Columbia Financial, Inc. · NASDAQ:CLBK
Columbia Financial — Investor Presentation (June 2022)
25 slides from Columbia Financial's investor presentation, Jun 9, 2022
Slide 1: Columbia Financial, Inc.
Columbia Sa Financial, Inc. NASDAQ: CLBK June 9, 2022
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 NON-GAAP INFORMATION THAT THE COMPANY’S MANAGEMENT USES IN ITS ANALYSIS OF THE COMPANY’S FINANCIAL RESULTS
Slide 4: 2021 Year in Review
2021 YEAR IN REVIEW Despite the continuing challenges of the COVID-19 pandemic, the Company achieved another successful year in 2021. Below are some highlights: Completed the acquisition of Freehold Bank and announced our acquisition of RSI Bank Increased net income to $92.0 million, or $0.88 pe
Slide 5: Franchise
FRANCHISE 2 Number of Branches Total Deposits In Market ($000) Total Market Share (%) New Jersey Bank of America Corporation (NC) 1 205 75,255,518 16.98 The Toronto-Dominion Bank 2 226 58,674,498 13.24 Wells Fargo & Co. (CA) 3 239 47,477,279 10.71 The PNC Finl Svcs Grp (PA) 4 229 42,764,868 9.65 JPM
Slide 6: Ownership Structure
OWNERSHIP STRUCTURE 3 Actual 3/31/22 RSI Merger Shares Pro Forma Shares Ownership % MHC Shares 69,930,210 6,086,314 76,016,524 67.6% Minority Shares 36,511,712 - 36,511,712 32.4% Total Shares 106,441,922 6,086,314 112,528,236 100.0% Pro forma 3/31/22
Slide 7: Financial Condition
FINANCIAL CONDITION 4 Financial Condition ($ in thousands) 3/31/2022 03/31/2021 12/31/2021 12/31/2020 12/31/2019 12/31/2018 Total Assets $ 9,237,094 $ 9,039,931 $ 9,224,097 $ 8,798,536 $ 8,188,694 $ 6,691,618 Total cash and cash equivalents 95,997 359,716 70,963 422,957 75,547 42,201 Securities avai
Slide 8: Financial Performance
FINANCIAL PERFORMANCE 5 Operating Data ($ in thousands) FOR THE THREE MONTHS ENDED MARCH 31, FOR THE YEARS ENDED DECEMBER 31, 2022 2021 2021 2020 2019 2018 Interest Income $ 68,735 $ 67,637 $ 270,150 $ 295,711 $ 261,083 $ 226,290 Interest Expense 6,009 10,897 37,016 74,138 88,712 62,256 Net Interest
Slide 9: Financial Performance
FINANCIAL PERFORMANCE 6 Ratios for the first quarter of 2022 are annualized. All other ratios are for the twelve months ended December 31, See the appendix for the reconciliation of GAAP to Non-GAAP financial measures.
Slide 10: Loan Portfolio Growth
• As part of our business plan, the Company intends to continue to grow all segments of its loan portfolio, but will place a greater emphasis on commercial segments • The Company continues to add seasoned commercial lenders from regional and money center banks • As a community bank, the Company diff
Slide 11: Asset Quality
Conservative credit culture Self-sourced lending Proactively sell problem loans Currently, there are no remaining COVID deferrals 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. 8 Data: S&P Global NC
Slide 12: Deposits
• Deposit growth is sourced through our retail branch network in conjunction with the efforts of our business development and commercial lending teams • The Company places a heavy emphasis on checking products which currently account for 57% of all deposits • Almost all commercial banking credit rel
Slide 13: Mergers & Acquisitions
MERGERS & ACQUISITIONS Completed IPO 2018 Acquired Stewardship 2019 Acquired Roselle Acquired Freehold 2021 Acquired RSI 20222020 Sold 43% of Columbia Financial and raised $498 million in gross proceeds. Granted 3% of the shares to a Foundation Pro Forma TCE was 15.6% $136 million cash acquisition C
Slide 14: Stock Performance
STOCK PERFORMANCE 11 Source: S&P Global with data measured from closing price on first day of trading through June 6, 2022 Return from IPO price of $10.00 is 113.4%
Slide 15: Technology & Digital Strategy Roadmap
TECHNOLOGY & DIGITAL STRATEGY ROADMAP S T R A T E G IC A R E A O F F O C U S 12
Slide 16: Consumer Banking – New Products & Capabilities
CONSUMER BANKING – NEW PRODUCTS & CAPABILITIES 16 DIGITAL MORTGAGE Deployed Digital Platform to Transform Mortgage Process • Simplified client experience • Ease of application entry • Automated data collection • Mobile document upload • Positioned for technological advancements CREDIT CARDS Consumer
Slide 17: 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 Dodd Frank Act and th
Slide 18: Organizational Considerations
ORGANIZATIONAL CONSIDERATIONS 15 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
Slide 19: Environmental, Social and Governance (ESG)
ENVIRONMENTAL SOCIAL AND GOVERNANCE (“ESG”) Not a direct lender to the fossil fuel industry Environmental Sustainability has a Foundation grant target allocation Partnered with WB Mason to expand the use of sustainable/green supplies Digital initiatives are reducing paper Hybrid work envir
Slide 20: Strategic Focus
STRATEGIC FOCUS 17 Resume our growth strategy targeting 8-10% organic growth and evaluate acquisitions opportunistically Redeploy liquidity into loans to enhance net interest margin and profitability Emphasize our commercial lines of business to continue our migration toward a commercial bank
Slide 21: Questions and Answers
Columbia Ja QUESTIONS AND ANSWERS
Slide 22: Appendix: Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 23: Core Net Income
CORE NET INCOME Performance Ratios ($ in thousands) FOR THE THREE MONTHS ENDED MARCH 31, FOR THE YEARS ENDED DECEMBER 31, 2022 2021 2021 2020 2019 2018 Reconciliation to Core Net Income Net Income $20,404 $21,045 $92,049 $57,603 $54,717 $22,736 Less: (Gain) on securities transactions, net of tax --
Slide 24: Core ROAA and ROATE
CORE ROAA AND ROATE Performance Ratios ($ in thousands) FOR THE THREE MONTHS ENDED MARCH 31, FOR THE YEARS ENDED DECEMBER 31, 2022 1 2021 1 2021 2020 2019 2018 Return on Average Assets 0.89% 0.96% 1.01% 0.66% 0.77% 0.36% Net Income $20,404 $21,045 $94,049 $57,603 $54,717 $22,736 Average Assets $9,24
Slide 25: Efficiency Ratio Performance Ratios
Performance Ratios ($ in thousands) FOR THE THREE MONTHS ENDED MARCH 31, FOR THE YEARS ENDED DECEMBER 31, 2022 1 2021 1 2021 2020 2019 2018 Efficiency Ratio 58.41% 57.71% 57.26% 62.54% 63.09% 78.28% Net Interest Income $62,726 $56,740 $233,134 $221,573 $172,371 $164,034 Non-Interest Income 7,041 8,5
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