focus on leveraging the capital raised in the IPO through a combination of organic growth, acquisitions and repurchases. ■ CLBK does not expect to pay cash dividends to shareholders while in the MHC structure as it is not a “grandfathered” MHC under the D
Slide 19: Technology & Digital Strategy Roadmap
TECHNOLOGY & DIGITAL STRATEGY ROADMAP 19
Slide 20: Consumer Banking Client Experience Enhancements
20 20 CONSUMER BANKING CLIENT EXPERIENCE ENHANCEMENTS Modified Customer Overdraft Program • Minimized the impact of fees on consumers by eliminating uncollected fees on all consumer checking accounts and reduced overdraft fees, including the introduction of a $50 fee-free overdraft threshold. New Ba
Slide 21: Organizational Considerations
■ Management and the Board of Directors are aware of the opportunities afforded by a second step conversion. ■ We believe that being “well positioned” to execute a second step conversion is important. ■ Therefore, management is focused on: • Building the growth engine so we can leverage the amount o
Slide 22: Strategic Priorities
■ Continue our controlled organic growth strategy being mindful of economic conditions and evaluate acquisitions opportunistically; ■ Moderate our level of operating expenses to partially offset the earnings impact of margin compression; ■ Focus on controlling funding costs to defend margin; ■ Empha
Slide 23: Questions and Answers
Columbia yy ME Financial, Inc. QUESTIONS AND ANSWERS
Slide 24: Appendix
Columbia - Financial, Inc. NASDAQ: CLBK
Slide 25: Core Net Income
CORE NET INCOME For the Three Months Ended March 31, For the Years Ended December 31, Description (In thousands) 2023 2022 2022 2021 2020 2019 Reconciliation of Core Net Income: Net Income $ 18,723 $ 20,404 $ 86,173 $ 92,049 $ 57,603 $ 54,717 Add/Less: Loss/(gain) on securities transactions, net of
Slide 26: Core ROAA and ROATE
CORE ROAA AND ROATE For the Three Months Ended March 31, For the Years Ended December 31, Description (In thousands, except ratio data) 2023(1) 2022(1) 2022 2021 2020 2019 Return on Average Assets 0.73 % 0.89 % 0.88 % 1.01 % 0.66 % 0.77 % Net Income $ 18,723 $ 20,404 $ 86,173 $ 92,049 $ 57,603 $ 54,
Slide 27: Core Efficiency Ratio
CORE EFFICIENCY RATIO For the Three Months Ended March 31, For the Years Ended December 31, Description (In thousands, except ratio data) 2023(1) 2022(1) 2022 2021 2020 2019 Efficiency Ratio 63.68 % 58.41 % 58.83 % 57.26 % 62.54 % 63.09 % Net Interest Income $ 60,864 $ 62,726 $ 266,777 $ 233,134 $ 2