The Company maintains a single employer, tax-qualified defined benefit pension plan (the "Pension Plan") which covers full-time employees that satisfy the Pension Plan's eligibility requirements. The benefits are based on years of service and the employee's average compensation for the highest five consecutive years of employment. Effective October 1, 2018, employees hired are not eligible to participate in Columbia Bank's Pension Plan as the plan has been closed to new employees as of that date.

The Company's policy is to fund at least the minimum contribution required by the Employee Retirement Income Security Act of 1974. GAAP requires an employer to: (a) recognize in its statement of financial position the over-funded or under-funded status of a defined benefit post-retirement plan measured as the difference between the fair value of plan assets and the benefit obligation; (b) measure a plan’s assets and its obligations that determine its funded status at the end of the employer’s fiscal year (with limited exceptions); and (c) recognize as a component of other comprehensive income (loss), net of tax, the actuarial gains and losses and the prior service costs and credits that arise during the period. The assets of the plan are primarily invested in fixed income and equity funds.

The Company also has a Retirement Income Maintenance Plan (the "RIM" Plan), which is a non-qualified defined benefit plan which provides benefits to all employees of the Company if their benefits under the Pension Plan are limited by Internal Revenue Code 415 and 401(a)(17).

In addition, the Company provides certain health care and life insurance benefits to eligible retired employees under a Post-retirement Plan. The Company accrues the cost of retiree health care and other benefits during the employees’ period of active service. Effective January 1, 2019, the Post-retirement Plan has also been closed to new hires. The Company also provides life insurance benefits to eligible employees under an endorsement split-dollar life insurance program.

The Company also provides life insurance benefits to eligible employees under an endorsement split-dollar life insurance program. The Company recognizes a liability for future benefits applicable to endorsement split-dollar life insurance arrangements that provide death benefits post-retirement. Through its mergers, the Company recognized an additional liability for future benefits applicable to endorsement split-dollar life insurance arrangements that provide death benefits post-retirement under those respective Bank's program.


	December 31,
	2021		2020		2021		2020		2021		2020		2021		2020
	Pension Plan				RIM Plan				Post-retirement Plan				Split-Dollar Life Insurance
	(In thousands)
Change in benefit obligation:
Benefit obligation at beginning of year	$	312,440	$	263,826	$	16,530	$	13,696	$	30,621	$	24,603	$	19,981	$	14,100
Acquired	—		—		—		—		—		—		—		1,981
Service cost	8,044		7,985		398		267		520		394		562		467
Interest cost	7,317		7,608		343		405		562		683		500		507
Actuarial (gain) loss	(9,023)		40,281		(1,292)		2,506		(4,805)		5,506		(903)		3,137
Benefits paid	(8,362)		(7,260)		(329)		(344)		(563)		(565)		—		(211)
Benefit obligation at end of year	310,416		312,440		15,650		16,530		26,335		30,621		20,140		19,981

Change in plan assets:
Fair value of plan assets at beginning of year	411,907		356,347		—		—		—		—		—		—
Actuarial return on plan assets	53,587		50,820		—		—		—		—		—		—
Employer contributions	35,000		12,000		329		344		563		565		—		211
Benefits paid	(8,362)		(7,260)		(329)		(344)		(563)		(565)		—		(211)
Fair value of plan assets at end of year	492,132		411,907		—		—		—		—		—		—
Funded status at end of year	$	181,716	$	99,467	$	(15,650)	$	(16,530)	$	(26,335)	$	(30,621)	$	(20,140)	$	(19,981)

At December 31, 2021 and 2020, the unfunded liability for the RIM Plan and Post-retirement Plan of $15.7 million and $26.3 million, and $16.5 million and $30.6 million, respectively, were included in other liabilities in the Consolidated Statements of Financial Condition, and the over-funded pension benefits associated with the Pension Plan totaling $181.7 million and $99.5 million respectively, were included in other assets in the Consolidated Statements of Financial Condition.


	At December 31,
	2021								2020
	Pension Plan		RIM Plan		Post-retirement Plan		Split-Dollar Life Insurance		Pension Plan		RIM Plan		Post-retirement Plan		Split-Dollar Life Insurance
	(In thousands)

Unrecognized prior service costs	$	—	$	—	$	—	$	350	$	—	$	—	$	—	$	405
Unrecognized net actuarial income	38,909		5,730		6,999		7,071		76,686		7,686		12,417		8,741
Total accumulated other comprehensive income	$	38,909	$	5,730	$	6,999	$	7,421	$	76,686	$	7,686	$	12,417	$	9,146


	At December 31, 2019
	Pension Plan		RIM Plan		Post-retirement Plan		Split-Dollar Life Insurance
	(In thousands)

Unrecognized prior service costs	$	—	$	—	$	—	$	461
Unrecognized net actuarial income	68,752		5,777		7,221		6,058
Total accumulated other comprehensive income	$	68,752	$	5,777	$	7,221	$	6,519


	For the Year Ended December 31, 2021
	Pension Plan		RIM Plan		Post-retirement Plan		Split-Dollar Life Insurance		Affected Line Item in the Consolidated Statements of Income
	(In thousands)

Service cost	$	8,044	$	398	$	520	$	562	Compensation and employee benefits
Interest cost	7,317		343		562		500		Other non-interest expense
Expected return on plan assets	(26,833)		—		—		—		Other non-interest expense
Amortization:
Prior service cost	—		—		—		56		Other non-interest expense
Net loss	2,001		664		613		765		Other non-interest expense
Net periodic (income) benefit cost	$	(9,471)	$	1,405	$	1,695	$	1,883


	For the Year Ended December 31, 2020
	Pension Plan		RIM Plan		Post-retirement Plan		Split-Dollar Life Insurance		Affected Line Item in the Consolidated Statements of Income
	(In thousands)

Service cost	$	7,985	$	267	$	394	$	467	Compensation and employee benefits
Interest cost	7,608		405		683		507		Other non-interest expense
Expected return on plan assets	(23,375)		—		—		—		Other non-interest expense
Amortization:
Prior service cost	—		—		—		56		Other non-interest expense
Net loss	4,902		397		309		454		Other non-interest expense
Net periodic (income) benefit cost	$	(2,880)	$	1,069	$	1,386	$	1,484


	For the Year Ended December 31, 2019
	Pension Plan		RIM Plan		Post-retirement Plan		Split-Dollar Life Insurance		Affected Line Item in the Consolidated Statements of Income
	(In thousands)

Service cost	$	6,494	$	210	$	339	$	354	Compensation and employee benefits
Interest cost	8,569		466		826		457		Other non-interest expense
Expected return on plan assets	(21,058)		—		—		—		Other non-interest expense
Amortization:
Prior service cost	—		—		—		56		Other non-interest expense
Net loss	3,070		244		147		247		Other non-interest expense
Net periodic (income) benefit cost	$	(2,925)	$	920	$	1,312	$	1,114


	At and For the Years Ended December 31, 2021
	Pension Plan		RIM Plan		Post-retirement Plan		Split-Dollar Life Insurance
Weighted average assumptions used to determine benefit obligation:
Discount rate	3.140	%	2.970	%	2.900	%	3.220	%
Rate of compensation increase	3.750		3.750		N/A		3.750
Weighted average assumptions used to determine net periodic benefit cost:
Discount Rates:
Benefit obligation	2.920	%	2.670	%	2.590	%	3.010	%
Remeasurement rate	3.200		N/A		N/A		N/A
Service cost	3.210		2.930		2.960		3.260
Remeasurement rate	3.460		N/A		N/A		N/A
Interest cost	2.280		2.100		1.880		2.530
Remeasurement rate	2.550		N/A		N/A		N/A
Expected rate of return on plan assets	6.200		N/A		N/A		N/A
Rate of compensation increase	3.750		3.750		N/A		3.750


	At and For the Years Ended December 31, 2020
	Pension Plan		RIM Plan		Post-retirement Plan		Split-Dollar Life Insurance
Weighted average assumptions used to determine benefit obligation:
Discount rate	2.920	%	2.670	%	2.590	%	3.010	%
Rate of compensation increase	3.750		3.750		N/A		3.750
Weighted average assumptions used to determine net periodic benefit cost:
Discount Rates:
Benefit obligation	3.490	%	3.330	%	3.270	%	3.540	%
Remeasurement rate	2.740		N/A		N/A		N/A
Service cost	3.660		3.460		3.520		3.710
Remeasurement rate	2.970		N/A		N/A		N/A
Interest cost	3.120		3.000		2.850		3.280
Remeasurement rate	2.220		N/A		N/A		N/A
Expected rate of return on plan assets	6.500		N/A		N/A		N/A
Rate of compensation increase	3.500		3.500		N/A		3.500


	At and For the Years Ended December 31, 2019
	Pension Plan		RIM Plan		Post-retirement Plan		Split-Dollar Life Insurance
Weighted average assumptions used to determine benefit obligation:
Discount rate	3.490	%	3.330	%	3.270	%	3.540	%
Rate of compensation increase	3.500		3.500		N/A		3.500
Weighted average assumptions used to determine net periodic benefit cost:
Discount Rates:
Benefit obligation	4.570	%	4.470	%	4.410	%	4.630	%
Remeasurement rate	3.850		N/A		N/A		N/A
Service cost	4.700		4.570		4.600		4.740
Remeasurement rate	4.040		N/A		N/A		N/A
Interest cost	4.250		4.180		4.050		4.390
Remeasurement rate	3.440		N/A		N/A		N/A
Expected rate of return on plan assets	7.000		N/A		N/A		N/A
Rate of compensation increase	3.500		3.500		N/A		3.500

The Company provides its actuaries with certain rate assumptions used in measuring the respective benefit obligations. The most significant of these is the discount rate used to calculate the period-end present value of the benefit obligations, and the expense to be included in the following year's financial statements. A lower discount rate will result in a higher benefit obligation and expense, while a higher discount rate will result in a lower benefit obligation and expense. The discount rate assumption was determined based on a cash flow-yield curve model specific to the Company's pension and post-retirement plans.

The Company compares this rate to certain market indices, such as long-term treasury bonds, or pension liability indices, for reasonableness. The Company's expected return on plan assets assumption is based on historical investment return rate experience and evaluation of input from the trustee managing the pension plan's assets and Columbia Bank's Pension Committee which has responsibility for managing these assets. The expected return on pension plan assets is also impacted by the target allocation of assets, which is based on the Company's goal of earning the highest rate of return while maintaining risk at acceptable levels.


For the Year Ended December 31,	Pension Plan		RIM Plan		Post-retirement Plan		Split-Dollar Life Insurance
	(In thousands)

2022	$	9,026	$	399	$	1,354	$	313
2023	10,502		496		1,379		365
2024	11,224		634		1,442		413
2025	11,855		736		1,503		458
2026	12,497		780		1,554		512
2027 - 2031	71,132		4,267		7,840		2,695

Management, under the direction of Columbia Bank's Pension Committee strives to have pension assets sufficiently diversified so that adverse or unexpected results from one security class will not have a significant detrimental impact on the entire portfolio. The target allocation of assets and acceptable ranges around the targets are as follows:

Columbia Bank's Pension Committee engages an investment management advisory firm to regularly monitor the performance of the asset managers and ensure they are within compliance with policy. The maximum and minimum of the range for each class is based on the fair value of the assets in the fund. If changes in fair value should lead to allocations outside these boundaries, management shall adjust exposure back to the established guidelines within 90 days or reevaluate the guidelines.

The following tables present the assets that are measured at fair value on a recurring basis by level within the U.S. GAAP fair value hierarchy as reported on the Statements of Net Assets Available for Plan Benefits at December 31, 2021 and 2020, respectively. A financial instrument's level within the fair value hierarchy's is based on the lowest level of input that is significant to the fair value measurement.


	December 31, 2021
			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	$	2,537	$	2,537	$	—	$	—
Mutual funds - value stock fund	36,477		36,477		—		—
Mutual funds - fixed income	200,349		200,349		—		—
Mutual funds - international stock	60,042		60,042		—		—
Mutual funds - institutional stock index	181,013		181,013		—		—
Commingled real estate funds	11,714		—		11,714		—
	$	492,132	$	480,418	$	11,714	$	—


	December 31, 2020
			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	$	1,434	$	1,434	$	—	$	—
Mutual funds - value stock fund	29,914		29,914		—		—
Mutual funds - fixed income	155,864		155,864		—		—
Mutual funds - international stock	55,300		55,300		—		—
Mutual funds - institutional stock index	151,436		151,436		—		—
Commingled real estate funds	17,959		—		17,959		—
	$	411,907	$	393,948	$	17,959	$	—

Money market and other mutual funds are reported at fair value in the tables above utilizing exchange quoted prices in active markets for identical instruments (Level 1 inputs). The commingled real estate funds are reported at their respective net asset values (Level 2 inputs).

The Company has BOLI which is a tax-advantaged transaction that is used to partially fund obligations associated with employee compensation and benefit programs. Policies are purchased insuring officers of the Company using a single premium method of payment. BOLI is accounted for using the cash surrender value and the increase in cash surrender value is included in non-interest income in the Company's Consolidated Statements of Income. At December 31, 2021 and 2020, the Company had $247.5 million and $232.8 million, respectively, in BOLI. BOLI income for the years ended December 31, 2021, 2020, and 2019 was $6.0 million, $6.6 million, and $5.8 million, respectively.

Columbia Bank also maintains a non-qualified defined contribution plan that provides supplemental benefits to certain executives who are prevented from receiving the full benefits contemplated by the 401(k) Plan under tax law limits for tax-qualified plans. The contribution expense for the years ended December 31, 2021, 2020, and 2019 was approximately $12,000, $4,000, and $11,000, respectively.

Columbia Bank and Freehold Bank both have a 401(k) plan covering substantially all employees of each Bank. Columbia Bank may match a percentage of the first 3.00% to 4.50% contributed by participants. Columbia’s matching contribution, if any, is determined by the Board of Directors in its sole discretion. Freehold does not presently match any portion of employee contribution, but may provide an annual match determined by their Board of Directors in its sole discretion. The expense for the years ended December 31, 2021, 2020, and 2019 was approximately $1.9 million, $1.7 million, and $1.4 million, respectively.

Effective upon the consummation of the Company's reorganization in April 2018, an ESOP was established for all eligible employees. The ESOP used $45.4 million in proceeds from a 20 years term loan obtained from the Company to purchase 4,542,855 shares of Company common stock. The term loan principal is payable in installments through April 2038. Interest on the term loan is fixed at a rate of 4.75%.

Each year, Columbia Bank makes discretionary contributions to the ESOP, which are equal to principal and interest payments required on the term loan. Shares purchased with the loan proceeds were initially pledged as collateral for the term loan and is held in a suspense account for future allocation among participants. Contributions to the ESOP and shares released form the suspense account are allocated among the participants on the basis of compensation, as described by the ESOP, in the year of allocation.

The ESOP shares pledged as collateral are reported as unearned ESOP shares in the Consolidated Statements of Financial Condition. As shares are committed to be released from collateral, the Company reports compensation expense equal to the average market price of the shares during the year, and the shares become outstanding for basic net income per common share computations. ESOP compensation expense for the years ended December 31, 2021, 2020, and 2019 was $4.1 million, $3.2 million and $3.6 million, respectively.

Columbia Bank has a SERP, which is a non-qualified plan which provides supplemental retirement benefits to eligible officers (those designated by the Board of Directors) of the Company who are prevented from receiving the full benefits contemplated by the ESOP's benefit formulas under tax law limits for tax-qualified plans. SERP compensation expense for the years ended December 31, 2021, 2020, and 2019 was $348,000, $215,000, and $267,000, respectively.

Through the acquisition of Roselle, the Company acquired a non-contributory defined benefit supplemental executive retirement plan with the only participant being the former president of Roselle Bank. For the years ended December 31, 2021 and 2020, the Company recorded a net periodic benefit cost of $9,000 and $11,000, respectively, in connection with this plan.

Freehold Bank has a non-contributory defined benefit supplemental executive plan with the only participant being the former president of Freehold Bank. For the year ended December 31, 2021, the Company recorded a net periodic benefit cost of $1,000 in connection with this plan.

Freehold Bank maintains a Director Retirement Income Plan, which provides directors a benefit equal to $12,000 per annum, payable in equal installments over 120 months when the director reaches Emeritus Age as defined by the plan. For the year ended December 31, 2021, the net periodic benefit cost recorded in connection with this plan was $1,000.

Freehold Bank maintains a Director Deferred Retirement Plan, which provides directors a portion of their deferred director fees and a 10% return on all deferrals, payable in monthly installments over 120 months, when the director reaches benefit eligibility age as defined by the plan. At December 31, 2021, the Company had an accrued liability of $765,000 related to this plan. For the year ended December 31, 2021, there was no expense recorded under this plan.

In addition, Columbia Bank maintains a stock based deferral plan for certain executives and directors, and a cash based deferred compensation plan for directors. The Company records a deferred compensation equity account and corresponding contra-equity account for the cost of the shares held by the Stock Based Deferral Plan. Periodic adjustments to market are not required as participants do not have the option to take the distribution in cash. The Company records a liability for the amount deferred under the Directors Deferred Compensation Plan. There were no expenses recorded under these plans.

At the Company's annual meeting held on June 6, 2019, stockholders approved the Columbia Financial, Inc. 2019 Equity Incentive Plan ("2019 Plan") which provides for the issuance of up to 7,949,996 shares (2,271,427 restricted stock awards and 5,678,569 stock options) of common stock.

Restricted shares granted under the 2019 Plan generally vest in equal installments, over the performance or service periods ranging from 1 year to 5 years, beginning 1 year from the date of grant. A portion of restricted shares awarded are performance vesting awards, which may or may not vest depending upon the attainment of certain corporate financial targets. Management recognizes compensation expense for the fair value of restricted shares on a straight line basis over the requisite performance or service period. During the years ended December 31, 2021, 2020, and 2019, approximately $5.7 million, $5.6 million, and $2.3 million, respectively, in expense was recognized in regard to these awards. The expected future compensation expense related to the 1,054,335 non-vested restricted shares outstanding at December 31, 2021 is approximately $8.7 million over a weighted average period of 1.9 years.


	Number of Restricted Shares	Weighted Average Grant Date Fair Value

Non-vested at January 1, 2020	1,420,012	$	15.67
Grants	33,160	15.08
Vested	(172,756)	15.66
Forfeited	(17,247)	16.02
Non-vested at December 31, 2020	1,263,169	$	15.66
Grants	50,203	17.86
Vested	(193,528)	15.58
Forfeited	(65,509)	15.62
Non-vested at December 31, 2021	1,054,335	$	15.78

On July 23, 2019, options to purchase 3,707,901 shares of Company common stock were awarded with a grant date fair value of $4.25 per option. Stock options granted under the 2019 Plan vest in equal installments over the service period of five years beginning one year from the date of grant. Stock options were granted at an exercise price of $15.60, which represents the fair value of the Company's common stock price on the grant date based on the closing market price, and have an expiration period of 10 years. The fair value of stock options granted was estimated utilizing the Black-Scholes option pricing model using the following assumptions: expected life of 6.5 years, risk-free rate of return of 1.90%, volatility of 22.12%, and a dividend yield of 0.00%.

On December 16, 2019, options to purchase 184,378 shares of Company common stock were awarded with a grant date fair value of $4.59 per option. Stock options granted under the 2019 Plan generally vest in equal installments over the service period of five years beginning one year from the date of grant. Stock options were granted at an exercise price of $17.00, which represents the fair value of the Company's common stock price on the grant date based on the closing market price, and have an expiration period of approximately 10 years. The fair value of stock options granted was estimated utilizing the Black-Scholes option pricing model using the following assumptions: expected life of 6.5 years, risk-free rate of return of 1.79%, volatility of 22.23%, and a dividend yield of 0.00%.

On March 22, 2021, options to purchase 109,654 shares of Company common stock were awarded with a grant date fair value of $4.91 per option. Stock options granted under the 2019 Plan vest in equal installments over the service period of three years beginning one year from the date of grant. Stock options were granted at an exercise price of $17.86, which represents the fair value of the Company's common stock price on the grant date based on the closing market price, and have an expiration period of approximately 10 years. The fair value of stock options granted was estimated utilizing the Black-Scholes option pricing model using the following assumptions: expected life of 6.0 years, risk-free rate of return of 1.11%, volatility of 25.98%, and a dividend yield of 0.00%.

The expected life of the options represents the period of time that stock options are expected to be outstanding and is estimated using the simplified approach, which assumes that all outstanding options will be exercised at the midpoint of the vesting date and full contractual term. The risk-free rate of return is based on the rates on the grant date of a U.S. Treasury Note with a term equal to the expected option life. Since the Company recently converted to a public Company and does not have sufficient historical price data, the expected volatility is based on the historical daily stock prices of a peer group of similar entities based on factors such as industry, stage of life cycle, size and financial leverage. The Company has not paid any cash dividends on its common stock.

Management recognizes expense for the fair value of these awards on a straight line basis over the requisite service period. During the years ended December 31, 2021, 2020, and 2019, approximately $3.2 million, $3.2 million, and $1.4 million, respectively, in expense was recognized in regard to these awards. The expected future compensation expense related to the 2,210,231 non-vested options outstanding at December 31, 2021 is $8.1 million over a weighted average period of 2.6 years.


	Number of Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value

Outstanding January 1, 2020	3,784,044	$	15.67	9.6	$	4,812,490
Expired	(10,457)	15.98		—	—
Forfeited	(64,959)	15.84		—	—
Outstanding, December 31, 2020	3,708,628	$	15.66	8.6	$	—
Granted	109,654	17.86		—	—
Exercised	(28,522)	15.60		—	—
Expired	(20,894)	15.60		—	—
Forfeited	(131,324)	15.66		—	—
Outstanding, December 31, 2021	3,637,542	$	15.78	7.6	$	18,654,905
Options exercisable at December 31, 2021	1,427,311	$	15.67	7.5	$	7,412,277

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value, the difference between the Company's closing stock price on the last trading day of the period and the exercise price, multiplied by the number of in-the-money options.