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EX - 99.1 2 exhibit9911q202133121.htm EX - 99.1 Columbia Financial , Inc. Announces Financial Results for the First Quarter Ended March 31 , 2021 Fair Lawn , New Jersey ( April 28 , 2021 ) : Columbia Financial , Inc. ( the “ Company ” ) ( NASDAQ : CLBK ) , the mid - tier holding company for Columbia Bank ( the " Bank " ) , reported net income of $ 21.0 million , or $ 0.20 per basic and diluted share , for the quarter ended March 31 , 2021 , as compared to net income of $ 6.8 million , or $ 0.06 per basic and diluted share , for the quarter ended March 31 , 2020 . Earnings for the quarter ended March 31 , 2021 reflected higher net interest income , a reversal of provision for loan losses , higher non- interest income and lower non - interest expense , partially offset by higher income tax expense . Mr. Thomas J. Kemly , President and Chief Executive Officer commented : " We are pleased with our results as we increased revenue and managed expense levels during the first quarter . Our net income increased $ 14.3 million over our first quarter one year ago , as we successfully reduced our cost of funds and increased shareholder value through the continuation of our stock repurchase program . Asset quality remains strong despite continuing challenges posed by the COVID - 19 pandemic . We will strive to build on these positive trends thoughout the year . " Results of Operations for the Quarters Ended March 31 , 2021 and March 31 , 2020 Net income of $ 21.0 million was recorded for the quarter ended March 31 , 2021 , an increase of $ 14.3 million , or 211.1 % , compared to net income of $ 6.8 million for the quarter ended March 31 , 2020. The increase in net income was primarily attributable to a $ 6.0 million increase in net interest income , a $ 10.8 million decrease in provision for loan losses , a $ 2.2 million increase in non - interest income and an $ 805,000 decrease in non - interest expense , partially offset by a $ 5.6 million increase in income tax expense . Net interest income was $ 56.7 million for the quarter ended March 31 , 2021 , an increase of $ 6.0 million , or 11.9 % , from $ 50.7 million for the quarter ended March 31 , 2020. The increase in net interest income was primarily attributable to a $ 13.1 million decrease in interest expense , partially offset by a $ 7.1 million decrease in interest income . The decrease in interest expense on deposits was driven by both an inflow of lower cost deposits and the repricing of existing deposits at a significantly reduced rate as a result of a lower interest rate environment . The decrease in interest expense on borrowings was the result of decreases in both the average balance and average cost of borrowings . During the quarter ended March 31 , 2021 , $ 56.5 million of Federal Home Loan Bank of New York ( " FHLB " ) borrowings were prepaid , resulting in a $ 742,000 loss on early extinguishment of debt included in non - interest expense . The Company has significantly reduced the cost of borrowings over the last two quarters by prepaying high rate borrowings . The decrease in interest income for the quarter ended March 31 , 2021 was largely due to decreases in the average yields on interest - earning assets . Deferred fee acceleration of $ 2.1 million was recognized upon forgiveness of $ 109.1 million in SBA Paycheck Protection Program ( " PPP " ) loans for the quarter ended March 31 , 2021. Prepayment penalties , which are included in interest income on loans , totaled $ 968,000 for the quarter ended March 31 , 2021 , compared to $ 722,000 for the quarter ended March 31 , 2020 . The average yield on loans for the quarter ended March 31 , 2021 decreased 28 basis points to 3.87 % , as compared to 4.15 % for the quarter ended March 31 , 2020 , while the average yield on securities for the quarter ended March 31 , 2021 decreased 67 basis points to 2.05 % , as compared to 2.72 % for the quarter ended March 31 , 2020. The average yield on other interest - earning assets for the quarter ended March 31 , 2021 decreased 439 basis points to 0.67 % , as compared to 5.06 % for the quarter ended March 31 , 2020 , as there were substantially higher cash balances in low yielding bank accounts for the quarter ended March 31 , 2021. Decreases in the average yields on these portfolios for the quarter ended March 31 , 2021 were influenced by the lower interest rate environment as the Federal Reserve reduced interest rates by 150 basis points in March 2020 in response to the COVID - 19 pandemic . Total interest expense was $ 10.9 million for the quarter ended March 31 , 2021 , a decrease of $ 13.1 million , or 54.6 % , from $ 24.0 million for the quarter ended March 31 , 2020. The decrease in interest expense was primarily attributable to a 77 basis point decrease in the average cost of interest - bearing deposits which was partially offset by the impact of the increase in the