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Press Release

Columbia Financial, Inc. Announces Financial Results for the Fourth Quarter and Year Ended December 31, 2018

Company Release - 1/31/2019 4:01 PM ET

FAIR LAWN, N.J., Jan. 31, 2019 /PRNewswire/ -- Columbia Financial, Inc. (the "Company") (NASDAQ: CLBK) reported net income of  $14.9 million, or $0.13 per basic and diluted share, for the quarter ended December 31, 2018, compared to net income of $3.7 million for the quarter ended December 31, 2017.  The December 31, 2018 quarterly earnings reflects higher net interest income driven primarily by growth within the residential and commercial loan portfolios and a decrease in income tax expense.  The December 31, 2017 quarterly earnings includes the impact from the revaluation of our gross deferred tax assets and liabilities as a result of the enactment of the Tax Cut and Jobs Act in December 2017, which decreased the federal corporate tax rate.

For the year ended December 31, 2018, the Company reported net income of $22.7 million, or $0.20 per basic and diluted share, compared to net income of $24.8 million for the year ended December 31, 2017.  The decrease in earnings year over year is primarily driven by the $34.8 million one-time expense related to the contribution of shares of the Company's common stock to the Columbia Bank Foundation in April 2018 in connection with the completion of the Company's minority stock offering.  Excluding this charitable contribution and other non-core items, core net income would have been $50.1 million for the year ended December 31, 2018, an increase of $20.9 million, or 71.7% as compared to core net income for the same period in 2017.

Mr. Thomas J. Kemly, President and Chief Executive Officer commented: "Our fourth quarter results demonstrate strong core earnings and fee income growth over prior periods and reflect the efforts of management to grow in this challenging interest rate environment.  We continue to stay focused on providing superior products and services as we enter new markets and bolstering existing customer relationships in order to generate long-term shareholder value.  I'm also proud that the Columbia Bank Foundation has been able to help 384 charities and communities throughout the markets we serve.  Our overall charitable giving through the foundation reached record levels in 2018 and we remain committed to continuing our charitable giving efforts in 2019."

Results of Operations for the Quarter Ended December 31, 2018 and December 31, 2017

Net income of $14.9 million was recorded for the quarter ended December 31, 2018, compared to net income of $3.7 million for the quarter ended December 31, 2017.  The increase of $11.2 million was primarily attributable to a $6.4 million increase in net interest income and the lower income tax expense, since the 2017 period included a $4.7 million charge due to the revaluation of  deferred tax assets and liabilities as noted above.  In addition, the provision for loan losses decreased $2.6 million, primarily as a result of improvements in credit metrics.

Net interest income was $43.4 million for the quarter ended December 31, 2018, an increase of $6.4 million, or 17.5%, from $36.9 million for the quarter ended December 31, 2017.  The increase in net interest income was attributable to a $12.6 million increase in interest and dividend income, which was partially offset by a $6.2 million increase in interest expense.  The increase in interest and dividend income for the quarter ended December 31, 2018 was largely due to an increase in the average balances of loans and securities.

The Company's net interest margin for the quarter ended December 31, 2018 decreased five basis points to 2.74% when compared to 2.79% for the quarter ended December 31, 2017.  The weighted average yield on interest-earning assets increased 20 basis points to 3.91% for the quarter ended December 31, 2018 compared with 3.71% for the quarter ended December 31, 2017.  The average cost of interest bearing liabilities increased 39 basis points to 1.52% for the quarter ended December 31, 2018 as compared to 1.13% for the quarter ended December 31, 2017.

The average yield on loans increased 24 basis points to 4.15% from 3.91%, while the yield on securities increased 24 basis points to 2.88% from 2.64%, for the quarter ended December 31, 2018 as compared to the quarter ended December 31, 2017.

The $4.2 million increase in interest expense on deposits was largely the result of a $140.2 million increase in the average balance of interest bearing deposits combined with a 42 basis point increase in the cost of deposits which was driven by higher market rates and a shift in the mix between core deposits and certificates of deposit.

The provision for loan losses was $777 thousand for the quarter ended December 31, 2018, a decrease of approximately $2.6 million from $3.4 million for the quarter ended December 31, 2017.  The decrease was primarily driven by a decline in non-performing loans and improvements in credit metrics.  A portion of the decline in non-performing loans resulted from the sale of $1.7 million of one-to-four family and fixed rate home equity loans during the quarter ended December 31, 2018.

Non-interest income was $6.4 million for the quarter ended December 31, 2018, an increase of $1.7 million or 35.3% from $4.7 million for the quarter ended December 31, 2017.  Gain on sale of loans totaled $602 thousand for the quarter ended December 31, 2018 as compared to no gains being recorded in the 2017 period.  Income from loan fees increased $417 thousand primarily related to swap fee income while income from bank-owned life insurance increased $253 thousand as a result of an additional $30.0 million purchase made in the third quarter of 2018.

Non-interest expense was $31.0 million for the quarter ended December 31, 2018, an increase of $5.4 million, or 21.1%, from $25.6 million for the quarter ended December 31, 2017.  The increase was driven primarily by higher compensation and employee benefit expense as a result of Columbia Bank's newly created employee stock ownership plan, the addition of staff and other performance-based compensation.

Income tax expense was $3.1 million for the quarter ended December 31, 2018 as compared to $9.0 million for the quarter ended December 31, 2017. The decrease is attributable to the effect of the reduction in the federal corporate income tax rate in 2018 coupled with the re-measurement of our net deferred tax assets resulting from the change in the tax rate which resulted in a charge of $4.7 million in the 2017 period.

Results of Operations for the Year Ended December 31, 2018 and December 31, 2017

For the year ended December 31, 2018, net income decreased $2.0 million to $22.7 million, compared to net income of $24.8 million for the year ended December 31, 2017.  The decrease was primarily attributable to the previously noted $34.8 million contribution of the Company's common stock to the Columbia Bank Foundation in April of 2018.  Excluding this contribution and other non-core items, core net income would have been $50.1 million for the year ended December 31, 2018 as compared to $29.2 million for the year ended December 31, 2017.

Net interest income was $164.0 million for the year ended December 31, 2018, an increase of $20.7 million, or 14.5% from $143.3 million for the year ended December 31, 2017.  The increase in net interest income was attributable to a $37.0 million increase in interest and dividend income which was partially offset by a $16.3 million increase in interest expense. The increase in interest and dividend income for the year ended December 31, 2018 was largely due to an increase in average loans and securities balances.

The Company's net interest margin for the year ended December 31, 2018 decreased eight basis points to 2.74%  compared with 2.82% for the year ended December 31, 2017.  The weighted average yield on interest-earning assets increased five basis points to 3.77% for the year ended December 31, 2018 compared with 3.72% for the year ended December 31, 2017.  The average cost of interest bearing-liabilities increased 22 basis points to 1.32% for the year ended December 31, 2018 compared with 1.10% for the year ended December 31, 2017.

The average yield on loans increased 12 basis points while the yield on securities increased 17 basis points for the year ended December 31, 2018 as compared with the year ended December 31, 2017.

For the year ended December 31, 2018, interest expense on deposits was $39.5 million, an increase of $12.5 million or 46.4% from $27.0 million for the year ended December 31, 2017, driven by a $337.1 million increase in the average balance of total interest-bearing deposits coupled with a 26 basis point increase in the cost of deposits.  Average borrowings increased by $203.0 million while the average cost of borrowings decreased by 15 basis points.

For the year ended December 31, 2018 the provision for loan losses was $6.7 million, a decrease of $3.1 million from $9.8 million for the year ended December 31, 2017.  The decrease was attributable to a continued decline in non-performing loans and improvements in credit metrics.  Contributing to the decline in non-performing loans was the sale of $1.7 million of one-to-four family and fixed rate home equity loans as previously discussed.

Non-interest income was $21.7 million for the year ended December 31, 2018, an increase of $4.9 million, or 29.0% from $16.8 million for the year ended December 31, 2017.  During 2017, we had $2.2 million of losses recorded on the sale of securities and net losses of $788 thousand recorded on the sale of loans.  In 2018, $116 thousand of gains were recorded on the sale of securities and $618 thousand of gains were recorded on the sale of loans in the secondary market.  The Company continues to designate loans to be sold in the secondary market and classifies these loans as held-for-sale in the consolidated statement of financial condition.

For the year ended December 31, 2018 non-interest expense was $145.4 million, an increase of $40.0 million, or 37.9%, from $105.4 million for the year ended December 31, 2017.  The increase was driven primarily by the above noted $34.8 million contribution of the Company's common stock to the Columbia Bank Foundation.  In addition, compensation and employee benefit expenses increased $6.3 million as a result of Columbia Bank's newly created employee stock ownership plan, the addition of staff and other performance-based compensation.

Income tax expense was $10.9 million for the year ended December 31, 2018 as compared to $20.1 million for the year ended December 31, 2017.  The decrease is attributable to the effect of the reduction in the federal corporate income tax rate in 2018 coupled with a one-time re-measurement of our net deferred tax assets resulting from the change in the tax rate which resulted in a charge of $4.7 million in the 2017 period.

Balance Sheet Summary

Total assets increased $925.1 million, or 16.0%, to $6.7 billion at December 31, 2018 from $5.8 billion at December 31, 2017.  The increase in total assets was primarily attributed to increases in loans receivable, net, of $516.4 million and securities available for sale of $324.2 million.  Growth was funded primarily by $492.4 million of net proceeds from the minority stock offering and increases in borrowings and deposits.

Securities available for sale increased $324.2 million to $1.0 billion at December 31, 2018 from $710.6 million at December 31, 2017.  Securities held to maturity increased $22.5 million to $262.1 million at December 31, 2018 from $239.6 million at December 31, 2017.  These increases were primarily the result of the deployment of proceeds from the minority stock offering into higher yielding assets.

Loans receivable, net increased $516.4 million to $4.9 billion at December 31, 2018 from $4.4 billion at December 31, 2017.  One-to-four family, multifamily and commercial real estate, construction loans and commercial business loans contributed to the growth by $215.2 million, $271.7 million, $27.8 million and $55.9 million, respectively.  Home equity loans and advances declined $54.4 million between December 31, 2018 and December 31, 2017.  At December 31, 2018, the Company had $8.1 million of one-to-four family loans  in the held-for-sale portfolio carried at fair value.

Bank-owned life insurance increased $34.0 million to $184.5 million at December 31, 2018 from $150.5 million at December 31, 2017.  The increase is primarily the result of the purchase of $30.0 million of additional bank-owned life insurance during the third quarter of 2018.

Total liabilities increased $425.1 million, or 8.0%, to $5.7 billion at December 31, 2018 from $5.3 billion at December 31, 2017.  The increase is primarily attributable to an increase in borrowings of $260.1 million and total deposits of $150.6 million.  In August 2018, the Company redeemed, in full, $51.5 million of junior subordinated debt securities.  The increase in total deposits is primarily attributed to higher certificate of deposit and non interest bearing transaction account balances.

Total stockholders' equity increased $500.0 million or 105.9%, to $972.1 million at December 31, 2018 from $472.1 million at December 31, 2017.  The net increase was primarily due to the completion of the minority stock offering, which resulted in net proceeds of $492.4 million, coupled with net income recorded for the year.

Asset Quality

The Company's total non-performing loans at December 31, 2018 totaled $2.8 million, or 0.06% of total loans receivable, as compared to $6.5 million, or 0.15% of total loans receivable, at December 31, 2017.  The Company held $92 thousand in foreclosed assets at December 31, 2018 compared to $959 thousand at December 31, 2017.  Non-performing assets as a percentage of total assets totaled 0.04% at December 31, 2018 as compared to 0.13% at December 31, 2017.

In the fourth quarter of 2018, the Company sold $1.7 million of non-performing one-to-four family and fixed rate home equity loans to an independent third party.  For the year ended December 31, 2018, net charge-offs totaled $2.5 million, as compared to $3.5 million for the year ended December 31, 2017.

The Company's allowance for loan losses was $62.3 million, or 1.26% of total loans at December 31, 2018, compared to $58.2 million, or 1.31% of total loans, at December 31, 2017.

Annual Meeting of Stockholders

On January 31, 2019, the Company also announced that its annual meeting of stockholders will be held on June 6, 2019.

About Columbia Financial, Inc.

The consolidated financial results include the accounts of Columbia Financial, Inc. its wholly-owned subsidiary Columbia Bank (the "Bank") and the Bank's wholly-owned subsidiaries.  Columbia Financial, Inc. is a Delaware corporation organized as Columbia Bank's mid-tier stock holding company.  Columbia Financial, Inc. is a majority-owned subsidiary of Columbia Bank, MHC.  Columbia Bank is a federally chartered savings bank headquartered in Fair Lawn, New Jersey.  The Bank offers traditional financial services to consumers and businesses in our market areas.  We currently operate 49 full-services banking offices.

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Such statements may be identified by words such as "believes," "will," "would," "expects," "projects," "may," "could," "developments," "strategic," "launching," "opportunities," "anticipates," "estimates," "intends," "plans," "targets" and similar expressions.  These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties.  Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors.  Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company's business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect borrowers' ability to service and repay the Company's loans; changes in the value of securities in the Company's investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; legislative changes and changes in government regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company's financial statements will become impaired; demand for loans in the Company's market area; the Company's ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy or its deployment of the proceeds raised in its minority public offering; and changes in assumptions used in making such forward-looking statements and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the "SEC"), which are available at the SEC's website, www.sec.gov.  Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Columbia Financial, Inc.'s actual results could differ materially from those discussed.  Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release.  The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

Explanation of Non-GAAP Financial Measures

Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). This press release also contains certain supplemental non-GAAP information that the Company's management uses in its analysis of the Company's financial results.  Specifically, the Company provides measures based on what it believes are its operating earnings on a consistent basis, and excludes material non-routine operating items which affect the GAAP reporting of results of operations. The Company's management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company's core financial results for the periods in question.

The Company also provides measurements and ratios based on tangible stockholders' equity. These measures are utilized by regulators and market analysts to evaluate a company's financial condition and, therefore, the Company's management believes that such information is useful to investors.

For a reconciliation of GAAP to Non-GAAP financial measures included in this press release, see "Reconciliation of GAAP to Non-GAAP Financial Measures" below.

               

 

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Statements of Financial Condition

(In thousands, except share and per share data)

(Unaudited)



December 31,


2018


2017

Assets




Cash and due from banks

$

42,065



$

65,334


Short-term investments

136



164


Total cash and cash equivalents

42,201



65,498






Securities available for sale, at fair value

1,034,758



710,570


Securities held to maturity, at amortized cost (fair value of $244,239 and $236,125 at December 31, 2018 and December 31, 2017, respectively)

262,143



239,618


Federal Home Loan Bank stock

58,938



44,664


Loans held-for-sale, at fair value

8,081








Loans receivable

4,979,182



4,458,648


Less: allowance for loan losses

62,342



58,178


Loans receivable, net

4,916,840



4,400,470






Accrued interest receivable

18,894



15,915


Real estate owned

92



959


Office properties and equipment, net

52,050



42,620


Bank-owned life insurance

184,488



150,521


Goodwill and intangible assets

6,085



5,997


Other assets

107,048



89,668


Total assets

$

6,691,618



$

5,766,500






Liabilities and Stockholders' Equity




Liabilities:




Deposits

$

4,413,873



$

4,263,315


Borrowings

1,189,180



929,057


Advance payments by borrowers for taxes and insurance

32,030



25,563


Accrued expenses and other liabilities

84,475



76,495


Total liabilities

5,719,558



5,294,430






Stockholders' equity:




Total stockholders' equity

972,060



472,070


Total liabilities and stockholders' equity

$

6,691,618



$

5,766,500


 

 

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(In thousands, except share and per share data)

(Unaudited)



Three Months Ended
December 31,


Year Ended December 31,


2018


2017


2018


2017

Interest and dividend income:








Loans receivable

$

51,580



$

43,043



$

189,869



$

168,523


Securities available for sale

7,351



5,074



25,338



17,931


Securities held to maturity

1,895



382



7,147



450


Federal funds and interest earning deposits

59



103



1,175



377


Federal Home Loan Bank stock dividends

900



567



2,761



1,993


Total interest and dividend income

61,785



49,169



226,290



189,274


Interest expense:








Deposits

11,810



7,631



39,523



26,999


Borrowings

6,600



4,609



22,733



18,966


Total interest expense

18,410



12,240



62,256



45,965










Net interest income

43,375



36,929



164,034



143,309










Provision for loan losses

777



3,400



6,677



9,826










Net interest income after provision for loan losses

42,598



33,529



157,357



133,483










Non-interest income:








Demand deposit account fees

1,067



960



3,987



3,778


Bank-owned life insurance

1,342



1,089



5,208



4,938


Title insurance fees

1,079



1,017



4,297



3,844


Loan fees and service charges

982



565



2,519



2,143


(Loss) Gain on securities transactions, net



(60)



116



(2,159)


Gain (Loss) on sale of loans receivable, net

602





618



(788)


(Loss) Gain on sale of  real estate owned

(11)





(56)



245


Other non-interest income

1,344



1,162



4,999



4,817


Total non-interest income

6,405



4,733



21,688



16,818










Non-interest expense:








Compensation and employee benefits

19,978



15,624



69,907



63,605


Occupancy

3,784



3,382



14,547



13,475


Federal deposit insurance premiums

489



414



1,893



1,654


Advertising

995



1,408



4,137



4,775


Professional fees

478



398



1,432



1,533


Data processing

656



595



2,600



2,309


Charitable contribution to foundation





34,767



3,509


Other non-interest expense

4,633



3,780



16,103



14,561


Total non-interest expense

31,013



25,601



145,386



105,421










Income before income tax expense

17,990



12,661



33,659



44,880










Income tax expense

3,123



8,983



10,923



20,123










Net income

$

14,867



$

3,678



$

22,736



$

24,757


Basic and diluted earnings per share

$

0.13



N/A


$

0.20



N/A

Weighted average shares outstanding

111,423,361



N/A


111,395,723



N/A


 

 

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Average Balances/Yields



For the Three Months Ended


December 31, 2018


December 31, 2017


Average
Balance


Interest
and Dividends


Yield / Cost


Average
Balance


Interest
and Dividends


Yield / Cost


(In thousands)




(In thousands)



Interest-earnings assets:












Loans

$

4,935,812



$

51,580



4.15

%


$

4,365,207



$

43,043



3.91

%

Securities

1,273,348



9,246



2.88

%


819,770



5,456



2.64

%

Other interest-earning assets

63,821



959



5.96

%


66,715



670



3.99

%

Total interest-earning assets

6,272,981



61,785



3.91

%


5,251,692



49,169



3.71

%

Non-interest-earning assets

339,118







288,532






Total assets

$

6,612,099







$

5,540,224


















Interest-bearing liabilities:












Interest-bearing demand

$

1,251,211



$

3,098



0.98

%


$

1,350,939



$

2,312



0.68

%

Money market accounts

270,981



449



0.66

%


271,638



196



0.29

%

Savings and club deposits

510,543



201



0.16

%


543,269



210



0.15

%

Certificates of deposit

1,662,619



8,062



1.92

%


1,389,306



4,913



1.40

%

Total interest-bearing deposits

3,695,354



11,810



1.27

%


3,555,152



7,631



0.85

%

FHLB advances

1,122,047



6,600



2.33

%


659,353



3,362



2.02

%

Junior subordinated debt





%


50,648



1,044



8.18

%

Other borrowings





%


21,957



203



3.67

%

Total borrowings

1,122,047



6,600



2.33

%


731,958



4,609



2.50

%

Total interest-bearing liabilities

4,817,401



$

18,410



1.52

%


4,287,110



$

12,240



1.13

%













Non-interest-bearing liabilities:












Non-interest-bearing deposits

727,308







673,093






Other non-interest-bearing liabilities

112,437







94,276






Total liabilities

5,657,146







5,054,479






Total equity

954,953







485,745






Total liabilities and equity

$

6,612,099







$

5,540,224


















Net interest income



$

43,375







$

36,929




Interest rate spread





2.39

%






2.58

%

Net interest-earning assets

$

1,455,580







$

964,582






Net interest margin





2.74

%






2.79

%

Ratio of interest-earning assets to interest-bearing liabilities

130.22

%






122.50

%





 


For the Year Ended


December 31, 2018


December 31, 2017


Average
Balance


Interest
and
Dividends


Yield / Cost


Average
Balance


Interest
and
Dividends


Yield / Cost


(In thousands)




(In thousands)



Interest-earnings assets:












Loans

$

4,711,915



$

189,869



4.03

%


$

4,312,887



$

168,523



3.91

%

Securities

1,171,617



32,485



2.77

%


707,427



18,381



2.60

%

Other interest-earning assets

111,218



3,936



3.54

%


67,578



2,370



3.51

%

Total interest-earning assets

5,994,750



$

226,290



3.77

%


5,087,892



$

189,274



3.72

%

Non-interest-earning assets

324,499







266,061






Total assets

$

6,319,249







$

5,353,953


















Interest-bearing liabilities:












Interest-bearing demand

$

1,323,766



$

11,395



0.86

%


$

1,305,412



$

8,048



0.62

%

Money market accounts

299,389



1,538



0.51

%


272,230



770



0.28

%

Savings and club deposits

628,746



993



0.16

%


545,640



841



0.15

%

Certificates of deposit

1,514,843



25,597



1.69

%


1,306,365



17,340



1.33

%

Total interest-bearing deposits

3,766,744



39,523



1.05

%


3,429,647



26,999



0.79

%

FHLB advances

912,032



19,263



2.11

%


654,561



13,408



2.05

%

Junior subordinated debt

31,422



3,467



11.03

%


50,628



4,177



8.25

%

Other borrowings

222



3



1.35

%


35,452



1,381



3.90

%

Total borrowings

943,676



22,733



2.41

%


740,641



18,966



2.56

%

Total interest-bearing liabilities

4,710,420



$

62,256



1.32

%


4,170,288



$

45,965



1.10

%













Non-interest-bearing liabilities:












Non-interest-bearing deposits

704,155







627,999






Other non-interest-bearing liabilities

112,785







94,754






Total liabilities

5,527,360







4,893,041






Total equity

791,889







460,912






Total liabilities and equity

$

6,319,249







$

5,353,953


















Net interest income



$

164,034







$

143,309




Interest rate spread





2.45

%






2.62

%

Net interest-earning assets

$

1,284,330







$

917,604






Net interest margin





2.74

%






2.82

%

Ratio of interest-earning assets to interest-bearing liabilities

127.27

%






122.00%





The following table summarizes the components of net interest rate spread and margin for the previous five quarters.


Average Yields/Costs by Quarter


December 31, 2018


September 30, 2018


June 30, 2018


March 31, 2018


December 31, 2017

Yield on interest earning assets:










Loans

4.15

%


4.01



3.98



3.96



3.91

%

Investment securities

2.88

%


2.75



2.70



2.74



2.64

%

Other interest-earning assets

5.96

%


4.45



2.99



2.77



3.99

%

Total interest-earning assets

3.91

%


3.76



3.70



3.71



3.71

%











Cost of interest bearing liabilities:










Total interest-bearing deposits

1.27

%


1.16



0.94



0.85



0.85

%

Total borrowings

2.33

%


2.52



2.59



2.22



2.50

%

Total interest-earning liabilities

1.52

%


1.47



1.20



1.09



1.13

%











Interest rate spread

2.39

%


2.29



2.50



2.62



2.58

%

Net interest margin

2.74

%


2.65



2.76



2.80



2.79

%











Ratio of interest-earning assets to interest bearing liabilities

130.22

%


131.35



127.44



119.93



122.50

%

 

 

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Selected Financial Highlights











For the Three Months
Ended December 31,


For the Year Ended
December 31,


2018


2017


2018


2017

SELECTED FINANCIAL RATIOS (1):








Return on average assets

0.89

%


0.26

%


0.36

%


0.46

%

Core return on average assets

0.89

%


0.27

%


0.79

%


0.55

%

Return on average equity

6.18

%


3.00

%


2.87

%


5.37

%

Core return on average equity

6.18

%


3.04

%


6.12

%


6.27

%

Interest rate spread

2.39

%


2.58

%


2.45

%


2.62

%

Net interest margin

2.74

%


2.79

%


2.74

%


2.82

%

Non-interest expense to average assets

1.86

%


1.83

%


2.30

%


1.97

%

Efficiency ratio

62.30

%


61.45

%


78.28

%


65.84

%

Core efficiency ratio

62.30

%


61.54

%


59.52

%


64.51

%

Average interest-earning assets to average interest-bearing liabilities

130.22

%


122.50

%


127.27

%


122.00

%









(1) Ratios are annualized for the three month periods presented.





 

 






December 31,

CAPITAL RATIOS:

2018


2017

Company:




Total capital (to risk-weighted assets)

23.45

%


15.01

%

Tier 1 capital (to risk-weighted assets)

22.19

%


13.76

%

Common equity tier 1 capital (to risk-weighted assets)

22.19

%


12.55

%

Tier 1 capital (to adjusted total assets)

15.75

%


10.54

%





Columbia Bank:




Total capital (to risk-weighted assets)

19.04

%


14.90

%

Tier 1 capital (to risk-weighted assets)

17.79

%


13.64

%

Common equity tier 1 capital (to risk-weighted assets)

17.79

%


13.64

%

Tier 1 capital (to adjusted total assets)

12.60

%


10.44

%

 

ASSET QUALITY:




(Dollars in thousands)

December 31,


2018


2017





Non-accrual loans

$

2,789



$

6,525


90+ and still accruing




Non-performing loans

2,789



6,525


Foreclosed assets

92



959


Total Non-performing assets

$

2,881



$

7,484






Non-performing loans to total loans receivable

0.06

%


0.15

%

Non-performing assets to total assets

0.04

%


0.13

%

Allowance for loan losses

$

62,342



$

58,178


Allowance for loan losses to total non-performing loans

2,235.28

%


891.62

%

Allowance for loan losses to gross loans

1.26

%


1.31

%

 

LOAN DATA:




(In thousands)

December 31,


2018


2017

Real estate loans:




One-to-four family

$

1,830,186



$

1,615,000


Multifamily and commercial

2,142,154



1,870,475


Construction

261,473



233,652


Commercial business loans

333,876



277,970


Consumer loans:




Home equity loans and advances

393,492



447,920


Other consumer loans

1,108



998


Total gross loans

4,962,289



4,446,015


Net deferred loan costs, fees and purchased premiums and discounts

16,893



12,633


Allowance for loan losses

(62,342)



(58,178)


Loans receivable, net

$

4,916,840



$

4,400,470


 

Reconciliation of GAAP to Non-GAAP Financial Measures










Book and Tangible Book Value per Share


(Dollars in thousands)



At December 31,






2018


2017











Total stockholders' equity



$

972,060



$

472,070




Less: goodwill



5,716



5,716




Total tangible stockholders' equity



$

966,344



$

466,354












Shares outstanding



115,889,175














Book value per share



$

8.39



N/A



Tangible book value per share



$

8.34



N/A




 

Reconciliation to Core Net Income








(In thousands)

Three months ended December 31,

Year ended December 31,


2018


2017


2018


2017









Net income

$

14,867



$

3,678



$

22,736



$

24,757


Add: contribution to charitable foundation net of tax benefit





27,466



2,744


Add: losses (gains) on sale of securities, net of tax



47



(79)



1,689


Core net income

$

14,867



$

3,725



$

50,123



$

29,190


















Return on Average Assets

(Dollars in thousands)

Three months ended December 31,

Year ended December 31,


2018


2017


2018


2017









Net income

$

14,867



$

3,678



$

22,736



$

24,757










Average assets

$

6,612,099



$

5,540,224



$

6,319,249



$

5,353,953










Return on average assets

0.89

%


0.26

%


0.36

%


0.46

%









Core net income

$

14,867



$

3,725



$

50,123



$

29,190










Core return on average assets

0.89

%


0.27

%


0.79

%


0.55

%

















Return on Average Equity

(Dollars in thousands)

Three months ended December 31,

Year ended December 31,


2018


2017


2018


2017









Total average stockholders' equity

$

954,953



$

485,745



$

791,889



$

460,912


Add: contribution to charitable foundation net of tax benefit





27,466



2,744


Add: losses (gains) on sale of securities, net of tax



47



(79)



1,689


Core average stockholder's equity

$

954,953



$

485,792



$

819,276



$

465,345










Return on average equity

6.18

%


3.00

%


2.87

%


5.37

%









Core return on average equity

6.18

%


3.04

%


6.12

%


6.27

%


















 

Efficiency Ratios

(Dollars in thousands)

Three months ended December 31,

Year ended December 31,


2018


2017


2018


2017









Net interest income

$

43,375



$

36,929



$

164,034



$

143,309


Non-interest income

6,405



4,733



21,688



16,818


Total revenue

$

49,780



$

41,662



$

185,722



$

160,127










Non-interest expense

$

31,013



$

25,601



$

145,386



$

105,421










Efficiency ratio

62.30

%


61.45

%


78.28

%


65.84

%









Non-interest income

$

6,405



$

4,733



$

21,688



$

16,818


Add: losses (gains) on sale of securities



(60)



116



(2,159)


Core non-interest income

$

6,405



$

4,673



$

21,804



$

14,659










Non-interest expense

$

31,013



$

25,601



$

145,386



$

105,421


Less: contribution to charitable foundation





34,767



3,509


Core non-interest expense

$

31,013



$

25,601



$

110,619



$

101,912










Core efficiency ratio

62.30

%


61.54

%


59.52

%


64.51

%

 

Cision View original content:http://www.prnewswire.com/news-releases/columbia-financial-inc-announces-financial-results-for-the-fourth-quarter-and-year-ended-december-31-2018-300787827.html

SOURCE Columbia Financial, Inc.