Columbia Financial, Inc. · NASDAQ:CLBK
Columbia Financial — Investor Presentation (May 2020)
21 slides from Columbia Financial's investor presentation, May 22, 2020
Slide 1: Columbia Financial, Inc.
Columbia fd Financial, Inc. NASDAQ: CLBK May 22, 2020
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: 2019 Year in Review
2019 YEAR IN REVIEW The Company completed another successful year in 2019. Below are some of the highlights of our financial and operational performance for fiscal 2019 in support of our strategic plan: . Achieved asset growth of 22%, loan growth of 24%, and deposit growth of 28% through a combinati
Slide 4: COVID-19 Impact and Response
COVID-19 IMPACT AND RESPONSE SAFELY PROVIDING BANKING SERVICES IN A CHALLENGING ENVIRONMENT . Implemented nearly 100% back office remote work environment at the time of the New Jersey stay at home order on March 21, 2020 . Branch banking through drive-up and appointment banking with enhanced sanitar
Slide 5: COVID-19 Impact and Response: Supporting Our Customers
COVID-19 IMPACT AND RESPONSE SUPPORTING OUR CUSTOMERS . Huge effort to support SBA Payroll Protection Program Loans . Originated 2,200 loans for $475 million. Average loan size was $216,000 . Supported the retention of over 40,000 local jobs . All applications accepted for qualified borrowers were a
Slide 6: Financial Performance: Operating Data
FINANCIAL PERFORMANCE FOR THE THREE MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31, Operating Data MARCH 31, ($ in thousands) 2020 2019 2019 2018 2017 Interest Income $ 74,690 $ 62,887 $ 261,083 $ 226,290 $ 189,274 Interest Expense 23,988 20,503 88,712 62,256 45,965 Net Interest Income 50,702 42,384 1
Slide 7: Financial Performance: Performance Ratios
FINANCIAL PERFORMANCE FOR THE THREE MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31, Performance Ratios MARCH 31, 2020 1 2019 1 2019 2018 2017 Return on Average Assets 0.33% 0.90% 0.77% 0.36% 0.46% Core Return on 0.40% 0.89% 0.77% 0.79% 0.55% Avg. Assets Return on Average Equity 2.78% 6.18% 5.50% 2.87%
Slide 8: Lending
LENDING • 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. • However, near term growth will be limited as the impact of COVID-19 is monitored. LOAN TYPE ($ in thousands) 12/31/2017 3/31
Slide 9: Asset Quality
ASSET QUALITY . NPAs to assets remain very low relative to industry levels. . ALLL to loans was 1.14% at March 31, 2020 Peers are: BHLB, BRKL, CBU, CNOB, CUBI, DCOM, EGBN, FFIC, INDB, IBTX, KRNY, LBAI, EBSB, NBTB, OCFC, PFS, SARS, AUB, WSFS Data: S&P Global, Q1 2020 NCOs / avg loans was annualized 9
Slide 10: Deposits
DEPOSITS • The Company’s primary source of funds is deposits, which are comprised of demand accounts, money market accounts, savings accounts and certificates of deposit. • Deposit growth is sourced through our retail branch network in conjunction with the efforts of our business development and com
Slide 11: Acquisition of Stewardship Financial
ACQUISITION OF STEWARDSHIP FINANCIAL . Cash deal of $137 million to purchase a solid community bank with ~$1 billion in assets . Strengthened our northern franchise with the addition of seven branches after consolidation . Significant cost savings and earnings accretion . Manageable level of tangibl
Slide 12: Acquisition of Roselle Bank
ACQUISITION OF ROSELLE BANK . Merger of Mutual Holding Companies 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 m
Slide 13: Stock Performance
STOCK PERFORMANCE The following graph illustrates CLBK’s stock performance relative to the industry and the MHC Index. Source: S&P Global with data through May 19, 2020 13
Slide 14: Digital Strategy Roadmap
DIGITAL STRATEGY ROADMAP 2015-2019 2020 Strategic Area of Focus Drive Growth & Digital Mortgage Solutions Profitability Operational Excellence Small Business Lending Solutions Customer Experience AI/ML for Cyber Defense Security & Risk Controls Business Intelligence Tools to drive Employee Business
Slide 15: Capital Management
CAPITAL MANAGEMENT . In light of the current uncertain economic environment, the Company will moderate growth, both organic and through acquisitions, and evaluate its capital position as it relates to repurchases. . Dividends . CLBK is not a “grandfathered” mutual holding company as defined in the D
Slide 16: Columbia Bank Foundation
COLUMBIA BANK FOUNDATION . Current Funding: $47 million . 2019 Total Donations: $2.7 million . Pledged $600,000 to non-profit organizations impacted by COVID-19 and to medical facilities during 2020 16
Slide 17: Near Term Focus
NEAR TERM FOCUS The pandemic has materially impacted the Company’s growth pattern, interaction with customers / employees and the economic outlook. We will modify the Company’s financial and operating strategies to conform with the constraints of the pandemic and the new operating environment. Speci
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Slide 19: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR THE THREE MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31, Performance Ratios MARCH 31, 2020 2019 2019 2018 2017 Reconciliation to Core Net Income Net Income $6,765 $14,919 $54,717 $22,736 $24,757 Less: (Gain) loss on securities transactions, ne
Slide 20: Reconciliation of GAAP to Non-GAAP Financial Measures (Continued)
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED) FOR THE THREE MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31, Performance Ratios MARCH 31, (1 Ratios are annualized) 2020 1 2019 1 2019 2018 2017 Return on Average Assets 0.33% 0.90% 0.77% 0.36% 0.46% Net Income $6,765 $14,919 $54,717 $
Slide 21: Reconciliation of GAAP to Non-GAAP Financial Measures (Continued)
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED) FOR THE THREE MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31, Performance Ratios MARCH 31, (1 Ratios are annualized) 2020 1 2019 1 2019 2018 2017 Efficiency Ratio 67.45% 61.05% 63.09% 78.28% 65.84% Net Interest Income $50,702 $42,384 $1
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