Executive Summary

Q4 2024 GAAP results: net loss of $21.2M and diluted EPS of $(0.21), driven by a $37.9M pre-tax loss from a December balance sheet repositioning (sale of $352.3M AFS securities and prepayment of $170.0M borrowings); core net income was $11.4M, up 12.4% YoY .
Net interest margin expanded sequentially to 1.88% (Q4: +4bps vs Q3), as deposit competition eased and borrowing costs declined; total borrowings fell $448.1M while deposits rose $249.6M QoQ .
Asset quality remained adequate but mixed: NPLs increased to 0.28% of loans (from 0.16% YoY), ACL coverage rose to 276% of NPLs; Q4 net charge-offs were $1.4M .
Strategic catalyst: the Dec 5, 2024 repositioning is intended to improve 2025 earnings (~~+24% vs consensus), expand NIM (~~+15bps), and reduce reliance on wholesale funding, with a ~3.1-year payback .

What Went Well and What Went Wrong

What Went Well

Net interest margin resilience: NIM improved to 1.88% in Q4 (1.84% in Q3; 1.81% in Q2), aided by easing competitive pressures for deposits and lower costs on borrowings .
Funding and liquidity actions: borrowings decreased $448.1M in 2024 as deposits increased $249.6M; immediate access to ~$2.7B funding and additional unpledged collateral of ~$2.1B at year-end .
Strategic repositioning: sold low-yield securities and prepaid higher-cost borrowings to realign for higher-yield assets; management expects improved future earnings and margin (“should result in improved future earnings and net interest margin”) .

What Went Wrong

GAAP loss driven by non-interest income: Q4 non-interest income was $(23.7)M due to a $34.6M loss on securities; total income fell to $22.7M vs $56.6M YoY .
Credit costs and asset quality: provision rose to $2.9M; NPL ratio increased to 0.28% (from 0.16% YoY) with higher non-performing commercial business and one-to-four family loans .
Efficiency and profitability: GAAP efficiency ratio spiked to 205.2% in Q4 on depressed total income; core efficiency ratio improved but remains elevated at 73.7% .

Financial Results

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Net Interest Income ($M)	45.34	44.08	45.28	46.43
Non-Interest Income ($M)	11.25	9.18	8.98	(23.72)
Total Income ($M)	56.59	53.26	54.25	22.71
Provision for Credit Losses ($M)	1.16	2.19	4.10	2.88
Non-Interest Expense ($M)	48.00	46.25	42.83	46.60
Income Tax (Benefit)/Expense ($M)	0.87	0.28	1.13	(5.54)
Net Income (Loss) ($M)	6.57	4.54	6.19	(21.22)
Diluted EPS ($)	0.06	0.04	0.06	(0.21)
Net Interest Margin (%)	1.85	1.81	1.84	1.88
Interest Rate Spread (%)	1.21	1.15	1.18	1.23
Core Net Income ($M)	10.13	5.29	6.10	11.39

Deposit mix and cost

Category	Sep 30, 2024 Balance ($000)	Sep 30, 2024 Avg Rate (%)	Dec 31, 2024 Balance ($000)	Dec 31, 2024 Avg Rate (%)
Non-interest-bearing Demand	1,406,152	—	1,438,030	—
Interest-bearing Demand	1,980,298	2.41	2,021,312	2.19
Money Market	1,239,204	2.92	1,241,691	2.82
Savings & Club	649,858	0.79	652,501	0.75
Certificates of Deposit	2,682,547	4.45	2,742,615	4.24
Total Deposits	7,958,059	2.62	8,096,149	2.47

Loan portfolio composition (selected)

Category	Dec 31, 2023 ($000)	Sep 30, 2024 ($000)	Dec 31, 2024 ($000)
One-to-four Family	2,792,833	2,737,190	2,710,937
Multifamily	1,409,187	1,399,000	1,460,641
Commercial Real Estate	2,377,077	2,312,759	2,339,883
Construction	443,094	510,439	473,573
Commercial Business	533,041	586,447	622,000
Home Equity	266,632	261,041	259,009
Total Gross Loans	7,824,665	7,809,753	7,869,447

Key KPIs

KPI	Q2 2024	Q3 2024	Q4 2024
NPL / Gross Loans (%)	0.33	0.36	0.28
NPA / Total Assets (%)	0.25	0.28	0.22
ACL / NPL (%)	225.71	208.81	276.29
Net Charge-offs / Avg Loans (%)	0.03	0.14	0.07
Core Efficiency Ratio (%)	85.34	79.14	73.68

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Earnings	FY 2025	Not provided	Increase ~24% vs current analyst consensus (from repositioning)	Raised (target)
Net Interest Margin	FY 2025	Not provided	Expand ~15 bps vs current analyst consensus (from repositioning)	Raised (target)
Funding reliance	Ongoing	Not provided	Reduce reliance on wholesale funding	Improved (target)

Note: CLBK did not issue formal revenue, OpEx, tax rate, or segment-specific quantitative guidance; the company provided directional targets tied to the December balance sheet repositioning .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Funding costs & deposit competition	“Continuing pressure on funding costs”; margin up 6bps QoQ; stable, diversified deposits	“Continuing pressure on funding costs”; margin +9bps vs Q1; CDs priced competitively	Competition eased in Q4; deposit cost reduced; certificates cost down to 4.24%	Improving
Net interest margin trajectory	NIM 1.81%; sequential improvement	NIM 1.84%; sequential improvement	NIM 1.88%; sequential improvement	Improving
Credit quality and charge-offs	6M net charge-offs $5.5M, mostly commercial business; ACL 0.73%	9M net charge-offs $8.2M; NPLs +; healthcare borrower on non-accrual	Q4 net charge-offs $1.4M; NPLs at 0.28%; ACL coverage 276%	Mixed but covered
Strategic actions	Branch opening in Camden; expense management	Freehold Bank merger completed and systems conversion	Balance sheet repositioning to boost 2025 earnings/NIM	Positive strategic execution
Operating efficiency	Core efficiency 85.34%	Core efficiency 79.14%	Core efficiency 73.68%	Improving

Management Commentary

“Our fourth quarter repositioning strategy should result in improved future earnings and net interest margin. We will continue to examine and implement prudent strategies that we believe will build a foundation for the future success of the Company and increased profitability.” — Thomas J. Kemly, President & CEO .
“The third quarter earnings have been challenged by continuing pressure on funding costs… our net interest margin… and our expense management, we believe, will contribute to improved earnings on a go forward basis.” — Thomas J. Kemly, President & CEO .
Q4 press release emphasized easing competitive deposit pressures and lower borrowing costs supporting improved net interest income and margin .

Q&A Highlights

An earnings call transcript for CLBK’s Q4 2024 was not available in our document systems; no Q&A highlights could be retrieved. We relied on the 8‑K and press releases for management commentary .

Estimates Context

Wall Street consensus estimates (S&P Global) for Q4 2024 were unavailable at time of analysis due to data access limits; as a result, we cannot assess beat/miss versus consensus for EPS or revenue at the quarterly level.*
The company’s Dec 5, 2024 press release stated the repositioning is intended to increase 2025 earnings by ~24% and expand NIM by ~15bps relative to the then-current analyst consensus, indicating management’s expectation for forward estimate upward bias .

*Values retrieved from S&P Global were unavailable due to request limits.

Key Takeaways for Investors

The GAAP loss masks core earnings health: excluding repositioning-related losses, core net income rose to $11.4M (+12% YoY), with sequential NIM improvement and easing deposit costs; focus on core trajectory rather than one-time items .
Repositioning is a 2025 story: management is targeting materially higher earnings and NIM with reduced wholesale funding dependence; monitor deposit mix normalization, securities yields, and realized NIM uplift vs targets .
Funding dynamics improved: total deposits increased and costs edged down; borrowings fell substantially; this should support margin stabilization if rate cuts proceed and competitive pressure remains moderate .
Credit watch but covered: NPLs rose, but ACL coverage is robust (276% of NPLs); watch commercial business exposures and one-to-four family performance, alongside net charge-off trends .
Efficiency efforts continue: core efficiency ratio improved to 73.7%; sustained operating discipline will be necessary to translate margin gains into ROA/ROE normalization .
Capital remains strong: CET1 and total risk-based capital ratios remain comfortably above “well-capitalized” thresholds, supporting flexibility; buybacks paused to retain capital .
Trading lens: near-term volatility tied to interpretation of GAAP loss and repositioning costs; medium-term upside hinges on observable NIM expansion, deposit cost trajectory, and credit normalization driving estimate revisions upward .

Columbia Financial, Inc. (CLBK)·Q4 2024 Earnings Summary