Columbia Financial, Inc. · NASDAQ:CLBK
Columbia Financial — Merger or Acquisition (June 2019)
10 slides from Columbia Financial's merger presentation, Jun 7, 2019
Slide 1: Columbia Financial, Inc.
eé Columbia 0, ME Financial, Inc. NASDAQ: CLBK June 7, 2019
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT THIS 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 ARE TYPI
Slide 3: Transaction Summary
TRANSACTION SUMMARY • Columbia Financial, Inc. (“Columbia ” or “CLBK”) has agreed to acquire Stewardship Financial Corporation and its wholly - owned subsidiary Atlantic Stewardship Bank (collectively, “Stewardship” or “SSFN ”), a relationship - based community bank, for $137 million in cash • In -
Slide 4: Key Transaction Terms
KEY TRANSACTION TERMS Consideration & Structure Closing / Other Pricing Multiples Purchase Price per Share: Transaction Value: Consideration Type: • $15.75 • $137 million • 100% Cash Board Representation : • Paul Van Ostenbridge, SSFN’s CEO, to join CLBK’s Board of Directors • Customary regulatory a
Slide 5: Pro Forma Financial Impact
PRO FORMA FINANCIAL IMPACT Key Financial Assumptions Key Financial Metrics Cost Savings: Transaction Expenses: Gross Credit Mark: Assumed Tax Rate: • 48% (80% realization in 2020) • $14.0 million • $10.6 million, 1.4% of gross loans • 28 %* Fiscal 2020 EPS Accretion: Fiscal 2021 EPS Accretion: TBV P
Slide 6: Overview of Stewardship Financial Corporation
OVERVIEW OF STEWARDSHIP FINANCIAL CORPORATION Branch Map Company Overview Headquarters: Midland Park, NJ Established: 1985 Branches: 12 Total Deposits: $783.6 Tang. Common Equity: $82.3 TCE / TA: 8.56% LTM Net Income: $7.9 LTM ROAA: 0.83% LTM ROAE: 10.08% LTM Efficiency Ratio: 69.76% NPA’s / Assets
Slide 7: Pro Forma Loan & Deposit Composition
Non - Interest - Bearing Demand 16% Interest - Bearing Demand 29% Money Market Accounts 6% Savings & Club Deposits 11% Certificates of Deposit 38% PRO FORMA LOAN & DEPOSIT COMPOSITION * Excludes purchase accounting adjustments . Source : Data as of 3 / 31 / 2019 ; yields and costs for the three mont
Slide 8: Pro Forma Franchise Overview
PRO FORMA FRANCHISE OVERVIEW Pro Forma Branch Map Headquarters: Fair Lawn, NJ Total Assets: $8.0 billion Gross Loans: $6.0 billion Total Deposits: $5.5 billion Pro Forma Summary Total Intangibles: $ 64.1 million Tang. Common Equity: $1.0 billion TCE / TA: 12.2% NPA’s / Assets (Excl. TDRs): 0.1% Note
Slide 9: Earnings Accretion Details
EARNINGS ACCRETION DETAILS ($ i n millions) FY 2020 FY 2021 Notes: CLBK Estimated Net Income $51.0 $55.1 2020 analyst consensus, adjusted for 28% tax rate , 2021 8% growth SSFN Estimated Net Income $7.4 $8.0 CLBK management Total Combined Net Income $58.4 $63.1 Transaction Adjustments: FY 2020 FY 20
Slide 10: Transaction Rationale
TRANSACTION RATIONALE • Immediate double digit earnings accretion with 16.2% in 2020 and 20.7% in 2021 • Acceptable TBV dilution, with less than a 5 - year TBV earnback period (crossover method) • Unique opportunity to acquire a high quality bank with a community - based strategy and exceptional cre
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