Columbia Financial, Inc. · NASDAQ:CLBK
Columbia Financial — Investor Presentation (December 2022)
27 slides from Columbia Financial's investor presentation, Dec 13, 2022
Slide 1: December 13, 2022
December 13, 2022 NASDAQ: CLBK
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 CERTAIN NON-GAAP INFORMATION THAT THE COMPANY’S MANAGEMENT USES IN ITS ANALYSIS OF THE COMPANY’S FINANCIAL
Slide 4: 2022 Year to Date Highlights
2022 YEAR TO DATE HIGHLIGHTS Our financial results remain strong and we continued to expand our franchise during 2022. Below are some highlights through September 30, 2022: Completed the acquisition of RSI Bank Reported net income of $64.3 million, or $0.88 per basic and diluted share Core ret
Slide 5: Franchise
FRANCHISE 2 Source: S&P Global, deposit data as of June 30, 2022 Number of Branches Total Deposits In Market ($000) Market Share (%) New Jersey Bank of America Corporation (NC) 1 198 79,650,717 17.22 The Toronto-Dominion Bank 2 226 62,219,625 13.45 Wells Fargo & Co. (CA) 3 235 48,856,057 10.56 The P
Slide 6: Ownership Structure as of 09/30/22
OWNERSHIP STRUCTURE AS OF 09/30/22 3 Actual 9/30/22 Ownership % MHC Shares 76,016,524 69.2% Minority Shares 33,891,419 30.8% Total Shares 109,907,943 100.0% Owns 69.2% Owns 30.8% Columbia Bank, MHC Columbia Financial, Inc. Columbia Bank Freehold Bank (1) Public Stockholders 1. Columbia Financial exp
Slide 7: Financial Condition
FINANCIAL CONDITION 4 Financial Condition ($ in thousands) 9/30/2022 09/30/2021 12/31/2021 12/31/2020 12/31/2019 12/31/2018 Total Assets $ 10,012,171 $ 9,200,120 $ 9,224,097 $ 8,798,536 $ 8,188,694 $ 6,691,618 Total cash and cash equivalents 102,048 298,488 70,963 422,957 75,547 42,201 Securities av
Slide 8: Financial Performance
FINANCIAL PERFORMANCE 5 Operating Data ($ in thousands) FOR THE NINE MONTHS ENDED SEPTEMBER 30, FOR THE YEARS ENDED DECEMBER 31, 2022 2021 2021 2020 2019 2018 Interest Income $ 221,738 $ 201,571 $ 270,150 $ 295,711 $ 261,083 $ 226,290 Interest Expense 23,354 29,399 37,016 74,138 88,712 62,256 Net In
Slide 9: Financial Performance
FINANCIAL PERFORMANCE 6 Ratios for the nine months ended September 30, 2022 are annualized. All other ratios are for the twelve months ended December 31. See the appendix for the reconciliation of GAAP to Non-GAAP financial measures. (1) Represents a Non-GAAP financial measure. (1) (1) (1)
Slide 10: Loan Portfolio
• 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 • The Company continues to add seasoned commercial lenders from regional and money center banks • As a community banking organization,
Slide 11: Asset Quality
Conservative credit culture Self-sourced lending Proactively sell problem loans Currently, there are no remaining COVID deferrals On January 1, 2022, the Company adopted ASU 2016-13. The adoption resulted in a $16.8 million decrease in our allowance for credit losses. 8 Data: S&P Global NC
Slide 12: Deposits
• Commercial deposit growth is sourced through our retail branch network in conjunction with the efforts of our business development and commercial lending teams • Consumer deposit growth is driven through our branch network leveraging our community involvement • The Company places a heavy emphasis
Slide 13: Mergers & Acquisitions
MERGERS & ACQUISITIONS Completed IPO 2018 Acquired Stewardship 2019 Acquired Roselle Acquired Freehold 2021 Acquired RSI 20222020 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% $136 million ca
Slide 14: Stock Performance
STOCK PERFORMANCE 11 Source: S&P Global with data measured from closing price on first day of trading through December 9, 2022
Slide 15: Technology & Digital Strategy Roadmap
TECHNOLOGY & DIGITAL STRATEGY ROADMAP 12
Slide 16: Consumer Banking – New Products & Capabilities
CONSUMER BANKING – NEW PRODUCTS & CAPABILITIES 16 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 Consumer
Slide 17: Capital Management
Management continues to focus on leveraging the capital raised in the IPO through a combination of organic growth, acquisitions and repurchases CLBK does not expect to pay cash dividends to shareholders while in the MHC structure as it is not a “grandfathered” MHC under the Dodd Frank Act and th
Slide 18: $10 Billion Bank
$10 BILLION BANK 15 Strategically, with our existing capital and potentially additional capital in the future, the Company always planned to grow past the $10 billion threshold Consolidated total assets exceeded $10 billion at September 30, 2022 The trigger for enhanced regulatory oversight is
Slide 19: Organizational Considerations
ORGANIZATIONAL CONSIDERATIONS 16 Management and the Board of Directors are aware of the opportunities afforded by a second step conversion We believe that being “well positioned” to execute a second step conversion is important Therefore, management is focused on: Building the growth engine
Slide 20: Environmental Social and Governance (ESG)
ENVIRONMENTAL SOCIAL AND GOVERNANCE (“ESG”) Environmental Sustainability has a Columbia Bank Foundation grant target allocation Partnered with WB Mason to expand the use of sustainable/green supplies Digital initiatives are reducing paper Hybrid work environment is reducing commuting Envir
Slide 21: Recent Executive Additions
RECENT EXECUTIVE ADDITIONS 18 Mr. Prabhu joined October 12, 2022. Mr. Prabhu has experience at leading institutions including Peoples United Bank N.A. He held the title of Chief Technology Officer where he led the IT strategy and technology transformation for People's United. Through his tenure and
Slide 22: Strategic Focus
STRATEGIC FOCUS 19 Continue our controlled organic growth strategy being mindful of economic conditions and evaluate acquisitions opportunistically Focus on controlling funding costs to enhance margin Emphasize our commercial lines of business to continue our migration toward a commercial bank
Slide 23: Questions and Answers
Columbia Ja QUESTIONS AND ANSWERS
Slide 24: Appendix: Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 25: Core Net Income
CORE NET INCOME Performance Ratios ($ in thousands) FOR THE NINE MONTHS ENDED SEPTEMBER 30, FOR THE YEARS ENDED DECEMBER 31, 2022 2021 2021 2020 2019 2018 Reconciliation to Core Net Income Net Income $64,282 $68,715 $92,049 $57,603 $54,717 $22,736 Less: Gain on securities transactions, net of tax (1
Slide 26: Core ROAA and ROATE
CORE ROAA AND ROATE Performance Ratios ($ in thousands) FOR THE NINE MONTHS ENDED SEPTEMBER 30, FOR THE YEARS ENDED DECEMBER 31, 2022 1 20211 2021 2020 2019 2018 Return on Average Assets 0.90% 1.02% 1.01% 0.66% 0.77% 0.36% Net Income $64,282 $68,715 $94,049 $57,603 $54,717 $22,736 Average Assets $9,
Slide 27: Efficiency Ratio Performance Ratios
Performance Ratios ($ in thousands) FOR THE NINE MONTHS ENDED SEPTEMBER 30, FOR THE YEARS ENDED DECEMBER 31, 2022 1 2021 1 2021 2020 2019 2018 Efficiency Ratio 58.89% 55.07% 57.26% 62.54% 63.09% 78.28% Net Interest Income $198,384 $172,172 $233,134 $221,573 $172,371 $164,034 Non-Interest Income 22,8
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