|
Delaware
|
| |
6035
|
| |
22-3504946
|
|
|
State or other jurisdiction of
incorporation or organization |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(IRS Employer Identification No.)
|
|
|
19-01 Route 208 North
Fair Lawn, New Jersey 07410 (800) 522-4167 |
|
|
(Address, including zip code, and telephone number,
including area code, of registrant’s principal executive offices) |
|
|
Thomas J. Kemly
President and Chief Executive Officer Columbia Financial, Inc. 19-01 Route 208 North Fair Lawn, New Jersey 07410 (800) 522-4167 |
|
|
(Name, address, including zip code, and telephone number,
including area code, of agent for service) |
|
|
Christina M. Gattuso, Esq.
|
| |
P. Ross Bevan, Esq.
|
|
|
Stephen F. Donahoe, Esq.
|
| |
Silver, Freedman, Taff & Tiernan LLP
|
|
|
Kilpatrick Townsend & Stockton LLP
|
| |
3299 K Street, NW, Suite 100
|
|
|
607 14th Street, NW, Suite 900
|
| |
Washington, DC 20007
|
|
|
Washington, DC 20005
|
| |
(202) 295-4500
|
|
|
(202) 508-5800
|
| | | |
| Large accelerated filer ☐ | | | Accelerated filer ☐ | |
| Non-accelerated filer ☒ (Do not check if a smaller reporting company) | | | Smaller reporting company ☐ | |
| | | | Emerging growth company ☒ | |
Calculation of Registration Fee
|
| ||||||||||||||||||||||||
Title of each class of securities to be registered
|
| |
Amount to be
registered |
| |
Proposed
maximum offering price per unit |
| |
Proposed
maximum aggregate offering price(1) |
| |
Amount of
registration fee |
| ||||||||||||
Common Stock, $0.01 par value
|
| | | | 53,309,020 | | | | | $ | 10.00 | | | | | $ | 533,090,200 | | | | | $ | 66,370(2) | | |
Participation interests
|
| | | | 3,836,750(3) | | | | | $ | 10.00 | | | |
(4)
|
| |
(4)
|
| ||||||
|
| | |
Minimum
|
| |
Midpoint
|
| |
Maximum
|
| |
Adjusted Maximum
|
| ||||||||||||
Number of shares
|
| | | | 32,028,350 | | | | | | 37,680,412 | | | | | | 43,332,474 | | | | | | 49,832,345 | | |
Gross offering proceeds
|
| | | $ | 320,283,500 | | | | | $ | 376,804,120 | | | | | $ | 433,324,740 | | | | | $ | 498,323,450 | | |
Estimated offering expenses (excluding selling agent fees and expenses)
|
| | | $ | 3,081,245 | | | | | $ | 3,081,245 | | | | | $ | 3,081,245 | | | | | $ | 3,081,245 | | |
Estimated selling agent fees and expenses(1)
|
| | | $ | 1,593,678 | | | | | $ | 1,850,518 | | | | | $ | 2,107,358 | | | | | $ | 2,402,724 | | |
Estimated net proceeds
|
| | | $ | 315,608,577 | | | | | $ | 371,872,357 | | | | | $ | 428,136,137 | | | | | $ | 492,839,481 | | |
Estimated net proceeds per share
|
| | | $ | 9.85 | | | | | $ | 9.87 | | | | | $ | 9.88 | | | | | $ | 9.89 | | |
| | |
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| | | | 142 | |
| | | | F-1 |
Company Name and Ticker Symbol
|
| |
Headquarters
|
| |
Total Assets
|
| |||
| | | | | |
(in millions)
|
| |||
Beneficial Bancorp, Inc. (BNCL)
|
| | Philadelphia, PA | | | | $ | 5,799 | | |
Dime Community Bancshares, Inc. (DCOM)
|
| | Brooklyn, NY | | | | | 6,403 | | |
Kearny Financial Corp. (KRNY)
|
| | Fairfield, NJ | | | | | 4,844 | | |
Northfield Bancorp, Inc. (NFBK)
|
| | Woodbridge, NJ | | | | | 3,991 | | |
OceanFirst Financial Corp. (OCFC)
|
| | Toms River, NJ | | | | | 5,416 | | |
Oritani Financial Corp. (ORIT)
|
| |
Washington Township, NJ
|
| | | | 4,122 | | |
TrustCo Bank Corp. NY (TRST)
|
| | Glenville, NY | | | | | 4,908 | | |
First Connecticut Bancorp, Inc. (FBNK)
|
| | Farmington, CT | | | | | 3,050 | | |
Meridian Bancorp, Inc. (EBSB)
|
| | Peabody, MA | | | | | 5,299 | | |
United Financial Bancorp, Inc. (UBNK)
|
| | Glastonbury, CT | | | | | 7,114 | | |
| | |
Non-Fully Converted
Price to Core Earnings Multiple(1) |
| |
Non-Fully Converted
Price to Book Value Ratio |
| |
Non-Fully Converted
Price to Tangible Book Value Ratio |
| |||||||||
Columbia Financial (pro forma): | | | | | | | | | | | | | | | | | | | |
Minimum
|
| | | | 22.71x | | | | | | 99.11% | | | | | | 99.90% | | |
Midpoint
|
| | | | 26.71 | | | | | | 109.41 | | | | | | 110.13 | | |
Maximum
|
| | | | 30.70 | | | | | | 118.34 | | | | | | 119.19 | | |
Adjusted maximum
|
| | | | 35.29 | | | | | | 127.55 | | | | | | 128.37 | | |
Peer group companies as of
February 2, 2018: |
| | | | | | | | | | | | | | | | | | |
Average
|
| | | | 22.15x | | | | | | 137.58% | | | | | | 151.61% | | |
Median
|
| | | | 20.98 | | | | | | 133.16 | | | | | | 143.53 | | |
| | |
Fully Converted
Price to Core Earnings Multiple(1) |
| |
Fully Converted
Price to Book Value Ratio |
| |
Fully Converted
Price to Tangible Book Value Ratio |
| |||||||||
Columbia Financial (pro forma): | | | | | | | | | | | | | | | | | | | |
Minimum
|
| | | | 21.86x | | | | | | 67.80% | | | | | | 68.17% | | |
Midpoint
|
| | | | 25.55 | | | | | | 72.46 | | | | | | 72.83 | | |
Maximum
|
| | | | 29.18 | | | | | | 76.39 | | | | | | 76.69 | | |
Adjusted maximum
|
| | | | 33.30 | | | | | | 80.13 | | | | | | 80.45 | | |
Peer group companies as of February 2, 2018: | | | | | | | | | | | | | | | | | | | |
Average
|
| | | | 22.15x | | | | | | 137.58% | | | | | | 151.61% | | |
Median
|
| | | | 20.98 | | | | | | 133.16 | | | | | | 143.53 | | |
(In thousands)
|
| |
32,028,350
Shares at $10.00 per Share |
| |
43,332,474
Shares at $10.00 per Share |
| ||||||
Offering Proceeds
|
| | | $ | 320,284 | | | | | $ | 433,325 | | |
Less: offering expenses
|
| | | | (4,675) | | | | | | (5,189) | | |
Net offering proceeds
|
| | | | 315,609 | | | | | | 428,136 | | |
Less: | | | | | | | | | | | | | |
Proceeds contributed to Columbia Bank
|
| | | | (157,805) | | | | | | (214,068) | | |
Proceeds used to redeem trust preferred securities
|
| | | | (50,000) | | | | | | (50,000) | | |
Proceeds used for loan to employee stock ownership plan
|
| | | | (29,198) | | | | | | (39,503) | | |
Proceeds remaining at Columbia Financial
|
| | | $ | 78,606 | | | | | $ | 124,565 | | |
|
| | |
Number of Shares to
be Granted or Purchased |
| | | | | | | | | | | | | | | | | | | |||||||||
| | |
At Maximum
of Offering Range |
| |
As a
% of Common Stock Sold in the Offering(3) |
| |
As a
% of Total Shares to be Outstanding |
| |
Dilution
Resulting from the Issuance of Shares for Stock Benefit Plans |
| |
Total
Estimated Value at Maximum of Offering Range |
| |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
(in thousands)
|
| |||
Employee stock ownership plan(1)
|
| | | | 3,950,309 | | | | | | 8.52% | | | | | | 3.92% | | | | | | —% | | | | | $ | 39,503 | | |
Restricted stock awards(1)
|
| | | | 1,975,154 | | | | | | 4.26 | | | | | | 1.96 | | | | | | 1.92 | | | | | | 19,752 | | |
Stock options(2)
|
| | | | 4,937,886 | | | | | | 10.65 | | | | | | 4.90 | | | | | | 4.67 | | | | | | 13,826 | | |
Total
|
| | | | 10,863,349 | | | | | | 23.43% | | | | | | 10.78% | | | | | | 5.63% | | | | | $ | 73,081 | | |
|
| | |
At September 30,
|
| |||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
2017
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013(1)
|
| |||||||||||||||
Financial Condition Data: | | | | | | | |||||||||||||||||||||||||
Total assets
|
| | | $ | 5,429,328 | | | | | $ | 5,037,412 | | | | | $ | 4,771,153 | | | | | $ | 4,612,645 | | | | | $ | 4,500,199 | | |
Total cash and cash equivalents
|
| | | | 100,975 | | | | | | 45,694 | | | | | | 43,178 | | | | | | 41,652 | | | | | | 63,445 | | |
Investment securities available-for-sale
|
| | | | 557,176 | | | | | | 771,779 | | | | | | 653,283 | | | | | | 777,537 | | | | | | 845,473 | | |
Investment securities held-to- maturity
|
| | | | 132,939 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Loans receivable, net
|
| | | | 4,307,623 | | | | | | 3,932,242 | | | | | | 3,764,220 | | | | | | 3,489,895 | | | | | | 3,304,783 | | |
Deposits
|
| | | | 4,123,428 | | | | | | 3,822,815 | | | | | | 3,572,624 | | | | | | 3,386,714 | | | | | | 3,268,554 | | |
Borrowings
|
| | | | 733,043 | | | | | | 681,990 | | | | | | 702,536 | | | | | | 775,283 | | | | | | 778,429 | | |
Stockholder’s equity
|
| | | | 475,914 | | | | | | 439,664 | | | | | | 417,998 | | | | | | 391,071 | | | | | | 379,428 | | |
Operating Data: | | | | | | | |||||||||||||||||||||||||
Interest and dividend income
|
| | | $ | 184,226 | | | | | $ | 168,977 | | | | | $ | 163,165 | | | | | $ | 157,250 | | | | | $ | 163,271 | | |
Interest expense
|
| | | | 44,446 | | | | | | 43,962 | | | | | | 45,744 | | | | | | 47,568 | | | | | | 55,215 | | |
Net interest income
|
| | | | 139,780 | | | | | | 125,015 | | | | | | 117,421 | | | | | | 109,682 | | | | | | 108,056 | | |
Provision for loan losses
|
| | | | 6,426 | | | | | | 417 | | | | | | 5,099 | | | | | | 8,741 | | | | | | 23,264 | | |
Net interest income after provision for loan losses
|
| | | | 133,354 | | | | | | 124,598 | | | | | | 112,322 | | | | | | 100,941 | | | | | | 84,792 | | |
Non-interest income
|
| | | | 17,172 | | | | | | 18,927 | | | | | | 21,066 | | | | | | 15,578 | | | | | | 27,113 | | |
Non-interest expense
|
| | | | 103,446 | | | | | | 93,769 | | | | | | 88,699 | | | | | | 82,687 | | | | | | 160,295 | | |
Income (loss) before income tax expense
|
| | | | 47,080 | | | | | | 49,756 | | | | | | 44,689 | | | | | | 33,832 | | | | | | (48,390) | | |
Income tax expense (benefit)
|
| | | | 16,008 | | | | | | 16,803 | | | | | | 14,821 | | | | | | 11,255 | | | | | | (17,849) | | |
Net income (loss)
|
| | | $ | 31,072 | | | | | $ | 32,953 | | | | | $ | 29,868 | | | | | $ | 22,577 | | | | | $ | (30,541) | | |
|
| | |
At and for the Year Ended September 30,
|
| |||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |||||||||||||||
Performance Ratios: | | | | | | | |||||||||||||||||||||||||
Return (loss) on average assets
|
| | | | 0.60% | | | | | | 0.67% | | | | | | 0.63% | | | | | | 0.50% | | | | | | (0.69)% | | |
Return (loss) on average equity
|
| | | | 6.86 | | | | | | 7.52 | | | | | | 7.18 | | | | | | 5.72 | | | | | | (8.12) | | |
Interest rate spread(1)
|
| | | | 2.60 | | | | | | 2.48 | | | | | | 2.41 | | | | | | 2.32 | | | | | | 2.28 | | |
Net interest margin(2)
|
| | | | 2.80 | | | | | | 2.69 | | | | | | 2.61 | | | | | | 2.53 | | | | | | 2.53 | | |
Non-interest expense to average assets
|
| | | | 1.98 | | | | | | 1.91 | | | | | | 1.87 | | | | | | 1.82 | | | | | | 3.61 | | |
Efficiency ratio
|
| | | | 65.91 | | | | | | 65.14 | | | | | | 64.05 | | | | | | 66.01 | | | | | | 118.59 | | |
Core efficiency ratio(3)
|
| | | | 62.94 | | | | | | 65.06 | | | | | | 64.70 | | | | | | 65.05 | | | | | | 67.85 | | |
Average interest-earning assets to average interest-bearing liabilities
|
| | | | 122.16 | | | | | | 121.32 | | | | | | 119.47 | | | | | | 119.07 | | | | | | 119.48 | | |
Average equity to average assets
|
| | | | 8.68 | | | | | | 8.92 | | | | | | 8.76 | | | | | | 8.67 | | | | | | 8.47 | | |
Capital Ratios for Columbia Financial(4): | | | | | | | |||||||||||||||||||||||||
Total capital (to risk-weighted assets)
|
| | | | 15.11 | | | | | | 15.93 | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Tier 1 capital (to risk-weighted assets)
|
| | | | 13.85 | | | | | | 14.68 | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Common equity Tier 1 capital (to risk-weighted assets)
|
| | | | 12.60 | | | | | | 13.29 | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Tier 1 capital (to adjusted total assets)
|
| | | | 10.59 | | | | | | 10.70 | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Capital Ratios for Columbia Bank: | | | | | | | |||||||||||||||||||||||||
Total capital (to risk-weighted assets)
|
| | | | 14.95 | | | | | | 15.67 | | | | | | 15.53 | | | | | | 16.15 | | | | | | 15.97 | | |
Tier 1 capital (to risk-weighted assets)
|
| | | | 13.69 | | | | | | 14.42 | | | | | | 14.27 | | | | | | 14.90 | | | | | | 14.71 | | |
Common equity Tier 1 capital (to risk-weighted assets)
|
| | | | 13.69 | | | | | | 14.42 | | | | | | 14.27 | | | | | | 14.90 | | | | | | 14.71 | | |
Tier 1 capital (to adjusted total assets)
|
| | | | 10.47 | | | | | | 10.56 | | | | | | 10.29 | | | | | | 10.15 | | | | | | 10.04 | | |
Asset Quality Ratios: | | | | | | | |||||||||||||||||||||||||
Allowance for loan losses as a percent of total loans
|
| | | | 1.26 | | | | | | 1.30 | | | | | | 1.49 | | | | | | 1.63 | | | | | | 1.82 | | |
Allowance for loan losses as a percent of non-performing loans
|
| | | | 854.31 | | | | | | 424.44 | | | | | | 268.70 | | | | | | 110.84 | | | | | | 82.87 | | |
Net charge-offs to average outstanding loans during the period
|
| | | | 0.09 | | | | | | 0.14 | | | | | | 0.16 | | | | | | 0.36 | | | | | | 0.38 | | |
Non-performing loans as a percent of total loans
|
| | | | 0.15 | | | | | | 0.31 | | | | | | 0.56 | | | | | | 1.47 | | | | | | 2.20 | | |
Non-performing assets as a percent of total assets
|
| | | | 0.13 | | | | | | 0.27 | | | | | | 0.51 | | | | | | 1.19 | | | | | | 1.68 | | |
Other Data: | | | | | | | |||||||||||||||||||||||||
Number of offices
|
| | | | 47(5) | | | | | | 45 | | | | | | 44 | | | | | | 44 | | | | | | 44 | | |
| | |
For the Year Ended September 30,
|
| |||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |||||||||||||||
Non-interest expense
|
| | | $ | 103,446 | | | | | $ | 93,769 | | | | | $ | 88,699 | | | | | $ | 82,687 | | | | | $ | 160,295 | | |
Less adjustments: | | | | | | | |||||||||||||||||||||||||
Contributions to the Columbia Bank Foundation
|
| | | | (3,603) | | | | | | (347) | | | | | | (335) | | | | | | (200) | | | | | | (284) | | |
Loss on debt extinguishment
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (73,095) | | |
Adjusted non-interest expense
|
| | | | 99,843 | | | | | | 93,422 | | | | | | 88,364 | | | | | | 82,487 | | | | | | 86,916 | | |
Net interest income
|
| | | | 139,780 | | | | | | 125,015 | | | | | | 117,421 | | | | | | 109,682 | | | | | | 108,056 | | |
Non-interest income
|
| | | | 17,172 | | | | | | 18,927 | | | | | | 21,066 | | | | | | 15,578 | | | | | | 27,113 | | |
Total revenue.
|
| | | | 156,952 | | | | | | 143,942 | | | | | | 138,487 | | | | | | 125,260 | | | | | | 135,169 | | |
Less adjustments: | | | | | | | |||||||||||||||||||||||||
Losses (gains) on sales of securities and other than temporary impairment
|
| | | | 1,689 | | | | | | (355) | | | | | | (1,904) | | | | | | 1,543 | | | | | | (7,071) | | |
Adjusted revenue
|
| | | $ | 158,641 | | | | | $ | 143,587 | | | | | $ | 136,583 | | | | | $ | 126,803 | | | | | $ | 128,098 | | |
Core efficiency ratio (adjusted non-interest expense divided by adjusted revenue)
|
| | | | 62.94% | | | | | | 65.06% | | | | | | 64.70% | | | | | | 65.05% | | | | | | 67.85% | | |
(Dollars in thousands)
|
| |
At December 31,
2017 |
| |
At September 30,
2017 |
| ||||||
Financial Condition Data: | | | | ||||||||||
Total assets
|
| | | $ | 5,766,500 | | | | | $ | 5,429,328 | | |
Total cash and cash equivalents
|
| | | | 65,498 | | | | | | 100,975 | | |
Investment securities available-for-sale
|
| | | | 710,570 | | | | | | 557,176 | | |
Investment securities held-to-maturity
|
| | | | 239,618 | | | | | | 132,939 | | |
Loans receivable, net
|
| | | | 4,400,470 | | | | | | 4,307,623 | | |
Deposits
|
| | | | 4,263,315 | | | | | | 4,123,428 | | |
Borrowings
|
| | | | 929,057 | | | | | | 733,043 | | |
Stockholder’s equity
|
| | | | 472,070 | | | | | | 475,914 | | |
(Dollars in thousands)
|
| |
Three Months Ended
December 31, 2017 |
| |
Three Months Ended
December 31, 2016 |
| ||||||
Operating Data: | | | | ||||||||||
Interest and dividend income
|
| | | $ | 49,168 | | | | | $ | 44,128 | | |
Interest expense
|
| | | | 12,241 | | | | | | 10,724 | | |
Net interest income
|
| | | | 36,927 | | | | | | 33,404 | | |
Provision for loan losses
|
| | | | 3,400 | | | | | | — | | |
Net interest income after provision for loan losses
|
| | | | 33,527 | | | | | | 33,404 | | |
Non-interest income
|
| | | | 4,674 | | | | | | 5,507 | | |
Non-interest expense
|
| | | | 25,541 | | | | | | 24,052 | | |
Income before income tax expense
|
| | | | 12,660 | | | | | | 14,859 | | |
Income tax expense
|
| | | | 8,982 | | | | | | 4,866 | | |
Net income
|
| | | $ | 3,678 | | | | | $ | 9,993 | | |
|
| | |
At and for the Three Months
Ended December 31, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Performance Ratios: | | | | ||||||||||
Return on average assets
|
| | | | 0.26% | | | | | | 0.78% | | |
Return on average equity
|
| | | | 3.00 | | | | | | 8.73 | | |
Interest rate spread (1)
|
| | | | 2.58 | | | | | | 2.55 | | |
Net interest margin (2)
|
| | | | 2.79 | | | | | | 2.75 | | |
Non-interest expense to average assets
|
| | | | 1.83 | | | | | | 1.88 | | |
Efficiency ratio
|
| | | | 61.40 | | | | | | 61.81 | | |
Core efficiency ratio (3)
|
| | | | 61.31 | | | | | | 62.23 | | |
Average interest-earning assets to average interest-bearing liabilities
|
| | | | 122.69 | | | | | | 122.41 | | |
Average equity to average assets
|
| | | | 8.77 | | | | | | 8.95 | | |
Capital Ratios for Columbia Financial (4): | | | | ||||||||||
Total capital (to risk-weighted assets)
|
| | | | 15.01 | | | | | | 15.58 | | |
Tier 1 capital (to risk-weighted assets)
|
| | | | 13.76 | | | | | | 14.32 | | |
Common equity Tier 1 capital (to risk-weighted assets)
|
| | | | 12.55 | | | | | | 13.00 | | |
Tier 1 capital (to adjusted total assets)
|
| | | | 10.54 | | | | | | 10.74 | | |
Capital Ratios for Columbia Bank (4): | | | | ||||||||||
Total capital (to risk-weighted assets)
|
| | | | 14.90 | | | | | | 15.41 | | |
Tier 1 capital (to risk-weighted assets)
|
| | | | 13.64 | | | | | | 14.16 | | |
Common equity Tier 1 capital (to risk-weighted assets)
|
| | | | 13.64 | | | | | | 14.16 | | |
Tier 1 capital (to adjusted total assets)
|
| | | | 10.44 | | | | | | 10.62 | | |
Asset Quality Ratios: | | | | ||||||||||
Allowance for loan losses as a percent of total loans
|
| | | | 1.30 | | | | | | 1.25 | | |
Allowance for loan losses as a percent of non-performing loans
|
| | | | 891.62 | | | | | | 415.05 | | |
Net charge-offs/(recoveries) to total loans
|
| | | | (0.01) | | | | | | 0.00 | | |
Non-performing loans as a percent of total loans
|
| | | | 0.15 | | | | | | 0.30 | | |
Non-performing assets as a percent of total assets
|
| | | | 0.13 | | | | | | 0.26 | | |
Other Data: | | | | ||||||||||
Number of offices
|
| | | | 48 | | | | | | 46 | | |
(Dollars in thousands)
|
| |
For the Three Months Ended
December 31, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Non-interest expense
|
| | | $ | 25,541 | | | | | $ | 24,052 | | |
Less adjustments: | | | | ||||||||||
Contributions to the Columbia Bank Foundation
|
| | | | — | | | | | | 93 | | |
Adjusted non-interest expense
|
| | | | 25,541 | | | | | | 23,959 | | |
Net interest income
|
| | | | 36,927 | | | | | | 33,404 | | |
Non-interest income
|
| | | | 4,674 | | | | | | 5,507 | | |
Total revenue
|
| | | | 41,601 | | | | | | 38,911 | | |
Less adjustments: | | | | ||||||||||
Losses (gains) on sales of securities
|
| | | | (60) | | | | | | 411 | | |
Adjusted revenue
|
| | | $ | 41,661 | | | | | $ | 38,500 | | |
Core efficiency ratio (adjusted non-interest expense divided by
adjusted revenue) |
| | | | 61.31% | | | | | | 62.23% | | |
| | |
Based Upon the Sale at $10.00 Per Share of
|
| |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
32,028,350
Shares at Minimum of Offering Range |
| |
37,680,412
Shares at Midpoint of Offering Range |
| |
43,332,474
Shares at Maximum of Offering Range |
| |
49,832,345
Shares at Adjusted Maximum of Offering Range(1) |
| ||||||||||||||||||||||||||||||||||||
| | |
Amount
|
| |
Percent of
Net Proceeds |
| |
Amount
|
| |
Percent of
Net Proceeds |
| |
Amount
|
| |
Percent of
Net Proceeds |
| |
Amount
|
| |
Percent of
Net Proceeds |
| ||||||||||||||||||||||||
Offering proceeds
|
| | | $ | 320,284 | | | | | | | | | | | $ | 376,804 | | | | | | | | | | | $ | 433,325 | | | | | | | | | | | $ | 498,323 | | | | | | | | |
Less: offering expenses
|
| | | | (4,675) | | | | | | | | | | | | (4,932) | | | | | | | | | | | | (5,189) | | | | | | | | | | | | (5,484) | | | | | | | | |
Net offering proceeds
|
| | | | 315,609 | | | | | | 100.0% | | | | | | 371,872 | | | | | | 100.0% | | | | | | 428,136 | | | | | | 100.0% | | | | | | 492,839 | | | | | | 100.0% | | |
Less: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds contributed to Columbia Bank
|
| | | | 157,805 | | | | | | 50.0 | | | | | | 185,936 | | | | | | 50.0 | | | | | | 214,068 | | | | | | 50.0 | | | | | | 246,420 | | | | | | 50.0 | | |
Proceeds used to redeem trust
preferred securities |
| | | | 50,000 | | | | | | 15.8 | | | | | | 50,000 | | | | | | 13.4 | | | | | | 50,000 | | | | | | 11.7 | | | | | | 50,000 | | | | | | 10.1 | | |
Proceeds used for loan to employee stock ownership plan(2)
|
| | | | 29,198 | | | | | | 9.3 | | | | | | 34,351 | | | | | | 9.2 | | | | | | 39,503 | | | | | | 9.2 | | | | | | 45,429 | | | | | | 9.2 | | |
Proceeds retained by Columbia Financial
|
| | | $ | 78,606 | | | | | | 24.9% | | | | | $ | 101,585 | | | | | | 27.4% | | | | | $ | 124,565 | | | | | | 29.1% | | | | | $ | 150,990 | | | | | | 30.7% | | |
| | |
Columbia Financial
Historical at |
| | | | |
Pro Forma at September 30, 2017, Based Upon the Sale in the Offering of(1)
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Actual as of
September 30, 2017 |
| |
Pro Forma as of
September 30, 2017(2) |
| |
32,028,350
Shares |
| |
37,680,412
Shares |
| |
43,332,474
Shares |
| |
49,832,345
Shares(3) |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
Amount
|
| |
Percent of
Assets(4) |
| |
Amount
|
| |
Percent of
Assets(4) |
| |
Amount
|
| |
Percent of
Assets(4) |
| |
Amount
|
| |
Percent of
Assets(4) |
| |
Amount
|
| |
Percent of
Assets(4) |
| |
Amount
|
| |
Percent of
Assets(4) |
| ||||||||||||||||||||||||||||||||||||
Equity
|
| | | $ | 475,914 | | | | | | 8.77% | | | | | $ | 475,914 | | | | | | 8.77% | | | | | $ | 755,158 | | | | | | 13.23% | | | | | $ | 805,112 | | | | | | 13.98% | | | | | $ | 855,067 | | | | | | 14.72% | | | | | $ | 912,514 | | | | | | 15.56% | | |
Tier 1 leverage capital
|
| | | $ | 564,854 | | | | | | 10.59% | | | | | $ | 513,854 | | | | | | 9.64% | | | | | $ | 793,098 | | | | | | 14.13% | | | | | $ | 843,052 | | | | | | 14.89% | | | | | $ | 893,007 | | | | | | 15.63% | | | | | $ | 950,454 | | | | | | 16.48% | | |
Tier 1 leverage capital requirement
|
| | | | 266,623 | | | | | | 5.00 | | | | | | 266,623 | | | | | | 5.00 | | | | | | 280,585 | | | | | | 5.00 | | | | | | 283,082 | | | | | | 5.00 | | | | | | 285,580 | | | | | | 5.00 | | | | | | 288,453 | | | | | | 5.00 | | |
Excess
|
| | | $ | 298,231 | | | | | | 5.59% | | | | | $ | 247,231 | | | | | | 4.64% | | | | | $ | 512,513 | | | | | | 9.13% | | | | | $ | 559,970 | | | | | | 9.89% | | | | | $ | 607,427 | | | | | | 10.63% | | | | | $ | 662,001 | | | | | | 11.48% | | |
Tier 1 risk-based capital
|
| | | $ | 564,854 | | | | | | 13.85% | | | | | $ | 513,854 | | | | | | 12.60% | | | | | $ | 793,098 | | | | | | 19.18% | | | | | $ | 843,052 | | | | | | 20.34% | | | | | $ | 893,007 | | | | | | 21.50% | | | | | $ | 950,454 | | | | | | 22.82% | | |
Tier 1 risk-based requirement
|
| | | | 326,254 | | | | | | 8.00 | | | | | | 326,254 | | | | | | 8.00 | | | | | | 330,722 | | | | | | 8.00 | | | | | | 331,521 | | | | | | 8.00 | | | | | | 332,320 | | | | | | 8.00 | | | | | | 333,240 | | | | | | 8.00 | | |
Excess
|
| | | $ | 238,600 | | | | | | 5.85% | | | | | $ | 187,600 | | | | | | 4.60% | | | | | $ | 462,376 | | | | | | 11.18% | | | | | $ | 511,531 | | | | | | 12.34% | | | | | $ | 560,687 | | | | | | 13.50% | | | | | $ | 617,214 | | | | | | 14.82% | | |
Total risk-based capital
|
| | | $ | 616,052 | | | | | | 15.11% | | | | | $ | 565,052 | | | | | | 13.86% | | | | | $ | 844,296 | | | | | | 20.42% | | | | | $ | 894,250 | | | | | | 21.58% | | | | | $ | 944,205 | | | | | | 22.73% | | | | | $ | 1,001,652 | | | | | | 24.05% | | |
Total risk-based requirement
|
| | | | 407,817 | | | | | | 10.00 | | | | | | 407,817 | | | | | | 10.00 | | | | | | 413,402 | | | | | | 10.00 | | | | | | 414,401 | | | | | | 10.00 | | | | | | 415,400 | | | | | | 10.00 | | | | | | 416,549 | | | | | | 10.00 | | |
Excess
|
| | | $ | 208,235 | | | | | | 5.11% | | | | | $ | 157,235 | | | | | | 3.86% | | | | | $ | 430,894 | | | | | | 10.42% | | | | | $ | 479,849 | | | | | | 11.58% | | | | | $ | 528,805 | | | | | | 12.73% | | | | | $ | 585,103 | | | | | | 14.05% | | |
Common equity tier 1 risk-based
capital |
| | | $ | 513,854 | | | | | | 12.60% | | | | | $ | 513,854 | | | | | | 12.60% | | | | | $ | 793,098 | | | | | | 19.18% | | | | | $ | 843,052 | | | | | | 20.34% | | | | | $ | 893,007 | | | | | | 21.50% | | | | | $ | 950,454 | | | | | | 22.82% | | |
Common equity tier 1 risk-based
requirement |
| | | | 265,081 | | | | | | 6.50 | | | | | | 265,081 | | | | | | 6.50 | | | | | | 268,711 | | | | | | 6.50 | | | | | | 269,361 | | | | | | 6.50 | | | | | | 270,010 | | | | | | 6.50 | | | | | | 270,757 | | | | | | 6.50 | | |
Excess
|
| | | $ | 248,773 | | | | | | 6.10% | | | | | $ | 248,773 | | | | | | 6.10% | | | | | $ | 524,387 | | | | | | 12.68% | | | | | $ | 573,691 | | | | | | 13.84% | | | | | $ | 622,997 | | | | | | 15.00% | | | | | $ | 679,697 | | | | | | 16.32% | | |
| | |
Columbia Bank
Historical at |
| |
Pro Forma at September 30, 2017, Based Upon the Sale in the Offering of(1)
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
September 30, 2017
|
| |
32,028,350
Shares |
| |
37,680,412
Shares |
| |
43,332,474
Shares |
| |
49,832,345
Shares(2) |
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Amount
|
| |
Percent of
Assets(3) |
| |
Amount
|
| |
Percent of
Assets(3) |
| |
Amount
|
| |
Percent of
Assets(3) |
| |
Amount
|
| |
Percent of
Assets(3) |
| |
Amount
|
| |
Percent of
Assets(3) |
| ||||||||||||||||||||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity
|
| | | $ | 519,845 | | | | | | 9.60% | | | | | $ | 633,853 | | | | | | 11.38% | | | | | $ | 654,255 | | | | | | 11.68% | | | | | $ | 674,658 | | | | | | 11.99% | | | | | $ | 698,122 | | | | | | 12.33% | | |
Tier 1 leverage capital
|
| | | $ | 557,815 | | | | | | 10.47% | | | | | $ | 671,823 | | | | | | 12.24% | | | | | $ | 692,225 | | | | | | 12.55% | | | | | $ | 712,628 | | | | | | 12.86% | | | | | $ | 736,092 | | | | | | 13.20% | | |
Tier 1 leverage capital requirement
|
| | | | 266,450 | | | | | | 5.00 | | | | | | 274,340 | | | | | | 5.00 | | | | | | 275,747 | | | | | | 5.00 | | | | | | 277,153 | | | | | | 5.00 | | | | | | 278,771 | | | | | | 5.00 | | |
Excess
|
| | | $ | 291,365 | | | | | | 5.47% | | | | | $ | 397,483 | | | | | | 7.24% | | | | | $ | 416,478 | | | | | | 7.55% | | | | | $ | 435,475 | | | | | | 7.86% | | | | | $ | 457,321 | | | | | | 8.20% | | |
Tier 1 risk-based capital
|
| | | $ | 557,815 | | | | | | 13.69% | | | | | $ | 671,823 | | | | | | 16.36% | | | | | $ | 692,225 | | | | | | 16.83% | | | | | $ | 712,628 | | | | | | 17.31% | | | | | $ | 736,092 | | | | | | 17.85% | | |
Tier 1 risk-based requirement
|
| | | | 325,980 | | | | | | 8.00 | | | | | | 328,505 | | | | | | 8.00 | | | | | | 328,955 | | | | | | 8.00 | | | | | | 329,405 | | | | | | 8.00 | | | | | | 329,923 | | | | | | 8.00 | | |
Excess
|
| | | $ | 231,835 | | | | | | 5.69% | | | | | $ | 343,318 | | | | | | 8.36% | | | | | $ | 363,270 | | | | | | 8.83% | | | | | $ | 383,223 | | | | | | 9.31% | | | | | $ | 406,169 | | | | | | 9.85% | | |
Total risk-based capital
|
| | | $ | 608,971 | | | | | | 14.94% | | | | | $ | 722,979 | | | | | | 17.61% | | | | | $ | 743,381 | | | | | | 18.08% | | | | | $ | 763,784 | | | | | | 18.55% | | | | | $ | 787,248 | | | | | | 19.09% | | |
Total risk-based requirement
|
| | | | 407,475 | | | | | | 10.00 | | | | | | 410,631 | | | | | | 10.00 | | | | | | 411,194 | | | | | | 10.00 | | | | | | 411,756 | | | | | | 10.00 | | | | | | 412,403 | | | | | | 10.00 | | |
Excess
|
| | | $ | 201,496 | | | | | | 4.94% | | | | | $ | 312,348 | | | | | | 7.61% | | | | | $ | 332,187 | | | | | | 8.08% | | | | | $ | 352,028 | | | | | | 8.55% | | | | | $ | 374,845 | | | | | | 9.09% | | |
Common equity tier 1 risk-based capital
|
| | | $ | 557,815 | | | | | | 13.69% | | | | | $ | 671,823 | | | | | | 16.36% | | | | | $ | 692,225 | | | | | | 16.83% | | | | | $ | 712,628 | | | | | | 17.31% | | | | | $ | 736,092 | | | | | | 17.85% | | |
Common equity tier 1 risk-based requirement
|
| | | | 264,859 | | | | | | 6.50 | | | | | | 266,910 | | | | | | 6.50 | | | | | | 267,276 | | | | | | 6.50 | | | | | | 267,642 | | | | | | 6.50 | | | | | | 268,062 | | | | | | 6.50 | | |
Excess
|
| | | $ | 292,956 | | | | | | 7.19% | | | | | $ | 404,913 | | | | | | 9.86% | | | | | $ | 424,949 | | | | | | 10.33% | | | | | $ | 444,986 | | | | | | 10.81% | | | | | $ | 468,030 | | | | | | 11.35% | | |
Reconciliation of capital infused into
Columbia Bank: |
| | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds contributed to Columbia Bank
|
| | | | | | | | | | | | | | | $ | 157,805 | | | | | | | | | | | $ | 185,936 | | | | | | | | | | | $ | 214,068 | | | | | | | | | | | $ | 246,420 | | | | | | | | |
Less common stock acquired by employee stock ownership
plan |
| | | | | | | | | | | | | | | | (29,198) | | | | | | | | | | | | (34,351) | | | | | | | | | | | | (39,503) | | | | | | | | | | | | (45,429) | | | | | | | | |
Less common stock acquired by stock-based benefit plans
|
| | | | | | | | | | | | | | | | (14,599) | | | | | | | | | | | | (17,175) | | | | | | | | | | | | (19,752) | | | | | | | | | | | | (22,714) | | | | | | | | |
Pro forma increase
|
| | | | | | | | | | | | | | | $ | 114,008 | | | | | | | | | | | $ | 134,410 | | | | | | | | | | | $ | 154,813 | | | | | | | | | | | $ | 178,277 | | | | | | | | |
| | |
Columbia Financial
Historical Capitalization at September 30, 2017 |
| |
Pro Forma Consolidated Capitalization at September 30, 2017 of
Columbia Financial Based Upon the Sale for $10.00 Per Share of |
| ||||||||||||||||||||||||
(Dollars in thousands)
|
| |
32,028,350
Shares |
| |
37,680,412
Shares |
| |
43,332,474
Shares |
| |
49,832,345
Shares(1) |
| ||||||||||||||||||
Deposits(2) | | | | $ | 4,123,428 | | | | | $ | 4,123,428 | | | | | $ | 4,123,428 | | | | | $ | 4,123,428 | | | | | $ | 4,123,428 | | |
Borrowings
|
| | | | 733,043 | | | | | | 733,043 | | | | | | 733,043 | | | | | | 733,043 | | | | | | 733,043 | | |
Total deposits and borrowed funds
|
| | | $ | 4,856,471 | | | | | $ | 4,856,471 | | | | | $ | 4,856,471 | | | | | $ | 4,856,471 | | | | | $ | 4,856,471 | | |
Stockholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Preferred stock, $0.01 par value per share:
10,000,000 shares authorized; none to be issued |
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Common stock, $0.01 par value per share:
500,000,000 shares authorized; shares to be issued as reflected |
| | | | — | | | | | | 745 | | | | | | 876 | | | | | | 1,008 | | | | | | 1,159 | | |
Additional paid-in capital(3)
|
| | | | — | | | | | | 337,009 | | | | | | 397,085 | | | | | | 457,160 | | | | | | 526,247 | | |
Retained earnings
|
| | | | 522,094 | | | | | | 522,094 | | | | | | 522,094 | | | | | | 522,094 | | | | | | 522,094 | | |
Less: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expense of stock contribution to foundation
|
| | | | — | | | | | | (22,345) | | | | | | (26,289) | | | | | | (30,232) | | | | | | (34,767) | | |
Plus: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tax benefit of contribution to foundation
|
| | | | — | | | | | | 8,044 | | | | | | 9,464 | | | | | | 10,884 | | | | | | 12,516 | | |
Less: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tax effected write off of deferred issuance cost(4)(5)
|
| | | | — | | | | | | (412) | | | | | | (412) | | | | | | (412) | | | | | | (412) | | |
Accumulated other comprehensive loss
|
| | | | (46,180) | | | | | | (46,180) | | | | | | (46,180) | | | | | | (46,180) | | | | | | (46,180) | | |
Less: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock acquired by employee stock
ownership plan(6) |
| | | | — | | | | | | (29,198) | | | | | | (34,351) | | | | | | (39,503) | | | | | | (45,429) | | |
Common stock acquired by stock-based benefit plans(7)
|
| | | | — | | | | | | (14,599) | | | | | | (17,175) | | | | | | (19,752) | | | | | | (22,714) | | |
Total stockholders’ equity
|
| | | $ | 475,914 | | | | | $ | 755,158 | | | | | $ | 805,112 | | | | | $ | 855,067 | | | | | $ | 912,514 | | |
Pro forma shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total shares outstanding
|
| | | | | | | | | | 74,484,536 | | | | | | 87,628,866 | | | | | | 100,773,196 | | | | | | 115,889,175 | | |
Shares issued to Columbia Bank MHC
|
| | | | | | | | | | 40,221,650 | | | | | | 47,319,588 | | | | | | 54,417,526 | | | | | | 62,580,155 | | |
Shares issued to foundation
|
| | | | | | | | | | 2,234,536 | | | | | | 2,628,866 | | | | | | 3,023,196 | | | | | | 3,476,675 | | |
Shares offered for sale
|
| | | | | | | | | | 32,028,350 | | | | | | 37,680,412 | | | | | | 43,332,474 | | | | | | 49,832,345 | | |
Total stockholders’ equity as a percentage of pro forma total assets
|
| | | | 8.77% | | | | | | 13.23% | | | | | | 13.98% | | | | | | 14.72% | | | | | | 15.56% | | |
| | |
At or For the Year Ended September 30, 2017
|
| |||||||||||||||||||||
| | |
Based Upon the Sale at $10.00 Per Share of
|
| |||||||||||||||||||||
(Dollars in thousands, except per share amounts)
|
| |
32,028,350
Shares at Minimum of Offering Range |
| |
37,680,412
Shares at Midpoint of Offering Range |
| |
43,332,474
Shares at Maximum of Offering Range |
| |
49,832,345
Shares at Adjusted Maximum of Offering Range(1) |
| ||||||||||||
Pro forma market capitalization
|
| | | $ | 342,629 | | | | | $ | 403,093 | | | | | $ | 463,557 | | | | | $ | 533,090 | | |
Gross proceeds of the offering
|
| | | | 320,284 | | | | | | 376,804 | | | | | | 433,325 | | | | | | 498,323 | | |
Less expenses
|
| | | | (4,675) | | | | | | (4,932) | | | | | | (5,189) | | | | | | (5,484) | | |
Estimated net proceeds
|
| | | $ | 315,609 | | | | | $ | 371,872 | | | | | $ | 428,136 | | | | | $ | 492,839 | | |
Less: Funding of Columbia Bank MHC
|
| | | | (200) | | | | | | (200) | | | | | | (200) | | | | | | (200) | | |
Less: Common stock acquired by ESOP(2)
|
| | | | (29,198) | | | | | | (34,351) | | | | | | (39,503) | | | | | | (45,429) | | |
Less: Common stock award under equity incentive plan(3)
|
| | | | (14,599) | | | | | | (17,175) | | | | | | (19,752) | | | | | | (22,714) | | |
Estimated net proceeds, as adjusted
|
| | | | 271,612 | | | | | | 320,146 | | | | | | 368,681 | | | | | | 424,496 | | |
Less: Trust preferred securities redeemed
|
| | | | (50,000) | | | | | | (50,000) | | | | | | (50,000) | | | | | | (50,000) | | |
Net investable proceeds
|
| | | $ | 221,612 | | | | | $ | 270,146 | | | | | $ | 318,681 | | | | | $ | 374,496 | | |
For the year ended September 30, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated net income:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Historical(4)
|
| | | $ | 31,072 | | | | | $ | 31,072 | | | | | $ | 31,072 | | | | | $ | 31,072 | | |
Pro forma income on net investible proceeds
|
| | | | 2,723 | | | | | | 3,320 | | | | | | 3,916 | | | | | | 4,602 | | |
Interest expense on trust preferred securities redeemed
|
| | | | 2,673 | | | | | | 2,673 | | | | | | 2,673 | | | | | | 2,673 | | |
Employee stock ownership plan(2)
|
| | | | (934) | | | | | | (1,099) | | | | | | (1,264) | | | | | | (1,454) | | |
Shares granted under stock-based benefit plans(3)
|
| | | | (1,869) | | | | | | (2,198) | | | | | | (2,528) | | | | | | (2,907) | | |
Options granted under stock-based benefit plans(5)
|
| | | | (1,860) | | | | | | (2,188) | | | | | | (2,516) | | | | | | (2,894) | | |
Pro forma net income
|
| | | $ | 31,805 | | | | | $ | 31,580 | | | | | $ | 31,353 | | | | | $ | 31,092 | | |
Earnings per share: | | | | | | ||||||||||||||||||||
Historical
|
| | | $ | 0.43 | | | | | $ | 0.37 | | | | | $ | 0.32 | | | | | $ | 0.28 | | |
Pro forma income on net investible proceeds
|
| | | | 0.04 | | | | | | 0.04 | | | | | | 0.04 | | | | | | 0.04 | | |
Interest expense on trust preferred securities redeemed
|
| | | | 0.04 | | | | | | 0.03 | | | | | | 0.03 | | | | | | 0.03 | | |
Employee stock ownership plan(2)
|
| | | | (0.01) | | | | | | (0.01) | | | | | | (0.01) | | | | | | (0.01) | | |
Shares granted under stock-based benefit plans(3)
|
| | | | (0.03) | | | | | | (0.03) | | | | | | (0.03) | | | | | | (0.03) | | |
Options granted under stock-based benefit plans(5)
|
| | | | (0.03) | | | | | | (0.03) | | | | | | (0.03) | | | | | | (0.03) | | |
Pro forma earnings per share
|
| | | $ | 0.44 | | | | | $ | 0.37 | | | | | $ | 0.32 | | | | | $ | 0.28 | | |
Offering price to pro forma earnings per share
|
| | | | 22.73x | | | | | | 27.03x | | | | | | 31.25x | | | | | | 37.51x | | |
Number of shares used in earnings per share calculations(2)
|
| | | | 71,710,732 | | | | | | 84,365,567 | | | | | | 97,020,402 | | | | | | 111,573,462 | | |
At September 30, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | |
Stockholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | | |
Historical(4)
|
| | | $ | 475,914 | | | | | $ | 475,914 | | | | | $ | 475,914 | | | | | $ | 475,914 | | |
Estimated net proceeds after capitalization of MHC
|
| | | | 315,409 | | | | | | 371,672 | | | | | | 427,936 | | | | | | 492,639 | | |
Less: Tax effected write-off of deferred issuance cost
|
| | | | (412) | | | | | | (412) | | | | | | (412) | | | | | | (412) | | |
Plus: Market value of shares issued to foundation
|
| | | | 22,345 | | | | | | 26,289 | | | | | | 30,232 | | | | | | 34,767 | | |
Less: Expense of contribution to stock to foundation
|
| | | | (22,345) | | | | | | (26,289) | | | | | | (30,232) | | | | | | (34,767) | | |
Plus: Tax benefit of contribution to foundation
|
| | | | 8,044 | | | | | | 9,464 | | | | | | 10,884 | | | | | | 12,516 | | |
Less: Common stock acquired by ESOP(2)
|
| | | | (29,198) | | | | | | (34,351) | | | | | | (39,503) | | | | | | (45,429) | | |
Less: Common stock acquired by stock-based benefit plans(3)
|
| | | | (14,599) | | | | | | (17,175) | | | | | | (19,752) | | | | | | (22,714) | | |
Pro forma stockholders’ equity(6)
|
| | | $ | 755,158 | | | | | $ | 805,112 | | | | | $ | 855,067 | | | | | $ | 912,514 | | |
Goodwill
|
| | | | (5,716) | | | | | | (5,716) | | | | | | (5,716) | | | | | | (5,716) | | |
Pro forma tangible stockholders’ equity
|
| | | $ | 749,442 | | | | | $ | 799,396 | | | | | $ | 849,351 | | | | | $ | 906,798 | | |
Stockholders’ equity per share: | | | | | | ||||||||||||||||||||
Historical
|
| | | $ | 6.39 | | | | | $ | 5.43 | | | | | $ | 4.72 | | | | | $ | 4.10 | | |
Estimated net proceeds after capitalization of MHC
|
| | | | 4.23 | | | | | | 4.24 | | | | | | 4.25 | | | | | | 4.25 | | |
Less: Tax effected write-off of deferred issuance cost
|
| | | | (0.00) | | | | | | (0.00) | | | | | | (0.00) | | | | | | (0.00) | | |
Plus: Market value of shares issued to foundation
|
| | | | 0.30 | | | | | | 0.30 | | | | | | 0.30 | | | | | | 0.30 | | |
Less: Expense of contribution to foundation
|
| | | | (0.30) | | | | | | (0.30) | | | | | | (0.30) | | | | | | (0.30) | | |
Plus: Tax benefit of contribution to foundation
|
| | | | 0.11 | | | | | | 0.11 | | | | | | 0.11 | | | | | | 0.11 | | |
Less: Common stock acquired by ESOP(2)
|
| | | | (0.39) | | | | | | (0.39) | | | | | | (0.39) | | | | | | (0.39) | | |
Less Common stock award under equity incentive plan(3)
|
| | | | (0.20) | | | | | | (0.20) | | | | | | (0.20) | | | | | | (0.20) | | |
Pro forma tangible stockholders’ equity per share(6)
|
| | | $ | 10.14 | | | | | $ | 9.19 | | | | | $ | 8.49 | | | | | $ | 7.87 | | |
Goodwill
|
| | | | (0.08) | | | | | | (0.07) | | | | | | (0.06) | | | | | | (0.05) | | |
Pro forma tangible stockholders’ equity per share
|
| | | $ | 10.06 | | | | | $ | 9.12 | | | | | $ | 8.43 | | | | | $ | 7.82 | | |
Offering price as a percentage of pro forma stockholders’ equity per share
|
| | | | 98.62% | | | | | | 108.81% | | | | | | 117.79% | | | | | | 127.06% | | |
Offering price as a percentage of pro forma tangible stockholders’ equity per share
|
| | | | 99.40% | | | | | | 109.65% | | | | | | 118.62% | | | | | | 127.88% | | |
Number of shares outstanding for pro forma equity per share calculations
|
| | | | 74,484,536 | | | | | | 87,628,866 | | | | | | 100,773,196 | | | | | | 115,889,175 | | |
| | |
At September 30,
|
| |||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
Amortized
Cost |
| |
Fair
Value |
| |
Amortized
Cost |
| |
Fair
Value |
| |
Amortized
Cost |
| |
Fair
Value |
| ||||||||||||||||||
Securities available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | $ | 24,954 | | | | | $ | 24,873 | | | | | $ | 60,375 | | | | | $ | 60,879 | | | | | $ | 19,931 | | | | | $ | 20,217 | | |
Mortgage-backed securities and CMOs
|
| | | | 479,927 | | | | | | 473,491 | | | | | | 609,970 | | | | | | 619,976 | | | | | | 586,942 | | | | | | 590,232 | | |
Municipal obligations
|
| | | | 1,357 | | | | | | 1,357 | | | | | | 16,500 | | | | | | 16,500 | | | | | | 180 | | | | | | 180 | | |
Corporate debt securities
|
| | | | 49,489 | | | | | | 49,493 | | | | | | 63,982 | | | | | | 64,651 | | | | | | 31,997 | | | | | | 32,276 | | |
Trust preferred securities
|
| | | | 5,000 | | | | | | 4,708 | | | | | | 9,672 | | | | | | 6,779 | | | | | | 9,672 | | | | | | 7,450 | | |
Equity securities
|
| | | | 2,482 | | | | | | 3,254 | | | | | | 2,482 | | | | | | 2,994 | | | | | | 2,482 | | | | | | 2,928 | | |
Total securities available-for-sale
|
| | | $ | 563,209 | | | | | $ | 557,176 | | | | | $ | 762,981 | | | | | $ | 771,779 | | | | | $ | 651,204 | | | | | $ | 653,283 | | |
Securities held-to-maturity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | $ | 3,407 | | | | | $ | 3,400 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Mortgage-backed securities and CMOs
|
| | | | 129,532 | | | | | | 128,422 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total securities held-to-maturity
|
| | | $ | 132,939 | | | | | $ | 131,822 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Total investment securities
|
| | | $ | 696,148 | | | | | $ | 688,998 | | | | | $ | 762,981 | | | | | $ | 771,779 | | | | | $ | 651,204 | | | | | $ | 653,283 | | |
|
September 30, 2017
(Dollars in thousands) |
| |
One Year or Less
|
| |
More than One Year
to Five Years |
| |
More than Five Years
to Ten Years |
| |
More than
Ten Years |
| |
Total
|
| |||||||||||||||||||||||||||||||||||||||||||||
|
Carrying
Value |
| |
Weighted
Average Yield |
| |
Carrying
Value |
| |
Weighted
Average Yield |
| |
Carrying
Value |
| |
Weighted
Average Yield |
| |
Carrying
Value |
| |
Weighted
Average Yield |
| |
Carrying
Value |
| |
Weighted
Average Yield |
| ||||||||||||||||||||||||||||||||
Securities available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | $ | — | | | | | | —% | | | | | | 14,976 | | | | | | 1.68% | | | | | | 9,978 | | | | | | 1.89% | | | | | | — | | | | | | —% | | | | | | 24,954 | | | | | | 1.76% | | |
Mortgage-backed securities and CMOs
|
| | | | — | | | | | | — | | | | | | 10,149 | | | | | | 2.20 | | | | | | 144,741 | | | | | | 2.35 | | | | | | 325,037 | | | | | | 2.65 | | | | | | 479,927 | | | | | | 2.55 | | |
Municipal obligations
|
| | | | 1,357 | | | | | | 1.60 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,357 | | | | | | 1.60 | | |
Corporate debt securities
|
| | | | — | | | | | | — | | | | | | 14,991 | | | | | | 2.50 | | | | | | 29,498 | | | | | | 4.51 | | | | | | 5,000 | | | | | | 4.05 | | | | | | 49,489 | | | | | | 3.86 | | |
Trust preferred securities
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,000 | | | | | | 2.03 | | | | | | 5,000 | | | | | | 2.03 | | |
Total available-for-sale
|
| | | $ | 1,357 | | | | | | 1.60 | | | | | $ | 40,116 | | | | | | 2.12 | | | | | $ | 184,217 | | | | | | 2.67 | | | | | $ | 335,037 | | | | | | 2.67 | | | | | $ | 560,727 | | | | | | 2.63 | | |
Securities held to maturity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | $ | — | | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | 3,407 | | | | | | 3.00 | | | | | $ | — | | | | | | — | | | | | $ | 3,407 | | | | | | 3.00 | | |
Mortgage-backed securities and CMOs
|
| | | | 17 | | | | | | 2.78 | | | | | | — | | | | | | — | | | | | | 24,951 | | | | | | 2.55 | | | | | | 104,564 | | | | | | 2.93 | | | | | | 129,532 | | | | | | 2.85 | | |
Total held to maturity
|
| | | $ | 17 | | | | | | 2.78 | | | | | $ | — | | | | | | — | | | | | $ | 28,358 | | | | | | 2.60 | | | | | $ | 104,564 | | | | | | 2.93 | | | | | $ | 132,939 | | | | | | 2.86 | | |
Total
|
| | | $ | 1,374 | | | | | | 1.61% | | | | | $ | 40,116 | | | | | | 2.12% | | | | | $ | 212,575 | | | | | | 2.66% | | | | | $ | 439,601 | | | | | | 2.73% | | | | | $ | 693,666 | | | | | | 2.67% | | |
|
| | |
At September 30,
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
2017
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Amount
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| ||||||||||||||||||||||||||||||
Real estate loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One- to four-family
|
| | | $ | 1,578,835 | | | | | | 36.3% | | | | | $ | 1,553,345 | | | | | | 39.1% | | | | | $ | 1,492,852 | | | | | | 39.1% | | | | | $ | 1,515,535 | | | | | | 42.8% | | | | | $ | 1,450,431 | | | | | | 43.1% | | |
Commercial and
multifamily |
| | | | 1,821,982 | | | | | | 41.9 | | | | | | 1,558,939 | | | | | | 39.2 | | | | | | 1,499,305 | | | | | | 39.3 | | | | | | 1,253,703 | | | | | | 35.4 | | | | | | 1,129,381 | | | | | | 33.6 | | |
Construction
|
| | | | 218,408 | | | | | | 5.0 | | | | | | 188,480 | | | | | | 4.7 | | | | | | 132,933 | | | | | | 3.5 | | | | | | 133,110 | | | | | | 3.8 | | | | | | 128,262 | | | | | | 3.8 | | |
Total real estate loans
|
| | | | 3,619,225 | | | | | | 83.2 | | | | | | 3,300,764 | | | | | | 83.0 | | | | | | 3,125,090 | | | | | | 81.9 | | | | | | 2,902,348 | | | | | | 82.0 | | | | | | 2,708,074 | | | | | | 80.5 | | |
Commercial business loans
|
| | | | 267,664 | | | | | | 6.1 | | | | | | 177,742 | | | | | | 4.5 | | | | | | 173,034 | | | | | | 4.5 | | | | | | 118,255 | | | | | | 3.3 | | | | | | 117,400 | | | | | | 3.5 | | |
Consumer loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | 464,962 | | | | | | 10.7 | | | | | | 497,797 | | | | | | 12.5 | | | | | | 517,352 | | | | | | 13.6 | | | | | | 522,759 | | | | | | 14.7 | | | | | | 536,397 | | | | | | 16.0 | | |
Other consumer loans
|
| | | | 1,270 | | | | | | — | | | | | | 1,331 | | | | | | — | | | | | | 913 | | | | | | — | | | | | | 1,174 | | | | | | — | | | | | | 1,330 | | | | | | — | | |
Total consumer loans
|
| | | | 466,232 | | | | | | 10.7 | | | | | | 499,128 | | | | | | 12.5 | | | | | | 518,265 | | | | | | 13.6 | | | | | | 523,933 | | | | | | 14.7 | | | | | | 537,727 | | | | | | 16.0 | | |
Total loans
|
| | | | 4,353,121 | | | | | | 100.0% | | | | | | 3,977,634 | | | | | | 100.0% | | | | | | 3,816,389 | | | | | | 100.0% | | | | | | 3,544,536 | | | | | | 100.0% | | | | | | 3,363,201 | | | | | | 100.0% | | |
Net deferred loan costs
|
| | | | 9,135 | | | | | | | | | | | | 6,475 | | | | | | | | | | | | 4,779 | | | | | | | | | | | | 3,263 | | | | | | | | | | | | 2,874 | | | | | | | | |
Allowance for loan losses
|
| | | | (54,633) | | | | | | | | | | | | (51,867) | | | | | | | | | | | | (56,948) | | | | | | | | | | | | (57,904) | | | | | | | | | | | | (61,292) | | | | | | | | |
Loans receivable, net
|
| | | $ | 4,307,623 | | | | | | | | | | | $ | 3,932,242 | | | | | | | | | | | $ | 3,764,220 | | | | | | | | | | | $ | 3,489,895 | | | | | | | | | | | $ | 3,304,783 | | | | | | | | |
|
| | |
September 30, 2017
|
| |||||||||||||||||||||||||||||||||||||||
| | |
Real Estate
|
| | | | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
One- to
Four-Family |
| |
Commercial
and Multifamily |
| |
Construction
|
| |
Home Equity
Loans and Advances |
| |
Commercial
Business |
| |
Other
Consumer |
| |
Total
Loans |
| |||||||||||||||||||||
Amounts due in: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One year or less
|
| | | $ | 659 | | | | | $ | 64,660 | | | | | $ | 92,673 | | | | | $ | 4,488 | | | | | $ | 109,718 | | | | | $ | 400 | | | | | $ | 272,598 | | |
More than 1 – 5 years
|
| | | | 24,558 | | | | | | 398,170 | | | | | | 105,033 | | | | | | 27,090 | | | | | | 73,309 | | | | | | 256 | | | | | | 628,416 | | |
More than 5 – 10 years
|
| | | | 206,843 | | | | | | 1,103,714 | | | | | | — | | | | | | 97,680 | | | | | | 74,171 | | | | | | — | | | | | | 1,482,408 | | |
More than 10 years
|
| | | | 1,346,775 | | | | | | 255,438 | | | | | | 20,702(1) | | | | | | 335,704 | | | | | | 10,466 | | | | | | 614 | | | | | | 1,969,699 | | |
Total
|
| | | $ | 1,578,835 | | | | | $ | 1,821,982 | | | | | $ | 218,408 | | | | | $ | 464,962 | | | | | $ | 267,664 | | | | | $ | 1,270 | | | | | $ | 4,353,121 | | |
|
(Dollars in thousands)
|
| |
Fixed Rates
|
| |
Floating or
Adjustable Rates |
| |
Total
at September 30, 2017 |
| |||||||||
Real estate loans: | | | | | | | | | | | | | | | | | | | |
One- to four-family
|
| | | $ | 1,313,251 | | | | | $ | 264,925 | | | | | $ | 1,578,176 | | |
Commercial and multifamily
|
| | | | 926,060 | | | | | | 831,262 | | | | | | 1,757,322 | | |
Construction
|
| | | | 21,279 | | | | | | 104,456 | | | | | | 125,735 | | |
Total real estate loans
|
| | | | 2,260,590 | | | | | | 1,200,643 | | | | | | 3,461,233 | | |
Commercial business loans
|
| | | | 81,275 | | | | | | 76,671 | | | | | | 157,946 | | |
Consumer loans: | | | | | | | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | 264,814 | | | | | | 195,660 | | | | | | 460,474 | | |
Other consumer loans
|
| | | | 870 | | | | | | — | | | | | | 870 | | |
Total consumer loans
|
| | | | 265,684 | | | | | | 195,660 | | | | | | 461,344 | | |
Total
|
| | | $ | 2,607,549 | | | | | $ | 1,472,974 | | | | | $ | 4,080,523 | | |
|
| | |
Year Ended September 30,
|
| |||||||||||||||
(Dollars in thousands)
|
| |
2017
|
| |
2016
|
| |
2015
|
| |||||||||
Total loans at beginning of period
|
| | | $ | 3,977,634 | | | | | $ | 3,816,389 | | | | | $ | 3,544,536 | | |
Originations: | | | | | | | | | | | | | | | | | | | |
Real estate loans: | | | | | | | | | | | | | | | | | | | |
One- to four-family
|
| | | | 336,492 | | | | | | 344,121 | | | | | | 417,152 | | |
Commercial and multifamily
|
| | | | 469,552 | | | | | | 236,908 | | | | | | 450,288 | | |
Construction
|
| | | | 114,958 | | | | | | 165,063 | | | | | | 96,740 | | |
Total real estate loans
|
| | | | 921,002 | | | | | | 746,092 | | | | | | 964,180 | | |
Commercial business loans
|
| | | | 273,168 | | | | | | 196,679 | | | | | | 181,339 | | |
Consumer: | | | | | | | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | 110,328 | | | | | | 115,457 | | | | | | 137,007 | | |
Other consumer loans
|
| | | | 3,166 | | | | | | 3,770 | | | | | | 3,277 | | |
Total consumer loans
|
| | | | 113,494 | | | | | | 119,227 | | | | | | 140,284 | | |
Total loans originated
|
| | | | 1,307,664 | | | | | | 1,061,998 | | | | | | 1,285,803 | | |
Purchases
|
| | | | 20,473 | | | | | | 21,149 | | | | | | 10,025 | | |
Less: | | | | | | | | | | | | | | | | | | | |
Principal payments and repayments
|
| | | | (847,026) | | | | | | (812,376) | | | | | | (830,734) | | |
Loan sales
|
| | | | (105,109) | | | | | | (90,079) | | | | | | (145,363) | | |
Securitization of loans
|
| | | | — | | | | | | (17,169) | | | | | | (41,998) | | |
Transfers to real estate owned
|
| | | | (515) | | | | | | (2,278) | | | | | | (5,880) | | |
Total loans at end of period
|
| | | $ | 4,353,121 | | | | | $ | 3,977,634 | | | | | $ | 3,816,389 | | |
|
| | |
At September 30,
|
| |||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
Amount
|
| |
Percent of
Total Deposits |
| |
Amount
|
| |
Percent of
Total Deposits |
| |
Amount
|
| |
Percent of
Total Deposits |
| ||||||||||||||||||
Non-interest bearing transaction
|
| | | $ | 642,416 | | | | | | 15.6% | | | | | $ | 589,332 | | | | | | 15.4% | | | | | $ | 499,986 | | | | | | 14.0% | | |
Interest bearing transaction
|
| | | | 1,302,624 | | | | | | 31.6 | | | | | | 1,192,501 | | | | | | 31.2 | | | | | | 1,041,758 | | | | | | 29.2 | | |
Money market deposit accounts
|
| | | | 273,605 | | | | | | 6.6 | | | | | | 270,662 | | | | | | 7.1 | | | | | | 285,172 | | | | | | 8.0 | | |
Savings, including club deposits
|
| | | | 546,309 | | | | | | 13.3 | | | | | | 534,148 | | | | | | 14.0 | | | | | | 515,850 | | | | | | 14.4 | | |
Certificates of deposit
|
| | | | 1,358,474 | | | | | | 32.9 | | | | | | 1,236,172 | | | | | | 32.3 | | | | | | 1,229,858 | | | | | | 34.4 | | |
Total
|
| | | $ | 4,123,428 | | | | | | 100.0% | | | | | $ | 3,822,815 | | | | | | 100.0% | | | | | $ | 3,572,624 | | | | | | 100.0% | | |
|
| | |
Year Ended September 30,
|
| |||||||||||||||
(Dollars in thousands)
|
| |
2017
|
| |
2016
|
| |
2015
|
| |||||||||
Beginning balance
|
| | | $ | 3,822,815 | | | | | $ | 3,572,624 | | | | | $ | 3,386,714 | | |
Increase before interest credited
|
| | | | 275,032 | | | | | | 226,129 | | | | | | 163,383 | | |
Interest credited
|
| | | | 25,581 | | | | | | 24,062 | | | | | | 22,527 | | |
Net increase in deposits
|
| | | | 300,613 | | | | | | 250,191 | | | | | | 185,910 | | |
Ending balance
|
| | | $ | 4,123,428 | | | | | $ | 3,822,815 | | | | | $ | 3,572,624 | | |
|
(Dollars in thousands)
|
| |
Balance
|
| |||
Maturity Period: | | | | | | | |
Three months or less
|
| | | $ | 53,961 | | |
Over three through six months
|
| | | | 86,987 | | |
Over six through twelve months
|
| | | | 145,628 | | |
Over twelve months
|
| | | | 321,903 | | |
Total
|
| | | $ | 608,479 | | |
|
| | |
Year Ended September 30,
|
| |||||||||||||||
(Dollars in thousands)
|
| |
2017
|
| |
2016
|
| |
2015
|
| |||||||||
Less than 0.50%
|
| | | $ | 79,849 | | | | | $ | 138,457 | | | | | $ | 153,864 | | |
0.50% to 0.99%
|
| | | | 148,661 | | | | | | 176,768 | | | | | | 171,517 | | |
1.00% to 1.49%
|
| | | | 647,851 | | | | | | 540,743 | | | | | | 511,449 | | |
1.50% to 1.99%
|
| | | | 325,256 | | | | | | 219,445 | | | | | | 199,780 | | |
2.00% to 2.99%
|
| | | | 156,857 | | | | | | 160,669 | | | | | | 193,248 | | |
3.00% and greater
|
| | | | — | | | | | | — | | | | | | — | | |
Ending balance
|
| | | $ | 1,358,474 | | | | | $ | 1,236,172 | | | | | $ | 1,229,858 | | |
|
| | |
Period to Maturity
|
| |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
Less
Than One Year |
| |
More
than One Year to Two Years |
| |
More
than Two Years to Three Years |
| |
More than
Three Years to Four Years |
| |
More than
Four Years |
| |
Total
|
| |
Percent
of Total Certificate Accounts |
| |||||||||||||||||||||
Less than 0.50%
|
| | | $ | 71,341 | | | | | $ | 8,509 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 79,850 | | | | | | 5.9 | | |
0.50% to 0.99%
|
| | | | 130,765 | | | | | | 17,750 | | | | | | 146 | | | | | | — | | | | | | — | | | | | | 148,661 | | | | | | 10.9 | | |
1.00% to 1.49%
|
| | | | 390,314 | | | | | | 192,993 | | | | | | 58,751 | | | | | | 2,228 | | | | | | 3,564 | | | | | | 647,850 | | | | | | 47.7 | | |
1.50% to 1.99%
|
| | | | 52,526 | | | | | | 102,456 | | | | | | 108,694 | | | | | | 39,100 | | | | | | 22,479 | | | | | | 325,255 | | | | | | 23.9 | | |
2.00% to 2.99%
|
| | | | 12,795 | | | | | | 16,557 | | | | | | 81,188 | | | | | | 40,631 | | | | | | 5,687 | | | | | | 156,858 | | | | | | 11.6 | | |
3.00% and greater
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 657,741 | | | | | $ | 338,265 | | | | | $ | 248,779 | | | | | $ | 81,959 | | | | | $ | 31,730 | | | | | $ | 1,358,474 | | | | | | 100.0% | | |
|
| | |
At September 30,
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Average
Balance |
| |
Percent
|
| |
Weighted
Average Rate |
| |
Average
Balance |
| |
Percent
|
| |
Weighted
Average Rate |
| |
Average
Balance |
| |
Percent
|
| |
Weighted
Average Rate |
| |||||||||||||||||||||||||||
Non-interest bearing transaction
|
| | | $ | 607,836 | | | | | | 15.3% | | | | | | —% | | | | | $ | 543,943 | | | | | | 14.7% | | | | | | —% | | | | | $ | 487,461 | | | | | | 13.9% | | | | | | —% | | |
Interest bearing transaction
|
| | | | 1,284,418 | | | | | | 32.3 | | | | | | 0.59 | | | | | | 1,140,460 | | | | | | 30.8 | | | | | | 0.59 | | | | | | 984,130 | | | | | | 28.0 | | | | | | 0.55 | | |
Money market deposit accounts
|
| | | | 270,919 | | | | | | 6.8 | | | | | | 0.28 | | | | | | 272,575 | | | | | | 7.4 | | | | | | 0.28 | | | | | | 300,609 | | | | | | 8.5 | | | | | | 0.31 | | |
Savings, including club deposits
|
| | | | 543,070 | | | | | | 13.7 | | | | | | 0.15 | | | | | | 523,601 | | | | | | 14.1 | | | | | | 0.15 | | | | | | 514,934 | | | | | | 14.6 | | | | | | 0.18 | | |
Certificates of deposit
|
| | | | 1,266,717 | | | | | | 31.9 | | | | | | 1.29 | | | | | | 1,225,833 | | | | | | 33.0 | | | | | | 1.28 | | | | | | 1,230,312 | | | | | | 35.0 | | | | | | 1.24 | | |
Total
|
| | | $ | 3,972,960 | | | | | | 100.0% | | | | | | 0.64% | | | | | $ | 3,706,412 | | | | | | 100.0% | | | | | | 0.65% | | | | | $ | 3,517,446 | | | | | | 100.0% | | | | | | 0.64% | | |
|
| | |
At or For the Year Ended
September 30, |
| |||||||||||||||
(Dollars in thousands)
|
| |
2017
|
| |
2016
|
| |
2015
|
| |||||||||
Maximum amount outstanding at any month-end during the year:
|
| | | | | | | | | | | | | | | | | | |
Lines of credit
|
| | | $ | 66,700 | | | | | $ | 47,400 | | | | | $ | 23,000 | | |
Federal Home Loan Bank advances
|
| | | | 645,200 | | | | | | 569,000 | | | | | | 644,000 | | |
Junior subordinated debt
|
| | | | 50,643 | | | | | | 50,590 | | | | | | 50,536 | | |
Securities sold under repurchase agreements
|
| | | | 40,000 | | | | | | 60,000 | | | | | | 80,000 | | |
Average outstanding balance during the year: | | | | | | | | | | | | | | | | | | | |
Lines of credit
|
| | | $ | 24,324 | | | | | $ | 7,989 | | | | | $ | 4,692 | | |
Federal Home Loan Bank advances
|
| | | | 603,641 | | | | | | 557,006 | | | | | | 616,824 | | |
Junior subordinated debt
|
| | | | 50,614 | | | | | | 50,561 | | | | | | 50,507 | | |
Securities sold under repurchase agreements
|
| | | | 40,685 | | | | | | 59,481 | | | | | | 70,548 | | |
Weighted average interest rate during the year: | | | | | | | | | | | | | | | | | | | |
Lines of credit
|
| | | | 0.96% | | | | | | 0.52% | | | | | | 0.34% | | |
Federal Home Loan Bank advances
|
| | | | 2.13 | | | | | | 2.38 | | | | | | 2.61 | | |
Junior subordinated debt
|
| | | | 8.00 | | | | | | 8.00 | | | | | | 8.00 | | |
Securities sold under repurchase agreements
|
| | | | 3.95 | | | | | | 4.12 | | | | | | 4.10 | | |
Balance outstanding at end of the year: | | | | | | | | | | | | | | | | | | | |
Lines of credit
|
| | | $ | — | | | | | $ | 47,400 | | | | | $ | 23,000 | | |
Federal Home Loan Bank advances
|
| | | | 642,400 | | | | | | 534,000 | | | | | | 569,000 | | |
Junior subordinated debt
|
| | | | 50,643 | | | | | | 50,590 | | | | | | 50,536 | | |
Securities sold under repurchase agreements
|
| | | | 40,000 | | | | | | 50,000 | | | | | | 60,000 | | |
Weighted average interest rate at end of the year: | | | | | | | | | | | | | | | | | | | |
Lines of credit
|
| | | | —% | | | | | | 0.53% | | | | | | 0.40% | | |
Federal Home Loan Bank advances
|
| | | | 2.10 | | | | | | 2.27 | | | | | | 2.43 | | |
Junior subordinated debt
|
| | | | 8.00 | | | | | | 8.00 | | | | | | 8.00 | | |
Securities sold under repurchase agreements
|
| | | | 3.88 | | | | | | 4.00 | | | | | | 4.05 | | |
| | |
Year Ended September 30,
|
| |||||||||||||||||||||
| | | | | | | | | | | | | | |
Change Fiscal 2017/2016
|
| |||||||||
(Dollars in thousands)
|
| |
2017
|
| |
2016
|
| |
$
|
| |
%
|
| ||||||||||||
Net interest income
|
| | | $ | 139,780 | | | | | $ | 125,015 | | | | | $ | 14,765 | | | | | | 11.8% | | |
Provision for loan losses
|
| | | | 6,426 | | | | | | 417 | | | | | | 6,009 | | | | | | 1,441.0 | | |
Non-interest income
|
| | | | 17,172 | | | | | | 18,927 | | | | | | (1,755) | | | | | | (9.3) | | |
Non-interest expenses
|
| | | | 103,446 | | | | | | 93,769 | | | | | | 9,677 | | | | | | 10.3 | | |
Income tax expense
|
| | | | 16,008 | | | | | | 16,803 | | | | | | (795) | | | | | | (4.7) | | |
Net income
|
| | | $ | 31,072 | | | | | $ | 32,953 | | | | | $ | (1,881) | | | | | | (5.7)% | | |
Return on average assets
|
| | | | 0.60% | | | | | | 0.67% | | | | | | | | | | | | | | |
Return on average equity
|
| | | | 6.86% | | | | | | 7.52% | | | | | | | | | | | | | | |
| | |
Year Ended September 30,
|
| |||||||||
(Dollars in thousands)
|
| |
2017
|
| |
2016
|
| ||||||
Demand deposit account fees
|
| | | $ | 3,669 | | | | | $ | 3,271 | | |
Bank-owned life insurance
|
| | | | 4,936 | | | | | | 4,370 | | |
Title insurance fees
|
| | | | 4,163 | | | | | | 4,198 | | |
Loan fees and service charges
|
| | | | 1,976 | | | | | | 1,971 | | |
(Loss) gain on securities transactions, net
|
| | | | (1,689) | | | | | | 355 | | |
(Loss) gain on sale of loans
|
| | | | (380) | | | | | | 655 | | |
Other non-interest income
|
| | | | 4,497 | | | | | | 4,107 | | |
Total
|
| | | $ | 17,172 | | | | | $ | 18,927 | | |
|
| | |
Year Ended September 30,
|
| |||||||||
(Dollars in thousands)
|
| |
2017
|
| |
2016
|
| ||||||
Compensation and employee benefits expense
|
| | | $ | 62,993 | | | | | $ | 58,115 | | |
Occupancy expense
|
| | | | 13,315 | | | | | | 12,798 | | |
Federal insurance premiums expense
|
| | | | 1,652 | | | | | | 2,381 | | |
Advertising expense
|
| | | | 4,078 | | | | | | 2,938 | | |
Professional fees expense
|
| | | | 1,354 | | | | | | 1,061 | | |
Data processing expense
|
| | | | 2,244 | | | | | | 2,143 | | |
Charitable contributions expense
|
| | | | 3,910 | | | | | | 594 | | |
Other non-interest expense
|
| | | | 13,900 | | | | | | 13,739 | | |
Total
|
| | | $ | 103,446 | | | | | $ | 93,769 | | |
|
| | |
Year Ended September 30,
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
Average
Balance |
| |
Interest and
Dividends |
| |
Yield/
Cost |
| |
Average
Balance |
| |
Interest and
Dividends |
| |
Yield/
Cost |
| |
Average
Balance |
| |
Interest and
Dividends |
| |
Yield/
Cost |
| |||||||||||||||||||||||||||
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans(1)
|
| | | $ | 4,236,825 | | | | | $ | 164,849 | | | | | | 3.89% | | | | | $ | 3,888,992 | | | | | $ | 152,110 | | | | | | 3.91% | | | | | $ | 3,715,533 | | | | | $ | 148,988 | | | | | | 4.01% | | |
Investment securities(2)
|
| | | | 723,398 | | | | | | 19,069 | | | | | | 2.64 | | | | | | 721,941 | | | | | | 16,662 | | | | | | 2.31 | | | | | | 729,392 | | | | | | 14,019 | | | | | | 1.92 | | |
Other interest-earning assets
|
| | | | 29,306 | | | | | | 308 | | | | | | 1.05 | | | | | | 44,544 | | | | | | 205 | | | | | | 0.46 | | | | | | 62,036 | | | | | | 158 | | | | | | 0.25 | | |
Total interest-earning assets
|
| | | | 4,989,529 | | | | | | 184,226 | | | | | | 3.69 | | | | | | 4,655,477 | | | | | | 168,977 | | | | | | 3.63 | | | | | | 4,506,961 | | | | | | 163,165 | | | | | | 3.62 | | |
Non-interest-earning assets
|
| | | | 229,655 | | | | | | | | | | | | | | | | | | 253,741 | | | | | | | | | | | | | | | | | | 244,394 | | | | | | | | | | | | | | |
Total assets
|
| | | $ | 5,219,184 | | | | | $ | 184,226 | | | | | | | | | | | $ | 4,909,218 | | | | | $ | 168,977 | | | | | | | | | | | $ | 4,751,355 | | | | | $ | 163,165 | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest bearing transaction accounts
|
| | | $ | 1,284,418 | | | | | $ | 7,590 | | | | | | 0.59 | | | | | $ | 1,140,460 | | | | | $ | 6,776 | | | | | | 0.59 | | | | | $ | 984,130 | | | | | $ | 5,424 | | | | | | 0.55 | | |
Money market deposit accounts
|
| | | | 270,919 | | | | | | 760 | | | | | | 0.28 | | | | | | 272,575 | | | | | | 763 | | | | | | 0.28 | | | | | | 300,609 | | | | | | 922 | | | | | | 0.31 | | |
Savings, including club deposits
|
| | | | 543,070 | | | | | | 837 | | | | | | 0.15 | | | | | | 523,601 | | | | | | 811 | | | | | | 0.15 | | | | | | 514,934 | | | | | | 933 | | | | | | 0.18 | | |
Certificates of deposit
|
| | | | 1,266,717 | | | | | | 16,394 | | | | | | 1.29 | | | | | | 1,225,833 | | | | | | 15,712 | | | | | | 1.28 | | | | | | 1,230,312 | | | | | | 15,248 | | | | | | 1.24 | | |
Total interest-bearing deposits
|
| | | | 3,365,124 | | | | | | 25,581 | | | | | | 0.76 | | | | | | 3,162,469 | | | | | | 24,062 | | | | | | 0.76 | | | | | | 3,029,985 | | | | | | 22,527 | | | | | | 0.74 | | |
FHLB advances
|
| | | | 627,965 | | | | | | 13,082 | | | | | | 2.08 | | | | | | 564,995 | | | | | | 13,274 | | | | | | 2.35 | | | | | | 621,516 | | | | | | 16,146 | | | | | | 2.60 | | |
Junior subordinated debt
|
| | | | 50,614 | | | | | | 4,177 | | | | | | 8.25 | | | | | | 50,561 | | | | | | 4,177 | | | | | | 8.26 | | | | | | 50,507 | | | | | | 4,177 | | | | | | 8.27 | | |
Other borrowings
|
| | | | 40,685 | | | | | | 1,606 | | | | | | 3.95 | | | | | | 59,481 | | | | | | 2,449 | | | | | | 4.12 | | | | | | 70,548 | | | | | | 2,894 | | | | | | 4.10 | | |
Total borrowings
|
| | | | 719,264 | | | | | | 18,865 | | | | | | 2.62 | | | | | | 675,037 | | | | | | 19,900 | | | | | | 2.95 | | | | | | 742,571 | | | | | | 23,217 | | | | | | 3.13 | | |
Total interest-bearing liabilities
|
| | | $ | 4,084,388 | | | | | $ | 44,446 | | | | | | 1.09 | | | | | $ | 3,837,506 | | | | | $ | 43,962 | | | | | | 1.15 | | | | | $ | 3,772,556 | | | | | $ | 45,744 | | | | | | 1.21 | | |
Non-interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest-bearing deposits
|
| | | | 607,836 | | | | | | | | | | | | | | | | | | 543,943 | | | | | | | | | | | | | | | | | | 487,461 | | | | | | | | | | | | | | |
Other non-interest-bearing liabilities
|
| | | | 73,744 | | | | | | | | | | | | | | | | | | 89,835 | | | | | | | | | | | | | | | | | | 75,095 | | | | | | | | | | | | | | |
Total liabilities
|
| | | | 4,765,968 | | | | | | | | | | | | | | | | | | 4,471,284 | | | | | | | | | | | | | | | | | | 4,335,112 | | | | | | | | | | | | | | |
Total equity
|
| | | | 453,216 | | | | | | | | | | | | | | | | | | 437,934 | | | | | | | | | | | | | | | | | | 416,242 | | | | | | | | | | | | | | |
Total liabilities and equity
|
| | | $ | 5,219,184 | | | | | | | | | | | | | | | | | $ | 4,909,218 | | | | | | | | | | | | | | | | | $ | 4,751,355 | | | | | | | | | | | | | | |
Net interest income
|
| | | | | | | | | $ | 139,780 | | | | | | | | | | | | | | | | | $ | 125,015 | | | | | | | | | | | | | | | | | $ | 117,421 | | | | | | | | |
Interest rate spread(3)
|
| | | | | | | | | | | | | | | | 2.60% | | | | | | | | | | | | | | | | | | 2.48% | | | | | | | | | | | | | | | | | | 2.41% | | |
Net interest-earning assets(4)
|
| | | $ | 905,141 | | | | | | | | | | | | | | | | | $ | 817,971 | | | | | | | | | | | | | | | | | $ | 734,405 | | | | | | | | | | | | | | |
Net interest margin(5)
|
| | | | | | | | | | | | | | | | 2.80% | | | | | | | | | | | | | | | | | | 2.69% | | | | | | | | | | | | | | | | | | 2.61% | | |
Ratio of interest-earning assets to interest-bearing liabilities
|
| | | | 122.16% | | | | | | | | | | | | | | | | | | 121.32% | | | | | | | | | | | | | | | | | | 119.47% | | | | | | | | | | | | | | |
| | |
Year Ended 9/30/2017
Compared to Year Ended 9/30/2016 |
| |
Year Ended 9/30/2016
Compared to Year Ended 9/30/2015 |
| ||||||||||||||||||||||||||||||
| | |
Increase (Decrease)
Due to |
| |
Increase (Decrease)
Due to |
| ||||||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
Volume
|
| |
Rate
|
| |
Total
|
| |
Volume
|
| |
Rate
|
| |
Total
|
| ||||||||||||||||||
Interest income: | | | | | | | | ||||||||||||||||||||||||||||||
Loans
|
| | | $ | 13,605 | | | | | $ | (866) | | | | | $ | 12,739 | | | | | $ | 6,955 | | | | | $ | (3,833) | | | | | $ | 3,122 | | |
Investment securities
|
| | | | 34 | | | | | | 2,373 | | | | | | 2,407 | | | | | | (143) | | | | | | 2,786 | | | | | | 2,643 | | |
Other interest-earning assets
|
| | | | (70) | | | | | | 173 | | | | | | 103 | | | | | | (45) | | | | | | 92 | | | | | | 47 | | |
Total interest-earning assets
|
| | | | 13,569 | | | | | | 1,680 | | | | | | 15,249 | | | | | | 6,767 | | | | | | (955) | | | | | | 5,812 | | |
Interest expense: | | | | | | | | ||||||||||||||||||||||||||||||
Interest-bearing transaction, including attorney escrow
|
| | | | 855 | | | | | | (41) | | | | | | 814 | | | | | | 862 | | | | | | 490 | | | | | | 1,352 | | |
Money market deposit accounts
|
| | | | (5) | | | | | | 2 | | | | | | (3) | | | | | | (86) | | | | | | (73) | | | | | | (159) | | |
Savings, including club deposits
|
| | | | 30 | | | | | | (4) | | | | | | 26 | | | | | | 16 | | | | | | (138) | | | | | | (122) | | |
Retail certificates of deposits
|
| | | | 524 | | | | | | 158 | | | | | | 682 | | | | | | (56) | | | | | | 520 | | | | | | 464 | | |
Total interest-bearing deposits
|
| | | | 1,404 | | | | | | 115 | | | | | | 1,519 | | | | | | 736 | | | | | | 799 | | | | | | 1,535 | | |
FHLB advances
|
| | | | 1,479 | | | | | | (1,671) | | | | | | (192) | | | | | | (1,468) | | | | | | (1,404) | | | | | | (2,872) | | |
Junior subordinated debt
|
| | | | 5 | | | | | | (5) | | | | | | — | | | | | | 4 | | | | | | (4) | | | | | | — | | |
Other borrowings
|
| | | | (774) | | | | | | (69) | | | | | | (843) | | | | | | (454) | | | | | | 9 | | | | | | (445) | | |
Total interest-bearing liabilities
|
| | | | 2,114 | | | | | | (1,630) | | | | | | 484 | | | | | | (1,182) | | | | | | (600) | | | | | | (1,782) | | |
Net change in net interest income
|
| | | $ | 11,455 | | | | | $ | 3,310 | | | | | $ | 14,765 | | | | | $ | 7,949 | | | | | $ | (355) | | | | | $ | 7,594 | | |
|
| | |
At September 30,
|
| |||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
2017
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |||||||||||||||
Non-accrual loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One- to four-family
|
| | | $ | 3,496 | | | | | $ | 4,688 | | | | | $ | 11,770 | | | | | $ | 24,975 | | | | | $ | 39,549 | | |
Commercial and multifamily
|
| | | | 1,510 | | | | | | 4,257 | | | | | | 4,538 | | | | | | 11,499 | | | | | | 9,645 | | |
Construction
|
| | | | — | | | | | | — | | | | | | 639 | | | | | | 2,931 | | | | | | 10,498 | | |
Total real estate loans
|
| | | | 5,006 | | | | | | 8,945 | | | | | | 16,947 | | | | | | 39,405 | | | | | | 59,692 | | |
Commercial business loans
|
| | | | 1,038 | | | | | | 1,608 | | | | | | 1,996 | | | | | | 3,623 | | | | | | 5,267 | | |
Consumer loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | 351 | | | | | | 1,667 | | | | | | 2,251 | | | | | | 9,215 | | | | | | 9,001 | | |
Other consumer loans
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2 | | |
Total consumer loans
|
| | | | 351 | | | | | | 1,667 | | | | | | 2,251 | | | | | | 9,215 | | | | | | 9,003 | | |
Total non-accrual loans(1)
|
| | | | 6,395 | | | | | | 12,220 | | | | | | 21,194 | | | | | | 52,243 | | | | | | 73,962 | | |
Total non-performing loans
|
| | | | 6,395 | | | | | | 12,220 | | | | | | 21,194 | | | | | | 52,243 | | | | | | 73,962 | | |
Real estate owned
|
| | | | 393 | | | | | | 1,260 | | | | | | 3,042 | | | | | | 2,683 | | | | | | 1,614 | | |
Total non-performing assets
|
| | | $ | 6,788 | | | | | $ | 13,480 | | | | | $ | 24,236 | | | | | $ | 54,926 | | | | | $ | 75,576 | | |
Total non-performing loans to total loans
|
| | | | 0.15% | | | | | | 0.31% | | | | | | 0.56% | | | | | | 1.47% | | | | | | 2.20% | | |
Total non-performing assets to total assets
|
| | | | 0.13% | | | | | | 0.27% | | | | | | 0.51% | | | | | | 1.19% | | | | | | 1.68% | | |
| | |
At September 30,
|
| |||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| ||||||||||||||||||||||||||||||
| | |
Days Past Due
|
| |
Days Past Due
|
| ||||||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
30 – 59
|
| |
60 – 89
|
| |
90 or
more |
| |
30 – 59
|
| |
60 – 89
|
| |
90 or
more |
| ||||||||||||||||||
Real estate loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One- to four-family
|
| | | $ | 3,924 | | | | | $ | 932 | | | | | $ | 3,496 | | | | | $ | 9,401 | | | | | $ | 1,338 | | | | | $ | 4,538 | | |
Commercial and multifamily
|
| | | | — | | | | | | 123 | | | | | | 1,510 | | | | | | 1,030 | | | | | | 275 | | | | | | 4,257 | | |
Construction
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial business loans
|
| | | | — | | | | | | 388 | | | | | | 1,038 | | | | | | 60 | | | | | | — | | | | | | 1,608 | | |
Consumer loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | 1,437 | | | | | | 187 | | | | | | 351 | | | | | | 2,855 | | | | | | 436 | | | | | | 1,667 | | |
Other consumer loans
|
| | | | 1 | | | | | | — | | | | | | — | | | | | | 1 | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 5,362 | | | | | $ | 1,630 | | | | | $ | 6,395 | | | | | $ | 13,347 | | | | | $ | 2,049 | | | | | $ | 12,070 | | |
|
| | |
At September 30,
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
2015
|
| |
2014
|
| |
2013
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Days Past Due
|
| |
Days Past Due
|
| |
Days Past Due
|
| |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
30 – 59
|
| |
60 – 89
|
| |
90 or
more |
| |
30 – 59
|
| |
60 – 89
|
| |
90 or
more |
| |
30 – 59
|
| |
60 – 89
|
| |
90 or
more |
| |||||||||||||||||||||||||||
Real estate loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One- to four-family
|
| | | $ | 14,015 | | | | | $ | 3,707 | | | | | $ | 10,106 | | | | | $ | 11,085 | | | | | $ | 4,196 | | | | | $ | 22,600 | | | | | $ | 12,836 | | | | | $ | 4,503 | | | | | $ | 35,681 | | |
Commercial and multifamily
|
| | | | 3,758 | | | | | | 1,232 | | | | | | 3,306 | | | | | | 4,669 | | | | | | 1,552 | | | | | | 10,236 | | | | | | 9,705 | | | | | | 4,592 | | | | | | 9,645 | | |
Construction
|
| | | | — | | | | | | — | | | | | | 639 | | | | | | — | | | | | | 420 | | | | | | 2,931 | | | | | | — | | | | | | — | | | | | | 10,498 | | |
Commercial business loans
|
| | | | 350 | | | | | | 464 | | | | | | 1,729 | | | | | | 337 | | | | | | 131 | | | | | | 3,018 | | | | | | 286 | | | | | | 189 | | | | | | 4,482 | | |
Consumer loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | 3,189 | | | | | | 648 | | | | | | 2,110 | | | | | | 2,587 | | | | | | 694 | | | | | | 8,537 | | | | | | 3,217 | | | | | | 555 | | | | | | 8,040 | | |
Other consumer loans
|
| | | | 8 | | | | | | — | | | | | | — | | | | | | 6 | | | | | | — | | | | | | — | | | | | | 1 | | | | | | — | | | | | | 2 | | |
Total
|
| | | $ | 21,320 | | | | | $ | 6,051 | | | | | $ | 17,890 | | | | | $ | 18,684 | | | | | $ | 6,993 | | | | | $ | 47,322 | | | | | $ | 26,045 | | | | | $ | 9,839 | | | | | $ | 68,348 | | |
|
| | |
At September 30,
|
| |||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
2017
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |||||||||||||||
Classified loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Substandard
|
| | | $ | 30,935 | | | | | $ | 44,885 | | | | | $ | 45,131 | | | | | $ | 86,646 | | | | | $ | 122,623 | | |
Doubtful
|
| | | | — | | | | | | — | | | | | | 49 | | | | | | 1,434 | | | | | | 1,270 | | |
Loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total classified loans
|
| | | | 30,935 | | | | | | 44,885 | | | | | | 45,180 | | | | | | 88,080 | | | | | | 123,893 | | |
Special mention
|
| | | | 14,947 | | | | | | 11,509 | | | | | | 19,957 | | | | | | 29,789 | | | | | | 51,186 | | |
Total criticized loans
|
| | | $ | 45,882 | | | | | $ | 56,394 | | | | | $ | 65,137 | | | | | $ | 117,869 | | | | | $ | 175,079 | | |
|
| | |
At September 30,
|
| |||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| ||||||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
Amount
|
| |
% of
Allowance Amount to Total Allowance |
| |
% of
Allowance to Loans in Category |
| |
Amount
|
| |
% of
Allowance Amount to Total Allowance |
| |
% of
Allowance to Loans in Category |
| ||||||||||||||||||
Real estate loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One- to four-family
|
| | | $ | 18,533 | | | | | | 33.9% | | | | | | 1.2% | | | | | $ | 18,638 | | | | | | 36.0% | | | | | | 1.2% | | |
Commercial and multifamily
|
| | | | 18,029 | | | | | | 33.0 | | | | | | 1.0 | | | | | | 17,390 | | | | | | 33.5 | | | | | | 1.1 | | |
Construction
|
| | | | 5,299 | | | | | | 9.7 | | | | | | 2.4 | | | | | | 5,960 | | | | | | 11.5 | | | | | | 3.2 | | |
Commercial business loans
|
| | | | 8,480 | | | | | | 15.5 | | | | | | 3.2 | | | | | | 5,721 | | | | | | 11.0 | | | | | | 3.2 | | |
Consumer loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | 4,190 | | | | | | 7.7 | | | | | | 0.9 | | | | | | 4,052 | | | | | | 7.8 | | | | | | 0.8 | | |
Other consumer loans
|
| | | | 8 | | | | | | — | | | | | | 0.6 | | | | | | 11 | | | | | | — | | | | | | 0.8 | | |
Total general and allocated allowance
|
| | | | 54,539 | | | | | | 99.8 | | | | | | 1.3 | | | | | | 51,772 | | | | | | 99.8 | | | | | | 1.3 | | |
Unallocated
|
| | | | 94 | | | | | | 0.2 | | | | | | | | | | | | 95 | | | | | | 0.2 | | | | | | | | |
Total allowance for loan losses
|
| | | $ | 54,633 | | | | | | 100.0% | | | | | | 1.3% | | | | | $ | 51,867 | | | | | | 100.0% | | | | | | 1.3% | | |
|
| | |
At September 30,
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
2015
|
| |
2014
|
| |
2013
|
| |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
Amount
|
| |
% of
Allowance Amount to Total Allowance |
| |
% of
Allowance to Loans in Category |
| |
Amount
|
| |
% of
Allowance Amount to Total Allowance |
| |
% of
Allowance to Loans in Category |
| |
Amount
|
| |
% of
Allowance Amount to Total Allowance |
| |
% of
Allowance to Loans in Category |
| |||||||||||||||||||||||||||
Real estate loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One- to four-family
|
| | | $ | 16,442 | | | | | | 28.9% | | | | | | 1.1% | | | | | $ | 12,194 | | | | | | 21.1% | | | | | | 0.8% | | | | | $ | 11,556 | | | | | | 18.8% | | | | | | 0.8% | | |
Commercial and multifamily
|
| | | | 20,352 | | | | | | 35.7 | | | | | | 1.4 | | | | | | 21,888 | | | | | | 37.8 | | | | | | 1.7 | | | | | | 21,308 | | | | | | 34.8 | | | | | | 1.9 | | |
Construction
|
| | | | 6,248 | | | | | | 11.0 | | | | | | 4.7 | | | | | | 6,108 | | | | | | 10.5 | | | | | | 4.6 | | | | | | 7,284 | | | | | | 11.9 | | | | | | 5.7 | | |
Commercial business
loans |
| | | | 7,094 | | | | | | 12.5 | | | | | | 4.1 | | | | | | 7,297 | | | | | | 12.6 | | | | | | 6.2 | | | | | | 7,240 | | | | | | 11.8 | | | | | | 6.2 | | |
Consumer loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity loans
and advances |
| | | | 6,111 | | | | | | 10.7 | | | | | | 1.2 | | | | | | 5,891 | | | | | | 10.2 | | | | | | 1.1 | | | | | | 5,796 | | | | | | 9.5 | | | | | | 1.1 | | |
Other consumer loans
|
| | | | 4 | | | | | | — | | | | | | 0.4 | | | | | | 81 | | | | | | 0.1 | | | | | | 6.9 | | | | | | 82 | | | | | | 0.1 | | | | | | 6.2 | | |
Total general
and allocated allowance |
| | | | 56,251 | | | | | | 98.8 | | | | | | 1.5 | | | | | | 53,459 | | | | | | 92.3 | | | | | | 1.5 | | | | | | 53,266 | | | | | | 86.9 | | | | | | 1.6 | | |
Unallocated
|
| | | | 697 | | | | | | 1.2 | | | | | | — | | | | | | 4,445 | | | | | | 7.7 | | | | | | — | | | | | | 8,026 | | | | | | 13.1 | | | | | | — | | |
Total allowance for loan losses
|
| | | $ | 56,948 | | | | | | 100.0% | | | | | | 1.5% | | | | | $ | 57,904 | | | | | | 100.0% | | | | | | 1.6% | | | | | $ | 61,292 | | | | | | 100.0% | | | | | | 1.8% | | |
|
| | |
At or For the Year Ended September 30,
|
| |||||||||||||||||||||||||||
(Dollars in thousands)
|
| |
2017
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |||||||||||||||
Allowance at beginning of period
|
| | | $ | 51,867 | | | | | $ | 56,948 | | | | | $ | 57,904 | | | | | $ | 61,292 | | | | | $ | 50,304 | | |
Provision for loan losses
|
| | | | 6,426 | | | | | | 417 | | | | | | 5,099 | | | | | | 8,741 | | | | | | 23,264 | | |
Charge-offs: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One- to four-family
|
| | | | (1,402) | | | | | | (3,496) | | | | | | (4,280) | | | | | | (10,614) | | | | | | (3,875) | | |
Commercial and multifamily
|
| | | | (1,080) | | | | | | (879) | | | | | | (310) | | | | | | (174) | | | | | | (5,902) | | |
Construction
|
| | | | — | | | | | | (321) | | | | | | (334) | | | | | | (1,295) | | | | | | (2,481) | | |
Total real estate loans
|
| | | | (2,482) | | | | | | (4,696) | | | | | | (4,924) | | | | | | (12,083) | | | | | | (12,258) | | |
Commercial business loans
|
| | | | (606) | | | | | | (458) | | | | | | (1,246) | | | | | | (366) | | | | | | (2,108) | | |
Consumer loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | (1,140) | | | | | | (1,053) | | | | | | (2,777) | | | | | | (912) | | | | | | (1,111) | | |
Other consumer loans
|
| | | | (16) | | | | | | (12) | | | | | | (1) | | | | | | (14) | | | | | | (22) | | |
Total consumer loans
|
| | | | (1,156) | | | | | | (1,065) | | | | | | (2,778) | | | | | | (926) | | | | | | (1,133) | | |
Total charge-offs
|
| | | | (4,244) | | | | | | (6,219) | | | | | | (8,948) | | | | | | (13,375) | | | | | | (15,499) | | |
Recoveries: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One- to four-family
|
| | | | 268 | | | | | | 158 | | | | | | 557 | | | | | | 780 | | | | | | 782 | | |
Commercial and multifamily
|
| | | | 75 | | | | | | 23 | | | | | | 55 | | | | | | 55 | | | | | | 1,922 | | |
Construction
|
| | | | — | | | | | | 76 | | | | | | 1,222 | | | | | | 94 | | | | | | 416 | | |
Total real estate loans
|
| | | | 343 | | | | | | 257 | | | | | | 1,834 | | | | | | 929 | | | | | | 3,120 | | |
Commercial business loans
|
| | | | 182 | | | | | | 408 | | | | | | 1,020 | | | | | | 199 | | | | | | 77 | | |
Consumer: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | 59 | | | | | | 55 | | | | | | 36 | | | | | | 118 | | | | | | 24 | | |
Other consumer loans
|
| | | | — | | | | | | 1 | | | | | | 3 | | | | | | — | | | | | | 2 | | |
Total consumer loans
|
| | | | 59 | | | | | | 56 | | | | | | 39 | | | | | | 118 | | | | | | 26 | | |
Total recoveries
|
| | | | 584 | | | | | | 721 | | | | | | 2,893 | | | | | | 1,246 | | | | | | 3,223 | | |
Net charge-offs
|
| | | | (3,660) | | | | | | (5,498) | | | | | | (6,055) | | | | | | (12,129) | | | | | | (12,276) | | |
Allowance at end of period
|
| | | $ | 54,633 | | | | | $ | 51,867 | | | | | $ | 56,948 | | | | | $ | 57,904 | | | | | $ | 61,292 | | |
Total loans outstanding
|
| | | $ | 4,353,121 | | | | | $ | 3,977,634 | | | | | $ | 3,816,389 | | | | | $ | 3,544,536 | | | | | $ | 3,363,201 | | |
Average loans outstanding
|
| | | $ | 4,236,825 | | | | | $ | 3,888,992 | | | | | $ | 3,715,533 | | | | | $ | 3,404,031 | | | | | $ | 3,271,330 | | |
Ratio of allowance to non-performing loans
|
| | | | 854.31% | | | | | | 424.44% | | | | | | 268.70% | | | | | | 110.84% | | | | | | 82.87% | | |
Ratio of allowance to total loans
|
| | | | 1.26% | | | | | | 1.30% | | | | | | 1.49% | | | | | | 1.63% | | | | | | 1.82% | | |
Ratio of net charge-offs to average loans
|
| | | | 0.09% | | | | | | 0.14% | | | | | | 0.16% | | | | | | 0.36% | | | | | | 0.38% | | |
| | |
Twelve Month
Net Interest Income |
| |
Net Portfolio Value
|
| ||||||||||||
Change in Interest Rates (Basis Points) |
| |
Percentage
Change |
| |
Estimated
NPV |
| |
Percentage
Change |
| |||||||||
+200
|
| | | | 1.4 | | | | | $ | 607,932 | | | | | | (16.9) | | |
+100
|
| | | | 1.0 | | | | | | 674,387 | | | | | | (7.9) | | |
0
|
| | | | — | | | | | | 731,942 | | | | | | — | | |
-100
|
| | | | (2.5) | | | | | | 754,603 | | | | | | 3.1 | | |
| | | | | | | | |
Payments due by period
|
| |||||||||||||||||||||
(Dollars in thousands)
|
| |
Total
|
| |
Less than
One Year |
| |
One to
Three Years |
| |
Three to
Five Years |
| |
More Than
Five Years |
| |||||||||||||||
Borrowed funds
|
| | | $ | 733,043 | | | | | $ | 280,000 | | | | | $ | 338,000 | | | | | $ | 64,400 | | | | | $ | 50,643 | | |
Commitments to fund loans
|
| | | | 104,650 | | | | | | 104,650 | | | | | | — | | | | | | — | | | | | | — | | |
Unused lines of credit
|
| | | | 664,653 | | | | | | 161,699 | | | | | | 213,601 | | | | | | 21,522 | | | | | | 267,831 | | |
Standby letters of credit
|
| | | | 10,381 | | | | | | 5,146 | | | | | | 3,651 | | | | | | 19 | | | | | | 1,566 | | |
Operating lease obligations
|
| | | | 20,897 | | | | | | 3,496 | | | | | | 5,246 | | | | | | 3,729 | | | | | | 8,426 | | |
Total
|
| | | $ | 1,533,624 | | | | | $ | 554,990 | | | | | $ | 560,498 | | | | | $ | 89,670 | | | | | $ | 328,465 | | |
|
Directors
|
| |
Position(s) Held With
Columbia Financial and Columbia Bank |
| |
Age
|
| |
Director Since
|
| |
Current Term
to Expire |
|
Noel R. Holland | | |
Chairman
|
| |
66
|
| |
1995
|
| |
2018
|
|
Frank Czerwinski | | |
Director
|
| |
72
|
| |
1994
|
| |
2020
|
|
Raymond G. Hallock | | |
Director
|
| |
74
|
| |
1999
|
| |
2018
|
|
Thomas J. Kemly | | |
President, Chief Executive
Officer and Director |
| |
59
|
| |
2006
|
| |
2019
|
|
Henry Kuiken | | |
Director
|
| |
74
|
| |
1987
|
| |
2019
|
|
Michael Massood, Jr. | | |
Director
|
| |
63
|
| |
2003
|
| |
2020
|
|
Elizabeth E. Randall | | |
Director
|
| |
64
|
| |
2003
|
| |
2020
|
|
John R. Salvetti | | |
Director
|
| |
67
|
| |
2017
|
| |
2019
|
|
Robert Van Dyk | | |
Director
|
| |
64
|
| |
1994
|
| |
2018
|
|
Name
|
| |
Position
|
|
Thomas J. Kemly | | | President and Chief Executive Officer | |
E. Thomas Allen, Jr. | | | Senior Executive Vice President and Chief Operating Officer | |
Dennis E. Gibney, CFA | | | Executive Vice President and Chief Financial Officer | |
Geri M. Kelly | | | Executive Vice President and Human Resources Officer | |
John Klimowich | | | Executive Vice President and Chief Risk Officer | |
Mark S. Krukar | | | Executive Vice President and Chief Lending Officer | |
Brian W. Murphy | | | Executive Vice President and Operations Officer | |
Director
|
| |
Audit
Committee |
| |
Compensation
Committee |
| |
Nominating
and Governance Committee |
| |
Risk
Committee |
|
Noel R. Holland
|
| |
X
|
| |
X*
|
| |
X
|
| |
X*
|
|
Frank Czerwinski
|
| | | | |
X
|
| |
X*
|
| |
X
|
|
Raymond G. Hallock
|
| |
X
|
| | | | |
X
|
| |
X
|
|
Thomas J. Kemly
|
| | | | | | | | | | |
X
|
|
Henry Kuiken
|
| | | | |
X
|
| | | | |
X
|
|
Michael Massood, Jr.
|
| |
X*
|
| | | | | | | |
X
|
|
Elizabeth E. Randall
|
| |
X
|
| | | | |
X
|
| |
X
|
|
John R. Salvetti
|
| | | | |
X
|
| | | | |
X
|
|
Robert Van Dyk
|
| | | | |
X
|
| | | | |
X
|
|
Number of Meetings in Fiscal 2017
|
| |
5
|
| |
9
|
| |
5
|
| |
4
|
|
Name
|
| |
Fees
Earned or Paid in Cash |
| |
Non-Equity
Incentive Plan Compensation |
| |
Nonqualified
Deferred Compensation Earnings |
| |
All Other
Compensation(1) |
| |
Total
|
| |||||||||||||||
Frank Czerwinski
|
| | | $ | 116,774 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,122 | | | | | $ | 117,896 | | |
Raymond G. Hallock
|
| | | | 109,075 | | | | | | — | | | | | | — | | | | | | 4,838 | | | | | | 113,913 | | |
Noel R. Holland
|
| | | | 195,099 | | | | | | — | | | | | | — | | | | | | 4,990 | | | | | | 200,089 | | |
Henry Kuiken
|
| | | | 109,274 | | | | | | — | | | | | | — | | | | | | 9,483 | | | | | | 118,757 | | |
Michael Massood, Jr.
|
| | | | 114,174 | | | | | | — | | | | | | — | | | | | | 23,652 | | | | | | 137,826 | | |
Elizabeth E. Randall
|
| | | | 111,675 | | | | | | — | | | | | | — | | | | | | 1,053 | | | | | | 112,728 | | |
Jack R. Salvetti
|
| | | | 45,150 | | | | | | — | | | | | | — | | | | | | — | | | | | | 45,150 | | |
Robert Van Dyk
|
| | | | 106,674 | | | | | | — | | | | | | — | | | | | | 15,768 | | | | | | 122,442 | | |
|
Annual retainer for all board members (except Chairman of the Board)
|
| | | $ | 67,800 | | |
|
Annual retainer for Chairman of the Board
|
| | | | 134,500 | | |
|
Annual retainer for Nominating and Governance Committee members
|
| | | | 5,000 | | |
|
Annual retainer for Audit Committee Chairman
|
| | | | 7,500 | | |
|
Additional fee per board meeting (except for Chairman of the Board)
|
| | | | 1,300 | | |
|
Additional fee per board meeting (Chairman of the Board)
|
| | | | 1,500 | | |
Name
|
| |
Fiscal
Year |
| |
Salary
|
| |
Bonus
|
| |
Non-Equity
Incentive Plan Compensation |
| |
Nonqualified
Deferred Compensation Earnings |
| |
All Other
Compensation(1) |
| |
Total
|
| ||||||||||||||||||
Thomas J. Kemly
President and Chief Executive Officer |
| |
2017
|
| | | $ | 728,416 | | | | | $ | 345,099 | | | | | $ | — | | | | | $ | — | | | | | $ | 70,026 | | | | | $ | 1,143,541 | | |
Dennis E. Gibney
Executive Vice President and Chief Financial Officer |
| |
2017
|
| | | | 375,807 | | | | | | 115,000 | | | | | | — | | | | | | — | | | | | | 14,727 | | | | | | 505,534 | | |
E. Thomas Allen, Jr.
Executive Vice President and Chief Operating Officer |
| |
2017
|
| | | | 436,538 | | | | | | 175,000 | | | | | | — | | | | | | — | | | | | | 37,399 | | | | | | 648,937 | | |
| | |
Mr. Kemly
|
| |
Mr. Gibney
|
| |
Mr. Allen
|
| |||||||||
Matching contributions to 401(k) plan
|
| | | $ | 8,100 | | | | | $ | 8,100 | | | | | $ | 8,100 | | |
Executive term life insurance premiums
|
| | | | 19,931 | | | | | | 5,838 | | | | | | 13,351 | | |
Car allowances
|
| | | | 17,650 | | | | | | — | | | | | | 15,151 | | |
Mobile phone allowances
|
| | | | 851 | | | | | | 789 | | | | | | 797 | | |
Club dues
|
| | | | 23,494 | | | | | | — | | | | | | — | | |
Name
|
| |
Number of
Shares(1) |
| |
Aggregate
Purchase Price(1) |
| |
Percent of
Outstanding Shares at Minimum of Offering Range(2) |
| |||||||||
Directors: | | | | | | | | | | | | | | | | | | | |
Noel R. Holland
|
| | | | 55,000 | | | | | $ | 550,000 | | | | |
|
*
|
| |
Frank Czerwinski
|
| | | | 55,000 | | | | | | 550,000 | | | | |
|
*
|
| |
Raymond G. Hallock
|
| | | | 55,000 | | | | | | 550,000 | | | | |
|
*
|
| |
Thomas J. Kemly
|
| | | | 55,000 | | | | | | 550,000 | | | | |
|
*
|
| |
Henry Kuiken
|
| | | | 55,000 | | | | | | 550,000 | | | | |
|
*
|
| |
Michael Massood, Jr.
|
| | | | 55,000 | | | | | | 550,000 | | | | |
|
*
|
| |
Elizabeth E. Randall
|
| | | | 50,000 | | | | | | 500,000 | | | | |
|
*
|
| |
John R. Salvetti(3)
|
| | | | 35,000 | | | | | | 350,000 | | | | |
|
*
|
| |
Robert Van Dyk
|
| | | | 55,000 | | | | | | 550,000 | | | | |
|
*
|
| |
Executive Officers Who Are Not Also Directors: | | | | | | | | | | | | | | | | | | | |
E. Thomas Allen, Jr.
|
| | | | 55,000 | | | | | | 550,000 | | | | |
|
*
|
| |
Dennis E. Gibney
|
| | | | 55,000 | | | | | | 550,000 | | | | |
|
*
|
| |
Geri M. Kelly
|
| | | | 55,000 | | | | | | 550,000 | | | | |
|
*
|
| |
John Klimowich
|
| | | | 50,000 | | | | | | 500,000 | | | | |
|
*
|
| |
Mark S. Krukar
|
| | | | 30,000 | | | | | | 300,000 | | | | |
|
*
|
| |
Brian W. Murphy
|
| | | | 20,000 | | | | | | 200,000 | | | | |
|
*
|
| |
Company Name and Ticker Symbol
|
| |
Headquarters
|
| |
Total Assets
|
| |||
| | | | | |
(in millions)
|
| |||
Beneficial Bancorp, Inc. (BNCL)
|
| | Philadelphia, PA | | | | $ | 5,799 | | |
Dime Community Bancshares, Inc. (DCOM)
|
| | Brooklyn, NY | | | | | 6,403 | | |
Kearny Financial Corp. (KRNY)
|
| | Fairfield, NJ | | | | | 4,844 | | |
Northfield Bancorp, Inc. (NFBK)
|
| | Woodbridge, NJ | | | | | 3,991 | | |
OceanFirst Financial Corp. (OCFC)
|
| | Toms River, NJ | | | | | 5,416 | | |
Oritani Financial Corp. (ORIT)
|
| |
Washington Township, NJ
|
| | | | 4,122 | | |
TrustCo Bank Corp. NY (TRST)
|
| | Glenville, NY | | | | | 4,908 | | |
First Connecticut Bancorp, Inc. (FBNK)
|
| | Farmington, CT | | | | | 3,050 | | |
Meridian Bancorp, Inc. (EBSB)
|
| | Peabody, MA | | | | | 5,299 | | |
United Financial Bancorp, Inc. (UBNK)
|
| | Glastonbury, CT | | | | | 7,114 | | |
| | |
Non-Fully Converted
Price to Core Earnings Multiple(1) |
| |
Non-Fully Converted
Price to Book Value Ratio |
| |
Non-Fully Converted
Price to Tangible Book Value Ratio |
| |||||||||
Columbia Financial (pro forma): | | | | | | | | | | | | | | | | | | | |
Minimum
|
| | | | 22.71x | | | | | | 99.11% | | | | | | 99.90% | | |
Midpoint
|
| | | | 26.71 | | | | | | 109.41 | | | | | | 110.13 | | |
Maximum
|
| | | | 30.70 | | | | | | 118.34 | | | | | | 119.19 | | |
Adjusted maximum
|
| | | | 35.29 | | | | | | 127.55 | | | | | | 128.37 | | |
Peer group companies as of February 2, 2018: | | | | | | | | | | | | | | | | | | | |
Average
|
| | | | 22.15x | | | | | | 137.58% | | | | | | 151.61% | | |
Median
|
| | | | 20.98 | | | | | | 133.16 | | | | | | 143.53 | | |
| | |
Fully Converted
Price to Core Earnings Multiple(1) |
| |
Fully Converted
Price to Book Value Ratio |
| |
Fully Converted
Price to Tangible Book Value Ratio |
| |||||||||
Columbia Financial (pro forma): | | | | | | | | | | | | | | | | | | | |
Minimum
|
| | | | 21.86x | | | | | | 67.80% | | | | | | 68.17% | | |
Midpoint
|
| | | | 25.55 | | | | | | 72.46 | | | | | | 72.83 | | |
Maximum
|
| | | | 29.18 | | | | | | 76.39 | | | | | | 76.69 | | |
Adjusted maximum
|
| | | | 33.30 | | | | | | 80.13 | | | | | | 80.45 | | |
Peer group companies as of February 2, 2018: | | | | | | | | | | | | | | | | | | | |
Average
|
| | | | 22.15x | | | | | | 137.58% | | | | | | 151.61% | | |
Median
|
| | | | 20.98 | | | | | | 133.16 | | | | | | 143.53 | | |
| | |
Page
|
| |||
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | | |
| | | | F-8 | | |
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Assets
|
| | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 100,914 | | | | | $ | 45,622 | | |
Short-term investments
|
| | | | 61 | | | | | | 72 | | |
Total cash and cash equivalents
|
| | | | 100,975 | | | | | | 45,694 | | |
Securities available-for-sale, at fair value
|
| | | | 557,176 | | | | | | 771,779 | | |
Securities held-to-maturity at amortized cost (fair value of $131,822 and
$0 at September 30, 2017 and 2016, respectively) |
| | | | 132,939 | | | | | | — | | |
Federal Home Loan Bank stock
|
| | | | 35,844 | | | | | | 34,002 | | |
Loans receivable, net
|
| | | | 4,307,623 | | | | | | 3,932,242 | | |
Accrued interest receivable
|
| | | | 14,687 | | | | | | 13,156 | | |
Real estate owned
|
| | | | 393 | | | | | | 1,260 | | |
Office properties and equipment, net
|
| | | | 40,835 | | | | | | 37,858 | | |
Bank-owned life insurance
|
| | | | 149,432 | | | | | | 141,627 | | |
Deferred tax assets, net
|
| | | | 13,157 | | | | | | 14,525 | | |
Goodwill and Intangible assets
|
| | | | 6,019 | | | | | | 6,124 | | |
Other assets
|
| | | | 70,248 | | | | | | 39,145 | | |
Total assets
|
| | | | 5,429,328 | | | | | | 5,037,412 | | |
Liabilities and Stockholder’s Equity
|
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | |
Deposits
|
| | | | 4,123,428 | | | | | | 3,822,815 | | |
Borrowings
|
| | | | 733,043 | | | | | | 681,990 | | |
Advance payments by borrowers for taxes and insurance
|
| | | | 27,118 | | | | | | 29,173 | | |
Accrued expenses and other liabilities
|
| | | | 69,825 | | | | | | 63,770 | | |
Total liabilities
|
| | | | 4,953,414 | | | | | | 4,597,748 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Stockholder’s equity: | | | | | | | | | | | | | |
Preferred stock, $0.01 par value. Authorized 1,000 shares; issued none
|
| | | | — | | | | | | — | | |
Common stock, $0.01 par value. Authorized 2,000 shares; issued and
outstanding 10 shares |
| | | | — | | | | | | — | | |
Retained earnings
|
| | | | 522,094 | | | | | | 491,022 | | |
Accumulated other comprehensive loss, net of tax
|
| | | | (46,180) | | | | | | (51,358) | | |
Total stockholder’s equity
|
| | | | 475,914 | | | | | | 439,664 | | |
Total liabilities and stockholder’s equity
|
| | | $ | 5,429,328 | | | | | $ | 5,037,412 | | |
|
| | |
2017
|
| |
2016
|
| | ||||||||
| | |
(In thousands)
|
| ||||||||||||
Interest and dividend income: | | | | | | | | | | | | | | | ||
Loans receivable
|
| | | $ | 164,849 | | | | | $ | 152,110 | | | | ||
Securities available-for-sale
|
| | | | 17,163 | | | | | | 15,145 | | | | ||
Securities held-to-maturity
|
| | | | 68 | | | | | | — | | | | ||
Federal funds and interest earning deposits
|
| | | | 308 | | | | | | 205 | | | | ||
Federal Home Loan Bank stock dividends
|
| | | | 1,838 | | | | | | 1,517 | | | | ||
Total interest and dividend income
|
| | | | 184,226 | | | | | | 168,977 | | | | ||
Interest expense: | | | | | | | | | | | | | | | ||
Deposits
|
| | | | 25,581 | | | | | | 24,062 | | | | ||
Borrowings
|
| | | | 18,865 | | | | | | 19,900 | | | | ||
Total interest expense
|
| | | | 44,446 | | | | | | 43,962 | | | | ||
Net interest income
|
| | | | 139,780 | | | | | | 125,015 | | | | ||
Provision for loan losses
|
| | | | 6,426 | | | | | | 417 | | | | ||
Net interest income after provision for loan losses
|
| | | | 133,354 | | | | | | 124,598 | | | | ||
Non-interest income: | | | | | | | | | | | | | | | ||
Demand deposit account fees
|
| | | | 3,669 | | | | | | 3,271 | | | | ||
Bank-owned life insurance
|
| | | | 4,936 | | | | | | 4,370 | | | | ||
Title insurance fees
|
| | | | 4,163 | | | | | | 4,198 | | | | ||
Loan fees and service charges
|
| | | | 1,976 | | | | | | 1,971 | | | | ||
(Loss) gain on securities transactions, net
|
| | | | (1,689) | | | | | | 355 | | | | ||
(Loss) gain on sale of loans
|
| | | | (380) | | | | | | 655 | | | | ||
Other non-interest income
|
| | | | 4,497 | | | | | | 4,107 | | | | ||
Total non-interest income
|
| | | | 17,172 | | | | | | 18,927 | | | | ||
Non-interest expense: | | | | | | | | | | | | | | | ||
Compensation and employee benefits expense
|
| | | | 62,993 | | | | | | 58,115 | | | | ||
Occupancy expense
|
| | | | 13,315 | | | | | | 12,798 | | | | ||
Federal insurance premiums expense
|
| | | | 1,652 | | | | | | 2,381 | | | | ||
Advertising expense
|
| | | | 4,078 | | | | | | 2,938 | | | | ||
Professional fees expense
|
| | | | 1,354 | | | | | | 1,061 | | | | ||
Data processing expense
|
| | | | 2,244 | | | | | | 2,143 | | | | ||
Charitable Contributions
|
| | | | 3,910 | | | | | | 594 | | | | ||
Other non-interest expense
|
| | | | 13,900 | | | | | | 13,739 | | | | ||
Total non-interest expense
|
| | | | 103,446 | | | | | | 93,769 | | | | ||
Income before income tax expense
|
| | | | 47,080 | | | | | | 49,756 | | | | ||
Income tax expense
|
| | | | 16,008 | | | | | | 16,803 | | | | ||
Net income
|
| | | $ | 31,072 | | | | | $ | 32,953 | | | | ||
|
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Net income
|
| | | $ | 31,072 | | | | | $ | 32,953 | | |
Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | |
Unrealized (loss) gain on securities:
|
| | | | | | | | | | | | |
Unrealized holding (loss) gain arising during the period
|
| | | | (11,436) | | | | | | 4,674 | | |
Accretion of unrealized loss on securities reclassified as held-to-maturity
|
| | | | 8 | | | | | | — | | |
Reclassification adjustment for loss (gain) included in net income
|
| | | | 1,689 | | | | | | (355) | | |
| | | | | (9,739) | | | | | | 4,319 | | |
Employee benefit plans: | | | | | | | | | | | | | |
Amortization of prior service cost included in net income
|
| | | | (73) | | | | | | (73) | | |
Reclassification adjustment of actuarial net loss included in net income
|
| | | | 7,593 | | | | | | 5,864 | | |
Change in funded status of retirement obligations
|
| | | | 7,397 | | | | | | (21,397) | | |
| | | | | 14,917 | | | | | | (15,606) | | |
Total other comprehensive income (loss)
|
| | | | 5,178 | | | | | | (11,287) | | |
Total comprehensive income, net of tax
|
| | | $ | 36,250 | | | | | $ | 21,666 | | |
|
| | |
Retained
Earnings |
| |
Accumulated other
comprehensive loss, net of tax |
| |
Total
stockholder’s equity |
| |||||||||
| | |
(In thousands)
|
| |||||||||||||||
Balance at September 30, 2015
|
| | | $ | 458,069 | | | | | $ | (40,071) | | | | | $ | 417,998 | | |
Net income
|
| | | | 32,953 | | | | | | — | | | | | | 32,953 | | |
Other comprehensive loss
|
| | | | — | | | | | | (11,287) | | | | | | (11,287) | | |
Balance at September 30, 2016
|
| | | | 491,022 | | | | | | (51,358) | | | | | | 439,664 | | |
Net income
|
| | | | 31,072 | | | | | | — | | | | | | 31,072 | | |
Other comprehensive income
|
| | | | — | | | | | | 5,178 | | | | | | 5,178 | | |
Balance at September 30, 2017
|
| | | $ | 522,094 | | | | | $ | (46,180) | | | | | $ | 475,914 | | |
|
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 31,072 | | | | | $ | 32,953 | | |
Adjustments to reconcile net income to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Amortization of deferred loan origination fees
|
| | | | 1,006 | | | | | | 745 | | |
Net amortization of premiums and discounts on securities
|
| | | | 1,460 | | | | | | 2,013 | | |
Amortization on mortgage servicing rights
|
| | | | 105 | | | | | | 105 | | |
Amortization of debt issuance costs
|
| | | | 53 | | | | | | 53 | | |
Depreciation and amortization of office properties and equipment
|
| | | | 3,364 | | | | | | 3,178 | | |
Provision for loan losses
|
| | | | 6,426 | | | | | | 417 | | |
Loss (gain) on securities transactions, net
|
| | | | 1,689 | | | | | | (355) | | |
Proceeds from sales of loans held-for-sale
|
| | | | 40,564 | | | | | | 42,411 | | |
Origination of loans held-for-sale
|
| | | | (40,280) | | | | | | (23,812) | | |
Loss (gain) on sale of loans
|
| | | | 380 | | | | | | (655) | | |
(Gain) loss on real estate owned, net
|
| | | | (233) | | | | | | 441 | | |
Loss on disposal of office properties and equipment
|
| | | | 169 | | | | | | 38 | | |
Deferred tax (benefit) expense
|
| | | | (1,426) | | | | | | 2,930 | | |
Increase in accrued interest receivable
|
| | | | (1,531) | | | | | | (1,864) | | |
Increase in cash surrender value of bank-owned life insurance
|
| | | | (4,282) | | | | | | (4,370) | | |
Increase in other assets
|
| | | | (11,681) | | | | | | (269) | | |
Increase in accrued expenses and other liabilities
|
| | | | 9,840 | | | | | | 5,033 | | |
Net cash provided by operating activities
|
| | | | 36,695 | | | | | | 58,992 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Proceeds from sales of securities available-for-sale
|
| | | | 187,376 | | | | | | 164,203 | | |
Proceeds from principal paydowns/maturities on securities available-for-sale
|
| | | | 68,409 | | | | | | 96,956 | | |
Proceeds from principal paydowns/maturities on securities held-to-maturity
|
| | | | 769 | | | | | | — | | |
Purchases of securities available-for-sale
|
| | | | (162,788) | | | | | | (357,477) | | |
Purchases of securities held-to-maturity
|
| | | | (30,484) | | | | | | — | | |
Proceeds from sales of loans receivable
|
| | | | 62,407 | | | | | | 28,624 | | |
Purchases of loans receivable
|
| | | | (20,473) | | | | | | (21,149) | | |
Increase in loans receivable
|
| | | | (425,926) | | | | | | (196,106) | | |
Purchase of bank-owned life insurance
|
| | | | (4,500) | | | | | | (6,000) | | |
Proceeds from bank-owned life insurance
|
| | | | 977 | | | | | | — | | |
Proceeds of Federal Home Loan Bank stock
|
| | | | 33,193 | | | | | | 16,560 | | |
Purchase of Federal Home Loan Bank stock
|
| | | | (35,035) | | | | | | (16,138) | | |
Proceeds from sales of office properties and equipment
|
| | | | 17 | | | | | | — | | |
Additions to office properties and equipment
|
| | | | (6,527) | | | | | | (3,665) | | |
Proceeds from sales of real estate owned
|
| | | | 1,614 | | | | | | 3,620 | | |
Net cash used in investing activities
|
| | | | (330,971) | | | | | | (290,572) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Net increase in deposits
|
| | | $ | 300,613 | | | | | $ | 250,191 | | |
Proceeds from long-term borrowings
|
| | | | 168,400 | | | | | | 10,000 | | |
Payments for maturities, calls, and payoffs on long-term borrowings
|
| | | | (90,000) | | | | | | (55,000) | | |
(Decrease) increase in short-term borrowings
|
| | | | (27,400) | | | | | | 24,400 | | |
(Decrease) increase in advance payments by borrowers for taxes and insurance
|
| | | | (2,056) | | | | | | 4,505 | | |
Net cash provided by financing activities
|
| | | | 349,557 | | | | | | 234,096 | | |
Net increase in cash and cash equivalents
|
| | | | 55,281 | | | | | | 2,516 | | |
Cash and cash equivalents at beginning of year
|
| | | | 45,694 | | | | | | 43,178 | | |
Cash and cash equivalents at end of year
|
| | | $ | 100,975 | | | | | $ | 45,694 | | |
Cash paid during the period for: | | | | | | | | | | | | | |
Interest
|
| | | $ | 44,397 | | | | | $ | 44,545 | | |
Income taxes payments, net
|
| | | | 27,784 | | | | | | 8,038 | | |
Noncash investing and financing activities: | | | | | | | | | | | | | |
Transfer of loans receivable to real estate owned
|
| | | $ | 515 | | | | | $ | 2,278 | | |
Securitization of loans
|
| | | | — | | | | | | 17,169 | | |
Transfer of securities from available-for-sale to held-to-maturity
|
| | | | 103,680 | | | | | | — | | |
| | |
September 30, 2017
|
| |||||||||||||||||||||
| | |
Amortized
cost |
| |
Gross
unrealized gains |
| |
Gross
unrealized losses |
| |
Fair value
|
| ||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||
U.S. government and agency obligations
|
| | | $ | 24,954 | | | | | $ | 35 | | | | | $ | (116) | | | | | $ | 24,873 | | |
Mortgage-backed securities and CMOs
|
| | | | 479,927 | | | | | | 652 | | | | | | (7,088) | | | | | | 473,491 | | |
Municipal obligations
|
| | | | 1,357 | | | | | | — | | | | | | — | | | | | | 1,357 | | |
Corporate debt securities
|
| | | | 49,489 | | | | | | 536 | | | | | | (532) | | | | | | 49,493 | | |
Trust preferred securities
|
| | | | 5,000 | | | | | | — | | | | | | (292) | | | | | | 4,708 | | |
Equity securities
|
| | | | 2,482 | | | | | | 826 | | | | | | (54) | | | | | | 3,254 | | |
| | | | $ | 563,209 | | | | | $ | 2,049 | | | | | $ | (8,082) | | | | | $ | 557,176 | | |
|
| | |
September 30, 2016
|
| |||||||||||||||||||||
| | |
Amortized
cost |
| |
Gross
unrealized gains |
| |
Gross
unrealized losses |
| |
Fair value
|
| ||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||
U.S. government and agency obligations
|
| | | $ | 60,375 | | | | | $ | 549 | | | | | $ | (45) | | | | | $ | 60,879 | | |
Mortgage-backed securities and CMOs
|
| | | | 609,970 | | | | | | 10,632 | | | | | | (626) | | | | | | 619,976 | | |
Municipal obligations
|
| | | | 16,500 | | | | | | — | | | | | | — | | | | | | 16,500 | | |
Corporate debt securities
|
| | | | 63,982 | | | | | | 1,306 | | | | | | (637) | | | | | | 64,651 | | |
Trust preferred securities
|
| | | | 9,672 | | | | | | — | | | | | | (2,893) | | | | | | 6,779 | | |
Equity securities
|
| | | | 2,482 | | | | | | 586 | | | | | | (74) | | | | | | 2,994 | | |
| | | | $ | 762,981 | | | | | $ | 13,073 | | | | | $ | (4,275) | | | | | $ | 771,779 | | |
|
| | |
September 30, 2017
|
| |||||||||
| | |
Amortized
cost |
| |
Fair value
|
| ||||||
| | |
(In thousands)
|
| |||||||||
One year or less
|
| | | $ | 1,357 | | | | | $ | 1,357 | | |
More than one year to five years
|
| | | | 29,967 | | | | | | 30,093 | | |
More than five years to ten years
|
| | | | 39,477 | | | | | | 39,611 | | |
More than ten years
|
| | | | 9,999 | | | | | | 9,370 | | |
| | | | | 80,800 | | | | | | 80,431 | | |
Mortgage-backed securities and CMOs
|
| | | | 479,927 | | | | | | 473,491 | | |
| | | | $ | 560,727 | | | | | $ | 553,922 | | |
|
| | |
September 30, 2017
|
| |||||||||||||||||||||||||||||||||
| | |
Less than 12 months
|
| |
12 months or longer
|
| |
Total
|
| |||||||||||||||||||||||||||
| | |
Fair value
|
| |
Gross
unrealized losses |
| |
Fair value
|
| |
Gross
unrealized losses |
| |
Fair value
|
| |
Gross
unrealized losses |
| ||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||||||||
Securities available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | $ | 14,831 | | | | | $ | (116) | | | | | $ | — | | | | | $ | — | | | | | $ | 14,831 | | | | | $ | (116) | | |
Mortgage-backed securities and CMOs
|
| | | | 329,554 | | | | | | (5,346) | | | | | | 49,695 | | | | | | (1,742) | | | | | | 379,249 | | | | | | (7,088) | | |
Corporate debt securities
|
| | | | 9,824 | | | | | | (176) | | | | | | 9,644 | | | | | | (356) | | | | | | 19,468 | | | | | | (532) | | |
Trust preferred securities
|
| | | | — | | | | | | — | | | | | | 4,708 | | | | | | (292) | | | | | | 4,708 | | | | | | (292) | | |
Equity securities
|
| | | | 98 | | | | | | (54) | | | | | | — | | | | | | — | | | | | | 98 | | | | | | (54) | | |
| | | | $ | 354,307 | | | | | $ | (5,692) | | | | | $ | 64,047 | | | | | $ | (2,390) | | | | | $ | 418,354 | | | | | $ | (8,082) | | |
|
| | |
September 30, 2016
|
| |||||||||||||||||||||||||||||||||
| | |
Less than 12 months
|
| |
12 months or longer
|
| |
Total
|
| |||||||||||||||||||||||||||
| | |
Fair value
|
| |
Gross
unrealized losses |
| |
Fair value
|
| |
Gross
unrealized losses |
| |
Fair value
|
| |
Gross
unrealized losses |
| ||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||||||||
Securities available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | $ | 4,955 | | | | | $ | (45) | | | | | $ | — | | | | | $ | — | | | | | $ | 4,955 | | | | | $ | (45) | | |
Mortgage-backed securities and CMOs
|
| | | | 65,495 | | | | | | (174) | | | | | | 60,093 | | | | | | (452) | | | | | | 125,588 | | | | | | (626) | | |
Corporate debt securities
|
| | | | 9,363 | | | | | | (637) | | | | | | — | | | | | | — | | | | | | 9,363 | | | | | | (637) | | |
Trust preferred securities
|
| | | | — | | | | | | — | | | | | | 6,779 | | | | | | (2,893) | | | | | | 6,779 | | | | | | (2,893) | | |
Equity securities
|
| | | | — | | | | | | — | | | | | | 78 | | | | | | (74) | | | | | | 78 | | | | | | (74) | | |
| | | | $ | 79,813 | | | | | $ | (856) | | | | | $ | 66,950 | | | | | $ | (3,419) | | | | | $ | 146,763 | | | | | $ | (4,275) | | |
|
Security Description
|
| |
Amortized
Cost |
| |
Fair
value |
| |
Credit Rating
Moody’s/Fitch |
| ||||||
| | |
(in thousands)
|
| ||||||||||||
KeyCorp Capital I Trust Pfd
|
| | | $ | 5,000 | | | |
$4,708
|
| | | | Baa2/BB+ | | |
| | |
September 30
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Balance, beginning of period
|
| | | $ | 328 | | | | | $ | 328 | | |
Additions: | | | | | | | | | | | | | |
Initial credit impairments
|
| | | | — | | | | | | — | | |
Subsequent credit impairments
|
| | | | — | | | | | | — | | |
Reduction: | | | | | | | | | | | | | |
Securities sold during period
|
| | | | (328) | | | | | | — | | |
Balance, end of period
|
| | | $ | — | | | | | $ | 328 | | |
|
| | |
September 30
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Sales transactions: | | | | | | | | | | | | | |
Proceeds
|
| | | $ | 187,376 | | | | | $ | 164,203 | | |
Gross gain
|
| | | | 1,548 | | | | | | 1,098 | | |
Gross loss
|
| | | | (3,237) | | | | | | (743) | | |
Maturities, calls and other securities transactions: | | | | | | | | | | | | | |
Proceeds
|
| | | | 17,170 | | | | | | 5,439 | | |
| | |
September 30, 2017
|
| |||||||||||||||||||||
| | |
Amortized
Cost |
| |
Gross
unrealized gains |
| |
Gross
unrealized losses |
| |
Fair value
|
| ||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||
U.S. government and agency obligations
|
| | | $ | 3,407 | | | | | $ | — | | | | | $ | (7) | | | | | $ | 3,400 | | |
Mortgage-backed securities and CMOs
|
| | | | 129,532 | | | | | | — | | | | | | (1,110) | | | | | | 128,422 | | |
| | | | $ | 132,939 | | | | | $ | — | | | | | $ | (1,117) | | | | | $ | 131,822 | | |
|
| | |
September 30, 2017
|
| |||||||||
| | |
Amortized
cost |
| |
Fair
value |
| ||||||
| | |
(In thousands)
|
| |||||||||
More than five years to ten years
|
| | | $ | 3,407 | | | | | $ | 3,400 | | |
| | | | | 3,407 | | | | | | 3,400 | | |
Mortgage-backed securities and CMOs
|
| | | | 129,532 | | | | | | 128,422 | | |
| | | | $ | 132,939 | | | | | $ | 131,822 | | |
|
| | |
September 30, 2017
|
| |||||||||||||||||||||||||||||||||
| | |
Less than 12 months
|
| |
12 months or longer
|
| |
Total
|
| |||||||||||||||||||||||||||
| | |
Fair value
|
| |
Gross
unrealized losses |
| |
Fair value
|
| |
Gross
unrealized losses |
| |
Fair value
|
| |
Gross
unrealized losses |
| ||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||||||||
Investment securities held to maturity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | $ | — | | | | | $ | — | | | | | $ | 3,399 | | | | | $ | (7) | | | | | $ | 3,399 | | | | | $ | (7) | | |
Mortgage-backed securities and CMOs
|
| | | | 29,965 | | | | | | (349) | | | | | | 96,076 | | | | | | (761) | | | | | | 126,041 | | | | | | (1,110) | | |
| | | | $ | 29,965 | | | | | $ | (349) | | | | | $ | 99,475 | | | | | $ | (768) | | | | | $ | 129,440 | | | | | $ | (1,117) | | |
|
| | |
September 30
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Real estate loans: | | | | | | | | | | | | | |
One to four family
|
| | | $ | 1,578,835 | | | | | $ | 1,553,345 | | |
Commercial and multifamily
|
| | | | 1,821,982 | | | | | | 1,558,939 | | |
Construction
|
| | | | 218,408 | | | | | | 188,480 | | |
Commercial business loans
|
| | | | 267,664 | | | | | | 177,742 | | |
Consumer loans: | | | | ||||||||||
Home equity loans and advances
|
| | | | 464,962 | | | | | | 497,797 | | |
Other consumer loans
|
| | | | 1,270 | | | | | | 1,331 | | |
Total loans
|
| | | | 4,353,121 | | | | | | 3,977,634 | | |
Net deferred loan costs
|
| | | | 9,135 | | | | | | 6,475 | | |
Allowance for loan losses
|
| | | | (54,633) | | | | | | (51,867) | | |
Loans receivable, net
|
| | | $ | 4,307,623 | | | | | $ | 3,932,242 | | |
|
| | |
September 30
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Balance at beginning of year
|
| | | $ | 51,867 | | | | | $ | 56,948 | | |
Provision for loan losses
|
| | | | 6,426 | | | | | | 417 | | |
Recoveries on loans
|
| | | | 584 | | | | | | 721 | | |
Loans charged off
|
| | | | (4,244) | | | | | | (6,219) | | |
Balance at end of year
|
| | | $ | 54,633 | | | | | $ | 51,867 | | |
|
| | |
September 30, 2017
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Real estate
|
| |
Home
equity loans and advances |
| |
Commercial
business |
| |
Other
consumer |
| |
Unallocated
|
| |
Total
|
| ||||||||||||||||||||||||||||||
| | |
One to four
family |
| |
Commercial
and Multifamily |
| |
Construction
|
| |||||||||||||||||||||||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance
|
| | | $ | 18,638 | | | | | $ | 17,390 | | | | | $ | 5,960 | | | | | $ | 4,052 | | | | | $ | 5,721 | | | | | $ | 11 | | | | | $ | 95 | | | | | $ | 51,867 | | |
Charge-offs
|
| | | | (1,402) | | | | | | (1,080) | | | | | | — | | | | | | (1,140) | | | | | | (606) | | | | | | (16) | | | | | | — | | | | | | (4,244) | | |
Recoveries
|
| | | | 268 | | | | | | 75 | | | | | | — | | | | | | 59 | | | | | | 182 | | | | | | — | | | | | | — | | | | | | 584 | | |
Provisions
|
| | | | 1,029 | | | | | | 1,644 | | | | | | (661) | | | | | | 1,219 | | | | | | 3,183 | | | | | | 13 | | | | | | (1) | | | | | | 6,426 | | |
Ending balance
|
| | | $ | 18,533 | | | | | $ | 18,029 | | | | | $ | 5,299 | | | | | $ | 4,190 | | | | | $ | 8,480 | | | | | $ | 8 | | | | | $ | 94 | | | | | $ | 54,633 | | |
Ending balance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment
|
| | | $ | 407 | | | | | $ | 35 | | | | | $ | — | | | | | $ | 14 | | | | | $ | 84 | | | | | $ | — | | | | | $ | — | | | | | $ | 540 | | |
Collectively evaluated for impairment
|
| | | | 18,126 | | | | | | 17,994 | | | | | | 5,299 | | | | | | 4,176 | | | | | | 8,396 | | | | | | 8 | | | | | | 94 | | | | | | 54,093 | | |
Total
|
| | | $ | 18,533 | | | | | $ | 18,029 | | | | | $ | 5,299 | | | | | $ | 4,190 | | | | | $ | 8,480 | | | | | $ | 8 | | | | | $ | 94 | | | | | $ | 54,633 | | |
Total loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment
|
| | | $ | 12,247 | | | | | $ | 6,343 | | | | | $ | — | | | | | $ | 2,998 | | | | | $ | 4,327 | | | | | $ | — | | | | | $ | — | | | | | $ | 25,915 | | |
Collectively evaluated
for impairment |
| | | | 1,566,588 | | | | | | 1,815,639 | | | | | | 218,408 | | | | | | 461,964 | | | | | | 263,337 | | | | | | 1,270 | | | | | | — | | | | | | 4,327,206 | | |
Total
|
| | | $ | 1,578,835 | | | | | $ | 1,821,982 | | | | | $ | 218,408 | | | | | $ | 464,962 | | | | | $ | 267,664 | | | | | $ | 1,270 | | | | | $ | — | | | | | $ | 4,353,121 | | |
|
| | |
September 30, 2016
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Real estate
|
| |
Home
equity loans and advances |
| |
Commercial
business |
| |
Other
consumer |
| |
Unallocated
|
| |
Total
|
| ||||||||||||||||||||||||||||||
| | |
One to four
family |
| |
Commercial
and Multifamily |
| |
Construction
|
| |||||||||||||||||||||||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance
|
| | | $ | 16,442 | | | | | $ | 20,352 | | | | | $ | 6,248 | | | | | $ | 6,111 | | | | | $ | 7,094 | | | | | $ | 4 | | | | | $ | 697 | | | | | $ | 56,948 | | |
Charge-offs
|
| | | | (3,496) | | | | | | (879) | | | | | | (321) | | | | | | (1,053) | | | | | | (458) | | | | | | (12) | | | | | | — | | | | | | (6,219) | | |
Recoveries
|
| | | | 158 | | | | | | 23 | | | | | | 76 | | | | | | 55 | | | | | | 408 | | | | | | 1 | | | | | | — | | | | | | 721 | | |
Provisions
|
| | | | 5,534 | | | | | | (2,106) | | | | | | (43) | | | | | | (1,061) | | | | | | (1,323) | | | | | | 18 | | | | | | (602) | | | | | | 417 | | |
Ending balance
|
| | | $ | 18,638 | | | | | $ | 17,390 | | | | | $ | 5,960 | | | | | $ | 4,052 | | | | | $ | 5,721 | | | | | $ | 11 | | | | | $ | 95 | | | | | $ | 51,867 | | |
Ending balance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment
|
| | | $ | 665 | | | | | $ | 102 | | | | | $ | — | | | | | $ | 2 | | | | | $ | 69 | | | | | $ | — | | | | | $ | — | | | | | $ | 838 | | |
Collectively evaluated for impairment
|
| | | | 17,973 | | | | | | 17,288 | | | | | | 5,960 | | | | | | 4,050 | | | | | | 5,652 | | | | | | 11 | | | | | | 95 | | | | | | 51,029 | | |
Total
|
| | | $ | 18,638 | | | | | $ | 17,390 | | | | | $ | 5,960 | | | | | $ | 4,052 | | | | | $ | 5,721 | | | | | $ | 11 | | | | | $ | 95 | | | | | $ | 51,867 | | |
Total loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment
|
| | | $ | 16,705 | | | | | $ | 4,893 | | | | | $ | — | | | | | $ | 4,017 | | | | | $ | 3,888 | | | | | $ | — | | | | | $ | — | | | | | $ | 29,503 | | |
Collectively evaluated
for impairment |
| | | | 1,536,640 | | | | | | 1,554,046 | | | | | | 188,480 | | | | | | 493,780 | | | | | | 173,854 | | | | | | 1,331 | | | | | | — | | | | | | 3,948,131 | | |
Total
|
| | | $ | 1,553,345 | | | | | $ | 1,558,939 | | | | | $ | 188,480 | | | | | $ | 497,797 | | | | | $ | 177,742 | | | | | $ | 1,331 | | | | | $ | — | | | | | $ | 3,977,634 | | |
|
| | |
September 30, 2017
|
| |||||||||||||||||||||||||||||||||||||||
| | |
Real estate
|
| |
Home
equity loans and advances |
| |
Commercial
business |
| |
Other
consumer |
| |
Total
|
| |||||||||||||||||||||||||||
| | |
One to four
family |
| |
Commercial
and Multifamily |
| |
Construction
|
| |||||||||||||||||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||||||||||||||
Pass
|
| | | $ | 1,569,064 | | | | | $ | 1,796,786 | | | | | $ | 218,408 | | | | | $ | 463,257 | | | | | $ | 258,454 | | | | | $ | 1,270 | | | | | $ | 4,307,239 | | |
Special mention
|
| | | | — | | | | | | 11,600 | | | | | | — | | | | | | — | | | | | | 3,347 | | | | | | — | | | | | | 14,947 | | |
Substandard
|
| | | | 9,771 | | | | | | 13,596 | | | | | | — | | | | | | 1,705 | | | | | | 5,863 | | | | | | — | | | | | | 30,935 | | |
Doubtful
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 1,578,835 | | | | | $ | 1,821,982 | | | | | $ | 218,408 | | | | | $ | 464,962 | | | | | $ | 267,664 | | | | | $ | 1,270 | | | | | $ | 4,353,121 | | |
|
| | |
September 30, 2016
|
| |||||||||||||||||||||||||||||||||||||||
| | |
Real estate
|
| |
Home
equity loans and advances |
| |
Commercial
business |
| |
Other
consumer |
| |
Total
|
| |||||||||||||||||||||||||||
| | |
One to four
family |
| |
Commercial
and Multifamily |
| |
Construction
|
| |||||||||||||||||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||||||||||||||
Pass
|
| | | $ | 1,535,831 | | | | | $ | 1,535,176 | | | | | $ | 187,066 | | | | | $ | 494,251 | | | | | $ | 167,585 | | | | | $ | 1,331 | | | | | $ | 3,921,240 | | |
Special mention
|
| | | | — | | | | | | 5,626 | | | | | | 1,406 | | | | | | — | | | | | | 4,477 | | | | | | — | | | | | | 11,509 | | |
Substandard
|
| | | | 17,514 | | | | | | 18,137 | | | | | | 8 | | | | | | 3,546 | | | | | | 5,680 | | | | | | — | | | | | | 44,885 | | |
Doubtful
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 1,553,345 | | | | | $ | 1,558,939 | | | | | $ | 188,480 | | | | | $ | 497,797 | | | | | $ | 177,742 | | | | | $ | 1,331 | | | | | $ | 3,977,634 | | |
|
| | |
September 30, 2017
|
| |||||||||||||||||||||||||||||||||
| | |
30 – 59 days
|
| |
60 – 89 days
|
| |
Greater than
90 days |
| |
Total
past due |
| |
Current
|
| |
Total
|
| ||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||||||||
Real estate loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One to four family
|
| | | $ | 3,924 | | | | | $ | 932 | | | | | $ | 3,496 | | | | | $ | 8,352 | | | | | $ | 1,570,483 | | | | | $ | 1,578,835 | | |
Commercial and multifamily
|
| | | | — | | | | | | 123 | | | | | | 1,510 | | | | | | 1,633 | | | | | | 1,820,349 | | | | | | 1,821,982 | | |
Construction
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 218,408 | | | | | | 218,408 | | |
Commercial business loans
|
| | | | — | | | | | | 388 | | | | | | 1,038 | | | | | | 1,426 | | | | | | 266,238 | | | | | | 267,664 | | |
Consumer loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | 1,437 | | | | | | 187 | | | | | | 351 | | | | | | 1,975 | | | | | | 462,987 | | | | | | 464,962 | | |
Other consumer loans
|
| | | | 1 | | | | | | — | | | | | | — | | | | | | 1 | | | | | | 1,269 | | | | | | 1,270 | | |
Total loans
|
| | | $ | 5,362 | | | | | $ | 1,630 | | | | | $ | 6,395 | | | | | $ | 13,387 | | | | | $ | 4,339,734 | | | | | $ | 4,353,121 | | |
|
| | |
September 30, 2016
|
| |||||||||||||||||||||||||||||||||
| | |
30 – 59 days
|
| |
60 – 89 days
|
| |
Greater than
90 days |
| |
Total
past due |
| |
Current
|
| |
Total
|
| ||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||||||||
Real estate loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One to four family
|
| | | $ | 9,401 | | | | | $ | 1,338 | | | | | $ | 4,538 | | | | | $ | 15,277 | | | | | $ | 1,538,068 | | | | | $ | 1,553,345 | | |
Commercial and multifamily
|
| | | | 1,030 | | | | | | 275 | | | | | | 4,257 | | | | | | 5,562 | | | | | | 1,553,377 | | | | | | 1,558,939 | | |
Construction
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 188,480 | | | | | | 188,480 | | |
Commercial business loans
|
| | | | 60 | | | | | | — | | | | | | 1,608 | | | | | | 1,668 | | | | | | 176,074 | | | | | | 177,742 | | |
Consumer loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | 2,855 | | | | | | 436 | | | | | | 1,667 | | | | | | 4,958 | | | | | | 492,839 | | | | | | 497,797 | | |
Other consumer loans
|
| | | | 1 | | | | | | — | | | | | | — | | | | | | 1 | | | | | | 1,330 | | | | | | 1,331 | | |
Total loans
|
| | | $ | 13,347 | | | | | $ | 2,049 | | | | | $ | 12,070 | | | | | $ | 27,466 | | | | | $ | 3,950,168 | | | | | $ | 3,977,634 | | |
|
| | |
September 30, 2017
|
| |||||||||||||||||||||||||||||||||
| | |
30 – 59 days
|
| |
60 – 89 days
|
| |
Greater than
90 days |
| |
Total
past due |
| |
Current
|
| |
Total
|
| ||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||||||||
Real estate loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One to four family
|
| | | $ | — | | | | | $ | — | | | | | $ | 3,496 | | | | | $ | 3,496 | | | | | $ | — | | | | | $ | 3,496 | | |
Commercial and multifamily
|
| | | | — | | | | | | — | | | | | | 1,510 | | | | | | 1,510 | | | | | | — | | | | | | 1,510 | | |
Construction
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial business loans
|
| | | | — | | | | | | — | | | | | | 1,038 | | | | | | 1,038 | | | | | | — | | | | | | 1,038 | | |
Consumer loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | — | | | | | | — | | | | | | 351 | | | | | | 351 | | | | | | — | | | | | | 351 | | |
Other consumer loans
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total loans
|
| | | $ | — | | | | | $ | — | | | | | $ | 6,395 | | | | | $ | 6,395 | | | | | $ | — | | | | | $ | 6,395 | | |
|
| | |
September 30, 2016
|
| |||||||||||||||||||||||||||||||||
| | |
30 – 59 days
|
| |
60 – 89 days
|
| |
Greater than
90 days |
| |
Total
past due |
| |
Current
|
| |
Total
|
| ||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||||||||
Real estate loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One to four family
|
| | | $ | — | | | | | $ | 150 | | | | | $ | 4,538 | | | | | $ | 4,688 | | | | | $ | — | | | | | $ | 4,688 | | |
Commercial and multifamily
|
| | | | — | | | | | | — | | | | | | 4,257 | | | | | | 4,257 | | | | | | — | | | | | | 4,257 | | |
Construction
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial business loans
|
| | | | — | | | | | | — | | | | | | 1,608 | | | | | | 1,608 | | | | | | — | | | | | | 1,608 | | |
Consumer loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | — | | | | | | — | | | | | | 1,667 | | | | | | 1,667 | | | | | | — | | | | | | 1,667 | | |
Other consumer loans
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total loans
|
| | | $ | — | | | | | $ | 150 | | | | | $ | 12,070 | | | | | $ | 12,220 | | | | | $ | — | | | | | $ | 12,220 | | |
|
| | |
September 30, 2017
|
| |||||||||||||||||||||||||||
| | |
Recorded
investment |
| |
Upaid
principal balance |
| |
Specific
allowance |
| |
Average
recorded investment |
| |
Interest
income recognized |
| |||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||
With no allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate loans:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One to four family
|
| | | $ | 9,272 | | | | | $ | 10,156 | | | | | $ | — | | | | | $ | 10,686 | | | | | $ | 351 | | |
Commercial and multifamily
|
| | | | 4,701 | | | | | | 5,577 | | | | | | — | | | | | | 2,420 | | | | | | 223 | | |
Commercial business loans
|
| | | | 1,545 | | | | | | 2,038 | | | | | | — | | | | | | 1,024 | | | | | | 82 | | |
Consumer loans:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | 2,745 | | | | | | 3,214 | | | | | | — | | | | | | 3,567 | | | | | | 119 | | |
| | | | | 18,263 | | | | | | 20,985 | | | | | | — | | | | | | 17,697 | | | | | | 775 | | |
With a specific allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate loans:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One to four family
|
| | | | 2,975 | | | | | | 2,989 | | | | | | 407 | | | | | | 4,341 | | | | | | 118 | | |
Commercial and multifamily
|
| | | | 1,642 | | | | | | 2,215 | | | | | | 35 | | | | | | 1,908 | | | | | | 56 | | |
Commercial business loans
|
| | | | 2,782 | | | | | | 2,782 | | | | | | 84 | | | | | | 2,772 | | | | | | 113 | | |
Consumer loans:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | 253 | | | | | | 253 | | | | | | 14 | | | | | | 336 | | | | | | 17 | | |
| | | | | 7,652 | | | | | | 8,239 | | | | | | 540 | | | | | | 9,357 | | | | | | 304 | | |
Total: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate loans:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One to four family
|
| | | | 12,247 | | | | | | 13,145 | | | | | | 407 | | | | | | 15,027 | | | | | | 469 | | |
Commercial and multifamily
|
| | | | 6,343 | | | | | | 7,792 | | | | | | 35 | | | | | | 4,328 | | | | | | 279 | | |
Commercial business loans
|
| | | | 4,327 | | | | | | 4,820 | | | | | | 84 | | | | | | 3,796 | | | | | | 195 | | |
Consumer loans:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | 2,998 | | | | | | 3,467 | | | | | | 14 | | | | | | 3,903 | | | | | | 136 | | |
Total loans
|
| | | $ | 25,915 | | | | | $ | 29,224 | | | | | $ | 540 | | | | | $ | 27,054 | | | | | $ | 1,079 | | |
|
| | |
September 30, 2016
|
| |||||||||||||||||||||||||||
| | |
Recorded
investment |
| |
Upaid
principal balance |
| |
Specific
allowance |
| |
Average
recorded investment |
| |
Interest
income recognized |
| |||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||
With no allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate loans:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One to four family
|
| | | $ | 11,551 | | | | | $ | 12,948 | | | | | $ | — | | | | | $ | 10,836 | | | | | $ | 397 | | |
Commercial and multifamily
|
| | | | 2,488 | | | | | | 2,488 | | | | | | — | | | | | | 7,517 | | | | | | — | | |
Construction
|
| | | | — | | | | | | — | | | | | | — | | | | | | 505 | | | | | | — | | |
Commercial business loans
|
| | | | 1,135 | | | | | | 1,214 | | | | | | — | | | | | | 2,371 | | | | | | 4 | | |
Consumer loans:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | 3,821 | | | | | | 4,314 | | | | | | — | | | | | | 2,962 | | | | | | 148 | | |
| | | | | 18,995 | | | | | | 20,964 | | | | | | — | | | | | | 24,191 | | | | | | 549 | | |
With a specific allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate loans:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One to four family
|
| | | | 5,154 | | | | | | 5,509 | | | | | | 665 | | | | | | 7,283 | | | | | | 168 | | |
Commercial and multifamily
|
| | | | 2,405 | | | | | | 2,978 | | | | | | 102 | | | | | | 1,827 | | | | | | 57 | | |
Construction
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial business loans
|
| | | | 2,753 | | | | | | 2,840 | | | | | | 69 | | | | | | 2,143 | | | | | | 106 | | |
Consumer loans:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | 196 | | | | | | 196 | | | | | | 2 | | | | | | 484 | | | | | | 9 | | |
| | | | | 10,508 | | | | | | 11,523 | | | | | | 838 | | | | | | 11,737 | | | | | | 340 | | |
Total: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate loans:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One to four family
|
| | | | 16,705 | | | | | | 18,457 | | | | | | 665 | | | | | | 18,119 | | | | | | 565 | | |
Commercial and multifamily
|
| | | | 4,893 | | | | | | 5,466 | | | | | | 102 | | | | | | 9,344 | | | | | | 57 | | |
Construction
|
| | | | — | | | | | | — | | | | | | — | | | | | | 505 | | | | | | — | | |
Commercial business loans
|
| | | | 3,888 | | | | | | 4,054 | | | | | | 69 | | | | | | 4,514 | | | | | | 110 | | |
Consumer loans:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | 4,017 | | | | | | 4,510 | | | | | | 2 | | | | | | 3,446 | | | | | | 157 | | |
Total loans
|
| | | $ | 29,503 | | | | | $ | 32,487 | | | | | $ | 838 | | | | | $ | 35,928 | | | | | $ | 889 | | |
|
| | |
September 30, 2017
|
| |||||||||||||||||||||||||||||||||
| | |
Accrual
|
| |
Nonaccrual
|
| |
Total
|
| |||||||||||||||||||||||||||
| | |
No. of loans
|
| |
Amount
|
| |
No. of loans
|
| |
Amount
|
| |
No. of loans
|
| |
Amount
|
| ||||||||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||||||||
Real estate loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
One to four family
|
| | | | 47 | | | | | $ | 9,517 | | | | | | 3 | | | | | $ | 613 | | | | | | 50 | | | | | $ | 10,130 | | |
Commercial and multifamily
|
| | | | 2 | | | | | | 5,132 | | | | | | — | | | | | | — | | | | | | 2 | | | | | | 5,132 | | |
Commercial business loans
|
| | | | 7 | | | | | | 3,127 | | | | | | — | | | | | | — | | | | | | 7 | | | | | | 3,127 | | |
Consumer loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | 20 | | | | | | 2,274 | | | | | | 3 | | | | | | 389 | | | | | | 23 | | | | | | 2,663 | | |
Total loans
|
| | | | 76 | | | | | $ | 20,050 | | | | | | 6 | | | | | $ | 1,002 | | | | | | 82 | | | | | $ | 21,052 | | |
|
| | |
September 30, 2016
|
| |||||||||||||||||||||||||||||||||
| | |
Accrual
|
| |
Nonaccrual
|
| |
Total
|
| |||||||||||||||||||||||||||
| | |
No. of loans
|
| |
Amount
|
| |
No. of loans
|
| |
Amount
|
| |
No. of loans
|
| |
Amount
|
| ||||||||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||||||||
Real estate loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
One to four family
|
| | | | 61 | | | | | $ | 13,269 | | | | | | 4 | | | | | $ | 456 | | | | | | 65 | | | | | $ | 13,725 | | |
Commercial and multifamily
|
| | | | 1 | | | | | | 1,194 | | | | | | — | | | | | | — | | | | | | 1 | | | | | | 1,194 | | |
Commercial business loans
|
| | | | 5 | | | | | | 2,811 | | | | | | 1 | | | | | | 465 | | | | | | 6 | | | | | | 3,276 | | |
Consumer loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Home equity loans and advances
|
| | | | 29 | | | | | | 2,713 | | | | | | 1 | | | | | | 83 | | | | | | 30 | | | | | | 2,796 | | |
Total loans
|
| | | | 96 | | | | | $ | 19,987 | | | | | | 6 | | | | | $ | 1,004 | | | | | | 102 | | | | | $ | 20,991 | | |
|
| | |
September 30, 2017
|
| |||||||||||||||
| | |
No. of loans
|
| |
Pre-modification
recorded investment |
| |
Post-modification
recorded investment |
| |||||||||
| | |
(In thousands)
|
| |||||||||||||||
Troubled Debt Restructurings: | | | | | | | | | | | | | | | | | | | |
Real estate loans: | | | | | | | | | | | | | | | | | | | |
One to four family
|
| | | | 3 | | | | | $ | 548 | | | | | $ | 548 | | |
Commercial and multifamily
|
| | | | 1 | | | | | | 3,964 | | | | | | 3,964 | | |
Commercial business loans
|
| | | | 1 | | | | | | 18 | | | | | | 18 | | |
Consumer loans: | | | | | | | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | 2 | | | | | | 248 | | | | | | 248 | | |
Total loans
|
| | | | 7 | | | | | $ | 4,778 | | | | | $ | 4,778 | | |
|
| | |
September 30, 2017
|
| |||||||||
| | |
No. of loans
|
| |
Recorded
investment |
| ||||||
| | |
(In thousands)
|
| |||||||||
Troubled Debt Restructurings Which Subsequently Defaulted: | | | | | | | | | | | | | |
Real estate loans: | | | | | | | | | | | | | |
One to four family
|
| | | | — | | | | | $ | — | | |
Commercial and multifamily
|
| | | | — | | | | | | — | | |
Construction
|
| | | | — | | | | | | — | | |
Commercial business loans
|
| | | | 3 | | | | | $ | 255 | | |
Consumer loans: | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | 1 | | | | | | 103 | | |
Total loans
|
| | | | 4 | | | | | $ | 358 | | |
|
| | |
September 30, 2016
|
| |||||||||||||||
| | |
No of loans
|
| |
Pre-modification
recorded investment |
| |
Post-modification
recorded investment |
| |||||||||
| | |
(In thousands)
|
| |||||||||||||||
Real estate loans: | | | | | | | | | | | | | | | | | | | |
One to four family
|
| | | | 1 | | | | | $ | 117 | | | | | $ | 117 | | |
Commercial and multifamily
|
| | | | — | | | | | | — | | | | | | — | | |
Construction
|
| | | | — | | | | | | — | | | | | | — | | |
Commercial business loans
|
| | | | 3 | | | | | | 275 | | | | | | 275 | | |
Consumer loans: | | | | | | | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | 2 | | | | | | 144 | | | | | | 144 | | |
Total loans
|
| | | | 6 | | | | | $ | 536 | | | | | $ | 536 | | |
|
| | |
September 30, 2016
|
| |||||||||
| | |
No of loans
|
| |
Recorded
investment |
| ||||||
| | |
(In thousands)
|
| |||||||||
Troubled Debt Restructurings Which Subsequently Defaulted: | | | | | | | | | | | | | |
Real estate loans: | | | | | | | | | | | | | |
One to four family
|
| | | | 3 | | | | | $ | 651 | | |
Commercial and multifamily
|
| | | | — | | | | | | — | | |
Construction
|
| | | | — | | | | | | — | | |
Commercial business loans
|
| | | | — | | | | | | — | | |
Commercial business loans
|
| | | | 1 | | | | | | 465 | | |
Consumer loans: | | | | | | | | | | | | | |
Home equity loans and advances
|
| | | | 1 | | | | | | 107 | | |
Total loans
|
| | | | 5 | | | | | $ | 1,223 | | |
|
| | |
September 30
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Loans receivable
|
| | | $ | 12,673 | | | | | $ | 11,008 | | |
Securities
|
| | | | 2,014 | | | | | | 2,148 | | |
| | | | $ | 14,687 | | | | | $ | 13,156 | | |
|
| | |
September 30
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Cost: | | | | | | | | | | | | | |
Land
|
| | | $ | 7,829 | | | | | $ | 7,829 | | |
Buildings
|
| | | | 24,018 | | | | | | 24,018 | | |
Land and building improvements
|
| | | | 13,071 | | | | | | 10,216 | | |
Leasehold improvements
|
| | | | 19,823 | | | | | | 19,010 | | |
Furniture and equipment
|
| | | | 25,930 | | | | | | 23,587 | | |
| | | | | 90,671 | | | | | | 84,660 | | |
Less accumulated depreciation and amortization
|
| | | | 49,836 | | | | | | 46,802 | | |
Total office properties and equipment, net
|
| | | $ | 40,835 | | | | | $ | 37,858 | | |
|
| | |
September 30
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Goodwill
|
| | | $ | 5,716 | | | | | $ | 5,716 | | |
Mortgage servicing rights
|
| | | | 303 | | | | | | 408 | | |
| | | | $ | 6,019 | | | | | $ | 6,124 | | |
|
| | |
September 30, 2017
|
| |||||||||
| | |
Asset Derivative
|
| |
Liability Deriviative
|
| ||||||
| | |
Consolidated
Balance Sheet |
| |
Fair Value
|
| |
Consolidated
Balance Sheet |
| |
Fair Value
|
|
| | | | | |
(In thousands)
|
| | | | |
(In thousands)
|
|
Derivatives: | | | | | | | | | | | | | |
Interest rate swap – cash flow hedge
|
| |
Other Assets
|
| |
$95
|
| |
Other Liabilities
|
| |
$—
|
|
Currency forward contract – non-designated hedge
|
| |
Other Assets
|
| |
182
|
| |
Other Liabilities
|
| |
182
|
|
Total derivative instruments
|
| | | | |
$277
|
| | | | |
$182
|
|
| | |
September 30, 2017
|
| |||
| | |
Gain (loss) in Income on Derivatives
|
| |||
| | |
Consolidated
Statement of Income |
| |
2017
|
|
Derivatives not designated as hedging instruments: | | | | | | | |
Interest rate products
|
| |
Other Income
|
| |
$—
|
|
Derivatives not designated as hedging instruments: | | | | | | | |
Interest rate products
|
| |
Interest expense
|
| |
$—
|
|
| | |
September 30
|
| |||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| ||||||||||||||||||||||||||||||
| | |
Weighted
average rate |
| |
Amount
|
| |
Percentage
|
| |
Weighted
average rate |
| |
Amount
|
| |
Percentage
|
| ||||||||||||||||||
| | |
(In thousands)
|
| |
(In thousands)
|
| ||||||||||||||||||||||||||||||
Deposits: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest bearing transaction
|
| | | | —% | | | | | $ | 676,067 | | | | | | 16.4% | | | | | | —% | | | | | $ | 625,304 | | | | | | 16.4% | | |
Interest bearing transaction
|
| | | | 0.66 | | | | | | 1,268,833 | | | | | | 30.8% | | | | | | 0.61 | | | | | | 1,156,529 | | | | | | 30.3% | | |
Money market deposit accounts
|
| | | | 0.29 | | | | | | 273,605 | | | | | | 6.6% | | | | | | 0.28 | | | | | | 270,662 | | | | | | 7.1% | | |
Savings, including club deposits
|
| | | | 0.16 | | | | | | 546,449 | | | | | | 13.3% | | | | | | 0.16 | | | | | | 534,148 | | | | | | 14.0% | | |
| | | | | 0.36 | | | | | | 2,764,954 | | | | | | 67.1% | | | | | | 0.34 | | | | | | 2,586,643 | | | | | | 67.7% | | |
Retail certificates of deposits by term:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
7 – 181 days
|
| | | | 0.10 | | | | | | 29,482 | | | | | | 0.7% | | | | | | 0.10 | | | | | | 35,611 | | | | | | 0.9% | | |
182 – 364 days
|
| | | | 0.38 | | | | | | 49,852 | | | | | | 1.2% | | | | | | 0.21 | | | | | | 59,371 | | | | | | 1.6% | | |
12 – 24 months
|
| | | | 1.01 | | | | | | 645,616 | | | | | | 15.7% | | | | | | 0.99 | | | | | | 539,014 | | | | | | 14.1% | | |
25 – 48 months
|
| | | | 1.59 | | | | | | 312,755 | | | | | | 7.6% | | | | | | 1.41 | | | | | | 276,220 | | | | | | 7.2% | | |
49 months and over
|
| | | | 2.00 | | | | | | 320,769 | | | | | | 7.8% | | | | | | 2.02 | | | | | | 325,956 | | | | | | 8.5% | | |
Total certificates of deposit
|
| | | | 1.34 | | | | | | 1,358,474 | | | | | | 32.9% | | | | | | 1.29 | | | | | | 1,236,172 | | | | | | 32.3% | | |
| | | | | 0.68% | | | | | $ | 4,123,428 | | | | | | 100.0% | | | | | | 0.64% | | | | | $ | 3,822,815 | | | | | | 100.0% | | |
|
| | |
September 30
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Less than one year
|
| | | $ | 657,741 | | | | | $ | 690,127 | | |
More than one years to two years
|
| | | | 338,265 | | | | | | 214,602 | | |
More than two years to three years
|
| | | | 248,779 | | | | | | 107,941 | | |
More than three years to four years
|
| | | | 81,959 | | | | | | 134,414 | | |
More than four years
|
| | | | 31,730 | | | | | | 89,088 | | |
| | | | $ | 1,358,474 | | | | | $ | 1,236,172 | | |
|
| | |
September 30
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Passbook, including club deposits
|
| | | $ | 630 | | | | | $ | 613 | | |
Demand deposits, including attorney escrow and money market deposit accounts
|
| | | | 8,556 | | | | | | 7,735 | | |
Certificates of deposit
|
| | | | 16,395 | | | | | | 15,714 | | |
| | | | $ | 25,581 | | | | | $ | 24,062 | | |
|
| | |
Interest rate range
|
| |
Amount ($)
|
| ||||||||||||||||||
| | |
September 30
|
| |
September 30
|
| ||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| ||||||||||||
| | | | | | | | | | | | | | |
(In thousands)
|
| |||||||||
Lines of credit(a)
|
| | | | —% | | | | | | 0.53% | | | | | $ | — | | | | | $ | 47,400 | | |
Federal Home Loan Bank (FHLB) advances(b)
|
| | | | 1.20 – 4.54 | | | | | | 0.95 – 4.54 | | | | | | 642,400 | | | | | | 534,000 | | |
Junior subordinated debt(c)
|
| | | | 8.00 | | | | | | 8.00 | | | | | | 50,643 | | | | | | 50,590 | | |
Securities sold under agreements to repurchase(d)
|
| | | | 3.23 – 4.47 | | | | | | 3.23 – 4.48 | | | | | | 40,000 | | | | | | 50,000 | | |
| | | | | | | | | | | | | | | | $ | 733,043 | | | | | $ | 681,990 | | |
|
| | |
September 30
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Due in one year or less
|
| | | $ | 240,000 | | | | | $ | 80,000 | | |
Due after one year through two years
|
| | | | 170,000 | | | | | | 200,000 | | |
Due after two years through three years
|
| | | | 168,000 | | | | | | 110,000 | | |
Due after three years through four years
|
| | | | 64,400 | | | | | | 134,000 | | |
Due after four years through five years
|
| | | | — | | | | | | 10,000 | | |
| | | | $ | 642,400 | | | | | $ | 534,000 | | |
|
| | |
September 30
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Current tax expense: | | | | | | | | | | | | | |
Federal
|
| | | $ | 16,198 | | | | | $ | 13,209 | | |
State
|
| | | | 1,236 | | | | | | 664 | | |
Total current expense
|
| | | | 17,434 | | | | | | 13,873 | | |
Deferred tax (benefit) expense: | | | | | | | | | | | | | |
Federal
|
| | | | (1,454) | | | | | | 2,743 | | |
State
|
| | | | 28 | | | | | | 187 | | |
Total deferred (benefit) expense
|
| | | | (1,426) | | | | | | 2,930 | | |
Income tax expense
|
| | | $ | 16,008 | | | | | $ | 16,803 | | |
|
| | |
September 30
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Statutory federal income tax expense
|
| | | $ | 16,478 | | | | | $ | 17,415 | | |
State taxes, net of federal tax expense
|
| | | | 822 | | | | | | 553 | | |
Bank-owned life insurance
|
| | | | (1,589) | | | | | | (1,405) | | |
Tax-exempt interest
|
| | | | (50) | | | | | | (28) | | |
Dividend received deduction
|
| | | | (40) | | | | | | (39) | | |
Other
|
| | | | 387 | | | | | | 307 | | |
Income tax expense
|
| | | $ | 16,008 | | | | | $ | 16,803 | | |
|
| | |
September 30
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Deferred tax assets: | | | | | | | | | | | | | |
Net unrealized gains on securities and pension equity adjustment
|
| | | $ | 32,094 | | | | | $ | 35,605 | | |
Bad debt reserve
|
| | | | 24,415 | | | | | | 23,146 | | |
Postretirement benefits
|
| | | | 6,968 | | | | | | 6,571 | | |
Deferred compensation
|
| | | | 3,521 | | | | | | 2,325 | | |
Alternative minimum assessment carryforwards
|
| | | | 3,099 | | | | | | 3,099 | | |
Retirement income maintenance plan
|
| | | | 2,920 | | | | | | 2,568 | | |
Depreciation
|
| | | | 2,425 | | | | | | 1,940 | | |
Net operating loss carry forwards
|
| | | | 972 | | | | | | 3,055 | | |
Reserve for uncollected interest
|
| | | | 171 | | | | | | 414 | | |
Deferred debt prepayment penalty
|
| | | | — | | | | | | 772 | | |
Other
|
| | | | 1,108 | | | | | | 1,153 | | |
Total deferred tax assets
|
| | | $ | 77,693 | | | | | $ | 80,648 | | |
|
| | |
September 30
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Deferred tax liabilities: | | | | | | | | | | | | | |
Prepaid pension costs
|
| | | $ | 48,607 | | | | | $ | 49,544 | | |
Loan origination costs
|
| | | | 8,126 | | | | | | 6,523 | | |
Intangible assets
|
| | | | 2,554 | | | | | | 2,434 | | |
Other
|
| | | | 901 | | | | | | 873 | | |
Total deferred tax liabilities
|
| | | $ | 60,188 | | | | | $ | 59,374 | | |
Gross net deferred tax asset
|
| | | | 17,505 | | | | | | 21,275 | | |
Less state income tax valuation allowance
|
| | | | 4,348 | | | | | | 6,750 | | |
Net deferred tax asset
|
| | | $ | 13,157 | | | | | $ | 14,525 | | |
|
| | |
September 30, 2017
|
| |||||||||||||||||||||
| | | | | | | | |
Fair value measurements
|
| |||||||||||||||
| | |
Fair value
|
| |
Quoted prices
in active markets for identical assets (Level 1) |
| |
Significant
other observable inputs (Level 2) |
| |
Significant
unobservable inputs (Level 3) |
| ||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||
Measured on a recurring basis: | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets:
|
| | | | | | | | | | | | | | | | | | | | |||||
Securities available-for-sale:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | $ | 24,874 | | | | | $ | 24,874 | | | | | $ | — | | | | | $ | — | | |
CMOs and commercial mortgage-backed
securities |
| | | | 316,029 | | | | | | — | | | | | | 316,029 | | | | | | — | | |
Mortgage-backed securities
|
| | | | 157,462 | | | | | | — | | | | | | 157,462 | | | | | | — | | |
Municipal obligations
|
| | | | 1,357 | | | | | | — | | | | | | 1,357 | | | | | | — | | |
Corporate debt securities
|
| | | | 49,492 | | | | | | — | | | | | | 49,492 | | | | | | — | | |
Trust preferred securities
|
| | | | 4,708 | | | | | | — | | | | | | 4,708 | | | | | | — | | |
Equity securities
|
| | | | 3,254 | | | | | | 3,254 | | | | | | — | | | | | | — | | |
Total Securities available-for-sale
|
| | | | 557,176 | | | | | $ | 28,128 | | | | | | 529,048 | | | | | | — | | |
Derivative assets
|
| | | | 277 | | | | | | — | | | | | | 277 | | | | | | — | | |
Total Assets
|
| | | $ | 557,453 | | | | | $ | 28,128 | | | | | $ | 529,325 | | | | | $ | — | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | |||||
Derivative liability
|
| | | $ | 182 | | | | | | — | | | | | | 182 | | | | | $ | — | | |
Total Liabilites
|
| | | $ | 182 | | | | | $ | — | | | | | $ | 182 | | | | | $ | — | | |
|
| | |
September 30, 2016
|
| |||||||||||||||||||||
| | | | | | | | |
Fair value measurements
|
| |||||||||||||||
| | |
Fair value
|
| |
Quoted prices
in active markets for identical assets (Level 1) |
| |
Significant
other observable inputs (Level 2) |
| |
Significant
unobservable inputs (Level 3) |
| ||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||
Measured on a recurring basis: | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities available-for-sale:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | $ | 20,394 | | | | | $ | — | | | | | $ | 20,394 | | | | | $ | — | | |
CMOs and commercial mortgage-backed securities
|
| | | | 357,757 | | | | | | — | | | | | | 357,757 | | | | | | — | | |
Mortgage-backed securities
|
| | | | 302,705 | | | | | | — | | | | | | 302,705 | | | | | | — | | |
Municipal obligations
|
| | | | 16,500 | | | | | | — | | | | | | 16,500 | | | | | | — | | |
Corporate debt securities
|
| | | | 64,650 | | | | | | — | | | | | | 64,650 | | | | | | — | | |
Trust preferred securities
|
| | | | 6,779 | | | | | | — | | | | | | 4,179 | | | | | | 2,600 | | |
Equity securities
|
| | | | 2,994 | | | | | | 2,994 | | | | | | — | | | | | | — | | |
| | | | $ | 771,779 | | | | | $ | 2,994 | | | | | $ | 766,185 | | | | | $ | 2,600 | | |
|
| | |
Year ended September 30
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Balance, beginning of period
|
| | | $ | 2,600 | | | | | $ | 3,250 | | |
Net transfer into Level 3
|
| | | | — | | | | | | — | | |
Total net losses for the period included in:
|
| | | | | | | | | | | | |
Net income
|
| | | | (1,272) | | | | | | — | | |
Other comprehensive income loss
|
| | | | — | | | | | | (650) | | |
Purchases, sales, settlements, net
|
| | | | (1,328) | | | | | | — | | |
Balance, end of period
|
| | | $ | — | | | | | $ | 2,600 | | |
Realized losses included in net income for the period relating to assets held at year-end
|
| | | $ | — | | | | | $ | — | | |
| | |
September 30, 2017
|
| |||||||||||||||||||||
| | |
Carrying
Value |
| |
Carrying Value
|
| ||||||||||||||||||
|
(Level 1)
|
| |
(Level 2)
|
| |
(Level 3)
|
| |||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||
Real estate owned
|
| | | $ | 393 | | | | | $ | — | | | | | $ | — | | | | | $ | 393 | | |
Loans measured for impairment based on the fair value of the underlying collateral
|
| | | | 14,156 | | | | | | — | | | | | | — | | | | | | 14,156 | | |
| | | | $ | 14,549 | | | | | $ | — | | | | | $ | — | | | | | $ | 14,549 | | |
|
| | |
September 30, 2016
|
| |||||||||||||||||||||
| | |
Carrying
Value |
| |
Carrying Value
|
| ||||||||||||||||||
|
(Level 1)
|
| |
(Level 2)
|
| |
(Level 3)
|
| |||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||
Real estate owned
|
| | | $ | 1,260 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,260 | | |
Loans measured for impairment based on the fair value of the underlying collateral
|
| | | | 15,148 | | | | | | — | | | | | | — | | | | | | 15,148 | | |
| | | | $ | 16,408 | | | | | $ | — | | | | | $ | — | | | | | $ | 16,408 | | |
|
| | |
September 30, 2017
|
| |||||||||
| | |
Fair
Value |
| |
Valuation
Methodology |
| |
Unobservable
Inputs |
| |
Range
of Inputs |
|
| | |
(In thousands)
|
| |||||||||
Real estate owned
|
| |
$393
|
| |
Appraised value
|
| |
Discount for costs to sell
|
| |
6.0%
|
|
Loans measured for impairment based on the fair value of the underlying collateral
|
| |
$14,156
|
| |
Appraised value
|
| |
Discount for costs to sell
|
| |
6.0% – 8.0%
|
|
| | |
September 30, 2016
|
| |||||||||
| | |
Fair
Value |
| |
Valuation
Methodology |
| |
Unobservable
Inputs |
| |
Range
of Inputs |
|
| | |
(In thousands)
|
| |||||||||
Real estate owned
|
| |
$1,260
|
| |
Appraised value
|
| |
Discount for costs to sell
|
| |
6.0% – 8.0%
|
|
Loans measured for impairment based on the fair value of the underlying collateral
|
| |
$15,148
|
| |
Appraised value
|
| |
Discount for costs to sell
|
| |
6.0% – 8.0%
|
|
| | |
September 30, 2017
|
| |||||||||||||||||||||||||||
| | |
Carrying
Value |
| |
Fair Value
|
| ||||||||||||||||||||||||
|
Total
|
| |
(Level 1)
|
| |
(Level 2)
|
| |
(Level 3)
|
| ||||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||
Financial assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 100,975 | | | | | $ | 100,975 | | | | | $ | 100,975 | | | | | $ | — | | | | | $ | — | | |
Securities available for sale
|
| | | | 557,176 | | | | | | 557,176 | | | | | | 28,128 | | | | | | 529,048 | | | | | | — | | |
Securities held to maturity
|
| | | | 132,939 | | | | | | 131,822 | | | | | | — | | | | | | 131,822 | | | | | | — | | |
Federal Home Loan Bank Stock
|
| | | | 35,844 | | | | | | 35,844 | | | | | | — | | | | | | 35,844 | | | | | | — | | |
Loans receivable, net
|
| | | | 4,307,623 | | | | | | 4,301,138 | | | | | | — | | | | | | — | | | | | | 4,301,138 | | |
Derivative assets
|
| | | | 277 | | | | | | 277 | | | | | | — | | | | | | 277 | | | | | | — | | |
Financial liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits
|
| | | $ | 4,123,428 | | | | | $ | 3,880,363 | | | | | $ | — | | | | | $ | 3,880,363 | | | | | $ | — | | |
Borrowings
|
| | | | 733,043 | | | | | | 732,731 | | | | | | — | | | | | | 732,731 | | | | | | — | | |
Derivative liability
|
| | | | 182 | | | | | | 182 | | | | | | — | | | | | | 182 | | | | | | — | | |
| | |
September 30, 2016
|
| |||||||||||||||||||||||||||
| | |
Carrying
Value |
| |
Estimated Fair Value
|
| ||||||||||||||||||||||||
|
Total
|
| |
(Level 1)
|
| |
(Level 2)
|
| |
(Level 3)
|
| ||||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||
Financial assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 45,694 | | | | | $ | 45,694 | | | | | $ | 45,694 | | | | | $ | — | | | | | $ | — | | |
Securities available for sale
|
| | | | 771,779 | | | | | | 771,779 | | | | | | 2,994 | | | | | | 766,185 | | | | | | 2,600 | | |
Federal Home Loan Bank Stock
|
| | | | 34,002 | | | | | | 34,002 | | | | | | — | | | | | | 34,002 | | | | | | — | | |
Loans receivable, net
|
| | | | 3,932,242 | | | | | | 4,028,369 | | | | | | — | | | | | | — | | | | | | 4,028,369 | | |
Financial liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits
|
| | | $ | 3,822,815 | | | | | $ | 3,705,802 | | | | | $ | — | | | | | $ | 3,705,802 | | | | | $ | — | | |
Borrowings
|
| | | | 681,990 | | | | | | 691,364 | | | | | | — | | | | | | 691,364 | | | | | | — | | |
| | |
Pension
|
| |
RIM
|
| |
Postretirement
|
| |||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| ||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||||||||
Change in benefit obligation: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Benefit obligation at beginning of year or plan inception
|
| | | $ | 217,395 | | | | | $ | 180,099 | | | | | $ | 10,908 | | | | | $ | 8,446 | | | | | $ | 22,823 | | | | | $ | 18,974 | | |
Service cost
|
| | | | 7,621 | | | | | | 6,188 | | | | | | 237 | | | | | | 140 | | | | | | 471 | | | | | | 447 | | |
Interest cost
|
| | | | 8,444 | | | | | | 8,096 | | | | | | 429 | | | | | | 385 | | | | | | 742 | | | | | | 854 | | |
Actuarial (gain)/loss
|
| | | | (8,320) | | | | | | 27,654 | | | | | | 24 | | | | | | 2,322 | | | | | | (3,438) | | | | | | 3,110 | | |
Benefits paid
|
| | | | (9,361) | | | | | | (4,642) | | | | | | (338) | | | | | | (385) | | | | | | (535) | | | | | | (562) | | |
Benefit obligation at end of year
|
| | | | 215,779 | | | | | | 217,395 | | | | | | 11,260 | | | | | | 10,908 | | | | | | 20,063 | | | | | | 22,823 | | |
Change in plan assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fair value of plan assets at beginning of year
|
| | | | 253,648 | | | | | | 235,583 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Actual return on plan assets
|
| | | | 24,820 | | | | | | 22,707 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Employer contributions
|
| | | | — | | | | | | — | | | | | | 338 | | | | | | 385 | | | | | | 535 | | | | | | 562 | | |
Benefits paid
|
| | | | (9,361) | | | | | | (4,642) | | | | | | (338) | | | | | | (385) | | | | | | (535) | | | | | | (562) | | |
Fair value of plan assets at end of year
|
| | | | 269,107 | | | | | | 253,648 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Funded status at end of year
|
| | | $ | 53,328 | | | | | $ | 36,253 | | | | | $ | (11,260) | | | | | $ | (10,908) | | | | | $ | (20,063) | | | | | $ | (22,823) | | |
|
| | |
Pension
|
| |
RIM
|
| |
Postretirement
|
| |||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| ||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||||||||
Unrecognized prior service costs
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | (140) | | | | | $ | (276) | | |
Unrecognized net actuarial income (loss)
|
| | | | 55,438 | | | | | | 74,768 | | | | | | 4,725 | | | | | | 5,154 | | | | | | 4,611 | | | | | | 8,374 | | |
Total accumulated other comprehensive income
|
| | | $ | 55,438 | | | | | $ | 74,768 | | | | | $ | 4,725 | | | | | $ | 5,154 | | | | | $ | 4,471 | | | | | $ | 8,098 | | |
|
| | |
Pension
|
| |
RIM
|
| |
Postretirement
|
| |||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| ||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||||||||
Service cost
|
| | | $ | 7,621 | | | | | $ | 6,188 | | | | | $ | 237 | | | | | $ | 140 | | | | | $ | 471 | | | | | $ | 447 | | |
Interest cost
|
| | | | 8,444 | | | | | | 8,096 | | | | | | 429 | | | | | | 385 | | | | | | 742 | | | | | | 854 | | |
Expected return on plan assets
|
| | | | (24,809) | | | | | | (22,706) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Amortization: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Prior service cost
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (136) | | | | | | (136) | | |
Net loss
|
| | | | 10,998 | | | | | | 8,490 | | | | | | 453 | | | | | | 283 | | | | | | 325 | | | | | | 339 | | |
Net periodic cost
|
| | | $ | 2,254 | | | | | $ | 68 | | | | | $ | 1,119 | | | | | $ | 808 | | | | | $ | 1,402 | | | | | $ | 1,504 | | |
|
| | |
Pension
|
| |
RIM
|
| |
Postretirement
|
| |||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| ||||||||||||||||||
Weighted average assumptions used to determine benefit obligation:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Discount rate
|
| | | | 4.000% | | | | | | 3.875% | | | | | | 3.875% | | | | | | 3.625% | | | | | | 3.875% | | | | | | 3.625% | | |
Rate of compensation increase
|
| | | | 3.500 | | | | | | 3.500 | | | | | | 3.500 | | | | | | 3.500 | | | | | | N/A | | | | | | N/A | | |
Weighted average assumptions used to determine net periodic benefit cost:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Discount rate
|
| | | | 3.875 | | | | | | 4.500 | | | | | | 3.625 | | | | | | 4.375 | | | | | | 3.625 | | | | | | 4.375 | | |
Expected rate of return on plan assets
|
| | | | 7.500 | | | | | | 7.500 | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Rate of compensation increase
|
| | | | 3.500 | | | | | | 3.500 | | | | | | 3.500 | | | | | | 3.500 | | | | | | N/A | | | | | | N/A | | |
| | |
September 30, 2017
|
| |
September 30, 2016
|
| ||||||||||||||||||
| | |
1% increase
|
| |
1% decrease
|
| |
1% increase
|
| |
1% decrease
|
| ||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||
Effect on total service cost and interest cost
|
| | | | 21 | | | | | | (18) | | | | | | 26 | | | | | | (22) | | |
Effect on postretirement benefit obligations
|
| | | | 137 | | | | | | (122) | | | | | | 572 | | | | | | (492) | | |
| | |
Pension
|
| |
RIM
|
| |
Postretirement
|
| |||||||||
| | |
(In thousands)
|
| |||||||||||||||
2018
|
| | | $ | 5,128 | | | | | $ | 319 | | | | | $ | 868 | | |
2019
|
| | | | 5,584 | | | | | | 320 | | | | | | 905 | | |
2020
|
| | | | 6,033 | | | | | | 326 | | | | | | 952 | | |
2021
|
| | | | 6,502 | | | | | | 356 | | | | | | 993 | | |
2022
|
| | | | 7,011 | | | | | | 391 | | | | | | 1,042 | | |
Years 2023 – 2028
|
| | | | 44,359 | | | | | | 2,792 | | | | | | 6,058 | | |
| | |
2017
|
| |
2016
|
| ||||||
Equity
|
| | | | 48.4% | | | | | | 46.3% | | |
Fixed income
|
| | | | 41.8% | | | | | | 44.0% | | |
Real estate
|
| | | | 9.8% | | | | | | 9.7% | | |
| | |
September 30, 2017
|
| |||||||||||||||||||||
| | | | | | | | |
Fair value measurements
|
| |||||||||||||||
| | |
Fair value
|
| |
Quoted prices
in active markets for Identical Assets (Level 1) |
| |
Significant
other observable inputs (Level 2) |
| |
Significant
unobservable inputs (Level 3) |
| ||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||
Money market mutual funds
|
| | | $ | 1,588 | | | | | $ | 1,588 | | | | | $ | — | | | | | $ | — | | |
Mutual funds – value stock fund
|
| | | | 26,267 | | | | | | 26,267 | | | | | | — | | | | | | — | | |
Mutual funds – fixed income
|
| | | | 110,812 | | | | | | 110,812 | | | | | | — | | | | | | — | | |
Mutual funds – international stock
|
| | | | 26,200 | | | | | | 26,200 | | | | | | — | | | | | | — | | |
Mutual funds – institutional stock Index
|
| | | | 77,785 | | | | | | 77,785 | | | | | | — | | | | | | — | | |
Commingled real estate fund
|
| | | | 26,455 | | | | | | — | | | | | | 26,455 | | | | | | — | | |
| | | | $ | 269,107 | | | | | $ | 242,652 | | | | | $ | 26,455 | | | | | $ | — | | |
|
| | |
September 30, 2016
|
| |||||||||||||||||||||
| | | | | | | | |
Fair value measurements
|
| |||||||||||||||
| | |
Fair value
|
| |
Quoted prices
in active markets for identical assets (Level 1) |
| |
Significant
other observable inputs (Level 2) |
| |
Significant
unobservable inputs (Level 3) |
| ||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||
Money market mutual funds
|
| | | $ | 1,146 | | | | | $ | 1,146 | | | | | $ | — | | | | | $ | — | | |
Mutual funds – value stock fund
|
| | | | 22,926 | | | | | | 22,926 | | | | | | — | | | | | | — | | |
Mutual funds – fixed income
|
| | | | 110,332 | | | | | | 110,332 | | | | | | — | | | | | | — | | |
Mutual funds – international stock
|
| | | | 16,672 | | | | | | 16,672 | | | | | | — | | | | | | — | | |
Mutual funds – institutional stock Index
|
| | | | 77,868 | | | | | | 77,868 | | | | | | — | | | | | | — | | |
Commingled real estate fund
|
| | | | 24,704 | | | | | | — | | | | | | 24,704 | | | | | | — | | |
Money market deposit accounts
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | $ | 253,648 | | | | | $ | 228,944 | | | | | $ | 24,704 | | | | | $ | — | | |
|
| | |
September 30
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Loan commitments: | | | | | | | | | | | | | |
Fixed rate commitments
|
| | | $ | 66,009 | | | | | $ | 123,557 | | |
Variable rate commitments
|
| | | | 38,641 | | | | | | 81,067 | | |
Total loan commitments
|
| | | $ | 104,650 | | | | | $ | 204,624 | | |
|
| | |
September 30,
2017 |
| |||
| | |
(In thousands)
|
| |||
2018
|
| | | $ | 3,496 | | |
2019
|
| | | | 3,033 | | |
2020
|
| | | | 2,213 | | |
2021
|
| | | | 1,926 | | |
2022
|
| | | | 1,803 | | |
Thereafter
|
| | | | 8,426 | | |
Total lease commitments
|
| | | $ | 20,897 | | |
|
| | |
September 30, 2017
|
| |
September 30, 2016
|
| ||||||||||||||||||||||||||||||
| | |
Before Tax
|
| |
Tax Effect
|
| |
After Tax
|
| |
Before Tax
|
| |
Tax Effect
|
| |
After Tax
|
| ||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||||||||
Components of Other Comprehensive
Income (Loss): |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized (loss) gain on securities:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net (loss) gain arising during the period
|
| | | $ | (17,770) | | | | | $ | 6,342 | | | | | $ | (11,428) | | | | | $ | 7,271 | | | | | $ | (2,597) | | | | | $ | 4,674 | | |
Reclassification adjustment for loss (gain) included in net income
|
| | | | 2,626 | | | | | | (937) | | | | | | 1,689 | | | | | | (552) | | | | | | 197 | | | | | | (355) | | |
| | | | | (15,144) | | | | | | 5,405 | | | | | | (9,739) | | | | | | 6,719 | | | | | | (2,400) | | | | | | 4,319 | | |
Employee benefit plans:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Amortization of prior service cost
included in net income |
| | | | (114) | | | | | | 41 | | | | | | (73) | | | | | | (114) | | | | | | 41 | | | | | | (73) | | |
Amortization of transition obligation included in net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Reclassification adjustment of actuarial net loss (gain) included in net income
|
| | | | 11,806 | | | | | | (4,213) | | | | | | 7,593 | | | | | | 9,123 | | | | | | (3,259) | | | | | | 5,864 | | |
Change in funded status of retirement obligations
|
| | | | 11,503 | | | | | | (4,106) | | | | | | 7,397 | | | | | | (33,287) | | | | | | 11,890 | | | | | | (21,397) | | |
| | | | | 23,195 | | | | | | (8,278) | | | | | | 14,917 | | | | | | (24,278) | | | | | | 8,672 | | | | | | (15,606) | | |
Total other comprehensive income (loss)
|
| | | $ | 8,051 | | | | | $ | (2,873) | | | | | $ | 5,178 | | | | | $ | (17,559) | | | | | $ | 6,272 | | | | | $ | (11,287) | | |
|
| | |
September 30, 2017
|
| |
September 30, 2016
|
| ||||||||||||||||||||||||||||||
| | |
Unrealized
Gains on Securities Available for Sale |
| |
Employee
Benefit Plans |
| |
Accumulated
Other Comprehensive Income (loss) |
| |
Unrealized
Gains on Securities Available for Sale |
| |
Employee
Benefit Plans |
| |
Accumulated
Other Comprehensive Income (loss) |
| ||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||||||||
Balance at beginning of year
|
| | | $ | 5,664 | | | | | $ | (57,022) | | | | | $ | (51,358) | | | | | $ | 1,345 | | | | | $ | (41,416) | | | | | $ | (40,071) | | |
Current period changes in other comprehensive income (loss)
|
| | | | (9,739) | | | | | | 14,917 | | | | | | 5,178 | | | | | | 4,319 | | | | | | (15,606) | | | | | | (11,287) | | |
Total other comprehensive income (loss)
|
| | | $ | (4,075) | | | | | $ | (42,105) | | | | | $ | (46,180) | | | | | $ | 5,664 | | | | | $ | (57,022) | | | | | $ | (51,358) | | |
|
| | |
September 30
|
| | | |||||||||||||
| | |
2017
|
| |
2016
|
| | | ||||||||||
| | |
(In thousands)
|
| | | |||||||||||||
Reclassification adjustment for gains included in net income | | | | | | | | | | | | | | | | ||||
Net gain (loss) on securities transactions
|
| | | $ | 2,626 | | | | | $ | (552) | | | | | ||||
Employee benefit plans(1) | | | | | | | | | | | | | | | | | | | |
Amortization of prior service cost
|
| | | | (114) | | | | | | (114) | | | | | ||||
Amortization of transition obligation
|
| | | | — | | | | | | — | | | | | ||||
Reclassification adjustment of actuarial net loss
|
| | | | 11,806 | | | | | | 9,123 | | | | | ||||
Compensation and employee benefits
|
| | | | 11,692 | | | | | | 9,009 | | | | | ||||
| | | | | 14,318 | | | | | | 8,457 | | | | | ||||
Income tax expense
|
| | | | (5,109) | | | | | | (3,021) | | | | | ||||
Net of tax
|
| | | $ | 9,209 | | | | | $ | 5,436 | | | | | ||||
|
| | |
Actual
|
| |
For capital adequacy
purposes |
| |
To be well capitalized under
prompt corrective action provisions |
| |||||||||||||||||||||||||||
Company:
|
| |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| ||||||||||||||||||
At September 30, 2017: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total capital (to risk-weight assets)
|
| | | $ | 616,052 | | | | | | 15.11% | | | | | $ | 326,254 | | | | | | 8.0% | | | | | $ | 407,817 | | | | | | 10.0% | | |
Tier 1 capital (to risk-weighted assets)
|
| | | | 564,854 | | | | | | 13.85 | | | | | | 244,690 | | | | | | 6.0 | | | | | | 326,254 | | | | | | 8.0 | | |
Common equity tier 1 capital (to risk-weighted assets)
|
| | | | 513,854 | | | | | | 12.60 | | | | | | 183,518 | | | | | | 4.5 | | | | | | 265,081 | | | | | | 6.5 | | |
Tier 1 capital (to adjusted total assets)
|
| | | | 564,854 | | | | | | 10.59 | | | | | | 213,298 | | | | | | 4.0 | | | | | | 266,623 | | | | | | 5.0 | | |
At September 30, 2016: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total capital (to risk-weight assets)
|
| | | $ | 579,209 | | | | | | 15.93% | | | | | $ | 290,814 | | | | | | 8.0% | | | | | $ | 363,518 | | | | | | 10.0% | | |
Tier 1 capital (to risk-weighted assets)
|
| | | | 553,544 | | | | | | 14.68 | | | | | | 218,111 | | | | | | 6.0 | | | | | | 290,814 | | | | | | 8.0 | | |
Common equity tier 1 capital (to risk-weighted assets)
|
| | | | 483,091 | | | | | | 13.29 | | | | | | 163,583 | | | | | | 4.5 | | | | | | 236,287 | | | | | | 6.5 | | |
Tier 1 capital (to adjusted total assets)
|
| | | | 553,544 | | | | | | 10.70 | | | | | | 199,471 | | | | | | 4.0 | | | | | | 249,338 | | | | | | 5.0 | | |
| | |
Actual
|
| |
For capital adequacy
purposes |
| |
To be well capitalized under
prompt corrective action provisions |
| |||||||||||||||||||||||||||
Bank:
|
| |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| ||||||||||||||||||
At September 30, 2017: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total capital (to risk-weight assets)
|
| | | $ | 608,971 | | | | | | 14.95% | | | | | $ | 325,980 | | | | | | 8.0% | | | | | $ | 407,475 | | | | | | 10.0% | | |
Tier 1 capital (to risk-weighted assets)
|
| | | | 557,815 | | | | | | 13.69 | | | | | | 244,485 | | | | | | 6.0 | | | | | | 325,980 | | | | | | 8.0 | | |
Common equity tier 1 capital (to risk-weighted assets)
|
| | | | 557,815 | | | | | | 13.69 | | | | | | 183,364 | | | | | | 4.5 | | | | | | 264,859 | | | | | | 6.5 | | |
Tier 1 capital (to adjusted total assets)
|
| | | | 557,815 | | | | | | 10.47 | | | | | | 213,160 | | | | | | 4.0 | | | | | | 266,450 | | | | | | 5.0 | | |
At September 30, 2016: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total capital (to risk-weight assets)
|
| | | $ | 571,996 | | | | | | 15.67% | | | | | $ | 292,021 | | | | | | 8.0% | | | | | $ | 365,026 | | | | | | 10.0% | | |
Tier 1 capital (to risk-weighted assets)
|
| | | | 526,151 | | | | | | 14.42 | | | | | | 218,926 | | | | | | 6.0 | | | | | | 291,901 | | | | | | 8.0 | | |
Common equity tier 1 capital (to risk-weighted assets)
|
| | | | 526,151 | | | | | | 14.42 | | | | | | 164,194 | | | | | | 4.5 | | | | | | 237,169 | | | | | | 6.5 | | |
Tier 1 capital (to adjusted total assets)
|
| | | | 526,151 | | | | | | 10.56 | | | | | | 199,300 | | | | | | 4.0 | | | | | | 249,125 | | | | | | 5.0 | | |
| | |
September 30
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Assets
|
| | | | | | | | | | | | |
Cash and due from Bank
|
| | | $ | 1,537 | | | | | $ | 1,229 | | |
Short-term investments
|
| | | | 61 | | | | | | 72 | | |
Total cash and cash equivalents
|
| | | | 1,598 | | | | | | 1,301 | | |
Securities available for sale, at fair value
|
| | | | 2,879 | | | | | | 2,700 | | |
Accrued interest receivable
|
| | | | 18 | | | | | | 18 | | |
Investment in subsidiaries
|
| | | | 519,876 | | | | | | 482,583 | | |
Other assets
|
| | | | 2,842 | | | | | | 4,246 | | |
Total assets
|
| | | $ | 527,213 | | | | | $ | 490,848 | | |
Liabilities and Stockholder’s Equity
|
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | |
Borrowings
|
| | | $ | 50,643 | | | | | $ | 50,590 | | |
Accrued expenses and other liabilities
|
| | | | 656 | | | | | | 594 | | |
Total liabilities
|
| | | | 51,299 | | | | | | 51,184 | | |
Stockholder’s equity
|
| | | | 475,914 | | | | | | 439,664 | | |
Total liabilities and stockholder’s equity
|
| | | $ | 527,213 | | | | | $ | 490,848 | | |
|
| | |
Year ended
September 30 |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Income: | | | | | | | | | | | | | |
Securities available for sale
|
| | | $ | 162 | | | | | $ | 157 | | |
Interest earning deposits
|
| | | | 1 | | | | | | — | | |
Total interest income
|
| | | | 163 | | | | | | 157 | | |
Equity earnings in subsidiaries
|
| | | | 34,230 | | | | | | 35,743 | | |
| | | | | 34,393 | | | | | | 35,900 | | |
Expenses: | | | | | | | | | | | | | |
Interest expense on borrowings
|
| | | | 4,177 | | | | | | 4,177 | | |
Other expenses
|
| | | | 460 | | | | | | 355 | | |
| | | | | 4,637 | | | | | | 4,532 | | |
Income before income tax benefit
|
| | | | 29,756 | | | | | | 31,368 | | |
Income tax benefit
|
| | | | 1,316 | | | | | | 1,585 | | |
Net income
|
| | | $ | 31,072 | | | | | $ | 32,953 | | |
|
| | |
September 30
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Net income
|
| | | $ | 31,072 | | | | | $ | 32,953 | | |
Other comprehensive income (loss): | | | | | | | | | | | | | |
Unrealized holding gains arising during the period
|
| | | | 179 | | | | | | 13 | | |
Equity interest in subsidiary:
|
| | | | | | | | | | | | |
Unrealized holding gains arising during the period
|
| | | | (9,918) | | | | | | 4,306 | | |
Amortization of prior service cost
|
| | | | (73) | | | | | | (73) | | |
Reclassification adjustment of actuarial net loss
|
| | | | 7,593 | | | | | | 5,864 | | |
Change in funded status of retirement obligations
|
| | | | 7,397 | | | | | | (21,397) | | |
Total equity interest in subsidiary
|
| | | | 4,999 | | | | | | (11,300) | | |
Total other comprehensive income (loss)
|
| | | | 5,178 | | | | | | (11,287) | | |
Total comprehensive income for the year, net of tax
|
| | | $ | 36,250 | | | | | $ | 21,666 | | |
|
| | |
September 30
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 31,072 | | | | | $ | 32,953 | | |
Adjustments to reconcile net income to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Amortization of debt issuance costs
|
| | | | 53 | | | | | | 53 | | |
Deferred tax expense
|
| | | | 1 | | | | | | (2) | | |
Decrease (increase) decrease in other assets
|
| | | | 1,404 | | | | | | (1,600) | | |
Increase in accrued expenses and other liabilities
|
| | | | 62 | | | | | | 10 | | |
Undistributed earnings of subsidiary
|
| | | | (32,295) | | | | | | (32,744) | | |
Net cash provided by (used in) operating activities
|
| | | | 297 | | | | | | (1,330) | | |
Net increase (decrease) in cash and cash equivalents
|
| | | | 297 | | | | | | (1,330) | | |
Cash and cash equivalents at beginning of year
|
| | | | 1,301 | | | | | | 2,631 | | |
Cash and cash equivalents at end of year
|
| | | $ | 1,598 | | | | | $ | 1,301 | | |
|
| | |
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Annual Rates of Return as of
December 31, |
| |||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||
PIMCO Long-Term US Government Instl
|
| | | | 9.07% | | | | | | 1.38% | | | | | | -2.16% | | |
PIMCO Real Return Instl
|
| | | | 3.92% | | | | | | 5.04% | | | | | | -2.75% | | |
Royce Pennsylvania Mutual Instl
|
| | | | 16.44% | | | | | | 26.65% | | | | | | -11.34% | | |
UBS US Small Cap Growth P
|
| | | | 19.44% | | | | | | 6.69% | | | | | | -2.26% | | |
Virtus Ceredex Mid-Cap Value Equity R6
|
| | | | 11.98% | | | | | | 20.53% | | | | | | -5.63% | | |
Fidelity® | | | | | 23.82% | | | | | | 4.82% | | | | | | 3.35% | | |
Fidelity® 500 Index Premium
|
| | | | 21.79% | | | | | | 11.92% | | | | | | 1.35% | | |
Fidelity® Balanced
|
| | | | 16.50% | | | | | | 7.01% | | | | | | 0.41% | | |
Fidelity® Blue Chip Growth
|
| | | | 36.06% | | | | | | 1.59% | | | | | | 6.28% | | |
Fidelity® Capital & Income
|
| | | | 11.65% | | | | | | 10.75% | | | | | | -0.92% | | |
Fidelity® Capital Appreciation
|
| | | | 23.94% | | | | | | 3.18% | | | | | | 1.64% | | |
Fidelity® Diversified International
|
| | | | 26.65% | | | | | | -3.73% | | | | | | 3.12% | | |
Fidelity® Equity-Income
|
| | | | 13.36% | | | | | | 17.38% | | | | | | -3.52% | | |
Fidelity® Extended Market Index Premium
|
| | | | 18.18% | | | | | | 16.10% | | | | | | -3.32% | | |
Fidelity® Global ex US Index Premium
|
| | | | 27.35% | | | | | | 4.62% | | | | | | -5.72% | | |
Fidelity® GNMA
|
| | | | 1.75% | | | | | | 1.64% | | | | | | 1.20% | | |
Fidelity® Government MMkt
|
| | | | 0.51% | | | | | | 0.04% | | | | | | 0.01% | | |
Fidelity® Growth Company
|
| | | | 36.76% | | | | | | 6.01% | | | | | | 7.83% | | |
Fidelity® OTC
|
| | | | 38.59% | | | | | | 3.11% | | | | | | 10.92% | | |
Fidelity® US Bond Index Premium
|
| | | | 3.48% | | | | | | 2.50% | | | | | | 0.59% | | |
Fidelity Freedom® 2005
|
| | | | 10.47% | | | | | | 5.91% | | | | | | -0.33% | | |
Fidelity Freedom® 2010
|
| | | | 12.48% | | | | | | 6.42% | | | | | | -0.28% | | |
Fidelity Freedom® 2015
|
| | | | 14.28% | | | | | | 7.04% | | | | | | -0.34% | | |
Fidelity Freedom® 2020
|
| | | | 15.64% | | | | | | 7.26% | | | | | | -0.23% | | |
Fidelity Freedom® 2025
|
| | | | 16.82% | | | | | | 7.47% | | | | | | -0.16% | | |
Fidelity Freedom® 2030
|
| | | | 19.82% | | | | | | 8.13% | | | | | | -0.16% | | |
Fidelity Freedom® 2035
|
| | | | 22.00% | | | | | | 8.63% | | | | | | -0.21% | | |
Fidelity Freedom® 2040
|
| | | | 22.25% | | | | | | 8.60% | | | | | | -0.18% | | |
Fidelity Freedom® 2045
|
| | | | 22.21% | | | | | | 8.57% | | | | | | -0.16% | | |
Fidelity Freedom® 2050
|
| | | | 22.28% | | | | | | 8.63% | | | | | | -0.24% | | |
Fidelity Freedom® 2055
|
| | | | 22.31% | | | | | | 8.56% | | | | | | -0.20% | | |
Fidelity Freedom® 2060
|
| | | | 22.10% | | | | | | 8.61% | | | | | | -0.22% | | |
Fidelity Freedom® Income
|
| | | | 8.21% | | | | | | 5.16% | | | | | | -0.38% | | |
| |
Qualifying Account
|
| | |
Name on Account
|
| |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
Signature of Participant
|
| |
Date
|
|
|
SEC filing fee(1)
|
| | | $ | 66,370 | | |
|
FINRA filing fee(1)
|
| | | | 80,464 | | |
|
Nasdaq fees and expenses
|
| | | | 125,000 | | |
|
EDGAR, printing, postage and mailing
|
| | | | 750,000 | | |
|
Legal fees and expenses
|
| | | | 850,000 | | |
|
Accounting fees and expenses
|
| | | | 650,000 | | |
|
Appraiser’s fees and expenses
|
| | | | 122,500 | | |
|
Marketing firm expenses (including legal fees)(2)
|
| | | | 175,000 | | |
|
Records management agent fees and expenses
|
| | | | 75,000 | | |
|
Business plan fees and expenses
|
| | | | 100,000 | | |
|
Transfer agent and registrar fees and expenses
|
| | | | 30,000 | | |
|
Certificate printing
|
| | | | 10,000 | | |
|
Miscellaneous
|
| | | | 219,161 | | |
|
TOTAL
|
| | | $ | 3,253,495 | | |
|
Exhibit
|
| |
Description
|
| |
Location
|
|
24 | | | Power of Attorney | | | Previously filed | |
99.1 | | | Appraisal Report of RP Financial, LC. | | | Filed herewith | |
99.2 | | | Draft of Marketing Materials | | | Previously filed | |
99.3 | | | Draft of Subscription Order Form and Instructions | | | Previously filed | |
| COLUMBIA FINANCIAL, INC. | | |||
| By: | | | /s/ Thomas J. Kemly | |
| | | | Thomas J. Kemly President and Chief Executive Officer |
|
Name
|
| |
Title
|
| |
Date
|
|
/s/ Thomas J. Kemly
Thomas J. Kemly
|
| | President and Chief Executive Officer and Director (principal executive officer) | | |
February 6, 2018
|
|
/s/ Dennis E. Gibney
Dennis E. Gibney
|
| | Executive Vice President and Chief Financial Officer (principal financial and accounting officer) | | |
February 6, 2018
|
|
*
Noel R. Holland
|
| |
Director — Chairman of the Board of Directors
|
| | | |
*
Frank Czerwinski
|
| | Director | | | | |
*
Raymond G. Hallock
|
| | Director | | | | |
*
Henry Kuiken
|
| | Director | | | | |
*
Michael Massood, Jr.
|
| | Director | | | | |
*
Elizabeth E. Randall
|
| | Director | | | | |
*
John R. Salvetti
|
| | Director | | | | |
*
Robert Van Dyk
|
| | Director | | | | |
*
Pursuant to power of attorney previously filed with the Registration Statement on Form S-1 filed with the United States Securities and Exchange Commission on December 5, 2017.
|
| ||||||
By:
/s/ Thomas J. Kemly
Thomas J. Kemly
Attorney-in-Fact |
| | February 6, 2018 | | |
Exhibit 5.0
Suite 900 607 14th St., NW Washington DC 20005-2018 t 202 508 5800 f 202 508 5858 |
February 6, 2018 |
direct dial 202 508 5884 direct fax 202 204 5611 cgattuso@kilpatricktownsend.com |
Boards of Directors
Columbia Financial, Inc.
19-01 Route 208 North
Fair Lawn, New Jersey 07410
Ladies and Gentlemen:
We have acted as counsel to Columbia Financial, Inc., a Delaware corporation (the “Company”), in connection with the registration under the Securities Act of 1933, as amended (the “Act”), of up to 53,309,020 shares of common stock, $0.01 par value per share, of the Company (the “Shares”) pursuant to a registration statement on Form S-1 (the “Registration Statement”) initially filed with the Securities and Exchange Commission on December 5, 2017. The Registration Statement relates to up to 49,832,345 shares (the “Offering Shares”) that may be issued in a subscription offering, community offering and/or syndicated community offering or firm commitment public underwritten offering and up to 3,476,675 shares (the “Foundation Shares”) that may be contributed to the Columbia Bank Foundation, a private foundation, as described in the Registration Statement.
We have reviewed the Registration Statement, the Plan of Stock Issuance, as amended (the “Plan of Stock Issuance”), filed as Exhibit 2.0 to the Registration Statement, and the corporate proceedings of the Company with respect to the authorization of the issuance of the Shares. We have also examined originals or copies of such documents, corporate records, certificates of public officials and other instruments, and have conducted such other investigations of law and fact as we have deemed necessary or advisable for purposes of our opinion. In our examination, we have assumed, without verification, the genuineness of all signatures, the authenticity of all documents and instruments submitted to us as originals, and the conformity to the originals of all documents and instruments submitted to us as certified or conformed copies.
This opinion is limited solely to the Delaware General Corporation Law and the reported judicial decisions interpreting such law.
Board of Directors
Columbia Financial, Inc.
February 6, 2018
Page 2
For purposes of this opinion, we have assumed that, prior to the issuance of any shares, the Registration Statement, as finally amended, will have become effective under the Act.
Based upon and subject to the foregoing, it is our opinion that:
(i) the Offering Shares, when issued and sold in the manner described in the Registration Statement, will be validly issued, fully paid and nonassessable; and
(ii) when the Company issues and contributes the Foundation Shares in accordance with the terms of the Plan of Stock Issuance and as described in the Registration Statement, the Foundation Shares will be validly issued, fully paid and nonassessable.
We hereby consent to the filing of this opinion as an exhibit to the Registration Statement and as an exhibit to the Company’s Application for Approval of a Minority Stock Issuance by a Subsidiary of a Mutual Holding Company on Form MHC-2 (the “Federal Reserve Board Application”), and to the reference to our firm under the heading “Legal and Tax Opinions” in the prospectus which is part of the Registration Statement as such may be amended or supplemented, or incorporated by reference in any Registration Statement covering additional shares of Common Stock to be issued or sold under the Plan of Stock Issuance that is filed pursuant to Rule 462(b) of the Act, and to the reference to our firm in the Federal Reserve Board Application. In giving such consent, we do not hereby admit that we are experts or are otherwise within the category of persons whose consent is required under Section 7 of the Act or the rules or regulations of the Securities and Exchange Commission thereunder.
Very truly yours, | |
KILPATRICK TOWNSEND & STOCKTON LLP | |
/s/ Christina M. Gattuso | |
Christina M. Gattuso, a Partner |
Exhibit 23.2
Consent of Independent Registered Public Accounting Firm
The Board of Directors
Columbia Financial, Inc.:
We consent to the use of our report dated December 5, 2017 with respect to the consolidated balance sheets of Columbia Financial, Inc. and Subsidiaries as of September 30, 2017 and 2016, and the related consolidated statements of income, comprehensive income (loss), changes in stockholder’s equity, and cash flows for the years then ended included herein and to the references to our firm under the headings “Material Income Tax Consequences”, “Legal and Tax Opinions” and “Experts” in the prospectus.
/s/ KPMG LLP | |
Short Hills, New Jersey | |
February 6, 2018 |
Exhibit 99.1
February 2, 2018
Board of Directors
Columbia Bank MHC
Columbia Financial, Inc.
Columbia Bank
19-01 Route 208 North
Fair Lawn, New Jersey 07410
Members of the Board of Directors:
We have completed and hereby provide an updated appraisal of the estimated pro forma market value of the common stock which is to be issued in connection with the stock issuance transaction described below.
This Appraisal is furnished pursuant to the requirements stipulated in the Code of Federal Regulations and has been prepared in accordance with the “Guidelines for Appraisal Reports for the Valuation of Savings and Loan Associations Converting from Mutual to Stock Form of Organization” of the Office of Thrift Supervision (“OTS”) and accepted by the Federal Reserve Board (“FRB”), the Office of the Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation (“FDIC”), and applicable regulatory interpretations thereof. Our original appraisal report, dated November 8, 2017 (the "Original Appraisal"), and previous appraisal update report, dated January 12, 2018 (the “First Update”), are incorporated herein by reference. As in the preparation of our Original Appraisal and First Update, we believe the data and information used herein is reliable; however, we cannot guarantee the accuracy and completeness of such information.
On September 27, 2017, the Board of Directors of Columbia Bank MHC (the “MHC”), Columbia Financial, Inc. (“Columbia Financial” or the “Company”) and Columbia Bank adopted the plan of stock issuance (the “Plan”). Pursuant to the Plan, Columbia Financial will issue a majority of its common stock to the MHC and sell a minority of its common stock to the public. Concurrent with the completion of the public stock offering, Columbia Bank will receive at least 50% of the net stock proceeds and the balance will be retained by Columbia Financial. The MHC will own a controlling interest in the Company of at least 51% and the Company will be the sole subsidiary of the MHC.
Columbia Financial will offer its common stock in a subscription offering to Eligible Account Holders, Tax-Qualified Employee Benefit Plans including Columbia Bank’s employee stock ownership plan (the “ESOP”), Supplemental Eligible Account Holders, and Other Depositors and Eligible Borrowers as such terms are defined for purposes of applicable regulatory guidelines governing stock offerings by mutual institutions. To the extent that shares remain available for purchase after satisfaction of all subscriptions received in the subscription offering, the shares may be offered for sale to members of the general public in a community offering and a syndicated or firm commitment offering. At least 50% of the net proceeds from the stock offering will be invested in Columbia Bank and the balance of the net proceeds will be retained by the Company.
Washington Headquarters | |
Three Ballston Plaza | Telephone: (703) 528-1700 |
1100 North Glebe Road, Suite 600 | Fax No.: (703) 528-1788 |
Arlington, VA 22201 | Toll-Free No.: (866) 723-0594 |
www.rpfinancial.com | E-Mail: mail@rpfinancial.com |
Board of Directors
February 2, 2018
Page 2
At this time, no other activities are contemplated for the Company other than the ownership of Columbia Bank, a loan to the newly-formed ESOP and reinvestment of the proceeds that are retained by the Company. In the future, Columbia Financial may acquire or organize other operating subsidiaries, diversify into other banking-related activities, pay dividends or repurchase its stock, although there are no specific plans to undertake such activities at the present time.
The Plan provides for a contribution to the Columbia Bank Foundation, an existing charitable foundation previously established by Columbia Bank (the “Foundation”). The Foundation contribution will be funded with 3.0% of the number of shares of common stock issued in the stock issuance. The purpose of the Foundation is to provide financial support to charitable organizations in the communities in which Columbia Bank operates and to enable those communities to share in Columbia Bank’s long-term growth. The Foundation is dedicated completely to community activities and the promotion of charitable causes.
This updated appraisal reflects the following noteworthy items: (1) a review of stock market conditions since the date of the First Update.
The estimated pro forma market value is defined as the price at which Columbia Financial’s common stock, immediately upon completion of the minority stock offering, would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.
Our valuation is not intended, and must not be construed, as a recommendation of any kind as to the advisability of purchasing shares of the common stock. Moreover, because such valuation is necessarily based upon estimates and projections of a number of matters, all of which are subject to change from time to time, no assurance can be given that persons who purchase shares of common stock in the stock offering will thereafter be able to buy or sell such shares at prices related to the foregoing valuation of the pro forma market value thereof. RP Financial is not a seller of securities within the meaning of any federal and state securities laws and any report prepared by RP Financial shall not be used as an offer or solicitation with respect to the purchase or sale of any securities. RP Financial maintains a policy which prohibits the company, its principals or employees from purchasing stock of its client institutions.
Discussion of Relevant Considerations
1. | Stock Market Conditions |
Since the date of the First Update, the performance of the broader stock market has been mixed. The Dow Jones Industrial Average (“DJIA”) closed above 26000 for the first time heading into the second half of January 2018, in which the new 1,000 point milestone was achieved in just eight trading days after topping 25000. The upward surge in the U.S. stock indexes continued into late-January, as equities were lifted to fresh record highs by some strong fourth quarter earnings reports, data showing strong economic growth and a deal by Congress to end the federal government shutdown. Stocks reversed course at end of January and the first two trading days of February, amid worries about rising bond yields, new competition in the healthcare sector and rising oil production. On February 2, 2018, the DJIA closed at 25520.96 or
Board of Directors
February 2, 2018
Page 3
1.09% lower since the date of the First Update and the NASDAQ closed at 7240.95 or 0.28% lower since the date of the First Update.
The market for thrift stocks traded unevenly as well, since the date of the First Update. Thrift shares participated in the broader stock market rally going in the second half of January 2018, as the banking sector was viewed to be one of the sectors to benefit most from the cut in the federal corporate income tax rate. Concerns of higher interest rates and inflation picking up contributed to thrift shares pulling back at the close of January. The sell-off in the broader stock market following the release of the January employment report impacted thrift shares as well, as the January employment report showing a tightening labor market and rising wages further stoked fears that interest rates would continue to rise. On February 2, 2018, the SNL Index for all publicly-traded thrifts closed at 956.7, a decrease of 1.36% since January 12, 2018.
Since the date of the First Update, the updated pricing measures for the Peer Group generally reflected more significant decreases compared to the decrease in the SNL Index for all publicly-traded thrifts. Comparatively, the decreases in the updated pricing measures for all publicly-traded thrifts were generally similar to the decrease in the SNL Index for all publicly-traded thrifts. It should be noted that the increases reflected in the update P/E multiples for the Peer Group and all publicly-traded thrifts are believed to be largely related to a decline in fourth quarter earnings that have been experienced by financial institutions in general, as the result of the one-time charge recorded to income tax expense stemming from the change in the federal corporate income rate. Based on closing stock prices as of February 2, 2018, nine out of the Peer Group companies were trading at lower prices compared to their closing stock prices as of the date of the First Update. A comparative pricing analysis of the Peer Group and all publicly-traded thrifts is shown in the following table, based on closing stock market prices as of January 12, 2018 and February 2, 2018.
Average Pricing Characteristics | ||||||||||||
At Jan. 12 | At Feb. 2, | % | ||||||||||
2018 | 2018 | Change | ||||||||||
Peer Group | ||||||||||||
Price/Earnings (x) | 22.18 | x | 24.15 | x | 8.88 | % | ||||||
Price/Core Earnings (x) | 21.90 | 22.15 | 1.14 | |||||||||
Price/Book (%) | 146.17 | % | 137.58 | % | (5.88 | ) | ||||||
Price/Tangible Book (%) | 161.06 | 151.61 | (5.87 | ) | ||||||||
Price/Assets (%) | 18.40 | 16.62 | (9.67 | ) | ||||||||
Avg. Mkt. Capitalization ($Mil) | $903.83 | $879.06 | (2.74 | ) | ||||||||
All Publicly-Traded Thrifts | ||||||||||||
Price/Earnings (x) | 23.56 | x | 24.25 | x | 2.93 | % | ||||||
Price/Core Earnings (x) | 20.86 | 21.08 | 1.05 | |||||||||
Price/Book (%) | 138.71 | % | 137.09 | % | (1.17 | ) | ||||||
Price/Tangible Book (%) | 154.08 | 153.51 | (0.37 | ) | ||||||||
Price/Assets (%) | 16.84 | 16.62 | (1.31 | ) | ||||||||
Avg. Mkt. Capitalization ($Mil) | $627.75 | $634.37 | 1.05 |
As set forth in the Original Appraisal, the "new issue" market is separate and distinct from the market for seasoned issues like the Peer Group companies in that the pricing ratios for converting issues are computed on a pro forma basis, specifically: (1) the numerator
Board of Directors
February 2, 2018
Page 4
and denominator are both impacted by the conversion offering amount, unlike existing stock issues in which price change affects only the numerator; and (2) the pro forma pricing ratio incorporates assumptions regarding source and use of proceeds, effective tax rates, stock plan purchases, etc. which impact pro forma financials, whereas pricing for existing issues are based on reported financials. The distinction between the pricing of converting and existing issues is perhaps most evident in the case of the price/book ("P/B") ratio in that the P/B ratio of a converting thrift will typically result in a discount to book value, whereas in the current market for existing thrifts the P/B ratio may reflect a premium to book value. Therefore, it is appropriate to also consider the market for new issues, both at the time of the conversion and in the aftermarket.
As shown in Table 1, the most recent first-step MHC offerings were completed in October 2017. Two of the first-step MHC offerings were closed at the top of their respective offering ranges and Seneca Financial’s first-step MHC offering closed slightly below the top of its offering range. The average closing fully-converted pro forma price/tangible book ratio of the three recent first-step offerings equaled 73.0%. On average, the three recent first-step MHC offerings reflected price appreciation of 20.5% after the first week of trading. As of February 2, 2018, the three recent first-step MHC offerings reflected a 17.9% increase in price on average.
Summary of Adjustments
In the First Update, we made the following adjustments to Columbia Financial’s pro forma value based upon our comparative analysis to the Peer Group:
PreviousValuation | ||
Key Valuation Parameters: | Adjustment | |
Financial Condition | No Adjustment | |
Profitability, Growth and Viability of Earnings | Slight Downward | |
Asset Growth | No Adjustment | |
Primary Market Area | Slight Upward | |
Dividends | Slight Downward | |
Liquidity of the Shares | No Adjustment | |
Marketing of the Issue | No Adjustment | |
Management | No Adjustment | |
Effect of Govt. Regulations and Regulatory Reform | No Adjustment |
The factors concerning all of the valuation parameters with the exception of marketing of the issue did not change since the First Update. Accordingly, those parameters were not discussed further in this update.
The general market for thrift stocks was down slightly since the date of the First Update, with the SNL Index for all publicly-traded thrifts decreasing 1.36% compared to a decrease of 1.09% in the DJIA. The updated pricing measures for all publicly-traded thrifts generally showed decreases that were similar to the decrease in the SNL Index, while the updated pricing measures for the Peer Group companies generally showed more significant decreases compared to the decrease in the SNL Index.
Overall, taking into account the foregoing factors, we believe that a decrease in the Company’s estimated pro market value as set forth in the First Update is appropriate.
Board of Directors
February 2, 2018
Page 5
Table 1
Pricing Characteristics and After-Market Trends
Conversions Completed in the Last Three Months
Institutional Information | Pre-Conversion Data | Offering Information | Contribution to | Insider Purchases | Pro Forma Data | Post-IPO Pricing Trends | ||||||||||||||||||||||||||
Financial Info. | Asset Quality | Char. Found. | % Off Incl. Fdn.+Merger Shares | Pricing Ratios(2)(5) | Financial Charac. | Closing Price: | ||||||||||||||||||||||||||
Excluding Foundation | % of | Benefit Plans | Initial | First | After | After | ||||||||||||||||||||||||||
Conversion | Equity/ | NPAs/ | Res. | Gross | % | % of | Exp./ | Public Off. | Recog. | Stk | Mgmt.& | Div. | Core | Core | Core | IPO | Trading | % | First | % | First | % | Thru | % | ||||||||
Institution | Date | Ticker | Assets | Assets | Assets | Cov. | Proc. | Offer | Mid. | Proc. | Form | Inc. Fdn. | ESOP | Plans | Option | Dirs. | Yield | P/TB | P/E | P/A | ROA | TE/A | ROE | Price | Day | Chge | Week(3) | Chge | Month(4) | Chge | 2/2/2018 | Chge |
($Mil) | (%) | (%) | (%) | ($Mil.) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%)(1) | (%) | (%) | (x) | (%) | (%) | (%) | (%) | ($) | ($) | (%) | ($) | (%) | ($) | (%) | ($) | (%) | ||||
Mutual Holding Companies | ||||||||||||||||||||||||||||||||
Seneca Financial Corp. - NY* | 10/12/17 | SNNF-OTC Pink | $ 172 | 6.49% | 0.74% | 99% | $ 9.1 | 46% | 132% | 12.1% | N.A. | N.A. | 8.5% | 4.3% | 10.7% | 5.5% | 0.00% | 71.7% | 44.2x | 10.5% | 0.3% | 10.1% | 2.5% | $10.00 | $11.80 | 18.0% | $10.00 | 0.0% | $9.50 | -5.0% | $9.20 | -8.0% |
FFBW, Inc. - WI | 10/11/17 | FFBW-NASDAQ | $ 236 | 14.53% | 1.08% | 86% | $ 29.5 | 45% | 133% | 3.7% | N.A. | N.A. | 8.7% | 4.4% | 10.9% | 4.0% | 0.00% | 72.8% | NM | 22.6% | 0.1% | 22.6% | 0.4% | $10.00 | $11.53 | 15.3% | $11.15 | 11.5% | $11.15 | 11.5% | $11.15 | 11.5% |
PDL Community Bancorp - NY* | 10/2/17 | PDLB-NASDAQ | $ 811 | 11.44% | 3.05% | 138% | $ 83.1 | 45% | 132% | 3.5% | C/S $200K | 3.3% | 8.1% | 4.1% | 10.1% | 3.2% | 0.00% | 74.5% | 117.2x | 19.1% | 0.2% | 18.6% | 1.1% | $10.00 | $14.90 | 49.0% | $14.99 | 49.9% | $15.06 | 50.6% | $15.02 | 50.2% |
Averages - MHC Conversions: | $ 406 | 10.82% | 1.62% | 108% | $ 40.6 | 45% | 132% | 6.4% | N.A. | N.A. | 8.4% | 4.2% | 10.6% | 4.3% | 0.00% | 73.0% | 80.7x | 17.4% | 0.2% | 17.1% | 1.3% | $10.00 | $12.74 | 27.4% | $12.05 | 20.5% | $11.90 | 19.0% | $11.79 | 17.9% | ||
Medians - MHC Conversions: | $ 236 | 11.44% | 1.08% | 99% | $ 29.5 | 45% | 132% | 3.7% | N.A. | N.A. | 8.5% | 4.3% | 10.7% | 4.0% | 0.00% | 72.8% | 80.7x | 19.1% | 0.2% | 18.6% | 1.1% | $10.00 | $11.80 | 18.0% | $11.15 | 11.5% | $11.15 | 11.5% | $11.15 | 11.5% | ||
Note: * - Appraisal performed by RP Financial; BOLD = RP Fin. Did the business plan, "NT" - Not Traded; "NA" - Not Applicable, Not Available; C/S-Cash/Stock. | ||||||||||||||||||||||||||||||||
(1) As a percent of MHC offering for MHC transactions. | (5) Mutual holding company pro forma data on full conversion basis. | |||||||||||||||||||||||||||||||
(2) Does not take into account the adoption of SOP 93-6. | (6) Simultaneously completed acquisition of another financial institution. | |||||||||||||||||||||||||||||||
(3) Latest price if offering is less than one week old. | (7) Simultaneously converted to a commercial bank charter. | |||||||||||||||||||||||||||||||
(4) Latest price if offering is more than one week but less than one month old. | (8) Former credit union. | 2/2/2018 |
Board of Directors
February 2, 2018
Page 6
Valuation Approaches: Fully-Converted and MHC Reported Basis
In applying the accepted valuation methodology promulgated by the FRB, OCC and the FDIC, i.e., the pro forma market value approach, we considered the three key pricing ratios in valuing Columbia Financial’s to-be-issued stock — price/earnings ("P/E"), price/book ("P/B"), and price/assets ("P/A") approaches — all performed on a pro forma basis including the effects of the stock proceeds. In computing the pro forma impact of the conversion and the related pricing ratios, we have incorporated the valuation parameters disclosed in Columbia Financial’s prospectus for effective tax rate, stock benefit plan assumptions, the Foundation and offering expenses (summarized in Exhibits 4 and 5). The assumptions utilized in the pro forma analysis in calculating the Company’s full conversion value were consistent with the assumptions utilized for the minority stock offering, except expenses were assumed to equal 2.0% of gross proceeds (summarized in Exhibits 2 and 3).
In computing the pro forma impact of the offering and the related pricing ratios, the valuation parameters utilized did not change from the First Update.
Consistent with the Original Appraisal and First Update, this updated appraisal continues to be based primarily on fundamental analysis techniques applied to the Peer Group, including the P/E approach, the P/B approach and the P/A approach. Also consistent with the Original Appraisal and First Update, this updated appraisal incorporates a "technical" analysis of recently completed offerings and publicly-traded MHCs on a fully-converted basis.
The Company has adopted “Employers’ Accounting for Employee Stock Ownership Plans” (“ASC 718-40”), which causes earnings per share computations to be based on shares issued and outstanding excluding unreleased ESOP shares. For purposes of preparing the pro forma pricing analyses, we have reflected all shares issued in the offering, including all ESOP shares, to capture the full dilutive impact, particularly since the ESOP shares are economically dilutive, receive dividends and can be voted. However, we did consider the impact of ASC 718-40 in the valuation.
Based on the foregoing, we have concluded that a decrease in Columbia Financial’s value is appropriate. Therefore, as of February 2, 2018, RP Financial concluded the pro forma market value of Columbia Financial’s full conversion offering equaled $876,288,660 at the midpoint, equal to 87,628,866 shares at $10.00 per share. The updated midpoint value represents a decrease of 5.56% from the pro forma value set forth in the First Update.
1. P/E Approach. The application of the P/E valuation method requires calculating the Company’s pro forma market value by applying a valuation P/E multiple to the pro forma earnings base. In applying this technique, we considered both reported earnings and a recurring earnings base, that is, earnings adjusted to exclude any one-time non-operating items, plus the estimated after-tax earnings benefit of the reinvestment of the net proceeds. The Company’s reported earnings equaled $24.757 million for the twelve months ended December 31, 2017. In deriving Columbia Financial’s core earnings, the adjustments made to reported earnings were to eliminate the net loss on securities transactions equal to $2.160 million, the one-time cash contribution to fund the Foundation equal to $3.0 million and the charge to income tax expense resulting from the change in the federal corporate tax rate equal to $4.703 million. As shown below, on a tax
Board of Directors
February 2, 2018
Page 7
effected basis, the Company’s core earnings were determined to equal $32.762 million for the twelve months ended December 31, 2017.
Amount | |
($000) | |
Net income | $24,757 |
Add: Non-recurring cash contribution to Foundation(1) | 1,920 |
Add: Net loss on securities transactions (1) | 1,382 |
Add: Non-recurring charge to income tax expense | 4,703 |
Core earnings estimate | $32,762 |
(1) Tax effected at 36.0%.
Based on Columbia Financial’s reported and core earnings, and incorporating the impact of the pro forma assumptions discussed previously, the Company’s reported and core P/E multiples (fully-converted basis) at the $876.3 million updated midpoint value equaled 33.32 times and 25.55 times, respectively (see Table 2). The Company’s updated reported and core P/E multiples provided for premiums of 37.97% and 15.35% relative to the Peer Group’s average reported and core P/E multiples of 24.15 times and 22.15 times, respectively (versus premiums of 58.52% and 23.20% relative to the Peer Group’s average reported and core P/E multiples as indicated in the First Update). The Company’s updated reported and core P/E multiples (fully-converted basis) indicated premiums of 61.36% and 21.78% relative to the Peer Group’s median reported and core P/E multiples, which equaled 20.65 times and 20.98 times, respectively (versus premiums of 58.95% and 24.62% relative to the Peer Group’s median reported and core P/E multiples as indicated in the First Update). The Company’s updated pro forma fully-converted P/E ratios based on reported earnings at the minimum and the super maximum equaled 28.57x and 43.25x, respectively, and based on core earnings at the minimum and the super maximum equaled 21.86x and 33.30x, respectively.
On an MHC reported basis, the Company’s reported and core P/E multiples at the $876.3 million updated midpoint value equaled 35.55 times and 26.71 times, respectively (see Table 3). The Company’s updated reported and core P/E multiples provided for premiums of 47.21% and 20.59% relative to the Peer Group’s average reported and core P/E multiples of 24.15 times and 22.15 times, respectively (versus premiums of 68.62% and 29.09% relative to the Peer Group’s average reported and core P/E multiples as indicated in the First Update). The Company’s updated reported and core P/E multiples (MHC basis) indicated premiums of 72.16% and 27.31% relative to the Peer Group’s median reported and core P/E multiples, which equaled 20.65 times and 20.98 times, respectively (versus premiums of 69.08% and 30.58% relative to the Peer Group’s median reported and core P/E multiples as indicated in the First Update). The Company’s updated pro forma MHC P/E ratios based on reported earnings at the minimum and the super maximum equaled 30.05x and 46.66x, respectively, and based on core earnings at the minimum and the super maximum equaled 22.71x and 35.29x, respectively.
2. P/B Approach. P/B ratios have generally served as a useful benchmark in the valuation of thrift stocks, with the greater determinant of long term value being earnings. In
Board of Directors
February 2, 2018
Page 8
Table 2
Fully-Converted Market Pricing Versus Peer Group
Columbia Financial, Inc.
As of February 2, 2018
Market | Per Share Data | ||||||||||||||||||||||||||||
Capitalization | Core | Book | Dividends(3) | Financial Characteristics(5) | Offering | ||||||||||||||||||||||||
Price/ | Market | 12 Month | Value/ | Pricing Ratios(2) | Amount/ | Payout | Total | Comm Eq./ | Comm T. Eq./ | NPAs/ | Reported | Core | Size | ||||||||||||||||
Share | Value | EPS(1) | Share | P/E | P/B | P/A | P/TB | P/Core | Share | Yield | Ratio(4) | Assets | Assets | Assets | Assets | ROAA | ROAE | ROAA | ROAE | ($Mil) | |||||||||
($) | ($Mil) | ($) | ($) | (x) | (%) | (%) | (%) | (x) | ($) | (%) | (%) | ($Mil) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | ||||||||||
Columbia Financial, Inc. | NJ | ||||||||||||||||||||||||||||
Super Maximum | $10.00 | $1,158.89 | $0.30 | $12.48 | 43.25x | 80.13% | 17.19% | 80.45% | 33.30x | $0.00 | 0.00% | 0.00% | $6,742 | 21.46% | 21.38% | 0.37% | 0.40% | 1.85% | 0.52% | 2.41% | $1,124.13 | ||||||||
Maximum | $10.00 | $1,007.73 | $0.34 | $13.09 | 37.99x | 76.39% | 15.24% | 76.69% | 29.18x | $0.00 | 0.00% | 0.00% | $6,614 | 19.95% | 19.86% | 0.38% | 0.40% | 2.01% | 0.52% | 2.62% | $977.50 | ||||||||
Midpoint | $10.00 | $876.29 | $0.39 | $13.80 | 33.32x | 72.46% | 13.47% | 72.83% | 25.55x | $0.00 | 0.00% | 0.00% | $6,504 | 18.59% | 18.50% | 0.39% | 0.40% | 2.18% | 0.53% | 2.84% | $850.00 | ||||||||
Minimum | $10.00 | $744.85 | $0.46 | $14.75 | 28.57x | 67.80% | 11.65% | 68.17% | 21.86x | $0.00 | 0.00% | 0.00% | $6,393 | 17.18% | 17.09% | 0.39% | 0.41% | 2.37% | 0.53% | 3.10% | $722.50 | ||||||||
All Non-MHC Public Companies(6) | |||||||||||||||||||||||||||||
Averages | $24.91 | $634.37 | $1.33 | $17.12 | 24.25x | 137.09% | 16.62% | 153.51% | 21.08x | $0.40 | 1.74% | 74.00% | $3,806 | 12.71% | 11.71% | 1.08% | 0.70% | 5.91% | 0.74% | 6.29% | |||||||||
Median | $17.89 | $205.11 | $0.82 | $15.34 | 21.32x | 128.95% | 16.56% | 137.37% | 18.48x | $0.36 | 1.56% | 49.06% | $1,443 | 12.03% | 10.97% | 0.94% | 0.67% | 5.51% | 0.70% | 5.90% | |||||||||
All Non-MHC State of NJ(6) | |||||||||||||||||||||||||||||
Averages | $18.82 | $1,327.62 | $0.66 | $14.40 | 26.14x | 132.81% | 18.62% | 152.78% | 25.74x | $0.43 | 2.19% | 72.57% | $7,702 | 14.20% | 12.46% | 0.79% | 0.69% | 5.03% | 0.65% | 4.53% | |||||||||
Medians | $16.88 | $861.15 | $0.50 | $12.87 | 26.25x | 135.26% | 18.08% | 137.73% | 25.90x | $0.40 | 2.37% | 58.14% | $4,844 | 13.19% | 13.13% | 0.61% | 0.63% | 4.00% | 0.57% | 3.89% | |||||||||
State of NJ(1) | |||||||||||||||||||||||||||||
ISBC | Investors Bancorp, Inc. | NJ | $13.81 | $4,057.52 | $0.43 | $10.21 | $32.12 | 135.26% | 16.82% | 137.73% | 31.92x | $0.36 | 2.61% | 58.14% | $25,129 | 12.44% | NA | 0.61% | 0.52% | 4.00% | 0.53% | 4.03% | |||||||
KRNY | Kearny Financial Corp. | NJ | $13.50 | $1,008.49 | $0.20 | $12.44 | NM | 108.53% | 22.16% | 121.59% | NM | $0.12 | 0.89% | 126.32% | $4,844 | 20.42% | NA | NA | 0.31% | 1.42% | 0.33% | 1.49% | |||||||
MSBF | MSB Financial Corp. | NJ | $17.89 | $99.77 | $0.49 | $12.66 | $36.50 | 141.29% | 18.32% | 141.29% | NM | $0.00 | 0.00% | 86.73% | $563 | 12.97% | 12.97% | NA | 0.54% | 3.67% | 0.54% | 3.67% | |||||||
NFBK | Northfield Bancorp, Inc. | NJ | $16.88 | $825.09 | $0.51 | $13.09 | $31.85 | 128.95% | 20.64% | 137.51% | 32.97x | $0.40 | 2.37% | 49.06% | $3,991 | 16.01% | 15.16% | 0.61% | 0.63% | 3.88% | 0.61% | 3.75% | |||||||
OCFC | OceanFirst Financial Corp. | NJ | $26.43 | $861.15 | NA | $18.47 | $20.65 | 143.10% | 15.90% | 194.63% | NM | $0.60 | 2.27% | 35.16% | $5,416 | 11.11% | 8.42% | 1.15% | 0.80% | 7.20% | NA | NA | |||||||
ORIT | Oritani Financial Corp. | NJ | $16.85 | $743.96 | $0.85 | NA | $17.55 | 137.37% | NA | 137.37% | 19.88x | $0.70 | 4.15% | 101.56% | $4,122 | 13.28% | 13.28% | NA | 1.05% | 7.75% | 0.94% | 6.95% | |||||||
PFS | Provident Financial Services, Inc. | NJ | $26.39 | $1,697.33 | $1.45 | $19.52 | $18.20 | 135.21% | 17.83% | 199.32% | 18.21x | $0.80 | 3.03% | 51.03% | $9,845 | 13.19% | NA | NA | 0.99% | 7.28% | 0.98% | 7.28% | |||||||
Comparable Group | |||||||||||||||||||||||||||||
Averages | $17.97 | $879.06 | $0.77 | $13.42 | 24.15x | 137.58% | 16.62% | 151.61% | 22.15x | $0.42 | 2.34% | 57.39% | $5,095 | 12.82% | 11.00% | 0.57% | 0.72% | 6.20% | 0.70% | 6.01% | |||||||||
Medians | $16.87 | $843.60 | $0.85 | $13.34 | 20.65x | 133.16% | 16.44% | 143.53% | 20.98x | $0.44 | 2.36% | 50.02% | $5,104 | 11.66% | 9.33% | 0.53% | 0.80% | 7.01% | 0.69% | 6.20% | |||||||||
Comparable Group | |||||||||||||||||||||||||||||
BNCL | Beneficial Bancorp, Inc. | PA | $15.55 | $1,178.13 | $0.34 | NA | 48.59x | 113.41% | NA | 135.94% | NM | $0.24 | 1.54% | 56.25% | $5,799 | 17.85% | 15.34% | 0.38% | 0.41% | 2.33% | 0.44% | 2.46% | |||||||
DCOM | Dime Community Bancshares, Inc. | NY | $19.15 | $716.58 | $0.99 | $16.00 | 13.88x | 119.72% | 11.19% | 131.98% | 20.30x | $0.56 | 2.92% | 30.43% | $6,403 | 9.35% | 8.55% | 0.14% | 0.84% | 8.94% | 0.61% | 6.50% | |||||||
KRNY | Kearny Financial Corp. | NJ | $13.50 | $1,008.49 | $0.20 | $12.44 | NM | 108.53% | 22.16% | 121.59% | NM | $0.12 | 0.89% | 126.32% | $4,844 | 20.42% | NA | 0.44% | 0.31% | 1.42% | 0.33% | 1.49% | |||||||
NFBK | Northfield Bancorp, Inc. | NJ | $16.88 | $825.09 | $0.51 | $13.09 | 31.85x | 128.95% | 20.64% | 137.51% | 32.97x | $0.40 | 2.37% | 49.06% | $3,991 | 16.01% | 15.16% | 0.61% | 0.63% | 3.88% | 0.61% | 3.75% | |||||||
OCFC | OceanFirst Financial Corp. | NJ | $26.43 | $1,222.27 | $1.20 | $18.47 | 20.65x | 143.10% | 15.90% | 194.63% | 21.65x | $0.60 | 2.27% | 35.16% | $5,416 | 11.11% | 8.42% | 1.15% | 0.80% | 7.20% | 0.76% | 6.92% | |||||||
ORIT | Oritani Financial Corp. | NJ | $16.85 | $743.96 | $1.16 | NA | 17.55x | 137.37% | NA | 137.37% | 13.97x | $0.70 | 4.15% | 101.56% | $4,122 | 13.28% | 13.28% | 0.36% | 1.05% | 7.75% | 1.25% | 9.13% | |||||||
TRST | TrustCo Bank Corp NY | NY | $8.65 | $832.90 | $0.45 | $4.76 | 19.31x | 181.73% | 16.97% | 181.95% | 19.31x | $0.26 | 3.03% | 58.59% | $4,908 | 9.34% | 9.33% | 0.81% | 0.88% | 9.64% | 0.88% | 9.64% | |||||||
FBNK | First Connecticut Bancorp, Inc. | CT | $25.55 | $407.60 | $1.01 | $17.08 | 25.05x | 149.60% | 13.36% | 149.60% | 25.32x | $0.60 | 2.35% | 50.98% | $3,050 | 8.93% | 8.93% | 0.72% | 0.55% | 5.96% | 0.54% | 5.90% | |||||||
EBSB | Meridian Bancorp, Inc. | MA | $20.30 | $1,001.26 | $0.71 | $11.96 | 24.76x | 169.71% | 20.70% | 175.94% | 28.61x | $0.20 | 0.99% | 20.73% | $5,299 | 12.20% | 11.82% | 0.40% | 0.89% | 6.82% | 0.77% | 5.90% | |||||||
UBNK | United Financial Bancorp, Inc. | CT | $16.80 | $854.30 | $1.12 | $13.58 | 15.70x | 123.71% | 12.06% | 149.55% | 15.02x | $0.48 | 2.86% | 44.86% | $7,114 | 9.75% | 8.20% | 0.69% | 0.80% | 8.09% | 0.84% | 8.45% |
(1) | Core income, on a diluted per-share basis. Core income is net income after taxes and before extraordinary items, less net income attributable to noncontrolling interest, gain on the sale of securities, amortization of intangibles, goodwill and nonrecurring items. Assumed tax rate is 35%. |
(2) | P/E = Price to earnings; P/B = Price to book; P/A = Price to assets; P/TB = Price to tangible book value; and P/Core = Price to core earnings. P/E and P/Core =NM if the ratio is negative or above 35x. |
(3) | Indicated 12 month dividend, based on last quarterly dividend declared. |
(4) | Indicated 12 month dividend as a percent of trailing 12 month earnings. |
(5) | Equity and tangible equity equal common equity and tangible common equity, respectively. ROAA (return on average assets) and ROAE (return on average equity) are indicated ratios based on trailing 12 month earnings and average equity and assets balances. |
(6) | Excludes from averages and medians those companies the subject of actual or rumored acquisition activities or unusual operating characteristics. |
Source: S&P Global Market Intelligence and RP Financial, LC. calculations. The information provided in this report has been obtained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such information.
Board of Directors
February 2, 2018
Page 9
Table 3
MHC Market Pricing Versus Peer Group
Columbia Financial, Inc.
As of February 2, 2018
Market | Per Share Data | ||||||||||||||||||||||||||||
Capitalization | Core | Book | Dividends(3) | Financial Characteristics(5) | Offering | ||||||||||||||||||||||||
Price/ | Market | 12 Month | Value/ | Pricing Ratios(2) | Amount/ | Payout | Total | Comm Eq./ | Comm T. Eq./ | NPAs/ | Reported | Core | Size | ||||||||||||||||
Share | Value | EPS(1) | Share | P/E | P/B | P/A | P/TB | P/Core | Share | Yield | Ratio(4) | Assets | Assets | Assets | Assets | ROAA | ROAE | ROAA | ROAE | ($Mil) | |||||||||
($) | ($Mil) | ($) | ($) | (x) | (%) | (%) | (%) | (x) | ($) | (%) | (%) | ($Mil) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | ||||||||||
Columbia Financial, Inc. | NJ | ||||||||||||||||||||||||||||
Super Maximum | $10.00 | $1,158.89 | $2.80 | $7.84 | 46.66x | 127.55% | 18.68% | 128.37% | 35.29x | $0.00 | 0.00% | 0.00% | $6,203 | 14.65% | 14.56% | 0.40% | 0.40% | 2.73% | 0.53% | 3.61% | $498.32 | ||||||||
Maximum | $10.00 | $1,007.73 | $0.33 | $8.45 | 40.60x | 118.34% | 16.40% | 119.19% | 30.70x | $0.00 | 0.00% | 0.00% | $6,146 | 13.85% | 13.76% | 0.41% | 0.40% | 2.92% | 0.53% | 3.86% | $433.32 | ||||||||
Midpoint | $10.00 | $876.29 | $0.37 | $9.14 | 35.55x | 109.41% | 14.38% | 110.13% | 26.71x | $0.00 | 0.00% | 0.00% | $6,096 | 13.14% | 13.05% | 0.41% | 0.41% | 3.10% | 0.54% | 4.09% | $376.80 | ||||||||
Minimum | $10.00 | $744.85 | $0.44 | $10.09 | 30.05x | 99.11% | 12.32% | 99.90% | 22.71x | $0.00 | 0.00% | 0.00% | $6,046 | 12.43% | 12.33% | 0.41% | 0.41% | 3.30% | 0.54% | 4.36% | $320.28 | ||||||||
All Non-MHC Public Companies(6) | |||||||||||||||||||||||||||||
Averages | $24.91 | $634.37 | $1.33 | $17.12 | 24.25x | 137.09% | 16.62% | 153.51% | 21.08x | $0.40 | 1.74% | 74.00% | $3,806 | 12.71% | 11.71% | 1.08% | 0.70% | 5.91% | 0.74% | 6.29% | |||||||||
Median | $17.89 | $205.11 | $0.82 | $15.34 | 21.32x | 128.95% | 16.56% | 137.37% | 18.48x | $0.36 | 1.56% | 49.06% | $1,443 | 12.03% | 10.97% | 0.94% | 0.67% | 5.51% | 0.70% | 5.90% | |||||||||
All Non-MHC State of NJ(6) | |||||||||||||||||||||||||||||
Averages | $18.82 | $1,327.62 | $0.66 | $14.40 | 26.14x | 132.81% | 18.62% | 152.78% | 25.74x | $0.43 | 2.19% | 72.57% | $7,702 | 14.20% | 12.46% | 0.79% | 0.69% | 5.03% | 0.65% | 4.53% | |||||||||
Medians | $16.88 | $861.15 | $0.50 | $12.87 | 26.25x | 135.26% | 18.08% | 137.73% | 25.90x | $0.40 | 2.37% | 58.14% | $4,844 | 13.19% | 13.13% | 0.61% | 0.63% | 4.00% | 0.57% | 3.89% | |||||||||
State of NJ(1) | |||||||||||||||||||||||||||||
ISBC | Investors Bancorp, Inc. | NJ | $13.81 | $4,057.52 | $0.43 | $10.21 | $32.12 | 135.26% | 16.82% | 137.73% | 31.92x | $0.36 | 2.61% | 58.14% | $25,129 | 12.44% | NA | 0.61% | 0.52% | 4.00% | 0.53% | 4.03% | |||||||
KRNY | Kearny Financial Corp. | NJ | $13.50 | $1,008.49 | $0.20 | $12.44 | NM | 108.53% | 22.16% | 121.59% | NM | $0.12 | 0.89% | 126.32% | $4,844 | 20.42% | NA | NA | 0.31% | 1.42% | 0.33% | 1.49% | |||||||
MSBF | MSB Financial Corp. | NJ | $17.89 | $99.77 | $0.49 | $12.66 | $36.50 | 141.29% | 18.32% | 141.29% | NM | $0.00 | 0.00% | 86.73% | $563 | 12.97% | 12.97% | NA | 0.54% | 3.67% | 0.54% | 3.67% | |||||||
NFBK | Northfield Bancorp, Inc. | NJ | $16.88 | $825.09 | $0.51 | $13.09 | $31.85 | 128.95% | 20.64% | 137.51% | 32.97x | $0.40 | 2.37% | 49.06% | $3,991 | 16.01% | 15.16% | 0.61% | 0.63% | 3.88% | 0.61% | 3.75% | |||||||
OCFC | OceanFirst Financial Corp. | NJ | $26.43 | $861.15 | NA | $18.47 | $20.65 | 143.10% | 15.90% | 194.63% | NM | $0.60 | 2.27% | 35.16% | $5,416 | 11.11% | 8.42% | 1.15% | 0.80% | 7.20% | NA | NA | |||||||
ORIT | Oritani Financial Corp. | NJ | $16.85 | $743.96 | $0.85 | NA | $17.55 | 137.37% | NA | 137.37% | 19.88x | $0.70 | 4.15% | 101.56% | $4,122 | 13.28% | 13.28% | NA | 1.05% | 7.75% | 0.94% | 6.95% | |||||||
PFS | Provident Financial Services, Inc. | NJ | $26.39 | $1,697.33 | $1.45 | $19.52 | $18.20 | 135.21% | 17.83% | 199.32% | 18.21x | $0.80 | 3.03% | 51.03% | $9,845 | 13.19% | NA | NA | 0.99% | 7.28% | 0.98% | 7.28% | |||||||
Comparable Group | |||||||||||||||||||||||||||||
Averages | $17.97 | $879.06 | $0.77 | $13.42 | 24.15x | 137.58% | 16.62% | 151.61% | 22.15x | $0.42 | 2.34% | 57.39% | $5,095 | 12.82% | 11.00% | 0.57% | 0.72% | 6.20% | 0.70% | 6.01% | |||||||||
Medians | $16.87 | $843.60 | $0.85 | $13.34 | 20.65x | 133.16% | 16.44% | 143.53% | 20.98x | $0.44 | 2.36% | 50.02% | $5,104 | 11.66% | 9.33% | 0.53% | 0.80% | 7.01% | 0.69% | 6.20% | |||||||||
Comparable Group | |||||||||||||||||||||||||||||
BNCL | Beneficial Bancorp, Inc. | PA | $15.55 | $1,178.13 | $0.34 | NA | 48.59x | 113.41% | NA | 135.94% | NM | $0.24 | 1.54% | 56.25% | $5,799 | 17.85% | 15.34% | 0.38% | 0.41% | 2.33% | 0.44% | 2.46% | |||||||
DCOM | Dime Community Bancshares, Inc. | NY | $19.15 | $716.58 | $0.99 | $16.00 | 13.88x | 119.72% | 11.19% | 131.98% | 20.30x | $0.56 | 2.92% | 30.43% | $6,403 | 9.35% | 8.55% | 0.14% | 0.84% | 8.94% | 0.61% | 6.50% | |||||||
KRNY | Kearny Financial Corp. | NJ | $13.50 | $1,008.49 | $0.20 | $12.44 | NM | 108.53% | 22.16% | 121.59% | NM | $0.12 | 0.89% | 126.32% | $4,844 | 20.42% | NA | 0.44% | 0.31% | 1.42% | 0.33% | 1.49% | |||||||
NFBK | Northfield Bancorp, Inc. | NJ | $16.88 | $825.09 | $0.51 | $13.09 | 31.85x | 128.95% | 20.64% | 137.51% | 32.97x | $0.40 | 2.37% | 49.06% | $3,991 | 16.01% | 15.16% | 0.61% | 0.63% | 3.88% | 0.61% | 3.75% | |||||||
OCFC | OceanFirst Financial Corp. | NJ | $26.43 | $1,222.27 | $1.20 | $18.47 | 20.65x | 143.10% | 15.90% | 194.63% | 21.65x | $0.60 | 2.27% | 35.16% | $5,416 | 11.11% | 8.42% | 1.15% | 0.80% | 7.20% | 0.76% | 6.92% | |||||||
ORIT | Oritani Financial Corp. | NJ | $16.85 | $743.96 | $1.16 | NA | 17.55x | 137.37% | NA | 137.37% | 13.97x | $0.70 | 4.15% | 101.56% | $4,122 | 13.28% | 13.28% | 0.36% | 1.05% | 7.75% | 1.25% | 9.13% | |||||||
TRST | TrustCo Bank Corp NY | NY | $8.65 | $832.90 | $0.45 | $4.76 | 19.31x | 181.73% | 16.97% | 181.95% | 19.31x | $0.26 | 3.03% | 58.59% | $4,908 | 9.34% | 9.33% | 0.81% | 0.88% | 9.64% | 0.88% | 9.64% | |||||||
FBNK | First Connecticut Bancorp, Inc. | CT | $25.55 | $407.60 | $1.01 | $17.08 | 25.05x | 149.60% | 13.36% | 149.60% | 25.32x | $0.60 | 2.35% | 50.98% | $3,050 | 8.93% | 8.93% | 0.72% | 0.55% | 5.96% | 0.54% | 5.90% | |||||||
EBSB | Meridian Bancorp, Inc. | MA | $20.30 | $1,001.26 | $0.71 | $11.96 | 24.76x | 169.71% | 20.70% | 175.94% | 28.61x | $0.20 | 0.99% | 20.73% | $5,299 | 12.20% | 11.82% | 0.40% | 0.89% | 6.82% | 0.77% | 5.90% | |||||||
UBNK | United Financial Bancorp, Inc. | CT | $16.80 | $854.30 | $1.12 | $13.58 | 15.70x | 123.71% | 12.06% | 149.55% | 15.02x | $0.48 | 2.86% | 44.86% | $7,114 | 9.75% | 8.20% | 0.69% | 0.80% | 8.09% | 0.84% | 8.45% |
(1) | Core income, on a diluted per-share basis. Core income is net income after taxes and before extraordinary items, less net income attributable to noncontrolling interest, gain on the sale of securities, amortization of intangibles, goodwill and nonrecurring items. Assumed tax rate is 35%. |
(2) | P/E = Price to earnings; P/B = Price to book; P/A = Price to assets; P/TB = Price to tangible book value; and P/Core = Price to core earnings. P/E and P/Core =NM if the ratio is negative or above 35x. |
(3) | Indicated 12 month dividend, based on last quarterly dividend declared. |
(4) | Indicated 12 month dividend as a percent of trailing 12 month earnings. |
(5) | Equity and tangible equity equal common equity and tangible common equity, respectively. ROAA (return on average assets) and ROAE (return on average equity) are indicated ratios based on trailing 12 month earnings and average equity and assets balances. |
(6) | Excludes from averages and medians those companies the subject of actual or rumored acquisition activities or unusual operating characteristics. |
Source: S&P Global Market Intelligence and RP Financial, LC. calculations. The information provided in this report has been obtained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such information.
Board of Directors
February 2, 2018
Page 10
applying the P/B approach, we considered both reported book value and tangible book value. Based on the $876.3 million updated midpoint value, the Company’s P/B and P/TB ratios (fully-converted basis) equaled 72.46% and 72.83%, respectively. In comparison to the average P/B and P/TB ratios indicated for the Peer Group of 137.58% and 151.61%, respectively, Columbia Financial’s updated ratios reflected a discount of 47.33% on a P/B basis and a discount of 51.96% on a P/TB basis (versus discounts of 49.33% and 53.81% from the Peer Group’s average P/B and P/TB ratios as indicated in the First Update). In comparison to the median P/B and P/TB ratios indicated for the Peer Group of 133.16% and 143.53%, respectively, Columbia Financial’s updated ratios (fully-converted basis) reflected discounts of 45.58% and 49.26% at the $876.3 million updated midpoint value (versus discounts of 46.09% and 52.38% from the Peer Group’s median P/B and P/TB ratios as indicated in the First Update). At the top of the super range, the Company’s updated P/B and P/TB ratios (fully-converted basis) equaled 80.13% and 80.45%, respectively. In comparison to the Peer Group’s average P/B and P/TB ratios, the Company’s P/B and P/TB ratios at the top of the super range reflected discounts of 41.76% and 46.94%, respectively. In comparison to the Peer Group’s median P/B and P/TB ratios, the Company’s P/B and P/TB ratios at the top of the super range reflected discounts of 39.82% and 43.95%, respectively. RP Financial considered the discounts under the P/B approach to be reasonable, given the nature of the calculation of the P/B ratio which mathematically results in a ratio discounted to book value. The discounts reflected under the P/B approach were also supported by the premiums reflected in the Company’s P/E multiples.
On an MHC reported basis, the Company’s P/B and P/TB ratios at the $876.3 million updated midpoint value equaled 109.41% and 110.13%, respectively. In comparison to the average P/B and P/TB ratios indicated for the Peer Group of 137.58% and 151.61%, respectively, Columbia Financial’s updated ratios reflected discounts of 20.48% on a P/B basis and 27.36% on a P/TB basis (versus discounts of 22.70% and 29.36% from the Peer Group’s average P/B and P/TB ratios as indicated in the First Update). In comparison to the median P/B and P/TB ratios indicated for the Peer Group of 133.16% and 143.53%, respectively, Columbia Financial’s updated ratios (MHC basis) reflected discounts of 17.84% and 23.27% at the $876.3 million updated midpoint value (versus discounts of 17.60% and 27.18% from the Peer Group’s median P/B and P/TB ratios as indicated in the First Update). At the top of the super range, the Company’s P/B and P/TB ratios (MHC basis) equaled 127.55% and 128.37%, respectively. In comparison to the Peer Group’s average P/B and P/TB ratios, the Company’s P/B and P/TB ratios at the top of the super range reflected discounts of 7.29% and 15.33%, respectively. In comparison to the Peer Group’s median P/B and P/TB ratios, the Company’s P/B and P/TB ratios at the top of the super range reflected discounts of 4.21% and 10.56%, respectively.
3. P/A Approach. P/A ratios are generally not as a reliable indicator of market value, as investors do not place significant weight on total assets as a determinant of market value. Investors place significantly greater weight on book value and earnings, which have received greater weight in our valuation analysis. At the $876.3 million updated midpoint value Columbia Financial’s pro forma P/A ratio (fully-converted basis) equaled 13.47%. In comparison to the Peer Group's average P/A ratio of 16.62%, Columbia Financial’s P/A ratio indicated a discount of 18.95% (versus a discount of 22.99% at the midpoint valuation in the First Update). In comparison to the Peer Group’s median P/A ratio of 16.44%, Columbia Financial’s P/A ratio (fully-converted basis) at the $876.3 million updated midpoint value indicated a discount of 18.07% (versus a discount of 22.57% at the midpoint valuation in the First Update).
Board of Directors
February 2, 2018
Page 11
On an MHC reported basis, Columbia Financial’s pro forma P/A ratio at the $876.3 million updated midpoint value equaled 14.38%. In comparison to the Peer Group's average P/A ratio of 16.62%, Columbia Financial’s P/A ratio indicated a discount of 13.48% (versus a discount of 17.55% at the midpoint valuation in the First Update). In comparison to the Peer Group’s median P/A ratio of 16.44%, Columbia Financial’s P/A ratio (MHC basis) at the $876.3 million updated midpoint value indicated a discount of 12.53% (versus a discount of 17.10% at the midpoint valuation in the First Update).
Comparison to Publicly-Traded MHCs
As indicated in Original Appraisal and First Update, we believe there are a number of characteristics of MHC shares that make them different from the shares of fully-converted companies. These factors include: (1) lower aftermarket liquidity in the MHC shares since less than 50% of the shares are available for trading; (2) no opportunity for public shareholders to exercise voting control; (3) the potential pro forma impact of second-step conversions on the pricing of MHC institutions; and (4) the regulatory policies regarding the accounting for net assets held by the MHC in a second-step conversion and, thereby, lessening the attractiveness of paying cash dividends. The above characteristics of MHC shares have provided MHC stocks with different trading characteristics versus fully-converted companies. To account for the unique trading characteristics of MHC shares, RP Financial has placed the financial data and pricing ratios of the publicly-traded MHCs on a fully-converted basis to make them comparable for valuation purposes. Using the per share and pricing information of the publicly-traded MHCs on a fully-converted basis accomplishes a number of objectives. First, such figures eliminate distortions that result when trying to compare institutions that have different public ownership interests outstanding. Secondly, such an analysis provides ratios that are comparable to the pricing information of fully-converted public companies and are directly applicable to determining the pro forma market value range of the 100% ownership interest in Columbia Financial as an MHC. This technique is validated by the investment community's evaluation of MHC pricing, which also incorporates the pro forma impact of a second-step conversion based on the current market price.
To calculate the fully-converted pricing information for MHCs, the reported financial information for the public MHCs incorporate the following assumptions: (1) all shares owned by the MHC are assumed to be sold at the current trading price in a second step-conversion; (2) the gross proceeds from such a sale are adjusted to reflect reasonable offering expenses and standard stock based benefit plan parameters that would be factored into a second-step conversion of an MHC institution; and (3) net proceeds are assumed to be reinvested at market rates on a tax effected basis. Book value per share and earnings per share figures for the public MHCs were adjusted by the impact of the assumed second step-conversion, resulting in an estimation of book value per share and earnings per share figures on a fully-converted basis. Table 4 on the following page shows the calculation of per share financial data (fully-converted basis) for each of the ten publicly-traded MHC institutions.
The table below shows an updated comparative pricing analysis of the publicly-traded MHCs on a fully-converted basis versus the Company’s Peer Group, based on closing stock prices as of February 2, 2018. In comparison to the Peer Group’s P/TB ratio, the P/TB ratio of the publicly-traded MHCs reflected a discount of 37.91%. In comparison to the Peer Group’s P/E
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February 2, 2018
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Table 4 |
Calculation of Implied Per Share Data - Incorporating MHC Second Step Conversion |
Publicly Traded MHC Institutions |
Per Share | Net | Net | Pro Forma | |||||||||||||||
Current Ownership | TTM NI | Tang. | Share | Gross | Capital | Income | Net Inc./ | Bk Value/ | Tang. Bk. | Assets/ | ||||||||
Ticker | Name | City | State | Exhange | Public | MHC Shares | Total Shares | Reported | Bk Value | Assets | Price | Proceeds(1) | Increase(2) | Increase(3) | Share | Share | Value/Share | Share |
CFBI | Community First Bancshares, Inc. (MHC) | Covington | GA | NASDAQ | 3,467,595 | 4,070,655 | 7,538,250 | $0.18 | $10.19 | $36.85 | $11.20 | $45,591,336 | $39,208,549 | $424,273 | $0.24 | $15.39 | $15.39 | $42.06 |
GCBC | Greene County Bancorp, Inc. (MHC) | Catskill | NY | NASDAQ | 3,894,350 | 4,609,264 | 8,503,614 | $1.43 | $10.21 | $122.02 | $35.75 | $164,781,188 | $141,711,822 | $1,533,454 | $1.61 | $26.88 | $26.88 | $138.69 |
HONE | HarborOne Bancorp, Inc. (MHC) | Brockton | MA | NASDAQ | 15,381,261 | 17,281,034 | 32,662,295 | $0.36 | $10.01 | $81.42 | $18.86 | $325,920,301 | $280,291,459 | $3,033,014 | $0.45 | $19.01 | $18.60 | $90.00 |
KFFB | Kentucky First Federal Bancorp (MHC) | Frankfort | KY | NASDAQ | 3,716,577 | 4,727,938 | 8,444,515 | $0.11 | $6.23 | $36.06 | $8.97 | $42,431,825 | $36,491,370 | $394,871 | $0.16 | $12.27 | $10.55 | $40.38 |
LSBK | Lake Shore Bancorp, Inc. (MHC) | Dunkirk | NY | NASDAQ | 2,465,447 | 3,636,875 | 6,102,322 | $0.48 | $12.81 | $84.03 | $17.00 | $61,826,875 | $53,171,113 | $575,361 | $0.58 | $21.52 | $21.52 | $92.74 |
MGYR | Magyar Bancorp, Inc. (MHC) | New Brunswick | NJ | NASDAQ | 2,620,296 | 3,200,450 | 5,820,746 | $0.24 | $8.50 | $103.60 | $12.76 | $40,850,544 | $35,131,468 | $380,155 | $0.31 | $14.53 | $14.53 | $109.64 |
OFED | Oconee Federal Financial Corp. (MHC) | Seneca | SC | NASDAQ | 1,591,712 | 4,164,415 | 5,756,127 | $0.89 | $14.45 | $82.47 | $28.40 | $118,269,386 | $101,711,672 | $1,100,615 | $1.08 | $32.66 | $32.12 | $100.14 |
PDLB | PDL Community Bancorp (MHC) | Bronx | NY | NASDAQ | 8,917,642 | 9,545,387 | 18,463,029 | $0.10 | $8.89 | $47.80 | $15.02 | $143,371,713 | $123,299,673 | $1,334,217 | $0.17 | $15.57 | $15.57 | $54.47 |
PVBC | Provident Bancorp, Inc. (MHC) | Amesbury | MA | NASDAQ | 4,593,665 | 5,034,323 | 9,627,988 | $0.82 | $12.05 | $96.45 | $24.25 | $122,082,333 | $104,990,806 | $1,136,098 | $0.94 | $22.96 | $22.96 | $107.35 |
TFSL | TFS Financial Corporation (MHC) | Cleveland | OH | NASDAQ | 54,172,618 | 227,119,132 | 281,291,750 | $0.32 | $5.97 | $48.68 | $15.13 | $3,436,312,467 | $2,955,228,722 | $31,978,324 | $0.43 | $16.51 | $16.48 | $59.18 |
(1) | Gross proceeds calculated as stock price multiplied by the number of shares owned by the MHC (i.e. non-public shares). |
(2) | Net increase in capital reflects gross proceeds less offering expenses, contra-equity account for leveraged ESOP and Restricted Stock Plan. For MHC's with assets at the MHC level, the net increase in capital also includes consolidation of MHC assets with the capital of the institution concurrent with hypothetical second step. |
Offering Expense Percent: | 2.00% | ||
ESOP Percent Purchase: | 8.00% | ||
RRP Percent Purchase: | 4.00% |
(3) | Net increase in earnings reflects after-tax reinvestment income (assumes ESOP and RRP do not generate reinvestment income), less after-tax ESOP amortization and RRP vesting. |
After-Tax Reinvestment Rate: | 3.50% | ||
ESOP Loan Term (Yrs.): | 10 | ||
Recognition Plan Vesting (Yrs.): | 5 | ||
Effective Tax Rate: | 34.00% |
Source: S&P Global Market Intelligence and RP Financial, LC. calculations.
Board of Directors
February 2, 2018
Page 13
multiple, the P/E multiple of the publicly-traded MHCs reflected a premium of 72.01%. Detailed pricing characteristics of the fully-converted MHCs is shown in Table 5.
Publicly-Traded | ||||||||
MHCs | Peer Group | |||||||
Pricing Ratios (Averages)(1) | ||||||||
Price/earnings (x) | 41.54 | x | 24.15 | x | ||||
Price/tangible book (%) | 94.14 | % | 151.61 | % | ||||
Price/assets (%) | 22.96 | 16.62 |
(1) Based on stock market prices as of February 2, 2018.
In comparison to the publicly-traded MHCs, the Company’s pro forma P/TB ratio (fully-converted basis) of 72.83% at the $876.3 million updated midpoint value reflected a discount of 22.64%. At the top of the super range, the Company’s P/TB ratio (fully-converted basis) of 80.45% reflected a discount of 14.54%. In comparison to the publicly-traded MHCs, the Company’s pro forma P/E multiple (fully-converted basis) of 33.32 times at the $876.3 million updated midpoint value reflected a discount of 19.79%. At the top of the super range, the Company’s P/E multiple (fully-converted basis) of 43.25 times reflected a premium of 4.12%.
It should be noted that in a comparison of the publicly-traded MHCs to Columbia Financial, the publicly-traded MHCs maintain certain inherit characteristics in support of increasing the attractiveness of their stocks relative to Columbia Financial’s stock as an MHC that will just be completing an IPO: (1) the seasoned publicly-traded MHCs are viewed as potential candidates to complete a second-step offering; and (2) some of the publicly-traded MHCs have been grandfathered to waive dividend payments to the MHC pursuant to receiving an annual majority vote by the depositors to approve the waiver of dividends.
Comparison to Recent MHC Offerings
In addition to the fundamental analysis applied to the Peer Group, RP Financial utilized a technical analysis of recent conversion offerings. As indicated in the Original Appraisal and First Update, the pricing characteristics of recent conversion offerings are not the primary determinate of value. Consistent with the Original Appraisal and First Update, particular focus was placed on the P/TB approach in this analysis since the P/E multiples do not reflect the actual impact of reinvestment and the source of the conversion funds (i.e., external funds versus deposit withdrawals).
As discussed previously, the most recent first-step offerings were completed in October 2017. In comparison to the 73.00% average closing forma P/TB ratio of the three recent first step MHC offerings (see Table 5), the Company’s P/TB ratio of 72.83% at the midpoint value reflects an implied discount of 0.23%. At the top of the super range, the Company’s P/TB ratio of 80.45% reflects an implied premium of 10.21% relative to the average P/TB ratio of the recent first step MHC offerings at closing.
Board of Directors
February 2, 2018
Page 14
Table 5
MHC Institutions, Implied Pricing Ratios, Full Conversion Basis
Financial Data as of the Most Recent Quarter or Twelve Month Period Available
Prices as of February 2, 2018
Key Financial Data(2) | ||||||||||||||||||||||
Per Share Data | Pricing Ratios(2) | Dividends | LTM | |||||||||||||||||||
Stock | Mkt | LTM | Tang. | P/E | Price/ | Price/ | Price/ | Ann Div | Div. | Div Pay | Total | Tang. | Reported | |||||||||
Ticker | Company Name | City | State | Exchange | Price(1) | Value | EPS | BV/Sh | LTM | Book | TBk | Assts | Rate | Yield | Ratio | Assets | E/A | ROAA | ROAE | |||
($) | ($M) | ($) | ($) | (x) | (%) | (%) | (%) | ($) | (%) | (%) | ($000) | (%) | (%) | (%) | ||||||||
Publicly Traded MHCs, Full Conversion Basis - Averages | 18.73 | 618.8 | 0.60 | 19.46 | 41.54 | 92.57 | 94.14 | 22.96 | 0.22 | 1.33 | 53.24 | 2,524,476 | 24.91 | 0.65 | 2.71 | |||||||
Publicly Traded MHCs, Full Conversion Basis - Medians | 16.07 | 198.5 | 0.44 | 17.54 | 38.21 | 89.73 | 90.12 | 24.08 | 0.16 | 0.55 | 12.12 | 821,964 | 24.67 | 0.59 | 2.49 | |||||||
Publicly Traded MHCs, Full Conversion Basis | ||||||||||||||||||||||
CFBI | Community First Bancshares, Inc. (MHC) | Covington | GA | NASDAQ | 11.20 | 84.4 | 0.24 | 15.39 | 47.19 | 72.78 | 72.78 | 26.63 | 0.00 | 0.00 | 0.0 | 317,024 | 36.59 | 0.56 | 1.54 | |||
GCBC | Greene County Bancorp, Inc. (MHC) | Catskill | NY | NASDAQ | 35.75 | 304.0 | 1.61 | 26.88 | 22.21 | 133.00 | 133.00 | 25.78 | 0.39 | 1.09 | 24.2 | 1,179,359 | 19.38 | 1.16 | 5.99 | |||
HONE | HarborOne Bancorp, Inc. (MHC) | Brockton | MA | NASDAQ | 18.86 | 616.0 | 0.45 | 18.60 | 41.75 | 99.21 | 101.42 | 20.95 | 0.00 | 0.00 | 0.0 | 2,939,750 | 20.66 | 0.50 | 2.38 | |||
KFFB | Kentucky First Federal Bancorp (MHC) | Frankfort | KY | NASDAQ | 8.97 | 75.8 | 0.16 | 10.55 | 57.73 | 73.15 | 85.06 | 22.23 | 0.40 | 4.46 | 257.3 | 340,996 | 26.13 | 0.39 | 1.27 | |||
LSBK | Lake Shore Bancorp, Inc. (MHC) | Dunkirk | NY | NASDAQ | 17.00 | 103.7 | 0.58 | 21.52 | 29.53 | 78.99 | 78.99 | 18.33 | 0.32 | 1.88 | 55.6 | 565,932 | 23.21 | 0.62 | 2.68 | |||
MGYR | Magyar Bancorp, Inc. (MHC) | New Brunswick | NJ | NASDAQ | 12.76 | 74.3 | 0.31 | 14.53 | 41.20 | 87.83 | 87.83 | 11.64 | 0.00 | 0.00 | 0.0 | 638,175 | 13.25 | 0.28 | 2.13 | |||
OFED | Oconee Federal Financial Corp. (MHC) | Seneca | SC | NASDAQ | 28.40 | 163.5 | 1.08 | 32.12 | 26.31 | 86.96 | 88.43 | 28.36 | 0.40 | 1.41 | 37.1 | 576,408 | 32.07 | 1.08 | 3.30 | |||
PDLB | PDL Community Bancorp (MHC) | Bronx | NY | NASDAQ | 15.02 | 277.3 | 0.17 | 15.57 | 88.47 | 96.48 | 96.48 | 27.57 | 0.00 | 0.00 | 0.0 | 1,005,752 | 28.58 | 0.31 | 1.09 | |||
PVBC | Provident Bancorp, Inc. (MHC) | Amesbury | MA | NASDAQ | 24.25 | 233.5 | 0.94 | 22.96 | 25.83 | 105.63 | 105.63 | 22.59 | 0.00 | 0.00 | 0.0 | 1,033,570 | 21.39 | 0.87 | 4.09 | |||
TFSL | TFS Financial Corporation (MHC) | Cleveland | OH | NASDAQ | 15.13 | 4,255.9 | 0.43 | 16.48 | 35.22 | 91.62 | 91.81 | 25.56 | 0.68 | 4.49 | 158.3 | 16,647,792 | 27.84 | 0.73 | 2.60 |
Source: S&P Global Market Intelligence and RP Financial, LC. calculations.
Board of Directors
February 2, 2018
Page 15
Valuation Conclusion
We have concluded that the Company’s estimated pro forma market value should be decreased since the date of the First Update. Accordingly, it is our opinion that, as of February 2, 2018, the estimated aggregate pro forma market value of the shares to be issued immediately following the conversion, both shares issued publicly as well as to the MHC, equaled $876,288,660 at the midpoint, equal to 87,628,866 shares offered at a per share value of $10.00. Pursuant to conversion guidelines, the 15% offering range indicates a minimum value of $744,845,360 and a maximum value of $1,007,731,960. Based on the $10.00 per share offering price determined by the Board, this valuation range equates to total shares outstanding of 74,484,536 at the minimum and 100,773,196 at the maximum. In the event the appraised value is subject to an increase, the aggregate pro forma market value may be increased up to a super maximum value of $1,158,891,750 without a resolicitation. Based on the $10.00 per share offering price, the super maximum value would result in total shares outstanding of 115,889,175. The Board of Directors has established a public offering range such that the public ownership of the Company will constitute a 43.0% ownership interest prior to the issuance of shares to the Foundation. Accordingly, the offering to the public of the minority stock will equal $320,283,500 at the minimum, $376,804,120 at the midpoint, $433,324,740 at the maximum and $498,323,450 at the super maximum of the valuation range. Based on the public offering range and inclusive of the shares issued to the Foundation, equal to 3.0% of the shares issued in the stock issuance, the public ownership of shares will represent 46.0% of the shares issued throughout the valuation range. The pro forma valuation calculations relative to the Peer Group (fully-converted basis) are shown in Table 2 and are detailed in Exhibit 2 and Exhibit 3; the pro forma valuation calculations relative to the Peer Group based on reported financials are shown in Table 3 and are detailed in Exhibits 4 and 5.
Respectfully submitted, | |
RP® FINANCIAL, LC. | |
Ronald S. Riggins | |
President and Managing Director | |
Gregory E. Dunn | |
Director |
EXHIBITS
LIST OF EXHIBITS
Exhibit | |
Number | Description |
1 | Stock Prices: As of February 2, 2018 |
2 | Pro Forma Analysis Sheet – Fully Converted Basis |
3 | Pro Forma Effect of Conversion Proceeds – Fully Converted Basis |
4 | Pro Forma Analysis Sheet – Minority Stock Offering |
5 | Pro Forma Effect of Conversion Proceed – Minority Stock Offering |
6 | Firm Qualifications Statement |
EXHIBIT 1
Stock Prices
As of February 2, 2018
RP® Financial, LC.
Exhibit I-A
Weekly Thrift Market Line - Part One
Prices As of February 2, 2018
Market Capitalization | Price Change Data | Current Per Share Financials | ||||||||||||||||
Price/ | Shares | Market | 52 Week (1) | % Change From | LTM | LTM Core | BV/ | TBV/ | Assets/ | |||||||||
Share(1) | Outstanding | Capitalization | High | Low | Last Wk | Last Wk | 52 Wks (2) | MRY (2) | EPS (3) | EPS (3) | Share | Share (4) | Share | |||||
($) | (000) | ($Mil) | ($) | ($) | ($) | (%) | (%) | (%) | ($) | ($) | ($) | ($) | ($) | |||||
Companies | ||||||||||||||||||
BCTF | Bancorp 34, Inc. | NM | 15.02 | 3,444 | 51.7 | 15.29 | 12.50 | 15.10 | -0.53 | 16.43 | 1.83 | 1.54 | 1.56 | 15.08 | 15.01 | 105.46 | ||
BNCL | Beneficial Bancorp, Inc. | PA | 15.55 | 75,764 | 1,178.1 | 17.50 | 14.30 | 16.35 | -4.89 | -6.61 | -5.47 | 0.32 | 0.34 | NA | NA | 76.54 | ||
BHBK | Blue Hills Bancorp, Inc. | MA | 19.20 | 26,827 | 515.1 | 22.05 | 16.40 | 19.90 | -3.52 | 0.26 | -4.48 | 0.67 | 0.55 | 14.83 | 14.47 | 99.47 | ||
BOFI | BofI Holding, Inc. | CA | 36.58 | 62,499 | 2,286.2 | 38.51 | 21.60 | 33.78 | 8.29 | 27.68 | 22.34 | 2.12 | 2.11 | 13.85 | 13.85 | 142.66 | ||
BYFC | Broadway Financial Corporation | CA | 2.50 | 27,451 | 68.6 | 2.67 | 1.47 | 2.45 | 2.04 | 58.23 | 5.93 | 0.17 | 0.15 | 1.75 | 1.75 | 16.05 | ||
BLMT | BSB Bancorp, Inc. | MA | 29.95 | 9,715 | 291.0 | 32.15 | 26.65 | 30.60 | -2.12 | 7.93 | 2.39 | 1.70 | 1.69 | 18.07 | 18.07 | 257.31 | ||
CFFN | Capitol Federal Financial, Inc. | KS | 13.12 | 134,416 | 1,763.5 | 15.49 | 12.85 | 13.27 | -1.13 | -13.74 | -2.16 | 0.71 | 0.71 | 9.77 | 9.77 | 66.88 | ||
CARV | Carver Bancorp, Inc. | NY | 2.51 | 3,696 | 9.3 | 7.95 | 2.01 | 2.88 | -12.85 | -26.39 | -13.69 | -1.19 | -1.20 | 0.42 | 0.42 | 180.30 | ||
CHFN | Charter Financial Corporation | GA | 19.40 | 15,132 | 293.6 | 21.11 | 15.81 | 18.62 | 4.19 | 13.05 | 10.60 | 0.91 | 0.99 | 14.42 | 11.59 | 108.62 | ||
CWAY | Coastway Bancorp, Inc. | RI | 21.79 | 4,392 | 95.7 | 22.10 | 16.20 | 21.80 | -0.03 | 30.10 | 2.79 | 0.76 | 0.76 | 16.15 | 16.15 | 159.29 | ||
DCOM | Dime Community Bancshares, Inc. | NY | 19.15 | 37,419 | 716.6 | 22.65 | 18.35 | 20.10 | -4.73 | -7.49 | -8.59 | 1.38 | 1.18 | 16.00 | 14.51 | 171.13 | ||
EFBI | Eagle Financial Bancorp, Inc. | OH | 15.91 | 1,613 | 25.7 | 19.57 | 10.00 | 15.81 | 0.63 | NA | -1.61 | NA | NA | 16.76 | 16.76 | 80.35 | ||
ESBK | Elmira Savings Bank | NY | 20.60 | 3,317 | 68.3 | 21.75 | 18.90 | 20.60 | 0.00 | -1.18 | 0.73 | 1.28 | 1.28 | 17.07 | 13.36 | 167.20 | ||
EQFN | Equitable Financial Corp. | NE | 10.75 | 3,369 | 36.2 | 10.95 | 9.90 | 10.65 | 0.94 | 6.44 | -1.38 | 0.37 | 0.37 | 10.67 | 10.67 | 78.01 | ||
ESSA | ESSA Bancorp, Inc. | PA | 16.17 | 10,327 | 167.0 | 16.91 | 14.01 | 16.40 | -1.40 | 3.26 | 3.19 | 0.35 | NA | 15.43 | 14.09 | 176.46 | ||
FCAP | First Capital, Inc. | IN | 37.38 | 3,337 | 124.7 | 38.00 | 29.81 | 37.75 | -0.98 | 16.81 | 1.74 | 2.23 | 2.24 | NA | NA | 227.44 | ||
FBNK | First Connecticut Bancorp, Inc. | CT | 25.55 | 15,953 | 407.6 | 28.50 | 22.65 | 25.85 | -1.16 | 12.56 | -2.29 | 1.02 | 1.01 | 17.08 | 17.08 | 191.21 | ||
FDEF | First Defiance Financial Corp. | OH | 55.06 | 10,157 | 559.2 | 56.91 | 46.71 | 55.77 | -1.27 | 13.39 | 5.95 | 3.22 | 3.39 | 36.76 | 26.49 | 294.73 | ||
FNWB | First Northwest Bancorp | WA | 16.96 | 11,840 | 200.8 | 18.35 | 14.90 | 16.94 | 0.12 | 12.69 | 4.05 | 0.46 | 0.40 | 15.02 | 15.02 | 102.68 | ||
FBC | Flagstar Bancorp, Inc. | MI | 37.19 | 57,321 | 2,131.8 | 40.06 | 25.37 | 37.72 | -1.41 | 45.33 | -0.61 | 1.09 | NA | 24.41 | 24.04 | 295.04 | ||
FSBW | FS Bancorp, Inc. | WA | 57.49 | 3,540 | 203.5 | 59.81 | 35.80 | 56.88 | 1.07 | 59.38 | 5.35 | 4.28 | 4.07 | 33.15 | 32.17 | 277.37 | ||
FSBC | FSB Bancorp, Inc. | NY | 17.06 | 1,832 | 31.2 | 18.23 | 14.15 | 17.65 | -3.34 | 20.14 | 0.35 | 0.15 | NA | NA | NA | 171.79 | ||
HIFS | Hingham Institution for Savings | MA | 207.71 | 2,133 | 443.0 | 242.00 | 148.02 | 226.05 | -8.11 | 10.48 | 0.34 | 11.81 | 11.79 | 87.29 | 87.29 | 1071.20 | ||
HMNF | HMN Financial, Inc. | MN | 19.25 | 4,498 | 86.6 | 19.45 | 16.60 | 18.80 | 2.39 | 4.62 | 0.79 | 0.90 | NA | 17.97 | 17.71 | 160.68 | ||
HFBL | Home Federal Bancorp, Inc. of Louisiana | LA | 29.19 | 1,805 | 52.7 | 29.89 | 23.10 | 28.00 | 4.25 | 5.57 | 4.25 | 1.69 | 1.66 | 24.04 | 24.04 | 228.12 | ||
HVBC | HV Bancorp, Inc. | PA | 15.00 | 2,182 | 32.7 | 18.50 | 13.74 | 15.25 | -1.63 | 6.77 | -1.37 | NA | NA | 14.51 | 14.51 | 99.88 | ||
IROQ | IF Bancorp, Inc. | IL | 20.20 | 3,940 | 79.6 | 20.75 | 19.10 | 20.30 | -0.48 | 2.05 | 2.74 | 0.46 | NA | 21.18 | 21.18 | 155.19 | ||
ISBC | Investors Bancorp, Inc. | NJ | 13.81 | 293,810 | 4,057.5 | 15.11 | 12.48 | 13.70 | 0.80 | -2.61 | -0.50 | 0.43 | 0.43 | 10.21 | NA | 85.53 | ||
KRNY | Kearny Financial Corp. | NJ | 13.50 | 74,703 | 1,008.5 | 15.80 | 13.30 | 13.65 | -1.10 | -9.40 | -6.57 | 0.19 | 0.20 | 12.44 | NA | 64.84 | ||
MLVF | Malvern Bancorp, Inc. | PA | 22.45 | 6,573 | 147.6 | 28.20 | 20.05 | 23.95 | -6.26 | 10.32 | -14.31 | 0.81 | 0.76 | 15.70 | 15.70 | 160.94 | ||
MELR | Melrose Bancorp, Inc. | MA | 19.88 | 2,601 | 51.7 | 20.00 | 16.40 | 19.70 | 0.89 | 18.09 | -0.63 | 0.91 | 0.46 | 17.23 | 17.23 | 114.85 | ||
EBSB | Meridian Bancorp, Inc. | MA | 20.30 | 49,323 | 1,001.3 | 21.85 | 15.85 | 20.85 | -2.64 | 8.85 | -1.46 | 0.82 | 0.71 | 11.96 | 11.54 | 107.44 | ||
CASH | Meta Financial Group, Inc. | SD | 109.50 | 9,665 | 1,058.3 | 117.98 | 60.70 | 105.40 | 3.89 | 20.46 | 18.19 | 5.13 | 6.84 | 45.29 | 29.85 | 560.58 | ||
MSBF | MSB Financial Corp. | NJ | 17.89 | 5,578 | 99.8 | 18.70 | 14.50 | 17.50 | 2.20 | 23.35 | 0.20 | 0.49 | 0.49 | 12.66 | 12.66 | 100.94 | ||
NYCB | New York Community Bancorp, Inc. | NY | 13.92 | 488,490 | 6,799.8 | 15.59 | 11.67 | 14.00 | -0.57 | -6.76 | 6.91 | 0.90 | NA | 12.88 | 7.89 | 100.56 | ||
NFBK | Northfield Bancorp, Inc. | NJ | 16.88 | 48,880 | 825.1 | 19.25 | 15.36 | 17.07 | -1.11 | -5.43 | -1.17 | 0.53 | 0.51 | 13.09 | 12.28 | 81.66 | ||
NWBI | Northwest Bancshares, Inc. | PA | 16.90 | 102,688 | 1,735.4 | 18.63 | 14.95 | 17.07 | -1.00 | 0.90 | 1.02 | 0.92 | 0.87 | 11.76 | 8.52 | 91.19 | ||
OCFC | OceanFirst Financial Corp. | NJ | 26.43 | 46,245 | 1,222.3 | 30.65 | 24.02 | 26.85 | -1.56 | -7.68 | 0.69 | 1.28 | NA | 18.47 | 13.58 | 117.11 | ||
ORIT | Oritani Financial Corp. | NJ | 16.85 | 44,152 | 744.0 | 17.75 | 15.30 | 16.15 | 4.33 | -0.59 | 2.74 | 0.96 | 0.85 | NA | NA | 93.37 | ||
OTTW | Ottawa Bancorp, Inc. | IL | 14.11 | 3,469 | 49.0 | 14.99 | 12.55 | 14.25 | -0.98 | 11.28 | -2.28 | 0.44 | 0.45 | 15.25 | 14.98 | 70.83 | ||
PBBI | PB Bancorp, Inc. | CT | 10.51 | 7,248 | 76.1 | 11.10 | 9.95 | 10.55 | -0.43 | 5.05 | -2.28 | 0.34 | 0.29 | 10.87 | 9.98 | 73.17 | ||
PCSB | PCSB Financial Corporation | NY | 20.19 | 18,165 | 366.8 | 20.47 | 15.76 | 19.98 | 1.05 | NA | 5.98 | NA | NA | 15.55 | 15.18 | 79.45 | ||
PBSK | Poage Bankshares, Inc. | KY | 20.00 | 3,522 | 70.4 | 21.00 | 17.20 | 19.39 | 3.15 | 0.00 | -4.76 | 0.30 | 0.38 | 18.75 | 18.17 | 130.66 | ||
PROV | Provident Financial Holdings, Inc. | CA | 18.30 | 7,475 | 136.8 | 20.35 | 17.62 | 18.43 | -0.71 | 0.11 | -0.54 | 0.13 | NA | 16.15 | 16.15 | 155.47 | ||
PFS | Provident Financial Services, Inc. | NJ | 26.39 | 64,317 | 1,697.3 | 28.76 | 23.19 | 26.44 | -0.19 | 1.27 | -2.15 | 1.45 | 1.45 | 19.52 | NA | 153.07 | ||
PBIP | Prudential Bancorp, Inc. | PA | 17.34 | 8,982 | 155.7 | 18.96 | 15.81 | 17.51 | -0.97 | -0.23 | -1.48 | 0.22 | NA | 14.85 | 14.10 | 103.96 | ||
RNDB | Randolph Bancorp, Inc. | MA | 15.97 | 5,869 | 93.7 | 16.49 | 13.36 | 15.77 | 1.29 | 7.14 | 4.04 | -0.20 | -0.07 | 14.18 | NA | 86.14 | ||
RVSB | Riverview Bancorp, Inc. | WA | 9.38 | 22,534 | 211.4 | 9.67 | 6.46 | 9.25 | 1.41 | 21.98 | 8.19 | 0.42 | NA | 5.18 | 3.93 | 50.07 | ||
SVBI | Severn Bancorp, Inc. | MD | 7.80 | 12,245 | 95.5 | 8.10 | 6.70 | 8.00 | -2.50 | 6.85 | 7.51 | 0.21 | NA | NA | NA | 65.72 | ||
SIFI | SI Financial Group, Inc. | CT | 14.35 | 11,870 | 170.3 | 16.45 | 13.50 | 14.85 | -3.37 | -3.04 | -2.38 | 1.12 | 0.82 | 13.98 | 12.59 | 133.54 | ||
SBT | Sterling Bancorp, Inc. | MI | 12.33 | 52,963 | 653.0 | 14.01 | 12.00 | 13.31 | -7.36 | NA | -2.91 | 0.82 | 0.82 | 5.16 | NA | 55.92 | ||
TBNK | Territorial Bancorp Inc. | HI | 30.51 | 9,915 | 302.5 | 33.97 | 28.12 | 31.01 | -1.61 | -3.36 | -1.17 | 1.57 | 1.54 | 23.69 | 23.69 | 202.10 | ||
TSBK | Timberland Bancorp, Inc. | WA | 27.84 | 7,367 | 205.1 | 32.10 | 20.51 | 27.53 | 1.13 | 31.14 | 4.86 | 1.96 | 1.96 | 15.49 | 14.72 | 134.91 | ||
TBK | Triumph Bancorp, Inc. | TX | 38.35 | 20,821 | 798.5 | 39.83 | 20.50 | 38.50 | -0.39 | 41.25 | 21.75 | 1.81 | 1.52 | 18.35 | 15.29 | 168.05 | ||
TRST | TrustCo Bank Corp NY | NY | 8.65 | 96,289 | 832.9 | 9.70 | 7.25 | 8.80 | -1.70 | 5.49 | -5.98 | 0.45 | 0.45 | 4.76 | 4.75 | 50.97 | ||
UCBA | United Community Bancorp | IN | 20.65 | 4,201 | 86.7 | 23.25 | 16.83 | 20.75 | -0.51 | 21.80 | 0.46 | 0.80 | NA | 17.13 | 16.50 | 130.02 | ||
UBNK | United Financial Bancorp, Inc. | CT | 16.80 | 50,851 | 854.3 | 19.35 | 15.75 | 16.89 | -0.53 | -3.39 | -4.76 | 1.07 | 1.12 | 13.58 | 11.23 | 139.90 | ||
WSBF | Waterstone Financial, Inc. | WI | 17.20 | 21,790 | 374.8 | 20.40 | 16.90 | 17.10 | 0.58 | -4.97 | 0.88 | 0.93 | 0.93 | 13.97 | 13.95 | 82.90 | ||
WCFB | WCF Bancorp, Inc. | IA | 10.22 | 2,562 | 26.2 | 11.62 | 9.06 | 10.23 | -0.10 | 1.69 | 7.58 | 0.02 | 0.01 | 11.31 | NA | 46.61 | ||
WEBK | Wellesley Bancorp, Inc. | MA | 29.20 | 2,499 | 73.0 | 29.95 | 23.70 | 29.25 | -0.17 | 7.35 | -1.68 | 1.30 | 1.30 | 23.66 | 23.66 | 322.28 | ||
WNEB | Western New England Bancorp, Inc. | MA | 10.70 | 30,634 | 327.8 | 11.25 | 9.23 | 10.95 | -2.28 | 16.94 | -1.83 | 0.41 | 0.43 | 8.11 | 7.57 | 68.00 | ||
WSFS | WSFS Financial Corporation | DE | 51.00 | 31,418 | 1,602.3 | 53.00 | 42.45 | 51.70 | -1.35 | 16.17 | 6.58 | 1.84 | 1.86 | 23.35 | NA | 222.71 | ||
WVFC | WVS Financial Corp. | PA | 17.00 | 2,008 | 34.1 | 18.05 | 14.40 | 17.06 | -0.35 | 17.23 | 9.77 | 0.95 | NA | 16.86 | 16.86 | 177.07 | ||
MHCs | ||||||||||||||||||
CFBI | Community First Bancshares, Inc. (MHC) | GA | 11.20 | 7,538 | 84.4 | 15.00 | 11.20 | 12.07 | -7.21 | NA | -2.86 | 0.08 | 0.08 | 10.19 | 10.19 | 36.85 | ||
FFBW | FFBW, Inc. (MHC) | WI | 11.15 | 6,613 | 73.7 | 12.50 | 11.00 | 11.03 | 1.09 | NA | 1.18 | NA | NA | NA | NA | 40.88 | ||
GCBC | Greene County Bancorp, Inc. (MHC) | NY | 35.75 | 8,510 | 304.2 | 36.95 | 21.53 | 36.58 | -2.26 | 57.84 | 9.66 | 1.52 | NA | 10.53 | 10.53 | 124.66 | ||
HONE | HarborOne Bancorp, Inc. (MHC) | MA | 18.86 | 32,662 | 616.0 | 22.29 | 15.92 | 19.11 | -1.31 | 2.06 | -1.57 | 0.33 | 0.36 | 10.52 | 10.11 | 82.20 | ||
KFFB | Kentucky First Federal Bancorp (MHC) | KY | 8.97 | 8,445 | 75.8 | 10.15 | 8.30 | 8.95 | 0.28 | -5.53 | 0.28 | 0.10 | 0.10 | 7.95 | 6.23 | 36.06 | ||
LSBK | Lake Shore Bancorp, Inc. (MHC) | NY | 17.00 | 6,098 | 103.7 | 17.80 | 15.17 | 17.25 | -1.44 | 6.99 | -0.87 | 0.55 | NA | NA | NA | 85.11 |
RP® Financial, LC.
Exhibit I-A
Weekly Thrift Market Line - Part One
Prices As of February 2, 2018
Market Capitalization | Price Change Data | Current Per Share Financials | ||||||||||||||||
Price/ | Shares | Market | 52 Week (1) | % Change From | LTM | LTM Core | BV/ | TBV/ | Assets/ | |||||||||
Share(1) | Outstanding | Capitalization | High | Low | Last Wk | Last Wk | 52 Wks (2) | MRY (2) | EPS (3) | EPS (3) | Share | Share (4) | Share | |||||
($) | (000) | ($Mil) | ($) | ($) | ($) | (%) | (%) | (%) | ($) | ($) | ($) | ($) | ($) | |||||
MHCs | ||||||||||||||||||
MGYR | Magyar Bancorp, Inc. (MHC) | NJ | 12.76 | 5,821 | 74.3 | 14.95 | 12.01 | 12.80 | -0.28 | -1.05 | -1.82 | 0.24 | 0.23 | 8.56 | 8.56 | 102.52 | ||
OFED | Oconee Federal Financial Corp. (MHC) | SC | 28.40 | 5,756 | 163.5 | 30.49 | 22.00 | 28.01 | 1.39 | 24.84 | -1.05 | 0.88 | 0.89 | 14.99 | 14.45 | 82.47 | ||
PDLB | PDL Community Bancorp (MHC) | NY | 15.02 | 18,463 | 277.3 | 16.95 | 14.50 | 15.14 | -0.79 | NA | -1.05 | NA | NA | 9.13 | 9.13 | 48.33 | ||
PVBC | Provident Bancorp, Inc. (MHC) | MA | 24.25 | 9,628 | 233.5 | 27.37 | 18.35 | 24.00 | 1.04 | 23.41 | -8.32 | 0.86 | 0.44 | 12.02 | 12.02 | 93.71 | ||
TFSL | TFS Financial Corporation (MHC) | OH | 15.13 | 275,694 | 4,171.3 | 17.82 | 14.51 | 14.83 | 2.02 | -11.10 | 1.27 | 0.31 | NA | 6.05 | 6.02 | 50.37 | ||
Under Acquisition | ||||||||||||||||||
ANCB | Anchor Bancorp | WA | 24.98 | 2,495 | 62.3 | 26.95 | 23.70 | 24.95 | 0.11 | -6.97 | 0.72 | 0.41 | 0.53 | 26.19 | 26.19 | 189.50 | ||
BYBK | Bay Bancorp, Inc. | MD | 12.75 | 10,718 | 136.7 | 12.80 | 6.75 | 12.60 | 1.19 | 73.47 | 4.29 | 0.45 | 0.53 | 6.74 | 6.53 | 61.48 | ||
CSBK | Clifton Bancorp Inc. | NJ | 16.11 | 22,065 | 355.5 | 17.94 | 15.20 | 16.17 | -0.37 | -0.25 | -5.79 | 0.22 | 0.23 | 12.87 | 12.87 | 75.66 | ||
JXSB | Jacksonville Bancorp, Inc. | IL | 33.35 | 1,813 | 60.5 | 37.99 | 29.00 | 33.29 | 0.18 | 7.58 | 4.15 | 1.35 | 1.23 | 26.89 | 25.39 | 179.27 |
(1) Average of High/Low or Bid/Ask price per share.
(2) Or since offering price if converted of first listed in the past 52 weeks. Percent change figures are actual year-to-date and are not annualized.
(3) EPS (earnings per share) is based on actual trailing 12 month data and is not shown on a pro forma basis.
(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios based on trailing 12 month common earnings and average common equity and total assets balances.
(6) Annualized based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing 12 month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities or unusual operating characteristics.
(9) For MHC institutions, market value reflects share price multiplied by public (non-MHC) shares.
Source: S&P Global Market Intelligence and RP® Financial, LC. calculations. The information provided in this table has been obtained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such information.
Copyright (c) 2018 by RP® Financial, LC.
RP® Financial, LC.
Exhibit I-B
Weekly Thrift Market Line - Part Two
Prices As of February 2, 2018
Key Financial Ratios | Asset Quality Ratios | Pricing Ratios | Dividend Data (6) | |||||||||||||||||||
Equity/ | Tang Equity/ | Reported Earnings | Core Earnings | NPAs/ | Rsvs/ | Price/ | Price/ | Price/ | Price/ | Price/ | Div/ | Dividend | Payout | |||||||||
Assets(1) | Assets(1) | ROA(5) | ROE(5) | ROA(5) | ROE(5) | Assets | NPLs | Earnings | Book | Assets | Tang Book | Core Earnings | Share | Yield | Ratio (7) | |||||||
(%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (x) | (%) | (%) | (%) | (x) | ($) | (%) | (%) | |||||||
Companies | ||||||||||||||||||||||
BCTF | Bancorp 34, Inc. | NM | 14.30 | 14.24 | 1.54 | 11.10 | 1.56 | 11.19 | 1.60 | 52.85 | 9.74 | 99.63 | 14.24 | 100.08 | 9.66 | 0.59 | 0.00 | NM | ||||
BNCL | Beneficial Bancorp, Inc. | PA | 17.85 | 15.34 | 0.41 | 2.33 | 0.44 | 2.46 | NA | NA | 48.59 | 113.41 | NA | 135.94 | 46.01 | 0.24 | 1.54 | 56.25 | ||||
BHBK | Blue Hills Bancorp, Inc. | MA | 14.91 | 14.60 | 0.65 | 4.14 | 0.54 | 3.40 | NA | NA | 28.66 | 129.48 | 19.30 | 132.72 | 34.84 | 0.60 | 3.13 | 82.09 | ||||
BOFI | BofI Holding, Inc. | CA | 9.80 | 9.80 | 1.63 | 16.47 | 1.62 | 16.42 | 0.44 | 152.08 | 17.25 | 264.14 | 25.75 | 264.14 | 17.32 | NA | NA | NM | ||||
BYFC | Broadway Financial Corporation | CA | 10.92 | 10.92 | 1.02 | 9.56 | 0.90 | 8.43 | 2.43 | 43.17 | 14.71 | 142.63 | 15.57 | 142.63 | 16.95 | 0.04 | 0.00 | NM | ||||
BLMT | BSB Bancorp, Inc. | MA | 7.02 | 7.02 | 0.69 | 9.38 | 0.68 | 9.34 | 0.24 | 258.40 | 17.62 | 165.73 | 11.64 | 165.73 | 17.69 | NA | NA | NM | ||||
CFFN | Capitol Federal Financial, Inc. | KS | 15.02 | 15.02 | 0.86 | 6.94 | 0.86 | 6.94 | 0.47 | 20.37 | 18.48 | 134.28 | 20.17 | 134.28 | 18.48 | 0.34 | 2.59 | 123.94 | ||||
CARV | Carver Bancorp, Inc. | NY | 7.00 | 7.00 | -0.65 | -9.01 | -0.66 | -9.10 | 1.90 | 40.52 | NM | NM | 1.49 | NM | NM | 0.00 | 0.00 | NM | ||||
CHFN | Charter Financial Corporation | GA | 13.27 | 10.96 | 0.90 | 6.49 | 0.98 | 7.03 | 0.44 | 186.23 | 21.32 | 134.55 | 17.86 | 167.35 | 19.67 | 0.30 | 1.55 | 23.08 | ||||
CWAY | Coastway Bancorp, Inc. | RI | 10.14 | 10.14 | 0.48 | 4.47 | 0.48 | 4.47 | 2.23 | 25.81 | 28.67 | 134.96 | 13.68 | 134.96 | 28.67 | NA | NA | NM | ||||
DCOM | Dime Community Bancshares, Inc. | NY | 9.35 | 8.55 | 0.84 | 8.94 | 0.72 | 7.67 | NA | 243.32 | 13.88 | 119.72 | 11.19 | 131.98 | 16.17 | 0.56 | 2.92 | 30.43 | ||||
EFBI | Eagle Financial Bancorp, Inc. | OH | 20.87 | 20.87 | NA | 2.21 | NA | 2.21 | 0.67 | 133.98 | NA | 94.90 | 19.80 | 94.90 | NA | NA | NA | NA | ||||
ESBK | Elmira Savings Bank | NY | 10.22 | 8.18 | 0.86 | 7.78 | 0.86 | 7.90 | NA | NA | 16.09 | 120.65 | 12.32 | 154.20 | 16.06 | 0.92 | 4.47 | 71.88 | ||||
EQFN | Equitable Financial Corp. | NE | 13.68 | 13.68 | 0.53 | 3.61 | 0.53 | 3.57 | NA | NA | 29.05 | 100.75 | 13.78 | 100.75 | 29.33 | NA | NA | NM | ||||
ESSA | ESSA Bancorp, Inc. | PA | 9.85 | 9.08 | 0.21 | 2.08 | NA | NA | NA | NA | 46.20 | 104.82 | 10.32 | 114.73 | NA | 0.36 | 2.23 | 102.86 | ||||
FCAP | First Capital, Inc. | IN | NA | NA | 0.98 | NA | 0.99 | 9.47 | 0.97 | 107.07 | 16.76 | 153.48 | NA | 169.37 | 16.66 | 0.88 | 2.35 | 28.70 | ||||
FBNK | First Connecticut Bancorp, Inc. | CT | 8.93 | 8.93 | 0.55 | 5.96 | 0.54 | 5.90 | NA | NA | 25.05 | 149.60 | 13.36 | 149.60 | 25.32 | 0.60 | 2.35 | 50.98 | ||||
FDEF | First Defiance Financial Corp. | OH | 12.47 | 9.31 | 1.13 | 9.19 | 1.19 | 9.68 | 1.54 | 59.98 | 17.10 | 149.80 | 18.68 | 207.87 | 16.22 | 1.00 | 1.82 | 23.29 | ||||
FNWB | First Northwest Bancorp | WA | 14.56 | 14.56 | 0.44 | 2.78 | 0.39 | 2.41 | NA | NA | 36.87 | 112.90 | 16.44 | 112.90 | 42.38 | NA | NA | NM | ||||
FBC | Flagstar Bancorp, Inc. | MI | 8.27 | 8.16 | 0.40 | 4.40 | NA | NA | 0.53 | 172.84 | 34.12 | 152.38 | 12.61 | 154.70 | NA | 0.00 | 0.00 | NM | ||||
FSBW | FS Bancorp, Inc. | WA | 12.43 | 12.10 | 1.52 | 14.72 | 1.45 | 14.01 | NA | NA | 13.43 | 173.42 | 21.55 | 178.73 | 14.11 | 0.44 | 0.77 | 10.28 | ||||
FSBC | FSB Bancorp, Inc. | NY | 9.92 | 9.92 | 0.10 | 0.91 | NA | NA | NA | NA | NM | 102.03 | NA | 102.03 | NA | NA | NA | NM | ||||
HIFS | Hingham Institution for Savings | MA | 8.15 | 8.15 | 1.21 | 14.73 | 1.21 | 14.70 | NA | NA | 17.59 | 237.97 | 19.39 | 237.97 | 17.62 | 1.36 | 0.65 | 14.06 | ||||
HMNF | HMN Financial, Inc. | MN | 11.18 | 11.04 | 0.63 | 5.52 | NA | NA | NA | NA | 21.39 | 107.13 | 11.98 | 108.68 | NA | 0.00 | 0.00 | NM | ||||
HFBL | Home Federal Bancorp, Inc. of Louisiana | LA | 11.15 | 11.15 | 0.78 | 6.99 | 0.76 | 6.86 | NA | NA | 17.27 | 121.45 | 13.55 | 121.45 | 17.61 | 0.48 | 1.64 | 26.63 | ||||
HVBC | HV Bancorp, Inc. | PA | 14.53 | 14.53 | 0.26 | 2.15 | 0.25 | 2.04 | 0.78 | 38.87 | NA | 103.38 | 15.02 | 103.38 | NA | NA | NA | NA | ||||
IROQ | IF Bancorp, Inc. | IL | 13.65 | 13.65 | 0.28 | 2.02 | NA | NA | NA | NA | 43.91 | 95.35 | 13.02 | 95.35 | NA | 0.20 | 0.99 | 39.13 | ||||
ISBC | Investors Bancorp, Inc. | NJ | 12.44 | NA | 0.52 | 4.00 | 0.53 | 4.03 | 0.61 | 157.44 | 32.12 | 135.26 | 16.82 | 137.73 | 31.92 | 0.36 | 2.61 | 58.14 | ||||
KRNY | Kearny Financial Corp. | NJ | 20.42 | NA | 0.31 | 1.42 | 0.33 | 1.49 | NA | NA | NM | 108.53 | 22.16 | 121.59 | 66.45 | 0.12 | 0.89 | 126.32 | ||||
MLVF | Malvern Bancorp, Inc. | PA | 9.76 | 9.76 | 0.53 | 5.21 | 0.50 | 4.91 | 0.42 | 189.00 | 27.72 | 142.99 | 13.95 | 142.99 | 29.43 | 0.11 | 0.00 | NM | ||||
MELR | Melrose Bancorp, Inc. | MA | 15.01 | 15.01 | 0.77 | 4.87 | 0.39 | 2.47 | NA | NA | 21.84 | 115.32 | 17.30 | 115.32 | 43.04 | NA | NA | NM | ||||
EBSB | Meridian Bancorp, Inc. | MA | 12.20 | 11.82 | 0.89 | 6.82 | 0.77 | 5.90 | NA | NA | 24.76 | 169.71 | 20.70 | 175.94 | 28.61 | 0.20 | 0.99 | 20.73 | ||||
CASH | Meta Financial Group, Inc. | SD | 8.08 | 5.47 | 1.17 | 11.46 | 1.55 | 15.26 | NA | NA | 21.35 | 241.78 | 19.53 | 366.88 | 16.00 | 0.52 | 0.47 | 10.14 | ||||
MSBF | MSB Financial Corp. | NJ | 12.97 | 12.97 | 0.54 | 3.67 | 0.54 | 3.67 | NA | NA | 36.50 | 141.29 | 18.32 | 141.29 | 36.50 | 0.00 | 0.00 | 86.73 | ||||
NYCB | New York Community Bancorp, Inc. | NY | 13.83 | 9.34 | 0.96 | 7.06 | NA | NA | NA | NA | 15.47 | 108.06 | 13.99 | 176.32 | NA | 0.68 | 4.89 | 56.67 | ||||
NFBK | Northfield Bancorp, Inc. | NJ | 16.01 | 15.16 | 0.63 | 3.88 | 0.61 | 3.75 | 0.61 | 111.27 | 31.85 | 128.95 | 20.64 | 137.51 | 32.97 | 0.40 | 2.37 | 49.06 | ||||
NWBI | Northwest Bancshares, Inc. | PA | 12.90 | 9.68 | 0.99 | 7.95 | 0.94 | 7.50 | 0.96 | 67.39 | 18.37 | 143.69 | 18.53 | 198.42 | 19.46 | 0.68 | 4.02 | 70.65 | ||||
OCFC | OceanFirst Financial Corp. | NJ | 11.11 | 8.42 | 0.80 | 7.20 | NA | NA | 1.15 | 29.02 | 20.65 | 143.10 | 15.90 | 194.63 | NA | 0.60 | 2.27 | 35.16 | ||||
ORIT | Oritani Financial Corp. | NJ | 13.28 | 13.28 | 1.05 | 7.75 | 0.94 | 6.95 | NA | NA | 17.55 | 137.37 | NA | 137.37 | 19.88 | 0.70 | 4.15 | 101.56 | ||||
OTTW | Ottawa Bancorp, Inc. | IL | 21.53 | 21.23 | 0.61 | 2.98 | 0.62 | 3.02 | NA | NA | 32.04 | 92.52 | 19.92 | 94.22 | 31.59 | 0.16 | 1.13 | 36.34 | ||||
PBBI | PB Bancorp, Inc. | CT | 15.93 | 14.82 | 0.48 | 2.91 | 0.40 | 2.43 | NA | NA | 30.90 | 96.67 | 15.40 | 105.28 | 36.85 | 0.20 | 1.90 | 52.94 | ||||
PCSB | PCSB Financial Corporation | NY | 19.57 | 19.20 | 0.13 | 0.85 | 0.32 | 2.05 | NA | NA | NA | 129.87 | 25.41 | 132.97 | NA | NA | NA | NA | ||||
PBSK | Poage Bankshares, Inc. | KY | 14.35 | 13.97 | 0.23 | 1.54 | 0.28 | 1.87 | 1.86 | 47.48 | 66.67 | 106.67 | 15.31 | 110.05 | 52.74 | 0.24 | 1.20 | 80.00 | ||||
PROV | Provident Financial Holdings, Inc. | CA | 10.39 | 10.39 | 0.09 | 0.86 | NA | NA | NA | NA | NM | 113.33 | 11.77 | 113.33 | NA | 0.56 | 3.06 | 315.38 | ||||
PFS | Provident Financial Services, Inc. | NJ | 13.19 | NA | 0.99 | 7.28 | 0.98 | 7.28 | NA | NA | 18.20 | 135.21 | 17.83 | 199.32 | 18.21 | 0.80 | 3.03 | 51.03 | ||||
PBIP | Prudential Bancorp, Inc. | PA | 14.29 | 13.66 | 0.24 | 1.56 | NA | NA | NA | NA | NM | 116.74 | 16.68 | 122.98 | NA | 0.20 | 1.15 | 129.46 | ||||
RNDB | Randolph Bancorp, Inc. | MA | 16.47 | NA | -0.22 | -1.30 | -0.08 | -0.47 | 1.11 | 63.11 | NM | 112.59 | 18.54 | NA | NM | NA | NA | NM | ||||
RVSB | Riverview Bancorp, Inc. | WA | 10.35 | 8.05 | 0.83 | 8.05 | NA | NA | NA | NA | 22.33 | 181.11 | 18.75 | 238.85 | NA | 0.12 | 1.28 | 22.62 | ||||
SVBI | Severn Bancorp, Inc. | MD | 11.32 | NA | 0.35 | 3.17 | 0.35 | 3.16 | 2.46 | 41.47 | 37.14 | 107.16 | NA | 108.49 | NA | 0.00 | 0.00 | NM | ||||
SIFI | SI Financial Group, Inc. | CT | 10.79 | 9.82 | 0.85 | 7.95 | 0.62 | 5.83 | 0.96 | 90.40 | 12.81 | 102.64 | 11.07 | 114.00 | 17.52 | 0.20 | 1.39 | 13.39 | ||||
SBT | Sterling Bancorp, Inc. | MI | 9.23 | NA | 1.48 | 20.25 | 1.48 | 20.28 | NA | NA | 15.04 | 238.95 | 22.05 | 304.26 | 15.02 | NA | NA | NM | ||||
TBNK | Territorial Bancorp Inc. | HI | 11.72 | 11.72 | 0.77 | 6.35 | 0.76 | 6.24 | NA | NA | 19.43 | 128.81 | 15.10 | 128.81 | 19.80 | 0.80 | 2.62 | 76.43 | ||||
TSBK | Timberland Bancorp, Inc. | WA | 11.48 | 10.98 | 1.56 | 13.63 | 1.56 | 13.59 | 0.88 | 177.29 | 14.20 | 179.74 | 20.64 | 189.10 | 14.24 | 0.44 | 1.58 | 20.92 | ||||
TBK | Triumph Bancorp, Inc. | TX | 11.19 | 9.55 | 1.27 | 10.67 | 1.07 | 8.97 | NA | NA | 21.19 | 209.00 | 22.88 | 250.88 | 25.20 | NA | NA | NM | ||||
TRST | TrustCo Bank Corp NY | NY | 9.34 | 9.33 | 0.88 | 9.64 | 0.88 | 9.64 | NA | NA | 19.31 | 181.73 | 16.97 | 181.95 | 19.31 | 0.26 | 3.03 | 58.59 | ||||
UCBA | United Community Bancorp | IN | 13.17 | 12.75 | 0.61 | 4.63 | NA | NA | NA | NA | 25.81 | 120.53 | 15.88 | 125.15 | NA | 0.40 | 1.94 | 43.75 | ||||
UBNK | United Financial Bancorp, Inc. | CT | 9.75 | 8.20 | 0.80 | 8.09 | 0.84 | 8.45 | NA | NA | 15.70 | 123.71 | 12.06 | 149.55 | 15.02 | 0.48 | 2.86 | 44.86 | ||||
WSBF | Waterstone Financial, Inc. | WI | 22.81 | 22.79 | 1.43 | 6.32 | 1.44 | 6.34 | NA | NA | 18.49 | 123.13 | 28.09 | 123.31 | 18.44 | 0.48 | 2.79 | 105.38 | ||||
WCFB | WCF Bancorp, Inc. | IA | 24.26 | NA | 0.04 | 0.17 | 0.03 | 0.11 | NA | 117.81 | NM | 90.36 | 21.93 | NA | NM | 0.20 | 1.96 | 750.00 | ||||
WEBK | Wellesley Bancorp, Inc. | MA | 7.36 | 7.36 | 0.43 | 5.49 | 0.43 | 5.49 | NA | NA | 22.46 | 123.42 | 9.08 | 123.42 | 22.46 | 0.20 | 0.68 | 14.62 | ||||
WNEB | Western New England Bancorp, Inc. | MA | 11.87 | 11.17 | 0.59 | 4.94 | 0.62 | 5.16 | 0.94 | 56.05 | 26.10 | 131.92 | 15.66 | 141.38 | 24.98 | 0.16 | 1.50 | 31.71 | ||||
WSFS | WSFS Financial Corporation | DE | 10.49 | NA | 0.87 | 8.21 | 0.88 | 8.28 | 0.84 | 71.86 | 27.72 | 218.40 | 22.90 | 289.87 | 27.46 | 0.36 | 0.71 | 12.50 | ||||
WVFC | WVS Financial Corp. | PA | 9.52 | 9.52 | 0.50 | 5.20 | NA | NA | NA | NA | 17.89 | 100.83 | 9.60 | 100.83 | NA | 0.24 | 1.41 | 23.16 | ||||
MHCs | ||||||||||||||||||||||
CFBI | Community First Bancshares, Inc. (MHC) | GA | 27.64 | 27.64 | 0.52 | 2.32 | 0.52 | 2.32 | 3.13 | 52.77 | NM | 109.94 | 30.39 | 109.94 | 140.00 | NA | NA | NM | ||||
FFBW | FFBW, Inc. (MHC) | WI | 12.72 | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA | ||||
GCBC | Greene County Bancorp, Inc. (MHC) | NY | 8.44 | 8.44 | 1.30 | 15.36 | NA | NA | NA | NA | 23.52 | 339.51 | 28.67 | 339.51 | NA | 0.39 | 1.09 | 25.49 | ||||
HONE | HarborOne Bancorp, Inc. (MHC) | MA | 12.79 | 12.35 | 0.40 | 3.09 | 0.43 | 3.34 | NA | NA | 57.15 | 179.26 | 22.93 | 186.59 | 52.89 | NA | NA | NM | ||||
KFFB | Kentucky First Federal Bancorp (MHC) | KY | 22.04 | 18.14 | 0.30 | 1.36 | 0.29 | 1.30 | NA | NA | NM | 112.93 | 24.89 | 144.07 | 94.47 | 0.40 | 4.46 | 400.00 | ||||
LSBK | Lake Shore Bancorp, Inc. (MHC) | NY | 15.10 | 15.10 | 0.67 | 4.35 | NA | NA | NA | NA | 30.91 | 132.63 | NA | 132.63 | NA | 0.32 | 1.88 | 58.18 |
RP® Financial, LC.
Exhibit I-B
Weekly Thrift Market Line - Part Two
Prices As of February 2, 2018
Key Financial Ratios | Asset Quality Ratios | Pricing Ratios | Dividend Data (6) | |||||||||||||||||||
Equity/ | Tang Equity/ | Reported Earnings | Core Earnings | NPAs/ | Rsvs/ | Price/ | Price/ | Price/ | Price/ | Price/ | Div/ | Dividend | Payout | |||||||||
Assets(1) | Assets(1) | ROA(5) | ROE(5) | ROA(5) | ROE(5) | Assets | NPLs | Earnings | Book | Assets | Tang Book | Core Earnings | Share | Yield | Ratio (7) | |||||||
(%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (x) | (%) | (%) | (%) | (x) | ($) | (%) | (%) | |||||||
MHCs | ||||||||||||||||||||||
MGYR | Magyar Bancorp, Inc. (MHC) | NJ | 8.35 | 8.35 | 0.24 | 2.89 | 0.23 | 2.75 | NA | NA | 53.18 | 149.06 | 12.45 | 149.06 | 56.17 | NA | NA | NM | ||||
OFED | Oconee Federal Financial Corp. (MHC) | SC | 18.17 | 17.63 | 1.07 | 6.19 | 1.08 | 6.29 | 0.93 | 29.03 | 32.27 | 189.49 | 34.44 | 196.59 | 31.78 | 0.40 | 1.41 | 34.09 | ||||
PDLB | PDL Community Bancorp (MHC) | NY | 18.89 | 18.89 | NA | NA | NA | NA | NA | NA | NA | 164.57 | 31.08 | 164.57 | NA | NA | NA | NA | ||||
PVBC | Provident Bancorp, Inc. (MHC) | MA | 12.83 | 12.83 | 0.91 | 6.87 | 0.47 | 3.53 | NA | NA | 28.20 | 201.67 | 25.88 | 201.67 | 54.81 | NA | NA | NM | ||||
TFSL | TFS Financial Corporation (MHC) | OH | 12.25 | 12.18 | 0.66 | 5.25 | NA | NA | 1.32 | 25.59 | 48.81 | 249.99 | 30.61 | 251.43 | NA | 0.68 | 4.49 | 190.32 | ||||
Under Acquisition | ||||||||||||||||||||||
ANCB | Anchor Bancorp | WA | 13.79 | 13.79 | 0.22 | 1.52 | 0.28 | 1.96 | NA | NA | 60.92 | 95.36 | 13.15 | 95.36 | 47.32 | NA | NA | NM | ||||
BYBK | Bay Bancorp, Inc. | MD | 10.91 | 10.60 | 0.77 | 7.25 | 0.90 | 8.50 | NA | NA | 28.33 | 189.17 | 20.63 | 195.26 | 24.16 | 0.00 | 0.00 | NM | ||||
CSBK | Clifton Bancorp Inc. | NJ | 17.03 | 17.03 | 0.30 | 1.57 | 0.31 | 1.61 | NA | NA | NM | 125.21 | 21.33 | 125.21 | 70.23 | 0.24 | 1.49 | 195.45 | ||||
JXSB | Jacksonville Bancorp, Inc. | IL | 15.02 | 14.30 | 0.75 | 5.06 | 0.69 | 4.61 | NA | NA | 24.70 | 124.02 | 18.62 | 131.36 | 27.08 | 0.40 | 1.20 | 29.63 |
(1) Average of High/Low or Bid/Ask price per share.
(2) Or since offering price if converted of first listed in the past 52 weeks. Percent change figures are actual year-to-date and are not annualized.
(3) EPS (earnings per share) is based on actual trailing 12 month data and is not shown on a pro forma basis.
(4) Exludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios based on trailing 12 month common earnings and average common equity and total assets balances.
(6) Annualized based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing 12 month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities or unusual operating characteristics.
(9) For MHC institutions, market value reflects share price multiplied by public (non-MHC) shares.
Source: S&P Global Market Intelligence and RP® Financial, LC. calculations. The information provided in this table has been obtained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such information.
Copyright (c) 2018 by RP® Financial, LC.
EXHIBIT 2
Pro Forma Analysis Sheet – Fully Converted Basis
Exhibit 2
PRO FORMA ANALYSIS SHEET - FULLY CONVERTED BASIS
Columbia Financial, Inc.
Prices as of February 2, 2018
Peer Group | New Jersey Companies | All Publicly-Traded | |||||||||||
Price Multiple | Symbol | Subject (1) | Average | Median | Average | Median | Average | Median | |||||
Price-earnings ratio (x) | P/E | 33.32 | x | 24.15x | 20.65x | 26.14x | 26.25x | 24.25x | 21.32x | ||||
Price-core earnings ratio (x) | P/Core | 25.55 | x | 22.15x | 20.98x | 25.74x | 25.90x | 21.08x | 18.48x | ||||
Price-book ratio (%) | = | P/B | 72.46% | 137.58% | 133.16% | 132.81% | 135.26% | 137.09% | 128.95% | ||||
Price-tangible book ratio (%) | = | P/TB | 72.83% | 151.61% | 143.53% | 152.78% | 137.73% | 153.51% | 137.37% | ||||
Price-assets ratio (%) | = | P/A | 13.47% | 16.62% | 16.44% | 18.62% | 18.08% | 16.62% | 16.56% |
Valuation Parameters | ||||||||||
Pre-Conversion Earnings (Y) | $24,757,000 | ESOP Stock Purchases (E) | 8.00% | (6) | ||||||
Pre-Conversion Earnings (CY) | $32,762,000 | Cost of ESOP Borrowings (S) | 0.00% | (5) | ||||||
Pre-Conversion Book Value (B)[2] | $471,658,000 | ESOP Amortization (T) | 20.00 | years | ||||||
Pre-Conv. Tang. Book Val. (TB)[2] | $465,942,000 | RRP Amount (M) | 4.00% | |||||||
Pre-Conversion Assets (A)[2] | $5,766,500,000 | RRP Vesting (N) | 5.00 | years (6) | ||||||
Reinvestment Rate (3)(R) | 2.70 | % | Foundation (F) | 3.09% | ||||||
Est. Conversion Expenses (4)(X) | 2.00 | % | Tax Benefit (Z) | 9,463,918 | ||||||
Tax Rate (TAX) | 36.00 | % | Percentage Sold (PCT) | 100.00% | ||||||
Shares Tax | $0 | Option (O1) | 10.00% | (7) | ||||||
Estimated Option Value (O2) | 27.00% | (7) | ||||||||
Option vesting (O3) | 5.00 | (7) | ||||||||
Option pct taxable (O4) | 25.00% | (7) |
Calculation of Pro Forma Value After Conversion
1. V= | P/E * (Y) | V= | $876,288,660 | |||||||
1 - P/E * PCT * ((1-X-E-M-F)*R*(1-TAX) - (1-TAX)*E/T - (1-TAX)*M/N) - (1-(TAX*O4))*(O1*O2)/O3) | ||||||||||
2. V= | P/Core * (Y) | V= | $876,288,660 | |||||||
1 - P/core * PCT * ((1-X-E-M-F)*R*(1-TAX) - (1-TAX)*E/T - (1-TAX)*M/N) - (1-(TAX*O4))*(O1*O2)/O3) | ||||||||||
3. V= | P/B * (B+Z) | V= | $876,288,660 | |||||||
1 - P/B * PCT * (1-X-E-M-F) | ||||||||||
4. V= | P/TB * (TB+Z) | V= | $876,288,660 | |||||||
1 - P/TB * PCT * (1-X-E-M-F) | ||||||||||
5. V= | P/A * (A+Z) | V= | $876,288,660 | |||||||
1 - P/A * PCT * (1-X-E-M-F) |
Shares | Aggregate | |||||||||||||||||||||||
Shares Issued | Price Per | Gross Offering | Issued To | Total Shares | Market Value | |||||||||||||||||||
Conclusion | To the Public | Share | Proceeds | Foundation | Issued | of Shares Issued | ||||||||||||||||||
Supermaximum | 112,412,500 | 10.00 | $ | 1,124,125,000 | 3,476,675 | 115,889,175 | $ | 1,158,891,750 | ||||||||||||||||
Maximum | 97,750,000 | 10.00 | 977,500,000 | 3,023,196 | 100,773,196 | 1,007,731,960 | ||||||||||||||||||
Midpoint | 85,000,000 | 10.00 | 850,000,000 | 2,628,866 | 87,628,866 | 876,288,660 | ||||||||||||||||||
Minimum | 72,250,000 | 10.00 | 722,500,000 | 2,234,536 | 74,484,536 | 744,845,360 |
(1) Pricing ratios shown reflect the midpoint value.
(2) Adjusted for $412,000 net write-off of deferred issuance cost related to the redemption of trust preferred debt.
(3) Net return reflects a reinvestment rate of 2.70 percent and a tax rate of 36.0 percent.
(4) Offering expenses shown at estimated midpoint value.
(5) No cost is applicable since holding company will fund the ESOP loan.
(6) ESOP and MRP amortize over 20 years and 5 years, respectively; amortization expenses tax effected at 36.0 percent.
(7) 10 percent option plan with an estimated Black-Scholes valuation of 27.0 percent of the exercise price, including a 5 year vesting with 25 percent of the options (granted to directors) tax effected at 36.0 percent.
EXHIBIT 3
Pro Forma Effect of Conversion Proceeds – Fully Converted Basis
Exhibit 3
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Columbia Financial, Inc.
At the Minimum
1. | Pro Forma Market Capitalization | $744,845,360 |
Less: Foundation Shares | 22,345,360 | |
2. | Offering Proceeds | $722,500,000 |
Less: Estimated Offering Expenses | 14,450,000 | |
Net Conversion Proceeds | $708,050,000 |
3. | Estimated Additional Income from Conversion Proceeds | |
Net Conversion Proceeds | $708,050,000 | |
Less: Cash Contribution to Foundation | 0 | |
Less: Non-Cash Stock Purchases (1) | 89,381,443 | |
Net Proceeds Reinvested | $618,668,557 | |
Estimated net incremental rate of return | 1.73% | |
Reinvestment Income | $10,690,593 | |
Less: Shares Tax | 0 | |
Less: Estimated cost of ESOP borrowings (2) | 0 | |
Less: Amortization of ESOP borrowings (3) | 1,906,804 | |
Less: Amortization of Options (4) | 3,660,170 | |
Less: Recognition Plan Vesting (5) | 3,813,608 | |
Net Earnings Impact | $1,310,010 |
Net | |||||
Before | Earnings | After | |||
4. | Pro Forma Earnings | Conversion | Increase | Conversion | |
12 Months ended December 31, 2017 (reported) | $24,757,000 | $1,310,010 | $26,067,010 | ||
12 Months ended December 31, 2017 (core) | $32,762,000 | $1,310,010 | $34,072,010 |
Before | Net Cash | Tax Benefit | After | |||
5. | Pro Forma Net Worth | Conversion | Proceeds | Of Contribution | Conversion | |
December 31, 2017 | $471,658,000 | $618,668,557 | $8,044,330 | $1,098,370,886 | ||
December 31, 2017 (Tangible) | $465,942,000 | $618,668,557 | $8,044,330 | $1,092,654,886 | ||
Before | Net Cash | Tax Benefit | After | |||
6. | Pro Forma Assets | Conversion | Proceeds | Of Contribution | Conversion | |
December 31, 2017 | $5,766,500,000 | $618,668,557 | $8,044,330 | $6,393,212,886 |
(1) Includes ESOP and RRP stock purchases equal to 8.0 and 4.0 percent of total shares issued, respectively.
(2) ESOP stock purchases are internally financed by a loan from the holding company.
(3) ESOP borrowings are amortized over 20 years, amortization expense is tax-effected at a 36.0 percent rate.
(4) Option valuation based on Black-Scholes model, 5 year vesting, and assumes 25 percent is taxable.
(5) RRP is amortized over 5 years, and amortization expense is tax effected at 36.0 percent.
Exhibit 3
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Columbia Financial, Inc.
At the Midpoint
1. | Pro Forma Market Capitalization | $876,288,660 |
Less: Foundation Shares | 26,288,660 | |
2. | Offering Proceeds | $850,000,000 |
Less: Estimated Offering Expenses | 17,000,000 | |
Net Conversion Proceeds | $833,000,000 | |
3. | Estimated Additional Income from Conversion Proceeds | |
Net Conversion Proceeds | $833,000,000 | |
Less: Cash Contribution to Foundation | 0 | |
Less: Non-Cash Stock Purchases (1) | 105,154,639 | |
Net Proceeds Reinvested | $727,845,361 | |
Estimated net incremental rate of return | 1.73% | |
Reinvestment Income | $12,577,168 | |
Less: Shares Tax | 0 | |
Less: Estimated cost of ESOP borrowings (2) | 0 | |
Less: Amortization of ESOP borrowings (3) | 2,243,299 | |
Less: Amortization of Options (4) | 4,306,082 | |
Less: Recognition Plan Vesting (5) | 4,486,598 | |
Net Earnings Impact | $1,541,188 |
Net | |||||
Before | Earnings | After | |||
4. | Pro Forma Earnings | Conversion | Increase | Conversion | |
12 Months ended December 31, 2017 (reported) | $24,757,000 | $1,541,188 | $26,298,188 | ||
12 Months ended December 31, 2017 (core) | $32,762,000 | $1,541,188 | $34,303,188 |
Before | Net Cash | Tax Benefit | After | |||
5. | Pro Forma Net Worth | Conversion | Proceeds | Of Contribution | Conversion | |
December 31, 2017 | $471,658,000 | $727,845,361 | $9,463,918 | $1,208,967,278 | ||
December 31, 2017 (Tangible) | $465,942,000 | $727,845,361 | $9,463,918 | $1,203,251,278 | ||
Before | Net Cash | Tax Benefit | After | |||
6. | Pro Forma Assets | Conversion | Proceeds | Of Contribution | Conversion | |
December 31, 2017 | $5,766,500,000 | $727,845,361 | $9,463,918 | $6,503,809,278 |
(1) Includes ESOP and RRP stock purchases equal to 8.0 and 4.0 percent of total shares issued, respectively.
(2) ESOP stock purchases are internally financed by a loan from the holding company.
(3) ESOP borrowings are amortized over 20 years, amortization expense is tax-effected at a 36.0 percent rate.
(4) Option valuation based on Black-Scholes model, 5 year vesting, and assumes 25 percent is taxable.
(5) RRP is amortized over 5 years, and amortization expense is tax effected at 36.0 percent.
Exhibit 3
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Columbia Financial, Inc.
At the Maximum Value
1. | Pro Forma Market Capitalization | $1,007,731,960 |
Less: Foundation Shares | 30,231,960 | |
2. | Offering Proceeds | $977,500,000 |
Less: Estimated Offering Expenses | 19,550,000 | |
Net Conversion Proceeds | $957,950,000 | |
3. | Estimated Additional Income from Conversion Proceeds | |
Net Conversion Proceeds | $957,950,000 | |
Less: Cash Contribution to Foundation | 0 | |
Less: Non-Cash Stock Purchases (1) | 120,927,835 | |
Net Proceeds Reinvested | $837,022,165 | |
Estimated net incremental rate of return | 1.73% | |
Reinvestment Income | $14,463,743 | |
Less: Shares Tax | 0 | |
Less: Estimated cost of ESOP borrowings (2) | 0 | |
Less: Amortization of ESOP borrowings (3) | 2,579,794 | |
Less: Amortization of Options (4) | 4,951,995 | |
Less: Recognition Plan Vesting (5) | 5,159,588 | |
Net Earnings Impact | $1,772,367 |
Net | ||||||
Before | Earnings | After | ||||
4. | Pro Forma Earnings | Conversion | Increase | Conversion | ||
12 Months ended December 31, 2017 (reported) | $24,757,000 | $1,772,367 | $26,529,367 | |||
12 Months ended December 31, 2017 (core) | $32,762,000 | $1,772,367 | $34,534,367 | |||
Before | Net Cash | Tax Benefit | After | |||
5. | Pro Forma Net Worth | Conversion | Proceeds | Of Contribution | Conversion | |
December 31, 2017 | $471,658,000 | $837,022,165 | $10,883,506 | $1,319,563,670 | ||
December 31, 2017 (Tangible) | $465,942,000 | $837,022,165 | $10,883,506 | $1,313,847,670 | ||
Before | Net Cash | Tax Benefit | After | |||
6. | Pro Forma Assets | Conversion | Proceeds | Of Contribution | Conversion | |
December 31, 2017 | $5,766,500,000 | $837,022,165 | $10,883,506 | $6,614,405,670 |
(1) Includes ESOP and RRP stock purchases equal to 8.0 and 4.0 percent of total shares issued, respectively.
(2) ESOP stock purchases are internally financed by a loan from the holding company.
(3) ESOP borrowings are amortized over 20 years, amortization expense is tax-effected at a 36.0 percent rate.
(4) Option valuation based on Black-Scholes model, 5 year vesting, and assumes 25 percent is taxable.
(5) RRP is amortized over 5 years, and amortization expense is tax effected at 36.0 percent.
Exhibit 3
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Columbia Financial, Inc.
At the Super Maximum Value
1. | Pro Forma Market Capitalization | $1,158,891,750 |
Less: Foundation Shares | 34,766,750 | |
2. | Offering Proceeds | $1,124,125,000 |
Less: Estimated Offering Expenses | 22,482,500 | |
Net Conversion Proceeds | $1,101,642,500 | |
3. | Estimated Additional Income from Conversion Proceeds | |
Net Conversion Proceeds | $1,101,642,500 | |
Less: Cash Contribution to Foundation | 0 | |
Less: Non-Cash Stock Purchases (1) | 139,067,010 | |
Net Proceeds Reinvested | $962,575,490 | |
Estimated net incremental rate of return | 1.73% | |
Reinvestment Income | $16,633,304 | |
Less: Shares Tax | 0 | |
Less: Estimated cost of ESOP borrowings (2) | 0 | |
Less: Amortization of ESOP borrowings (3) | 2,966,763 | |
Less: Amortization of Options (4) | 5,694,794 | |
Less: Recognition Plan Vesting (5) | 5,933,526 | |
Net Earnings Impact | $2,038,222 |
Net | ||||||
Before | Earnings | After | ||||
4. | Pro Forma Earnings | Conversion | Increase | Conversion | ||
12 Months ended December 31, 2017 (reported) | $24,757,000 | $2,038,222 | $26,795,222 | |||
12 Months ended December 31, 2017 (core) | $32,762,000 | $2,038,222 | $34,800,222 | |||
Before | Net Cash | Tax Benefit | After | |||
5. | Pro Forma Net Worth | Conversion | Proceeds | Of Contribution | Conversion | |
December 31, 2017 | $471,658,000 | $962,575,490 | $12,516,030 | $1,446,749,520 | ||
December 31, 2017 (Tangible) | $465,942,000 | $962,575,490 | $12,516,030 | $1,441,033,520 | ||
Before | Net Cash | Tax Benefit | After | |||
6. | Pro Forma Assets | Conversion | Proceeds | Of Contribution | Conversion | |
December 31, 2017 | $5,766,500,000 | $962,575,490 | $12,516,030 | $6,741,591,520 |
(1) Includes ESOP and RRP stock purchases equal to 8.0 and 4.0 percent of total shares issued, respectively.
(2) ESOP stock purchases are internally financed by a loan from the holding company.
(3) ESOP borrowings are amortized over 20 years, amortization expense is tax-effected at a 36.0 percent rate.
(4) Option valuation based on Black-Scholes model, 5 year vesting, and assumes 25 percent is taxable.
(5) RRP is amortized over 5 years, and amortization expense is tax effected at 36.0 percent.
EXHIBIT 4
Pro Forma Analysis Sheet- Minority Stock Offering
EXHIBIT 4
PRO FORMA ANALYSIS SHEET - MINORITY STOCK OFFERING
Columibia Financial, Inc.
February 2, 2018
Peer Group | New Jersey Companies | All Publicly-Traded | ||||||||||
Price Multiple | Symbol | Subject (1) | Average | Median | Average | Median | Average | Median | ||||
Price-earnings ratio (x) | P/E | 35.33 | x | 24.15x | 20.65x | 26.14x | 26.25x | 24.25x | 21.32x | |||
Price-core earnings ratio (x) | P/Core | 26.71 | x | 22.15x | 20.98x | 25.74x | 25.90x | 21.08x | 18.48x | |||
Price-book ratio (%) | = | P/B | 109.41% | 137.58% | 133.16% | 132.81% | 135.26% | 137.09% | 128.95% | |||
Price-tangible book ratio (%) | = | P/TB | 110.13% | 151.61% | 143.53% | 152.78% | 137.73% | 153.51% | 137.37% | |||
Price-assets ratio (%) | = | P/A | 14.38% | 16.62% | 16.44% | 18.62% | 18.08% | 16.62% | 16.56% |
Valuation Parameters | ||||||||||
Pre-Conversion Earnings (Y)(2) | $24,754,000 | ESOP Stock Purchases (E) | 8.52% | (7) | ||||||
Pre-Conversion Earnings (CY)(2) | $32,759,000 | Cost of ESOP Borrowings (S) | 0.00% | (6) | ||||||
Pre-Conversion Book Value (B)(2)[3] | $471,458,000 | ESOP Amortization (T) | 20.00 | years | ||||||
Pre-Conv. Tang. Book Value (TB)(2)[3] | $465,742,000 | MRP Amount (M) | 4.26% | |||||||
Pre-Conversion Assets (A)(2)[3] | $5,765,888,000 | MRP Vesting (N) | 5.00 | years (7) | ||||||
Reinvestment Rate (4)(R) | 2.70% | Foundation (F) | 6.98% | |||||||
Est. Conversion Expenses (5)(X) | 1.31% | Tax Benefit (Z) | 9,463,918 | |||||||
Tax Rate (TAX) | 36.00% | Percentage Sold (PCT) | 46.00% | |||||||
Option (O1) | 10.65% | (8) | ||||||||
Estimated Option Value (O2) | 28.00% | (8) | ||||||||
Option vesting (O3) | 5.00 | (8) | ||||||||
Option pct taxable (O4) | 25.00% | (8) |
Calculation of Pro Forma Value After Conversion | |||||||
1. V= | P/E * (Y) | V= | $876,288,660 | ||||
1 - P/E * PCT * ((1-X-E-M-F)*R*(1-TAX) - (1-TAX)*E/T - (1-TAX)*M/N) - (1-(TAX*O4))*(O1*O2)/O3) | |||||||
2. V= | P/Core * (Y) | V= | $876,288,660 | ||||
1 - P/core * PCT * ((1-X-E-M-F)*R*(1-TAX) - (1-TAX)*E/T - (1-TAX)*M/N) - (1-(TAX*O4))*(O1*O2)/O3) | |||||||
3. V= | P/B * (B+Z) | V= | $876,288,660 | ||||
1 - P/B * PCT * (1-X-E-M-F) | |||||||
4. V= | P/TB * (TB+Z) | V= | $876,288,660 | ||||
1 - P/TB * PCT * (1-X-E-M-F) | |||||||
5. V= | P/A * (A+Z) | V= | $876,288,660 | ||||
1 - P/A * PCT * (1-X-E-M-F) |
Aggregate | |||||||||||||
Shares | Market Value | ||||||||||||
Shares Owned by | Shares Issued | Price Per | Gross Offering | Issued to | Total Shares | of Shares Issued | Full Value | ||||||
Conclusion | The MHC | To the Public | Share | Proceeds | Foundation | Issued Publicly | Publicly | Total Shares | |||||
Super Maximum | 62,580,155 | 49,832,345 | 10.00 | $ 498,323,450 | 3,476,675 | 53,309,020 | $ 533,090,200 | 115,889,175 | |||||
Maximum | 54,417,526 | 43,332,474 | 10.00 | $ 433,324,740 | 3,023,196 | 46,355,670 | 463,556,700 | 100,773,196 | |||||
Midpoint | 47,319,588 | 37,680,412 | 10.00 | $ 376,804,120 | 2,628,866 | 40,309,278 | 403,092,780 | 87,628,866 | |||||
Minimum | 40,221,650 | 32,028,350 | 10.00 | $ 320,283,500 | 2,234,536 | 34,262,886 | 342,628,860 | 74,484,536 |
(1) | Pricing ratios shown reflect the midpoint value. |
(2) | Adjusted for capitalizing MHC with $200,000. |
(3) | Adjusted for $412,000 net write-off of deferred issuance cost related to the rempdtion of trust preferred securites.. |
(4) | Net return reflects a reinvestment rate of 2.70 percent, and a tax rate of 36.0 percent. |
(5) | Offering expenses shown at estimated midpoint value. |
(6) | No cost is applicable since holding company will fund the ESOP loan. |
(7) | ESOP and MRP amortize over 20 years and 5 years, respectively; amortization expenses tax effected at 36.0 percent. |
(8) | 10 percent option plan with an estimated Black-Scholes valuation of 28.00 percent of the exercise price, including a 5 year vesting with 25 percent of the options (granted to directors) tax effected at 36.0 percent. |
EXHIBIT 5
Pro Forma Analysis Sheet- Minority Stock Offering
Exhibit 5
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Columbia Financial, Inc.
At the Minimum
1. | Pro Forma Market Capitalization | $342,628,860 |
Less: Foundation Shares | 22,345,360 | |
2. | Offering Proceeds | $320,283,500 |
Less: Estimated Offering Expenses | 4,674,923 | |
Net Conversion Proceeds | $315,608,577 | |
3. | Estimated Additional Income from Conversion Proceeds | |
Net Conversion Proceeds | $315,608,577 | |
Less: Cash Contribution to Foundation | 0 | |
Less: Non-Cash Stock Purchases (1) | 43,796,906 | |
Net Proceeds Reinvested | $271,811,671 | |
Estimated net incremental rate of return | 1.73% | |
Reinvestment Income | $4,696,906 | |
Less: Estimated cost of ESOP borrowings (2) | 0 | |
Less: Amortization of ESOP borrowings (3) | 934,334 | |
Less: Amortization of Options (4) | 1,859,909 | |
Less: Recognition Plan Vesting (5) | 1,868,668 | |
Net Earnings Impact | $33,995 |
Net | |||||
Before | Earnings | After | |||
4. | Pro Forma Earnings | Conversion | Increase | Conversion | |
12 Months ended December 31, 2017 (reported) | $24,754,000 | $33,995 | $24,787,995 | ||
12 Months ended December 31, 2017 (core) | $32,759,000 | $33,995 | $32,792,995 |
Before | Net Cash | Tax Benefit | After | |||
5. | Pro Forma Net Worth | Conversion | Proceeds | Of Contribution | Conversion | |
December 31, 2017 | $471,458,000 | $271,811,671 | $8,044,330 | $751,314,000 | ||
December 31, 2017 (Tangible) | $465,742,000 | $271,811,671 | $8,044,330 | $745,598,000 | ||
Before | Net Cash | Tax Benefit | After | |||
6. | Pro Forma Assets | Conversion | Proceeds | Of Contribution | Conversion | |
December 31, 2017 | $5,765,888,000 | $271,811,671 | $8,044,330 | $6,045,744,000 |
(1) | Includes ESOP and MRP stock purchases equal to 8.52 percent and 4.26 percent of the public shares, respectively. |
(2) | ESOP stock purchases are internally financed by a loan from the holding company. |
(3) | ESOP borrowings are amortized over 20 years, amortization expense is tax-effected at a 36.0 percent rate. |
(4) | Option valuation based on Black-Scholes model, 5 year vesting, and assuming 25 percent taxable. |
(5) | MRP is amortized over 5 years, and amortization expense is tax effected at 36.0 percent. |
Exhibit 5
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Columbia Financial, Inc.
At the Midpoint
1. | Pro Forma Market Capitalization | $403,092,780 |
Less: Foundation Shares | 26,288,660 | |
2. | Offering Proceeds | $376,804,120 |
Less: Estimated Offering Expenses | 4,931,763 | |
Net Conversion Proceeds | $371,872,357 | |
3. | Estimated Additional Income from Conversion Proceeds | |
Net Conversion Proceeds | $371,872,357 | |
Less: Cash Contribution to Foundation | 0 | |
Less: Non-Cash Stock Purchases (1) | 51,525,773 | |
Net Proceeds Reinvested | $320,346,584 | |
Estimated net incremental rate of return | 1.73% | |
Reinvestment Income | $5,535,589 | |
Less: Estimated cost of ESOP borrowings (2) | 0 | |
Less: Amortization of ESOP borrowings (3) | 1,099,216 | |
Less: Amortization of Options (4) | 2,188,128 | |
Less: Recognition Plan Vesting (5) | 2,198,433 | |
Net Earnings Impact | $49,812 |
Net | |||||
Before | Earnings | After | |||
4. | Pro Forma Earnings | Conversion | Increase | Conversion | |
12 Months ended December 31, 2017 (reported) | $24,754,000 | $49,812 | $24,803,812 | ||
12 Months ended December 31, 2017 (core) | $32,759,000 | $49,812 | $32,808,812 |
Before | Net Cash | Tax Benefit | After | |||
5. | Pro Forma Net Worth | Conversion | Proceeds | Of Contribution | Conversion | |
December 31, 2017 | $471,458,000 | $320,346,584 | $9,463,918 | $801,268,502 | ||
December 31, 2017 (Tangible) | $465,742,000 | $320,346,584 | $9,463,918 | $795,552,502 | ||
Before | Net Cash | Tax Benefit | After | |||
6. | Pro Forma Assets | Conversion | Proceeds | Of Contribution | Conversion | |
December 31, 2017 | $5,765,888,000 | $320,346,584 | $9,463,918 | $6,095,698,502 |
(1) | Includes ESOP and MRP stock purchases equal to 8.52 percent and 4.26 percent of the public shares, respectively. |
(2) | ESOP stock purchases are internally financed by a loan from the holding company. |
(3) | ESOP borrowings are amortized over 20 years, amortization expense is tax-effected at a 36.0 percent rate. |
(4) | Option valuation based on Black-Scholes model, 5 year vesting, and assuming 25 percent taxable. |
(5) | MRP is amortized over 5 years, and amortization expense is tax effected at 36.0 percent. |
Exhibit 5
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Columbia Financial, Inc.
At the Maximum
1. | Pro Forma Market Capitalization | $463,556,700 |
Less: Foundation Shares | 30,231,960 | |
2. | Offering Proceeds | $433,324,740 |
Less: Estimated Offering Expenses | 5,188,603 | |
Net Conversion Proceeds | $428,136,137 | |
3. | Estimated Additional Income from Conversion Proceeds | |
Net Conversion Proceeds | $428,136,137 | |
Less: Cash Contribution to Foundation | 0 | |
Less: Non-Cash Stock Purchases (1) | 59,254,639 | |
Net Proceeds Reinvested | $368,881,498 | |
Estimated net incremental rate of return | 1.73% | |
Reinvestment Income | $6,374,272 | |
Less: Estimated cost of ESOP borrowings (2) | 0 | |
Less: Amortization of ESOP borrowings (3) | 1,264,099 | |
Less: Amortization of Options (4) | 2,516,347 | |
Less: Recognition Plan Vesting (5) | 2,528,198 | |
Net Earnings Impact | $65,628 |
Net | ||||||
Before | Earnings | After | ||||
4. | Pro Forma Earnings | Conversion | Increase | Conversion | ||
12 Months ended December 31, 2017 (reported) | $24,754,000 | $65,628 | $24,819,628 | |||
12 Months ended December 31, 2017 (core) | $32,759,000 | $65,628 | $32,824,628 | |||
Before | Net Cash | Tax Benefit | After | |||
5. | Pro Forma Net Worth | Conversion | Proceeds | Of Contribution | Conversion | |
December 31, 2017 | $471,458,000 | $368,881,498 | $10,883,506 | $851,223,004 | ||
December 31, 2017 (Tangible) | $465,742,000 | $368,881,498 | $10,883,506 | $845,507,004 | ||
Before | Net Cash | Tax Benefit | After | |||
6. | Pro Forma Assets | Conversion | Proceeds | Of Contribution | Conversion | |
December 31, 2017 | $5,765,888,000 | $368,881,498 | $10,883,506 | $6,145,653,004 |
(1) Includes ESOP and MRP stock purchases equal to 8.52 percent and 4.26 percent of the public shares, respectively.
(2) ESOP stock purchases are internally financed by a loan from the holding company.
(3) ESOP borrowings are amortized over 20 years, amortization expense is tax-effected at a 36.0 percent rate.
(4) Option valuation based on Black-Scholes model, 5 year vesting, and assuming 25 percent taxable.
(5) MRP is amortized over 5 years, and amortization expense is tax effected at 36.0 percent.
Exhibit 5
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Columbia Financial, Inc.
At the Super Maximum Value
1. | Pro Forma Market Capitalization | $533,090,200 |
Less: Foundation Shares | 34,766,750 | |
2. | Offering Proceeds | $498,323,450 |
Less: Estimated Offering Expenses | 5,483,969 | |
Net Conversion Proceeds | $492,839,481 | |
3. | Estimated Additional Income from Conversion Proceeds | |
Net Conversion Proceeds | $492,839,481 | |
Less: Cash Contribution to Foundation | 0 | |
Less: Non-Cash Stock Purchases (1) | 68,142,834 | |
Net Proceeds Reinvested | $424,696,647 | |
Estimated net incremental rate of return | 1.73% | |
Reinvestment Income | $7,338,758 | |
Less: Estimated cost of ESOP borrowings (2) | 0 | |
Less: Amortization of ESOP borrowings (3) | 1,453,714 | |
Less: Amortization of Options (4) | 2,893,799 | |
Less: Recognition Plan Vesting (5) | 2,907,428 | |
Net Earnings Impact | $83,818 |
Net | ||||||
Before | Earnings | After | ||||
4. | Pro Forma Earnings | Conversion | Increase | Conversion | ||
12 Months ended December 31, 2017 (reported) | $24,754,000 | $83,818 | $24,837,818 | |||
12 Months ended December 31, 2017 (core) | $32,759,000 | $83,818 | $32,842,818 | |||
Before | Net Cash | Tax Benefit | After | |||
5. | Pro Forma Net Worth | Conversion | Proceeds | Of Contribution | Conversion | |
December 31, 2017 | $471,458,000 | $424,696,647 | $12,516,030 | $908,670,677 | ||
December 31, 2017 (Tangible) | $465,742,000 | $424,696,647 | $12,516,030 | $902,954,677 | ||
Before | Net Cash | Tax Benefit | After | |||
6. | Pro Forma Assets | Conversion | Proceeds | Of Contribution | Conversion | |
December 31, 2017 | $5,765,888,000 | $424,696,647 | $12,516,030 | $6,203,100,677 |
(1) Includes ESOP and MRP stock purchases equal to 8.52 percent and 4.26 percent of the public shares, respectively.
(2) ESOP stock purchases are internally financed by a loan from the holding company.
(3) ESOP borrowings are amortized over 20 years, amortization expense is tax-effected at a 36.0 percent rate.
(4) Option valuation based on Black-Scholes model, 5 year vesting, and assuming 25 percent taxable.
(5) MRP is amortized over 5 years, and amortization expense is tax effected at 36.0 percent.
EXHIBIT 6
Firm Qualifications Statement
FIRM QUALIFICATION STATEMENT
RP® Financial (“RP®) provides financial and management consulting, merger advisory and valuation services to the financial services industry nationwide. We offer a broad array of services, high quality and prompt service, hands-on involvement by principals and senior staff, careful structuring of strategic initiatives and sophisticated valuation and other analyses consistent with industry practices and regulatory requirements. Our staff maintains extensive background in financial and management consulting, valuation and investment banking. Our clients include commercial banks, thrifts, credit unions, mortgage companies, insurance companies and other financial services companies.
STRATEGIC PLANNING SERVICES
RP®’s strategic planning services are designed to provide effective feasible plans with quantifiable results. We analyze strategic options to enhance shareholder value, achieve regulatory approval or realize other objectives. Such services involve conducting situation analyses; establishing mission/vision statements, developing strategic goals and objectives; and identifying strategies to enhance franchise and/or market value, capital management, earnings enhancement, operational matters and organizational issues. Strategic recommendations typically focus on: capital formation and management, asset/liability targets, profitability, return on equity and stock pricing. Our proprietary financial simulation models provide the basis for evaluating the impact of various strategies and assessing their feasibility and compatibility with regulations.
MERGER ADVISORY SERVICES
RP®’s merger advisory services include targeting potential buyers and sellers, assessing acquisition merit, conducting due diligence, negotiating and structuring merger transactions, preparing merger business plans and financial simulations, rendering fairness opinions, preparing mark-to-market analyses, valuing intangible assets and supporting the implementation of post-acquisition strategies. Our merger advisory services involve transactions of financially healthy companies and failed bank deals. RP® is also expert in de novo charters and shelf charters. Through financial simulations, comprehensive data bases, valuation proficiency and regulatory familiarity, RP®’s merger advisory services center on enhancing shareholder returns.
VALUATION SERVICES
RP®’s extensive valuation practice includes bank and thrift mergers, thrift mutual-to-stock conversions, goodwill impairment, insurance company demutualizations, ESOPs, subsidiary companies, merger accounting and other purposes. We are highly experienced in performing appraisals which conform to regulatory guidelines and appraisal standards. RP® is the nation’s leading valuation firm for thrift mutual-to-stock conversions, with appraised values ranging up to $4 billion.
OTHER CONSULTING SERVICES
RP® offers other consulting services including evaluating the impact of regulatory changes (TARP, etc.), branching and diversification strategies, feasibility studies and special research. We assist banks/thrifts in preparing CRA plans and evaluating wealth management activities on a de novo or merger basis. Our other consulting services are facilitated by proprietary valuation and financial simulation models.
KEY PERSONNEL (Years of Relevant Experience & Contact Information)
Ronald S. Riggins, Managing Director (38) | (703) 647-6543 | rriggins@rpfinancial.com |
William E. Pommerening, Managing Director (34) | (703) 647-6546 | wpommerening@rpfinancial.com |
Marcus Faust, Managing Director (30) | (703) 647-6553 | mfaust@rpfinancial.com |
Gregory E. Dunn, Director (35) | (703) 647-6548 | gdunn@rpfinancial.com |
James P. Hennessey, Director (31) | (703) 647-6544 | jhennessey@rpfinancial.com |
James J. Oren, Director (31) | (703) 647-6549 | joren@rpfinancial.com |
Carla Pollard, Senior Vice President (28) | (703) 647-6556 | cpollard@rpfinancial.com |
Washington Headquarters | |
Three Ballston Plaza | Telephone: (703) 528-1700 |
1100 North Glebe Road, Suite 600 | Fax No.: (703) 528-1788 |
Arlington, VA 22201 | Toll-Free No.: (866) 723-0594 |
www.rpfinancial.com | E-Mail: mail@rpfinancial.com |
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