Columbia Financial, Inc. · NASDAQ:CLBK
Columbia Financial — Shareholder Meeting (June 2024)
26 slides from Columbia Financial's shareholder meeting presentation, Jun 6, 2024
Slide 1: Columbia Financial, Inc. Annual Meeting of Shareholders
1 Columbia Financial, Inc. Annual Meeting of Shareholders June 6, 2024 | Thomas J. Kemly, President & CEO
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: 2023 Year In Review
4 2023 Year In Review • Challenging Operating Environment • Rapidly rising interest rates to combat elevated inflation levels resulted in a higher cost of funds and net interest margin compression; • Priority focus on customer confidence, the safety of deposits and managing their risk of attrition a
Slide 5: First Quarter 2024 Update Highlights
5 First Quarter 2024 Update Highlights • First quarter financial results were disappointing. • Results were impacted by the Federal Deposit Insurance Corporation special assessment of $565,000. • While the operating environment remains challenging, management is optimistic about future results for t
Slide 6: Capital Management
6 Capital Management Minimum Capital Adequacy Requirements with Capital Conservation Buffer • 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 no
Slide 7: Financial Performance
7 Financial Performance (1) Represents a non-GAAP financial measure. (1) (1) (1)
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 small component of the loan portfolio mix as management is de-emphasizing that line of business. • Loans ar
Slide 9: Commercial Real Estate
9 Commercial Real Estate Peers: AUB, BHLB, BRKL, CBU, CNOB, CUBI, DCOM, EGBN, FFIC, INDB, IBTX, KRNY, LBAI, 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 3/31/24
Slide 10: Commercial Real Estate (Continued)
10 Commercial Real Estate (Continued) Investor Owned Commercial Real Estate (Dollars in thousands) Balance % of Investor Owned Commercial Real Estate Average Loan Size Weighted Average Loan to Value Ratio Weighted Average Debt Service Coverage Retail / Shopping centers $ 500,921 13.4 % $ 2,792 52.3
Slide 11: Commercial Real Estate (Continued)
11 Commercial Real Estate (Continued) The multi-family portfolio only contains one loan collateralized by one New York City rent stabilized property totaling $871,000.
Slide 12: Commercial Real Estate (Continued)
12 Commercial Real Estate (Continued) Management has assessed 2024 and 2025 maturities and resetting loans. We believe issues to be very manageable.
Slide 13: Asset Quality
13 Asset Quality Peers: AUB, BHLB, BRKL, CBU, CNOB, CUBI, DCOM, EGBN, FFIC, INDB, IBTX, KRNY, LBAI, NBTB, NFBK, OCFC, PGC, PFS, SASR, WSFS Source: S&P Global
Slide 14: Asset Quality (Continued)
14 Asset Quality (Continued) Peers: AUB, BHLB, BRKL, CBU, CNOB, CUBI, DCOM, EGBN, FFIC, INDB, IBTX, KRNY, LBAI, NBTB, NFBK, OCFC, PGC, PFS, SASR, WSFS Source: S&P Global
Slide 15: Asset Quality (Continued)
15 Asset Quality (Continued) Sources: S&P Global and Federal Reserve Bank. FRED - Gray bars indicate dates of U.S. recessions as inferred by GDP-based recession indicator.
Slide 16: Liquidity
16 Liquidity • At March 31, 2024, available sources of liquidity include but are not limited to: • Total cash and cash equivalents of $373 million; • The Company had immediate access to approximately $2.7 billion of funding through multiple sources; • Unpledged loan collateral available to pledge in
Slide 17: Deposits
17 Deposits • The deposit base is large and diverse with an average deposit balance of $37,000 at December 31, 2023. • Uninsured deposits of $1.8 billion or 23.4% of total deposits at December 31, 2023 (excluding municipal deposits which are collateralized). • Intercompany deposits of $3.5 billion a
Slide 18: Investment Securities
18 Investment Securities • Approximately 94.2% 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 19: 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 branches, net of closures. Mutual Merger $316 million in assets and $210 milion in deposits at two branches. Columbia intends to merge Free
Slide 20: Organizational Considerations
20 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 21: Strategic Focus
21 Strategic Focus • Focus on earnings improvement; • Continue our controlled organic growth strategy while being mindful of economic conditions and evaluate acquisitions opportunistically; • Moderate our level of operating expenses to partially offset the earnings impact of margin compression; • Co
Slide 22: Questions
22 Questions
Slide 23: Appendix: Reconciliation of GAAP to Non-GAAP Financial Measures
23 Appendix Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 24: Core Net Income
Core Net Income Description (in thousands) Reconciliation of Core Net Income: Net Income: AddiLess: Loss(gain) on securities transactions, net of tax Less: FDIC special assessment, net of tax Less: Severance expense from reduction in workforce , net of tax Less: Insurance settlement, net of tax Add:
Slide 25: Core ROAA and ROATE
Core ROAA and ROATE le Deccanton ‘or the Years Ended Decmber 3: (in thousands, pt ratio data) | 2021 =F 2020 | Return on Average Assets 0.35 % 0.88 % 1.01 % 0.66 % Net Income $ 36,086 $ 86,173 $ 92,049 $ 57,603 Average Assets $10,370,557 $9,741,822 $9,103,003 $8,744,973 Core Return on Average Assets
Slide 26: Core Efficiency Ratio
Core Efficiency Ratio De (in thousan: ption cept Efficiency Ratio Net Interest Income Non-Interest Income Total Income Non-Interest Expense Core Efficiency Ratio Non-Interest Income Add/Less: Loss(gain) on securities transactions Less: Insurance settlement Core Non-Interest Income Non-Interest Expen