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EX - 99.1 2 exhibit9912q202163021.htm EX - 99.1 Columbia Financial , Inc. Announces Financial Results for the Second Quarter Ended June 30 , 2021 Fair Lawn , New Jersey ( July 28 , 2021 ) : Columbia Financial , Inc. ( the “ Company ” ) ( NASDAQ : CLBK ) , the mid - tier holding company for Columbia Bank ( the " Bank " ) , reported net income of $ 26.7 million , or $ 0.26 per basic and diluted share , for the quarter ended June 30 , 2021 , as compared to net income of $ 15.1 million , or $ 0.14 per basic and diluted share , for the quarter ended June 30 , 2020. Earnings for the quarter ended June 30 , 2021 reflected higher net interest income , a reversal of provision for loan losses , and higher non - interest income , partially offset by higher income tax expense . For the six months ended June 30 , 2021 , the Company reported net income of $ 47.7 million , or $ 0.45 per basic and diluted share , as compared to net income of $ 21.9 million , or $ 0.20 per basic and diluted share , for the six months ended June 30 , 2020. Earnings for the six months ended June 30 , 2021 reflected higher net interest income , a reversal of provision for loan losses , and higher non - interest income , partially offset by higher income tax expense . Mr. Thomas J. Kemly , President and Chief Executive Officer commented : " We had strong growth in our net income which increased $ 11.6 million over the same 2020 period , as we successfully implemented strategies focused on increasing income while reducing our cost of funds and efficiently managing our operating expenses . This quarter included the sale of a significant portion of our lower yielding Paycheck Protection Program ( " PPP " ) loans to an experienced servicer , which resulted in a gain of $ 7.7 million and allows us to refocus our efforts on our core business lending activities . We are looking forward to the continuation of these successful strategies throughout the remainder of the year , as well as the opportunity to expand our franchise with the acquisition of Freehold Bank , which is anticipated to close during the fourth quarter of 2021. " Results of Operations for the Quarters Ended June 30 , 2021 and June 30 , 2020 Net income of $ 26.7 million was recorded for the quarter ended June 30 , 2021 , an increase of $ 11.6 million , or 76.8 % , compared to net income of $ 15.1 million for the quarter ended June 30 , 2020. The increase in net income was primarily attributable to a $ 2.2 million increase in net interest income , a $ 7.5 million decrease in provision for loan losses , and a $ 7.4 million increase in non - interest income , partially offset by a $ 5.3 million increase in income tax expense . Net interest income was $ 58.1 million for the quarter ended June 30 , 2021 , an increase of $ 2.2 million , or 4.0 % , from $ 55.9 million for the quarter ended June 30 , 2020. The increase in net interest income was primarily attributable to a $ 9.9 million decrease in interest expense , partially offset by a $ 7.7 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 . The decrease in interest income for the quarter ended June 30 , 2021 was largely due to decreases in the average yields on interest - earning assets . Prepayment penalties , which are included in interest income on loans , totaled $ 1.1 million for the quarter ended June 30 , 2021 , compared to $ 964,000 for the quarter ended June 30 , 2020 . The average yield on loans for the quarter ended June 30 , 2021 decreased 24 basis points to 3.72 % , as compared to 3.96 % for the quarter ended June 30 , 2020 , while the average yield on securities for the quarter ended June 30 , 2021 decreased 63 basis points to 1.93 % , as compared to 2.56 % for the quarter ended June 30 , 2020. The average yield on other interest - earning assets for the quarter ended June 30 , 2021 decreased 171 basis points to 1.24 % , as compared to 2.95 % for the quarter ended June 30 , 2020 , as there were substantially higher cash balances in low yielding bank accounts for the quarter ended June 30 , 2021. Decreases in the average yields on these portfolios for the quarter ended June 30 , 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 $ 9.8 million for the quarter ended June 30 , 2021 , a decrease of $ 9.9 million , or 50.3 % , from $ 19.7 million for the quarter ended June 30 , 2020. The decrease in interest expense was primarily attributable to a 58 basis point