Columbia Financial, Inc. · NASDAQ:CLBK
Columbia Financial — Investor Presentation (May 2021)
22 slides from Columbia Financial's investor presentation, May 20, 2021
Slide 1: Columbia Financial, Inc.
re Columbia Financial, Inc. NASDAQ: CLBK May 20, 2021
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: 2020 Year in Review
2020 YEAR IN REVIEW In a challenging year filled with economic uncertainty due to the COVID-19 pandemic, Columbia was able to achieve strong financial results, while remaining committed to supporting our customers, communities and employees: Entered a volatile environment with strong capital and l
Slide 5: COVID-19 Impact and Response
COVID-19 IMPACT AND RESPONSE SAFELY PROVIDING BANKING SERVICES IN A CHALLENGING ENVIRONMENT Customers Ensured full-service branch banking throughout the pandemic with enhanced safety protocols Delivered enhanced digital solutions Deferred payments on nearly $1.0 billion of commercial and consu
Slide 6: Financial Condition
FINANCIAL CONDITION 3 Financial Condition as of: ($ in thousands) 03/31/2021 03/31/2020 12/31/2020 12/31/2019 12/31/2018 Total Assets $ 9,039,931 $ 8,325,051 $ 8,798,536 $ 8,188,694 $ 6,691,618 Total Cash and Cash Equivalents 359,716 88,324 422,957 75,547 42,201 Debt Securities Available for Sale, a
Slide 7: Financial Performance
FINANCIAL PERFORMANCE 4 Operating Data ($ in thousands) FOR THE THREE MONTHS ENDED MARCH 31, FOR THE YEARS ENDED DECEMBER 31, 2021 2020 2020 2019 2018 Interest Income $ 67,637 $ 74,690 $ 295,711 $ 261,083 $ 226,290 Interest Expense 10,897 23,988 74,138 88,712 62,256 Net Interest Income 56,740 50,702
Slide 8: Performance Ratios
Performance Ratios FOR THE THREE MONTHS ENDED MARCH 31, FOR THE YEARS ENDED DECEMBER 31, 2021 1 2020 1 2020 2019 2018 Return on Average Assets 0.96% 0.33% 0.66% 0.77% 0.36% Core Return on Avg. Assets 0.99% 0.40% 0.72% 0.77% 0.79% FINANCIAL PERFORMANCE 5 Return on Average Equity 8.50% 2.78% 5.67% 5.5
Slide 9: Loan Portfolio Growth and Composition
• 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 • Seasoned commercial lenders are actively being recruited from regional and money center banks • During 2020, the Company originated $
Slide 10: Asset Quality and Loan Deferrals
NPAs to assets remain very low relative to peer levels In response to the pandemic, the Company deferred payments on nearly $1.0 billion of commercial and consumer loans As a result of working with our customers to return to full payment status, loan deferrals declined to $69.3 million, or 1.1
Slide 11: 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 over half of all deposits • During 2020, the Company leveraged
Slide 12: Acquisition of Roselle Bank
Acquisition completed on April 1, 2020 No actual consideration paid to a third party for additional capital Roselle Bank depositors received the same rights in Columbia Bank, MHC (subscription and liquidation) as Columbia Bank depositors and maintain depositor rights at Columbia Bank as of the
Slide 13: Stock Performance
STOCK PERFORMANCE 10 Source: S&P Global with data through April 30, 2021 -55.00% -50.00% -45.00% -40.00% -35.00% -30.00% -25.00% -20.00% -15.00% -10.00% -5.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 4/ 20 /2 01 8 5/ 20 /2 01 8 6/ 20 /2 01 8 7/ 20 /2 01 8 8/ 20 /2 01 8 9/ 20 /2 01 8 10
Slide 14: Technology and Digital Transformation
TECHNOLOGY AND DIGITAL TRANSFORMATION 11 2015 2018 2016 2019 Technology spending increased 24% for the first quarter of 2021 as compared to the same time period in 2020 Digital Mortgage Solution Small Business Lending Solution Business Intelligence Tools to Drive Business Decisions Drive Dig
Slide 15: Consumer Banking – New Products & Capabilities
CONSUMER BANKING – NEW PRODUCTS & CAPABILITIES 15 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 Launched
Slide 16: Capital Management
The Company continues to have a strong regulatory capital position During 2020, the Company repurchased 7.6 million shares and continued its repurchase activity during the first quarter of 2021 with an additional 2.0 million shares repurchased CAPITAL MANAGEMENT 13 Dividends – CLBK is not a “g
Slide 17: Strategic Focus
STRATEGIC FOCUS 14 Return to normal business environment Resume our growth strategy targeting 8-10% organic growth and evaluate acquisitions opportunistically Emphasize our commercial lines of business to migrate toward a commercial bank balance sheet Build the core deposit base with an emph
Slide 18: Question and Answer Segment
Columbia “a QUESTION AND ANSWER SEGMENT
Slide 19: Appendix: Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 20: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Performance Ratios ($ in thousands) FOR THE THREE MONTHS ENDED MARCH 31, FOR THE YEARS ENDED DECEMBER 31, 2021 2020 2020 2019 2018 Reconciliation to Core Net Income Net Income $21,045 $6,765 $57,603 $54,717 $22,736 Less: (Gain) on securities tran
Slide 21: Reconciliation of GAAP to Non-GAAP Financial Measures (Continued)
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED) Performance Ratios ($ in thousands) FOR THE THREE MONTHS ENDED MARCH 31, FOR THE YEARS ENDED DECEMBER 31, 2021 1 2020 1 2020 2019 2018 Return on Average Assets 0.96% 0.33% 0.66% 0.77% 0.36% Net Income $21,045 $6,765 $57,603 $54,717 $2
Slide 22: Performance Ratios: Efficiency Ratio Reconciliation
Performance Ratios ($ in thousands) FOR THE THREE MONTHS ENDED MARCH 31, FOR THE YEARS ENDED DECEMBER 31, 2021 1 2020 1 2020 2019 2018 Efficiency Ratio 57.71% 67.45% 62.54% 63.09% 78.28% Net Interest Income $56,740 $50,702 $221,573 $172,371 $164,034 Non-Interest Income 8,595 6,391 31,270 31,636 21,6
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