Columbia Financial, Inc. · NASDAQ:CLBK
Columbia Financial — Investor Presentation (February 2023)
27 slides from Columbia Financial's investor presentation, Feb 21, 2023
Slide 1: Columbia Financial, Inc.
Columbia Sa Financial, Inc. NASDAQ: CLBK February 2023
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 Highlights
2022 HIGHLIGHTS Our financial results remain strong and we continued to expand our franchise during 2022. Below are some highlights through December 31, 2022: Completed the acquisition and integration of RSI Bank Reported net income of $86.2 million, or $0.82 per basic and $0.81 per diluted shar
Slide 5: Franchise
FRANCHISE 2 Source: S&P Global, deposit data as of June 30, 2022 Number of Branches Total Deposits In Market ($000) Market Share (%) New Jersey Bank of America Corporation (NC) 1 198 79,650,717 17.22 The Toronto-Dominion Bank 2 226 62,219,625 13.45 Wells Fargo & Co. (CA) 3 235 48,856,057 10.56 The P
Slide 6: Ownership Structure as of 12/31/22
OWNERSHIP STRUCTURE AS OF 12/31/22 3 Actual 12/31/22 Ownership % MHC Shares 76,016,524 69.7% Minority Shares 32,953,952 30.3% Total Shares 108,970,476 100.0% Owns 69.7% Own 30.3% Columbia Bank, MHC Columbia Financial, Inc. Columbia Bank Freehold Bank (1) Public Stockholders 1. Columbia Financial exp
Slide 7: Financial Condition
FINANCIAL CONDITION 4 Financial Condition ($ in thousands) 12/31/2022 12/31/2021 12/31/2020 12/31/2019 12/31/2018 Total Assets $ 10,408,169 $ 9,224,097 $ 8,798,536 $ 8,188,694 $ 6,691,618 Total cash and cash equivalents 179,228 70,963 422,957 75,547 42,201 Securities available for sale, at fair valu
Slide 8: Financial Performance
FINANCIAL PERFORMANCE 5 Operating Data ($ in thousands) FOR THE YEARS ENDED DECEMBER 31, 2022 2021 2020 2019 2018 Interest Income $ 309,670 $ 270,150 $ 295,711 $ 261,083 $ 226,290 Interest Expense 42,893 37,016 74,138 88,712 62,256 Net Interest Income 266,777 233,134 221,573 172,371 164,034 Provisio
Slide 9: Financial Performance
FINANCIAL PERFORMANCE 6 See the appendix for the reconciliation of GAAP to Non-GAAP financial measures. (1) Represents a Non-GAAP financial measure.
Slide 10: Loan portfolio and loan types
• 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: Investor Owned Office Portfolio – 12/31/22
• The aggregate exposure is $382.0 million • There are no nonperforming loans • The largest loan is $18.8 million • The average loan size is $1.6 million • The weighted average loan to value is 55% • The weighted average debt service coverage is 2.0x 8 INVESTOR OWNED OFFICE PORTFOLIO – 12/31/22 (1)
Slide 12: 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. 9 Data: S&P Global NC
Slide 13: 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 14: 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 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 $10 billion at December 31, 2022 The trigger for enhanced regulatory oversight is
Slide 19: Organizational Considerations
ORGANIZATIONAL CONSIDERATIONS 16 Management and the Board of Directors are aware of the opportunities afforded by a second step conversion We believe that being “well positioned” to execute a second step conversion is important Therefore, management is focused on: Building the growth engine
Slide 20: Environmental, Social and Governance (ESG)
ENVIRONMENTAL SOCIAL AND GOVERNANCE (“ESG”) Environmental Sustainability has a Columbia Bank Foundation grant target allocation Partnered with W.B. Mason to expand the use of sustainable/green supplies Digital initiatives are reducing paper Hybrid work environment is reducing commuting Env
Slide 21: Recent Executive Additions
RECENT EXECUTIVE ADDITIONS 18 Mr. Prabhu joined October 12, 2022. Mr. Prabhu has experience at leading institutions including Peoples United Bank N.A. He held the title of Chief Technology Officer where he led the IT strategy and technology transformation for People's United. Through his tenure and
Slide 22: Strategic Focus
STRATEGIC FOCUS 19 Continue our controlled organic growth strategy being mindful of economic conditions and evaluate acquisitions opportunistically Focus on controlling funding costs to maintain margin Emphasize our commercial lines of business to continue our migration toward a commercial ban
Slide 23: Questions and Answers
Columbia Ja QUESTIONS AND ANSWERS
Slide 24: Appendix: Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 25: Core Net Income
CORE NET INCOME Performance Ratios ($ in thousands) FOR THE YEARS ENDED DECEMBER 31, 2022 2021 2020 2019 2018 Reconciliation to Core Net Income Net Income $86,173 $92,049 $57,603 $54,717 $22,736 Less: Gain on securities transactions, net of tax (156) (1,481) (279) (2,006) (79) Less: Insurance settle
Slide 26: Core ROAA and ROATE
CORE ROAA AND ROATE Performance Ratios ($ in thousands) FOR THE YEARS ENDED DECEMBER 31, 2022 2021 2020 2019 2018 Return on Average Assets 0.88% 1.01% 0.66% 0.77% 0.36% Net Income $86,173 $92,049 $57,603 $54,717 $22,736 Average Assets $9,741,822 $9,103,003 $8,744,973 $7,086,854 $6,319,249 Core Retur
Slide 27: Efficiency Ratio and Core Efficiency Ratio
Performance Ratios ($ in thousands) FOR THE YEARS ENDED DECEMBER 31, 2022 2021 2020 2019 2018 Efficiency Ratio 58.83% 57.26% 62.54% 63.09% 78.28% Net Interest Income $266,777 $233,134 $221,573 $172,371 $164,034 Non-Interest Income 30,400 38,831 31,270 31,636 21,688 Total Income 297,177 271,965 252,8
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