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EX - 99.1 2 exhibit9913q202193021.htm EX - 99.1 Columbia Financial , Inc. Announces Financial Results for the Third Quarter Ended September 30 , 2021 Fair Lawn , New Jersey ( October 27 , 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 September 30 , 2021 , as compared to net income of $ 15.1 million , or $ 0.14 per basic and diluted share , for the quarter ended September 30 , 2020. Earnings for the quarter ended September 30 , 2021 reflected higher net interest income , a lower provision for loan losses , higher non - interest income and lower non - interest expense , partially offset by higher income tax expense . For the nine months ended September 30 , 2021 , the Company reported net income of $ 68.7 million , or $ 0.66 per basic and diluted share , as compared to net income of $ 36.9 million , or $ 0.34 per basic and diluted share , for the nine months ended September 30 , 2020. Earnings for the nine months ended September 30 , 2021 reflected higher net interest income , a lower 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 third quarter results as our net income increased $ 5.9 million , or 39.1 % over the same 2020 period , and we increased our earnings per share by 43 % to $ 0.20 for the quarter ended September 30 , 2021 , from $ 0.14 for the same 2020 period . We successfully increased assets , loans and deposits during the quarter , while maintaining a strong balance sheet and solid capital levels . This year has been full of unique challenges , and we continue to evaluate prudent cost strategies as we navigate the current competitive employment market . We remain focused on enhancing digital technology to create efficiencies while enhancing the client experience . " Results of Operations for the Quarters Ended September 30 , 2021 and September 30 , 2020 Net income of $ 21.0 million was recorded for the quarter ended September 30 , 2021 , an increase of $ 5.9 million , or 39.1 % , compared to net income of $ 15.1 million for the quarter ended September 30 , 2020. The increase in net income was primarily attributable to a $ 1.0 million increase in net interest income , a $ 2.0 million decrease in provision for loan losses , a $ 1.0 million increase in non - interest income , and a $ 4.3 million decrease in non - interest expense , partially offset by a $ 2.5 million increase in income tax expense . Net interest income was $ 57.4 million for the quarter ended September 30 , 2021 , an increase of $ 1.0 million , or 1.8 % , from $ 56.3 million for the quarter ended September 30 , 2020. The increase in net interest income was primarily attributable to a $ 7.9 million decrease in interest expense , resulting from a decrease in both interest expense on deposits and interest expense on borrowings , partially offset by a $ 6.9 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 significantly reduced rates 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 September 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 $ 778,000 for the quarter ended September 30 , 2021 , compared to $ 380,000 for the quarter ended September 30 , 2020 . The average yield on loans for the quarter ended September 30 , 2021 decreased 19 basis points to 3.66 % , as compared to 3.85 % for the quarter ended September 30 , 2020 , while the average yield on securities for the quarter ended September 30 , 2021 decreased 45 basis points to 1.93 % , as compared to 2.38 % for the quarter ended September 30 , 2020. The average yield on other interest - earning assets for the quarter ended September 30 , 2021 decreased 72 basis points to 0.54 % , as compared to 1.26 % for the quarter ended September 30 , 2020 , as there were substantially higher average cash balances in low yielding bank accounts for the quarter ended September 30 , 2021 . Decreases in the average yields on these portfolios for the quarter ended September 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 .