On October 25, 2023, Columbia Financial Inc (CLBK, Financial) announced its financial results for the third quarter ended September 30, 2023. The company reported a net income of $9.1 million, or $0.09 per basic and diluted share, compared to a net income of $20.9 million, or $0.20 per basic share and $0.19 per diluted share, for the same quarter in 2022. The decrease in earnings was primarily due to lower net interest income, mainly due to an increase in interest expense and higher provision for credit losses.
Financial Performance
For the quarter ended September 30, 2023, the company reported core net income of $9.1 million, a decrease of $13.6 million, or 59.8%, compared to core net income of $22.7 million for the same quarter in 2022. For the nine months ended September 30, 2023, the company reported net income of $29.5 million, or $0.29 per basic and diluted share, as compared to net income of $64.3 million, or $0.61 per basic and diluted share, for the same period in 2022.
Company's Commentary
Thomas J. Kemly, President and Chief Executive Officer, commented on the company's performance. He said,
The Company's balance sheet, asset quality and capital remains strong. Net interest margin remains under pressure from rising funding costs due to the interest rate environment and intense deposit competition. We continue to manage operating expenses and have implemented various cost cutting strategies to mitigate the impact of the net interest margin compression."
Balance Sheet Summary
As of September 30, 2023, total assets decreased by $84.6 million, or 0.8%, to $10.3 billion from $10.4 billion at December 31, 2022. The decrease was primarily due to a decrease in debt securities available for sale of $310.3 million, partially offset by an increase in cash and cash equivalents of $25.3 million, an increase in loans receivable, net, of $161.7 million, an increase in Federal Home Loan Bank stock of $13.8 million and an increase in other assets of $28.6 million.
Asset Quality
The company's non-performing loans at September 30, 2023 totaled $15.2 million, or 0.19% of total gross loans, as compared to $6.7 million, or 0.09% of total gross loans, at December 31, 2022. The increase in non-performing loans was primarily attributable to an increase in non-performing commercial business loans of $5.8 million, an increase in non-performing one-to-four family real estate loans of $1.6 million, and an increase in non-performing commercial real estate loans of $1.2 million.
Explore the complete 8-K earnings release (here) from Columbia Financial Inc for further details.
