Columbia Financial, Inc. · NASDAQ:CLBK
Columbia Financial — East Coast Financial Services Conference 2024
25 slides from Columbia Financial's conference presentation, Nov 13, 2024
Slide 1: East Coast Financial Services Conference 2024
1 East Coast Financial Services Conference 2024 November 13, 2024 | Thomas J. Kemly, President & CEO E. Thomas Allen, SEVP & Chief Operating Officer John Klimowich, SEVP & Chief Risk Officer
Slide 2: Safe Harbor Statement
2 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 statemen
Slide 3: Non-GAAP Financial Measures
3 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 financi
Slide 4: Franchise Overview
4 Franchise Overview Number of Branches Total Deposits In Market ($000) Total Market Share (%) Bank of America Corporation (NC) 1 187 69,379,771$ 16.1 The Toronto-Dominion Bank 2 222 58,375,076 13.5 The PNC Finl Svcs Grp (PA) 3 180 38,715,959 9.0 Wells Fargo & Co. (CA) 4 204 38,497,369 8.9 JPMorgan
Slide 5: September 30, 2024 Update
5 September 30, 2024 Update Highlights • 2024 Year-to-date financial results were lower than anticipated. • Net Interest Margin results have been impacted by the continued pressure on funding costs. • Results were impacted by higher charge-offs primarily in the commercial business segment resulting
Slide 6: Capital Management
6 Capital Management • Management focused on optimizing the capital raised in the IPO through a combination of organic growth, acquisitions, and repurchases. Repurchases have been paused in order to retain capital. • CLBK does not expect to pay cash dividends to shareholders while in the MHC structu
Slide 7: Financial Performance
7 Financial Performance YTD amounts presented as of September 30, 2024. (1) Represents a non-GAAP financial measure.
Slide 8: Lending
8 Lending • As a community banking organization, the Company differentiates itself by focusing on relationships and self-sourced originations. • Residential real estate is expected to become a smaller component of the loan portfolio mix as management is de-emphasizing that line of business. • Loans
Slide 9: Commercial Real Estate
9 Commercial Real Estate Peers: AUB, BHLB, BRKL, CBU, CNOB, CUBI, DCOM, EGBN, FFIC, INDB, IBTX, KRNY, NBTB, NFBK, OCFC, PGC, PFS, SASR, WSFS Commercial Real Estate is defined as non-owner occupied commercial, construction, and multifamily properties. Source: S&P Global 6/30/2024
Slide 10: Commercial Real Estate (Continued)
10 Commercial Real Estate (Continued) Multifamily Real Estate - 37.7% Investor Owned Commercial Real Estate - 43.9% Owner Occupied Commercial Real Estate - 18.4% Commercial Real Estate Breakdown as of September 30, 2024 Investor Owned Commercial Real Estate (Dollars in thousands) Balance % of Multif
Slide 11: Commercial Real Estate (Continued)
11 Commercial Real Estate (Continued) The multi-family portfolio only contains two loans collateralized by one New York City rent stabilized property totaling less than $1.0 million.
Slide 12: Asset Quality
12 Asset Quality Peers: AUB, BHLB, BRKL, CBU, CNOB, CUBI, DCOM, EGBN, FFIC, INDB, IBTX, KRNY, NBTB, NFBK, OCFC, PGC, PFS, SASR, WSFS Source: S&P Global Columbia Financial, Inc. Peer Median
Slide 13: Asset Quality (Continued)
13 Asset Quality (Continued) Columbia Financial, Inc. Peer Median Peers: AUB, BHLB, BRKL, CBU, CNOB, CUBI, DCOM, EGBN, FFIC, INDB, IBTX, KRNY, NBTB, NFBK, OCFC, PGC, PFS, SASR, WSFS Source: S&P Global
Slide 14: Liquidity
14 Liquidity • At September 30, 2024, available sources of liquidity include but are not limited to: • Total cash and cash equivalents of $283.5 million; • The Company had immediate access to approximately $2.6 billion of funding through multiple sources; • Unpledged loan collateral available to ple
Slide 15: Deposits
15 Deposits At September 30, 2024, the Company had approximately 215,000 accounts with an average deposit balance of approximately $37,000. 17.7% 24.9% 15.6% 8.2% 33.6% Deposit Breakdown as of September 30, 2024 Non-interest Bearing Demand Interest-Bearing Demand Money Market Savings Certificates of
Slide 16: Investment Securities
16 Investment Securities • Approximately 94.7% of the total portfolio consisted of direct government obligations or government sponsored enterprise obligations. • Reinvesting maturing cash flows in treasury bonds and mortgage-backed securities. • Net unrealized gains(losses) on available for sale se
Slide 17: Mergers & Acquisitions
17 Mergers & Acquisitions Sold 43% of Columbia Financial and raised $498 million in gross proceeds. Granted 3% of the shares to the Columbia Bank Foundation. Pro Forma TCE was 15.6%. Acquired Roselle Mutual Merger $422 million in assets and $333 million in deposits. In market transaction adding thre
Slide 18: Organizational Considerations
18 Organizational Considerations • Management and the Board of Directors are aware of the opportunities afforded by a second step conversion. • We believe that being "well positioned" to execute a second step conversion is important. • Therefore, management is focused on: • Building the growth engin
Slide 19: Pro Forma Value
19 Pro Forma Value Legal Disclaimer: The proforma financial information presented on this page is for illustrative purposes only, is based on information currently available, and does not reflect the actual pricing of any future second step. While we continue to evaluate our organizational structure
Slide 20: Strategic Focus
20 Strategic Focus • Focus on earnings improvement, including strategies to improve earnings; • Continue our controlled organic growth strategy while being mindful of economic conditions and evaluate acquisitions opportunistically; • Manage our level of operating expenses to partially offset the ear
Slide 21: Questions
21 Questions
Slide 22: Appendix: Reconciliation of GAAP to Non-GAAP Financial Measures
22 Appendix Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 23: Core Net Income
23 Core Net Income (in thousands) 2024 2023 2022 2021 Reconciliation of Core Net Income: Net Income: 9,570$ 36,086$ 86,173$ 92,049$ Add/Less: Loss(gain) on securities transactions, net of tax 1,130 9,249 (156) (1,481) Less: FDIC special assessment, net of tax 385 3,009 - - Less: Severance expense fr
Slide 24: Core ROAA and ROATE
24 Core ROAA and ROATE (in thousands, except ratio data) 2024 2023 2022 2021 Return on Average Assets 0.12% 0.35% 0.88% 1.01% Net Income 9,570$ 36,086$ 86,173$ 92,049$ Average Assets 10,642,460$ 10,370,557$ 9,741,822$ 9,103,003$ Core Return on Average Assets 0.15% 0.49% 0.93% 1.03% Core Net Income 1
Slide 25: Core Efficiency Ratio
25 Core Efficiency Ratio (in thousands, except ratio data) 2024 2023 2022 2021 Efficiency Ratio 85.73% 78.20% 58.83% 57.26% Net Interest Income 131,555$ 205,876$ 266,777$ 233,134$ Non-Interest Income 25,610$ 27,379$ 30,400$ 38,831$ Total Income 157,165$ 233,255$ 297,177$ 271,965$ Non-Interest Expens
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