Columbia Financial (CLBK) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $4.5 million, up 172.8% year-over-year, driven by higher non-interest income and lower non-interest expense, partially offset by lower net interest income and higher credit loss provisions.

• Net income for the six months ended June 30, 2024, was $3.4 million, down 83.4% from the prior year, reflecting lower net interest income and higher credit loss provisions.

• Core net income for Q2 2024 was $5.3 million, down 54.9% year-over-year.

• Net interest margin improved 6 bps sequentially to 1.81% in Q2 2024, but declined 36 bps year-over-year due to higher funding costs.

• Asset quality and capital remain strong, with a stable, diversified deposit base and abundant liquidity.

Financial highlights

• Net interest income for Q2 2024 was $44.1 million, down 13.8% year-over-year, as interest expense rose faster than interest income.

• Non-interest income for Q2 2024 was $9.2 million, up from a loss of $0.5 million in Q2 2023, mainly due to reduced securities losses.

• Non-interest expense for Q2 2024 was $46.2 million, down $1.4 million year-over-year, reflecting workforce reductions.

• Provision for credit losses increased to $2.2 million in Q2 2024 and $7.5 million for the six months, reflecting higher net charge-offs and loss rates.

• Net charge-offs for the six months totaled $5.5 million, up from $0.6 million in the prior year period, mainly from commercial business loans.

Outlook and guidance

• Management paused share repurchases to retain capital and continues to focus on liquidity and capital strength.

• Management expects further net interest margin expansion and continued expense management to improve earnings.