Columbia Financial, Inc. reported its financial results for the quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the third quarter of 2024, net income was $6.2 million, a decrease of 32.3% from $9.1 million in the same quarter of 2023. Net interest income also fell by 6.7% to $45.3 million, down from $48.5 million, primarily due to a substantial increase in total interest expense, which rose by 41.6% to $70.6 million from $49.9 million. The average yield on loans increased to 5.00%, up 53 basis points from the previous year, while the net interest margin decreased to 1.84%, down 22 basis points.

For the nine months ended September 30, 2024, net income was $9.6 million, a significant decline of 67.6% from $29.5 million in 2023. Net interest income for this period decreased by 18.1% to $131.6 million, attributed to a $79.4 million increase in interest expense on deposits and borrowings. Total interest expense for the nine months rose to $206.2 million, up 62.5% from $126.9 million in the prior year.

Columbia Financial's total assets increased by $40.9 million, or 0.4%, to $10.7 billion as of September 30, 2024. Total deposits rose by $111.5 million, or 1.4%, primarily due to increases in certificates of deposit and interest-bearing demand deposits. The company reported a total stockholders' equity of $1.1 billion, reflecting a 3.7% increase from the previous period.

The allowance for credit losses increased to $58.5 million, or 0.75% of total gross loans, up from $55.1 million (0.70%) at the end of 2023. Non-performing loans rose to $28.0 million, representing 0.36% of total gross loans, compared to $12.6 million (0.16%) at the end of the previous year.

Strategically, Columbia Financial completed the merger of Freehold Bank into Columbia Bank effective October 5, 2024, following its acquisition of Freehold Bancorp in December 2021. The company incurred merger-related expenses of $737,000 for the nine months ended September 30, 2024, compared to $88,000 in the same period of 2023.

Overall, Columbia Financial, Inc. faced challenges in profitability and rising expenses while continuing to expand its asset base and navigate strategic mergers.