10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-38456

Columbia Financial, Inc.

(Exact name of registrant as specified in its charter)

Delaware		22-3504946
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)
19-01 Route 208 North,	Fair Lawn,
New Jersey		07140
(Address of principal executive offices)		(Zip Code)

(800) 522-4167

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	CLBK	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer	☒	Accelerated filer	☐	Smaller reporting company	☐
Non-accelerated filer	☐	Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes ☒ No

As of November 4, 2022, there were 109,575,472 shares issued and outstanding of the Registrant's common stock, par value $0.01 per share (including 76,016,524 shares held by Columbia Bank, MHC).

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Index to Form 10-Q

Item Number		Page Number
PART I.	Financial Information
Item 1.	Financial Statements
	Consolidated Statements of Financial Condition as of September 30, 2022 (Unaudited) and December 31, 2021	2
	Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2022 and 2021 (Unaudited)	3
	Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2022 and 2021 (Unaudited)	4
	Consolidated Statements of Changes in Stockholder's Equity for the Three and Nine Months Ended September 30, 2022 and 2021 (Unaudited)	5
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2022 and 2021 (Unaudited)	9
	Notes to Unaudited Consolidated Financial Statements	11
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	61
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	68
Item 4.	Controls and Procedures	72
PART II.	Other Information
	Item 1. Legal Proceedings	73
	Item 1A. Risk Factors	73
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	73
	Item 3. Defaults Upon Senior Securities	73
	Item 4. Mine Safety Disclosures	73
	Item 5. Other Information	73
	Item 6. Exhibits	73
	Exhibit Index	74
	SIGNATURES	75

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Statements of Financial Condition

(In thousands, except share and per share data)

	September 30,		December 31,
	2022		2021
Assets	(Unaudited)
Cash and due from banks	$	101,917	$	70,702
Short-term investments	131		261
Total cash and cash equivalents	102,048		70,963
Debt securities available for sale, at fair value	1,371,721		1,703,847
Debt securities held to maturity, at amortized cost (fair value of $373,494 and $434,789 at September 30, 2022 and December 31, 2021, respectively)	425,077		429,734
Equity securities, at fair value	3,453		2,710
Federal Home Loan Bank stock	37,726		23,141
Loans receivable	7,326,223		6,360,601
Less: allowance for credit losses (1)	51,891		62,689
Loans receivable, net	7,274,332		6,297,912
Accrued interest receivable	30,152		28,300
Office properties and equipment, net	84,255		78,708
Bank-owned life insurance ("BOLI")	263,217		247,474
Goodwill and intangible assets	126,296		91,693
Other assets	293,894		249,615
Total assets	$	10,012,171	$	9,224,097
Liabilities and Stockholders' Equity
Liabilities:
Deposits	$	8,064,893	$	7,570,216
Borrowings	674,018		377,309
Advance payments by borrowers for taxes and insurance	44,463		36,471
Accrued expenses and other liabilities	199,152		161,020
Total liabilities	8,982,526		8,145,016
Stockholders' equity:
Preferred stock, $0.01 par value. 10,000,000 shares authorized; none issued and outstanding at September 30, 2022 and December 31, 2021	—		—
Common stock, $0.01 par value. 500,000,000 shares authorized; 130,789,496 shares issued and 109,907,943 shares outstanding at September 30, 2022 and 124,630,738 shares issued and 107,442,453 shares outstanding at December 31, 2021	1,308		1,246
Additional paid-in capital	779,294		667,906
Retained earnings	835,627		765,133
Accumulated other comprehensive loss	(201,149)		(45,919)
Treasury stock, at cost; 20,881,553 shares at September 30, 2022 and 17,188,285 shares at December 31, 2021	(349,373)		(271,647)
Common stock held by the Employee Stock Ownership Plan	(35,322)		(37,026)
Stock held by Rabbi Trust	(3,010)		(2,425)
Deferred compensation obligations	2,270		1,813
Total stockholders' equity	1,029,645		1,079,081
Total liabilities and stockholders' equity	$	10,012,171	$	9,224,097
See accompanying notes to unaudited consolidated financial statements.
(1) The Company adopted ASU 2016-13 as of January 1, 2022. Prior year periods have not been restated.

2

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(In thousands, except per share data)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Interest income:	(Unaudited)
Loans receivable	$	68,516	$	55,451	$	187,400	$	171,902
Debt securities available for sale and equity securities	8,434		7,622		25,741		21,521
Debt securities held to maturity	2,440		2,353		7,223		6,256
Federal funds and interest-earning deposits	151		167		245		310
Federal Home Loan Bank stock dividends	384		460		1,129		1,582
Total interest income	79,925		66,053		221,738		201,571
Interest expense:
Deposits	6,968		6,673		16,326		23,403
Borrowings	3,806		2,028		7,028		5,996
Total interest expense	10,774		8,701		23,354		29,399
Net interest income	69,151		57,352		198,384		172,172
Provision for (reversal of) credit losses (1)	1,516		480		4,514		(2,561)
Net interest income after provision for (reversal of) credit losses	67,635		56,872		193,870		174,733
Non-interest income:
Demand deposit account fees	1,510		986		4,129		2,682
Bank-owned life insurance	1,633		1,504		5,501		4,475
Title insurance fees	796		1,431		2,788		4,554
Loan fees and service charges	1,432		844		2,928		2,209
Gain on securities transactions	—		2,296		210		2,015
Change in fair value of equity securities	(264)		(443)		(332)		(1,809)
(Loss) gain on sale of loans	(1)		140		109		10,814
Other non-interest income	3,058		2,116		7,541		6,920
Total non-interest income	8,164		8,874		22,874		31,860
Non-interest expense:
Compensation and employee benefits	31,523		24,512		86,393		71,506
Occupancy	5,973		4,846		16,838		14,912
Federal deposit insurance premiums	645		604		1,922		1,751
Advertising	771		662		2,215		1,860
Professional fees	2,134		1,766		5,727		5,207
Data processing and software expenses	3,670		2,798		10,036		8,181
Merger-related expenses	1,198		55		2,676		130
Loss on extinguishment of debt	—		—		—		742
Other non-interest expense, net	1,925		1,809		4,501		8,076
Total non-interest expense	47,839		37,052		130,308		112,365
Income before income tax expense	27,960		28,694		86,436		94,228
Income tax expense	7,041		7,712		22,154		25,513
Net income	$	20,919	$	20,982	$	64,282	$	68,715
Earnings per share-basic	$	0.20	$	0.20	$	0.61	$	0.66
Earnings per share-diluted	$	0.19	$	0.20	$	0.61	$	0.66
Weighted average shares outstanding-basic	106,926,864		102,977,254		105,440,345		104,486,520
Weighted average shares outstanding-diluted	107,534,498		102,977,254		106,040,240		104,486,520
See accompanying notes to unaudited consolidated financial statements.
(1) The Company adopted ASU 2016-13 as of January 1, 2022. Prior year periods have not been restated.

3

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (Loss)

(In thousands)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(Unaudited)
Net income	$	20,919	$	20,982	$	64,282	$	68,715
Other comprehensive (loss) income, net of tax:
Unrealized (loss) on debt securities available for sale	(47,155)		(9,943)		(142,643)		(22,189)
Accretion of unrealized (loss) on debt securities reclassified as held to maturity	(13)		(2)		(21)		—
Reclassification adjustment for gain included in net income	—		1,791		151		1,589
	(47,168)		(8,154)		(142,513)		(20,600)
Derivatives, net of tax:
Unrealized gain on swap contracts accounted for as cash flow hedges	1,182		1,467		5,167		8,098
	1,182		1,467		5,167		8,098
Employee benefit plans, net of tax:
Amortization of prior service cost included in net income	(11)		(10)		(31)		(31)
Reclassification adjustment of actuarial net (loss) included in net income	(244)		(1,089)		(732)		(3,267)
Change in funded status of retirement obligations	937		2,198		(17,121)		36,570
	682		1,099		(17,884)		33,272
Total other comprehensive (loss) income	(45,304)		(5,588)		(155,230)		20,770
Total comprehensive (loss) income, net of tax	$	(24,385)	$	15,394	$	(90,948)	$	89,485
See accompanying notes to unaudited consolidated financial statements.

4

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Statements of Changes in Stockholders' Equity (Unaudited)

Three Months Ended September 30, 2022 and 2021

(In thousands)

	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive (Loss)		Treasury Stock		Common Stock Held by the Employee Stock Ownership Plan		Stock Held by Rabbi Trust		Deferred Compensation Obligations		Total Stockholders' Equity
Balance at June 30, 2022	$	1,308	$	776,542	$	814,708	$	(155,845)	$	(325,723)	$	(35,895)	$	(2,878)	$	2,067	$	1,074,284
Net income	—		—		20,919		—		—		—		—		—		20,919
Other comprehensive (loss)	—		—		—		(45,304)		—		—		—		—		(45,304)
Stock based compensation	—		1,680		—		—		—		—		—		—		1,680
Purchase of treasury stock (874,080 shares)	—		—		—		—		(18,590)		—		—		—		(18,590)
Exercise of stock options (87,025 shares)	—		(253)		—		—		—		—		—		—		(253)
Restricted stock forfeitures (31,796 shares)	—		661		—		—		(661)		—		—		—		—
Repurchase shares for taxes (198,794 shares)	—		—		—		—		(4,399)		—		—		—		(4,399)
Employee Stock Ownership Plan shares committed to be released	—		664		—		—		—		573		—		—		1,237
Funding of deferred compensation obligations	—		—		—		—		—		—		(132)		203		71
Balance at September 30, 2022	$	1,308	$	779,294	$	835,627	$	(201,149)	$	(349,373)	$	(35,322)	$	(3,010)	$	2,270	$	1,029,645
See accompanying notes to unaudited consolidated financial statements.

5

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Statements of Changes in Stockholders' Equity (Unaudited)

Three Months Ended September 30, 2022 and 2021

(In thousands)

	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive (Loss)		Treasury Stock		Common Stock Held by the Employee Stock Ownership Plan		Stock Held by Rabbi Trust		Deferred Compensation Obligations		Total Stockholders' Equity
Balance at June 30, 2021	$	1,220	$	614,381	$	720,817	$	(43,267)	$	(221,072)	$	(38,169)	$	(2,205)	$	1,341	$	1,033,046
Net income	—		—		20,982		—		—		—		—		—		20,982
Other comprehensive income	—		—		—		(5,588)		—		—		—		—		(5,588)
Stock based compensation	—		2,203		—		—		—		—		—		—		2,203
Purchase of treasury stock (1,163,500 shares)	—		—		—		—		(20,544)		—		—		—		(20,544)
Exercise of options (26,861 shares)	—		(26)		—		—		—		—		—		—		(26)
Restricted stock forfeitures (29,882 shares)	—		539		—		—		(539)		—		—		—		—
Repurchase shares for taxes (16,599 shares)	—		—		—		—		(292)		—		—		—		(292)
Employee Stock Ownership Plan shares committed to be released	—		451		—		—		—		572		—		—		1,023
Funding of deferred compensation obligations	—		—		—		—		—		—		(94)		166		72
Balance at September 30, 2021	$	1,220	$	617,548	$	741,799	$	(48,855)	$	(242,447)	$	(37,597)	$	(2,299)	$	1,507	$	1,030,876
See accompanying notes to unaudited consolidated financial statements.

6

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Statements of Changes in Stockholders' Equity (Unaudited)

Nine Months Ended September 30, 2022 and 2021

(In thousands)

	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive (Loss)		Treasury Stock		Common Stock Held by the Employee Stock Ownership Plan		Stock Held by Rabbi Trust		Deferred Compensation Obligations		Total Stockholders' Equity
Balance at December 31, 2021	$	1,246	$	667,906	$	765,133	$	(45,919)	$	(271,647)	$	(37,026)	$	(2,425)	$	1,813	$	1,079,081
Effect of adopting ASU No. 2016-13 ("CECL")	—		—		6,212		—		—		—				—		6,212
Balance at January 1, 2022	1,246		667,906		771,345		(45,919)		(271,647)		(37,026)		(2,425)		1,813		1,085,293
Net income	—		—		64,282		—		—		—		—		—		64,282
Other comprehensive (loss)	—		—		—		(155,230)		—		—		—		—		(155,230)
Issuance of common stock to Columbia Bank MHC	61		102,680		—		—		—		—		—		—		102,741
Issuance of common stock allocated to restricted stock award grants (51,746 shares)	1		(1)		—		—		—		—		—		—		—
Stock based compensation	—		5,787		—		—		—		—		—		—		5,787
Purchase of treasury stock (3,420,747 shares)	—		—		—		—		(71,766)		—		—		—		(71,766)
Exercise of stock options (155,296 shares)	—		(445)		—		—		—		—		—		—		(445)
Restricted stock forfeitures (68,548 shares)	—		1,448		—		—		(1,448)		—		—		—		—
Repurchase shares for taxes (203,973 shares)	—		—		—		—		(4,512)		—		—		—		(4,512)
Employee Stock Ownership Plan shares committed to be released	—		1,919		—		—		—		1,704		—		—		3,623
Funding of deferred compensation obligations	—		—		—		—		—		—		(585)		457		(128)
Balance at September 30, 2022	$	1,308	$	779,294	$	835,627	$	(201,149)	$	(349,373)	$	(35,322)	$	(3,010)	$	2,270	$	1,029,645
See accompanying notes to unaudited consolidated financial statements.

7

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Statements of Changes in Stockholders' Equity (Unaudited)

Nine Months Ended September 30, 2022 and 2021

(In thousands)

	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive (Loss)		Treasury Stock		Common Stock Held by the Employee Stock Ownership Plan		Stock Held by Rabbi Trust		Deferred Compensation Obligations		Total Stockholders' Equity
Balance at December 31, 2020	$	1,220	$	609,531	$	673,084	$	(69,625)	$	(163,015)	$	(39,293)	$	(1,875)	$	1,260	$	1,011,287
Net income	—		—		68,715		—		—		—		—		—		68,715
Other comprehensive income	—		—		—		20,770		—		—		—		—		20,770
Treasury stock allocated to restricted stock award grants	—		(733)		—		—		733		—		—		—		—
Stock based compensation	—		6,743		—		—		—		—		—		—		6,743
Purchase of treasury stock (4,633,540 shares)	—		—		—		—		(79,090)		—		—		—		(79,090)
Exercise of stock options (28,522 shares)	—		(25)		—		—		—		—		—		—		(25)
Restricted stock forfeitures (43,856 shares)	—		783		—		—		(783)		—		—		—		—
Repurchase shares for taxes (16,599 shares)	—		—		—		—		(292)		—		—		—		(292)
Employee Stock Ownership Plan shares committed to be released	—		1,249		—		—		—		1,696		—		—		2,945
Funding of deferred compensation obligations	—		—		—		—		—		—		(424)		247		(177)
Balance at September 30, 2021	$	1,220	$	617,548	$	741,799	$	(48,855)	$	(242,447)	$	(37,597)	$	(2,299)	$	1,507	$	1,030,876
See accompanying notes to unaudited consolidated financial statements.

8

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

	Nine Months Ended September 30,
	2022		2021
	(In thousands, unaudited)
Cash flows from operating activities:
Net income	$	64,282	$	68,715
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred loan costs, fees and purchased premiums and discounts	4,748		16
Net amortization of premiums and discounts on securities	2,219		3,497
Net amortization of mortgage servicing rights	181		200
Amortization of intangible assets	1,369		774
Depreciation and amortization of office properties and equipment	5,456		5,019
Amortization of operating lease right-of-use assets	2,865		2,720
Loss on extinguishment of debt	—		742
Provision for (reversal of) credit losses	4,514		(2,561)
Gain on securities transactions	(210)		(2,015)
Change in fair value of equity securities	332		1,809
Gain on securitizations	—		(2,259)
Gain on sale of loans, net	(109)		(8,555)
Net loss on disposal of office properties and equipment	147		61
Deferred tax (benefit) expense	(3,487)		10,515
(Increase) decrease in accrued interest receivable	(942)		1,599
Decrease (increase) in other assets	2,114		(12,891)
Increase (decrease) in accrued expenses and other liabilities	24,951		(4,941)
Income on bank-owned life insurance	(5,501)		(4,475)
Employee stock ownership plan expense	3,623		2,945
Stock based compensation	5,787		6,743
Decrease in deferred compensation obligations under Rabbi Trust	(128)		(177)
Net cash provided by operating activities	112,211		67,481
Cash flows from investing activities:
Proceeds from sales of debt securities available for sale	126,772		27,249
Proceeds from sales of equity securities	—		1,260
Proceeds from paydowns/maturities/calls of debt securities available for sale	226,887		257,347
Proceeds from paydowns/maturities/calls of debt securities held to maturity	27,645		29,616
Purchases of debt securities available for sale	(142,181)		(659,015)
Purchases of debt securities held to maturity	(23,298)		(175,491)
Purchases of equity securities	—		(91)
Proceeds from sales of loans held-for-sale	6,187		293,005
Purchases of loans receivable	—		(74,232)
Net increase in loans receivable	(639,970)		(208,260)
Proceeds from bank-owned life insurance death benefits	776		5
Proceeds from redemptions of Federal Home Loan Bank stock	60,176		7,661
Purchases of Federal Home Loan Bank stock	(73,855)		(4,793)
Proceeds from sales of office properties and equipment	1,009		685
Additions to office properties and equipment	(4,863)		(4,217)
Net cash acquired in acquisition	140,769		—
Net cash (used in) investing activities	$	(293,946)	$	(509,271)

9

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows (continued)

	Nine Months Ended September 30,
	2022		2021
	( In thousands, unaudited)
Cash flows from financing activities:
Net (decrease) increase in deposits	$	(8,055)	$	443,734
Proceeds from long-term borrowings	35,893		37,120
Payments on long-term borrowings	—		(54,168)
Net increase (decrease) in short-term borrowings	255,054		(33,427)
Increase in advance payments by borrowers for taxes and insurance	6,651		3,469
Exercise of stock options	(445)		(25)
Purchase of treasury stock	(71,766)		(79,090)
Repurchase of shares for taxes	(4,512)		(292)
Net cash provided by financing activities	$	212,820	$	317,321
Net increase (decrease) in cash and cash equivalents	$	31,085	$	(124,469)
Cash and cash equivalents at beginning of year	70,963		422,957
Cash and cash equivalents at end of period	$	102,048	$	298,488
Cash paid during the period for:
Interest on deposits and borrowings	$	23,316	$	29,544
Income tax payments, net of (refunds)	$	13,229	$	13,203
Non-cash investing and financing activities:
Transfer of loans receivable to loans held-for-sale	$	6,078	$	280,304
Securitization of loans	—		99,603
Acquisition:
Non-cash assets acquired:
Debt securities available for sale	$	79,024	$	—
Equity securities	1,075		—
Federal Home Loan Bank stock	906		—
Loans receivable	335,501		—
Accrued interest receivable	910		—
Office properties and equipment, net	7,296		—
Goodwill and intangibles	38,274		—
Deferred tax asset, net	3,633		—
Bank-owned life insurance	13,033		—
Other assets	2,723		—
Total non-cash assets acquired	$	482,375	$	—
Liabilities assumed:
Deposits	$	502,732	$	—
Borrowings	5,762		—
Advance payments by borrowers for taxes and insurance	1,341		—
Accrued expenses and other liabilities	10,568		—
Total liabilities assumed	$	520,403	$	—
Net non-cash liabilities assumed	$	(38,028)	$	—
Net cash and cash equivalents acquired in acquisition	$	140,769	$	—
See accompanying notes to unaudited consolidated financial statements.

10

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

1.Basis of Financial Statement Presentation

    The accompanying consolidated financial statements include the accounts of Columbia Financial, Inc. ("Columbia Financial"), its wholly-owned subsidiaries, Columbia Bank ("Columbia") and Freehold Bank ("Freehold") and Columbia's wholly-owned subsidiaries, Columbia Investment Services, Inc., 2500 Broadway Corp., 1901 Residential Management Co. LLC, Plaza Financial Services, Inc., First Jersey Title Services, Inc., Real Estate Management Corp. LLC, 1901 Commercial Management Co. LLC, Stewardship Realty LLC, CSB Realty Corp., RSI Insurance Agency, Inc., RSI Investment Corporation, and Highlander Investment Company (collectively, the “Company”). In consolidation, all intercompany accounts and transactions are eliminated.

    Columbia Financial, Inc. is a majority-owned subsidiary of Columbia Bank, MHC (the "MHC"). The accounts of the MHC are not consolidated in the accompanying consolidated financial statements of the Company.

    In preparing the interim unaudited consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the Consolidated Statements of Financial Condition and Consolidated Statements of Income for the periods presented. Actual results could differ from these estimates. Material estimates that are particularly susceptible to change are the determination of the adequacy of the allowance for credit losses, evaluation of the need for valuation allowances on deferred tax assets, and determination of liabilities related to retirement and other post-retirement benefits. These estimates and assumptions are evaluated on an ongoing basis and are adjusted when facts and circumstances dictate.

    The interim unaudited consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. The results of operations for the three and nine month periods ended September 30, 2022 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year or any other period. Certain reclassifications have been made in the consolidated financial statements to conform with current year classifications.

    The interim unaudited consolidated financial statements of the Company presented herein have been prepared in accordance with the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and U.S. generally accepted accounting principles (“GAAP”). Certain information and note disclosures have been condensed or omitted pursuant to the rules and regulations of the SEC.

    These unaudited consolidated financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2021 and the audited consolidated financial statements included therein.

2.    Acquisitions

Freehold Bank

On December 1, 2021, the Company completed its acquisition of Freehold Bancorp, MHC, Freehold Bancorp, Inc. and Freehold Bank (collectively, the "Freehold Entities"). Pursuant to the terms of the merger agreement, Freehold Bancorp, MHC merged with and into the MHC, with the MHC as the surviving entity; and Freehold Bancorp, Inc. merged with and into Columbia Financial, with Columbia Financial as the surviving entity. In connection with the merger, Freehold Bank converted to a federal savings bank and will operate as a wholly-owned subsidiary of Columbia Financial until November 6, 2023, the effective date of the merger of Freehold Bank into Columbia Bank. Under the terms of the merger agreement, depositors of Freehold Bank became depositors of the Columbia Bank and have the same rights and privileges in the MHC as if their accounts had been established at Columbia Bank on the date established at Freehold Bank. The Company issued 2,591,007 shares of its common stock to the MHC, representing an amount equal to the fair value of the Freehold Entities as determined by an independent appraiser, at December 1, 2021, the effective time of the holding company mergers.

Merger-related expenses are recorded in the Consolidated Statements of Income and are expensed as incurred. Direct acquisition and other charges incurred in connection with the acquisition of the Freehold Entities totaled $4,000 and $11,000 during the three and nine months ended September 30, 2022, respectively. Merger expenses recorded during the three and nine months ended September 30, 2021 totaled $55,000 and $130,000, respectively.

During the third quarter of 2022, the Company completed all tax returns related to the operations of Freehold Bank and its impact on the Company's income taxes, which resulted in an adjustment of $82,000 to deferred income taxes, net, and a corresponding decrease in goodwill.

11

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

2.    Acquisitions (continued)

RSI Bank

On May 1, 2022, the Company completed its acquisition of RSI Bancorp, M.H.C., RSI Bancorp, Inc. and RSI Bank (collectively, the “RSI Entities”). Pursuant to the terms of the merger agreement, RSI Bancorp, M.H.C. merged with and into the MHC, with the MHC as the surviving entity; RSI Bancorp, Inc. merged with and into Columbia Financial, with Columbia Financial as the surviving entity; and RSI Bank merged with and into Columbia Bank, with Columbia Bank as the surviving institution. Under the terms of the merger agreement, depositors of RSI Bank became depositors of Columbia Bank and have the same rights and privileges in the MHC as if their accounts had been established at Columbia Bank on the date established at RSI Bank. The Company issued 6,086,314 shares of its common stock to the MHC, representing an amount equal to the discounted fair value of the RSI Entities as determined by an independent appraiser, at the effective time of the merger.

Merger-related expenses are recorded in the Consolidated Statements of Income and are expensed as incurred. Direct acquisition and other charges incurred in connection with the acquisition of the RSI Entities totaled $1.2 million and $2.7 million, respectively, during the three and nine months ended September 30, 2022. There were no merger expenses recorded during the three and nine months ended September 30, 2021.

The following table sets forth assets acquired and liabilities assumed in the acquisition of the RSI Entities, at their estimated fair values as of the closing date of the transaction:

	May 1, 2022
	(In thousands)
Assets acquired:
Cash and cash equivalents	$	140,769
Debt securities available for sale	79,024
Equity securities	1,075
Federal Home Loan Bank Stock	906
Loans receivable	335,501
Accrued interest receivable	910
Office properties and equipment, net	7,296
Bank-owned life insurance	13,033
Deferred tax asset, net	3,633
Core deposit intangibles	10,271
Other assets	2,723
Total assets acquired	$	595,141
Liabilities assumed:
Deposits	$	502,732
Borrowings	5,762
Advance payments by borrowers for taxes and insurance	1,341
Accrued expenses and other liabilities	10,568
Total liabilities assumed	$	520,403
Net assets acquired	$	74,738
Fair market value of stock issued to Columbia Bank MHC for purchase	102,741
Goodwill recorded at merger	$	28,003

12

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

2.    Acquisitions (continued)

The assets acquired and liabilities assumed have been accounted for under the acquisition method of accounting. The assets and liabilities were recorded at their fair values as of May 1, 2022, and resulted in the recognition of goodwill of $28.0 million. The determination of the fair value of assets acquired and liabilities assumed required management to make estimates about discount rates, future expected cash flows, market conditions, and other future events that are highly subjective in nature and subject to change. During the third quarter of 2022, the Company completed all tax returns related to the operation of RSI Bank and its impact on the Company's income taxes, which resulted in a $2.0 million adjustment to deferred income taxes, net, and a corresponding decrease in goodwill. The fair value estimates are subject to change for up to one year after the closing date of the transaction if additional information (existing at the date of closing) relative to closing date fair values becomes available. As the Company continues to analyze the acquired assets and assumed liabilities, there may be additional adjustments to the recorded carrying values. At September 30, 2022, goodwill related to the acquisition of the RSI Entities totaled $26.0 million.

Fair Value Measurement of Assets Acquired and Liabilities Assumed

Described below are the methods used to determine the fair values of the significant assets acquired and liabilities assumed:

Cash and cash equivalents. The estimated fair values of cash and cash equivalents approximate their stated face amounts, as

these financial instruments are either due on demand or have short-term maturities.

Debt securities available for sale. The estimated fair values of the debt securities were calculated utilizing Level 2 inputs. The majority of the acquired securities were fixed income instruments that are not quoted on an exchange, but are traded in active markets. The prices for these instruments are obtained through an independent pricing service when available, or dealer market participants with whom the Company has historically transacted with for both purchases and sales of securities. The prices are derived from market quotations and matrix pricing. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, and the bond's terms and conditions, among other things. Management reviewed the data and assumptions used in pricing securities by its third party provider to ensure the highest level of significant inputs are derived from market observable data.

Loans receivable. The acquired loan portfolio was segregated into pools for valuation purposes primarily based on loan type,

non-accrual status, and credit risk rating. The estimated fair values were computed by discounting the expected cash flows from the respective pools. Cash flows were estimated by using valuation models that incorporated estimates of current key assumptions such as prepayment speeds, default rates, and loss severity rates. The process included: (1) projecting monthly principal and/or interest cash flows based on the contractual terms of the loans, including both maturity and contractual amortization; (2) adjusting projected cash flows for expected losses and prepayments, where appropriate; (3) developing a discount rate based on the relative risk of the cash flows, considering the loan type, liquidity risk, the maturity of the loans, servicing costs, and a required return on capital; and (4) discounting the projected cash flows to a present value, to arrive at the calculated value of the loans.

The methods used to estimate the fair values of loans are extremely sensitive to the assumptions and estimates used. While management attempted to use assumptions and estimates that best reflected the acquired loan portfolios and current market conditions, a greater degree of subjectivity is inherent in the values than in those determined in active markets.

Office properties and equipment, net. The fair value of land and buildings was estimated using current appraisals. Acquired

equipment was not material. Buildings are amortized over their estimated useful lives. Equipment is amortized or depreciated over their estimated useful lives usually ranging from three to fifteen years.

Goodwill. Goodwill is not amortized for book purposes: however, it is reviewed at least annually for impairment and is not deductible for tax purposes.

Core deposit intangibles. Core deposit intangibles ("CDI") are the measure of the value of non-maturity deposits in a business combination. The fair value of the CDI was calculated utilizing the cost savings approach, the expected cost savings attributable to the core deposits funding relative to an alternative source of funding, using a discounted cash flow present value methodology. Key inputs and assumptions utilized in the discounted cash flow present value methodology include core deposit balances and rates paid, the cost of an additional funding source, the aggregate life of deposits and truncation points, non-interest deposit costs, and the immediate deposit outflow assumption.

13

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

2.    Acquisitions (continued)

Deposits. The fair values of deposit liabilities with no stated maturity (i.e., non-interest bearing and interest-bearing demand deposit accounts, money market and savings and club accounts) are equal to the carrying amounts payable on demand. The fair value of certificates of deposit represent contractual cash flows, discounted to present value using interest rates currently offered on deposits with similar characteristics and remaining maturities.

Borrowings. The fair values of borrowings consisting of FHLB advances were estimated by discounting future cash flows using market discount rates for borrowings with similar characteristics, terms and remaining maturities.

3.        Earnings per Share

    Basic earnings per share ("EPS") is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. For purposes of calculating basic EPS, weighted average common shares outstanding excludes treasury stock, unallocated employee stock ownership plan shares that have not been committed for release and deferred compensation obligations required to be settled in shares of Company stock.

    Diluted EPS is computed using the same method as basic EPS and reflects the potential dilution which could occur if stock options and unvested shares were exercised and converted into common stock. The potentially diluted shares would then be included in the weighted average number of shares outstanding for the period using the treasury stock method.

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the three and nine months ended September 30, 2022 and 2021:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
	(Dollars in thousands, except per share data)
Net income	$	20,919	$	20,982	$	64,282	$	68,715
Shares:
Weighted average shares outstanding - basic	106,926,864		102,977,254		105,440,345		104,486,520
Effect of dilutive securities	607,634		—		599,895		—
Weighted average shares outstanding - diluted	107,534,498		102,977,254		106,040,240		104,486,520
Earnings per share:
Basic	$	0.20	$	0.20	$	0.61	$	0.66
Diluted	$	0.19	$	0.20	$	0.61	$	0.66

    During the three and nine months ended September 30, 2022, the average number of stock options which could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive totaled 121,935 and 89,990, respectively. During the three and nine months ended September 30, 2021, the average number of stock options which could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive totaled 3,731,901 and 3,741,138, respectively.

4.    Stock Repurchase Program

On September 10, 2020, the Company announced that its Board of Directors authorized the Company's second stock repurchase program for the purchase of up to 5,000,000 shares, or approximately 4.3%, of the Company's issued and outstanding common stock, commencing on September 15, 2020. On February 5, 2021, the Company completed the repurchases under the second stock repurchase program.

On February 1, 2021, the Company announced that its Board of Directors authorized the Company's third stock repurchase program to acquire up to 5,000,000 shares, or approximately 4.5%, of the Company's then issued and outstanding common stock, commencing upon completion of the Company's second stock repurchase program.

14

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

4.    Stock Repurchase Program (continued)

On December 6, 2021, the Company announced that its Board of Directors authorized the Company's fourth stock repurchase program to acquire up to 5,000,000 shares, or approximately 4.6%, of the Company's then issued and outstanding common stock, commencing upon the completion of the Company's third stock repurchase program.

During the three and nine months ended September 30, 2022, the Company repurchased 874,080 shares at a cost of approximately $18.6 million, or $21.27 per share, and 3,420,747 shares at a cost of approximately $71.8 million, or $20.98 per share, respectively, under these programs. During the three and nine months ended September 30, 2021, the Company repurchased 1,163,500 shares at a cost of approximately $20.5 million, or $17.66 per share, and 4,633,540 shares, at a cost of approximately $79.1 million, or $17.07 per share, respectively, under these programs. Repurchased shares are held as treasury stock and are available for general corporate purposes.

5.    Summary of Significant Accounting Policies

Accounting Pronouncement Adopted in 2022

In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("CECL"), further amended by ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. Topic 326 pertains to the measurement of credit losses on financial instruments. This update requires the measurement of all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better determine their credit loss estimates. This update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. This update was effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2019.

    The Company elected to defer the adoption of the CECL methodology until December 31, 2020 as permitted by the enacted Coronavirus Aid, Relief and Economic Security Act ("CARES Act"). In late December 2020, the Consolidated Appropriations Act, 2021 was enacted, and extended certain provisions of the CARES Act, which allowed the Company to extend the adoption of CECL until January 1, 2022. The Company elected to extend its adoption of CECL in accordance with this legislation, and adopted the above mentioned ASUs related to Financial Instruments -Credit Losses (Topic 326) using a modified retrospective approach.

The Company adopted ASU 2016-13 on January 1, 2022 for all financial assets measured at amortized cost and off balance sheet credit exposures. Results for the three months ended March 31, 2022 are presented under Accounting Standards Codification 326, Financial Instruments - Credit Losses, while prior period amounts continue to be reported with previously applicable GAAP and have not been restated. Effective January 1, 2022, the Company recorded a $12.1 million decrease in the allowance for credit losses on loans (previously allowance for loan losses), established a $353,000 allowance for credit losses on debt securities available for sale, and recorded a $5.5 million increase in the liability for off balance sheet credit exposures, which resulted in a total cumulative effect adjustment of $6.2 million, net of tax, and an increase to retained earnings.

Accounting Pronouncement Not Yet Adopted    

In March 2022, the FASB issued ASU 2022-02, Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures. ASU 2022-02 addresses areas identified by the FASB as part of its post-implementation review of the credit losses standard (ASU 2016-13) that introduced the CECL model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancing and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. For entities that have adopted ASU 2016-13, this ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements.

15

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

6.    Debt Securities Available for Sale

    Debt securities available for sale at September 30, 2022 and December 31, 2021 are summarized as follows:

	September 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
	(In thousands)
U.S. government and agency obligations	$	67,491	$	—	$	(4,210)	$	63,281
Mortgage-backed securities and collateralized mortgage obligations	1,399,397		122		(175,867)		1,223,652
Municipal obligations	3,698		—		(141)		3,557
Corporate debt securities	88,565		6		(7,340)		81,231
	$	1,559,151	$	128	$	(187,558)	$	1,371,721

	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
			(In thousands)
U.S. government and agency obligations	$	34,711	$	404	$	(236)	$	34,879
Mortgage-backed securities and collateralized mortgage obligations	1,553,491		14,141		(13,273)		1,554,359
Municipal obligations	4,159		20		—		4,179
Corporate debt securities	109,018		2,378		(966)		110,430
	$	1,701,379	$	16,943	$	(14,475)	$	1,703,847

    The amortized cost and fair value of debt securities available for sale at September 30, 2022, by contractual final maturity, is shown below. Expected maturities may differ from contractual maturities due to prepayment or early call options exercised by the issuer.

	September 30, 2022
	Amortized Cost		Fair Value
	(In thousands)
One year or less	$	919	$	901
More than one year to five years	68,971		65,791
More than five years to ten years	89,864		81,377
	$	159,754	$	148,069
Mortgage-backed securities and collateralized mortgage obligations	1,399,397		1,223,652
	$	1,559,151	$	1,371,721

16

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

6.    Debt Securities Available for Sale (continued)

Mortgage-backed securities and collateralized mortgage obligations totaling $1.4 billion at amortized cost, and $1.2 billion at fair value, are not classified by maturity in the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

     During the three months ended September 30, 2022, there were no proceeds from the sale of debt securities available for sale. During the nine months ended September 30, 2022, proceeds from the sales of debt securities available for sale totaled $126.8 million, resulting in gross gains of $210,000 and no gross losses. There were no calls and $915,000 in maturities of debt securities available for sale during three and nine months ended September 30, 2022.

During the three months ended September 30, 2021, proceeds from the sale of debt securities available for sale totaled $22.5 million, resulting in gross gains of $2.0 million and no gross losses. Proceeds from called debt securities available for sale totaled $9.0 million, resulting in no gross gains or losses. No debt securities available for sale matured during the quarter.

During the nine months ended September 30, 2021, proceeds from the sale of debt securities available for sale totaled $27.2 million, resulting in gross gains of $2.0 million and gross losses of $281,000. Proceeds from called debt securities available for sale totaled $14.0 million, resulting in no gross gains or losses. Proceeds from matured debt securities available for sale totaled $210,000.

Debt securities available for sale having a carrying value of $636.0 million and $587.7 million, at September 30, 2022 and December 31, 2021, respectively, were pledged as security for public funds on deposit at Columbia Bank as required and permitted by law, pledged for outstanding borrowings at the Federal Home Loan Bank, and pledged for potential borrowings at the Federal Reserve Bank of New York. Debt securities available for sale having a carrying value of $30.1 million and $44.1 million, at September 30, 2022 and December 31, 2021, respectively, were pledged by Freehold Bank for outstanding borrowings at the Federal Home Loan Bank, and for potential borrowings at the Federal Reserve Bank of New York.

    The following tables summarize the fair value and gross unrealized losses of those securities that reported an unrealized loss at September 30, 2022 and December 31, 2021 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:

	September 30, 2022
	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)
U.S. government and agency obligations	$	54,464	$	(3,104)	$	8,817	$	(1,106)	$	63,281	$	(4,210)
Mortgage-backed securities and collateralized mortgage obligations	696,364		(72,154)		504,328		(103,713)		1,200,692		(175,867)
Municipal obligations	3,557		(141)		—		—		3,557		(141)
Corporate debt securities	70,286		(6,300)		8,960		(1,040)		79,246		(7,340)
	$	824,671	$	(81,699)	$	522,105	$	(105,859)	$	1,346,776	$	(187,558)

17

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

6.    Debt Securities Available for Sale (continued)

	December 31, 2021
	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)
U.S. government and agency obligations	$	14,488	$	(236)	$	—	$	—	$	14,488	$	(236)
Mortgage-backed securities and collateralized mortgage obligations	820,746		(11,892)		62,407		(1,381)		883,153		(13,273)
Corporate debt securities	29,221		(671)		4,705		(295)		33,926		(966)
	$	864,455	$	(12,799)	$	67,112	$	(1,676)	$	931,567	$	(14,475)

The number of securities in an unrealized loss position at September 30, 2022 totaled 439, compared with 219 at December 31, 2021. All temporarily impaired securities were investment grade as of September 30, 2022 and December 31, 2021.

For available for sale securities, the Company assesses whether a loss is from credit or other factors and considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows is less than the amortized cost, a credit loss would be recorded through an allowance for credit losses, limited by the amount that the fair value is less than the amortized cost basis.    

The following table presents the activity in the allowance for credit losses on debt securities available for sale for the three and nine months ended September 30, 2022:

	Three Months Ended September 30, 2022		Nine Months Ended September 30, 2022
	(In thousands)
Allowance for Credit Losses:
Beginning balance	$	—	$	—
Impact of adopting ASU 2016-13 (CECL) effective January 1, 2022	—		490
(Reversal of ) credit losses	—		(490)
Balance at September 30, 2022	$	—	$	—

The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of debt securities available for sale. Accrued interest receivable on debt securities available for sale is reported as a component of accrued interest receivable on the Consolidated Statement of Financial Condition, which totaled $3.1 million at September 30, 2022, and is excluded from the estimate of credit losses.

18

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

7.    Debt Securities Held to Maturity

    Debt securities held to maturity at September 30, 2022 and December 31, 2021 are summarized as follows:

	September 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Allowance for Credit Losses		Fair Value
	(In thousands)
U.S. government and agency obligations	$	49,871	$	—	$	(7,587)	$	—	$	42,284
Mortgage-backed securities and collateralized mortgage obligations	375,206		—		(43,996)		—		331,210
	$	425,077	$	—	$	(51,583)	$	—	$	373,494

	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
	(In thousands)
U.S. government and agency obligations	$	44,870	$	—	$	(759)	$	44,111
Mortgage-backed securities and collateralized mortgage obligations	384,864		6,741		(927)		390,678
	$	429,734	$	6,741	$	(1,686)	$	434,789

The amortized cost and fair value of debt securities held to maturity at September 30, 2022, by contractual final maturity, is shown below. Expected maturities may differ from contractual maturities due to prepayment or early call options exercised by the issuer.

	September 30, 2022
	Amortized Cost		Fair Value
	(In thousands)
More than one year to five years	$	19,875	$	18,282
More than five years to ten years	19,996		16,479
More than ten years	10,000		7,523
	49,871		42,284
Mortgage-backed securities and collateralized mortgage obligations	375,206		331,210
	$	425,077	$	373,494

Mortgage-backed securities and collateralized mortgage obligations totaling $375.2 million at amortized cost, and $331.2 million at fair value at September 30, 2022, are not classified by maturity as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

    During the three and nine months ended September 30, 2022, there were no sales, calls or maturities of debt securities held to maturity.

    During the three and nine months ended September 30, 2021, there were no sales or maturities of debt securities held to maturity. During the three months ended September 30, 2021 there were no calls of debt securities held to maturity. During the nine months ended September 30, 2021, proceeds from called debt securities held to maturity totaled $5.1 million, resulting in no gross gains or losses.

19

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

7.    Debt Securities Held to Maturity (continued)

Debt securities held to maturity having a carrying value of $230.9 million and $252.4 million, at September 30, 2022 and December 31, 2021, respectively, were pledged as security for public funds on deposit at Columbia Bank as required and permitted by law, pledged for outstanding borrowings at the Federal Home Loan Bank, and pledged for potential borrowings at the Federal Reserve Bank of New York.

The following tables summarize the fair value and gross unrealized losses of those securities that reported an unrealized loss at September 30, 2022 and December 31, 2021 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:

	September 30, 2022
	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)
U.S. government and agency obligations	$	4,967	$	(32)	$	37,316	$	(7,555)	$	42,283	$	(7,587)
Mortgage-backed securities and collateralized mortgage obligations	322,117		(41,399)		9,093		(2,597)		331,210		(43,996)
	$	327,084	$	(41,431)	$	46,409	$	(10,152)	$	373,493	$	(51,583)

	December 31, 2021
	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)
U.S. government and agency obligations	$	44,111	$	(759)	$	—	$	—	$	44,111	$	(759)
Mortgage-backed securities and collateralized mortgage obligations	79,036		(927)		—		—		79,036		(927)
	$	123,147	$	(1,686)	$	—	$	—	$	123,147	$	(1,686)

    The number of securities in an unrealized loss position at September 30, 2022 totaled 117, compared with 25 at December 31, 2021. All temporarily impaired securities were investment grade as of September 30, 2022 and December 31, 2021.

For held to maturity securities, management measures expected credit losses on a collective basis by major security type. All of the mortgage-backed securities are issued by U.S. government agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses and, therefore, the expectation of non-payment is zero and the Company is not required to estimate an allowance for credit losses on these securities under the CECL standard. All these securities reflect a credit quality rating of AAA by Moody's Investors Service.

The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of debt securities held to maturity. Accrued interest receivable on debt securities held to maturity is reported as a component of accrued interest receivable on the Consolidated Statement of Financial Condition, which totaled $820,000 at September 30, 2022, and is excluded from the estimate of credit losses.

20

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

8.    Equity Securities at Fair Value

    The Company has an equity securities portfolio which consists of stock in other financial institutions, a payment technology company, a community bank correspondent services company, preferred stock in U.S. Government agencies, and a community reinvestment act qualifying bond fund which are reported at fair value on the Company's Consolidated Statements of Financial Condition. The fair value of the equities portfolio at September 30, 2022 and December 31, 2021 was $3.5 million and $2.7 million, respectively.

    The Company recorded a net decrease in the fair value of equity securities of $264,000 and $443,000, during the three months ended September 30, 2022 and 2021, respectively, as a component of non-interest income. During the nine months ended September 30, 2022 and 2021, the Company recorded a net decrease in the fair value of equity securities of $332,000 and $1.8 million, respectively, as a component of non-interest income.

    During the three and nine months ended September 30, 2022, there were no sales of equity securities. During the three and nine months ended September 30, 2021, sales of equity securities totaled $1.3 million, resulting in gross gains of $344,000 and no gross losses.

9.    Loans Receivable and Allowance for Credit Losses

On January 1, 2022, the Company adopted CECL (ASC Topic 326), which replaced the historical incurred loss methodology with an expected loss methodology. The loan portfolio segmentation was expanded to seven portfolio segments taking into consideration common loan attributes and risk characteristics, as well as historical reporting metrics and data availability. Disclosures at and for the periods ended December 31, 2021 and September 30, 2021, are presented in accordance with the expanded segmentation adopted in conjunction with CECL, when appropriate. The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of loans receivable. Accrued interest receivable on loans receivable is reported as a component of accrued interest receivable on the Consolidated Statement of Financial Condition, which totaled $26.3 million at September 30, 2022, and is excluded from the estimate of credit losses.

The allowance for credit losses is a valuation account that reflects management’s evaluation of the current expected credit losses in the loan portfolio. The Company maintains the allowance for credit losses through provisions for credit losses that are charged to income. Charge-offs against the allowance for credit losses are taken on loans where management determines that the collection of loan principal and interest is unlikely. Recoveries made on loans that have been charged-off are credited to the allowance for credit losses.

Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience for both the Company and peers provides the basis for the estimation of expected credit losses, where observed credit losses are converted to probability of default rate through the use of segment-specific loss given default risk factors that convert default rates to loss severity based on industry-level, observed relationships between the two variables for each segment, primarily due to the nature of the underlying collateral. These risk factors were assessed for reasonableness against the Company’s own loss experience and adjusted in certain cases when the relationship between the Company’s historical default and loss severity deviate from that of the wider industry. The historical probability of default ("PD") curves, together with corresponding economic conditions, establish a quantitative relationship between economic conditions and loan performance through an economic cycle.

Using the historical relationship between economic conditions and loan performance, management’s expectation of future loan performance is incorporated using an externally developed economic forecast. This forecast is applied over a period that management has determined to be reasonable and supportable. Beyond the period over which management can develop or source a reasonable and supportable forecast, the model will revert to long-term average economic conditions using a straight-line, time-based methodology. The Company's current forecast period is six quarters, with a four quarter reversion period to historical average macroeconomic factors.

The allowance for credit losses is measured on a collective (pool) basis, with both a quantitative and qualitative analysis that is applied on a quarterly basis, when similar risk characteristics exist. The respective quantitative allowance for each segment is measured using an economic forecast, discounted cash flow modeling methodology in which distinct, segment-specific multi-variate regression models are applied to an external economic forecast. Under the discounted cash flows methodology, expected credit losses are estimated over the effective life of the loans by measuring the difference between the net present value of modeled cash flows and amortized cost basis. Contractual cash flows over the contractual life of the loans are the basis for modeled cash flows, adjusted for

21

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

9.    Loans Receivable and Allowance for Credit Losses (continued)

modeled defaults and expected prepayments and discounted at the loan-level effective interest rate. The contractual term excludes expected extensions, renewals, and modifications. After quantitative considerations, management applies additional qualitative adjustments so that the allowance for credit loss is reflective of the estimate of lifetime losses that exist in the loan portfolio at the balance sheet date.

Portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Management developed segments for estimating loss based on type of borrower and collateral, which is generally based upon federal call report segmentation. The segments have been combined or sub-segmented as needed to ensure loans of similar risk profiles are appropriately pooled.

The allowance for credit losses on loans individually evaluated for impairment is based upon loans that have been identified through the Company’s loan monitoring process. This process includes the review of delinquent, restructured, and charged-off loans.

    Management believes the primary risks inherent in the portfolio are a general decline in the economy, a decline in real estate market values, rising unemployment, and increases in interest rates in the absence of economic improvement. Any one or a combination of these events may adversely affect a borrower's ability to repay its loan, resulting in increased delinquencies and loan losses. Accordingly, the Company has recorded loan losses at a level which is estimated to represent the current risk in its loan portfolio. Management considers it important to maintain the ratio of the allowance for credit losses to total loans at an acceptable level considering the current composition of the loan portfolio.

    Loans receivable at September 30, 2022 and December 31, 2021 are summarized as follows:

	September 30,		December 31,
	2022		2021
	(In thousands)
Real estate loans:
One-to-four family	$	2,706,114	$	2,092,317
Multifamily	1,142,459		1,041,108
Commercial real estate	2,354,786		2,170,236
Construction	289,650		295,047
Commercial business loans	497,478		452,232
Consumer loans:
Home equity loans and advances	279,824		276,563
Other consumer loans	2,214		1,428
Total gross loans	7,272,525		6,328,931
Purchased credit-deteriorated ("PCD") loans	19,771		6,791
Net deferred loan costs, fees and purchased premiums and discounts	33,927		24,879
Loans receivable	$	7,326,223	$	6,360,601

    The Company had no loans held-for-sale at September 30, 2022 and December 31, 2021. During the three months ended September 30, 2022, the Company sold $1.8 million, $685,000, and $510,000 of one-to-four family real estate loans, SBA loans included in commercial business loans, and construction loans held-for-sale, respectively, resulting in gross gains of $63,000 and gross losses of $64,000. During the nine months ended September 30, 2022, the Company sold $2.4 million, $2.0 million, and $1.8 million, of one-to-four family real estate loans, SBA loans included in commercial business loans, and construction loans held-for-sale, respectively, resulting in gross gains of $173,000 and gross losses of $64,000.

During the three months ended September 30, 2021, the Company sold $1.8 million, $15.0 million, and $1.2 million of one-to-four family real estate loans and home equity loans, commercial real estate loans, and SBA loans held-for-sale included in commercial business loans, respectively, resulting in gross gains of $140,000 and no gross losses. During the nine months ended September 30, 2021, the Company sold $17.4 million, $19.1 million, $250.1 million, and $6.4 million of one-to-four family real estate loans and home equity loans, commercial real estate loans, commercial business and SBA loans, and construction loans held-for-sale, respectively, resulting in gross gains of $8.6 million and no gross losses.

22

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

9.    Loans Receivable and Allowance for Credit Losses (continued)

During the three and nine months ended September 30, 2022, no loans were purchased by the Company. During the three months ended September 30, 2021, the Company purchased $678,000 of one-to-four family real estate loans and $2.0 million of commercial real estate loans from third parties. During the nine months ended September 30, 2021, the Company purchased $678,000 of one-to-four family real estate loans and $73.6 million of commercial real estate loans from third parties.

At September 30, 2022 and December 31, 2021, commercial business loans included $2.2 million and $44.9 million, respectively, in SBA Payroll Protection Program ("PPP") loans and net deferred fees related to these loans totaling $44,000 and $1.2 million, respectively.

The Company has entered into guarantor swaps with Freddie Mac which results in improved liquidity. During the three and nine months ended September 30, 2022, and three months ended September 30, 2021, no loans were exchanged for Freddie Mac mortgage participation certificates. During the nine months ended September 30, 2021, the Company exchanged $99.6 million of loans for Freddie Mac mortgage participation certificates, resulting in gross gains of $2.3 million and no gross losses. The Company retained the servicing of these loans.

At September 30, 2022 and December 31, 2021, the carrying value of loans serviced by the Company for investors was $507.6 million and $519.5 million, respectively. These loans are not included in the Consolidated Statements of Financial Condition.

    The following tables summarize the aging of loans receivable by portfolio segment, including non-accrual loans and excluding PCD loans at September 30, 2022 and December 31, 2021:

	September 30, 2022
	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Non-accrual		Current		Total
	(In thousands)
Real estate loans:
One-to-four family	$	5,101	$	1,883	$	1,257	$	8,241	$	2,518	$	2,697,873	$	2,706,114
Multifamily	1,092		—		—		1,092		—		1,141,367		1,142,459
Commercial real estate	1,436		—		2,892		4,328		3,373		2,350,458		2,354,786
Construction	544		—		—		544		—		289,106		289,650
Commercial business loans	—		—		840		840		906		496,638		497,478
Consumer loans:
Home equity loans and advances	1,425		40		159		1,624		199		278,200		279,824
Other consumer loans	—		15		—		15		—		2,199		2,214
Total loans	$	9,598	$	1,938	$	5,148	$	16,684	$	6,996	$	7,255,841	$	7,272,525

23

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

9.    Loans Receivable and Allowance for Credit Losses (continued)

	December 31, 2021
	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Non-accrual		Current		Total
	(In thousands)
Real estate loans:
One-to-four family	$	3,131	$	1,976	$	373	$	5,480	$	1,416	$	2,086,837	$	2,092,317
Multifamily	—		—		—		—		—		1,041,108		1,041,108
Commercial real estate	2,189		—		1,561		3,750		1,561		2,166,486		2,170,236
Construction	—		—		—		—		—		295,047		295,047
Commercial business loans	412		—		203		615		761		451,617		452,232
Consumer loans:
Home equity loans and advances	108		53		81		242		201		276,321		276,563
Other consumer loans	—		4		—		4		—		1,424		1,428
Total loans	$	5,840	$	2,033	$	2,218	$	10,091	$	3,939	$	6,318,840	$	6,328,931

The Company considers a loan to be delinquent when we have not received a payment within 30 days of its contractual due date. Generally, a loan is designated as a non-accrual loan when the payment of interest is 90 days or more in arrears of its contractual due date. Non-accruing loans are returned to accrual status after there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible. The Company identifies loans that may need to be charged-off as a loss, by reviewing all delinquent loans, classified loans and other loans that management may have concerns about collectability. At September 30, 2022 and December 31, 2021, non-accrual loans totaled $7.0 million and $3.9 million, respectively. Included in non-accrual loans at September 30, 2022 and December 31, 2021, are 11 and 10 loans totaling $1.8 million and $1.7 million, respectively, which are less than 90 days in arrears.

At September 30, 2022 there were no loans past due 90 days or more still accruing interest. At December 31, 2021, there were no loans past due 90 days or more still accruing interest other than COVID-19 related loan forbearances and deferrals. In accordance with the CARES Act, these loans were not included in the aging of loans receivable by portfolio segment in the table above, and the Company continued to accrue interest income during the forbearance or deferral period.

Purchased credit impaired loans ("PCI") were loans acquired at a discount primarily due to deteriorated credit quality. These loans were initially recorded at fair value at acquisition, based upon the present value of expected future cash flows, with no related allowance for credit losses. In connection with the adoption of CECL on January 1, 2022, all loans considered PCI loans prior to that date were converted to purchase credit-deteriorated ("PCD") loans. Loans acquired in a business combination after January 1, 2022 are recorded in accordance with ASC Topic 326, which requires loans as of the acquisition date, that have experienced a more than insignificant deterioration in credit quality since origination to be classified as PCD loans.

At September 30, 2022 and December 31, 2021, PCD loans acquired in the Stewardship Financial Corporation ("Stewardship") acquisition totaled $2.0 million and $2.7 million, respectively, PCD loans acquired in the Roselle Bank acquisition totaled $184,000 and $184,000, respectively, and PCD loans acquired in the Freehold Bank acquisition totaled $3.7 million and $3.9 million, respectively. At September 30, 2022, PCD loans acquired in the RSI Bank acquisition totaled $13.9 million.

    We may obtain physical possession of real estate collateralizing a residential mortgage loan via foreclosure or through an in-substance repossession. At September 30, 2022 and December 31, 2021, the Company had no real estate owned. At September 30, 2022 we had no residential mortgage loans in the process of foreclosure. At December 31, 2021, we had one residential mortgage loan with a carrying value of $87,000 collateralized by residential real estate which was in the process of foreclosure.

24

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

9.    Loans Receivable and Allowance for Credit Losses (continued)

    The following tables summarize loans receivable (including PCD loans) and allowance for credit losses by portfolio segment and impairment method at September 30, 2022 and December 31, 2021:

	September 30, 2022
	One-to-Four Family		Multifamily		Commercial Real Estate		Construction		Commercial Business		Home Equity Loans and Advances		Other Consumer Loans		Total
	(In thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	213	$	3	$	98	$	—	$	10	$	6	$	—	$	330
Collectively evaluated for impairment	11,725		7,246		17,540		5,630		7,463		1,861		9		51,474
Loans acquired with deteriorated credit quality	8		—		61		10		7		1		—		87
Total	$	11,946	$	7,249	$	17,699	$	5,640	$	7,480	$	1,868	$	9	$	51,891
Total loans:
Individually evaluated for impairment	$	4,223	$	475	$	16,836	$	—	$	1,237	$	695	$	—	$	23,466
Collectively evaluated for impairment	2,701,891		1,141,984		2,337,950		289,650		496,241		279,129		2,214		7,249,059
Loans acquired with deteriorated credit quality	2,179		—		15,738		1,040		662		152		—		19,771
Total loans	$	2,708,293	$	1,142,459	$	2,370,524	$	290,690	$	498,140	$	279,976	$	2,214	$	7,292,296

25

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

9.    Loans Receivable and Allowance for Credit Losses (continued)

	December 31, 2021
	One-to-Four Family		Multifamily		Commercial Real Estate		Construction		Commercial Business		Home Equity Loans and Advances		Other Consumer Loans		Total
	(In thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	258	$	—	$	97	$	—	$	16	$	7	$	—	$	378
Collectively evaluated for impairment	8,540		7,741		16,017		8,943		20,198		866		6		62,311
Loans acquired with deteriorated credit quality	—		—		—		—		—		—		—		—
Total	$	8,798	$	7,741	$	16,114	$	8,943	$	20,214	$	873	$	6	$	62,689
Total loans:
Individually evaluated for impairment	$	5,184	$	762	$	15,830	$	—	$	1,806	$	705	$	—	$	24,287
Collectively evaluated for impairment	2,087,133		1,040,346		2,154,406		295,047		450,426		275,858		1,428		6,304,644
Loans acquired with deteriorated credit quality	431		—		5,426		—		934		—		—		6,791
Total loans	$	2,092,748	$	1,041,108	$	2,175,662	$	295,047	$	453,166	$	276,563	$	1,428	$	6,335,722

    Loan modifications to borrowers experiencing financial difficulties that are considered troubled debt restructurings ("TDRs") primarily involve the lowering of the monthly payments on such loans through either a reduction in interest rate below a market rate, an extension of the term of the loan without a corresponding adjustment to the risk premium reflected in the interest rate, or a combination of these two methods. These modifications generally do not result in the forgiveness of principal or accrued interest. In addition, the Company attempts to obtain additional collateral or guarantor support when modifying such loans. Non-accruing restructured loans may be returned to accrual status when there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible.

    Section 4013 of the CARES Act, “Temporary Relief from Troubled Debt Restructurings,” allowed banks to temporarily suspend certain requirements under GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. The Company elected to account for modifications on certain loans under Section 4013 of the CARES Act or, if the loan modification was not eligible under Section 4013, used the criteria in the COVID-19 guidance to determine when the loan modification was not a TDR in accordance with ASC 310-40. Guidance noted that modification or deferral programs mandated by the federal or a state government related to COVID-19 would not be in the scope of ASC 310-40, such as a state program that requires all institutions within that state to suspend mortgage payments for a specified period. These short-term loan modifications were not treated as a troubled debt restructuring during the short-term modification period if the loan was not in arrears at December 31, 2019. Furthermore, based on current evaluations, generally, we continued the accrual of interest on these loans during the short-term modification period. The Consolidated Appropriations Act, 2021, which was enacted in late December 2020, extended certain provisions of the CARES Act through January 1, 2022, including provisions permitting loan deferral extension requests to not be treated as troubled debt restructurings. Subsequent modifications to these loans are evaluated for troubled debt restructuring accounting treatment.

26

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

9.    Loans Receivable and Allowance for Credit Losses (continued)

The following tables present the number of loans modified as TDRs during the three and nine months ended September 30, 2022 and 2021, along with their balances immediately prior to the modification date and post-modification. Post-modification recorded investment represents the net book balance immediately following modification.

	For the Three Months Ended September 30,
	2022					2021
	No. of Loans	Pre-modification Recorded Investment		Post-modification Recorded Investment		No. of Loans	Pre-modification Recorded Investment		Post-modification Recorded Investment
	(Dollars in thousands)
Troubled Debt Restructurings
Real Estate loans:
One-to-four family	—	$	—	$	—	1	$	64	$	66
Total restructured loans	—	$	—	$	—	1	$	64	$	66

	For the Nine Months Ended September 30,
	2022					2021
	No. of Loans	Pre-modification Recorded Investment		Post-modification Recorded Investment		No. of Loans	Pre-modification Recorded Investment		Post-modification Recorded Investment
	(Dollars in thousands)
Troubled Debt Restructurings
Real Estate loans:
One-to-four family	—	$	—	$	—	2	$	285	$	388
Commercial	—	—		—		1	192		211
Consumer loans:
Home equity loans and advances	1	119		119		—	—		—
Total restructured loans	1	$	119	$	119	3	$	477	$	599

27

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

9.    Loans Receivable and Allowance for Credit Losses (continued)

The activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2022 and 2021 are as follows:

	For the Three Months Ended September 30,
	One-to-Four Family		Multifamily		Commercial Real Estate		Construction		Commercial Business		Home Equity Loans and Advances		Other Consumer Loans		Totals
	(In thousands)
2022
Balance at beginning of period	$	10,836	$	10,932	$	14,480	$	5,570	$	7,284	$	1,471	$	10	$	50,583
Provision for (reversal of) credit losses	1,394		(3,683)		3,219		70		120		385		11		1,516
Recoveries	—		—		—		—		76		18		—		94
Charge-offs	(284)		—		—		—		—		(6)		(12)		(302)
Balance at end of period	$	11,946	$	7,249	$	17,699	$	5,640	$	7,480	$	1,868	$	9	$	51,891
2021
Balance at beginning of period	$	17,108	$	8,442	$	17,814	$	9,160	$	15,898	$	1,471	$	5	$	69,898
Provision for (reversal of) credit losses	(2,218)		(146)		(171)		322		2,854		(165)		4		480
Recoveries	4		217		77		—		42		7		—		347
Charge-offs	(106)		—		—		—		(69)		(221)		(3)		(399)
Balance at end of period	$	14,788	$	8,513	$	17,720	$	9,482	$	18,725	$	1,092	$	6	$	70,326

28

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

9.    Loans Receivable and Allowance for Credit Losses (continued)

	For the Nine Months Ended September 30,
	One-to-Four Family		Multifamily		Commercial Real Estate		Construction		Commercial Business		Home Equity Loans and Advances		Other Consumer Loans		Totals
	(In thousands)
2022
Balance at beginning of period	$	8,798	$	7,741	$	16,114	$	8,943	$	20,214	$	873	$	6	$	62,689
Effect of adopting ASU No. 2016-13 ("CECL")	(2,308)		(2,030)		(4,227)		(2,346)		(5,302)		(229)		(1)		(16,443)
Initial allowance related to PCD loans	131		—		474		3		19		6		—		633
Provision for (reversal of) credit losses	5,364		1,538		5,338		(960)		(7,520)		1,225		19		5,004
Recoveries	338		—		—		—		131		26		—		495
Charge-offs	(377)		—		—		—		(62)		(33)		(15)		(487)
Balance at end of period	$	11,946	$	7,249	$	17,699	$	5,640	$	7,480	$	1,868	$	9	$	51,891
2021
Balance at beginning of period	$	13,586	$	8,897	$	21,784	$	11,271	$	17,384	$	1,748	$	6	$	74,676
Provision for (reversal of) credit losses	1,796		(305)		(4,812)		(1,790)		2,945		(400)		5		(2,561)
Recoveries	18		217		1,014		1		169		52		—		1,471
Charge-offs	(612)		(296)		(266)		—		(1,773)		(308)		(5)		(3,260)
Balance at end of period	$	14,788	$	8,513	$	17,720	$	9,482	$	18,725	$	1,092	$	6	$	70,326

29

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

9.    Loans Receivable and Allowance for Credit Losses (continued)

The following tables present loans individually evaluated for impairment by loan segment, excluding PCD loans, at September 30, 2022 and December 31, 2021:

	At September 30, 2022
	Recorded Investment		Unpaid Principal Balance		Specific Allowance
	(In thousands)
With no allowance recorded:
Real estate loans:
One-to-four family	$	1,319	$	1,667	$	—
Multifamily	62		65		—
Commercial real estate	14,924		15,612		—
Commercial business loans	156		412		—
Consumer loans:
Home equity loans and advances	236		328		—
	16,697		18,084		—
With a specific allowance recorded:
Real estate loans:
One-to-four family	2,904		2,922		213
Multifamily	413		413		3
Commercial real estate	1,912		1,915		98
Commercial business loans	1,081		1,081		10
Consumer loans:
Home equity loans and advances	459		459		6
	6,769		6,790		330
Total:
Real estate loans:
One-to-four family	4,223		4,589		213
Multifamily	475		478		3
Commercial real estate	16,836		17,527		98
Commercial business loans	1,237		1,493		10
Consumer loans:
Home equity loans and advances	695		787		6
Total loans	$	23,466	$	24,874	$	330

30

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

9.    Loans Receivable and Allowance for Credit Losses (continued)

	At December 31, 2021
	Recorded Investment		Unpaid Principal Balance		Specific Allowance
	(In thousands)
With no allowance recorded:
Real estate loans:
One-to-four family	$	1,882	$	2,421	$	—
Multifamily	762		765		—
Commercial real estate	13,861		14,586		—
Commercial business loans	573		573		—
Consumer loans:
Home equity loans and advances	202		308		—
	17,280		18,653		—
With a specific allowance recorded:
Real estate loans:
One-to-four family	3,302		3,321		258
Commercial real estate	1,969		1,971		97
Commercial business loans	1,233		1,233		16
Consumer loans:
Home equity loans and advances	503		503		7
	7,007		7,028		378
Total:
Real estate loans:
One-to-four family	5,184		5,742		258
Multifamily	762		765		—
Commercial real estate	15,830		16,557		97
Commercial business loans	1,806		1,806		16
Consumer loans:
Home equity loans and advances	705		811		7
	$	24,287	$	25,681	$	378

    Specific allocations of the allowance for credit losses attributable to impaired loans totaled $330,000 and $378,000 at September 30, 2022 and December 31, 2021, respectively. At September 30, 2022 and December 31, 2021, impaired loans for which there was no related allowance for credit losses totaled $16.7 million and $17.3 million, respectively.

    The recorded investment in TDRs totaled $20.1 million at September 30, 2022, of which two loans with an aggregate balance of $353,000 were 60-89 days past due. The remaining loans modified were current at the time of restructuring and have complied with the terms of their restructure agreement at September 30, 2022. The recorded investment in TDRs totaled $22.4 million at December 31, 2021, of which one loan with a balance of $36,000 was 30-59 days past due. The remaining loans modified were current at the time of restructuring and have complied with the terms of their restructure agreement at December 31, 2021.

31

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

9.    Loans Receivable and Allowance for Credit Losses (continued)

    The following tables present interest income recognized for loans individually evaluated for impairment, by loan segment, excluding PCD loans for the three and nine months ended September 30, 2022 and 2021:

	For the Three Months Ended September 30,
	2022				2021
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
Real estate loans:
One-to-four family	$	4,251	$	45	$	5,569	$	64
Multifamily	598		6		8,626		10
Commercial real estate	16,086		163		17,477		217
Commercial business loans	1,269		22		2,106		36
Consumer loans:
Home equity loans and advances	777		9		1,101		11
Total loans	$	22,981	$	245	$	34,879	$	338

	For the Nine Months Ended September 30,
	2022				2021
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
Real estate loans:
One-to-four family	$	4,640	$	146	$	5,923	$	229
Multifamily	675		28		11,246		359
Commercial real estate	16,254		568		17,000		329
Commercial business loans	1,447		66		2,226		106
Consumer loans:
Home equity loans and advances	787		29		1,257		32
Total loans	$	23,803	$	837	$	37,652	$	1,055

The Company utilizes an eight-point risk rating system to summarize its loan portfolio into categories with similar risk characteristics. Loans deemed to be “acceptable quality” are rated 1 through 4 (Pass), with a rating of 1 established for loans with minimal risk. Loans that are deemed to be of “questionable quality” are rated 5 (Special Mention) or 6 (Substandard). Loans with adverse classifications are rated 7 (Doubtful) or 8 (Loss). The risk ratings are also confirmed through periodic loan review examinations which are currently performed by both an independent third-party and the Company's credit risk review department. The Company requires an annual review be performed above certain dollar thresholds, depending on loan type, to help determine the appropriate risk ratings. Results from examinations are presented to the Audit Committee of the Board of Directors.

32

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

9.    Loans Receivable and Allowance for Credit Losses (continued)

The following table summarizes the Company's loans by year of origination and internally assigned credit risk rating, excluding PCD loans at September 30, 2022 and December 31, 2021:

	Loans by Year of Origination at September 30, 2022
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
	(In thousands)
One-to-Four Family
Pass	$	628,998	$	844,780	$	299,287	$	181,706	$	127,773	$	620,689	$	—	$	—	$	2,703,233
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		643		—		687		322		1,229		—		—		2,881
Total One-to-Four Family	628,998		845,423		299,287		182,393		128,095		621,918		—		—		2,706,114
Multifamily
Pass	177,878		306,208		184,752		208,321		43,451		217,307		—		—		1,137,917
Special mention	—		—		—		—		—		4,542		—		—		4,542
Substandard	—		—		—		—		—		—		—		—		—
Total Multifamily	177,878		306,208		184,752		208,321		43,451		221,849		—		—		1,142,459
Commercial Real Estate
Pass	303,030		398,505		179,623		263,603		233,911		906,137		—		—		2,284,809
Special mention	—		—		—		1,065		15,750		34,248		—		—		51,063
Substandard	—		481		1,286		1,607		—		15,540		—		—		18,914
Total Commercial Real Estate	303,030		398,986		180,909		266,275		249,661		955,925		—		—		2,354,786
Construction
Pass	103,263		107,388		31,126		14,216		6,313		27,344		—		—		289,650
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total Construction	$	103,263	$	107,388	$	31,126	$	14,216	$	6,313	$	27,344	$	—	$	—	$	289,650

33

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

9.    Loans Receivable and Allowance for Credit Losses (continued)

	Loans by Year of Origination at September 30, 2022
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
	(In thousands)
Commercial Business
Pass	$	47,082	$	35,305	$	34,044	$	25,527	$	27,075	$	39,171	$	274,439	$	—	$	482,643
Special mention	—		—		57		1,230		1,081		41		3,241		—		5,650
Substandard	—		355		63		207		2,688		348		5,524		—		9,185
Total Commercial Business	47,082		35,660		34,164		26,964		30,844		39,560		283,204		—		497,478
Home Equity Loans and Advances
Pass	21,064		22,599		15,021		13,668		12,226		92,482		102,070		442		279,572
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		20		196		36		—		252
Total Home Equity Loans and Advances	21,064		22,599		15,021		13,668		12,246		92,678		102,106		442		279,824
Other Consumer Loans
Pass	1,388		97		114		122		36		121		336		—		2,214
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total Other Consumer Loans	1,388		97		114		122		36		121		336		—		2,214
Total Loans	$	1,282,703	$	1,716,361	$	745,373	$	711,959	$	470,646	$	1,959,395	$	385,646	$	442	$	7,272,525

34

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

9.    Loans Receivable and Allowance for Credit Losses (continued)

	Loans by Year of Origination at December 31, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
	(In thousands)
One-to-Four Family
Pass	$	793,848	$	298,815	$	196,244	$	138,215	$	134,811	$	525,615	$	—	$	—	$	2,087,548
Special mention	—		—		—		—		—		203		—		—		203
Substandard	—		—		1,463		1,420		360		1,323		—		—		4,566
Total One-to-Four family	793,848		298,815		197,707		139,635		135,171		527,141		—		—		2,092,317
Multifamily
Pass	312,738		181,285		231,252		47,024		131,169		137,640		—		—		1,041,108
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total Multifamily	312,738		181,285		231,252		47,024		131,169		137,640		—		—		1,041,108
Commercial Real Estate
Pass	381,222		161,136		278,581		241,669		222,752		803,945		—		—		2,089,305
Special mention	—		—		1,303		16,070		1,885		34,788		—		—		54,046
Substandard	—		386		—		1,561		1,276		23,662		—		—		26,885
Total Commercial Real Estate	381,222		161,522		279,884		259,300		225,913		862,395		—		—		2,170,236
Construction
Pass	107,070		77,549		37,498		41,591		28,814		2,418		—		—		294,940
Special mention	—		—		107		—		—		—		—		—		107
Substandard	—		—		—		—		—		—		—		—		—
Total Construction	$	107,070	$	77,549	$	37,605	$	41,591	$	28,814	$	2,418	$	—	$	—	$	295,047

35

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

9.    Loans Receivable and Allowance for Credit Losses (continued)

	Loans by Year of Origination at December 31, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
	(In thousands)
Commercial Business
Pass	$	84,113	$	36,115	$	25,156	$	30,670	$	21,762	$	26,515	$	210,597	$	—	$	434,928
Special mention	246		15		1,729		1,369		18		46		3,291		—		6,714
Substandard	192		71		352		1,084		371		609		7,911		—		10,590
Total Commercial Business	84,551		36,201		27,237		33,123		22,151		27,170		221,799		—		452,232
Home Equity Loans and Advances
Pass	22,393		15,977		15,906		13,146		12,023		100,870		95,484		426		276,225
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		246		92		—		338
Total Home Equity Loans and Advances	22,393		15,977		15,906		13,146		12,023		101,116		95,576		426		276,563
Other Consumer Loans
Pass	659		58		284		60		9		5		353		—		1,428
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total Other Consumer Loans	659		58		284		60		9		5		353		—		1,428
Total Loans	$	1,702,481	$	771,407	$	789,875	$	533,879	$	555,250	$	1,657,885	$	317,728	$	426	$	6,328,931

36

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

9.    Loans Receivable and Allowance for Credit Losses (continued)

The Company is required to include unfunded commitments that are expected to be funded in the future within the allowance calculation, other than those that are unconditionally cancellable. To arrive at that reserve, the reserve percentage for each applicable segment is applied to the unused portion of the expected commitment balance and is multiplied by the expected funding rate. To determine the expected funding rate, the Company uses a historical utilization rate for each segment. The allowance for credit losses on off balance sheet exposures is reported in other liabilities in the Consolidated Statements of Financial Condition. The liability represents an estimate of expected credit losses arising from off balance sheet exposures such as unfunded commitments. At September 30, 2022, the balance of the allowance for credit losses on unfunded commitments, included in other liabilities, totaled $6.6 million. The Company recorded a reversal of provision for credit losses on unfunded commitments, included in other non-interest expense in the Consolidated Statements of Income, of $1.7 million and $1.6 million during the three and nine months ended September 30, 2022.

The following table presents the activity in the allowance for credit losses on off balance sheet exposures for the three and nine months ended September 30, 2022:

	Three Months Ended September 30, 2022		Nine Months Ended September 30, 2022
	(In thousands)
Allowance for Credit Losses:
Beginning balance	$	8,358	$	524
Impact of adopting ASU 2016-13 ("CECL") effective January 1, 2022	—		7,674
(Reversal of) provision for credit losses	(1,747)		(1,587)
Balance at September 30, 2022	$	6,611	$	6,611

10.    Leases

    The Company's leases real estate property for branches and office space. At September 30, 2022 and December 31, 2021, all of the Company's leases are classified as operating leases.

    The Company determines if an arrangement is a lease at inception. Topic 842 requires lessees to recognize a right-of-use asset and a lease liability, measured at the present value of the future minimum lease payments, at the lease commencement date. The calculated amount of the right-of-use asset and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of minimum lease payments.

    At September 30, 2022 and December 31, 2021, the weighted average remaining lease term for operating leases was 6.6 years and 7.0 years, respectively, and the weighted average discount rate used in the measurement of operating lease liabilities was 2.34% and 2.13%, respectively.

    The Company elected to account for the lease and non-lease components separately since such amounts are readily determinable under the Company's lease contracts. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are recognized as incurred. Variable lease payments include common area maintenance charges, real estate taxes, repairs and maintenance costs and utilities. Operating and variable lease expenses are recorded in occupancy expense in the Consolidated Statements of Income. During the three months ended September 30, 2022 and 2021, operating and variable lease expenses totaled approximately $668,000 and $504,000, respectively. During the nine months ended September 30, 2022 and 2021, operating and variable lease expenses totaled approximately $2.0 million and $1.7 million, respectively.

    There were no sale and leaseback transactions, leveraged leases or lease transactions with related parties during the three and nine months ended September 30, 2022 and 2021. At September 30, 2022, the Company had not entered into any leases which had not yet commenced.

37

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

10.    Leases (continued)

The following table summarizes lease payment obligations for each of the next five years and thereafter as follows:

	Lease Payment Obligations at
	September 30, 2022		December 31, 2021
	(In thousands)
One year or less	$	1,068	$	4,198
After one year to two years	4,288		3,950
After two years to three years	3,748		3,150
After three years to four years	3,079		2,479
After four years to five years	2,777		2,177
Thereafter	6,360		5,340
Total undiscounted cash flows	21,320		21,294
Discount on cash flows	(1,727)		(1,709)
Total lease liability	$	19,593	$	19,585

11.    Deposits

    Deposits at September 30, 2022 and December 31, 2021 are summarized as follows:

	September 30,		December 31,
	2022		2021
	(In thousands)
Non-interest-bearing demand	$	1,746,668	$	1,712,061
Interest-bearing demand	2,701,551		2,599,987
Money market accounts	712,900		657,156
Savings and club deposits	960,547		822,833
Certificates of deposit	1,943,227		1,778,179
Total deposits	$	8,064,893	$	7,570,216

Included in the above balance at December 31, 2021 are certificates of deposit obtained through brokers totaling $5.0 million that were acquired from Stewardship.

    The aggregate amount of certificates of deposit that meet or exceed $100,000 totaled approximately $1.1 billion and $932.4 million at September 30, 2022 and December 31, 2021, respectively. Interest expense on deposits for the three months ended September 30, 2022 and 2021 totaled $7.0 million and $6.7 million, respectively. Interest expense on deposits for the nine months ended September 30, 2022 and 2021 totaled $16.3 million and $23.4 million, respectively.

38

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

11.    Deposits (continued)

Scheduled maturities of certificates of deposit accounts at September 30, 2022 and December 31, 2021 are summarized as follows:

	September 30,		December 31,
	2022		2021
	(In thousands)
One year or less	$	1,032,732	$	1,087,631
After one year to two years	690,540		418,515
After two years to three years	116,000		143,950
After three years to four years	64,870		36,277
After four years	39,085		91,806
	$	1,943,227	$	1,778,179

12.    Stock Based Compensation

    At the Company's annual meeting of stockholders 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.

At September 30, 2022, there were 867,610 shares remaining available for future restricted stock awards and 2,128,741 shares remaining available for future stock option grants under the 2019 plan

     On March 22, 2021, 50,203 shares of restricted stock were awarded, with a grant date fair value of $17.86 per share. To fund the grant of restricted common stock, the Company reissued shares from treasury stock.

On March 2, 2022, 51,746 shares of restricted stock were awarded, with a grant date fair value of $21.79 per share. To fund the grant of restricted common stock, the Company issued shares from authorized but unissued shares.

    Restricted shares granted under the 2019 Plan generally vest in equal installments, over 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 were performance awards, which vested upon the satisfactory attainment of certain corporate financial targets during the three months ended September 30, 2022. 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 three months ended September 30, 2022 and 2021, approximately $901,000 and $1.4 million in expense was recognized in regard to these awards. The expected future compensation expense related to the 373,807 non-vested restricted shares outstanding at September 30, 2022 is approximately $5.8 million over a weighted average period of 2.1 years. During the nine months ended September 30, 2022 and 2021, approximately $3.4 million and $4.3 million in expense was recognized in regard to these awards.

39

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

12.    Stock Based Compensation (continued)

    The following is a summary of the Company's restricted stock activity during the three and nine months ended September 30, 2022 and 2021:

	Number of Restricted Shares	Weighted Average Grant Date Fair Value
Non-vested at January 1, 2022	1,054,335	$	15.78
Grants	51,746	21.79
Vested	(27,775)	17.86
Forfeited	(31,570)	16.91
Non-vested at March 31, 2022	1,046,736	$	15.98
Forfeited	(5,182)	18.34
Non-vested at June 30, 2022	1,041,554	$	15.97
Vested	(635,951)	15.62
Forfeited	(31,796)	15.87
Non-vested at September 30, 2022	373,807	$	16.58

	Number of Restricted Shares	Weighted Average Grant Date Fair Value
Non-vested at January 1, 2021	1,263,169	$	15.66
Grants	50,203	17.86
Forfeited	(13,846)	15.60
Non-vested at March 31, 2021	1,299,526	$	15.74
Forfeited	(128)	15.60
Non-vested at June 30, 2021	1,299,398	$	15.74
Vested	(163,882)	15.61
Forfeited	(29,882)	15.63
Non-vested at September 30, 2021	1,105,634	$	15.76

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. These stock options granted under the 2019 Plan on such date, vest in equal installments over the service period of three years beginning one year from the date of grant. These 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%.

On March 21, 2022, options to purchase 130,951 shares of Company common stock were awarded with a grant date fair value of $6.51 per option. These stock options granted under the 2019 Plan on such date, vest in equal installments over the service period of three years beginning one year from the date of grant. These stock options were granted at an exercise price of $21.79, 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 six years risk-free rate of return of 2.34%, volatility of 25.31%, and a dividend yield of 0.00%.

40

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

12.    Stock Based Compensation (continued)

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 became a public company and does not have sufficient historical price data, the expected volatility is based on the historical daily stock prices of Company stock plus 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 three months ended September 30, 2022 and 2021, approximately $778,000 and $822,000 in expense was recognized in regard to these awards. The expected future compensation expense related to the 1,400,750 non-vested options outstanding at September 30, 2022 is $5.0 million over a weighted average period of 1.7 years. During the nine months ended September 30, 2022 and 2021, approximately $2.3 million and $2.4 million in expense was recognized in regard to these awards.

    The following is a summary of the Company's option activity during the three and nine months ended September 30, 2022 and 2021:

	Number of Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding, January 1, 2022	3,637,542	$	15.78	7.6	$	18,654,905
Granted	130,951	21.79		—	—
Exercised	(62,859)	16.42		—	—
Expired	(1,412)	15.60		—	—
Forfeited	(61,961)	16.84		—	—
Outstanding, March 31, 2022	3,642,261	$	15.92	7.5	$	20,401,381
Exercised	(5,412)	15.60		—	—
Forfeited	(21,801)	17.78		—	—
Outstanding, June 30, 2022	3,615,048	$	15.91	7.2	$	21,335,939
Exercised	(87,025)	15.60		—	—
Expired	(8,704)	15.60		—	—
Forfeited	(153,309)	15.72		—	—
Outstanding, September 30, 2022	3,366,010	$	15.93	6.9	$	17,598,873
Options exercisable at September 30, 2022	1,965,260	$	15.67	6.4	$	10,732,855

41

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

12.    Stock Based Compensation (continued)

	Number of Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding, January 1, 2021	3,708,628	$	15.66	8.6	$	—
Granted	109,654	17.86		—	—
Expired	(2,029)	15.60		—	—
Forfeited	(30,118)	15.60		—	—
Outstanding, March 31, 2021	3,786,135	$	15.73	8.4	$	6,673,328
Exercised	(1,661)	15.60		—	$	—
Expired	(7,529)	15.60		—	—
Forfeited	(1,412)	15.60		—	—
Outstanding, June 30, 2021	3,775,533	$	15.73	8.1	$	5,700,258
Exercised	(26,861)	15.60		—	$	—
Expired	(353)	15.60		—
Forfeited	(58,287)	15.73		—	—
Outstanding, September 30, 2021	3,690,032	$	15.73	7.9	$	10,222,527
Options exercisable at September 30, 2021	1,411,976	$	15.64	7.8	$	4,036,196

    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.

    During the three and nine months ended September 30, 2022, the aggregate intrinsic value of options exercised was $507,000 and $896,000, respectively. During the three and nine months ended September 30, 2021, the aggregate intrinsic value of options exercised was $56,186 and $59,991, respectively.

13.    Components of Net Periodic Benefit Cost

    Pension Plan, Retirement Income Maintenance Plan (the "RIM Plan") Post-retirement Plan, and Split-Dollar Life Insurance Plans

    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, newly hired employees are not eligible to participate in the Pension Plan as the Pension Plan has been closed to new employees as of that date.

    The Company also maintains 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 Sections 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 employee's period of active service. Effective January 1, 2019, the Post-retirement Plan has been closed to new hires. The Company also provides life insurance benefits to eligible employees under an endorsement split-dollar life insurance program.

Through the acquisition of the RSI Entities, the Company acquired a funded pension plan, a non-funded post-retirement plan, and a split-dollar life insurance plan which are included in the tables below, based on benefit valuations as of the acquisition date.

42

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

13.    Components of Net Periodic Benefit Cost (continued)

Net periodic benefit (income) cost for the Pension Plan, RIM Plan, Post-retirement Plan and Split-Dollar Life Insurance plan benefits for the three and nine months ended September 30, 2022 and 2021, includes the following components:

	For the Three Months Ended September 30,
	Pension Plan				RIM Plan				Post-retirement Plan				Split-Dollar Life Insurance
	2022		2021		2022		2021		2022		2021		2022		2021		Affected Line Item in the Consolidated Statements of Income
	(In thousands)
Service cost	$	1,267	$	1,872	$	93	$	100	$	122	$	130	$	130	$	141	Compensation and employee benefits
Interest cost	2,799		1,902		97		86		185		141		158		125		Other non-interest expense
Expected return on plan assets	(7,183)		(6,661)		—		—		—		—		—		—		Other non-interest expense
Amortization:
Prior service cost	—		—		—		—		—		—		14		14		Other non-interest expense
Net loss	660		—		111		166		78		153		151		191		Other non-interest expense
Net periodic (income) benefit cost	$	(2,457)	$	(2,887)	$	301	$	352	$	385	$	424	$	453	$	471

	For the Nine Months Ended September 30,
	Pension Plan				RIM Plan				Post-retirement Plan				Split-Dollar Life Insurance
	2022		2021		2022		2021		2022		2021		2022		2021		Affected Line Item in the Consolidated Statements of Income
	(In thousands)
Service cost	$	5,199	$	6,172	$	279	$	300	$	319	$	390	$	383	$	423	Compensation and employee benefits
Interest cost	6,911		5,414		291		258		508		423		453		375		Other non-interest expense
Expected return on plan assets	(22,375)		(19,297)		—		—		—		—		—		—		Other non-interest expense
Amortization:
Prior service cost	—		—		—		—		—		—		42		42		Other non-interest expense
Net loss	660		2,000		333		498		234		459		453		573		Other non-interest expense
Net periodic (income) benefit cost	$	(9,605)	$	(5,711)	$	903	$	1,056	$	1,061	$	1,272	$	1,331	$	1,413

For the three and nine months ended September 30, 2022, Columbia Bank made a $10.0 million contribution to the Pension Plan. The net periodic (income) cost for pension benefits, other post-retirement and split-dollar life insurance benefits for the three and nine months ended September 30, 2022, was calculated using the most recent available benefit valuations.

43

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

13.    Components of Net Periodic Benefit Cost (continued)

Through the acquisition of the Roselle Entities, the Company acquired a non-contributory defined benefit supplemental executive retirement plan with the only participant being a former president of Roselle Bank. For the three and nine months ended September 30, 2022 and 2021, the Company recorded a net periodic benefit cost of $3,000 and $9,000, and $2,000 and $6,000 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 three and nine months ended September 30, 2022, the Company recorded a net periodic benefit cost of $2,000 and $6,000, respectively, in connection with this plan.

In addition, through the acquisition of the RSI Entities, the Company acquired a non-contributory defined benefit supplemental executive retirement plan with the only participant being a former president of RSI Bank. For the three and nine months ended September 30, 2022, the Company recorded a net periodic benefit cost of $16,000 and $27,000, respectively, in connection with this plan.

14.    Fair Value Measurements

    The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The determination of fair values of financial instruments often requires the use of estimates. Where quoted market values in an active market are not readily available, the Company utilizes various valuation techniques to estimate fair value.

    Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

Level 1: Unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access on the measurement date.

Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar instruments in markets that are active or not active, or inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.

Level 3: Prices or valuation techniques that require unobservable inputs that are both significant to the fair value measurement and unobservable (i.e., supported by minimal or no market activity). Valuation techniques include the use of option pricing models, discounted cash flow models and similar techniques.

    A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

    The methods described below were used to measure fair value of financial instruments as reflected in the tables below on a recurring basis at September 30, 2022 and December 31, 2021.

44

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

14.    Fair Value Measurements (continued)

Debt Securities Available for Sale, at Fair Value

    For debt securities available for sale, fair value was estimated using a market approach. The majority of these securities are fixed income instruments that are not quoted on an exchange, but are traded in active markets. Prices for these instruments are obtained through third-party data service providers or dealer market participants with which the Company has historically transacted both purchases and sales of securities. Prices obtained from these sources include market quotations, matrix pricing and discounted cash flow pricing. Matrix pricing, a Level 2 input, is a mathematical technique used principally to value certain securities to a benchmark or to comparable securities. The Company evaluates the quality of Level 2 matrix pricing through comparison to similar assets with greater liquidity and evaluation of projected cash flows. Discounted cash flows, a Level 3 input, is estimated by discounting the expected future cash flows using the current rates for securities with similar credit ratings and similar remaining maturities. As the Company is responsible for the determination of fair value, it performs quarterly analysis on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Company compares the prices received from the pricing service to a secondary pricing source. Additionally, the Company compares changes in the reported market values and returns to relevant market indices to assess the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has not historically resulted in an adjustment in the prices obtained from the pricing service. The Company may hold debt instruments issued by the U.S. government and U.S. government-sponsored agencies that are traded in active markets with readily accessible quoted market prices that are considered Level 1 inputs. The Company classifies the estimated fair value of its loan portfolio as Level 3.

Equity Securities, at Fair Value

    The Company holds equity securities that are traded in active markets with readily accessible quoted market prices that are considered Level 1 inputs. A trust preferred security that is not traded in an active market and Federal Home Loan Mortgage Corporation ("FHLMC") and Federal National Mortgage Association ("FNMA") preferred stock are considered Level 2 instruments. In addition, Level 2 instruments include Atlantic Community Bankers Bank ("ACCB") stock, which is based on redemption at par value and can only be sold to the issuing ACBB or another institution that holds ACBB stock.

Derivatives

    The Company records all derivatives included in other assets and liabilities on the Consolidated Statements of Financial Condition at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. See note 16 for disclosures related to the accounting treatment for derivatives.

    The fair value of the Company's derivatives is determined using discounted cash flow analysis using observable market-based inputs, which are considered Level 2 inputs.

45

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

14.    Fair Value Measurements (continued)

    The following tables present the assets and liabilities reported on the Consolidated Statements of Financial Condition at their fair values at September 30, 2022 and December 31, 2021, by level within the fair value hierarchy:

	September 30, 2022
			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)
Debt securities available for sale:
U.S. government and agency obligations	$	63,281	$	54,771	$	8,510	$	—
Mortgage-backed securities and collateralized mortgage obligations	1,223,652		—		1,223,652		—
Municipal obligations	3,557		—		887		2,670
Corporate debt securities	81,231		—		71,532		9,699
Total debt securities available for sale	1,371,721		54,771		1,304,581		12,369
Equity securities	3,453		3,115		338		—
Derivative assets	19,897		—		19,897		—
	$	1,395,071	$	57,886	$	1,324,816	$	12,369
Derivative liabilities	19,511		$	—	$	19,511	$	—

	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)
Debt securities available for sale:
U.S. government and agency obligations	$	34,879	$	34,879	$	—	$	—
Mortgage-backed securities and collateralized mortgage obligations	1,554,359		—		1,554,359		—
Municipal obligations	4,179		—		4,179		—
Corporate debt securities	110,430		—		110,430		—
Total debt securities available for sale	1,703,847		34,879		1,668,968		—
Equity securities	2,710		2,364		346
Derivative assets	9,492		—		9,492		—
	$	1,716,049	$	37,243	$	1,678,806	$	—
Derivative liabilities	$	17,366	$	—	$	17,366	$	—

46

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

14.    Fair Value Measurements (continued)

The table below provides activity of assets reported as Level 3 for the period ended September 30, 2022:

	Significant Unobservable Inputs (Level 3)
	(In thousands)
Debt securities available for sale:
Balance of recurring Level 3 assets -December 31, 2021	$	—
Transfers into Level 3 assets	13,539
Balance of recurring Level 3 assets - June 30, 2022	13,539
Maturity of Level 3 asset	(914)
Change in fair value of Level 3 assets	(256)
Balance of recurring Level 3 assets - September 30, 2022	$	12,369

The fair value of investments placed in Level 3 is estimated by discounting the expected future cash flows using reasonably available current rates for comparable new issue securities with similar structure, including original maturity, call date, and assumptions about risk. Discounted cash flow estimated valuations are subsequently validated against comparable structures as an approximation of value.

Expected cash flows were projected based on contractual cash flows. Two private placement corporate debt securities classified as available for sale and four private placement municipal obligations classified as available for sale were transferred from Level 2 to Level 3 during the nine months ended September 30, 2022. There were no transfers to Level 3 assets during the three months ended September 30, 2022.

Private placement debt security cash flows were discounted to a market yield of 8.00% (weighted average is 8.00%), and the cash flows for private placement municipal obligations were discounted to a market yield ranging from 3.02% to 3.05% (weighted average is 3.04%).

The period end valuations were support by an analysis prepared by an independent third party market participant and approved by management.

There were no Level 3 assets measured at fair value on a recurring basis at December 31, 2021.

Assets Measured at Fair Value on a Non-Recurring Basis

    The valuation techniques described below were used to estimate fair value of financial instruments measured on a non-recurring basis at September 30, 2022 and December 31, 2021.

Impaired Loans

    Loans which meet certain criteria are evaluated individually for impairment. Loan impairment is measured based on the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the loan's observable market price or the fair value of the collateral if the loan is collateral dependent. For loans measured for impairment based on the fair value of the underlying collateral, fair value was estimated using a market approach. The Company measures the fair value of collateral underlying impaired loans primarily through obtaining independent appraisals that rely upon quoted market prices for similar assets in active markets. These appraisals include adjustments, on an individual case-by-case basis, to comparable assets based on the appraisers’ market knowledge and experience, as well as adjustments for estimated costs to sell between 6.0% and 8.0%. The Company classifies these loans as Level 3 within the fair value hierarchy.

47

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

14.    Fair Value Measurements (continued)

Mortgage Servicing Rights, Net ("MSR's")

    Mortgage servicing rights are carried at the lower of cost or estimated fair value. The estimated fair value of MSRs is obtained through an analysis of future cash flows, incorporating assumptions that market participants would use in determining fair value including market discount rates, prepayments speeds, servicing income, servicing costs, default rates and other market driven data, including the market's perception of future interest rate movements. The prepayment speed and the discount rate are considered two of the most significant inputs in the model. A significant degree of judgment is involved in valuing the mortgage servicing rights using Level 3 inputs. The use of different assumptions could have a significant effect on this fair value estimate.

The following tables present the assets and liabilities reported on the Consolidated Statements of Financial Condition at their fair values on a non-recurring basis at September 30, 2022 and December 31, 2021, by level within the fair value hierarchy:

	September 30, 2022
			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)
Mortgage servicing rights	$	2,309	$	—	$	—	$	2,309
	$	2,309	$	—	$	—	$	2,309

	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)
Impaired loans	$	1,213	$	—	$	—	$	1,213
Mortgage servicing rights	1,906		—		—		1,906
	$	3,119	$	—	$	—	$	3,119

The following table presents information for Level 3 assets measured at fair value on a non-recurring basis at September 30, 2022 and December 31, 2021:

	September 30, 2022
	Fair Value		Valuation Methodology	Unobservable Inputs	Range of Inputs	Weighted Average
	(Dollars in thousands)
Mortgage servicing rights	$	2,309	Discounted cash flow	Prepayment speeds and discount rates (1)	4.2% - 21.1%	6.9	%

48

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

14.    Fair Value Measurements (continued)

	December 31, 2021
	Fair Value		Valuation Methodology	Unobservable Inputs	Range of Inputs		Weighted Average
	(Dollars in thousands)
Impaired loans	$	1,213	Other	Contracted sales price of collateral	—	%	—	%
Mortgage servicing rights	$	1,906	Discounted cash flow	Prepayment speeds and discount rates (2)	7.5% - 24.9%		12.7	%
(1) Value of SBA servicing rights based on a discount rate of 13.25%.
(2) Value of SBA servicing rights based on a discount rate of 10.25%.

Other Fair Value Disclosures

    The Company is required to disclose estimated fair value of financial instruments, both assets and liabilities on and off the balance sheet, for which it is practicable to estimate fair value. A description of the valuation methodologies used for those assets and liabilities not recorded at fair value on a recurring or non-recurring basis are set forth below.

Cash and Cash Equivalents

    For cash and due from banks, federal funds sold and short-term investments, the carrying amount approximates fair value due to their nature and short-term maturities.

Debt Securities Held to Maturity

    For debt securities held to maturity, fair value was estimated using a market approach. The majority of the Company’s securities are fixed income instruments that are not quoted on an exchange, but are traded in active markets. Prices for these instruments are obtained through third-party data service providers or dealer market participants with which the Company has historically transacted both purchases and sales of securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing, a Level 2 input, is a mathematical technique used principally to value certain securities to a benchmark or to comparable securities. The Company evaluates the quality of Level 2 matrix pricing through comparison to similar assets with greater liquidity and evaluation of projected cash flows. As the Company is responsible for the determination of fair value, it performs quarterly analysis on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Company compares the prices received from the pricing service to a secondary pricing source. Additionally, the Company compares changes in the reported market values and returns to relevant market indices to assess the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has not historically resulted in an adjustment in the prices obtained from the pricing service. The Company also holds debt instruments issued by the U.S. government and U.S. government-sponsored agencies that are traded in active markets with readily accessible quoted market prices that are considered Level 1 inputs within the fair value hierarchy.

Federal Home Loan Bank Stock ("FHLB")

    The fair value of FHLB stock is based on redemption at par value and can only be sold to the issuing FHLB, to other FHLBs, or to other member banks. As such, the Company's FHLB stock is recorded at cost, or par value, and is evaluated for impairment each reporting period by considering the ultimate recoverability of the investment rather than temporary declines in value. The Company classifies the estimated fair value as Level 2 within the fair value hierarchy.

49

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

14.    Fair Value Measurements (continued)

Loans Receivable

    Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial mortgage, residential mortgage, commercial, construction, and consumer and other. Each loan category is further segmented into fixed and adjustable rate interest terms and into performing and non-performing categories.

    The fair value of performing loans was estimated using a combination of techniques, including a discounted cash flow model that utilizes a discount rate that reflects the Company's current pricing for loans with similar characteristics and remaining maturity, adjusted by an amount for estimated credit losses inherent in the portfolio at the balance sheet date. The rates take into account the expected yield curve, as well as an adjustment for prepayment risk, when applicable. The Company classifies the estimated fair value of its loan portfolio as Level 3.

    The fair value for significant non-performing loans was based on recent external appraisals of collateral securing such loans, adjusted for the timing of anticipated cash flows. The Company classifies the estimated fair value of its non-performing loan portfolio as Level 3.

Deposits

    The fair value of deposits with no stated maturity, such as demand, money market, and savings and club deposits are payable on demand at each reporting date and classified as Level 2. The estimated fair value of certificates of deposit was based on the discounted value of contractual cash flows. The discount rate was estimated using the Company’s current rates offered for deposits with similar remaining maturities. The Company classifies the estimated fair value of its certificates of deposit portfolio as Level 2.

Borrowings

    The fair value of borrowings was estimated by discounting future cash flows using rates available for debt with similar terms and maturities and is classified by the Company as Level 2 within the fair value hierarchy.

Commitments to Extend Credit and Letters of Credit

    The fair value of commitments to extend credit and letters of credit was estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counter-parties. For fixed rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value estimates of commitments to extend credit and letters of credit are deemed immaterial.

50

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

14.    Fair Value Measurements (continued)

    The following tables present the assets and liabilities reported on the Consolidated Statements of Financial Condition at their fair values at September 30, 2022 and December 31, 2021:

	September 30, 2022
			Fair Value Measurements
	Carrying Value		Total 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)
Financial assets:
Cash and cash equivalents	$	102,048	$	102,048	$	102,048	$	—	$	—
Debt securities available for sale	1,371,721		1,371,721		54,771		1,304,581		12,369
Debt securities held to maturity	425,077		373,494		—		373,494		—
Equity securities	3,453		3,453		3,115		338		—
Federal Home Loan Bank stock	37,726		37,726		—		37,726		—
Loans receivable, net	7,274,332		6,441,458		—		—		6,441,458
Derivative assets	19,897		19,897		—		19,897		—
Financial liabilities:
Deposits	$	8,064,893	$	8,001,656	$	—	$	8,001,656	$	—
Borrowings	674,018		667,380		—		667,380		—
Derivative liabilities	19,511		19,511		—		19,511		—

	December 31, 2021
			Fair Value Measurements
	Carrying Value		Total 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)
Financial assets:
Cash and cash equivalents	$	70,963	$	70,963	$	70,963	$	—	$	—
Debt securities available for sale	1,703,847		1,703,847		34,879		1,668,968		—
Debt securities held to maturity	429,734		434,789		—		434,789		—
Equity securities	2,710		2,710		2,364		346		—
Federal Home Loan Bank stock	23,141		23,141		—		23,141		—
Loans receivable, net	6,297,912		6,457,766		—		—		6,457,766
Derivative assets	9,492		9,492		—		9,492		—
Financial liabilities:
Deposits	$	7,570,216	$	7,564,210	$	—	$	7,564,210	$	—
Borrowings	377,309		378,810		—		378,810		—
Derivative liabilities	17,366		17,366		—		17,366		—

51

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

14.    Fair Value Measurements (continued)

Limitations

    Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because limited markets exist for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

    Fair value estimates are based on existing on and off balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial assets or liabilities include goodwill and intangibles assets, deferred tax assets, office properties and equipment, and bank-owned life insurance.

52

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

15.    Other Comprehensive Income (Loss)

    The following tables present the components of other comprehensive income (loss), both gross and net of tax, for the three and nine months ended September 30, 2022 and 2021:

	For the Three Months Ended September 30,
	2022						2021
	Before Tax		Tax Effect		After Tax		Before Tax		Tax Effect		After Tax
	(In thousands)
Components of other comprehensive income (loss):
Unrealized (loss) on debt securities available for sale:	$	(65,744)	$	18,589	$	(47,155)	$	(13,609)	$	3,666	$	(9,943)
Accretion of unrealized (loss) on debt securities reclassified as held to maturity	(19)		6		(13)		(3)		1		(2)
Reclassification adjustment for gain included in net income	—		—		—		2,296		(505)		1,791
	(65,763)		18,595		(47,168)		(11,316)		3,162		(8,154)
Derivatives:
Unrealized gain on swap contracts accounted for as cash flow hedges	1,639		(457)		1,182		2,035		(568)		1,467
	1,639		(457)		1,182		2,035		(568)		1,467
Employee benefit plans:
Amortization of prior service cost included in net income	(14)		3		(11)		(14)		4		(10)
Reclassification adjustment of actuarial net (loss) included in net income	(339)		95		(244)		(1,511)		422		(1,089)
Change in funded status of retirement obligations	1,148		(211)		937		3,050		(852)		2,198
	795		(113)		682		1,525		(426)		1,099
Total other comprehensive (loss)	$	(63,329)	$	18,025	$	(45,304)	$	(7,756)	$	2,168	$	(5,588)

53

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

15.    Other Comprehensive Income (Loss) (continued)

	For the Nine Months Ended September 30,
	2022						2021
	Before Tax		Tax Effect		After Tax		Before Tax		Tax Effect		After Tax
	(In thousands)
Components of other comprehensive income (loss):
Unrealized (loss) on debt securities available for sale:	$	(198,171)	$	55,528	$	(142,643)	$	(26,804)	$	4,615	$	(22,189)
Accretion of unrealized (loss) on debt securities reclassified as held to maturity	(28)		7		(21)		(24)		24		—
Reclassification adjustment for gain included in net income	210		(59)		151		2,015		(426)		1,589
	(197,989)		55,476		(142,513)		(24,813)		4,213		(20,600)
Derivatives:
Unrealized gain on swap contracts accounted for as cash flow hedges	7,171		(2,004)		5,167		9,182		(1,084)		8,098
	7,171		(2,004)		5,167		9,182		(1,084)		8,098
Employee benefit plans:
Amortization of prior service cost included in net income	(42)		11		(31)		(42)		11		(31)
Reclassification adjustment of actuarial net (loss) included in net income	(1,017)		285		(732)		(4,533)		1,266		(3,267)
Change in funded status of retirement obligations	(23,851)		6,730		(17,121)		40,541		(3,971)		36,570
	(24,910)		7,026		(17,884)		35,966		(2,694)		33,272
Total other comprehensive (loss) income	$	(215,728)	$	60,498	$	(155,230)	$	20,335	$	435	$	20,770

54

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

15.    Other Comprehensive Income (Loss) (continued)

    The following tables present the changes in the components of accumulated other comprehensive income (loss), net of tax, for the three and nine months ended September 30, 2022 and 2021:

	For the Three Months Ended September 30,
	2022								2021
	Unrealized (Losses) on Debt Securities Available for Sale		Unrealized (Losses) on Swaps		Employee Benefit Plans		Accumulated Other Comprehensive (Loss)		Unrealized Gains on Debt Securities Available for Sale		Unrealized (Losses) on Swaps		Employee Benefit Plans		Accumulated Other Comprehensive (Loss)
	(In thousands)
Balance at beginning of period	$	(93,701)	$	(932)	$	(61,212)	$	(155,845)	$	18,582	$	(10,225)	$	(51,624)	$	(43,267)
Current period changes in other comprehensive (loss) income	(47,168)		1,182		682		(45,304)		(8,154)		1,467		1,099		(5,588)
Total other comprehensive (loss) income	$	(140,869)	$	250	$	(60,530)	$	(201,149)	$	10,428	$	(8,758)	$	(50,525)	$	(48,855)

	For the Nine Months Ended September 30,
	2022								2021
	Unrealized (Losses) on Debt Securities Available for Sale		Unrealized (Losses) on Swaps		Employee Benefit Plans		Accumulated Other Comprehensive (Loss)		Unrealized Gains on Debt Securities Available for Sale		Unrealized (Losses) on Swaps		Employee Benefit Plans		Accumulated Other Comprehensive (Loss)
	(In thousands)
Balance at beginning of period	$	1,644	$	(4,917)	$	(42,646)	$	(45,919)	$	31,028	$	(16,856)	$	(83,797)	$	(69,625)
Current period changes in other comprehensive (loss) income	(142,513)		5,167		(17,884)		(155,230)		(20,600)		8,098		33,272		20,770
Total other comprehensive (loss) income	$	(140,869)	$	250	$	(60,530)	$	(201,149)	$	10,428	$	(8,758)	$	(50,525)	$	(48,855)

55

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

15.    Other Comprehensive Income (Loss) (continued)

    The following tables reflect amounts reclassified from accumulated other comprehensive income (loss) to the Consolidated Statements of Income and the affected line item in the statement where net income is presented for the three and nine months ended September 30, 2022 and 2021:

	Accumulated Other Comprehensive Income (Loss) Components
	For the Three Months Ended September 30,				Affected Line Items in the Consolidated Statements of Income
	2022		2021
	(In thousands)
Reclassification adjustment for gain included in net income	$	—	$	2,296	Gain on securities transactions
Reclassification adjustment of actuarial net (loss) included in net income	(339)		(1,511)		Other non-interest expense
Total before tax	(339)		785
Income tax benefit	95		(83)
Net of tax	$	(244)	$	702

	Accumulated Other Comprehensive Income (Loss) Components
	For the Nine Months Ended September 30,				Affected Line Items in the Consolidated Statements of Income
	2022		2021
	(In thousands)
Reclassification adjustment for gain included in net income	$	210	$	2,015	Gain on securities transactions
Reclassification adjustment of actuarial net (loss) included in net income	(1,017)		(4,533)		Other non-interest expense
Total before tax	(807)		(2,518)
Income tax benefit	226		840
Net of tax	$	(581)	$	(1,678)

56

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

16.    Derivatives and Hedging Activities

    The Company uses derivative financial instruments as components of its market risk management, principally to manage interest rate risk. Certain derivatives are entered into in connection with transactions with commercial customers. Derivatives are not used for speculative purposes. All derivatives are recognized as either assets or liabilities in the Consolidated Statements of Financial Condition, reported at fair value and presented on a gross basis. Until a derivative is settled, a favorable change in fair value results in an unrealized gain that is recognized as an asset, while an unfavorable change in fair value results in an unrealized loss that is recognized as a liability. 

The Company generally applies hedge accounting to its derivatives used for market risk management purposes. Hedge accounting is permitted only if specific criteria are met, including a requirement that a highly effective relationship exists between the derivative instrument and the hedged item, both at inception of the hedge and on an ongoing basis. Changes in the fair value of effective fair value hedges are recognized in current earnings (with the change in fair value of the hedged asset or liability also recognized in earnings). Changes in the fair value of effective cash flow hedges are recognized in other comprehensive income (loss) until earnings are affected by the variability in cash flows of the designated hedged item. Ineffective portions of hedge results are recognized in current earnings. Changes in the fair value of derivatives for which hedge accounting is not applied are recognized in current earnings.

The Company formally documents at inception all relationships between the derivative instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transactions. This process includes linking all derivatives that are designated as hedges to specific assets and liabilities, or to specific firm commitments. The Company also formally assesses, both at inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the fair values or cash flows of the hedged items. If it is determined that a derivative is not highly effective or has ceased to be a highly effective hedge, the Company would discontinue hedge accounting prospectively. Gains or losses resulting from the termination of a derivative accounted for as a cash flow hedge remain in other comprehensive income (loss) and is (accreted) amortized to earnings over the remaining period of the former hedging relationship.

Certain derivative financial instruments are offered to certain commercial banking customers to manage their risk of exposure and risk management strategies. These derivative instruments consist primarily of currency forward contracts and interest rate swap contracts. The risk associated with these transactions is mitigated by simultaneously entering into similar transactions having essentially offsetting terms with a third party. In addition, the Company executes interest rate swaps with third parties in order to hedge the interest rate risk of short-term FHLB advances.

    Currency Forward Contracts. At September 30, 2022 and December 31, 2021, the Company had no currency forward contracts in place with commercial banking customers.

    Interest Rate Swaps. At September 30, 2022 and December 31, 2021, the Company had 54 and 52 interest rate swaps in place with commercial banking customers executed by offsetting interest rate swaps with third parties, with aggregated notional amounts of $205.0 million and $183.4 million, respectively. These derivatives are not designated as hedges and are not speculative. These interest rate swaps do not meet hedge accounting requirements.

    At September 30, 2022 and December 31, 2021, the Company had 10 and 14 interest rate swaps with notional amounts of $140.0 million and $190.0 million, respectively, hedging certain FHLB advances. These interest rate swaps meet the cash flow hedge accounting requirements. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counter-party in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount.

At September 30, 2022, the Company had two interest rate swaps hedged against pools of floating rate commercial loans with notional amounts totaling $100.0 million. These swaps meet the cash flow hedge accounting requirements. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counter-party in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. At December 31, 2021, the Company had no interest rate swaps hedged against pools of floating rate commercial loans.

    For the three and nine months ended September 30, 2022 and 2021, the Company did not record any hedge ineffectiveness associated with these contracts.

57

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

16.    Derivatives and Hedging Activities (continued)

    The tables below present the fair value of the Company’s derivative financial instruments as well as their classification in the Consolidated Statements of Financial Condition at September 30, 2022 and December 31, 2021:

	September 30, 2022
	Asset Derivative			Liability Derivative
	Consolidated Statements of Financial Condition	Fair Value		Consolidated Statements of Financial Condition	Fair Value
		(In thousands)
Derivatives:
Interest rate swaps	Other Assets	$	19,897	Other Liabilities	$	19,511
Total derivative instruments		$	19,897		$	19,511

	December 31, 2021
	Asset Derivative			Liability Derivative
	Consolidated Statements of Financial Condition	Fair Value		Consolidated Statements of Financial Condition	Fair Value
		(In thousands)
Derivatives:
Interest rate swaps	Other Assets	$	9,492	Other Liabilities	$	17,366
Total derivative instruments		$	9,492		$	17,366

    For the three months ended September 30, 2022 and 2021, gains of $118,000 and losses of $12,000, respectively, were recorded for changes in fair value of interest rate swaps with third parties. For the nine months ended September 30, 2022 and 2021, gains of $594,000 and $189,000, respectively, were recorded for changes in fair value of interest rate swaps with third parties.

    At September 30, 2022 and December 31, 2021, accrued interest was $71,000 and $567,000.

    The Company has agreements with counterparties that contain a provision that if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default of its derivative obligations.

    At September 30, 2022, the termination value of derivatives in a net asset position, which includes accrued interest, was $315,000. The Company has collateral posting thresholds with certain of its derivative counterparties, and has posted collateral of $482,000 against its obligations under these agreements.

17.    Revenue Recognition

The Company's revenue includes net interest income on financial instruments and non-interest income. Most of the Company's revenue is not within the scope of Accounting Standards Codification Topic 606 which does not apply to revenue associated with financial instruments, including interest income on loans and securities, which comprise the majority of the Company's revenue. Revenue-generating activities that are within the scope of this guidance are components of non-interest income. These revenue streams can generally be classified as demand deposit account fees, title insurance fees, insurance agency income and other fees.

58

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

17.    Revenue Recognition (continued)

The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and nine months ended September 30, 2022 and 2021.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
	(In thousands)
Non-interest income
In-scope of Topic 606:
Demand deposit account fees	$	1,510	$	986	$	4,129	$	2,682
Title insurance fees	796		1,431		2,788		4,554
Insurance agency income	38		—		83		—
Other non-interest income	2,194		1,934		6,334		5,633
Total in-scope non-interest income	4,538		4,351		13,334		12,869
Total out-of-scope non-interest income	3,626		4,523		9,540		18,991
Total non-interest income	$	8,164	$	8,874	$	22,874	$	31,860

    Demand deposit account fees include monthly maintenance fees and service charges. These fees are generally derived as a result of either transaction-based or serviced-based services. The Company's performance obligation for these services is generally satisfied, and revenue recognized, at the time the transaction is completed or the service rendered. Fees for these services are generally received from the customer either at the time of the transaction or monthly.

Title insurance fees are generally recognized at the time the transaction closes or when the service is rendered.

RSI Insurance Agency, Inc. performs the function of an insurance intermediary, by introducing the policyholder and insurer for life and health, and property and casualty insurance, and is compensated by a commission fee for placement of an insurance policy. Commission and fees are generally recognized as of the effective date of the insurance policy. Commission revenues related to installment billings are recognized on the invoice date. Subsequent commission adjustments are recognized upon the receipt of notification from insurance companies concerning matters necessitating such adjustments.

Other non-interest income includes check printing fees, traveler's check fees, gift card fees, branch service fees, overdraft fees, account analysis fees, other deposit related fees, wealth management related fee income which includes annuity fees, brokerage commissions, and asset management fees. Wealth management related fee income represent fees earned from customers as consideration for asset management and investment advisory services provided by a third party. The Company's performance obligation is generally satisfied monthly and the resulting fees are recognized monthly based upon the month-end market value of the assets under management and the applicable fee rate. The Company does not earn performance-based incentives. The Company's performance obligation for these transaction-based services are generally satisfied, and related revenue recognized, at the time the transaction closes or when the service is rendered or a point in time when the service is completed.

Also included in other fees are debit card and ATM fees which are transaction-based. Debit card revenue is primarily comprised of interchange fees earned when a customer's Company card is processed through a card payment network. ATM fees are largely generated when a Company cardholder uses a non-Company ATM, or a non-Company cardholder uses a Company ATM. The Company's performance obligation for these services is satisfied when the service is rendered. Payment is generally received at time of transaction or monthly.

Out-of-scope non-interest income primarily consists of income from bank-owned life insurance, loan prepayment and servicing fees, net fees loan level swaps, gains and losses on the sale of loans and securities, credit card interchange income, changes in the fair value of equity securities, and proceeds from an insurance settlement. None of these revenue streams are subject to the requirements of Topic 606.

59

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

18.    Subsequent Events

    The Company has evaluated events subsequent to September 30, 2022 and through the financial statement issuance date of November 9, 2022, and concluded that no material events occurred that would require disclosure.

60

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

    Certain statements contained herein are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” "project," "intend," “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risk factors and uncertainties, including, but not limited to, those set forth in Item 1A of the Company's Annual Report on Form 10-K as supplemented by its Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, as well as its impact on fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, higher inflation and its impact on national and local economic conditions, the Company's ability to successfully implement its business strategy, acquisitions and the integration of acquired businesses, credit risk management, the effect of the COVID-19 pandemic (including its impact on our borrowers and their ability to repay their loans, and on the local and national economies), asset-liability management, the financial and securities markets, and the availability of and costs associated with sources of liquidity.

    The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date made. The Company also advises readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not have any obligation to update any forward-looking statements to reflect any subsequent events or circumstances after the date of this statement.

Comparison of Financial Condition at September 30, 2022 and December 31, 2021

Total assets increased $788.1 million, or 8.5%, to $10.0 billion at September 30, 2022 from $9.2 billion at December 31, 2021. The increase in total assets was primarily attributable to an increase in cash and cash equivalents of $31.1 million, an increase in loans receivable, net of $976.4 million, an increase in bank-owned life insurance of $15.7 million, an increase in goodwill and intangibles of $34.6 million, and an increase in other assets of $44.3 million, partially offset by a decrease in debt securities available for sale of $332.1 million.

Cash and cash equivalents increased $31.1 million, or 43.8%, to $102.0 million at September 30, 2022 from $71.0 million at December 31, 2021. The increase was primarily attributable to $140.8 million in cash and cash equivalents acquired in the RSI Bank acquisition, repayments on loans and mortgage-backed securities, and proceeds from the sale of $126.8 million of debt securities available for sale, partially offset by $142.2 million in purchases of debt securities available for sale, and $71.8 million in repurchases of common stock under our stock repurchase program.

Debt securities available for sale decreased $332.1 million, or 19.5%, to $1.4 billion at September 30, 2022 from $1.7 billion at December 31, 2021. The decrease was attributable to repayments on securities of $226.0 million, sales of securities of $126.8 million, and a decrease in the gross unrealized gain (loss) of $197.9 million, predominately due to rising interest rates, partially offset by purchases of securities of $142.2 million, primarily consisting of U.S government and agency obligations and mortgage-backed securities and $79.0 million of debt securities available for sale acquired due to the RSI Bank acquisition.

Loans receivable, net, increased $976.4 million, or 15.5%, to $7.3 billion at September 30, 2022 from $6.3 billion at December 31, 2021. One-to-four family real estate loans, multi-family real estate loans, commercial real estate loans, commercial business loans, and home equity loans and advances increased $613.8 million, $101.4 million, $184.6 million, $45.2 million, and $3.3 million, respectively, partially offset by a decrease in construction loans of $5.4 million. The Company acquired $335.5 million in loans from the RSI Bank acquisition during the second quarter of 2022. The allowance for credit losses for loans decreased $10.8 million to $51.9 million at September 30, 2022 from $62.7 million at December 31, 2021. A $16.8 million decrease in the allowance for credit losses for loans was recorded on January 1, 2022 upon adoption of the CECL standard. During the nine months ended September 30, 2022, the allowance for credit losses increased $7.1 million, primarily due to an increase in the outstanding balance of loans, including $1.9 million in allowance for credit losses recorded on loans acquired from RSI Bank. The September 30, 2022 methodology and impact of loss rates and qualitative factors remained consistent with those established upon initial adoption of the CECL standard.

Bank-owned life insurance increased $15.7 million, or 6.4%, to $263.2 million at September 30, 2022 from $247.5 million at December 31, 2021. The increase was mainly attributable to bank-owned life insurance of $13.0 million acquired in connection with the RSI Bank acquisition.

61

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Goodwill and intangibles increased $34.6 million, or 37.7%, to $126.3 million at September 30, 2022 from $91.7 million at December 31, 2021. The increase is attributable to $25.9 million in adjusted goodwill and $10.3 million in core deposit intangibles initially recorded due to the RSI Bank acquisition.

Other assets increased $44.3 million, or 17.7%, to $293.9 million at September 30, 2022 from $249.6 million at December 31, 2021. The increase in other assets consisted of an increase of $54.8 million in net deferred tax assets, an increase of $10.1 million in interest rate swap assets, and an increase of $5.2 million in a low income housing tax credit asset, partially offset by a decrease of $17.2 million in the collateral balance related to our swap program and a decrease of $5.8 million in the Company's pension balance.

Total liabilities increased $837.5 million, or 10.3%, to $9.0 billion at September 30, 2022 from $8.1 billion at December 31, 2021. The increase was primarily attributable to an increase in total deposits of $494.7 million, or 6.5%, an increase in borrowings of $296.7 million, or 78.6%, and an increase in accrued expenses and other liabilities of $38.1 million, or 23.7%. The increase in total deposits primarily consisted of increases in non-interest bearing demand deposits, interest-bearing demand deposits, money market accounts, savings and club deposits, and certificates of deposit of $34.6 million, $101.6 million, $55.7 million, $137.7 million, and $165.0 million respectively. These increases included $502.7 million in deposits assumed in connection with the RSI Bank acquisition. The increase in borrowings was primarily driven by a $67.7 million increase in FHLB overnight borrowings and a $229.2 million increase in FHLB term advances, of which $5.8 million were acquired due to the RSI Bank acquisition. The increase in accrued expenses and other liabilities primarily consisted of $10.6 million in accrued expenses and other liabilities related to the RSI Bank acquisition, a $5.2 million increase in a low income housing tax credit liability, a $8.5 million increase in outstanding checks, a $6.1 million increase in allowance for credit losses for unfunded commitments, and a $2.9 million increase in interest rate swap liabilities.

Total stockholders’ equity decreased $49.4 million, or 4.6%, to $1.0 billion at September 30, 2022 from $1.1 billion at December 31, 2021. The decrease in equity was primarily attributable to an increase of $198.2 million in unrealized losses on debt securities available for sale, net of taxes, included in other comprehensive income, and the repurchase of 3,420,747 shares of common stock totaling $71.8 million, or $20.98 per share, under our stock repurchase program, partially offset by net income of $64.3 million and an increase in paid-in capital primarily due to the issuance of 6,086,314 shares, totaling $102.7 million, of Company common stock to Columbia Bank MHC in connection with the RSI Bank acquisition.

Comparison of Results of Operations for the Three Months Ended September 30, 2022 and September 30, 2021

Net income of $20.9 million was recorded for the quarter ended September 30, 2022, a decrease of $63,000, or 0.3%, compared to net income of $21.0 million for the quarter ended September 30, 2021. The decrease in net income was primarily attributable to a $1.0 million increase in provision for credit losses, a $710,000 decrease in non-interest income, and a $10.8 million increase in non-interest expense, partially offset by an $11.8 million increase in net interest income and a $671,000 decrease in income tax expense.

Net interest income was $69.2 million for the quarter ended September 30, 2022, an increase of $11.8 million, or 20.6%, from $57.4 million for the quarter ended September 30, 2021. The increase in net interest income was primarily attributable to a $13.9 million increase in interest income, partially offset by a $2.1 million increase in interest expense on deposits and borrowings. The increase in interest income was primarily due to an increase in the average balance of interest-earning assets coupled with an increase in average yields due to the rise in interest rates in 2022. The increase in interest expense on deposits was driven by the repricing of existing deposits at higher rates as a result of the Federal Reserve raising rates in March 2022 by 25 basis points, subsequently followed by four additional rate hikes between May 2022 and September 2022 ranging from 50 to 75 basis points. The rise in interest rates initially had a more immediate impact on interest income from loans, securities and other interest-earning assets than interest expense on deposits, as the repricing on deposit products lags in relation to increases in market interest rates. The increase in interest expense on borrowings was driven by an increase in interest rates related to overnight and short-term borrowing transactions executed during the quarter ended September 30, 2022. Prepayment penalties, which are included in interest income on loans, totaled $639,000 for the quarter ended September 30, 2022, compared to $778,000 for the quarter ended September 30, 2021.

The average yield on loans for the quarter ended September 30, 2022 increased 14 basis points to 3.80%, as compared to 3.66% for the quarter ended September 30, 2021, as interest income was influenced by rising interest rates and loan growth. The average yield on securities for the quarter ended September 30, 2022 increased 34 basis points to 2.27%, as compared to 1.93% for the quarter ended September 30, 2021, as $10.2 million of higher yielding securities were purchased, and a number of adjustable rate securities tied to various indexes repriced higher during the quarter. The average yield on other interest-earning assets for the quarter

62

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ended September 30, 2022 increased 214 basis points to 2.68%, as compared to 0.54% for the quarter ended September 30, 2021, due to the rise in interest rates in 2022 noted above.

Total interest expense was $10.8 million for the quarter ended September 30, 2022, an increase of $2.1 million, or 23.8%, from $8.7 million for the quarter ended September 30, 2021. The increase in interest expense was primarily attributable to a 140 basis point increase in the average cost of borrowings, and increases in the average balance of deposits, partially offset by a 3 basis point decrease in the average cost of interest-bearing deposits and a lower average balance of borrowings. Interest on borrowings increased $1.8 million, or 87.7%, due to an increase in the cost of borrowings.

The Company's net interest margin for the quarter ended September 30, 2022 increased 34 basis points to 3.01%, when compared to 2.67% for the quarter ended September 30, 2021. The weighted average yield on interest-earning assets increased 39 basis points to 3.47% for the quarter ended September 30, 2022 as compared to 3.08% for the quarter ended September 30, 2021. The average cost of interest-bearing liabilities increased 8 basis points to 0.62% for the quarter ended September 30, 2022 as compared to 0.54% for the quarter ended September 30, 2021. The increase in yields for the quarter ended September 30, 2022, was due to the impact of the rise in interest rates during the quarter. The net interest margin increased for the quarter ended September 30, 2022, as the repricing of interest-bearing deposits initially lags in relation to the repricing of yields on interest-earning assets in a rising rate environment.

The provision for credit losses for the quarter ended September 30, 2022 was $1.5 million, an increase of $1.0 million, from $480,000 for the quarter ended September 30, 2021. The increase in provision for credit losses during the quarter was primarily attributable to an increase in the balances of loans and the evaluation of current and projected economic conditions.

Non-interest income was $8.2 million for the quarter ended September 30, 2022, a decrease of $710,000, or 8.0%, from $8.9 million for the quarter ended September 30, 2021. The decrease was primarily attributable to a decrease in income from the gain on securities transactions of $2.3 million and a decrease in title insurance fees of $635,000, partially offset by an increase in demand deposit fees of $524,000, an increase in loan fees and service charges of $588,000 and an increase in other non-interest income of $942,000, mainly due to an insurance settlement.

Non-interest expense was $47.8 million for the quarter ended September 30, 2022, an increase of $10.8 million, or 29.1%, from $37.1 million for the quarter ended September 30, 2021. The increase was primarily attributable to an increase in compensation and employee benefits expense of $7.0 million and an increase in merger-related expenses of $1.1 million. The increase in compensation and employee benefits expense was due to an increase in staff levels and related personnel benefit costs, mainly due to the acquisitions of Freehold Bank in December 2021 and RSI Bank in May 2022. The increase in merger-related expenses was primarily related to the acquisition of RSI Bank.

Income tax expense was $7.0 million for the quarter ended September 30, 2022, a decrease of $671,000, as compared to $7.7 million for the quarter ended September 30, 2021, mainly due to a decrease in pre-tax income, and to a lesser extent, a decrease in the Company's effective tax rate. The Company's effective tax rate was 25.2% and 26.9% for the quarters ended September 30, 2022 and 2021, respectively.

Comparison of Results of Operations for the Nine Months Ended September 30, 2022 and September 30, 2021

Net income of $64.3 million was recorded for the nine months ended September 30, 2022, a decrease of $4.4 million, or 6.5%, compared to net income of $68.7 million for the nine months ended September 30, 2021. The decrease in net income was primarily attributable to a $7.1 million increase in provision for credit losses, a $17.9 million increase in non-interest expense, and a $9.0 million decrease in non-interest income, partially offset by a $26.2 million increase in net interest income and a $3.4 million decrease in income tax expense.

Net interest income was $198.4 million for the nine months ended September 30, 2022, an increase of $26.2 million, or 15.2%, from $172.2 million for the nine months ended September 30, 2021. The increase in net interest income was primarily attributable to a $20.2 million increase in interest income coupled with a $6.0 million decrease in interest expense. The increase in interest income was primarily due to an increase in the average balance of interest-earning assets coupled with the impact of the rise in interest rates during the nine months ended September 30, 2022. The decrease in interest expense on deposits was driven by an increase in the balance of lower costing demand deposits. As discussed herein, the Federal Reserve raised interest rates numerous times throughout 2022. The rise in interest rates had a more immediate impact on interest income from loans, securities and other interest-earning assets than interest expense on deposits, as the repricing on deposit products initially lags in relation to increases in market interest rates. The increase in interest expense on borrowings was driven by an increase in interest rates related to overnight

63

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

and short-term borrowing transactions executed during the nine months ended September 30, 2022. Prepayment penalties, which are included in interest income on loans, totaled $3.4 million for the nine months ended September 30, 2022, compared to $2.8 million for the nine months ended September 30, 2021.

The average yield on loans for the nine months ended September 30, 2022 decreased 5 basis points to 3.70%, as compared to 3.75% for the nine months ended September 30, 2021, but increased 12 basis points since June 30, 2022, as interest income increased due to rising interest rates and loan growth. The average yield on securities for the nine months ended September 30, 2022 increased 24 basis points to 2.20%, as compared to 1.96% for the nine months ended September 30, 2021, as $165.5 million of higher yielding securities were purchased, and a number of adjustable rate securities tied to various indexes repriced higher during the period. The average yield on other interest-earning assets for the nine months ended September 30, 2022 increased 176 basis points to 2.46%, as compared to 0.70% for the nine months ended September 30, 2021, due to the rise in interest rates in 2022 noted above.

Total interest expense was $23.4 million for the nine months ended September 30, 2022, a decrease of $6.0 million, or 20.6%, from $29.4 million for the nine months ended September 30, 2021. The decrease in interest expense was primarily attributable to a 20 basis point decrease in the average cost of interest-bearing deposits which was partially offset by the impact of the increase in the average balance of deposits. The decrease in interest expense on deposits was driven by an increase in the balance of lower costing demand deposits. Interest on borrowings increased $1.0 million, or 17.2%, due to an increase in the cost of borrowings.

The Company's net interest margin for the nine months ended September 30, 2022 increased 25 basis points to 3.00%, when compared to 2.75% for the nine months ended September 30, 2021. The weighted average yield on interest-earning assets for the nine months ended September 30, 2022 increased 13 basis points to 3.35%, when compared to 3.22% for the nine months ended September 30, 2021. The average cost of interest-bearing liabilities decreased 15 basis points to 0.47% for the nine months ended September 30, 2022 as compared to 0.62% for the nine months ended September 30, 2021. The decrease in costs for the nine months ended September 30, 2022 were largely driven by the sustained lower interest rate environment throughout the 2021 period until rates began to rise in March 2022. The net interest margin increased for the nine months ended September 30, 2022, as the repricing of interest-bearing liabilities initially lags in relation to the repricing of yields on interest-earning assets in a rising rate environment.

On January 1, 2022, the Company adopted ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), also known as the Current Expected Credit Loss ("CECL") standard. CECL requires the measurement of all expected credit losses over the life of financial instruments held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. In connection with the adoption of CECL, the Company recognized a cumulative effect adjustment that increased stockholders' equity by $6.2 million, net of tax. At adoption and on a gross basis, the Company decreased its allowance for credit losses ("ACL") by $16.8 million for loans, increased its ACL for unfunded commitments, included in other liabilities, by $7.7 million, and established an ACL for debt securities available for sale of $490,000. The provision for credit losses for the nine months ended September 30, 2022 was $4.5 million, an increase of $7.1 million, from a reversal of provision for credit losses of $2.6 million recorded for the nine months ended September 30, 2021. The increase in provision for credit losses during the nine months ended September 30, 2022 was primarily attributable to an increase in the balances of loans and the evaluation of current and projected economic conditions.

Non-interest income was $22.9 million for the nine months ended September 30, 2022, a decrease of $9.0 million, or 28.2%, from $31.9 million for the nine months ended September 30, 2021. The decrease was primarily attributable to a decrease in income from the gain on the sale of loans of $10.7 million, a decrease in income from title insurance fees of $1.8 million, and a decrease in gain on securities transactions of $1.8 million, partially offset by an increase in the change in fair value of equity securities of $1.5 million, an increase in demand deposit fees of $1.4 million and an increase in bank-owned life insurance income of $1.0 million due to death benefit claims. The nine months ended September 30, 2021 included a $7.7 million gain on the sale of commercial business loans granted as part of the Small Business Administration PPP.

Non-interest expense was $130.3 million for the nine months ended September 30, 2022, an increase of $17.9 million, or 16.0%, from $112.4 million for the nine months ended September 30, 2021. The increase was primarily attributable to an increase in compensation and employee benefits expense of $14.9 million and an increase in merger-related expenses of $2.5 million. The increase in compensation and employee benefits expense was due to an increase in staff levels and related personnel benefit costs, mainly due to the acquisitions of Freehold Bank in December 2021 and RSI Bank in May 2022. There was an increase of 121 full time equivalent employees from September 30, 2021 compared to September 30, 2022. The increase in merger-related expenses was related to the acquisition of RSI Bank.

Income tax expense was $22.2 million for the nine months ended September 30, 2022, a decrease of $3.4 million, as compared to $25.5 million for the nine months ended September 30, 2021, mainly due to a decrease in pre-tax income, and to a lesser

64

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

extent, a decrease in the Company's effective tax rate. The Company's effective tax rate was 25.6% and 27.1% for the nine months ended September 30, 2022 and 2021, respectively.

Asset Quality

The Company's non-performing loans at September 30, 2022 totaled $7.0 million, or 0.10% of total gross loans, as compared to $3.9 million, or 0.06% of total gross loans, at December 31, 2021. The $3.1 million increase in non-performing loans was attributable to an increase of $1.2 million in non-performing one-to-four family loans and a $1.8 million increase in commercial real estate loans. The increase in non-performing one-to-four family loans was due to an increase in the number of loans from seven non-performing loans at December 31, 2021 to 12 non-performing loans at September 30, 2022. The increase in non-performing commercial real estate loans was due to an increase in the number of loans from one non-performing loan at December 31, 2021 to three non-performing loans at September 30, 2022. Non-performing assets as a percentage of total assets totaled 0.07% at September 30, 2022 as compared to 0.04% at December 31, 2021.

For the quarter ended September 30, 2022, net charge-offs totaled $208,000, as compared to $53,000 in net charge-offs for the quarter ended September 30, 2021. For the nine months ended September 30, 2022, net recoveries totaled $8,000, as compared to $1.8 million in net charge-offs for the nine months ended September 30, 2021.

The Company's allowance for credit losses on loans was $51.9 million, or 0.71% of total gross loans, at September 30, 2022, compared to $62.7 million, or 0.99% of total gross loans, at December 31, 2021. The decrease in the allowance for credit losses for loans was primarily attributable to the impact of the initial adoption of the CECL standard on January 1, 2022, which resulted in a decrease to allowance for credit losses on loans of $16.8 million, partially offset by an increase in provision for credit losses of $7.1 million recorded during the nine months ended September 30, 2022, due to an increase in the balance of loans and evaluation of current and future economic conditions.

Critical Accounting Policies

    The Company considers certain accounting policies to be critically important to the fair presentation of its Consolidated Statements of Financial Condition and Consolidated Statements of Income. These policies require management to make significant judgments on matters which by their nature have elements of uncertainty. The sensitivity of the Company’s consolidated financial statements to these critical accounting policies, and the assumptions and estimates applied, could have a significant impact on its financial condition and results of operations. These assumptions, estimates and judgments made by management can be influenced by a number of factors, including the general economic environment. The Company has identified the following as critical accounting policies:

▪Adequacy of the allowance for credit losses

▪Valuation of deferred tax assets

▪Valuation of retirement and post-retirement benefits

The calculation of the allowance for credit losses is a critical accounting policy of the Company. The allowance for credit losses is a valuation account that reflects management’s evaluation of the current expected credit losses in the loan portfolio. The Company maintains the allowance for credit losses through provisions for credit losses that are charged to income. Charge-offs against the allowance for credit losses are taken on loans where management determines that the collection of loan principal and interest is unlikely. Recoveries made on loans that have been charged-off are credited to the allowance for credit losses.

Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience for both the Company and peers provides the basis for the estimation of expected credit losses, where observed credit losses are converted to probability of default rate through the use of segment-specific loss given default risk factors that convert default rates to loss severity based on industry-level, observed relationships between the two variables for each segment, primarily due to the nature of the underlying collateral. These risk factors were assessed for reasonableness against the Company’s own loss experience and adjusted in certain cases when the relationship between the Company’s historical default and loss severity deviate from that of the wider industry. The historical probability of default ("PD") curves, together with corresponding economic conditions, establish a quantitative relationship between economic conditions and loan performance through an economic cycle.

Using the historical relationship between economic conditions and loan performance, management’s expectation of future loan performance is incorporated using an externally developed economic forecast. This forecast is applied over a period that

65

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

management has determined to be reasonable and supportable. Beyond the period over which management can develop or source a reasonable and supportable forecast, the model will revert to long-term average economic conditions using a straight-line, time-based methodology. The Company's current forecast period is six quarters, with a four quarter reversion period to historical average macroeconomic factors.

The allowance for credit losses is measured on a collective (pool) basis, with both a quantitative and qualitative analysis that is applied on a quarterly basis, when similar risk characteristics exist. The respective quantitative allowance for each segment is measured using an economic forecast, discounted cash flow modeling methodology in which distinct, segment-specific multi-variate regression models are applied to an external economic forecast. Under the discounted cash flows methodology, expected credit losses are estimated over the effective life of the loans by measuring the difference between the net present value of modeled cash flows and amortized cost basis. Contractual cash flows over the contractual life of the loans are the basis for modeled cash flows, adjusted for modeled defaults and expected prepayments and discounted at the loan-level effective interest rate. The contractual term excludes expected extensions, renewals, and modifications. After quantitative considerations, management applies additional qualitative adjustments so that the allowance for credit loss is reflective of the estimate of lifetime losses that exist in the loan portfolio at the balance sheet date.

Portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Management developed segments for estimating loss based on type of borrower and collateral, which is generally based upon federal call report segmentation. The segments have been combined or sub-segmented as needed to ensure loans of similar risk profiles are appropriately pooled.

The allowance for credit losses on loans individually evaluated for impairment is based upon loans that have been identified through the Company’s loan monitoring process. This process includes the review of delinquent, restructured, and charged-off loans.

    Management believes the primary risks inherent in the portfolio are a general decline in the economy, a decline in real estate market values, rising unemployment, and increases in interest rates in the absence of economic improvement. Any one or a combination of these events may adversely affect a borrower's ability to repay its loan, resulting in increased delinquencies and loan losses. Accordingly, the Company has recorded loan losses at a level which is estimated to represent the current risk in its loan portfolio. Management considers it important to maintain the ratio of the allowance for credit losses to total loans at an acceptable level considering the current composition of the loan portfolio.

    Although management believes that the Company has established and maintained the allowance for credit losses at appropriate levels, reserve levels may change if future economic, organizational, and portfolio conditions differ from the current operating environment. Management evaluates its estimates and assumptions on an ongoing basis, and the estimates and assumptions are adjusted when facts and circumstances necessitate a re-valuation of the estimate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. In addition, regulatory agencies periodically review the adequacy of the Company’s allowance for credit losses as an integral part of their examination process. Such agencies may require the Company to recognize additions to the allowance or additional write-downs based on their judgments about information available to them at the time of their examination. Although management uses the best information available, the level of the allowance for credit losses remains an estimate that is subject to significant judgment.

    The determination of whether deferred tax assets will be realizable is predicated on the reversal of existing deferred tax liabilities, utilization against carry-back years, and projections of future taxable income. These estimates are subject to management’s judgment. A valuation allowance is established when management is unable to conclude that it is more likely than not that it will realize deferred tax assets based on the nature and timing of these items. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period enacted. Management believes, based on current facts, that it is more likely than not that there will be sufficient taxable income in future years to realize federal deferred tax assets and that it is more likely than not that the benefits from certain state temporary differences will not be realized. At September 30, 2022 and December 31, 2021, the Company's net deferred tax assets (liabilities) totaled $54.8 million and $(9.7) million, respectively, which included a valuation allowance totaling $2.0 million at both dates. Based upon projections of future taxable income and the ability to carryforward operating losses indefinitely, management believes it is more likely than not the Company will realize the remaining deferred tax assets.

    The Company provides certain health care and life insurance benefits, along with a split dollar BOLI death benefit, to eligible retired employees. The cost of retiree health care and other benefits during the employees' period of active service are accrued monthly. The accounting guidance requires the following: a) recognize in the statement of financial position the over funded or underfunded status of a defined benefit post-retirement plan measured as the difference between the fair value of plan assets and the

66

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

benefit obligations; b) measure a plan's assets and its obligations that determine its funded status as of the end of the Company's fiscal year (with limited exceptions); and c) recognizes a component of other comprehensive income (loss), net of tax, the actuarial gain and losses and the prior service costs and credits that arise during the period. These assets and liabilities and expenses are based upon actuarial assumptions including interest rates, rates of increase in compensation, expected rate of return on plan assets and the length of time we will have to provide those benefits. Actual results may differ from these assumptions. These assumptions are reviewed and updated at least annually and management believes the estimates are reasonable.

67

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

    Qualitative Analysis. Interest rate risk is defined as the exposure of a Company's current and future earnings and capital arising from movements in market interest rates. The guidelines of the Company’s interest rate risk policy seek to limit the exposure to changes in interest rates that affect the underlying economic value of assets, liabilities, earnings and capital.

    The Asset/Liability Committee meets regularly to review the impact of interest rate changes on net interest income, net interest margin, net income, and the economic value of equity. The Asset/Liability Committee reviews a variety of strategies that project changes in asset or liability mix and the impact of those changes on projected net interest income and net income.

    The Company’s strategy for liabilities has been to maintain a stable funding base by focusing on core deposit accounts. The Company’s ability to retain maturing time deposit accounts is the result of its strategy to remain competitively priced within its marketplace. The Company’s pricing strategy may vary depending upon current funding needs and the ability of the Company to fund operations through alternative sources.

    Quantitative Analysis. Current and future sensitivity to changes in interest rates are measured through the use of balance sheet and income simulation models. The analysis captures changes in net interest income using flat rates as a base and rising and declining interest rate forecasts. Changes in net interest income and net income for the forecast period, generally twelve to twenty-four months, are measured and compared to policy limits for acceptable changes. The Company periodically reviews historical deposit re-pricing activity and makes modifications to certain assumptions used in its balance sheet and income simulation models regarding the interest rate sensitivity of deposits. These modifications are made to more closely reflect the most likely results under the various interest rate change scenarios. Since it is inherently difficult to predict the sensitivity of interest-bearing deposits to changes in interest rates, the changes in net interest income due to changes in interest rates cannot be precisely predicted. There are a variety of reasons that may cause actual results to vary considerably from the predictions presented below which include, but are not limited to, the timing, magnitude, and frequency of changes in interest rates, interest rate spreads, prepayments, and actions taken in response to such changes.

    Assumptions used in the simulation model may include but are not limited to:

•Securities pricing from third parties;

•Loan pricing indications from third parties;

•Loan and depository spread assumptions based upon the Company's product offerings;

•Securities and borrowing spreads based upon third party indications; and

•Prepayment assumptions derived from the Company's actual results and third party surveys.

    Certain shortcomings are inherent in the methodologies used in the interest rate risk measurements. Modeling changes in net interest income requires the use of certain assumptions regarding prepayment and deposit repricing, which may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. While management believes such assumptions are reasonable, there can be no assurance that assumed prepayment rates and repricing rates will approximate actual future asset prepayment and liability repricing activity.

    The table below sets forth an approximation of our interest rate exposure. Net interest income assumes that the composition of interest sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and also assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration to maturity or repricing of specific assets and liabilities. Accordingly, although the net interest income table provides an indication of our interest rate risk exposure at a particular point in time, such measurement is not intended to and does not provide a precise forecast of the effect of changes in market interest rates on our net interest income and will differ from actual.

    The table below sets forth, as of September 30, 2022, the net portfolio value, the estimated changes in the net portfolio value, and the net interest income that would result from the designated instantaneous parallel changes in market interest rates. This data is for Columbia Bank and Freehold Bank and its subsidiaries only and does not include any assets of the Company.

68

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

	Twelve Months Net Interest Income						Net Portfolio Value ("NPV")
Change in Interest Rates (Basis Points)	Amount		Dollar Change		Percent of Change		Estimated NPV		Present Value Ratio		Percent Change
					(Dollars in thousands)
+400	$	254,989	$	(19,545)	(7.12)	%	$	971,934	11.96	%	(36.48)	%
+300	261,125		(13,409)		(4.88)		1,119,685		13.34		(26.83)
+200	266,533		(8,001)		(2.91)		1,260,782		14.55		(17.61)
+100	271,594		(2,940)		(1.07)		1,399,414		15.65		(8.55)
Base	274,534		—		—		1,530,193		16.57		—
-100	274,544		10		—		1,627,780		17.05		6.38
-200	264,832		(9,702)		(3.53)		1,655,113		16.79		8.16

    As of September 30, 2022, based on the scenarios above, net interest income would decrease by approximately 2.91% if rates were to rise 200 basis points, and would decrease by 3.53% if rates were to decrease 200 basis points over a one-year time horizon.

    Another measure of interest rate sensitivity is to model changes in net portfolio value through the use of immediate and sustained interest rate shocks. As of September 30, 2022, based on the scenarios above, in the event of an immediate and sustained 200 basis point increase in interest rates, the NPV is projected to decrease 17.61%. If rates were to decrease 200 basis points, the model forecasts a 8.16% increase in the NPV.

    Overall, our September 30, 2022 results indicate that we are adequately positioned with an acceptable net interest income and economic value at risk in all scenarios and that all interest rate risk results continue to be within our policy guidelines.

Liquidity Management and Capital Resources:

    Liquidity Management. Liquidity refers to the Company's ability to generate adequate amounts of cash to meet financial obligations of a short-term and long-term nature. Sources of funds consist of deposit inflows, loan repayments and maturities, maturities and sales of securities, and the ability to execute new borrowings. While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows, calls of debt securities, and prepayments on loans and mortgage-backed securities are influenced by economic conditions, competition, and interest rate movements.

    The Company's cash flows are identified as cash flows from operating activities, investing activities and financing activities. Refer to the Consolidated Statements of Cash Flows for further details of the cash inflows and outflows of the Company.

    Capital Resources. The Company and its subsidiary banks (Columbia Bank and Freehold Bank) are subject to various regulatory capital requirements administered by the federal banking regulators, including a risk-based capital measure. The Federal Reserve establishes capital requirements, including well capitalized standards, for the consolidated financial holding company, and the Office of the Comptroller of the Currency (the "OCC") has similar requirements for the Company's subsidiary banks. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's Consolidated Statements of Financial Condition.

Federal regulators require federally insured depository institutions to meet several minimum capital standards: (1) total capital to risk-weighted assets of 8.0%; (2) tier 1 capital to risk-weighted assets of 6.0%; (3) common equity tier 1 capital to risk-weighted assets of 4.5%; and (4) tier 1 capital to adjusted total assets of 4.0%. In addition to establishing the minimum regulatory capital requirements, the regulations limit capital distributions and certain discretionary bonus payments to management if the institution does not hold a “capital conservation buffer” consisting of 2.5% of common equity tier 1 capital to risk-weighted assets above the amount necessary to meet its minimum risk-based capital requirements. The regulators established a framework for the classification of savings institutions into five categories: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. Generally, an institution is considered well capitalized if it has: a total capital to risk-weighted assets ratio of at least 10.0%, a tier 1 capital to risk-weighted assets ratio of at least 8.0%, a common tier 1 capital to risk-weighted assets ratio of at least 6.5%, and a tier 1 capital to adjusted total assets ratio of at least 5.0%. As of September 30, 2022 and December 31, 2021, each of the Company and the Banks exceeded all capital adequacy requirements to which it is subject.

69

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

    The following tables presents the Company's, Columbia Bank's and Freehold Bank's actual capital amounts and ratios at September 30, 2022 and December 31, 2021 compared to the Federal Reserve Bank minimum capital adequacy requirements and the Federal Reserve Bank requirements for classification as a well-capitalized institution:

	Actual				Minimum Capital Adequacy Requirements				Minimum Capital Adequacy Requirements with Capital Conservation Buffer				To be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount	Ratio
Company	(In thousands, except ratio data)
At September 30, 2022:
Total capital (to risk-weighted assets)	$	1,124,462	15.54	%	$	579,004	8.00	%	$	759,943	10.50	%	N/A	N/A
Tier 1 capital (to risk-weighted assets)	1,066,119		14.73		434,253		6.00		615,192		8.50		N/A	N/A
Common equity tier 1 capital (to risk-weighted assets)	1,058,902		14.63		325,690		4.50		506,629		7.00		N/A	N/A
Tier 1 capital (to adjusted total assets)	1,066,119		10.81		394,508		4.00		394,508		4.00		N/A	N/A
At December 31, 2021:
Total capital (to risk-weighted assets)	$	1,104,863	17.13	%	$	515,924	8.00	%	$	677,151	10.50	%	N/A	N/A
Tier 1 capital (to risk-weighted assets)	1,041,650		16.15		386,943		6.00		548,170		8.50		N/A	N/A
Common equity tier 1 capital (to risk-weighted assets)	1,034,433		16.04		290,207		4.50		451,434		7.00		N/A	N/A
Tier 1 capital (to adjusted total assets)	1,041,650		11.23		370,909		4.00		370,909		4.00		N/A	N/A

70

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

	Actual				Minimum Capital Adequacy Requirements				Minimum Capital Adequacy Requirements with Capital Conservation Buffer				To be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
Columbia Bank	(In thousands, except ratio data)
At September 30, 2022:
Total capital (to risk-weighted assets)	$	977,660	13.90	%	$	562,575	8.00	%	$	738,379	10.50	%	$	703,218	10.00	%
Tier 1 capital (to risk-weighted assets)	920,717		13.09		421,931		6.00		597,736		8.50		562,575		8.00
Common equity tier 1 capital (to risk-weighted assets)	920,717		13.09		316,448		4.50		492,253		7.00		457,092		6.50
Tier 1 capital (to adjusted total assets)	920,717		9.62		382,858		4.00		382,858		4.00		478,573		5.00
At December 31, 2021:
Total capital (to risk-weighted assets)	$	962,137	15.39	%	$	500,127	8.00	%	$	656,417	10.50	%	$	625,159	10.00	%
Tier 1 capital (to risk-weighted assets)	898,935		14.38		375,095		6.00		531,385		8.50		500,127		8.00
Common equity tier 1 capital (to risk-weighted assets)	898,935		14.38		281,322		4.50		437,611		7.00		406,353		6.50
Tier 1 capital (to adjusted total assets)	898,935		9.80		366,961		4.00		366,961		4.00		458,701		5.00

	Actual				Minimum Capital Adequacy Requirements				Minimum Capital Adequacy Requirements with Capital Conservation Buffer				To be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
Freehold Bank	(In thousands, except ratio data)
At September 30, 2022:
Total capital (to risk-weighted assets)	$	44,061	22.85	%	$	15,428	8.00	%	$	20,249	10.50	%	$	19,285	10.00	%
Tier 1 capital (to risk-weighted assets)	42,621		22.10		11,571		6.00		16,392		8.50		15,428		8.00
Common equity tier 1 capital (to risk-weighted assets)	42,621		22.10		8,678		4.50		13,499		7.00		12,535		6.50
Tier 1 capital (to adjusted total assets)	42,621		15.15		11,255		4.00		11,255		4.00		14,069		5.00
At December 31, 2021:
Total capital (to risk-weighted assets)	$	41,549	22.87	%	$	14,534	8.00	%	$	19,076	10.50	%	$	18,168	10.00	%
Tier 1 capital (to risk-weighted assets)	41,537		22.86		10,901		6.00		15,443		8.50		14,534		8.00
Common equity tier 1 capital (to risk-weighted assets)	41,537		22.86		8,176		4.50		12,717		7.00		11,809		6.50
Tier 1 capital (to adjusted total assets)	41,537		13.71		12,118		4.00		12,118		4.00		15,147		5.00

71

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES

Item 4. CONTROLS AND PROCEDURES

    An evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) promulgated under the Securities and Exchange Act of 1934, as amended) as of September 30, 2022. In designing and evaluating the Company’s disclosure controls and procedures, the Company and its management recognize that any controls and procedures, no matter how well-designed and operated, can provide only a reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating and implementing possible controls and procedures. Based on that evaluation, the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective.

    During the quarter ended September 30, 2022, there were no changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

72

PART II – OTHER INFORMATION

Item 1.     Legal Proceedings

    The Company is involved in various legal actions and claims arising in the normal course of business. In the opinion of management, these legal actions and claims are not expected to have a material adverse impact on the Company’s financial condition.

Item 1A.     Risk Factors

    For information regarding the Company’s risk factors, refer to the Risk Factors previously disclosed under Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission on March 1, 2022. As of September 30, 2022, the risk factors of the Company have not materially changed from those disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2021.

Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds

    The following table reports information regarding repurchases of the Company's common stock during the quarter ended September 30, 2022:

Period	Total Number of Shares (2)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
July 1 - 31, 2022	365,560	$	21.75	148,880	2,118,392
August 1 - 31, 2022	334,149	21.09		320,400	1,797,992
September 1 - 30, 2022	404,961	21.37		404,800	1,393,192
Total	1,104,670	$	21.41	874,080
(1) On December 6, 2021, the Company announced that its Board of Directors authorized a new stock repurchase program to acquire up to 5,000,000 shares, or approximately 4.6%, of the Company's then issued and outstanding common stock, commencing upon the completion of the Company's stock repurchase program announced on February 1, 2021. On December 21, 2021, the Company completed the repurchases under the previous stock repurchase program.
(2) During the three months ended September 30, 2022, 31,796 shares were repurchased pursuant to forfeitures and 198,794 shares were repurchased for taxes related to the 2019 Equity Incentive Plan and not as part of a share repurchase program.

Item 3.     Defaults Upon Senior Securities

    Not Applicable.

Item 4.     Mine Safety Disclosures

    Not Applicable.

Item 5.     Other Information

    None.

Item 6.     Exhibits

    The exhibits listed in the Exhibit Index (following the signatures section of this report) are included in, or incorporated by reference into this Quarterly Report on Form 10-Q.

73

Exhibit Index

31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.0	The following materials from the Company’s Quarterly Report to Stockholders on Form 10-Q for the quarter ended September 30, 2022, formatted in inline XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Financial Condition, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income (Loss), (iv) the Consolidated Statements of Changes in Stockholder’s Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to the Consolidated Financial Statements.
101. INS	The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document
101. SCH	Inline XBRL Taxonomy Extension Schema Document
101. CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101. DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101. LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101. PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover page Interactive Data File (embedded within the Inline XBRL document)

74

SIGNATURES

Pursuant to the requirements of Section 13 of the Securities Exchange Act of 1934, the Registrant has duly caused this quarterly report to be signed on its behalf by the undersigned, thereunto duly authorized.

		Columbia Financial, Inc.
Date:	November 9, 2022	/s/Thomas J. Kemly
		Thomas J. Kemly
		President and Chief Executive Officer
		(Principal Executive Officer)
Date:	November 9, 2022	/s/Dennis E. Gibney
		Dennis E. Gibney
		Executive Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

75

EX-31.1

Section 2: EX-31.1 (EXHIBIT 31.1)

Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Thomas J. Kemly, certify that:

1.I have reviewed this report on Form 10-Q of Columbia Financial, Inc.

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.    designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.    designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.    evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.    disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a.    all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.    any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 9, 2022	/s/Thomas J. Kemly
		Thomas J. Kemly
		President and Chief Executive Officer

EX-31.2

Section 3: EX-31.2 (EXHIBIT 31.2)

Certification Pursuant to

Exchange Act Rule 13a-14(a) and Rule 15d-14(a)

Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Dennis E. Gibney, certify that:

1.I have reviewed this report on Form 10-Q of Columbia Financial, Inc.

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.    designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.    designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.    evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.    disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a.    all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.    any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 9, 2022	/s/Dennis E. Gibney
		Dennis E. Gibney
		Executive Vice President and Chief Financial Officer

EX-32.0

Section 4: EX-32 (Exhibit 32)

Certification pursuant to 18 U.S.C. Section 1350,

as adopted pursuant to Section 906

of the Sarbanes-Oxley Act of 2002

Thomas J. Kemly, President and Chief Executive Officer, and Dennis E. Gibney, Executive Vice President and Chief Financial Officer of Columbia Financial Inc. (the “Company”), each certify in his capacity as an officer of the Company that he has reviewed the quarterly report of the Company on Form 10-Q for the quarter ended September 30, 2022 and that to the best of his knowledge:

(1) the report fully complies with the requirements of Sections 13(a) of the Securities Exchange Act of 1934; and

(2) the information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	November 9, 2022	/s/Thomas J. Kemly
		Thomas J. Kemly
		President and Chief Executive Officer
Date:	November 9, 2022	/s/Dennis E. Gibney
		Dennis E. Gibney
		Executive Vice President and Chief Financial Officer

XML

Cover Page - shares	9 Months Ended
	Sep. 30, 2022	Nov. 04, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity Registrant Name	Columbia Financial, Inc.
Entity File Number	001-38456
Entity Incorporation, State or Country Code	DE
Entity Address, State or Province	NJ
Entity Address, Address Line One	19-01 Route 208 North,
Entity Address, City or Town	Fair Lawn,
Entity Address, Postal Zip Code	07140
Entity Tax Identification Number	22-3504946
City Area Code	800
Local Phone Number	522-4167
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	CLBK
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		109,575,472
Entity Central Index Key	0001723596
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period	Q3
Amendment Flag	false

XML

Consolidated Statements of Financial Condition - USD ($) $ in Thousands		Sep. 30, 2022	Dec. 31, 2021
Assets
Cash and due from banks		$ 101,917	$ 70,702
Short-term investments		131	261
Total cash and cash equivalents		102,048	70,963
Debt securities available for sale, at fair value		1,371,721	1,703,847
Debt securities held to maturity, at amortized cost (fair value of $373,494 and $434,789 at September 30, 2022 and December 31, 2021, respectively)		425,077	429,734
Equity securities, at fair value		3,453	2,710
Federal Home Loan Bank stock		37,726	23,141
Loans receivable		7,326,223	6,360,601
Less: allowance for credit losses	[1]	51,891	62,689
Loans receivable, net		7,274,332	6,297,912
Accrued interest receivable		30,152	28,300
Office properties and equipment, net		84,255	78,708
Bank-owned life insurance ("BOLI")		263,217	247,474
Goodwill and intangible assets		126,296	91,693
Other assets		293,894	249,615
Total assets		10,012,171	9,224,097
Liabilities:
Deposits		8,064,893	7,570,216
Borrowings		674,018	377,309
Advance payments by borrowers for taxes and insurance		44,463	36,471
Accrued expenses and other liabilities		199,152	161,020
Total liabilities		8,982,526	8,145,016
Stockholders' equity:
Preferred stock, $0.01 par value. 10,000,000 shares authorized; none issued and outstanding at September 30, 2022 and December 31, 2021		0	0
Common stock, $0.01 par value. 500,000,000 shares authorized; 130,789,496 shares issued and 109,907,943 shares outstanding at September 30, 2022 and 124,630,738 shares issued and 107,442,453 shares outstanding at December 31, 2021		1,308	1,246
Additional paid-in capital		779,294	667,906
Retained earnings		835,627	765,133
Accumulated other comprehensive loss		(201,149)	(45,919)
Treasury stock, at cost; 20,881,553 shares at September 30, 2022 and 17,188,285 shares at December 31, 2021		(349,373)	(271,647)
Common stock held by the Employee Stock Ownership Plan		(35,322)	(37,026)
Stock held by Rabbi Trust		(3,010)	(2,425)
Deferred compensation obligations		2,270	1,813
Total stockholders' equity		1,029,645	1,079,081
Total liabilities and stockholders' equity		$ 10,012,171	$ 9,224,097

[1]  (1) The Company adopted ASU 2016-13 as of January 1, 2022. Prior year periods have not been restated.

XML

Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Debt securities held to maturity	$ 373,494	$ 434,789
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	130,789,496	124,630,738
Common stock, shares outstanding (in shares)	109,907,943	107,442,453
Treasury stock, shares (in shares)	20,881,553	17,188,285

XML

Consolidated Statements of Income - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Interest income:
Loans receivable		$ 68,516	$ 55,451	$ 187,400	$ 171,902
Debt securities available for sale and equity securities		8,434	7,622	25,741	21,521
Debt securities held to maturity		2,440	2,353	7,223	6,256
Federal funds and interest-earning deposits		151	167	245	310
Federal Home Loan Bank stock dividends		384	460	1,129	1,582
Total interest income		79,925	66,053	221,738	201,571
Interest expense:
Deposits		6,968	6,673	16,326	23,403
Borrowings		3,806	2,028	7,028	5,996
Total interest expense		10,774	8,701	23,354	29,399
Net interest income		69,151	57,352	198,384	172,172
Provision for (reversal of) credit losses	[1]	1,516	480	4,514	(2,561)
Net interest income after provision for (reversal of) credit losses		67,635	56,872	193,870	174,733
Non-interest income:
Bank-owned life insurance		1,633	1,504	5,501	4,475
Loan fees and service charges		1,432	844	2,928	2,209
Gain on securities transactions		0	2,296	210	2,015
Change in fair value of equity securities		(264)	(443)	(332)	(1,809)
(Loss) gain on sale of loans		(1)	140	109	10,814
Other non-interest income		3,058	2,116	7,541	6,920
Total non-interest income		8,164	8,874	22,874	31,860
Non-interest expense:
Compensation and employee benefits		31,523	24,512	86,393	71,506
Occupancy		5,973	4,846	16,838	14,912
Federal deposit insurance premiums		645	604	1,922	1,751
Advertising		771	662	2,215	1,860
Professional fees		2,134	1,766	5,727	5,207
Data processing and software expenses		3,670	2,798	10,036	8,181
Merger-related expenses		1,198	55	2,676	130
Loss on extinguishment of debt		0	0	0	742
Other non-interest expense, net		1,925	1,809	4,501	8,076
Total non-interest expense		47,839	37,052	130,308	112,365
Income before income tax expense		27,960	28,694	86,436	94,228
Income tax expense		7,041	7,712	22,154	25,513
Net income		$ 20,919	$ 20,982	$ 64,282	$ 68,715
Earnings per share - basic (in dollars per share)		$ 0.20	$ 0.20	$ 0.61	$ 0.66
Earnings per share - diluted (in dollars per share)		$ 0.19	$ 0.20	$ 0.61	$ 0.66
Weighted average shares outstanding - basic (in shares)		106,926,864	102,977,254	105,440,345	104,486,520
Weighted average shares outstanding - diluted (in shares)		107,534,498	102,977,254	106,040,240	104,486,520
Demand deposit account fees
Non-interest income:
Revenue from contract with customer		$ 1,510	$ 986	$ 4,129	$ 2,682
Title insurance fees
Non-interest income:
Revenue from contract with customer		$ 796	$ 1,431	$ 2,788	$ 4,554

[1] (1) The Company adopted ASU 2016-13 as of January 1, 2022. Prior year periods have not been restated.

XML

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 20,919	$ 20,982	$ 64,282	$ 68,715
Other comprehensive (loss) income, net of tax:
Unrealized (loss) on debt securities available for sale	(47,155)	(9,943)	(142,643)	(22,189)
Accretion of unrealized (loss) on debt securities reclassified as held to maturity	(13)	(2)	(21)	0
Reclassification adjustment for gain included in net income	0	1,791	151	1,589
Total other comprehensive (loss) income, net of tax	(47,168)	(8,154)	(142,513)	(20,600)
Derivatives, net of tax:
Unrealized gain on swap contracts accounted for as cash flow hedges	1,182	1,467	5,167	8,098
Total derivative, net of tax	1,182	1,467	5,167	8,098
Employee benefit plans, net of tax:
Amortization of prior service cost included in net income	(11)	(10)	(31)	(31)
Reclassification adjustment of actuarial net (loss) included in net income	(244)	(1,089)	(732)	(3,267)
Change in funded status of retirement obligations	937	2,198	(17,121)	36,570
Total employee benefit plans, net of tax	682	1,099	(17,884)	33,272
Total other comprehensive (loss) income	(45,304)	(5,588)	(155,230)	20,770
Total comprehensive (loss) income, net of tax	$ (24,385)	$ 15,394	$ (90,948)	$ 89,485

XML

Consolidated Statements of Changes in Stockholder's Equity (Unaudited) - USD ($) $ in Thousands	Total	Restricted Stock	Effect of adopting ASU No. 2016-13 ("CECL")	Cumulative Effect, Period of Adoption, Adjusted Balance	Common Stock	Common Stock Restricted Stock	Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance	Additional Paid-in Capital	Additional Paid-in Capital Restricted Stock	Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjusted Balance	Retained Earnings	Retained Earnings Effect of adopting ASU No. 2016-13 ("CECL")	Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance	Accumulated Other Comprehensive (Loss)	Accumulated Other Comprehensive (Loss) Cumulative Effect, Period of Adoption, Adjusted Balance	Treasury Stock	Treasury Stock Cumulative Effect, Period of Adoption, Adjusted Balance	Common Stock Held by the Employee Stock Ownership Plan	Common Stock Held by the Employee Stock Ownership Plan Cumulative Effect, Period of Adoption, Adjusted Balance	Stock Held by Rabbi Trust	Stock Held by Rabbi Trust Cumulative Effect, Period of Adoption, Adjusted Balance	Deferred Compensation Obligations	Deferred Compensation Obligations Cumulative Effect, Period of Adoption, Adjusted Balance
Balance at beginning of period at Dec. 31, 2020	$ 1,011,287				$ 1,220			$ 609,531			$ 673,084			$ (69,625)		$ (163,015)		$ (39,293)		$ (1,875)		$ 1,260
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	68,715										68,715
Other comprehensive income (loss)	20,770													20,770
Treasury stock allocated to restricted stock award grants	0							(733)								733
Stock based compensation	6,743							6,743
Purchase of treasury stock	(79,090)															(79,090)
Exercise of options (26,861 shares)	(25)							(25)
Restricted stock forfeitures	0							783								(783)
Repurchase shares for taxes	(292)															(292)
Employee Stock Ownership Plan shares committed to be released	2,945							1,249										1,696
Funding of deferred compensation obligations	(177)																			(424)		247
Balance at end of year at Sep. 30, 2021	1,030,876				1,220			617,548			741,799			(48,855)		(242,447)		(37,597)		(2,299)		1,507
Balance at beginning of period at Jun. 30, 2021	1,033,046				1,220			614,381			720,817			(43,267)		(221,072)		(38,169)		(2,205)		1,341
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	20,982										20,982
Other comprehensive income (loss)	(5,588)													(5,588)
Stock based compensation	2,203							2,203
Purchase of treasury stock	(20,544)															(20,544)
Exercise of options (26,861 shares)	(26)							(26)
Restricted stock forfeitures	0							539								(539)
Repurchase shares for taxes	(292)															(292)
Employee Stock Ownership Plan shares committed to be released	1,023							451										572
Funding of deferred compensation obligations	72																			(94)		166
Balance at end of year at Sep. 30, 2021	1,030,876				1,220			617,548			741,799			(48,855)		(242,447)		(37,597)		(2,299)		1,507
Balance at beginning of period at Dec. 31, 2021	$ 1,079,081		$ 6,212	$ 1,085,293	1,246		$ 1,246	667,906		$ 667,906	765,133	$ 6,212	$ 771,345	(45,919)	$ (45,919)	(271,647)	$ (271,647)	(37,026)	$ (37,026)	(2,425)	$ (2,425)	1,813	$ 1,813
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible List]	ASU 2016-13
Balance at beginning of period at Dec. 31, 2021	$ 1,079,081		$ 6,212	$ 1,085,293	1,246		$ 1,246	667,906		$ 667,906	765,133	$ 6,212	$ 771,345	(45,919)	$ (45,919)	(271,647)	$ (271,647)	(37,026)	$ (37,026)	(2,425)	$ (2,425)	1,813	$ 1,813
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	64,282										64,282
Other comprehensive income (loss)	(155,230)													(155,230)
Issuance of common stock	102,741	$ 0			61	$ 1		102,680	$ (1)
Stock based compensation	5,787							5,787
Purchase of treasury stock	(71,766)															(71,766)
Exercise of options (26,861 shares)	(445)							(445)
Restricted stock forfeitures	0							1,448								(1,448)
Repurchase shares for taxes	(4,512)															(4,512)
Employee Stock Ownership Plan shares committed to be released	3,623							1,919										1,704
Funding of deferred compensation obligations	(128)																			(585)		457
Balance at end of year at Sep. 30, 2022	1,029,645				1,308			779,294			835,627			(201,149)		(349,373)		(35,322)		(3,010)		2,270
Balance at beginning of period at Jun. 30, 2022	1,074,284				1,308			776,542			814,708			(155,845)		(325,723)		(35,895)		(2,878)		2,067
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	20,919										20,919
Other comprehensive income (loss)	(45,304)													(45,304)
Stock based compensation	1,680							1,680
Purchase of treasury stock	(18,590)															(18,590)
Exercise of options (26,861 shares)	(253)							(253)
Restricted stock forfeitures	0							661								(661)
Repurchase shares for taxes	(4,399)															(4,399)
Employee Stock Ownership Plan shares committed to be released	1,237							664										573
Funding of deferred compensation obligations	71																			(132)		203
Balance at end of year at Sep. 30, 2022	$ 1,029,645				$ 1,308			$ 779,294			$ 835,627			$ (201,149)		$ (349,373)		$ (35,322)		$ (3,010)		$ 2,270

XML

Consolidated Statements of Changes in Stockholder's Equity (Unaudited) (Parenthetical) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Stockholders' Equity [Abstract]
Issuance of common stock (in shares)			51,746
Treasury stock, shares purchased (in shares)	874,080	1,163,500	3,420,747	4,633,540
Exercise of stock options (in shares)	87,025	26,861	155,296	28,522
Restricted stock, shares forfeited (in shares)	31,796	29,882	68,548	43,856
Repurchased shares for taxes (in shares)	198,794	16,599	203,973	16,599

XML

Consolidated Statements of Cash Flows - USD ($)		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net income		$ 64,282,000	$ 68,715,000
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred loan costs, fees and purchased premiums and discounts		4,748,000	16,000
Net amortization of premiums and discounts on securities		2,219,000	3,497,000
Net amortization of mortgage servicing rights		181,000	200,000
Amortization of intangible assets		1,369,000	774,000
Depreciation and amortization of office properties and equipment		5,456,000	5,019,000
Amortization of operating lease right-of-use assets		2,865,000	2,720,000
Loss on extinguishment of debt		0	742,000
Provision for (reversal of) credit losses	[1]	4,514,000	(2,561,000)
Gain on securities transactions		(210,000)	(2,015,000)
Change in fair value of equity securities		332,000	1,809,000
Gain on securitizations		0	(2,259,000)
Gain on sale of loans, net		(109,000)	(8,555,000)
Net loss on disposal of office properties and equipment		147,000	61,000
Deferred tax (benefit) expense		(3,487,000)	10,515,000
(Increase) decrease in accrued interest receivable		(942,000)	1,599,000
Decrease (increase) in other assets		2,114,000	(12,891,000)
Increase (decrease) in accrued expenses and other liabilities		24,951,000	(4,941,000)
Income on bank-owned life insurance		(5,501,000)	(4,475,000)
Employee stock ownership plan expense		3,623,000	2,945,000
Stock based compensation		5,787,000	6,743,000
Decrease in deferred compensation obligations under Rabbi Trust		(128,000)	(177,000)
Net cash provided by operating activities		112,211,000	67,481,000
Cash flows from investing activities:
Proceeds from sales of debt securities available for sale		126,772,000	27,249,000
Proceeds from sales of equity securities		0	1,260,000
Proceeds from paydowns/maturities/calls of debt securities available for sale		226,887,000	257,347,000
Proceeds from paydowns/maturities/calls of debt securities held to maturity		27,645,000	29,616,000
Purchases of debt securities available for sale		(142,181,000)	(659,015,000)
Purchases of debt securities held to maturity		(23,298,000)	(175,491,000)
Purchases of equity securities		0	(91,000)
Proceeds from sales of loans held-for-sale		6,187,000	293,005,000
Purchases of loans receivable		0	(74,232,000)
Net increase in loans receivable		(639,970,000)	(208,260,000)
Proceeds from bank-owned life insurance death benefits		776,000	5,000
Proceeds from redemptions of Federal Home Loan Bank stock		60,176,000	7,661,000
Purchases of Federal Home Loan Bank stock		(73,855,000)	(4,793,000)
Proceeds from sales of office properties and equipment		1,009,000	685,000
Additions to office properties and equipment		(4,863,000)	(4,217,000)
Net cash acquired in acquisition		140,769,000	0
Net cash (used in) investing activities		(293,946,000)	(509,271,000)
Cash flows from financing activities:
Net (decrease) increase in deposits		(8,055,000)	443,734,000
Proceeds from long-term borrowings		35,893,000	37,120,000
Payments on long-term borrowings		0	(54,168,000)
Net increase (decrease) in short-term borrowings		255,054,000	(33,427,000)
Increase in advance payments by borrowers for taxes and insurance		6,651,000	3,469,000
Exercise of stock options		(445,000)	(25,000)
Purchase of treasury stock		(71,766,000)	(79,090,000)
Repurchase of shares for taxes		(4,512,000)	(292,000)
Net cash provided by financing activities		212,820,000	317,321,000
Net increase (decrease) in cash and cash equivalents		31,085,000	(124,469,000)
Cash and cash equivalents at beginning of year		70,963,000	422,957,000
Cash and cash equivalents at end of period		102,048,000	298,488,000
Cash paid during the period for:
Interest on deposits and borrowings		23,316,000	29,544,000
Income tax payments, net of (refunds)		13,229,000	13,203,000
Non-cash investing and financing activities:
Transfer of loans receivable to loans held-for-sale		6,078,000	280,304,000
Securitization of loans		0	99,603,000
Non-cash assets acquired:
Debt securities available for sale		79,024,000	0
Equity securities		1,075,000	0
Federal Home Loan Bank stock		906,000	0
Loans receivable		335,501,000	0
Accrued interest receivable		910,000	0
Office properties and equipment, net		7,296,000	0
Goodwill and intangibles		38,274,000	0
Deferred tax asset, net		3,633,000	0
Bank-owned life insurance		13,033,000	0
Other assets		2,723,000	0
Total non-cash assets acquired		482,375,000	0
Liabilities assumed:
Deposits		502,732,000	0
Borrowings		5,762,000	0
Advance payments by borrowers for taxes and insurance		1,341,000	0
Accrued expenses and other liabilities		10,568,000	0
Total liabilities assumed		520,403,000	0
Net non-cash liabilities assumed		(38,028,000)	0
Net cash and cash equivalents acquired in acquisition		$ 140,769,000	$ 0

[1] (1) The Company adopted ASU 2016-13 as of January 1, 2022. Prior year periods have not been restated.

XML

Basis of Financial Statement Presentation

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Financial Statement Presentation

Basis of Financial Statement Presentation

    The accompanying consolidated financial statements include the accounts of Columbia Financial, Inc. ("Columbia Financial"), its wholly-owned subsidiaries, Columbia Bank ("Columbia") and Freehold Bank ("Freehold") and Columbia's wholly-owned subsidiaries, Columbia Investment Services, Inc., 2500 Broadway Corp., 1901 Residential Management Co. LLC, Plaza Financial Services, Inc., First Jersey Title Services, Inc., Real Estate Management Corp. LLC, 1901 Commercial Management Co. LLC, Stewardship Realty LLC, CSB Realty Corp., RSI Insurance Agency, Inc., RSI Investment Corporation, and Highlander Investment Company (collectively, the “Company”). In consolidation, all intercompany accounts and transactions are eliminated.

    Columbia Financial, Inc. is a majority-owned subsidiary of Columbia Bank, MHC (the "MHC"). The accounts of the MHC are not consolidated in the accompanying consolidated financial statements of the Company.

    In preparing the interim unaudited consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the Consolidated Statements of Financial Condition and Consolidated Statements of Income for the periods presented. Actual results could differ from these estimates. Material estimates that are particularly susceptible to change are the determination of the adequacy of the allowance for credit losses, evaluation of the need for valuation allowances on deferred tax assets, and determination of liabilities related to retirement and other post-retirement benefits. These estimates and assumptions are evaluated on an ongoing basis and are adjusted when facts and circumstances dictate.

    The interim unaudited consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. The results of operations for the three and nine month periods ended September 30, 2022 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year or any other period. Certain reclassifications have been made in the consolidated financial statements to conform with current year classifications.

    The interim unaudited consolidated financial statements of the Company presented herein have been prepared in accordance with the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and U.S. generally accepted accounting principles (“GAAP”). Certain information and note disclosures have been condensed or omitted pursuant to the rules and regulations of the SEC.

    These unaudited consolidated financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2021 and the audited consolidated financial statements included therein.

XML

Acquisitions

9 Months Ended

Sep. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions

Acquisitions

Freehold Bank

On December 1, 2021, the Company completed its acquisition of Freehold Bancorp, MHC, Freehold Bancorp, Inc. and Freehold Bank (collectively, the "Freehold Entities"). Pursuant to the terms of the merger agreement, Freehold Bancorp, MHC merged with and into the MHC, with the MHC as the surviving entity; and Freehold Bancorp, Inc. merged with and into Columbia Financial, with Columbia Financial as the surviving entity. In connection with the merger, Freehold Bank converted to a federal savings bank and will operate as a wholly-owned subsidiary of Columbia Financial until November 6, 2023, the effective date of the merger of Freehold Bank into Columbia Bank. Under the terms of the merger agreement, depositors of Freehold Bank became depositors of the Columbia Bank and have the same rights and privileges in the MHC as if their accounts had been established at Columbia Bank on the date established at Freehold Bank. The Company issued 2,591,007 shares of its common stock to the MHC, representing an amount equal to the fair value of the Freehold Entities as determined by an independent appraiser, at December 1, 2021, the effective time of the holding company mergers.

Merger-related expenses are recorded in the Consolidated Statements of Income and are expensed as incurred. Direct acquisition and other charges incurred in connection with the acquisition of the Freehold Entities totaled $4,000 and $11,000 during the three and nine months ended September 30, 2022, respectively. Merger expenses recorded during the three and nine months ended September 30, 2021 totaled $55,000 and $130,000, respectively.

During the third quarter of 2022, the Company completed all tax returns related to the operations of Freehold Bank and its impact on the Company's income taxes, which resulted in an adjustment of $82,000 to deferred income taxes, net, and a corresponding decrease in goodwill.

2.    Acquisitions (continued)

RSI Bank

On May 1, 2022, the Company completed its acquisition of RSI Bancorp, M.H.C., RSI Bancorp, Inc. and RSI Bank (collectively, the “RSI Entities”). Pursuant to the terms of the merger agreement, RSI Bancorp, M.H.C. merged with and into the MHC, with the MHC as the surviving entity; RSI Bancorp, Inc. merged with and into Columbia Financial, with Columbia Financial as the surviving entity; and RSI Bank merged with and into Columbia Bank, with Columbia Bank as the surviving institution. Under the terms of the merger agreement, depositors of RSI Bank became depositors of Columbia Bank and have the same rights and privileges in the MHC as if their accounts had been established at Columbia Bank on the date established at RSI Bank. The Company issued 6,086,314 shares of its common stock to the MHC, representing an amount equal to the discounted fair value of the RSI Entities as determined by an independent appraiser, at the effective time of the merger.

Merger-related expenses are recorded in the Consolidated Statements of Income and are expensed as incurred. Direct acquisition and other charges incurred in connection with the acquisition of the RSI Entities totaled $1.2 million and $2.7 million, respectively, during the three and nine months ended September 30, 2022. There were no merger expenses recorded during the three and nine months ended September 30, 2021.

The following table sets forth assets acquired and liabilities assumed in the acquisition of the RSI Entities, at their estimated fair values as of the closing date of the transaction:

	May 1, 2022
	(In thousands)
Assets acquired:
Cash and cash equivalents	$	140,769
Debt securities available for sale	79,024
Equity securities	1,075
Federal Home Loan Bank Stock	906
Loans receivable	335,501
Accrued interest receivable	910
Office properties and equipment, net	7,296
Bank-owned life insurance	13,033
Deferred tax asset, net	3,633
Core deposit intangibles	10,271
Other assets	2,723
Total assets acquired	$	595,141
Liabilities assumed:
Deposits	$	502,732
Borrowings	5,762
Advance payments by borrowers for taxes and insurance	1,341
Accrued expenses and other liabilities	10,568
Total liabilities assumed	$	520,403
Net assets acquired	$	74,738
Fair market value of stock issued to Columbia Bank MHC for purchase	102,741
Goodwill recorded at merger	$	28,003

2.    Acquisitions (continued)

The assets acquired and liabilities assumed have been accounted for under the acquisition method of accounting. The assets and liabilities were recorded at their fair values as of May 1, 2022, and resulted in the recognition of goodwill of $28.0 million. The determination of the fair value of assets acquired and liabilities assumed required management to make estimates about discount rates, future expected cash flows, market conditions, and other future events that are highly subjective in nature and subject to change. During the third quarter of 2022, the Company completed all tax returns related to the operation of RSI Bank and its impact on the Company's income taxes, which resulted in a $2.0 million adjustment to deferred income taxes, net, and a corresponding decrease in goodwill. The fair value estimates are subject to change for up to one year after the closing date of the transaction if additional information (existing at the date of closing) relative to closing date fair values becomes available. As the Company continues to analyze the acquired assets and assumed liabilities, there may be additional adjustments to the recorded carrying values. At September 30, 2022, goodwill related to the acquisition of the RSI Entities totaled $26.0 million.

Fair Value Measurement of Assets Acquired and Liabilities Assumed

Described below are the methods used to determine the fair values of the significant assets acquired and liabilities assumed:

Cash and cash equivalents. The estimated fair values of cash and cash equivalents approximate their stated face amounts, as

these financial instruments are either due on demand or have short-term maturities.

Debt securities available for sale. The estimated fair values of the debt securities were calculated utilizing Level 2 inputs. The majority of the acquired securities were fixed income instruments that are not quoted on an exchange, but are traded in active markets. The prices for these instruments are obtained through an independent pricing service when available, or dealer market participants with whom the Company has historically transacted with for both purchases and sales of securities. The prices are derived from market quotations and matrix pricing. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, and the bond's terms and conditions, among other things. Management reviewed the data and assumptions used in pricing securities by its third party provider to ensure the highest level of significant inputs are derived from market observable data.

Loans receivable. The acquired loan portfolio was segregated into pools for valuation purposes primarily based on loan type,

non-accrual status, and credit risk rating. The estimated fair values were computed by discounting the expected cash flows from the respective pools. Cash flows were estimated by using valuation models that incorporated estimates of current key assumptions such as prepayment speeds, default rates, and loss severity rates. The process included: (1) projecting monthly principal and/or interest cash flows based on the contractual terms of the loans, including both maturity and contractual amortization; (2) adjusting projected cash flows for expected losses and prepayments, where appropriate; (3) developing a discount rate based on the relative risk of the cash flows, considering the loan type, liquidity risk, the maturity of the loans, servicing costs, and a required return on capital; and (4) discounting the projected cash flows to a present value, to arrive at the calculated value of the loans.

The methods used to estimate the fair values of loans are extremely sensitive to the assumptions and estimates used. While management attempted to use assumptions and estimates that best reflected the acquired loan portfolios and current market conditions, a greater degree of subjectivity is inherent in the values than in those determined in active markets.

Office properties and equipment, net. The fair value of land and buildings was estimated using current appraisals. Acquired

equipment was not material. Buildings are amortized over their estimated useful lives. Equipment is amortized or depreciated over their estimated useful lives usually ranging from three to fifteen years.

Goodwill. Goodwill is not amortized for book purposes: however, it is reviewed at least annually for impairment and is not deductible for tax purposes.

Core deposit intangibles. Core deposit intangibles ("CDI") are the measure of the value of non-maturity deposits in a business combination. The fair value of the CDI was calculated utilizing the cost savings approach, the expected cost savings attributable to the core deposits funding relative to an alternative source of funding, using a discounted cash flow present value methodology. Key inputs and assumptions utilized in the discounted cash flow present value methodology include core deposit balances and rates paid, the cost of an additional funding source, the aggregate life of deposits and truncation points, non-interest deposit costs, and the immediate deposit outflow assumption.

2.    Acquisitions (continued)

Deposits. The fair values of deposit liabilities with no stated maturity (i.e., non-interest bearing and interest-bearing demand deposit accounts, money market and savings and club accounts) are equal to the carrying amounts payable on demand. The fair value of certificates of deposit represent contractual cash flows, discounted to present value using interest rates currently offered on deposits with similar characteristics and remaining maturities.

Borrowings. The fair values of borrowings consisting of FHLB advances were estimated by discounting future cash flows using market discount rates for borrowings with similar characteristics, terms and remaining maturities.

XML

Earnings per Share

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Earnings Per Share

Earnings per Share

    Basic earnings per share ("EPS") is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. For purposes of calculating basic EPS, weighted average common shares outstanding excludes treasury stock, unallocated employee stock ownership plan shares that have not been committed for release and deferred compensation obligations required to be settled in shares of Company stock.

    Diluted EPS is computed using the same method as basic EPS and reflects the potential dilution which could occur if stock options and unvested shares were exercised and converted into common stock. The potentially diluted shares would then be included in the weighted average number of shares outstanding for the period using the treasury stock method.

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the three and nine months ended September 30, 2022 and 2021:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
	(Dollars in thousands, except per share data)
Net income	$	20,919	$	20,982	$	64,282	$	68,715
Shares:
Weighted average shares outstanding - basic	106,926,864		102,977,254		105,440,345		104,486,520
Effect of dilutive securities	607,634		—		599,895		—
Weighted average shares outstanding - diluted	107,534,498		102,977,254		106,040,240		104,486,520
Earnings per share:
Basic	$	0.20	$	0.20	$	0.61	$	0.66
Diluted	$	0.19	$	0.20	$	0.61	$	0.66

    During the three and nine months ended September 30, 2022, the average number of stock options which could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive totaled 121,935 and 89,990, respectively. During the three and nine months ended September 30, 2021, the average number of stock options which could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive totaled 3,731,901 and 3,741,138, respectively.

XML

Stock Repurchase Program

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Stock Repurchase Program

Stock Repurchase Program

On September 10, 2020, the Company announced that its Board of Directors authorized the Company's second stock repurchase program for the purchase of up to 5,000,000 shares, or approximately 4.3%, of the Company's issued and outstanding common stock, commencing on September 15, 2020. On February 5, 2021, the Company completed the repurchases under the second stock repurchase program.

On February 1, 2021, the Company announced that its Board of Directors authorized the Company's third stock repurchase program to acquire up to 5,000,000 shares, or approximately 4.5%, of the Company's then issued and outstanding common stock, commencing upon completion of the Company's second stock repurchase program.

4.    Stock Repurchase Program (continued)

On December 6, 2021, the Company announced that its Board of Directors authorized the Company's fourth stock repurchase program to acquire up to 5,000,000 shares, or approximately 4.6%, of the Company's then issued and outstanding common stock, commencing upon the completion of the Company's third stock repurchase program.

During the three and nine months ended September 30, 2022, the Company repurchased 874,080 shares at a cost of approximately $18.6 million, or $21.27 per share, and 3,420,747 shares at a cost of approximately $71.8 million, or $20.98 per share, respectively, under these programs. During the three and nine months ended September 30, 2021, the Company repurchased 1,163,500 shares at a cost of approximately $20.5 million, or $17.66 per share, and 4,633,540 shares, at a cost of approximately $79.1 million, or $17.07 per share, respectively, under these programs. Repurchased shares are held as treasury stock and are available for general corporate purposes.

XML

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2022

Accounting Standards Update and Change in Accounting Principle [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Accounting Pronouncement Adopted in 2022

In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("CECL"), further amended by ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. Topic 326 pertains to the measurement of credit losses on financial instruments. This update requires the measurement of all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better determine their credit loss estimates. This update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. This update was effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2019.

    The Company elected to defer the adoption of the CECL methodology until December 31, 2020 as permitted by the enacted Coronavirus Aid, Relief and Economic Security Act ("CARES Act"). In late December 2020, the Consolidated Appropriations Act, 2021 was enacted, and extended certain provisions of the CARES Act, which allowed the Company to extend the adoption of CECL until January 1, 2022. The Company elected to extend its adoption of CECL in accordance with this legislation, and adopted the above mentioned ASUs related to Financial Instruments -Credit Losses (Topic 326) using a modified retrospective approach.

The Company adopted ASU 2016-13 on January 1, 2022 for all financial assets measured at amortized cost and off balance sheet credit exposures. Results for the three months ended March 31, 2022 are presented under Accounting Standards Codification 326, Financial Instruments - Credit Losses, while prior period amounts continue to be reported with previously applicable GAAP and have not been restated. Effective January 1, 2022, the Company recorded a $12.1 million decrease in the allowance for credit losses on loans (previously allowance for loan losses), established a $353,000 allowance for credit losses on debt securities available for sale, and recorded a $5.5 million increase in the liability for off balance sheet credit exposures, which resulted in a total cumulative effect adjustment of $6.2 million, net of tax, and an increase to retained earnings.

Accounting Pronouncement Not Yet Adopted    

In March 2022, the FASB issued ASU 2022-02, Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures. ASU 2022-02 addresses areas identified by the FASB as part of its post-implementation review of the credit losses standard (ASU 2016-13) that introduced the CECL model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancing and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. For entities that have adopted ASU 2016-13, this ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements.

XML

Debt Securities Available for Sale

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Debt Securities Available for Sale

Debt Securities Available for Sale

    Debt securities available for sale at September 30, 2022 and December 31, 2021 are summarized as follows:

	September 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
	(In thousands)
U.S. government and agency obligations	$	67,491	$	—	$	(4,210)	$	63,281
Mortgage-backed securities and collateralized mortgage obligations	1,399,397		122		(175,867)		1,223,652
Municipal obligations	3,698		—		(141)		3,557
Corporate debt securities	88,565		6		(7,340)		81,231
	$	1,559,151	$	128	$	(187,558)	$	1,371,721

	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
			(In thousands)
U.S. government and agency obligations	$	34,711	$	404	$	(236)	$	34,879
Mortgage-backed securities and collateralized mortgage obligations	1,553,491		14,141		(13,273)		1,554,359
Municipal obligations	4,159		20		—		4,179
Corporate debt securities	109,018		2,378		(966)		110,430
	$	1,701,379	$	16,943	$	(14,475)	$	1,703,847

    The amortized cost and fair value of debt securities available for sale at September 30, 2022, by contractual final maturity, is shown below. Expected maturities may differ from contractual maturities due to prepayment or early call options exercised by the issuer.

	September 30, 2022
	Amortized Cost		Fair Value
	(In thousands)
One year or less	$	919	$	901
More than one year to five years	68,971		65,791
More than five years to ten years	89,864		81,377
	$	159,754	$	148,069
Mortgage-backed securities and collateralized mortgage obligations	1,399,397		1,223,652
	$	1,559,151	$	1,371,721

6.    Debt Securities Available for Sale (continued)

Mortgage-backed securities and collateralized mortgage obligations totaling $1.4 billion at amortized cost, and $1.2 billion at fair value, are not classified by maturity in the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

     During the three months ended September 30, 2022, there were no proceeds from the sale of debt securities available for sale. During the nine months ended September 30, 2022, proceeds from the sales of debt securities available for sale totaled $126.8 million, resulting in gross gains of $210,000 and no gross losses. There were no calls and $915,000 in maturities of debt securities available for sale during three and nine months ended September 30, 2022.

During the three months ended September 30, 2021, proceeds from the sale of debt securities available for sale totaled $22.5 million, resulting in gross gains of $2.0 million and no gross losses. Proceeds from called debt securities available for sale totaled $9.0 million, resulting in no gross gains or losses. No debt securities available for sale matured during the quarter.

During the nine months ended September 30, 2021, proceeds from the sale of debt securities available for sale totaled $27.2 million, resulting in gross gains of $2.0 million and gross losses of $281,000. Proceeds from called debt securities available for sale totaled $14.0 million, resulting in no gross gains or losses. Proceeds from matured debt securities available for sale totaled $210,000.

Debt securities available for sale having a carrying value of $636.0 million and $587.7 million, at September 30, 2022 and December 31, 2021, respectively, were pledged as security for public funds on deposit at Columbia Bank as required and permitted by law, pledged for outstanding borrowings at the Federal Home Loan Bank, and pledged for potential borrowings at the Federal Reserve Bank of New York. Debt securities available for sale having a carrying value of $30.1 million and $44.1 million, at September 30, 2022 and December 31, 2021, respectively, were pledged by Freehold Bank for outstanding borrowings at the Federal Home Loan Bank, and for potential borrowings at the Federal Reserve Bank of New York.

    The following tables summarize the fair value and gross unrealized losses of those securities that reported an unrealized loss at September 30, 2022 and December 31, 2021 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:

	September 30, 2022
	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)
U.S. government and agency obligations	$	54,464	$	(3,104)	$	8,817	$	(1,106)	$	63,281	$	(4,210)
Mortgage-backed securities and collateralized mortgage obligations	696,364		(72,154)		504,328		(103,713)		1,200,692		(175,867)
Municipal obligations	3,557		(141)		—		—		3,557		(141)
Corporate debt securities	70,286		(6,300)		8,960		(1,040)		79,246		(7,340)
	$	824,671	$	(81,699)	$	522,105	$	(105,859)	$	1,346,776	$	(187,558)

6.    Debt Securities Available for Sale (continued)

	December 31, 2021
	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)
U.S. government and agency obligations	$	14,488	$	(236)	$	—	$	—	$	14,488	$	(236)
Mortgage-backed securities and collateralized mortgage obligations	820,746		(11,892)		62,407		(1,381)		883,153		(13,273)
Corporate debt securities	29,221		(671)		4,705		(295)		33,926		(966)
	$	864,455	$	(12,799)	$	67,112	$	(1,676)	$	931,567	$	(14,475)

The number of securities in an unrealized loss position at September 30, 2022 totaled 439, compared with 219 at December 31, 2021. All temporarily impaired securities were investment grade as of September 30, 2022 and December 31, 2021.

For available for sale securities, the Company assesses whether a loss is from credit or other factors and considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows is less than the amortized cost, a credit loss would be recorded through an allowance for credit losses, limited by the amount that the fair value is less than the amortized cost basis.    

The following table presents the activity in the allowance for credit losses on debt securities available for sale for the three and nine months ended September 30, 2022:

	Three Months Ended September 30, 2022		Nine Months Ended September 30, 2022
	(In thousands)
Allowance for Credit Losses:
Beginning balance	$	—	$	—
Impact of adopting ASU 2016-13 (CECL) effective January 1, 2022	—		490
(Reversal of ) credit losses	—		(490)
Balance at September 30, 2022	$	—	$	—

The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of debt securities available for sale. Accrued interest receivable on debt securities available for sale is reported as a component of accrued interest receivable on the Consolidated Statement of Financial Condition, which totaled $3.1 million at September 30, 2022, and is excluded from the estimate of credit losses.

Debt Securities Held to Maturity

    Debt securities held to maturity at September 30, 2022 and December 31, 2021 are summarized as follows:

	September 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Allowance for Credit Losses		Fair Value
	(In thousands)
U.S. government and agency obligations	$	49,871	$	—	$	(7,587)	$	—	$	42,284
Mortgage-backed securities and collateralized mortgage obligations	375,206		—		(43,996)		—		331,210
	$	425,077	$	—	$	(51,583)	$	—	$	373,494

	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
	(In thousands)
U.S. government and agency obligations	$	44,870	$	—	$	(759)	$	44,111
Mortgage-backed securities and collateralized mortgage obligations	384,864		6,741		(927)		390,678
	$	429,734	$	6,741	$	(1,686)	$	434,789

The amortized cost and fair value of debt securities held to maturity at September 30, 2022, by contractual final maturity, is shown below. Expected maturities may differ from contractual maturities due to prepayment or early call options exercised by the issuer.

	September 30, 2022
	Amortized Cost		Fair Value
	(In thousands)
More than one year to five years	$	19,875	$	18,282
More than five years to ten years	19,996		16,479
More than ten years	10,000		7,523
	49,871		42,284
Mortgage-backed securities and collateralized mortgage obligations	375,206		331,210
	$	425,077	$	373,494

Mortgage-backed securities and collateralized mortgage obligations totaling $375.2 million at amortized cost, and $331.2 million at fair value at September 30, 2022, are not classified by maturity as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

    During the three and nine months ended September 30, 2022, there were no sales, calls or maturities of debt securities held to maturity.

    During the three and nine months ended September 30, 2021, there were no sales or maturities of debt securities held to maturity. During the three months ended September 30, 2021 there were no calls of debt securities held to maturity. During the nine months ended September 30, 2021, proceeds from called debt securities held to maturity totaled $5.1 million, resulting in no gross gains or losses.

7.    Debt Securities Held to Maturity (continued)

Debt securities held to maturity having a carrying value of $230.9 million and $252.4 million, at September 30, 2022 and December 31, 2021, respectively, were pledged as security for public funds on deposit at Columbia Bank as required and permitted by law, pledged for outstanding borrowings at the Federal Home Loan Bank, and pledged for potential borrowings at the Federal Reserve Bank of New York.

The following tables summarize the fair value and gross unrealized losses of those securities that reported an unrealized loss at September 30, 2022 and December 31, 2021 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:

	September 30, 2022
	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)
U.S. government and agency obligations	$	4,967	$	(32)	$	37,316	$	(7,555)	$	42,283	$	(7,587)
Mortgage-backed securities and collateralized mortgage obligations	322,117		(41,399)		9,093		(2,597)		331,210		(43,996)
	$	327,084	$	(41,431)	$	46,409	$	(10,152)	$	373,493	$	(51,583)

	December 31, 2021
	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)
U.S. government and agency obligations	$	44,111	$	(759)	$	—	$	—	$	44,111	$	(759)
Mortgage-backed securities and collateralized mortgage obligations	79,036		(927)		—		—		79,036		(927)
	$	123,147	$	(1,686)	$	—	$	—	$	123,147	$	(1,686)

    The number of securities in an unrealized loss position at September 30, 2022 totaled 117, compared with 25 at December 31, 2021. All temporarily impaired securities were investment grade as of September 30, 2022 and December 31, 2021.

For held to maturity securities, management measures expected credit losses on a collective basis by major security type. All of the mortgage-backed securities are issued by U.S. government agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses and, therefore, the expectation of non-payment is zero and the Company is not required to estimate an allowance for credit losses on these securities under the CECL standard. All these securities reflect a credit quality rating of AAA by Moody's Investors Service.

The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of debt securities held to maturity. Accrued interest receivable on debt securities held to maturity is reported as a component of accrued interest receivable on the Consolidated Statement of Financial Condition, which totaled $820,000 at September 30, 2022, and is excluded from the estimate of credit losses.

Equity Securities at Fair Value

    The Company has an equity securities portfolio which consists of stock in other financial institutions, a payment technology company, a community bank correspondent services company, preferred stock in U.S. Government agencies, and a community reinvestment act qualifying bond fund which are reported at fair value on the Company's Consolidated Statements of Financial Condition. The fair value of the equities portfolio at September 30, 2022 and December 31, 2021 was $3.5 million and $2.7 million, respectively.

    The Company recorded a net decrease in the fair value of equity securities of $264,000 and $443,000, during the three months ended September 30, 2022 and 2021, respectively, as a component of non-interest income. During the nine months ended September 30, 2022 and 2021, the Company recorded a net decrease in the fair value of equity securities of $332,000 and $1.8 million, respectively, as a component of non-interest income.

    During the three and nine months ended September 30, 2022, there were no sales of equity securities. During the three and nine months ended September 30, 2021, sales of equity securities totaled $1.3 million, resulting in gross gains of $344,000 and no gross losses.

XML

Debt Securities Held to Maturity

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Debt Securities Held to Maturity

Debt Securities Available for Sale

    Debt securities available for sale at September 30, 2022 and December 31, 2021 are summarized as follows:

	September 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
	(In thousands)
U.S. government and agency obligations	$	67,491	$	—	$	(4,210)	$	63,281
Mortgage-backed securities and collateralized mortgage obligations	1,399,397		122		(175,867)		1,223,652
Municipal obligations	3,698		—		(141)		3,557
Corporate debt securities	88,565		6		(7,340)		81,231
	$	1,559,151	$	128	$	(187,558)	$	1,371,721

	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
			(In thousands)
U.S. government and agency obligations	$	34,711	$	404	$	(236)	$	34,879
Mortgage-backed securities and collateralized mortgage obligations	1,553,491		14,141		(13,273)		1,554,359
Municipal obligations	4,159		20		—		4,179
Corporate debt securities	109,018		2,378		(966)		110,430
	$	1,701,379	$	16,943	$	(14,475)	$	1,703,847

    The amortized cost and fair value of debt securities available for sale at September 30, 2022, by contractual final maturity, is shown below. Expected maturities may differ from contractual maturities due to prepayment or early call options exercised by the issuer.

	September 30, 2022
	Amortized Cost		Fair Value
	(In thousands)
One year or less	$	919	$	901
More than one year to five years	68,971		65,791
More than five years to ten years	89,864		81,377
	$	159,754	$	148,069
Mortgage-backed securities and collateralized mortgage obligations	1,399,397		1,223,652
	$	1,559,151	$	1,371,721

6.    Debt Securities Available for Sale (continued)

Mortgage-backed securities and collateralized mortgage obligations totaling $1.4 billion at amortized cost, and $1.2 billion at fair value, are not classified by maturity in the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

     During the three months ended September 30, 2022, there were no proceeds from the sale of debt securities available for sale. During the nine months ended September 30, 2022, proceeds from the sales of debt securities available for sale totaled $126.8 million, resulting in gross gains of $210,000 and no gross losses. There were no calls and $915,000 in maturities of debt securities available for sale during three and nine months ended September 30, 2022.

During the three months ended September 30, 2021, proceeds from the sale of debt securities available for sale totaled $22.5 million, resulting in gross gains of $2.0 million and no gross losses. Proceeds from called debt securities available for sale totaled $9.0 million, resulting in no gross gains or losses. No debt securities available for sale matured during the quarter.

During the nine months ended September 30, 2021, proceeds from the sale of debt securities available for sale totaled $27.2 million, resulting in gross gains of $2.0 million and gross losses of $281,000. Proceeds from called debt securities available for sale totaled $14.0 million, resulting in no gross gains or losses. Proceeds from matured debt securities available for sale totaled $210,000.

Debt securities available for sale having a carrying value of $636.0 million and $587.7 million, at September 30, 2022 and December 31, 2021, respectively, were pledged as security for public funds on deposit at Columbia Bank as required and permitted by law, pledged for outstanding borrowings at the Federal Home Loan Bank, and pledged for potential borrowings at the Federal Reserve Bank of New York. Debt securities available for sale having a carrying value of $30.1 million and $44.1 million, at September 30, 2022 and December 31, 2021, respectively, were pledged by Freehold Bank for outstanding borrowings at the Federal Home Loan Bank, and for potential borrowings at the Federal Reserve Bank of New York.

    The following tables summarize the fair value and gross unrealized losses of those securities that reported an unrealized loss at September 30, 2022 and December 31, 2021 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:

	September 30, 2022
	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)
U.S. government and agency obligations	$	54,464	$	(3,104)	$	8,817	$	(1,106)	$	63,281	$	(4,210)
Mortgage-backed securities and collateralized mortgage obligations	696,364		(72,154)		504,328		(103,713)		1,200,692		(175,867)
Municipal obligations	3,557		(141)		—		—		3,557		(141)
Corporate debt securities	70,286		(6,300)		8,960		(1,040)		79,246		(7,340)
	$	824,671	$	(81,699)	$	522,105	$	(105,859)	$	1,346,776	$	(187,558)

6.    Debt Securities Available for Sale (continued)

	December 31, 2021
	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)
U.S. government and agency obligations	$	14,488	$	(236)	$	—	$	—	$	14,488	$	(236)
Mortgage-backed securities and collateralized mortgage obligations	820,746		(11,892)		62,407		(1,381)		883,153		(13,273)
Corporate debt securities	29,221		(671)		4,705		(295)		33,926		(966)
	$	864,455	$	(12,799)	$	67,112	$	(1,676)	$	931,567	$	(14,475)

The number of securities in an unrealized loss position at September 30, 2022 totaled 439, compared with 219 at December 31, 2021. All temporarily impaired securities were investment grade as of September 30, 2022 and December 31, 2021.

For available for sale securities, the Company assesses whether a loss is from credit or other factors and considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows is less than the amortized cost, a credit loss would be recorded through an allowance for credit losses, limited by the amount that the fair value is less than the amortized cost basis.    

The following table presents the activity in the allowance for credit losses on debt securities available for sale for the three and nine months ended September 30, 2022:

	Three Months Ended September 30, 2022		Nine Months Ended September 30, 2022
	(In thousands)
Allowance for Credit Losses:
Beginning balance	$	—	$	—
Impact of adopting ASU 2016-13 (CECL) effective January 1, 2022	—		490
(Reversal of ) credit losses	—		(490)
Balance at September 30, 2022	$	—	$	—

The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of debt securities available for sale. Accrued interest receivable on debt securities available for sale is reported as a component of accrued interest receivable on the Consolidated Statement of Financial Condition, which totaled $3.1 million at September 30, 2022, and is excluded from the estimate of credit losses.

Debt Securities Held to Maturity

    Debt securities held to maturity at September 30, 2022 and December 31, 2021 are summarized as follows:

	September 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Allowance for Credit Losses		Fair Value
	(In thousands)
U.S. government and agency obligations	$	49,871	$	—	$	(7,587)	$	—	$	42,284
Mortgage-backed securities and collateralized mortgage obligations	375,206		—		(43,996)		—		331,210
	$	425,077	$	—	$	(51,583)	$	—	$	373,494

	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
	(In thousands)
U.S. government and agency obligations	$	44,870	$	—	$	(759)	$	44,111
Mortgage-backed securities and collateralized mortgage obligations	384,864		6,741		(927)		390,678
	$	429,734	$	6,741	$	(1,686)	$	434,789

The amortized cost and fair value of debt securities held to maturity at September 30, 2022, by contractual final maturity, is shown below. Expected maturities may differ from contractual maturities due to prepayment or early call options exercised by the issuer.

	September 30, 2022
	Amortized Cost		Fair Value
	(In thousands)
More than one year to five years	$	19,875	$	18,282
More than five years to ten years	19,996		16,479
More than ten years	10,000		7,523
	49,871		42,284
Mortgage-backed securities and collateralized mortgage obligations	375,206		331,210
	$	425,077	$	373,494

Mortgage-backed securities and collateralized mortgage obligations totaling $375.2 million at amortized cost, and $331.2 million at fair value at September 30, 2022, are not classified by maturity as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

    During the three and nine months ended September 30, 2022, there were no sales, calls or maturities of debt securities held to maturity.

    During the three and nine months ended September 30, 2021, there were no sales or maturities of debt securities held to maturity. During the three months ended September 30, 2021 there were no calls of debt securities held to maturity. During the nine months ended September 30, 2021, proceeds from called debt securities held to maturity totaled $5.1 million, resulting in no gross gains or losses.

7.    Debt Securities Held to Maturity (continued)

Debt securities held to maturity having a carrying value of $230.9 million and $252.4 million, at September 30, 2022 and December 31, 2021, respectively, were pledged as security for public funds on deposit at Columbia Bank as required and permitted by law, pledged for outstanding borrowings at the Federal Home Loan Bank, and pledged for potential borrowings at the Federal Reserve Bank of New York.

The following tables summarize the fair value and gross unrealized losses of those securities that reported an unrealized loss at September 30, 2022 and December 31, 2021 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:

	September 30, 2022
	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)
U.S. government and agency obligations	$	4,967	$	(32)	$	37,316	$	(7,555)	$	42,283	$	(7,587)
Mortgage-backed securities and collateralized mortgage obligations	322,117		(41,399)		9,093		(2,597)		331,210		(43,996)
	$	327,084	$	(41,431)	$	46,409	$	(10,152)	$	373,493	$	(51,583)

	December 31, 2021
	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)
U.S. government and agency obligations	$	44,111	$	(759)	$	—	$	—	$	44,111	$	(759)
Mortgage-backed securities and collateralized mortgage obligations	79,036		(927)		—		—		79,036		(927)
	$	123,147	$	(1,686)	$	—	$	—	$	123,147	$	(1,686)

    The number of securities in an unrealized loss position at September 30, 2022 totaled 117, compared with 25 at December 31, 2021. All temporarily impaired securities were investment grade as of September 30, 2022 and December 31, 2021.

For held to maturity securities, management measures expected credit losses on a collective basis by major security type. All of the mortgage-backed securities are issued by U.S. government agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses and, therefore, the expectation of non-payment is zero and the Company is not required to estimate an allowance for credit losses on these securities under the CECL standard. All these securities reflect a credit quality rating of AAA by Moody's Investors Service.

The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of debt securities held to maturity. Accrued interest receivable on debt securities held to maturity is reported as a component of accrued interest receivable on the Consolidated Statement of Financial Condition, which totaled $820,000 at September 30, 2022, and is excluded from the estimate of credit losses.

Equity Securities at Fair Value

    The Company has an equity securities portfolio which consists of stock in other financial institutions, a payment technology company, a community bank correspondent services company, preferred stock in U.S. Government agencies, and a community reinvestment act qualifying bond fund which are reported at fair value on the Company's Consolidated Statements of Financial Condition. The fair value of the equities portfolio at September 30, 2022 and December 31, 2021 was $3.5 million and $2.7 million, respectively.

    The Company recorded a net decrease in the fair value of equity securities of $264,000 and $443,000, during the three months ended September 30, 2022 and 2021, respectively, as a component of non-interest income. During the nine months ended September 30, 2022 and 2021, the Company recorded a net decrease in the fair value of equity securities of $332,000 and $1.8 million, respectively, as a component of non-interest income.

    During the three and nine months ended September 30, 2022, there were no sales of equity securities. During the three and nine months ended September 30, 2021, sales of equity securities totaled $1.3 million, resulting in gross gains of $344,000 and no gross losses.

XML

Equity Securities at Fair Value

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Equity Securities at Fair Value

Debt Securities Available for Sale

    Debt securities available for sale at September 30, 2022 and December 31, 2021 are summarized as follows:

	September 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
	(In thousands)
U.S. government and agency obligations	$	67,491	$	—	$	(4,210)	$	63,281
Mortgage-backed securities and collateralized mortgage obligations	1,399,397		122		(175,867)		1,223,652
Municipal obligations	3,698		—		(141)		3,557
Corporate debt securities	88,565		6		(7,340)		81,231
	$	1,559,151	$	128	$	(187,558)	$	1,371,721

	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
			(In thousands)
U.S. government and agency obligations	$	34,711	$	404	$	(236)	$	34,879
Mortgage-backed securities and collateralized mortgage obligations	1,553,491		14,141		(13,273)		1,554,359
Municipal obligations	4,159		20		—		4,179
Corporate debt securities	109,018		2,378		(966)		110,430
	$	1,701,379	$	16,943	$	(14,475)	$	1,703,847

    The amortized cost and fair value of debt securities available for sale at September 30, 2022, by contractual final maturity, is shown below. Expected maturities may differ from contractual maturities due to prepayment or early call options exercised by the issuer.

	September 30, 2022
	Amortized Cost		Fair Value
	(In thousands)
One year or less	$	919	$	901
More than one year to five years	68,971		65,791
More than five years to ten years	89,864		81,377
	$	159,754	$	148,069
Mortgage-backed securities and collateralized mortgage obligations	1,399,397		1,223,652
	$	1,559,151	$	1,371,721

6.    Debt Securities Available for Sale (continued)

Mortgage-backed securities and collateralized mortgage obligations totaling $1.4 billion at amortized cost, and $1.2 billion at fair value, are not classified by maturity in the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

     During the three months ended September 30, 2022, there were no proceeds from the sale of debt securities available for sale. During the nine months ended September 30, 2022, proceeds from the sales of debt securities available for sale totaled $126.8 million, resulting in gross gains of $210,000 and no gross losses. There were no calls and $915,000 in maturities of debt securities available for sale during three and nine months ended September 30, 2022.

During the three months ended September 30, 2021, proceeds from the sale of debt securities available for sale totaled $22.5 million, resulting in gross gains of $2.0 million and no gross losses. Proceeds from called debt securities available for sale totaled $9.0 million, resulting in no gross gains or losses. No debt securities available for sale matured during the quarter.

During the nine months ended September 30, 2021, proceeds from the sale of debt securities available for sale totaled $27.2 million, resulting in gross gains of $2.0 million and gross losses of $281,000. Proceeds from called debt securities available for sale totaled $14.0 million, resulting in no gross gains or losses. Proceeds from matured debt securities available for sale totaled $210,000.

Debt securities available for sale having a carrying value of $636.0 million and $587.7 million, at September 30, 2022 and December 31, 2021, respectively, were pledged as security for public funds on deposit at Columbia Bank as required and permitted by law, pledged for outstanding borrowings at the Federal Home Loan Bank, and pledged for potential borrowings at the Federal Reserve Bank of New York. Debt securities available for sale having a carrying value of $30.1 million and $44.1 million, at September 30, 2022 and December 31, 2021, respectively, were pledged by Freehold Bank for outstanding borrowings at the Federal Home Loan Bank, and for potential borrowings at the Federal Reserve Bank of New York.

    The following tables summarize the fair value and gross unrealized losses of those securities that reported an unrealized loss at September 30, 2022 and December 31, 2021 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:

	September 30, 2022
	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)
U.S. government and agency obligations	$	54,464	$	(3,104)	$	8,817	$	(1,106)	$	63,281	$	(4,210)
Mortgage-backed securities and collateralized mortgage obligations	696,364		(72,154)		504,328		(103,713)		1,200,692		(175,867)
Municipal obligations	3,557		(141)		—		—		3,557		(141)
Corporate debt securities	70,286		(6,300)		8,960		(1,040)		79,246		(7,340)
	$	824,671	$	(81,699)	$	522,105	$	(105,859)	$	1,346,776	$	(187,558)

6.    Debt Securities Available for Sale (continued)

	December 31, 2021
	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)
U.S. government and agency obligations	$	14,488	$	(236)	$	—	$	—	$	14,488	$	(236)
Mortgage-backed securities and collateralized mortgage obligations	820,746		(11,892)		62,407		(1,381)		883,153		(13,273)
Corporate debt securities	29,221		(671)		4,705		(295)		33,926		(966)
	$	864,455	$	(12,799)	$	67,112	$	(1,676)	$	931,567	$	(14,475)

The number of securities in an unrealized loss position at September 30, 2022 totaled 439, compared with 219 at December 31, 2021. All temporarily impaired securities were investment grade as of September 30, 2022 and December 31, 2021.

For available for sale securities, the Company assesses whether a loss is from credit or other factors and considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows is less than the amortized cost, a credit loss would be recorded through an allowance for credit losses, limited by the amount that the fair value is less than the amortized cost basis.    

The following table presents the activity in the allowance for credit losses on debt securities available for sale for the three and nine months ended September 30, 2022:

	Three Months Ended September 30, 2022		Nine Months Ended September 30, 2022
	(In thousands)
Allowance for Credit Losses:
Beginning balance	$	—	$	—
Impact of adopting ASU 2016-13 (CECL) effective January 1, 2022	—		490
(Reversal of ) credit losses	—		(490)
Balance at September 30, 2022	$	—	$	—

The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of debt securities available for sale. Accrued interest receivable on debt securities available for sale is reported as a component of accrued interest receivable on the Consolidated Statement of Financial Condition, which totaled $3.1 million at September 30, 2022, and is excluded from the estimate of credit losses.

Debt Securities Held to Maturity

    Debt securities held to maturity at September 30, 2022 and December 31, 2021 are summarized as follows:

	September 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Allowance for Credit Losses		Fair Value
	(In thousands)
U.S. government and agency obligations	$	49,871	$	—	$	(7,587)	$	—	$	42,284
Mortgage-backed securities and collateralized mortgage obligations	375,206		—		(43,996)		—		331,210
	$	425,077	$	—	$	(51,583)	$	—	$	373,494

	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
	(In thousands)
U.S. government and agency obligations	$	44,870	$	—	$	(759)	$	44,111
Mortgage-backed securities and collateralized mortgage obligations	384,864		6,741		(927)		390,678
	$	429,734	$	6,741	$	(1,686)	$	434,789

The amortized cost and fair value of debt securities held to maturity at September 30, 2022, by contractual final maturity, is shown below. Expected maturities may differ from contractual maturities due to prepayment or early call options exercised by the issuer.

	September 30, 2022
	Amortized Cost		Fair Value
	(In thousands)
More than one year to five years	$	19,875	$	18,282
More than five years to ten years	19,996		16,479
More than ten years	10,000		7,523
	49,871		42,284
Mortgage-backed securities and collateralized mortgage obligations	375,206		331,210
	$	425,077	$	373,494

Mortgage-backed securities and collateralized mortgage obligations totaling $375.2 million at amortized cost, and $331.2 million at fair value at September 30, 2022, are not classified by maturity as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

    During the three and nine months ended September 30, 2022, there were no sales, calls or maturities of debt securities held to maturity.

    During the three and nine months ended September 30, 2021, there were no sales or maturities of debt securities held to maturity. During the three months ended September 30, 2021 there were no calls of debt securities held to maturity. During the nine months ended September 30, 2021, proceeds from called debt securities held to maturity totaled $5.1 million, resulting in no gross gains or losses.

7.    Debt Securities Held to Maturity (continued)

Debt securities held to maturity having a carrying value of $230.9 million and $252.4 million, at September 30, 2022 and December 31, 2021, respectively, were pledged as security for public funds on deposit at Columbia Bank as required and permitted by law, pledged for outstanding borrowings at the Federal Home Loan Bank, and pledged for potential borrowings at the Federal Reserve Bank of New York.

The following tables summarize the fair value and gross unrealized losses of those securities that reported an unrealized loss at September 30, 2022 and December 31, 2021 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:

	September 30, 2022
	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)
U.S. government and agency obligations	$	4,967	$	(32)	$	37,316	$	(7,555)	$	42,283	$	(7,587)
Mortgage-backed securities and collateralized mortgage obligations	322,117		(41,399)		9,093		(2,597)		331,210		(43,996)
	$	327,084	$	(41,431)	$	46,409	$	(10,152)	$	373,493	$	(51,583)

	December 31, 2021
	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)
U.S. government and agency obligations	$	44,111	$	(759)	$	—	$	—	$	44,111	$	(759)
Mortgage-backed securities and collateralized mortgage obligations	79,036		(927)		—		—		79,036		(927)
	$	123,147	$	(1,686)	$	—	$	—	$	123,147	$	(1,686)

    The number of securities in an unrealized loss position at September 30, 2022 totaled 117, compared with 25 at December 31, 2021. All temporarily impaired securities were investment grade as of September 30, 2022 and December 31, 2021.

For held to maturity securities, management measures expected credit losses on a collective basis by major security type. All of the mortgage-backed securities are issued by U.S. government agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses and, therefore, the expectation of non-payment is zero and the Company is not required to estimate an allowance for credit losses on these securities under the CECL standard. All these securities reflect a credit quality rating of AAA by Moody's Investors Service.

The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of debt securities held to maturity. Accrued interest receivable on debt securities held to maturity is reported as a component of accrued interest receivable on the Consolidated Statement of Financial Condition, which totaled $820,000 at September 30, 2022, and is excluded from the estimate of credit losses.

Equity Securities at Fair Value

    The Company has an equity securities portfolio which consists of stock in other financial institutions, a payment technology company, a community bank correspondent services company, preferred stock in U.S. Government agencies, and a community reinvestment act qualifying bond fund which are reported at fair value on the Company's Consolidated Statements of Financial Condition. The fair value of the equities portfolio at September 30, 2022 and December 31, 2021 was $3.5 million and $2.7 million, respectively.

    The Company recorded a net decrease in the fair value of equity securities of $264,000 and $443,000, during the three months ended September 30, 2022 and 2021, respectively, as a component of non-interest income. During the nine months ended September 30, 2022 and 2021, the Company recorded a net decrease in the fair value of equity securities of $332,000 and $1.8 million, respectively, as a component of non-interest income.

    During the three and nine months ended September 30, 2022, there were no sales of equity securities. During the three and nine months ended September 30, 2021, sales of equity securities totaled $1.3 million, resulting in gross gains of $344,000 and no gross losses.

XML

Loans Receivable and Allowance for Credit Losses

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Loans Receivable and Allowance for Credit Losses

Loans Receivable and Allowance for Credit Losses

On January 1, 2022, the Company adopted CECL (ASC Topic 326), which replaced the historical incurred loss methodology with an expected loss methodology. The loan portfolio segmentation was expanded to seven portfolio segments taking into consideration common loan attributes and risk characteristics, as well as historical reporting metrics and data availability. Disclosures at and for the periods ended December 31, 2021 and September 30, 2021, are presented in accordance with the expanded segmentation adopted in conjunction with CECL, when appropriate. The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of loans receivable. Accrued interest receivable on loans receivable is reported as a component of accrued interest receivable on the Consolidated Statement of Financial Condition, which totaled $26.3 million at September 30, 2022, and is excluded from the estimate of credit losses.

The allowance for credit losses is a valuation account that reflects management’s evaluation of the current expected credit losses in the loan portfolio. The Company maintains the allowance for credit losses through provisions for credit losses that are charged to income. Charge-offs against the allowance for credit losses are taken on loans where management determines that the collection of loan principal and interest is unlikely. Recoveries made on loans that have been charged-off are credited to the allowance for credit losses.

Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience for both the Company and peers provides the basis for the estimation of expected credit losses, where observed credit losses are converted to probability of default rate through the use of segment-specific loss given default risk factors that convert default rates to loss severity based on industry-level, observed relationships between the two variables for each segment, primarily due to the nature of the underlying collateral. These risk factors were assessed for reasonableness against the Company’s own loss experience and adjusted in certain cases when the relationship between the Company’s historical default and loss severity deviate from that of the wider industry. The historical probability of default ("PD") curves, together with corresponding economic conditions, establish a quantitative relationship between economic conditions and loan performance through an economic cycle.

Using the historical relationship between economic conditions and loan performance, management’s expectation of future loan performance is incorporated using an externally developed economic forecast. This forecast is applied over a period that management has determined to be reasonable and supportable. Beyond the period over which management can develop or source a reasonable and supportable forecast, the model will revert to long-term average economic conditions using a straight-line, time-based methodology. The Company's current forecast period is six quarters, with a four quarter reversion period to historical average macroeconomic factors.

The allowance for credit losses is measured on a collective (pool) basis, with both a quantitative and qualitative analysis that is applied on a quarterly basis, when similar risk characteristics exist. The respective quantitative allowance for each segment is measured using an economic forecast, discounted cash flow modeling methodology in which distinct, segment-specific multi-variate regression models are applied to an external economic forecast. Under the discounted cash flows methodology, expected credit losses are estimated over the effective life of the loans by measuring the difference between the net present value of modeled cash flows and amortized cost basis. Contractual cash flows over the contractual life of the loans are the basis for modeled cash flows, adjusted for

9.    Loans Receivable and Allowance for Credit Losses (continued)

modeled defaults and expected prepayments and discounted at the loan-level effective interest rate. The contractual term excludes expected extensions, renewals, and modifications. After quantitative considerations, management applies additional qualitative adjustments so that the allowance for credit loss is reflective of the estimate of lifetime losses that exist in the loan portfolio at the balance sheet date.

Portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Management developed segments for estimating loss based on type of borrower and collateral, which is generally based upon federal call report segmentation. The segments have been combined or sub-segmented as needed to ensure loans of similar risk profiles are appropriately pooled.

The allowance for credit losses on loans individually evaluated for impairment is based upon loans that have been identified through the Company’s loan monitoring process. This process includes the review of delinquent, restructured, and charged-off loans.

    Management believes the primary risks inherent in the portfolio are a general decline in the economy, a decline in real estate market values, rising unemployment, and increases in interest rates in the absence of economic improvement. Any one or a combination of these events may adversely affect a borrower's ability to repay its loan, resulting in increased delinquencies and loan losses. Accordingly, the Company has recorded loan losses at a level which is estimated to represent the current risk in its loan portfolio. Management considers it important to maintain the ratio of the allowance for credit losses to total loans at an acceptable level considering the current composition of the loan portfolio.

    Loans receivable at September 30, 2022 and December 31, 2021 are summarized as follows:

	September 30,		December 31,
	2022		2021
	(In thousands)
Real estate loans:
One-to-four family	$	2,706,114	$	2,092,317
Multifamily	1,142,459		1,041,108
Commercial real estate	2,354,786		2,170,236
Construction	289,650		295,047
Commercial business loans	497,478		452,232
Consumer loans:
Home equity loans and advances	279,824		276,563
Other consumer loans	2,214		1,428
Total gross loans	7,272,525		6,328,931
Purchased credit-deteriorated ("PCD") loans	19,771		6,791
Net deferred loan costs, fees and purchased premiums and discounts	33,927		24,879
Loans receivable	$	7,326,223	$	6,360,601

    The Company had no loans held-for-sale at September 30, 2022 and December 31, 2021. During the three months ended September 30, 2022, the Company sold $1.8 million, $685,000, and $510,000 of one-to-four family real estate loans, SBA loans included in commercial business loans, and construction loans held-for-sale, respectively, resulting in gross gains of $63,000 and gross losses of $64,000. During the nine months ended September 30, 2022, the Company sold $2.4 million, $2.0 million, and $1.8 million, of one-to-four family real estate loans, SBA loans included in commercial business loans, and construction loans held-for-sale, respectively, resulting in gross gains of $173,000 and gross losses of $64,000.

During the three months ended September 30, 2021, the Company sold $1.8 million, $15.0 million, and $1.2 million of one-to-four family real estate loans and home equity loans, commercial real estate loans, and SBA loans held-for-sale included in commercial business loans, respectively, resulting in gross gains of $140,000 and no gross losses. During the nine months ended September 30, 2021, the Company sold $17.4 million, $19.1 million, $250.1 million, and $6.4 million of one-to-four family real estate loans and home equity loans, commercial real estate loans, commercial business and SBA loans, and construction loans held-for-sale, respectively, resulting in gross gains of $8.6 million and no gross losses.

9.    Loans Receivable and Allowance for Credit Losses (continued)

During the three and nine months ended September 30, 2022, no loans were purchased by the Company. During the three months ended September 30, 2021, the Company purchased $678,000 of one-to-four family real estate loans and $2.0 million of commercial real estate loans from third parties. During the nine months ended September 30, 2021, the Company purchased $678,000 of one-to-four family real estate loans and $73.6 million of commercial real estate loans from third parties.

At September 30, 2022 and December 31, 2021, commercial business loans included $2.2 million and $44.9 million, respectively, in SBA Payroll Protection Program ("PPP") loans and net deferred fees related to these loans totaling $44,000 and $1.2 million, respectively.

The Company has entered into guarantor swaps with Freddie Mac which results in improved liquidity. During the three and nine months ended September 30, 2022, and three months ended September 30, 2021, no loans were exchanged for Freddie Mac mortgage participation certificates. During the nine months ended September 30, 2021, the Company exchanged $99.6 million of loans for Freddie Mac mortgage participation certificates, resulting in gross gains of $2.3 million and no gross losses. The Company retained the servicing of these loans.

At September 30, 2022 and December 31, 2021, the carrying value of loans serviced by the Company for investors was $507.6 million and $519.5 million, respectively. These loans are not included in the Consolidated Statements of Financial Condition.

    The following tables summarize the aging of loans receivable by portfolio segment, including non-accrual loans and excluding PCD loans at September 30, 2022 and December 31, 2021:

	September 30, 2022
	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Non-accrual		Current		Total
	(In thousands)
Real estate loans:
One-to-four family	$	5,101	$	1,883	$	1,257	$	8,241	$	2,518	$	2,697,873	$	2,706,114
Multifamily	1,092		—		—		1,092		—		1,141,367		1,142,459
Commercial real estate	1,436		—		2,892		4,328		3,373		2,350,458		2,354,786
Construction	544		—		—		544		—		289,106		289,650
Commercial business loans	—		—		840		840		906		496,638		497,478
Consumer loans:
Home equity loans and advances	1,425		40		159		1,624		199		278,200		279,824
Other consumer loans	—		15		—		15		—		2,199		2,214
Total loans	$	9,598	$	1,938	$	5,148	$	16,684	$	6,996	$	7,255,841	$	7,272,525

9.    Loans Receivable and Allowance for Credit Losses (continued)

	December 31, 2021
	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Non-accrual		Current		Total
	(In thousands)
Real estate loans:
One-to-four family	$	3,131	$	1,976	$	373	$	5,480	$	1,416	$	2,086,837	$	2,092,317
Multifamily	—		—		—		—		—		1,041,108		1,041,108
Commercial real estate	2,189		—		1,561		3,750		1,561		2,166,486		2,170,236
Construction	—		—		—		—		—		295,047		295,047
Commercial business loans	412		—		203		615		761		451,617		452,232
Consumer loans:
Home equity loans and advances	108		53		81		242		201		276,321		276,563
Other consumer loans	—		4		—		4		—		1,424		1,428
Total loans	$	5,840	$	2,033	$	2,218	$	10,091	$	3,939	$	6,318,840	$	6,328,931

The Company considers a loan to be delinquent when we have not received a payment within 30 days of its contractual due date. Generally, a loan is designated as a non-accrual loan when the payment of interest is 90 days or more in arrears of its contractual due date. Non-accruing loans are returned to accrual status after there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible. The Company identifies loans that may need to be charged-off as a loss, by reviewing all delinquent loans, classified loans and other loans that management may have concerns about collectability. At September 30, 2022 and December 31, 2021, non-accrual loans totaled $7.0 million and $3.9 million, respectively. Included in non-accrual loans at September 30, 2022 and December 31, 2021, are 11 and 10 loans totaling $1.8 million and $1.7 million, respectively, which are less than 90 days in arrears.

At September 30, 2022 there were no loans past due 90 days or more still accruing interest. At December 31, 2021, there were no loans past due 90 days or more still accruing interest other than COVID-19 related loan forbearances and deferrals. In accordance with the CARES Act, these loans were not included in the aging of loans receivable by portfolio segment in the table above, and the Company continued to accrue interest income during the forbearance or deferral period.

Purchased credit impaired loans ("PCI") were loans acquired at a discount primarily due to deteriorated credit quality. These loans were initially recorded at fair value at acquisition, based upon the present value of expected future cash flows, with no related allowance for credit losses. In connection with the adoption of CECL on January 1, 2022, all loans considered PCI loans prior to that date were converted to purchase credit-deteriorated ("PCD") loans. Loans acquired in a business combination after January 1, 2022 are recorded in accordance with ASC Topic 326, which requires loans as of the acquisition date, that have experienced a more than insignificant deterioration in credit quality since origination to be classified as PCD loans.

At September 30, 2022 and December 31, 2021, PCD loans acquired in the Stewardship Financial Corporation ("Stewardship") acquisition totaled $2.0 million and $2.7 million, respectively, PCD loans acquired in the Roselle Bank acquisition totaled $184,000 and $184,000, respectively, and PCD loans acquired in the Freehold Bank acquisition totaled $3.7 million and $3.9 million, respectively. At September 30, 2022, PCD loans acquired in the RSI Bank acquisition totaled $13.9 million.

    We may obtain physical possession of real estate collateralizing a residential mortgage loan via foreclosure or through an in-substance repossession. At September 30, 2022 and December 31, 2021, the Company had no real estate owned. At September 30, 2022 we had no residential mortgage loans in the process of foreclosure. At December 31, 2021, we had one residential mortgage loan with a carrying value of $87,000 collateralized by residential real estate which was in the process of foreclosure.

9.    Loans Receivable and Allowance for Credit Losses (continued)

    The following tables summarize loans receivable (including PCD loans) and allowance for credit losses by portfolio segment and impairment method at September 30, 2022 and December 31, 2021:

	September 30, 2022
	One-to-Four Family		Multifamily		Commercial Real Estate		Construction		Commercial Business		Home Equity Loans and Advances		Other Consumer Loans		Total
	(In thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	213	$	3	$	98	$	—	$	10	$	6	$	—	$	330
Collectively evaluated for impairment	11,725		7,246		17,540		5,630		7,463		1,861		9		51,474
Loans acquired with deteriorated credit quality	8		—		61		10		7		1		—		87
Total	$	11,946	$	7,249	$	17,699	$	5,640	$	7,480	$	1,868	$	9	$	51,891
Total loans:
Individually evaluated for impairment	$	4,223	$	475	$	16,836	$	—	$	1,237	$	695	$	—	$	23,466
Collectively evaluated for impairment	2,701,891		1,141,984		2,337,950		289,650		496,241		279,129		2,214		7,249,059
Loans acquired with deteriorated credit quality	2,179		—		15,738		1,040		662		152		—		19,771
Total loans	$	2,708,293	$	1,142,459	$	2,370,524	$	290,690	$	498,140	$	279,976	$	2,214	$	7,292,296

9.    Loans Receivable and Allowance for Credit Losses (continued)

	December 31, 2021
	One-to-Four Family		Multifamily		Commercial Real Estate		Construction		Commercial Business		Home Equity Loans and Advances		Other Consumer Loans		Total
	(In thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	258	$	—	$	97	$	—	$	16	$	7	$	—	$	378
Collectively evaluated for impairment	8,540		7,741		16,017		8,943		20,198		866		6		62,311
Loans acquired with deteriorated credit quality	—		—		—		—		—		—		—		—
Total	$	8,798	$	7,741	$	16,114	$	8,943	$	20,214	$	873	$	6	$	62,689
Total loans:
Individually evaluated for impairment	$	5,184	$	762	$	15,830	$	—	$	1,806	$	705	$	—	$	24,287
Collectively evaluated for impairment	2,087,133		1,040,346		2,154,406		295,047		450,426		275,858		1,428		6,304,644
Loans acquired with deteriorated credit quality	431		—		5,426		—		934		—		—		6,791
Total loans	$	2,092,748	$	1,041,108	$	2,175,662	$	295,047	$	453,166	$	276,563	$	1,428	$	6,335,722

    Loan modifications to borrowers experiencing financial difficulties that are considered troubled debt restructurings ("TDRs") primarily involve the lowering of the monthly payments on such loans through either a reduction in interest rate below a market rate, an extension of the term of the loan without a corresponding adjustment to the risk premium reflected in the interest rate, or a combination of these two methods. These modifications generally do not result in the forgiveness of principal or accrued interest. In addition, the Company attempts to obtain additional collateral or guarantor support when modifying such loans. Non-accruing restructured loans may be returned to accrual status when there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible.

    Section 4013 of the CARES Act, “Temporary Relief from Troubled Debt Restructurings,” allowed banks to temporarily suspend certain requirements under GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. The Company elected to account for modifications on certain loans under Section 4013 of the CARES Act or, if the loan modification was not eligible under Section 4013, used the criteria in the COVID-19 guidance to determine when the loan modification was not a TDR in accordance with ASC 310-40. Guidance noted that modification or deferral programs mandated by the federal or a state government related to COVID-19 would not be in the scope of ASC 310-40, such as a state program that requires all institutions within that state to suspend mortgage payments for a specified period. These short-term loan modifications were not treated as a troubled debt restructuring during the short-term modification period if the loan was not in arrears at December 31, 2019. Furthermore, based on current evaluations, generally, we continued the accrual of interest on these loans during the short-term modification period. The Consolidated Appropriations Act, 2021, which was enacted in late December 2020, extended certain provisions of the CARES Act through January 1, 2022, including provisions permitting loan deferral extension requests to not be treated as troubled debt restructurings. Subsequent modifications to these loans are evaluated for troubled debt restructuring accounting treatment.

9.    Loans Receivable and Allowance for Credit Losses (continued)

The following tables present the number of loans modified as TDRs during the three and nine months ended September 30, 2022 and 2021, along with their balances immediately prior to the modification date and post-modification. Post-modification recorded investment represents the net book balance immediately following modification.

	For the Three Months Ended September 30,
	2022					2021
	No. of Loans	Pre-modification Recorded Investment		Post-modification Recorded Investment		No. of Loans	Pre-modification Recorded Investment		Post-modification Recorded Investment
	(Dollars in thousands)
Troubled Debt Restructurings
Real Estate loans:
One-to-four family	—	$	—	$	—	1	$	64	$	66
Total restructured loans	—	$	—	$	—	1	$	64	$	66

	For the Nine Months Ended September 30,
	2022					2021
	No. of Loans	Pre-modification Recorded Investment		Post-modification Recorded Investment		No. of Loans	Pre-modification Recorded Investment		Post-modification Recorded Investment
	(Dollars in thousands)
Troubled Debt Restructurings
Real Estate loans:
One-to-four family	—	$	—	$	—	2	$	285	$	388
Commercial	—	—		—		1	192		211
Consumer loans:
Home equity loans and advances	1	119		119		—	—		—
Total restructured loans	1	$	119	$	119	3	$	477	$	599

9.    Loans Receivable and Allowance for Credit Losses (continued)

The activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2022 and 2021 are as follows:

	For the Three Months Ended September 30,
	One-to-Four Family		Multifamily		Commercial Real Estate		Construction		Commercial Business		Home Equity Loans and Advances		Other Consumer Loans		Totals
	(In thousands)
2022
Balance at beginning of period	$	10,836	$	10,932	$	14,480	$	5,570	$	7,284	$	1,471	$	10	$	50,583
Provision for (reversal of) credit losses	1,394		(3,683)		3,219		70		120		385		11		1,516
Recoveries	—		—		—		—		76		18		—		94
Charge-offs	(284)		—		—		—		—		(6)		(12)		(302)
Balance at end of period	$	11,946	$	7,249	$	17,699	$	5,640	$	7,480	$	1,868	$	9	$	51,891
2021
Balance at beginning of period	$	17,108	$	8,442	$	17,814	$	9,160	$	15,898	$	1,471	$	5	$	69,898
Provision for (reversal of) credit losses	(2,218)		(146)		(171)		322		2,854		(165)		4		480
Recoveries	4		217		77		—		42		7		—		347
Charge-offs	(106)		—		—		—		(69)		(221)		(3)		(399)
Balance at end of period	$	14,788	$	8,513	$	17,720	$	9,482	$	18,725	$	1,092	$	6	$	70,326

9.    Loans Receivable and Allowance for Credit Losses (continued)

	For the Nine Months Ended September 30,
	One-to-Four Family		Multifamily		Commercial Real Estate		Construction		Commercial Business		Home Equity Loans and Advances		Other Consumer Loans		Totals
	(In thousands)
2022
Balance at beginning of period	$	8,798	$	7,741	$	16,114	$	8,943	$	20,214	$	873	$	6	$	62,689
Effect of adopting ASU No. 2016-13 ("CECL")	(2,308)		(2,030)		(4,227)		(2,346)		(5,302)		(229)		(1)		(16,443)
Initial allowance related to PCD loans	131		—		474		3		19		6		—		633
Provision for (reversal of) credit losses	5,364		1,538		5,338		(960)		(7,520)		1,225		19		5,004
Recoveries	338		—		—		—		131		26		—		495
Charge-offs	(377)		—		—		—		(62)		(33)		(15)		(487)
Balance at end of period	$	11,946	$	7,249	$	17,699	$	5,640	$	7,480	$	1,868	$	9	$	51,891
2021
Balance at beginning of period	$	13,586	$	8,897	$	21,784	$	11,271	$	17,384	$	1,748	$	6	$	74,676
Provision for (reversal of) credit losses	1,796		(305)		(4,812)		(1,790)		2,945		(400)		5		(2,561)
Recoveries	18		217		1,014		1		169		52		—		1,471
Charge-offs	(612)		(296)		(266)		—		(1,773)		(308)		(5)		(3,260)
Balance at end of period	$	14,788	$	8,513	$	17,720	$	9,482	$	18,725	$	1,092	$	6	$	70,326

9.    Loans Receivable and Allowance for Credit Losses (continued)

The following tables present loans individually evaluated for impairment by loan segment, excluding PCD loans, at September 30, 2022 and December 31, 2021:

	At September 30, 2022
	Recorded Investment		Unpaid Principal Balance		Specific Allowance
	(In thousands)
With no allowance recorded:
Real estate loans:
One-to-four family	$	1,319	$	1,667	$	—
Multifamily	62		65		—
Commercial real estate	14,924		15,612		—
Commercial business loans	156		412		—
Consumer loans:
Home equity loans and advances	236		328		—
	16,697		18,084		—
With a specific allowance recorded:
Real estate loans:
One-to-four family	2,904		2,922		213
Multifamily	413		413		3
Commercial real estate	1,912		1,915		98
Commercial business loans	1,081		1,081		10
Consumer loans:
Home equity loans and advances	459		459		6
	6,769		6,790		330
Total:
Real estate loans:
One-to-four family	4,223		4,589		213
Multifamily	475		478		3
Commercial real estate	16,836		17,527		98
Commercial business loans	1,237		1,493		10
Consumer loans:
Home equity loans and advances	695		787		6
Total loans	$	23,466	$	24,874	$	330

9.    Loans Receivable and Allowance for Credit Losses (continued)

	At December 31, 2021
	Recorded Investment		Unpaid Principal Balance		Specific Allowance
	(In thousands)
With no allowance recorded:
Real estate loans:
One-to-four family	$	1,882	$	2,421	$	—
Multifamily	762		765		—
Commercial real estate	13,861		14,586		—
Commercial business loans	573		573		—
Consumer loans:
Home equity loans and advances	202		308		—
	17,280		18,653		—
With a specific allowance recorded:
Real estate loans:
One-to-four family	3,302		3,321		258
Commercial real estate	1,969		1,971		97
Commercial business loans	1,233		1,233		16
Consumer loans:
Home equity loans and advances	503		503		7
	7,007		7,028		378
Total:
Real estate loans:
One-to-four family	5,184		5,742		258
Multifamily	762		765		—
Commercial real estate	15,830		16,557		97
Commercial business loans	1,806		1,806		16
Consumer loans:
Home equity loans and advances	705		811		7
	$	24,287	$	25,681	$	378

    Specific allocations of the allowance for credit losses attributable to impaired loans totaled $330,000 and $378,000 at September 30, 2022 and December 31, 2021, respectively. At September 30, 2022 and December 31, 2021, impaired loans for which there was no related allowance for credit losses totaled $16.7 million and $17.3 million, respectively.

    The recorded investment in TDRs totaled $20.1 million at September 30, 2022, of which two loans with an aggregate balance of $353,000 were 60-89 days past due. The remaining loans modified were current at the time of restructuring and have complied with the terms of their restructure agreement at September 30, 2022. The recorded investment in TDRs totaled $22.4 million at December 31, 2021, of which one loan with a balance of $36,000 was 30-59 days past due. The remaining loans modified were current at the time of restructuring and have complied with the terms of their restructure agreement at December 31, 2021.

9.    Loans Receivable and Allowance for Credit Losses (continued)

    The following tables present interest income recognized for loans individually evaluated for impairment, by loan segment, excluding PCD loans for the three and nine months ended September 30, 2022 and 2021:

	For the Three Months Ended September 30,
	2022				2021
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
Real estate loans:
One-to-four family	$	4,251	$	45	$	5,569	$	64
Multifamily	598		6		8,626		10
Commercial real estate	16,086		163		17,477		217
Commercial business loans	1,269		22		2,106		36
Consumer loans:
Home equity loans and advances	777		9		1,101		11
Total loans	$	22,981	$	245	$	34,879	$	338

	For the Nine Months Ended September 30,
	2022				2021
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
Real estate loans:
One-to-four family	$	4,640	$	146	$	5,923	$	229
Multifamily	675		28		11,246		359
Commercial real estate	16,254		568		17,000		329
Commercial business loans	1,447		66		2,226		106
Consumer loans:
Home equity loans and advances	787		29		1,257		32
Total loans	$	23,803	$	837	$	37,652	$	1,055

The Company utilizes an eight-point risk rating system to summarize its loan portfolio into categories with similar risk characteristics. Loans deemed to be “acceptable quality” are rated 1 through 4 (Pass), with a rating of 1 established for loans with minimal risk. Loans that are deemed to be of “questionable quality” are rated 5 (Special Mention) or 6 (Substandard). Loans with adverse classifications are rated 7 (Doubtful) or 8 (Loss). The risk ratings are also confirmed through periodic loan review examinations which are currently performed by both an independent third-party and the Company's credit risk review department. The Company requires an annual review be performed above certain dollar thresholds, depending on loan type, to help determine the appropriate risk ratings. Results from examinations are presented to the Audit Committee of the Board of Directors.

9.    Loans Receivable and Allowance for Credit Losses (continued)

The following table summarizes the Company's loans by year of origination and internally assigned credit risk rating, excluding PCD loans at September 30, 2022 and December 31, 2021:

	Loans by Year of Origination at September 30, 2022
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
	(In thousands)
One-to-Four Family
Pass	$	628,998	$	844,780	$	299,287	$	181,706	$	127,773	$	620,689	$	—	$	—	$	2,703,233
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		643		—		687		322		1,229		—		—		2,881
Total One-to-Four Family	628,998		845,423		299,287		182,393		128,095		621,918		—		—		2,706,114
Multifamily
Pass	177,878		306,208		184,752		208,321		43,451		217,307		—		—		1,137,917
Special mention	—		—		—		—		—		4,542		—		—		4,542
Substandard	—		—		—		—		—		—		—		—		—
Total Multifamily	177,878		306,208		184,752		208,321		43,451		221,849		—		—		1,142,459
Commercial Real Estate
Pass	303,030		398,505		179,623		263,603		233,911		906,137		—		—		2,284,809
Special mention	—		—		—		1,065		15,750		34,248		—		—		51,063
Substandard	—		481		1,286		1,607		—		15,540		—		—		18,914
Total Commercial Real Estate	303,030		398,986		180,909		266,275		249,661		955,925		—		—		2,354,786
Construction
Pass	103,263		107,388		31,126		14,216		6,313		27,344		—		—		289,650
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total Construction	$	103,263	$	107,388	$	31,126	$	14,216	$	6,313	$	27,344	$	—	$	—	$	289,650

9.    Loans Receivable and Allowance for Credit Losses (continued)

	Loans by Year of Origination at September 30, 2022
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
	(In thousands)
Commercial Business
Pass	$	47,082	$	35,305	$	34,044	$	25,527	$	27,075	$	39,171	$	274,439	$	—	$	482,643
Special mention	—		—		57		1,230		1,081		41		3,241		—		5,650
Substandard	—		355		63		207		2,688		348		5,524		—		9,185
Total Commercial Business	47,082		35,660		34,164		26,964		30,844		39,560		283,204		—		497,478
Home Equity Loans and Advances
Pass	21,064		22,599		15,021		13,668		12,226		92,482		102,070		442		279,572
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		20		196		36		—		252
Total Home Equity Loans and Advances	21,064		22,599		15,021		13,668		12,246		92,678		102,106		442		279,824
Other Consumer Loans
Pass	1,388		97		114		122		36		121		336		—		2,214
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total Other Consumer Loans	1,388		97		114		122		36		121		336		—		2,214
Total Loans	$	1,282,703	$	1,716,361	$	745,373	$	711,959	$	470,646	$	1,959,395	$	385,646	$	442	$	7,272,525

9.    Loans Receivable and Allowance for Credit Losses (continued)

	Loans by Year of Origination at December 31, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
	(In thousands)
One-to-Four Family
Pass	$	793,848	$	298,815	$	196,244	$	138,215	$	134,811	$	525,615	$	—	$	—	$	2,087,548
Special mention	—		—		—		—		—		203		—		—		203
Substandard	—		—		1,463		1,420		360		1,323		—		—		4,566
Total One-to-Four family	793,848		298,815		197,707		139,635		135,171		527,141		—		—		2,092,317
Multifamily
Pass	312,738		181,285		231,252		47,024		131,169		137,640		—		—		1,041,108
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total Multifamily	312,738		181,285		231,252		47,024		131,169		137,640		—		—		1,041,108
Commercial Real Estate
Pass	381,222		161,136		278,581		241,669		222,752		803,945		—		—		2,089,305
Special mention	—		—		1,303		16,070		1,885		34,788		—		—		54,046
Substandard	—		386		—		1,561		1,276		23,662		—		—		26,885
Total Commercial Real Estate	381,222		161,522		279,884		259,300		225,913		862,395		—		—		2,170,236
Construction
Pass	107,070		77,549		37,498		41,591		28,814		2,418		—		—		294,940
Special mention	—		—		107		—		—		—		—		—		107
Substandard	—		—		—		—		—		—		—		—		—
Total Construction	$	107,070	$	77,549	$	37,605	$	41,591	$	28,814	$	2,418	$	—	$	—	$	295,047

9.    Loans Receivable and Allowance for Credit Losses (continued)

	Loans by Year of Origination at December 31, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
	(In thousands)
Commercial Business
Pass	$	84,113	$	36,115	$	25,156	$	30,670	$	21,762	$	26,515	$	210,597	$	—	$	434,928
Special mention	246		15		1,729		1,369		18		46		3,291		—		6,714
Substandard	192		71		352		1,084		371		609		7,911		—		10,590
Total Commercial Business	84,551		36,201		27,237		33,123		22,151		27,170		221,799		—		452,232
Home Equity Loans and Advances
Pass	22,393		15,977		15,906		13,146		12,023		100,870		95,484		426		276,225
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		246		92		—		338
Total Home Equity Loans and Advances	22,393		15,977		15,906		13,146		12,023		101,116		95,576		426		276,563
Other Consumer Loans
Pass	659		58		284		60		9		5		353		—		1,428
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total Other Consumer Loans	659		58		284		60		9		5		353		—		1,428
Total Loans	$	1,702,481	$	771,407	$	789,875	$	533,879	$	555,250	$	1,657,885	$	317,728	$	426	$	6,328,931

9.    Loans Receivable and Allowance for Credit Losses (continued)

The Company is required to include unfunded commitments that are expected to be funded in the future within the allowance calculation, other than those that are unconditionally cancellable. To arrive at that reserve, the reserve percentage for each applicable segment is applied to the unused portion of the expected commitment balance and is multiplied by the expected funding rate. To determine the expected funding rate, the Company uses a historical utilization rate for each segment. The allowance for credit losses on off balance sheet exposures is reported in other liabilities in the Consolidated Statements of Financial Condition. The liability represents an estimate of expected credit losses arising from off balance sheet exposures such as unfunded commitments. At September 30, 2022, the balance of the allowance for credit losses on unfunded commitments, included in other liabilities, totaled $6.6 million. The Company recorded a reversal of provision for credit losses on unfunded commitments, included in other non-interest expense in the Consolidated Statements of Income, of $1.7 million and $1.6 million during the three and nine months ended September 30, 2022.

The following table presents the activity in the allowance for credit losses on off balance sheet exposures for the three and nine months ended September 30, 2022:

	Three Months Ended September 30, 2022		Nine Months Ended September 30, 2022
	(In thousands)
Allowance for Credit Losses:
Beginning balance	$	8,358	$	524
Impact of adopting ASU 2016-13 ("CECL") effective January 1, 2022	—		7,674
(Reversal of) provision for credit losses	(1,747)		(1,587)
Balance at September 30, 2022	$	6,611	$	6,611

XML

Leases

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Leases

Leases

    The Company's leases real estate property for branches and office space. At September 30, 2022 and December 31, 2021, all of the Company's leases are classified as operating leases.

    The Company determines if an arrangement is a lease at inception. Topic 842 requires lessees to recognize a right-of-use asset and a lease liability, measured at the present value of the future minimum lease payments, at the lease commencement date. The calculated amount of the right-of-use asset and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of minimum lease payments.

    At September 30, 2022 and December 31, 2021, the weighted average remaining lease term for operating leases was 6.6 years and 7.0 years, respectively, and the weighted average discount rate used in the measurement of operating lease liabilities was 2.34% and 2.13%, respectively.

    The Company elected to account for the lease and non-lease components separately since such amounts are readily determinable under the Company's lease contracts. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are recognized as incurred. Variable lease payments include common area maintenance charges, real estate taxes, repairs and maintenance costs and utilities. Operating and variable lease expenses are recorded in occupancy expense in the Consolidated Statements of Income. During the three months ended September 30, 2022 and 2021, operating and variable lease expenses totaled approximately $668,000 and $504,000, respectively. During the nine months ended September 30, 2022 and 2021, operating and variable lease expenses totaled approximately $2.0 million and $1.7 million, respectively.

    There were no sale and leaseback transactions, leveraged leases or lease transactions with related parties during the three and nine months ended September 30, 2022 and 2021. At September 30, 2022, the Company had not entered into any leases which had not yet commenced.

10.    Leases (continued)

The following table summarizes lease payment obligations for each of the next five years and thereafter as follows:

	Lease Payment Obligations at
	September 30, 2022		December 31, 2021
	(In thousands)
One year or less	$	1,068	$	4,198
After one year to two years	4,288		3,950
After two years to three years	3,748		3,150
After three years to four years	3,079		2,479
After four years to five years	2,777		2,177
Thereafter	6,360		5,340
Total undiscounted cash flows	21,320		21,294
Discount on cash flows	(1,727)		(1,709)
Total lease liability	$	19,593	$	19,585

XML

Deposits

9 Months Ended

Sep. 30, 2022

Deposits [Abstract]

Deposits

Deposits

    Deposits at September 30, 2022 and December 31, 2021 are summarized as follows:

	September 30,		December 31,
	2022		2021
	(In thousands)
Non-interest-bearing demand	$	1,746,668	$	1,712,061
Interest-bearing demand	2,701,551		2,599,987
Money market accounts	712,900		657,156
Savings and club deposits	960,547		822,833
Certificates of deposit	1,943,227		1,778,179
Total deposits	$	8,064,893	$	7,570,216

Included in the above balance at December 31, 2021 are certificates of deposit obtained through brokers totaling $5.0 million that were acquired from Stewardship.

    The aggregate amount of certificates of deposit that meet or exceed $100,000 totaled approximately $1.1 billion and $932.4 million at September 30, 2022 and December 31, 2021, respectively. Interest expense on deposits for the three months ended September 30, 2022 and 2021 totaled $7.0 million and $6.7 million, respectively. Interest expense on deposits for the nine months ended September 30, 2022 and 2021 totaled $16.3 million and $23.4 million, respectively.

11.    Deposits (continued)

Scheduled maturities of certificates of deposit accounts at September 30, 2022 and December 31, 2021 are summarized as follows:

	September 30,		December 31,
	2022		2021
	(In thousands)
One year or less	$	1,032,732	$	1,087,631
After one year to two years	690,540		418,515
After two years to three years	116,000		143,950
After three years to four years	64,870		36,277
After four years	39,085		91,806
	$	1,943,227	$	1,778,179

XML

Stock Based Compensation

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stock Based Compensation

Stock Based Compensation

    At the Company's annual meeting of stockholders 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.

At September 30, 2022, there were 867,610 shares remaining available for future restricted stock awards and 2,128,741 shares remaining available for future stock option grants under the 2019 plan

     On March 22, 2021, 50,203 shares of restricted stock were awarded, with a grant date fair value of $17.86 per share. To fund the grant of restricted common stock, the Company reissued shares from treasury stock.

On March 2, 2022, 51,746 shares of restricted stock were awarded, with a grant date fair value of $21.79 per share. To fund the grant of restricted common stock, the Company issued shares from authorized but unissued shares.

    Restricted shares granted under the 2019 Plan generally vest in equal installments, over 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 were performance awards, which vested upon the satisfactory attainment of certain corporate financial targets during the three months ended September 30, 2022. 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 three months ended September 30, 2022 and 2021, approximately $901,000 and $1.4 million in expense was recognized in regard to these awards. The expected future compensation expense related to the 373,807 non-vested restricted shares outstanding at September 30, 2022 is approximately $5.8 million over a weighted average period of 2.1 years. During the nine months ended September 30, 2022 and 2021, approximately $3.4 million and $4.3 million in expense was recognized in regard to these awards.

12.    Stock Based Compensation (continued)

    The following is a summary of the Company's restricted stock activity during the three and nine months ended September 30, 2022 and 2021:

	Number of Restricted Shares	Weighted Average Grant Date Fair Value
Non-vested at January 1, 2022	1,054,335	$	15.78
Grants	51,746	21.79
Vested	(27,775)	17.86
Forfeited	(31,570)	16.91
Non-vested at March 31, 2022	1,046,736	$	15.98
Forfeited	(5,182)	18.34
Non-vested at June 30, 2022	1,041,554	$	15.97
Vested	(635,951)	15.62
Forfeited	(31,796)	15.87
Non-vested at September 30, 2022	373,807	$	16.58

	Number of Restricted Shares	Weighted Average Grant Date Fair Value
Non-vested at January 1, 2021	1,263,169	$	15.66
Grants	50,203	17.86
Forfeited	(13,846)	15.60
Non-vested at March 31, 2021	1,299,526	$	15.74
Forfeited	(128)	15.60
Non-vested at June 30, 2021	1,299,398	$	15.74
Vested	(163,882)	15.61
Forfeited	(29,882)	15.63
Non-vested at September 30, 2021	1,105,634	$	15.76

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. These stock options granted under the 2019 Plan on such date, vest in equal installments over the service period of three years beginning one year from the date of grant. These 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%.

On March 21, 2022, options to purchase 130,951 shares of Company common stock were awarded with a grant date fair value of $6.51 per option. These stock options granted under the 2019 Plan on such date, vest in equal installments over the service period of three years beginning one year from the date of grant. These stock options were granted at an exercise price of $21.79, 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 six years risk-free rate of return of 2.34%, volatility of 25.31%, and a dividend yield of 0.00%.

12.    Stock Based Compensation (continued)

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 became a public company and does not have sufficient historical price data, the expected volatility is based on the historical daily stock prices of Company stock plus 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 three months ended September 30, 2022 and 2021, approximately $778,000 and $822,000 in expense was recognized in regard to these awards. The expected future compensation expense related to the 1,400,750 non-vested options outstanding at September 30, 2022 is $5.0 million over a weighted average period of 1.7 years. During the nine months ended September 30, 2022 and 2021, approximately $2.3 million and $2.4 million in expense was recognized in regard to these awards.

    The following is a summary of the Company's option activity during the three and nine months ended September 30, 2022 and 2021:

	Number of Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding, January 1, 2022	3,637,542	$	15.78	7.6	$	18,654,905
Granted	130,951	21.79		—	—
Exercised	(62,859)	16.42		—	—
Expired	(1,412)	15.60		—	—
Forfeited	(61,961)	16.84		—	—
Outstanding, March 31, 2022	3,642,261	$	15.92	7.5	$	20,401,381
Exercised	(5,412)	15.60		—	—
Forfeited	(21,801)	17.78		—	—
Outstanding, June 30, 2022	3,615,048	$	15.91	7.2	$	21,335,939
Exercised	(87,025)	15.60		—	—
Expired	(8,704)	15.60		—	—
Forfeited	(153,309)	15.72		—	—
Outstanding, September 30, 2022	3,366,010	$	15.93	6.9	$	17,598,873
Options exercisable at September 30, 2022	1,965,260	$	15.67	6.4	$	10,732,855

12.    Stock Based Compensation (continued)

	Number of Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding, January 1, 2021	3,708,628	$	15.66	8.6	$	—
Granted	109,654	17.86		—	—
Expired	(2,029)	15.60		—	—
Forfeited	(30,118)	15.60		—	—
Outstanding, March 31, 2021	3,786,135	$	15.73	8.4	$	6,673,328
Exercised	(1,661)	15.60		—	$	—
Expired	(7,529)	15.60		—	—
Forfeited	(1,412)	15.60		—	—
Outstanding, June 30, 2021	3,775,533	$	15.73	8.1	$	5,700,258
Exercised	(26,861)	15.60		—	$	—
Expired	(353)	15.60		—
Forfeited	(58,287)	15.73		—	—
Outstanding, September 30, 2021	3,690,032	$	15.73	7.9	$	10,222,527
Options exercisable at September 30, 2021	1,411,976	$	15.64	7.8	$	4,036,196

    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.

    During the three and nine months ended September 30, 2022, the aggregate intrinsic value of options exercised was $507,000 and $896,000, respectively. During the three and nine months ended September 30, 2021, the aggregate intrinsic value of options exercised was $56,186 and $59,991, respectively.

XML

Components of Net Periodic Benefit Costs

9 Months Ended

Sep. 30, 2022

Retirement Benefits [Abstract]

Components of Periodic Benefit Costs

Components of Net Periodic Benefit Cost

    Pension Plan, Retirement Income Maintenance Plan (the "RIM Plan") Post-retirement Plan, and Split-Dollar Life Insurance Plans

    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, newly hired employees are not eligible to participate in the Pension Plan as the Pension Plan has been closed to new employees as of that date.

    The Company also maintains 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 Sections 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 employee's period of active service. Effective January 1, 2019, the Post-retirement Plan has been closed to new hires. The Company also provides life insurance benefits to eligible employees under an endorsement split-dollar life insurance program.

Through the acquisition of the RSI Entities, the Company acquired a funded pension plan, a non-funded post-retirement plan, and a split-dollar life insurance plan which are included in the tables below, based on benefit valuations as of the acquisition date.

13.    Components of Net Periodic Benefit Cost (continued)

Net periodic benefit (income) cost for the Pension Plan, RIM Plan, Post-retirement Plan and Split-Dollar Life Insurance plan benefits for the three and nine months ended September 30, 2022 and 2021, includes the following components:

	For the Three Months Ended September 30,
	Pension Plan				RIM Plan				Post-retirement Plan				Split-Dollar Life Insurance
	2022		2021		2022		2021		2022		2021		2022		2021		Affected Line Item in the Consolidated Statements of Income
	(In thousands)
Service cost	$	1,267	$	1,872	$	93	$	100	$	122	$	130	$	130	$	141	Compensation and employee benefits
Interest cost	2,799		1,902		97		86		185		141		158		125		Other non-interest expense
Expected return on plan assets	(7,183)		(6,661)		—		—		—		—		—		—		Other non-interest expense
Amortization:
Prior service cost	—		—		—		—		—		—		14		14		Other non-interest expense
Net loss	660		—		111		166		78		153		151		191		Other non-interest expense
Net periodic (income) benefit cost	$	(2,457)	$	(2,887)	$	301	$	352	$	385	$	424	$	453	$	471

	For the Nine Months Ended September 30,
	Pension Plan				RIM Plan				Post-retirement Plan				Split-Dollar Life Insurance
	2022		2021		2022		2021		2022		2021		2022		2021		Affected Line Item in the Consolidated Statements of Income
	(In thousands)
Service cost	$	5,199	$	6,172	$	279	$	300	$	319	$	390	$	383	$	423	Compensation and employee benefits
Interest cost	6,911		5,414		291		258		508		423		453		375		Other non-interest expense
Expected return on plan assets	(22,375)		(19,297)		—		—		—		—		—		—		Other non-interest expense
Amortization:
Prior service cost	—		—		—		—		—		—		42		42		Other non-interest expense
Net loss	660		2,000		333		498		234		459		453		573		Other non-interest expense
Net periodic (income) benefit cost	$	(9,605)	$	(5,711)	$	903	$	1,056	$	1,061	$	1,272	$	1,331	$	1,413

For the three and nine months ended September 30, 2022, Columbia Bank made a $10.0 million contribution to the Pension Plan. The net periodic (income) cost for pension benefits, other post-retirement and split-dollar life insurance benefits for the three and nine months ended September 30, 2022, was calculated using the most recent available benefit valuations.

13.    Components of Net Periodic Benefit Cost (continued)

Through the acquisition of the Roselle Entities, the Company acquired a non-contributory defined benefit supplemental executive retirement plan with the only participant being a former president of Roselle Bank. For the three and nine months ended September 30, 2022 and 2021, the Company recorded a net periodic benefit cost of $3,000 and $9,000, and $2,000 and $6,000 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 three and nine months ended September 30, 2022, the Company recorded a net periodic benefit cost of $2,000 and $6,000, respectively, in connection with this plan.

In addition, through the acquisition of the RSI Entities, the Company acquired a non-contributory defined benefit supplemental executive retirement plan with the only participant being a former president of RSI Bank. For the three and nine months ended September 30, 2022, the Company recorded a net periodic benefit cost of $16,000 and $27,000, respectively, in connection with this plan.

XML

Fair Value Measurements

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

    The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The determination of fair values of financial instruments often requires the use of estimates. Where quoted market values in an active market are not readily available, the Company utilizes various valuation techniques to estimate fair value.

    Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

Level 1: Unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access on the measurement date.

Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar instruments in markets that are active or not active, or inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.

Level 3: Prices or valuation techniques that require unobservable inputs that are both significant to the fair value measurement and unobservable (i.e., supported by minimal or no market activity). Valuation techniques include the use of option pricing models, discounted cash flow models and similar techniques.

    A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

    The methods described below were used to measure fair value of financial instruments as reflected in the tables below on a recurring basis at September 30, 2022 and December 31, 2021.

14.    Fair Value Measurements (continued)

Debt Securities Available for Sale, at Fair Value

    For debt securities available for sale, fair value was estimated using a market approach. The majority of these securities are fixed income instruments that are not quoted on an exchange, but are traded in active markets. Prices for these instruments are obtained through third-party data service providers or dealer market participants with which the Company has historically transacted both purchases and sales of securities. Prices obtained from these sources include market quotations, matrix pricing and discounted cash flow pricing. Matrix pricing, a Level 2 input, is a mathematical technique used principally to value certain securities to a benchmark or to comparable securities. The Company evaluates the quality of Level 2 matrix pricing through comparison to similar assets with greater liquidity and evaluation of projected cash flows. Discounted cash flows, a Level 3 input, is estimated by discounting the expected future cash flows using the current rates for securities with similar credit ratings and similar remaining maturities. As the Company is responsible for the determination of fair value, it performs quarterly analysis on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Company compares the prices received from the pricing service to a secondary pricing source. Additionally, the Company compares changes in the reported market values and returns to relevant market indices to assess the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has not historically resulted in an adjustment in the prices obtained from the pricing service. The Company may hold debt instruments issued by the U.S. government and U.S. government-sponsored agencies that are traded in active markets with readily accessible quoted market prices that are considered Level 1 inputs. The Company classifies the estimated fair value of its loan portfolio as Level 3.

Equity Securities, at Fair Value

    The Company holds equity securities that are traded in active markets with readily accessible quoted market prices that are considered Level 1 inputs. A trust preferred security that is not traded in an active market and Federal Home Loan Mortgage Corporation ("FHLMC") and Federal National Mortgage Association ("FNMA") preferred stock are considered Level 2 instruments. In addition, Level 2 instruments include Atlantic Community Bankers Bank ("ACCB") stock, which is based on redemption at par value and can only be sold to the issuing ACBB or another institution that holds ACBB stock.

Derivatives

    The Company records all derivatives included in other assets and liabilities on the Consolidated Statements of Financial Condition at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. See note 16 for disclosures related to the accounting treatment for derivatives.

    The fair value of the Company's derivatives is determined using discounted cash flow analysis using observable market-based inputs, which are considered Level 2 inputs.

14.    Fair Value Measurements (continued)

    The following tables present the assets and liabilities reported on the Consolidated Statements of Financial Condition at their fair values at September 30, 2022 and December 31, 2021, by level within the fair value hierarchy:

	September 30, 2022
			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)
Debt securities available for sale:
U.S. government and agency obligations	$	63,281	$	54,771	$	8,510	$	—
Mortgage-backed securities and collateralized mortgage obligations	1,223,652		—		1,223,652		—
Municipal obligations	3,557		—		887		2,670
Corporate debt securities	81,231		—		71,532		9,699
Total debt securities available for sale	1,371,721		54,771		1,304,581		12,369
Equity securities	3,453		3,115		338		—
Derivative assets	19,897		—		19,897		—
	$	1,395,071	$	57,886	$	1,324,816	$	12,369
Derivative liabilities	19,511		$	—	$	19,511	$	—

	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)
Debt securities available for sale:
U.S. government and agency obligations	$	34,879	$	34,879	$	—	$	—
Mortgage-backed securities and collateralized mortgage obligations	1,554,359		—		1,554,359		—
Municipal obligations	4,179		—		4,179		—
Corporate debt securities	110,430		—		110,430		—
Total debt securities available for sale	1,703,847		34,879		1,668,968		—
Equity securities	2,710		2,364		346
Derivative assets	9,492		—		9,492		—
	$	1,716,049	$	37,243	$	1,678,806	$	—
Derivative liabilities	$	17,366	$	—	$	17,366	$	—

14.    Fair Value Measurements (continued)

The table below provides activity of assets reported as Level 3 for the period ended September 30, 2022:

	Significant Unobservable Inputs (Level 3)
	(In thousands)
Debt securities available for sale:
Balance of recurring Level 3 assets -December 31, 2021	$	—
Transfers into Level 3 assets	13,539
Balance of recurring Level 3 assets - June 30, 2022	13,539
Maturity of Level 3 asset	(914)
Change in fair value of Level 3 assets	(256)
Balance of recurring Level 3 assets - September 30, 2022	$	12,369

The fair value of investments placed in Level 3 is estimated by discounting the expected future cash flows using reasonably available current rates for comparable new issue securities with similar structure, including original maturity, call date, and assumptions about risk. Discounted cash flow estimated valuations are subsequently validated against comparable structures as an approximation of value.

Expected cash flows were projected based on contractual cash flows. Two private placement corporate debt securities classified as available for sale and four private placement municipal obligations classified as available for sale were transferred from Level 2 to Level 3 during the nine months ended September 30, 2022. There were no transfers to Level 3 assets during the three months ended September 30, 2022.

Private placement debt security cash flows were discounted to a market yield of 8.00% (weighted average is 8.00%), and the cash flows for private placement municipal obligations were discounted to a market yield ranging from 3.02% to 3.05% (weighted average is 3.04%).

The period end valuations were support by an analysis prepared by an independent third party market participant and approved by management.

There were no Level 3 assets measured at fair value on a recurring basis at December 31, 2021.

Assets Measured at Fair Value on a Non-Recurring Basis

    The valuation techniques described below were used to estimate fair value of financial instruments measured on a non-recurring basis at September 30, 2022 and December 31, 2021.

Impaired Loans

    Loans which meet certain criteria are evaluated individually for impairment. Loan impairment is measured based on the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the loan's observable market price or the fair value of the collateral if the loan is collateral dependent. For loans measured for impairment based on the fair value of the underlying collateral, fair value was estimated using a market approach. The Company measures the fair value of collateral underlying impaired loans primarily through obtaining independent appraisals that rely upon quoted market prices for similar assets in active markets. These appraisals include adjustments, on an individual case-by-case basis, to comparable assets based on the appraisers’ market knowledge and experience, as well as adjustments for estimated costs to sell between 6.0% and 8.0%. The Company classifies these loans as Level 3 within the fair value hierarchy.

14.    Fair Value Measurements (continued)

Mortgage Servicing Rights, Net ("MSR's")

    Mortgage servicing rights are carried at the lower of cost or estimated fair value. The estimated fair value of MSRs is obtained through an analysis of future cash flows, incorporating assumptions that market participants would use in determining fair value including market discount rates, prepayments speeds, servicing income, servicing costs, default rates and other market driven data, including the market's perception of future interest rate movements. The prepayment speed and the discount rate are considered two of the most significant inputs in the model. A significant degree of judgment is involved in valuing the mortgage servicing rights using Level 3 inputs. The use of different assumptions could have a significant effect on this fair value estimate.

The following tables present the assets and liabilities reported on the Consolidated Statements of Financial Condition at their fair values on a non-recurring basis at September 30, 2022 and December 31, 2021, by level within the fair value hierarchy:

	September 30, 2022
			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)
Mortgage servicing rights	$	2,309	$	—	$	—	$	2,309
	$	2,309	$	—	$	—	$	2,309

	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)
Impaired loans	$	1,213	$	—	$	—	$	1,213
Mortgage servicing rights	1,906		—		—		1,906
	$	3,119	$	—	$	—	$	3,119

The following table presents information for Level 3 assets measured at fair value on a non-recurring basis at September 30, 2022 and December 31, 2021:

	September 30, 2022
	Fair Value		Valuation Methodology	Unobservable Inputs	Range of Inputs	Weighted Average
	(Dollars in thousands)
Mortgage servicing rights	$	2,309	Discounted cash flow	Prepayment speeds and discount rates (1)	4.2% - 21.1%	6.9	%

14.    Fair Value Measurements (continued)

	December 31, 2021
	Fair Value		Valuation Methodology	Unobservable Inputs	Range of Inputs		Weighted Average
	(Dollars in thousands)
Impaired loans	$	1,213	Other	Contracted sales price of collateral	—	%	—	%
Mortgage servicing rights	$	1,906	Discounted cash flow	Prepayment speeds and discount rates (2)	7.5% - 24.9%		12.7	%
(1) Value of SBA servicing rights based on a discount rate of 13.25%.
(2) Value of SBA servicing rights based on a discount rate of 10.25%.

Other Fair Value Disclosures

    The Company is required to disclose estimated fair value of financial instruments, both assets and liabilities on and off the balance sheet, for which it is practicable to estimate fair value. A description of the valuation methodologies used for those assets and liabilities not recorded at fair value on a recurring or non-recurring basis are set forth below.

Cash and Cash Equivalents

    For cash and due from banks, federal funds sold and short-term investments, the carrying amount approximates fair value due to their nature and short-term maturities.

Debt Securities Held to Maturity

    For debt securities held to maturity, fair value was estimated using a market approach. The majority of the Company’s securities are fixed income instruments that are not quoted on an exchange, but are traded in active markets. Prices for these instruments are obtained through third-party data service providers or dealer market participants with which the Company has historically transacted both purchases and sales of securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing, a Level 2 input, is a mathematical technique used principally to value certain securities to a benchmark or to comparable securities. The Company evaluates the quality of Level 2 matrix pricing through comparison to similar assets with greater liquidity and evaluation of projected cash flows. As the Company is responsible for the determination of fair value, it performs quarterly analysis on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Company compares the prices received from the pricing service to a secondary pricing source. Additionally, the Company compares changes in the reported market values and returns to relevant market indices to assess the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has not historically resulted in an adjustment in the prices obtained from the pricing service. The Company also holds debt instruments issued by the U.S. government and U.S. government-sponsored agencies that are traded in active markets with readily accessible quoted market prices that are considered Level 1 inputs within the fair value hierarchy.

Federal Home Loan Bank Stock ("FHLB")

    The fair value of FHLB stock is based on redemption at par value and can only be sold to the issuing FHLB, to other FHLBs, or to other member banks. As such, the Company's FHLB stock is recorded at cost, or par value, and is evaluated for impairment each reporting period by considering the ultimate recoverability of the investment rather than temporary declines in value. The Company classifies the estimated fair value as Level 2 within the fair value hierarchy.

14.    Fair Value Measurements (continued)

Loans Receivable

    Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial mortgage, residential mortgage, commercial, construction, and consumer and other. Each loan category is further segmented into fixed and adjustable rate interest terms and into performing and non-performing categories.

    The fair value of performing loans was estimated using a combination of techniques, including a discounted cash flow model that utilizes a discount rate that reflects the Company's current pricing for loans with similar characteristics and remaining maturity, adjusted by an amount for estimated credit losses inherent in the portfolio at the balance sheet date. The rates take into account the expected yield curve, as well as an adjustment for prepayment risk, when applicable. The Company classifies the estimated fair value of its loan portfolio as Level 3.

    The fair value for significant non-performing loans was based on recent external appraisals of collateral securing such loans, adjusted for the timing of anticipated cash flows. The Company classifies the estimated fair value of its non-performing loan portfolio as Level 3.

Deposits

    The fair value of deposits with no stated maturity, such as demand, money market, and savings and club deposits are payable on demand at each reporting date and classified as Level 2. The estimated fair value of certificates of deposit was based on the discounted value of contractual cash flows. The discount rate was estimated using the Company’s current rates offered for deposits with similar remaining maturities. The Company classifies the estimated fair value of its certificates of deposit portfolio as Level 2.

Borrowings

    The fair value of borrowings was estimated by discounting future cash flows using rates available for debt with similar terms and maturities and is classified by the Company as Level 2 within the fair value hierarchy.

Commitments to Extend Credit and Letters of Credit

    The fair value of commitments to extend credit and letters of credit was estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counter-parties. For fixed rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value estimates of commitments to extend credit and letters of credit are deemed immaterial.

14.    Fair Value Measurements (continued)

    The following tables present the assets and liabilities reported on the Consolidated Statements of Financial Condition at their fair values at September 30, 2022 and December 31, 2021:

	September 30, 2022
			Fair Value Measurements
	Carrying Value		Total 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)
Financial assets:
Cash and cash equivalents	$	102,048	$	102,048	$	102,048	$	—	$	—
Debt securities available for sale	1,371,721		1,371,721		54,771		1,304,581		12,369
Debt securities held to maturity	425,077		373,494		—		373,494		—
Equity securities	3,453		3,453		3,115		338		—
Federal Home Loan Bank stock	37,726		37,726		—		37,726		—
Loans receivable, net	7,274,332		6,441,458		—		—		6,441,458
Derivative assets	19,897		19,897		—		19,897		—
Financial liabilities:
Deposits	$	8,064,893	$	8,001,656	$	—	$	8,001,656	$	—
Borrowings	674,018		667,380		—		667,380		—
Derivative liabilities	19,511		19,511		—		19,511		—

	December 31, 2021
			Fair Value Measurements
	Carrying Value		Total 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)
Financial assets:
Cash and cash equivalents	$	70,963	$	70,963	$	70,963	$	—	$	—
Debt securities available for sale	1,703,847		1,703,847		34,879		1,668,968		—
Debt securities held to maturity	429,734		434,789		—		434,789		—
Equity securities	2,710		2,710		2,364		346		—
Federal Home Loan Bank stock	23,141		23,141		—		23,141		—
Loans receivable, net	6,297,912		6,457,766		—		—		6,457,766
Derivative assets	9,492		9,492		—		9,492		—
Financial liabilities:
Deposits	$	7,570,216	$	7,564,210	$	—	$	7,564,210	$	—
Borrowings	377,309		378,810		—		378,810		—
Derivative liabilities	17,366		17,366		—		17,366		—

14.    Fair Value Measurements (continued)

Limitations

    Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because limited markets exist for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

    Fair value estimates are based on existing on and off balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial assets or liabilities include goodwill and intangibles assets, deferred tax assets, office properties and equipment, and bank-owned life insurance.

XML

Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Other Comprehensive Income (Loss)

Other Comprehensive Income (Loss)

    The following tables present the components of other comprehensive income (loss), both gross and net of tax, for the three and nine months ended September 30, 2022 and 2021:

	For the Three Months Ended September 30,
	2022						2021
	Before Tax		Tax Effect		After Tax		Before Tax		Tax Effect		After Tax
	(In thousands)
Components of other comprehensive income (loss):
Unrealized (loss) on debt securities available for sale:	$	(65,744)	$	18,589	$	(47,155)	$	(13,609)	$	3,666	$	(9,943)
Accretion of unrealized (loss) on debt securities reclassified as held to maturity	(19)		6		(13)		(3)		1		(2)
Reclassification adjustment for gain included in net income	—		—		—		2,296		(505)		1,791
	(65,763)		18,595		(47,168)		(11,316)		3,162		(8,154)
Derivatives:
Unrealized gain on swap contracts accounted for as cash flow hedges	1,639		(457)		1,182		2,035		(568)		1,467
	1,639		(457)		1,182		2,035		(568)		1,467
Employee benefit plans:
Amortization of prior service cost included in net income	(14)		3		(11)		(14)		4		(10)
Reclassification adjustment of actuarial net (loss) included in net income	(339)		95		(244)		(1,511)		422		(1,089)
Change in funded status of retirement obligations	1,148		(211)		937		3,050		(852)		2,198
	795		(113)		682		1,525		(426)		1,099
Total other comprehensive (loss)	$	(63,329)	$	18,025	$	(45,304)	$	(7,756)	$	2,168	$	(5,588)

15.    Other Comprehensive Income (Loss) (continued)

	For the Nine Months Ended September 30,
	2022						2021
	Before Tax		Tax Effect		After Tax		Before Tax		Tax Effect		After Tax
	(In thousands)
Components of other comprehensive income (loss):
Unrealized (loss) on debt securities available for sale:	$	(198,171)	$	55,528	$	(142,643)	$	(26,804)	$	4,615	$	(22,189)
Accretion of unrealized (loss) on debt securities reclassified as held to maturity	(28)		7		(21)		(24)		24		—
Reclassification adjustment for gain included in net income	210		(59)		151		2,015		(426)		1,589
	(197,989)		55,476		(142,513)		(24,813)		4,213		(20,600)
Derivatives:
Unrealized gain on swap contracts accounted for as cash flow hedges	7,171		(2,004)		5,167		9,182		(1,084)		8,098
	7,171		(2,004)		5,167		9,182		(1,084)		8,098
Employee benefit plans:
Amortization of prior service cost included in net income	(42)		11		(31)		(42)		11		(31)
Reclassification adjustment of actuarial net (loss) included in net income	(1,017)		285		(732)		(4,533)		1,266		(3,267)
Change in funded status of retirement obligations	(23,851)		6,730		(17,121)		40,541		(3,971)		36,570
	(24,910)		7,026		(17,884)		35,966		(2,694)		33,272
Total other comprehensive (loss) income	$	(215,728)	$	60,498	$	(155,230)	$	20,335	$	435	$	20,770

15.    Other Comprehensive Income (Loss) (continued)

    The following tables present the changes in the components of accumulated other comprehensive income (loss), net of tax, for the three and nine months ended September 30, 2022 and 2021:

	For the Three Months Ended September 30,
	2022								2021
	Unrealized (Losses) on Debt Securities Available for Sale		Unrealized (Losses) on Swaps		Employee Benefit Plans		Accumulated Other Comprehensive (Loss)		Unrealized Gains on Debt Securities Available for Sale		Unrealized (Losses) on Swaps		Employee Benefit Plans		Accumulated Other Comprehensive (Loss)
	(In thousands)
Balance at beginning of period	$	(93,701)	$	(932)	$	(61,212)	$	(155,845)	$	18,582	$	(10,225)	$	(51,624)	$	(43,267)
Current period changes in other comprehensive (loss) income	(47,168)		1,182		682		(45,304)		(8,154)		1,467		1,099		(5,588)
Total other comprehensive (loss) income	$	(140,869)	$	250	$	(60,530)	$	(201,149)	$	10,428	$	(8,758)	$	(50,525)	$	(48,855)

	For the Nine Months Ended September 30,
	2022								2021
	Unrealized (Losses) on Debt Securities Available for Sale		Unrealized (Losses) on Swaps		Employee Benefit Plans		Accumulated Other Comprehensive (Loss)		Unrealized Gains on Debt Securities Available for Sale		Unrealized (Losses) on Swaps		Employee Benefit Plans		Accumulated Other Comprehensive (Loss)
	(In thousands)
Balance at beginning of period	$	1,644	$	(4,917)	$	(42,646)	$	(45,919)	$	31,028	$	(16,856)	$	(83,797)	$	(69,625)
Current period changes in other comprehensive (loss) income	(142,513)		5,167		(17,884)		(155,230)		(20,600)		8,098		33,272		20,770
Total other comprehensive (loss) income	$	(140,869)	$	250	$	(60,530)	$	(201,149)	$	10,428	$	(8,758)	$	(50,525)	$	(48,855)

15.    Other Comprehensive Income (Loss) (continued)

    The following tables reflect amounts reclassified from accumulated other comprehensive income (loss) to the Consolidated Statements of Income and the affected line item in the statement where net income is presented for the three and nine months ended September 30, 2022 and 2021:

	Accumulated Other Comprehensive Income (Loss) Components
	For the Three Months Ended September 30,				Affected Line Items in the Consolidated Statements of Income
	2022		2021
	(In thousands)
Reclassification adjustment for gain included in net income	$	—	$	2,296	Gain on securities transactions
Reclassification adjustment of actuarial net (loss) included in net income	(339)		(1,511)		Other non-interest expense
Total before tax	(339)		785
Income tax benefit	95		(83)
Net of tax	$	(244)	$	702

	Accumulated Other Comprehensive Income (Loss) Components
	For the Nine Months Ended September 30,				Affected Line Items in the Consolidated Statements of Income
	2022		2021
	(In thousands)
Reclassification adjustment for gain included in net income	$	210	$	2,015	Gain on securities transactions
Reclassification adjustment of actuarial net (loss) included in net income	(1,017)		(4,533)		Other non-interest expense
Total before tax	(807)		(2,518)
Income tax benefit	226		840
Net of tax	$	(581)	$	(1,678)

XML

Derivatives and Hedging Activities

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Derivatives and Hedging Activities

    The Company uses derivative financial instruments as components of its market risk management, principally to manage interest rate risk. Certain derivatives are entered into in connection with transactions with commercial customers. Derivatives are not used for speculative purposes. All derivatives are recognized as either assets or liabilities in the Consolidated Statements of Financial Condition, reported at fair value and presented on a gross basis. Until a derivative is settled, a favorable change in fair value results in an unrealized gain that is recognized as an asset, while an unfavorable change in fair value results in an unrealized loss that is recognized as a liability. 

The Company generally applies hedge accounting to its derivatives used for market risk management purposes. Hedge accounting is permitted only if specific criteria are met, including a requirement that a highly effective relationship exists between the derivative instrument and the hedged item, both at inception of the hedge and on an ongoing basis. Changes in the fair value of effective fair value hedges are recognized in current earnings (with the change in fair value of the hedged asset or liability also recognized in earnings). Changes in the fair value of effective cash flow hedges are recognized in other comprehensive income (loss) until earnings are affected by the variability in cash flows of the designated hedged item. Ineffective portions of hedge results are recognized in current earnings. Changes in the fair value of derivatives for which hedge accounting is not applied are recognized in current earnings.

The Company formally documents at inception all relationships between the derivative instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transactions. This process includes linking all derivatives that are designated as hedges to specific assets and liabilities, or to specific firm commitments. The Company also formally assesses, both at inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the fair values or cash flows of the hedged items. If it is determined that a derivative is not highly effective or has ceased to be a highly effective hedge, the Company would discontinue hedge accounting prospectively. Gains or losses resulting from the termination of a derivative accounted for as a cash flow hedge remain in other comprehensive income (loss) and is (accreted) amortized to earnings over the remaining period of the former hedging relationship.

Certain derivative financial instruments are offered to certain commercial banking customers to manage their risk of exposure and risk management strategies. These derivative instruments consist primarily of currency forward contracts and interest rate swap contracts. The risk associated with these transactions is mitigated by simultaneously entering into similar transactions having essentially offsetting terms with a third party. In addition, the Company executes interest rate swaps with third parties in order to hedge the interest rate risk of short-term FHLB advances.

    Currency Forward Contracts. At September 30, 2022 and December 31, 2021, the Company had no currency forward contracts in place with commercial banking customers.

    Interest Rate Swaps. At September 30, 2022 and December 31, 2021, the Company had 54 and 52 interest rate swaps in place with commercial banking customers executed by offsetting interest rate swaps with third parties, with aggregated notional amounts of $205.0 million and $183.4 million, respectively. These derivatives are not designated as hedges and are not speculative. These interest rate swaps do not meet hedge accounting requirements.

    At September 30, 2022 and December 31, 2021, the Company had 10 and 14 interest rate swaps with notional amounts of $140.0 million and $190.0 million, respectively, hedging certain FHLB advances. These interest rate swaps meet the cash flow hedge accounting requirements. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counter-party in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount.

At September 30, 2022, the Company had two interest rate swaps hedged against pools of floating rate commercial loans with notional amounts totaling $100.0 million. These swaps meet the cash flow hedge accounting requirements. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counter-party in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. At December 31, 2021, the Company had no interest rate swaps hedged against pools of floating rate commercial loans.

    For the three and nine months ended September 30, 2022 and 2021, the Company did not record any hedge ineffectiveness associated with these contracts.

16.    Derivatives and Hedging Activities (continued)

    The tables below present the fair value of the Company’s derivative financial instruments as well as their classification in the Consolidated Statements of Financial Condition at September 30, 2022 and December 31, 2021:

	September 30, 2022
	Asset Derivative			Liability Derivative
	Consolidated Statements of Financial Condition	Fair Value		Consolidated Statements of Financial Condition	Fair Value
		(In thousands)
Derivatives:
Interest rate swaps	Other Assets	$	19,897	Other Liabilities	$	19,511
Total derivative instruments		$	19,897		$	19,511

	December 31, 2021
	Asset Derivative			Liability Derivative
	Consolidated Statements of Financial Condition	Fair Value		Consolidated Statements of Financial Condition	Fair Value
		(In thousands)
Derivatives:
Interest rate swaps	Other Assets	$	9,492	Other Liabilities	$	17,366
Total derivative instruments		$	9,492		$	17,366

    For the three months ended September 30, 2022 and 2021, gains of $118,000 and losses of $12,000, respectively, were recorded for changes in fair value of interest rate swaps with third parties. For the nine months ended September 30, 2022 and 2021, gains of $594,000 and $189,000, respectively, were recorded for changes in fair value of interest rate swaps with third parties.

    At September 30, 2022 and December 31, 2021, accrued interest was $71,000 and $567,000.

    The Company has agreements with counterparties that contain a provision that if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default of its derivative obligations.

    At September 30, 2022, the termination value of derivatives in a net asset position, which includes accrued interest, was $315,000. The Company has collateral posting thresholds with certain of its derivative counterparties, and has posted collateral of $482,000 against its obligations under these agreements.

XML

Revenue Recognition

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

The Company's revenue includes net interest income on financial instruments and non-interest income. Most of the Company's revenue is not within the scope of Accounting Standards Codification Topic 606 which does not apply to revenue associated with financial instruments, including interest income on loans and securities, which comprise the majority of the Company's revenue. Revenue-generating activities that are within the scope of this guidance are components of non-interest income. These revenue streams can generally be classified as demand deposit account fees, title insurance fees, insurance agency income and other fees.

17.    Revenue Recognition (continued)

The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and nine months ended September 30, 2022 and 2021.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
	(In thousands)
Non-interest income
In-scope of Topic 606:
Demand deposit account fees	$	1,510	$	986	$	4,129	$	2,682
Title insurance fees	796		1,431		2,788		4,554
Insurance agency income	38		—		83		—
Other non-interest income	2,194		1,934		6,334		5,633
Total in-scope non-interest income	4,538		4,351		13,334		12,869
Total out-of-scope non-interest income	3,626		4,523		9,540		18,991
Total non-interest income	$	8,164	$	8,874	$	22,874	$	31,860

    Demand deposit account fees include monthly maintenance fees and service charges. These fees are generally derived as a result of either transaction-based or serviced-based services. The Company's performance obligation for these services is generally satisfied, and revenue recognized, at the time the transaction is completed or the service rendered. Fees for these services are generally received from the customer either at the time of the transaction or monthly.

Title insurance fees are generally recognized at the time the transaction closes or when the service is rendered.

RSI Insurance Agency, Inc. performs the function of an insurance intermediary, by introducing the policyholder and insurer for life and health, and property and casualty insurance, and is compensated by a commission fee for placement of an insurance policy. Commission and fees are generally recognized as of the effective date of the insurance policy. Commission revenues related to installment billings are recognized on the invoice date. Subsequent commission adjustments are recognized upon the receipt of notification from insurance companies concerning matters necessitating such adjustments.

Other non-interest income includes check printing fees, traveler's check fees, gift card fees, branch service fees, overdraft fees, account analysis fees, other deposit related fees, wealth management related fee income which includes annuity fees, brokerage commissions, and asset management fees. Wealth management related fee income represent fees earned from customers as consideration for asset management and investment advisory services provided by a third party. The Company's performance obligation is generally satisfied monthly and the resulting fees are recognized monthly based upon the month-end market value of the assets under management and the applicable fee rate. The Company does not earn performance-based incentives. The Company's performance obligation for these transaction-based services are generally satisfied, and related revenue recognized, at the time the transaction closes or when the service is rendered or a point in time when the service is completed.

Also included in other fees are debit card and ATM fees which are transaction-based. Debit card revenue is primarily comprised of interchange fees earned when a customer's Company card is processed through a card payment network. ATM fees are largely generated when a Company cardholder uses a non-Company ATM, or a non-Company cardholder uses a Company ATM. The Company's performance obligation for these services is satisfied when the service is rendered. Payment is generally received at time of transaction or monthly.

Out-of-scope non-interest income primarily consists of income from bank-owned life insurance, loan prepayment and servicing fees, net fees loan level swaps, gains and losses on the sale of loans and securities, credit card interchange income, changes in the fair value of equity securities, and proceeds from an insurance settlement. None of these revenue streams are subject to the requirements of Topic 606.

XML

Subsequent Events	9 Months Ended
	Sep. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events    The Company has evaluated events subsequent to September 30, 2022 and through the financial statement issuance date of November 9, 2022, and concluded that no material events occurred that would require disclosure.

XML

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2022

Accounting Standards Update and Change in Accounting Principle [Abstract]

Acquisitions

Described below are the methods used to determine the fair values of the significant assets acquired and liabilities assumed:

Cash and cash equivalents. The estimated fair values of cash and cash equivalents approximate their stated face amounts, as

these financial instruments are either due on demand or have short-term maturities.

Debt securities available for sale. The estimated fair values of the debt securities were calculated utilizing Level 2 inputs. The majority of the acquired securities were fixed income instruments that are not quoted on an exchange, but are traded in active markets. The prices for these instruments are obtained through an independent pricing service when available, or dealer market participants with whom the Company has historically transacted with for both purchases and sales of securities. The prices are derived from market quotations and matrix pricing. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, and the bond's terms and conditions, among other things. Management reviewed the data and assumptions used in pricing securities by its third party provider to ensure the highest level of significant inputs are derived from market observable data.

Loans receivable. The acquired loan portfolio was segregated into pools for valuation purposes primarily based on loan type,

non-accrual status, and credit risk rating. The estimated fair values were computed by discounting the expected cash flows from the respective pools. Cash flows were estimated by using valuation models that incorporated estimates of current key assumptions such as prepayment speeds, default rates, and loss severity rates. The process included: (1) projecting monthly principal and/or interest cash flows based on the contractual terms of the loans, including both maturity and contractual amortization; (2) adjusting projected cash flows for expected losses and prepayments, where appropriate; (3) developing a discount rate based on the relative risk of the cash flows, considering the loan type, liquidity risk, the maturity of the loans, servicing costs, and a required return on capital; and (4) discounting the projected cash flows to a present value, to arrive at the calculated value of the loans.

The methods used to estimate the fair values of loans are extremely sensitive to the assumptions and estimates used. While management attempted to use assumptions and estimates that best reflected the acquired loan portfolios and current market conditions, a greater degree of subjectivity is inherent in the values than in those determined in active markets.

Office properties and equipment, net. The fair value of land and buildings was estimated using current appraisals. Acquired

equipment was not material. Buildings are amortized over their estimated useful lives. Equipment is amortized or depreciated over their estimated useful lives usually ranging from three to fifteen years.

Goodwill. Goodwill is not amortized for book purposes: however, it is reviewed at least annually for impairment and is not deductible for tax purposes.

Core deposit intangibles. Core deposit intangibles ("CDI") are the measure of the value of non-maturity deposits in a business combination. The fair value of the CDI was calculated utilizing the cost savings approach, the expected cost savings attributable to the core deposits funding relative to an alternative source of funding, using a discounted cash flow present value methodology. Key inputs and assumptions utilized in the discounted cash flow present value methodology include core deposit balances and rates paid, the cost of an additional funding source, the aggregate life of deposits and truncation points, non-interest deposit costs, and the immediate deposit outflow assumption.

2.    Acquisitions (continued)

Deposits. The fair values of deposit liabilities with no stated maturity (i.e., non-interest bearing and interest-bearing demand deposit accounts, money market and savings and club accounts) are equal to the carrying amounts payable on demand. The fair value of certificates of deposit represent contractual cash flows, discounted to present value using interest rates currently offered on deposits with similar characteristics and remaining maturities.

Borrowings. The fair values of borrowings consisting of FHLB advances were estimated by discounting future cash flows using market discount rates for borrowings with similar characteristics, terms and remaining maturities.

Recent Accounting Pronouncements

Accounting Pronouncement Adopted in 2022

In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("CECL"), further amended by ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. Topic 326 pertains to the measurement of credit losses on financial instruments. This update requires the measurement of all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better determine their credit loss estimates. This update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. This update was effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2019.

    The Company elected to defer the adoption of the CECL methodology until December 31, 2020 as permitted by the enacted Coronavirus Aid, Relief and Economic Security Act ("CARES Act"). In late December 2020, the Consolidated Appropriations Act, 2021 was enacted, and extended certain provisions of the CARES Act, which allowed the Company to extend the adoption of CECL until January 1, 2022. The Company elected to extend its adoption of CECL in accordance with this legislation, and adopted the above mentioned ASUs related to Financial Instruments -Credit Losses (Topic 326) using a modified retrospective approach.

The Company adopted ASU 2016-13 on January 1, 2022 for all financial assets measured at amortized cost and off balance sheet credit exposures. Results for the three months ended March 31, 2022 are presented under Accounting Standards Codification 326, Financial Instruments - Credit Losses, while prior period amounts continue to be reported with previously applicable GAAP and have not been restated. Effective January 1, 2022, the Company recorded a $12.1 million decrease in the allowance for credit losses on loans (previously allowance for loan losses), established a $353,000 allowance for credit losses on debt securities available for sale, and recorded a $5.5 million increase in the liability for off balance sheet credit exposures, which resulted in a total cumulative effect adjustment of $6.2 million, net of tax, and an increase to retained earnings.

Accounting Pronouncement Not Yet Adopted    

In March 2022, the FASB issued ASU 2022-02, Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures. ASU 2022-02 addresses areas identified by the FASB as part of its post-implementation review of the credit losses standard (ASU 2016-13) that introduced the CECL model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancing and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. For entities that have adopted ASU 2016-13, this ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements.

Loans Receivable and Allowance for Credit Losses

On January 1, 2022, the Company adopted CECL (ASC Topic 326), which replaced the historical incurred loss methodology with an expected loss methodology. The loan portfolio segmentation was expanded to seven portfolio segments taking into consideration common loan attributes and risk characteristics, as well as historical reporting metrics and data availability. Disclosures at and for the periods ended December 31, 2021 and September 30, 2021, are presented in accordance with the expanded segmentation adopted in conjunction with CECL, when appropriate. The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of loans receivable. Accrued interest receivable on loans receivable is reported as a component of accrued interest receivable on the Consolidated Statement of Financial Condition, which totaled $26.3 million at September 30, 2022, and is excluded from the estimate of credit losses.

The allowance for credit losses is a valuation account that reflects management’s evaluation of the current expected credit losses in the loan portfolio. The Company maintains the allowance for credit losses through provisions for credit losses that are charged to income. Charge-offs against the allowance for credit losses are taken on loans where management determines that the collection of loan principal and interest is unlikely. Recoveries made on loans that have been charged-off are credited to the allowance for credit losses.

Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience for both the Company and peers provides the basis for the estimation of expected credit losses, where observed credit losses are converted to probability of default rate through the use of segment-specific loss given default risk factors that convert default rates to loss severity based on industry-level, observed relationships between the two variables for each segment, primarily due to the nature of the underlying collateral. These risk factors were assessed for reasonableness against the Company’s own loss experience and adjusted in certain cases when the relationship between the Company’s historical default and loss severity deviate from that of the wider industry. The historical probability of default ("PD") curves, together with corresponding economic conditions, establish a quantitative relationship between economic conditions and loan performance through an economic cycle.

Using the historical relationship between economic conditions and loan performance, management’s expectation of future loan performance is incorporated using an externally developed economic forecast. This forecast is applied over a period that management has determined to be reasonable and supportable. Beyond the period over which management can develop or source a reasonable and supportable forecast, the model will revert to long-term average economic conditions using a straight-line, time-based methodology. The Company's current forecast period is six quarters, with a four quarter reversion period to historical average macroeconomic factors.

The allowance for credit losses is measured on a collective (pool) basis, with both a quantitative and qualitative analysis that is applied on a quarterly basis, when similar risk characteristics exist. The respective quantitative allowance for each segment is measured using an economic forecast, discounted cash flow modeling methodology in which distinct, segment-specific multi-variate regression models are applied to an external economic forecast. Under the discounted cash flows methodology, expected credit losses are estimated over the effective life of the loans by measuring the difference between the net present value of modeled cash flows and amortized cost basis. Contractual cash flows over the contractual life of the loans are the basis for modeled cash flows, adjusted for

9.    Loans Receivable and Allowance for Credit Losses (continued)

modeled defaults and expected prepayments and discounted at the loan-level effective interest rate. The contractual term excludes expected extensions, renewals, and modifications. After quantitative considerations, management applies additional qualitative adjustments so that the allowance for credit loss is reflective of the estimate of lifetime losses that exist in the loan portfolio at the balance sheet date.

Portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Management developed segments for estimating loss based on type of borrower and collateral, which is generally based upon federal call report segmentation. The segments have been combined or sub-segmented as needed to ensure loans of similar risk profiles are appropriately pooled.

The allowance for credit losses on loans individually evaluated for impairment is based upon loans that have been identified through the Company’s loan monitoring process. This process includes the review of delinquent, restructured, and charged-off loans.

    Management believes the primary risks inherent in the portfolio are a general decline in the economy, a decline in real estate market values, rising unemployment, and increases in interest rates in the absence of economic improvement. Any one or a combination of these events may adversely affect a borrower's ability to repay its loan, resulting in increased delinquencies and loan losses. Accordingly, the Company has recorded loan losses at a level which is estimated to represent the current risk in its loan portfolio. Management considers it important to maintain the ratio of the allowance for credit losses to total loans at an acceptable level considering the current composition of the loan portfolio.

Fair Value Measurements

Debt Securities Available for Sale, at Fair Value

    For debt securities available for sale, fair value was estimated using a market approach. The majority of these securities are fixed income instruments that are not quoted on an exchange, but are traded in active markets. Prices for these instruments are obtained through third-party data service providers or dealer market participants with which the Company has historically transacted both purchases and sales of securities. Prices obtained from these sources include market quotations, matrix pricing and discounted cash flow pricing. Matrix pricing, a Level 2 input, is a mathematical technique used principally to value certain securities to a benchmark or to comparable securities. The Company evaluates the quality of Level 2 matrix pricing through comparison to similar assets with greater liquidity and evaluation of projected cash flows. Discounted cash flows, a Level 3 input, is estimated by discounting the expected future cash flows using the current rates for securities with similar credit ratings and similar remaining maturities. As the Company is responsible for the determination of fair value, it performs quarterly analysis on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Company compares the prices received from the pricing service to a secondary pricing source. Additionally, the Company compares changes in the reported market values and returns to relevant market indices to assess the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has not historically resulted in an adjustment in the prices obtained from the pricing service. The Company may hold debt instruments issued by the U.S. government and U.S. government-sponsored agencies that are traded in active markets with readily accessible quoted market prices that are considered Level 1 inputs. The Company classifies the estimated fair value of its loan portfolio as Level 3.

Equity Securities, at Fair Value

    The Company holds equity securities that are traded in active markets with readily accessible quoted market prices that are considered Level 1 inputs. A trust preferred security that is not traded in an active market and Federal Home Loan Mortgage Corporation ("FHLMC") and Federal National Mortgage Association ("FNMA") preferred stock are considered Level 2 instruments. In addition, Level 2 instruments include Atlantic Community Bankers Bank ("ACCB") stock, which is based on redemption at par value and can only be sold to the issuing ACBB or another institution that holds ACBB stock.

Derivatives

    The Company records all derivatives included in other assets and liabilities on the Consolidated Statements of Financial Condition at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. See note 16 for disclosures related to the accounting treatment for derivatives.

    The fair value of the Company's derivatives is determined using discounted cash flow analysis using observable market-based inputs, which are considered Level 2 inputs.

Impaired Loans

    Loans which meet certain criteria are evaluated individually for impairment. Loan impairment is measured based on the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the loan's observable market price or the fair value of the collateral if the loan is collateral dependent. For loans measured for impairment based on the fair value of the underlying collateral, fair value was estimated using a market approach. The Company measures the fair value of collateral underlying impaired loans primarily through obtaining independent appraisals that rely upon quoted market prices for similar assets in active markets. These appraisals include adjustments, on an individual case-by-case basis, to comparable assets based on the appraisers’ market knowledge and experience, as well as adjustments for estimated costs to sell between 6.0% and 8.0%. The Company classifies these loans as Level 3 within the fair value hierarchy.

14.    Fair Value Measurements (continued)

Mortgage Servicing Rights, Net ("MSR's")

    Mortgage servicing rights are carried at the lower of cost or estimated fair value. The estimated fair value of MSRs is obtained through an analysis of future cash flows, incorporating assumptions that market participants would use in determining fair value including market discount rates, prepayments speeds, servicing income, servicing costs, default rates and other market driven data, including the market's perception of future interest rate movements. The prepayment speed and the discount rate are considered two of the most significant inputs in the model. A significant degree of judgment is involved in valuing the mortgage servicing rights using Level 3 inputs. The use of different assumptions could have a significant effect on this fair value estimate.

Other Fair Value Disclosures

    The Company is required to disclose estimated fair value of financial instruments, both assets and liabilities on and off the balance sheet, for which it is practicable to estimate fair value. A description of the valuation methodologies used for those assets and liabilities not recorded at fair value on a recurring or non-recurring basis are set forth below.

Cash and Cash Equivalents

    For cash and due from banks, federal funds sold and short-term investments, the carrying amount approximates fair value due to their nature and short-term maturities.

Debt Securities Held to Maturity

    For debt securities held to maturity, fair value was estimated using a market approach. The majority of the Company’s securities are fixed income instruments that are not quoted on an exchange, but are traded in active markets. Prices for these instruments are obtained through third-party data service providers or dealer market participants with which the Company has historically transacted both purchases and sales of securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing, a Level 2 input, is a mathematical technique used principally to value certain securities to a benchmark or to comparable securities. The Company evaluates the quality of Level 2 matrix pricing through comparison to similar assets with greater liquidity and evaluation of projected cash flows. As the Company is responsible for the determination of fair value, it performs quarterly analysis on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Company compares the prices received from the pricing service to a secondary pricing source. Additionally, the Company compares changes in the reported market values and returns to relevant market indices to assess the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has not historically resulted in an adjustment in the prices obtained from the pricing service. The Company also holds debt instruments issued by the U.S. government and U.S. government-sponsored agencies that are traded in active markets with readily accessible quoted market prices that are considered Level 1 inputs within the fair value hierarchy.

Federal Home Loan Bank Stock ("FHLB")

    The fair value of FHLB stock is based on redemption at par value and can only be sold to the issuing FHLB, to other FHLBs, or to other member banks. As such, the Company's FHLB stock is recorded at cost, or par value, and is evaluated for impairment each reporting period by considering the ultimate recoverability of the investment rather than temporary declines in value. The Company classifies the estimated fair value as Level 2 within the fair value hierarchy.

14.    Fair Value Measurements (continued)

Loans Receivable

    Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial mortgage, residential mortgage, commercial, construction, and consumer and other. Each loan category is further segmented into fixed and adjustable rate interest terms and into performing and non-performing categories.

    The fair value of performing loans was estimated using a combination of techniques, including a discounted cash flow model that utilizes a discount rate that reflects the Company's current pricing for loans with similar characteristics and remaining maturity, adjusted by an amount for estimated credit losses inherent in the portfolio at the balance sheet date. The rates take into account the expected yield curve, as well as an adjustment for prepayment risk, when applicable. The Company classifies the estimated fair value of its loan portfolio as Level 3.

    The fair value for significant non-performing loans was based on recent external appraisals of collateral securing such loans, adjusted for the timing of anticipated cash flows. The Company classifies the estimated fair value of its non-performing loan portfolio as Level 3.

Deposits

    The fair value of deposits with no stated maturity, such as demand, money market, and savings and club deposits are payable on demand at each reporting date and classified as Level 2. The estimated fair value of certificates of deposit was based on the discounted value of contractual cash flows. The discount rate was estimated using the Company’s current rates offered for deposits with similar remaining maturities. The Company classifies the estimated fair value of its certificates of deposit portfolio as Level 2.

Borrowings

    The fair value of borrowings was estimated by discounting future cash flows using rates available for debt with similar terms and maturities and is classified by the Company as Level 2 within the fair value hierarchy.

Commitments to Extend Credit and Letters of Credit

    The fair value of commitments to extend credit and letters of credit was estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counter-parties. For fixed rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value estimates of commitments to extend credit and letters of credit are deemed immaterial.

Limitations

    Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because limited markets exist for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

    Fair value estimates are based on existing on and off balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial assets or liabilities include goodwill and intangibles assets, deferred tax assets, office properties and equipment, and bank-owned life insurance.

XML

Acquisitions (Tables)

9 Months Ended

Sep. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of recognized identified assets acquired and liabilities assumed

The following table sets forth assets acquired and liabilities assumed in the acquisition of the RSI Entities, at their estimated fair values as of the closing date of the transaction:

	May 1, 2022
	(In thousands)
Assets acquired:
Cash and cash equivalents	$	140,769
Debt securities available for sale	79,024
Equity securities	1,075
Federal Home Loan Bank Stock	906
Loans receivable	335,501
Accrued interest receivable	910
Office properties and equipment, net	7,296
Bank-owned life insurance	13,033
Deferred tax asset, net	3,633
Core deposit intangibles	10,271
Other assets	2,723
Total assets acquired	$	595,141
Liabilities assumed:
Deposits	$	502,732
Borrowings	5,762
Advance payments by borrowers for taxes and insurance	1,341
Accrued expenses and other liabilities	10,568
Total liabilities assumed	$	520,403
Net assets acquired	$	74,738
Fair market value of stock issued to Columbia Bank MHC for purchase	102,741
Goodwill recorded at merger	$	28,003

XML

Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the three and nine months ended September 30, 2022 and 2021:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
	(Dollars in thousands, except per share data)
Net income	$	20,919	$	20,982	$	64,282	$	68,715
Shares:
Weighted average shares outstanding - basic	106,926,864		102,977,254		105,440,345		104,486,520
Effect of dilutive securities	607,634		—		599,895		—
Weighted average shares outstanding - diluted	107,534,498		102,977,254		106,040,240		104,486,520
Earnings per share:
Basic	$	0.20	$	0.20	$	0.61	$	0.66
Diluted	$	0.19	$	0.20	$	0.61	$	0.66

XML

Debt Securities Available for Sale (Tables)

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of amortized cost, gross unrealized gains, gross unrealized losses and the fair value of securities available-for-sale

Debt securities available for sale at September 30, 2022 and December 31, 2021 are summarized as follows:

	September 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
	(In thousands)
U.S. government and agency obligations	$	67,491	$	—	$	(4,210)	$	63,281
Mortgage-backed securities and collateralized mortgage obligations	1,399,397		122		(175,867)		1,223,652
Municipal obligations	3,698		—		(141)		3,557
Corporate debt securities	88,565		6		(7,340)		81,231
	$	1,559,151	$	128	$	(187,558)	$	1,371,721

	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
			(In thousands)
U.S. government and agency obligations	$	34,711	$	404	$	(236)	$	34,879
Mortgage-backed securities and collateralized mortgage obligations	1,553,491		14,141		(13,273)		1,554,359
Municipal obligations	4,159		20		—		4,179
Corporate debt securities	109,018		2,378		(966)		110,430
	$	1,701,379	$	16,943	$	(14,475)	$	1,703,847

Schedule of securities by contractual maturity

The amortized cost and fair value of debt securities available for sale at September 30, 2022, by contractual final maturity, is shown below. Expected maturities may differ from contractual maturities due to prepayment or early call options exercised by the issuer.

	September 30, 2022
	Amortized Cost		Fair Value
	(In thousands)
One year or less	$	919	$	901
More than one year to five years	68,971		65,791
More than five years to ten years	89,864		81,377
	$	159,754	$	148,069
Mortgage-backed securities and collateralized mortgage obligations	1,399,397		1,223,652
	$	1,559,151	$	1,371,721

The amortized cost and fair value of debt securities held to maturity at September 30, 2022, by contractual final maturity, is shown below. Expected maturities may differ from contractual maturities due to prepayment or early call options exercised by the issuer.

	September 30, 2022
	Amortized Cost		Fair Value
	(In thousands)
More than one year to five years	$	19,875	$	18,282
More than five years to ten years	19,996		16,479
More than ten years	10,000		7,523
	49,871		42,284
Mortgage-backed securities and collateralized mortgage obligations	375,206		331,210
	$	425,077	$	373,494

Debt securities, available-for-sale, unrealized loss position, fair value

The following tables summarize the fair value and gross unrealized losses of those securities that reported an unrealized loss at September 30, 2022 and December 31, 2021 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:

	September 30, 2022
	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)
U.S. government and agency obligations	$	54,464	$	(3,104)	$	8,817	$	(1,106)	$	63,281	$	(4,210)
Mortgage-backed securities and collateralized mortgage obligations	696,364		(72,154)		504,328		(103,713)		1,200,692		(175,867)
Municipal obligations	3,557		(141)		—		—		3,557		(141)
Corporate debt securities	70,286		(6,300)		8,960		(1,040)		79,246		(7,340)
	$	824,671	$	(81,699)	$	522,105	$	(105,859)	$	1,346,776	$	(187,558)

6.    Debt Securities Available for Sale (continued)

	December 31, 2021
	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)
U.S. government and agency obligations	$	14,488	$	(236)	$	—	$	—	$	14,488	$	(236)
Mortgage-backed securities and collateralized mortgage obligations	820,746		(11,892)		62,407		(1,381)		883,153		(13,273)
Corporate debt securities	29,221		(671)		4,705		(295)		33,926		(966)
	$	864,455	$	(12,799)	$	67,112	$	(1,676)	$	931,567	$	(14,475)

Debt Securities, Available-for-sale, Allowance for Credit Loss

The following table presents the activity in the allowance for credit losses on debt securities available for sale for the three and nine months ended September 30, 2022:

	Three Months Ended September 30, 2022		Nine Months Ended September 30, 2022
	(In thousands)
Allowance for Credit Losses:
Beginning balance	$	—	$	—
Impact of adopting ASU 2016-13 (CECL) effective January 1, 2022	—		490
(Reversal of ) credit losses	—		(490)
Balance at September 30, 2022	$	—	$	—

XML

Debt Securities Held to Maturity (Tables)

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of amortized cost, gross unrealized gains, gross unrealized losses and the fair value of securities held-to-maturity

Debt securities held to maturity at September 30, 2022 and December 31, 2021 are summarized as follows:

	September 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Allowance for Credit Losses		Fair Value
	(In thousands)
U.S. government and agency obligations	$	49,871	$	—	$	(7,587)	$	—	$	42,284
Mortgage-backed securities and collateralized mortgage obligations	375,206		—		(43,996)		—		331,210
	$	425,077	$	—	$	(51,583)	$	—	$	373,494

	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
	(In thousands)
U.S. government and agency obligations	$	44,870	$	—	$	(759)	$	44,111
Mortgage-backed securities and collateralized mortgage obligations	384,864		6,741		(927)		390,678
	$	429,734	$	6,741	$	(1,686)	$	434,789

Schedule of securities by contractual maturity

The amortized cost and fair value of debt securities available for sale at September 30, 2022, by contractual final maturity, is shown below. Expected maturities may differ from contractual maturities due to prepayment or early call options exercised by the issuer.

	September 30, 2022
	Amortized Cost		Fair Value
	(In thousands)
One year or less	$	919	$	901
More than one year to five years	68,971		65,791
More than five years to ten years	89,864		81,377
	$	159,754	$	148,069
Mortgage-backed securities and collateralized mortgage obligations	1,399,397		1,223,652
	$	1,559,151	$	1,371,721

The amortized cost and fair value of debt securities held to maturity at September 30, 2022, by contractual final maturity, is shown below. Expected maturities may differ from contractual maturities due to prepayment or early call options exercised by the issuer.

	September 30, 2022
	Amortized Cost		Fair Value
	(In thousands)
More than one year to five years	$	19,875	$	18,282
More than five years to ten years	19,996		16,479
More than ten years	10,000		7,523
	49,871		42,284
Mortgage-backed securities and collateralized mortgage obligations	375,206		331,210
	$	425,077	$	373,494

Schedule of held-to-maturity securities reported in a continuous unrealized loss position

The following tables summarize the fair value and gross unrealized losses of those securities that reported an unrealized loss at September 30, 2022 and December 31, 2021 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:

	September 30, 2022
	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)
U.S. government and agency obligations	$	4,967	$	(32)	$	37,316	$	(7,555)	$	42,283	$	(7,587)
Mortgage-backed securities and collateralized mortgage obligations	322,117		(41,399)		9,093		(2,597)		331,210		(43,996)
	$	327,084	$	(41,431)	$	46,409	$	(10,152)	$	373,493	$	(51,583)

	December 31, 2021
	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)
U.S. government and agency obligations	$	44,111	$	(759)	$	—	$	—	$	44,111	$	(759)
Mortgage-backed securities and collateralized mortgage obligations	79,036		(927)		—		—		79,036		(927)
	$	123,147	$	(1,686)	$	—	$	—	$	123,147	$	(1,686)

XML

Loans Receivable and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

Loans receivable at September 30, 2022 and December 31, 2021 are summarized as follows:

	September 30,		December 31,
	2022		2021
	(In thousands)
Real estate loans:
One-to-four family	$	2,706,114	$	2,092,317
Multifamily	1,142,459		1,041,108
Commercial real estate	2,354,786		2,170,236
Construction	289,650		295,047
Commercial business loans	497,478		452,232
Consumer loans:
Home equity loans and advances	279,824		276,563
Other consumer loans	2,214		1,428
Total gross loans	7,272,525		6,328,931
Purchased credit-deteriorated ("PCD") loans	19,771		6,791
Net deferred loan costs, fees and purchased premiums and discounts	33,927		24,879
Loans receivable	$	7,326,223	$	6,360,601

Financing Receivable, Past Due

The following tables summarize the aging of loans receivable by portfolio segment, including non-accrual loans and excluding PCD loans at September 30, 2022 and December 31, 2021:

	September 30, 2022
	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Non-accrual		Current		Total
	(In thousands)
Real estate loans:
One-to-four family	$	5,101	$	1,883	$	1,257	$	8,241	$	2,518	$	2,697,873	$	2,706,114
Multifamily	1,092		—		—		1,092		—		1,141,367		1,142,459
Commercial real estate	1,436		—		2,892		4,328		3,373		2,350,458		2,354,786
Construction	544		—		—		544		—		289,106		289,650
Commercial business loans	—		—		840		840		906		496,638		497,478
Consumer loans:
Home equity loans and advances	1,425		40		159		1,624		199		278,200		279,824
Other consumer loans	—		15		—		15		—		2,199		2,214
Total loans	$	9,598	$	1,938	$	5,148	$	16,684	$	6,996	$	7,255,841	$	7,272,525

9.    Loans Receivable and Allowance for Credit Losses (continued)

	December 31, 2021
	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Non-accrual		Current		Total
	(In thousands)
Real estate loans:
One-to-four family	$	3,131	$	1,976	$	373	$	5,480	$	1,416	$	2,086,837	$	2,092,317
Multifamily	—		—		—		—		—		1,041,108		1,041,108
Commercial real estate	2,189		—		1,561		3,750		1,561		2,166,486		2,170,236
Construction	—		—		—		—		—		295,047		295,047
Commercial business loans	412		—		203		615		761		451,617		452,232
Consumer loans:
Home equity loans and advances	108		53		81		242		201		276,321		276,563
Other consumer loans	—		4		—		4		—		1,424		1,428
Total loans	$	5,840	$	2,033	$	2,218	$	10,091	$	3,939	$	6,318,840	$	6,328,931

Financing Receivable, Allowance for Credit Loss

The following tables summarize loans receivable (including PCD loans) and allowance for credit losses by portfolio segment and impairment method at September 30, 2022 and December 31, 2021:

	September 30, 2022
	One-to-Four Family		Multifamily		Commercial Real Estate		Construction		Commercial Business		Home Equity Loans and Advances		Other Consumer Loans		Total
	(In thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	213	$	3	$	98	$	—	$	10	$	6	$	—	$	330
Collectively evaluated for impairment	11,725		7,246		17,540		5,630		7,463		1,861		9		51,474
Loans acquired with deteriorated credit quality	8		—		61		10		7		1		—		87
Total	$	11,946	$	7,249	$	17,699	$	5,640	$	7,480	$	1,868	$	9	$	51,891
Total loans:
Individually evaluated for impairment	$	4,223	$	475	$	16,836	$	—	$	1,237	$	695	$	—	$	23,466
Collectively evaluated for impairment	2,701,891		1,141,984		2,337,950		289,650		496,241		279,129		2,214		7,249,059
Loans acquired with deteriorated credit quality	2,179		—		15,738		1,040		662		152		—		19,771
Total loans	$	2,708,293	$	1,142,459	$	2,370,524	$	290,690	$	498,140	$	279,976	$	2,214	$	7,292,296

9.    Loans Receivable and Allowance for Credit Losses (continued)

	December 31, 2021
	One-to-Four Family		Multifamily		Commercial Real Estate		Construction		Commercial Business		Home Equity Loans and Advances		Other Consumer Loans		Total
	(In thousands)
Allowance for credit losses:
Individually evaluated for impairment	$	258	$	—	$	97	$	—	$	16	$	7	$	—	$	378
Collectively evaluated for impairment	8,540		7,741		16,017		8,943		20,198		866		6		62,311
Loans acquired with deteriorated credit quality	—		—		—		—		—		—		—		—
Total	$	8,798	$	7,741	$	16,114	$	8,943	$	20,214	$	873	$	6	$	62,689
Total loans:
Individually evaluated for impairment	$	5,184	$	762	$	15,830	$	—	$	1,806	$	705	$	—	$	24,287
Collectively evaluated for impairment	2,087,133		1,040,346		2,154,406		295,047		450,426		275,858		1,428		6,304,644
Loans acquired with deteriorated credit quality	431		—		5,426		—		934		—		—		6,791
Total loans	$	2,092,748	$	1,041,108	$	2,175,662	$	295,047	$	453,166	$	276,563	$	1,428	$	6,335,722

The activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2022 and 2021 are as follows:

	For the Three Months Ended September 30,
	One-to-Four Family		Multifamily		Commercial Real Estate		Construction		Commercial Business		Home Equity Loans and Advances		Other Consumer Loans		Totals
	(In thousands)
2022
Balance at beginning of period	$	10,836	$	10,932	$	14,480	$	5,570	$	7,284	$	1,471	$	10	$	50,583
Provision for (reversal of) credit losses	1,394		(3,683)		3,219		70		120		385		11		1,516
Recoveries	—		—		—		—		76		18		—		94
Charge-offs	(284)		—		—		—		—		(6)		(12)		(302)
Balance at end of period	$	11,946	$	7,249	$	17,699	$	5,640	$	7,480	$	1,868	$	9	$	51,891
2021
Balance at beginning of period	$	17,108	$	8,442	$	17,814	$	9,160	$	15,898	$	1,471	$	5	$	69,898
Provision for (reversal of) credit losses	(2,218)		(146)		(171)		322		2,854		(165)		4		480
Recoveries	4		217		77		—		42		7		—		347
Charge-offs	(106)		—		—		—		(69)		(221)		(3)		(399)
Balance at end of period	$	14,788	$	8,513	$	17,720	$	9,482	$	18,725	$	1,092	$	6	$	70,326

9.    Loans Receivable and Allowance for Credit Losses (continued)

	For the Nine Months Ended September 30,
	One-to-Four Family		Multifamily		Commercial Real Estate		Construction		Commercial Business		Home Equity Loans and Advances		Other Consumer Loans		Totals
	(In thousands)
2022
Balance at beginning of period	$	8,798	$	7,741	$	16,114	$	8,943	$	20,214	$	873	$	6	$	62,689
Effect of adopting ASU No. 2016-13 ("CECL")	(2,308)		(2,030)		(4,227)		(2,346)		(5,302)		(229)		(1)		(16,443)
Initial allowance related to PCD loans	131		—		474		3		19		6		—		633
Provision for (reversal of) credit losses	5,364		1,538		5,338		(960)		(7,520)		1,225		19		5,004
Recoveries	338		—		—		—		131		26		—		495
Charge-offs	(377)		—		—		—		(62)		(33)		(15)		(487)
Balance at end of period	$	11,946	$	7,249	$	17,699	$	5,640	$	7,480	$	1,868	$	9	$	51,891
2021
Balance at beginning of period	$	13,586	$	8,897	$	21,784	$	11,271	$	17,384	$	1,748	$	6	$	74,676
Provision for (reversal of) credit losses	1,796		(305)		(4,812)		(1,790)		2,945		(400)		5		(2,561)
Recoveries	18		217		1,014		1		169		52		—		1,471
Charge-offs	(612)		(296)		(266)		—		(1,773)		(308)		(5)		(3,260)
Balance at end of period	$	14,788	$	8,513	$	17,720	$	9,482	$	18,725	$	1,092	$	6	$	70,326

The following table presents the activity in the allowance for credit losses on off balance sheet exposures for the three and nine months ended September 30, 2022:

	Three Months Ended September 30, 2022		Nine Months Ended September 30, 2022
	(In thousands)
Allowance for Credit Losses:
Beginning balance	$	8,358	$	524
Impact of adopting ASU 2016-13 ("CECL") effective January 1, 2022	—		7,674
(Reversal of) provision for credit losses	(1,747)		(1,587)
Balance at September 30, 2022	$	6,611	$	6,611

Financing Receivable, Troubled Debt Restructuring

The following tables present the number of loans modified as TDRs during the three and nine months ended September 30, 2022 and 2021, along with their balances immediately prior to the modification date and post-modification. Post-modification recorded investment represents the net book balance immediately following modification.

	For the Three Months Ended September 30,
	2022					2021
	No. of Loans	Pre-modification Recorded Investment		Post-modification Recorded Investment		No. of Loans	Pre-modification Recorded Investment		Post-modification Recorded Investment
	(Dollars in thousands)
Troubled Debt Restructurings
Real Estate loans:
One-to-four family	—	$	—	$	—	1	$	64	$	66
Total restructured loans	—	$	—	$	—	1	$	64	$	66

	For the Nine Months Ended September 30,
	2022					2021
	No. of Loans	Pre-modification Recorded Investment		Post-modification Recorded Investment		No. of Loans	Pre-modification Recorded Investment		Post-modification Recorded Investment
	(Dollars in thousands)
Troubled Debt Restructurings
Real Estate loans:
One-to-four family	—	$	—	$	—	2	$	285	$	388
Commercial	—	—		—		1	192		211
Consumer loans:
Home equity loans and advances	1	119		119		—	—		—
Total restructured loans	1	$	119	$	119	3	$	477	$	599

Impaired Financing Receivables

The following tables present loans individually evaluated for impairment by loan segment, excluding PCD loans, at September 30, 2022 and December 31, 2021:

	At September 30, 2022
	Recorded Investment		Unpaid Principal Balance		Specific Allowance
	(In thousands)
With no allowance recorded:
Real estate loans:
One-to-four family	$	1,319	$	1,667	$	—
Multifamily	62		65		—
Commercial real estate	14,924		15,612		—
Commercial business loans	156		412		—
Consumer loans:
Home equity loans and advances	236		328		—
	16,697		18,084		—
With a specific allowance recorded:
Real estate loans:
One-to-four family	2,904		2,922		213
Multifamily	413		413		3
Commercial real estate	1,912		1,915		98
Commercial business loans	1,081		1,081		10
Consumer loans:
Home equity loans and advances	459		459		6
	6,769		6,790		330
Total:
Real estate loans:
One-to-four family	4,223		4,589		213
Multifamily	475		478		3
Commercial real estate	16,836		17,527		98
Commercial business loans	1,237		1,493		10
Consumer loans:
Home equity loans and advances	695		787		6
Total loans	$	23,466	$	24,874	$	330

9.    Loans Receivable and Allowance for Credit Losses (continued)

	At December 31, 2021
	Recorded Investment		Unpaid Principal Balance		Specific Allowance
	(In thousands)
With no allowance recorded:
Real estate loans:
One-to-four family	$	1,882	$	2,421	$	—
Multifamily	762		765		—
Commercial real estate	13,861		14,586		—
Commercial business loans	573		573		—
Consumer loans:
Home equity loans and advances	202		308		—
	17,280		18,653		—
With a specific allowance recorded:
Real estate loans:
One-to-four family	3,302		3,321		258
Commercial real estate	1,969		1,971		97
Commercial business loans	1,233		1,233		16
Consumer loans:
Home equity loans and advances	503		503		7
	7,007		7,028		378
Total:
Real estate loans:
One-to-four family	5,184		5,742		258
Multifamily	762		765		—
Commercial real estate	15,830		16,557		97
Commercial business loans	1,806		1,806		16
Consumer loans:
Home equity loans and advances	705		811		7
	$	24,287	$	25,681	$	378

The following tables present interest income recognized for loans individually evaluated for impairment, by loan segment, excluding PCD loans for the three and nine months ended September 30, 2022 and 2021:

	For the Three Months Ended September 30,
	2022				2021
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
Real estate loans:
One-to-four family	$	4,251	$	45	$	5,569	$	64
Multifamily	598		6		8,626		10
Commercial real estate	16,086		163		17,477		217
Commercial business loans	1,269		22		2,106		36
Consumer loans:
Home equity loans and advances	777		9		1,101		11
Total loans	$	22,981	$	245	$	34,879	$	338

	For the Nine Months Ended September 30,
	2022				2021
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
Real estate loans:
One-to-four family	$	4,640	$	146	$	5,923	$	229
Multifamily	675		28		11,246		359
Commercial real estate	16,254		568		17,000		329
Commercial business loans	1,447		66		2,226		106
Consumer loans:
Home equity loans and advances	787		29		1,257		32
Total loans	$	23,803	$	837	$	37,652	$	1,055

Financing Receivable Credit Quality Indicators

The following table summarizes the Company's loans by year of origination and internally assigned credit risk rating, excluding PCD loans at September 30, 2022 and December 31, 2021:

	Loans by Year of Origination at September 30, 2022
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
	(In thousands)
One-to-Four Family
Pass	$	628,998	$	844,780	$	299,287	$	181,706	$	127,773	$	620,689	$	—	$	—	$	2,703,233
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		643		—		687		322		1,229		—		—		2,881
Total One-to-Four Family	628,998		845,423		299,287		182,393		128,095		621,918		—		—		2,706,114
Multifamily
Pass	177,878		306,208		184,752		208,321		43,451		217,307		—		—		1,137,917
Special mention	—		—		—		—		—		4,542		—		—		4,542
Substandard	—		—		—		—		—		—		—		—		—
Total Multifamily	177,878		306,208		184,752		208,321		43,451		221,849		—		—		1,142,459
Commercial Real Estate
Pass	303,030		398,505		179,623		263,603		233,911		906,137		—		—		2,284,809
Special mention	—		—		—		1,065		15,750		34,248		—		—		51,063
Substandard	—		481		1,286		1,607		—		15,540		—		—		18,914
Total Commercial Real Estate	303,030		398,986		180,909		266,275		249,661		955,925		—		—		2,354,786
Construction
Pass	103,263		107,388		31,126		14,216		6,313		27,344		—		—		289,650
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total Construction	$	103,263	$	107,388	$	31,126	$	14,216	$	6,313	$	27,344	$	—	$	—	$	289,650

9.    Loans Receivable and Allowance for Credit Losses (continued)

	Loans by Year of Origination at September 30, 2022
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
	(In thousands)
Commercial Business
Pass	$	47,082	$	35,305	$	34,044	$	25,527	$	27,075	$	39,171	$	274,439	$	—	$	482,643
Special mention	—		—		57		1,230		1,081		41		3,241		—		5,650
Substandard	—		355		63		207		2,688		348		5,524		—		9,185
Total Commercial Business	47,082		35,660		34,164		26,964		30,844		39,560		283,204		—		497,478
Home Equity Loans and Advances
Pass	21,064		22,599		15,021		13,668		12,226		92,482		102,070		442		279,572
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		20		196		36		—		252
Total Home Equity Loans and Advances	21,064		22,599		15,021		13,668		12,246		92,678		102,106		442		279,824
Other Consumer Loans
Pass	1,388		97		114		122		36		121		336		—		2,214
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total Other Consumer Loans	1,388		97		114		122		36		121		336		—		2,214
Total Loans	$	1,282,703	$	1,716,361	$	745,373	$	711,959	$	470,646	$	1,959,395	$	385,646	$	442	$	7,272,525

9.    Loans Receivable and Allowance for Credit Losses (continued)

	Loans by Year of Origination at December 31, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
	(In thousands)
One-to-Four Family
Pass	$	793,848	$	298,815	$	196,244	$	138,215	$	134,811	$	525,615	$	—	$	—	$	2,087,548
Special mention	—		—		—		—		—		203		—		—		203
Substandard	—		—		1,463		1,420		360		1,323		—		—		4,566
Total One-to-Four family	793,848		298,815		197,707		139,635		135,171		527,141		—		—		2,092,317
Multifamily
Pass	312,738		181,285		231,252		47,024		131,169		137,640		—		—		1,041,108
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total Multifamily	312,738		181,285		231,252		47,024		131,169		137,640		—		—		1,041,108
Commercial Real Estate
Pass	381,222		161,136		278,581		241,669		222,752		803,945		—		—		2,089,305
Special mention	—		—		1,303		16,070		1,885		34,788		—		—		54,046
Substandard	—		386		—		1,561		1,276		23,662		—		—		26,885
Total Commercial Real Estate	381,222		161,522		279,884		259,300		225,913		862,395		—		—		2,170,236
Construction
Pass	107,070		77,549		37,498		41,591		28,814		2,418		—		—		294,940
Special mention	—		—		107		—		—		—		—		—		107
Substandard	—		—		—		—		—		—		—		—		—
Total Construction	$	107,070	$	77,549	$	37,605	$	41,591	$	28,814	$	2,418	$	—	$	—	$	295,047

9.    Loans Receivable and Allowance for Credit Losses (continued)

	Loans by Year of Origination at December 31, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
	(In thousands)
Commercial Business
Pass	$	84,113	$	36,115	$	25,156	$	30,670	$	21,762	$	26,515	$	210,597	$	—	$	434,928
Special mention	246		15		1,729		1,369		18		46		3,291		—		6,714
Substandard	192		71		352		1,084		371		609		7,911		—		10,590
Total Commercial Business	84,551		36,201		27,237		33,123		22,151		27,170		221,799		—		452,232
Home Equity Loans and Advances
Pass	22,393		15,977		15,906		13,146		12,023		100,870		95,484		426		276,225
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		246		92		—		338
Total Home Equity Loans and Advances	22,393		15,977		15,906		13,146		12,023		101,116		95,576		426		276,563
Other Consumer Loans
Pass	659		58		284		60		9		5		353		—		1,428
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total Other Consumer Loans	659		58		284		60		9		5		353		—		1,428
Total Loans	$	1,702,481	$	771,407	$	789,875	$	533,879	$	555,250	$	1,657,885	$	317,728	$	426	$	6,328,931

XML

Leases (Tables)

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Lessee, Operating Lease, Liability, Maturity

The following table summarizes lease payment obligations for each of the next five years and thereafter as follows:

	Lease Payment Obligations at
	September 30, 2022		December 31, 2021
	(In thousands)
One year or less	$	1,068	$	4,198
After one year to two years	4,288		3,950
After two years to three years	3,748		3,150
After three years to four years	3,079		2,479
After four years to five years	2,777		2,177
Thereafter	6,360		5,340
Total undiscounted cash flows	21,320		21,294
Discount on cash flows	(1,727)		(1,709)
Total lease liability	$	19,593	$	19,585

XML

Deposits (Tables)

9 Months Ended

Sep. 30, 2022

Deposits [Abstract]

Schedule of Deposits

Deposits at September 30, 2022 and December 31, 2021 are summarized as follows:

	September 30,		December 31,
	2022		2021
	(In thousands)
Non-interest-bearing demand	$	1,746,668	$	1,712,061
Interest-bearing demand	2,701,551		2,599,987
Money market accounts	712,900		657,156
Savings and club deposits	960,547		822,833
Certificates of deposit	1,943,227		1,778,179
Total deposits	$	8,064,893	$	7,570,216

Schedule of Certificate Accounts by Maturity

Scheduled maturities of certificates of deposit accounts at September 30, 2022 and December 31, 2021 are summarized as follows:

	September 30,		December 31,
	2022		2021
	(In thousands)
One year or less	$	1,032,732	$	1,087,631
After one year to two years	690,540		418,515
After two years to three years	116,000		143,950
After three years to four years	64,870		36,277
After four years	39,085		91,806
	$	1,943,227	$	1,778,179

XML

Stock Based Compensation (Tables)

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity

The following is a summary of the Company's restricted stock activity during the three and nine months ended September 30, 2022 and 2021:

	Number of Restricted Shares	Weighted Average Grant Date Fair Value
Non-vested at January 1, 2022	1,054,335	$	15.78
Grants	51,746	21.79
Vested	(27,775)	17.86
Forfeited	(31,570)	16.91
Non-vested at March 31, 2022	1,046,736	$	15.98
Forfeited	(5,182)	18.34
Non-vested at June 30, 2022	1,041,554	$	15.97
Vested	(635,951)	15.62
Forfeited	(31,796)	15.87
Non-vested at September 30, 2022	373,807	$	16.58

	Number of Restricted Shares	Weighted Average Grant Date Fair Value
Non-vested at January 1, 2021	1,263,169	$	15.66
Grants	50,203	17.86
Forfeited	(13,846)	15.60
Non-vested at March 31, 2021	1,299,526	$	15.74
Forfeited	(128)	15.60
Non-vested at June 30, 2021	1,299,398	$	15.74
Vested	(163,882)	15.61
Forfeited	(29,882)	15.63
Non-vested at September 30, 2021	1,105,634	$	15.76

Share-based Payment Arrangement, Option, Activity

The following is a summary of the Company's option activity during the three and nine months ended September 30, 2022 and 2021:

	Number of Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding, January 1, 2022	3,637,542	$	15.78	7.6	$	18,654,905
Granted	130,951	21.79		—	—
Exercised	(62,859)	16.42		—	—
Expired	(1,412)	15.60		—	—
Forfeited	(61,961)	16.84		—	—
Outstanding, March 31, 2022	3,642,261	$	15.92	7.5	$	20,401,381
Exercised	(5,412)	15.60		—	—
Forfeited	(21,801)	17.78		—	—
Outstanding, June 30, 2022	3,615,048	$	15.91	7.2	$	21,335,939
Exercised	(87,025)	15.60		—	—
Expired	(8,704)	15.60		—	—
Forfeited	(153,309)	15.72		—	—
Outstanding, September 30, 2022	3,366,010	$	15.93	6.9	$	17,598,873
Options exercisable at September 30, 2022	1,965,260	$	15.67	6.4	$	10,732,855

12.    Stock Based Compensation (continued)

	Number of Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding, January 1, 2021	3,708,628	$	15.66	8.6	$	—
Granted	109,654	17.86		—	—
Expired	(2,029)	15.60		—	—
Forfeited	(30,118)	15.60		—	—
Outstanding, March 31, 2021	3,786,135	$	15.73	8.4	$	6,673,328
Exercised	(1,661)	15.60		—	$	—
Expired	(7,529)	15.60		—	—
Forfeited	(1,412)	15.60		—	—
Outstanding, June 30, 2021	3,775,533	$	15.73	8.1	$	5,700,258
Exercised	(26,861)	15.60		—	$	—
Expired	(353)	15.60		—
Forfeited	(58,287)	15.73		—	—
Outstanding, September 30, 2021	3,690,032	$	15.73	7.9	$	10,222,527
Options exercisable at September 30, 2021	1,411,976	$	15.64	7.8	$	4,036,196

XML

Components of Net Periodic Benefit Costs (Tables)

9 Months Ended

Sep. 30, 2022

Retirement Benefits [Abstract]

Schedule of Net Benefit Costs

Net periodic benefit (income) cost for the Pension Plan, RIM Plan, Post-retirement Plan and Split-Dollar Life Insurance plan benefits for the three and nine months ended September 30, 2022 and 2021, includes the following components:

	For the Three Months Ended September 30,
	Pension Plan				RIM Plan				Post-retirement Plan				Split-Dollar Life Insurance
	2022		2021		2022		2021		2022		2021		2022		2021		Affected Line Item in the Consolidated Statements of Income
	(In thousands)
Service cost	$	1,267	$	1,872	$	93	$	100	$	122	$	130	$	130	$	141	Compensation and employee benefits
Interest cost	2,799		1,902		97		86		185		141		158		125		Other non-interest expense
Expected return on plan assets	(7,183)		(6,661)		—		—		—		—		—		—		Other non-interest expense
Amortization:
Prior service cost	—		—		—		—		—		—		14		14		Other non-interest expense
Net loss	660		—		111		166		78		153		151		191		Other non-interest expense
Net periodic (income) benefit cost	$	(2,457)	$	(2,887)	$	301	$	352	$	385	$	424	$	453	$	471

	For the Nine Months Ended September 30,
	Pension Plan				RIM Plan				Post-retirement Plan				Split-Dollar Life Insurance
	2022		2021		2022		2021		2022		2021		2022		2021		Affected Line Item in the Consolidated Statements of Income
	(In thousands)
Service cost	$	5,199	$	6,172	$	279	$	300	$	319	$	390	$	383	$	423	Compensation and employee benefits
Interest cost	6,911		5,414		291		258		508		423		453		375		Other non-interest expense
Expected return on plan assets	(22,375)		(19,297)		—		—		—		—		—		—		Other non-interest expense
Amortization:
Prior service cost	—		—		—		—		—		—		42		42		Other non-interest expense
Net loss	660		2,000		333		498		234		459		453		573		Other non-interest expense
Net periodic (income) benefit cost	$	(9,605)	$	(5,711)	$	903	$	1,056	$	1,061	$	1,272	$	1,331	$	1,413

XML

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present the assets and liabilities reported on the Consolidated Statements of Financial Condition at their fair values at September 30, 2022 and December 31, 2021, by level within the fair value hierarchy:

	September 30, 2022
			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)
Debt securities available for sale:
U.S. government and agency obligations	$	63,281	$	54,771	$	8,510	$	—
Mortgage-backed securities and collateralized mortgage obligations	1,223,652		—		1,223,652		—
Municipal obligations	3,557		—		887		2,670
Corporate debt securities	81,231		—		71,532		9,699
Total debt securities available for sale	1,371,721		54,771		1,304,581		12,369
Equity securities	3,453		3,115		338		—
Derivative assets	19,897		—		19,897		—
	$	1,395,071	$	57,886	$	1,324,816	$	12,369
Derivative liabilities	19,511		$	—	$	19,511	$	—

	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)
Debt securities available for sale:
U.S. government and agency obligations	$	34,879	$	34,879	$	—	$	—
Mortgage-backed securities and collateralized mortgage obligations	1,554,359		—		1,554,359		—
Municipal obligations	4,179		—		4,179		—
Corporate debt securities	110,430		—		110,430		—
Total debt securities available for sale	1,703,847		34,879		1,668,968		—
Equity securities	2,710		2,364		346
Derivative assets	9,492		—		9,492		—
	$	1,716,049	$	37,243	$	1,678,806	$	—
Derivative liabilities	$	17,366	$	—	$	17,366	$	—

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The table below provides activity of assets reported as Level 3 for the period ended September 30, 2022:

	Significant Unobservable Inputs (Level 3)
	(In thousands)
Debt securities available for sale:
Balance of recurring Level 3 assets -December 31, 2021	$	—
Transfers into Level 3 assets	13,539
Balance of recurring Level 3 assets - June 30, 2022	13,539
Maturity of Level 3 asset	(914)
Change in fair value of Level 3 assets	(256)
Balance of recurring Level 3 assets - September 30, 2022	$	12,369

Fair Value Measurements, Nonrecurring

The following tables present the assets and liabilities reported on the Consolidated Statements of Financial Condition at their fair values on a non-recurring basis at September 30, 2022 and December 31, 2021, by level within the fair value hierarchy:

	September 30, 2022
			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)
Mortgage servicing rights	$	2,309	$	—	$	—	$	2,309
	$	2,309	$	—	$	—	$	2,309

	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)
Impaired loans	$	1,213	$	—	$	—	$	1,213
Mortgage servicing rights	1,906		—		—		1,906
	$	3,119	$	—	$	—	$	3,119

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques

The following table presents information for Level 3 assets measured at fair value on a non-recurring basis at September 30, 2022 and December 31, 2021:

	September 30, 2022
	Fair Value		Valuation Methodology	Unobservable Inputs	Range of Inputs	Weighted Average
	(Dollars in thousands)
Mortgage servicing rights	$	2,309	Discounted cash flow	Prepayment speeds and discount rates (1)	4.2% - 21.1%	6.9	%

14.    Fair Value Measurements (continued)

	December 31, 2021
	Fair Value		Valuation Methodology	Unobservable Inputs	Range of Inputs		Weighted Average
	(Dollars in thousands)
Impaired loans	$	1,213	Other	Contracted sales price of collateral	—	%	—	%
Mortgage servicing rights	$	1,906	Discounted cash flow	Prepayment speeds and discount rates (2)	7.5% - 24.9%		12.7	%
(1) Value of SBA servicing rights based on a discount rate of 13.25%.
(2) Value of SBA servicing rights based on a discount rate of 10.25%.

Fair Value, by Balance Sheet Grouping

The following tables present the assets and liabilities reported on the Consolidated Statements of Financial Condition at their fair values at September 30, 2022 and December 31, 2021:

	September 30, 2022
			Fair Value Measurements
	Carrying Value		Total 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)
Financial assets:
Cash and cash equivalents	$	102,048	$	102,048	$	102,048	$	—	$	—
Debt securities available for sale	1,371,721		1,371,721		54,771		1,304,581		12,369
Debt securities held to maturity	425,077		373,494		—		373,494		—
Equity securities	3,453		3,453		3,115		338		—
Federal Home Loan Bank stock	37,726		37,726		—		37,726		—
Loans receivable, net	7,274,332		6,441,458		—		—		6,441,458
Derivative assets	19,897		19,897		—		19,897		—
Financial liabilities:
Deposits	$	8,064,893	$	8,001,656	$	—	$	8,001,656	$	—
Borrowings	674,018		667,380		—		667,380		—
Derivative liabilities	19,511		19,511		—		19,511		—

	December 31, 2021
			Fair Value Measurements
	Carrying Value		Total 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)
Financial assets:
Cash and cash equivalents	$	70,963	$	70,963	$	70,963	$	—	$	—
Debt securities available for sale	1,703,847		1,703,847		34,879		1,668,968		—
Debt securities held to maturity	429,734		434,789		—		434,789		—
Equity securities	2,710		2,710		2,364		346		—
Federal Home Loan Bank stock	23,141		23,141		—		23,141		—
Loans receivable, net	6,297,912		6,457,766		—		—		6,457,766
Derivative assets	9,492		9,492		—		9,492		—
Financial liabilities:
Deposits	$	7,570,216	$	7,564,210	$	—	$	7,564,210	$	—
Borrowings	377,309		378,810		—		378,810		—
Derivative liabilities	17,366		17,366		—		17,366		—

XML

Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Schedule of Other Comprehensive Income (Loss)

The following tables present the components of other comprehensive income (loss), both gross and net of tax, for the three and nine months ended September 30, 2022 and 2021:

	For the Three Months Ended September 30,
	2022						2021
	Before Tax		Tax Effect		After Tax		Before Tax		Tax Effect		After Tax
	(In thousands)
Components of other comprehensive income (loss):
Unrealized (loss) on debt securities available for sale:	$	(65,744)	$	18,589	$	(47,155)	$	(13,609)	$	3,666	$	(9,943)
Accretion of unrealized (loss) on debt securities reclassified as held to maturity	(19)		6		(13)		(3)		1		(2)
Reclassification adjustment for gain included in net income	—		—		—		2,296		(505)		1,791
	(65,763)		18,595		(47,168)		(11,316)		3,162		(8,154)
Derivatives:
Unrealized gain on swap contracts accounted for as cash flow hedges	1,639		(457)		1,182		2,035		(568)		1,467
	1,639		(457)		1,182		2,035		(568)		1,467
Employee benefit plans:
Amortization of prior service cost included in net income	(14)		3		(11)		(14)		4		(10)
Reclassification adjustment of actuarial net (loss) included in net income	(339)		95		(244)		(1,511)		422		(1,089)
Change in funded status of retirement obligations	1,148		(211)		937		3,050		(852)		2,198
	795		(113)		682		1,525		(426)		1,099
Total other comprehensive (loss)	$	(63,329)	$	18,025	$	(45,304)	$	(7,756)	$	2,168	$	(5,588)

15.    Other Comprehensive Income (Loss) (continued)

	For the Nine Months Ended September 30,
	2022						2021
	Before Tax		Tax Effect		After Tax		Before Tax		Tax Effect		After Tax
	(In thousands)
Components of other comprehensive income (loss):
Unrealized (loss) on debt securities available for sale:	$	(198,171)	$	55,528	$	(142,643)	$	(26,804)	$	4,615	$	(22,189)
Accretion of unrealized (loss) on debt securities reclassified as held to maturity	(28)		7		(21)		(24)		24		—
Reclassification adjustment for gain included in net income	210		(59)		151		2,015		(426)		1,589
	(197,989)		55,476		(142,513)		(24,813)		4,213		(20,600)
Derivatives:
Unrealized gain on swap contracts accounted for as cash flow hedges	7,171		(2,004)		5,167		9,182		(1,084)		8,098
	7,171		(2,004)		5,167		9,182		(1,084)		8,098
Employee benefit plans:
Amortization of prior service cost included in net income	(42)		11		(31)		(42)		11		(31)
Reclassification adjustment of actuarial net (loss) included in net income	(1,017)		285		(732)		(4,533)		1,266		(3,267)
Change in funded status of retirement obligations	(23,851)		6,730		(17,121)		40,541		(3,971)		36,570
	(24,910)		7,026		(17,884)		35,966		(2,694)		33,272
Total other comprehensive (loss) income	$	(215,728)	$	60,498	$	(155,230)	$	20,335	$	435	$	20,770

Components of Other Comprehensive Income (Loss)

The following tables present the changes in the components of accumulated other comprehensive income (loss), net of tax, for the three and nine months ended September 30, 2022 and 2021:

	For the Three Months Ended September 30,
	2022								2021
	Unrealized (Losses) on Debt Securities Available for Sale		Unrealized (Losses) on Swaps		Employee Benefit Plans		Accumulated Other Comprehensive (Loss)		Unrealized Gains on Debt Securities Available for Sale		Unrealized (Losses) on Swaps		Employee Benefit Plans		Accumulated Other Comprehensive (Loss)
	(In thousands)
Balance at beginning of period	$	(93,701)	$	(932)	$	(61,212)	$	(155,845)	$	18,582	$	(10,225)	$	(51,624)	$	(43,267)
Current period changes in other comprehensive (loss) income	(47,168)		1,182		682		(45,304)		(8,154)		1,467		1,099		(5,588)
Total other comprehensive (loss) income	$	(140,869)	$	250	$	(60,530)	$	(201,149)	$	10,428	$	(8,758)	$	(50,525)	$	(48,855)

	For the Nine Months Ended September 30,
	2022								2021
	Unrealized (Losses) on Debt Securities Available for Sale		Unrealized (Losses) on Swaps		Employee Benefit Plans		Accumulated Other Comprehensive (Loss)		Unrealized Gains on Debt Securities Available for Sale		Unrealized (Losses) on Swaps		Employee Benefit Plans		Accumulated Other Comprehensive (Loss)
	(In thousands)
Balance at beginning of period	$	1,644	$	(4,917)	$	(42,646)	$	(45,919)	$	31,028	$	(16,856)	$	(83,797)	$	(69,625)
Current period changes in other comprehensive (loss) income	(142,513)		5,167		(17,884)		(155,230)		(20,600)		8,098		33,272		20,770
Total other comprehensive (loss) income	$	(140,869)	$	250	$	(60,530)	$	(201,149)	$	10,428	$	(8,758)	$	(50,525)	$	(48,855)

Reclassification out of AOCI

The following tables reflect amounts reclassified from accumulated other comprehensive income (loss) to the Consolidated Statements of Income and the affected line item in the statement where net income is presented for the three and nine months ended September 30, 2022 and 2021:

	Accumulated Other Comprehensive Income (Loss) Components
	For the Three Months Ended September 30,				Affected Line Items in the Consolidated Statements of Income
	2022		2021
	(In thousands)
Reclassification adjustment for gain included in net income	$	—	$	2,296	Gain on securities transactions
Reclassification adjustment of actuarial net (loss) included in net income	(339)		(1,511)		Other non-interest expense
Total before tax	(339)		785
Income tax benefit	95		(83)
Net of tax	$	(244)	$	702

	Accumulated Other Comprehensive Income (Loss) Components
	For the Nine Months Ended September 30,				Affected Line Items in the Consolidated Statements of Income
	2022		2021
	(In thousands)
Reclassification adjustment for gain included in net income	$	210	$	2,015	Gain on securities transactions
Reclassification adjustment of actuarial net (loss) included in net income	(1,017)		(4,533)		Other non-interest expense
Total before tax	(807)		(2,518)
Income tax benefit	226		840
Net of tax	$	(581)	$	(1,678)

XML

Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative financial instruments on the Consolidated Balance Sheets

The tables below present the fair value of the Company’s derivative financial instruments as well as their classification in the Consolidated Statements of Financial Condition at September 30, 2022 and December 31, 2021:

	September 30, 2022
	Asset Derivative			Liability Derivative
	Consolidated Statements of Financial Condition	Fair Value		Consolidated Statements of Financial Condition	Fair Value
		(In thousands)
Derivatives:
Interest rate swaps	Other Assets	$	19,897	Other Liabilities	$	19,511
Total derivative instruments		$	19,897		$	19,511

	December 31, 2021
	Asset Derivative			Liability Derivative
	Consolidated Statements of Financial Condition	Fair Value		Consolidated Statements of Financial Condition	Fair Value
		(In thousands)
Derivatives:
Interest rate swaps	Other Assets	$	9,492	Other Liabilities	$	17,366
Total derivative instruments		$	9,492		$	17,366

XML

Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and nine months ended September 30, 2022 and 2021.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
	(In thousands)
Non-interest income
In-scope of Topic 606:
Demand deposit account fees	$	1,510	$	986	$	4,129	$	2,682
Title insurance fees	796		1,431		2,788		4,554
Insurance agency income	38		—		83		—
Other non-interest income	2,194		1,934		6,334		5,633
Total in-scope non-interest income	4,538		4,351		13,334		12,869
Total out-of-scope non-interest income	3,626		4,523		9,540		18,991
Total non-interest income	$	8,164	$	8,874	$	22,874	$	31,860

XML

Acquisitions - Narrative (Details) - USD ($)			3 Months Ended		9 Months Ended
	May 01, 2022	Dec. 01, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Business Acquisition [Line Items]
Merger-related expenses			$ 1,198,000	$ 55,000	$ 2,676,000	$ 130,000
Freehold Entities
Business Acquisition [Line Items]
Business acquisition, equity interest issued or issuable (in shares)		2,591,007,000
Merger-related expenses			4,000	55,000	11,000	130,000
Business combination, provisional information, initial accounting incomplete, adjustment, deferred tax assets			82,000
Goodwill, subsequent recognition of deferred tax asset			82,000
RSI Entites
Business Acquisition [Line Items]
Business acquisition, equity interest issued or issuable (in shares)	6,086,314
Merger-related expenses			1,200,000	$ 0	2,700,000	$ 0
Business combination, provisional information, initial accounting incomplete, adjustment, deferred tax assets			2,000,000
Goodwill, subsequent recognition of deferred tax asset			2,000,000
Goodwill	$ 28,003,000		$ 26,000,000		$ 26,000,000
RSI Entites | Minimum | Equipment
Business Acquisition [Line Items]
Property, plant and equipment, useful life	3 years
RSI Entites | Maximum | Equipment
Business Acquisition [Line Items]
Property, plant and equipment, useful life	15 years

XML

Acquisitions - Assets Acquired and Liabilities Assumed in Acquisition (Details) - RSI Entites - USD ($) $ in Thousands	May 01, 2022	Sep. 30, 2022
Assets acquired:
Cash and cash equivalents	$ 140,769
Debt securities available for sale	79,024
Equity securities	1,075
Federal Home Loan Bank Stock	906
Loans receivable	335,501
Accrued interest receivable	910
Office properties and equipment, net	7,296
Bank-owned life insurance	13,033
Deferred tax asset, net	3,633
Core deposit intangibles	10,271
Other assets	2,723
Total assets acquired	595,141
Liabilities assumed:
Deposits	502,732
Borrowings	5,762
Advance payments by borrowers for taxes and insurance	1,341
Accrued expenses and other liabilities	10,568
Total liabilities assumed	520,403
Net assets acquired	74,738
Fair market value of stock issued to Columbia Bank MHC for purchase	102,741
Goodwill recorded at merger	$ 28,003	$ 26,000

XML

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Net income	$ 20,919	$ 20,982	$ 64,282	$ 68,715
Shares:
Weighted average shares outstanding - basic (in shares)	106,926,864	102,977,254	105,440,345	104,486,520
Effect of dilutive common stock equivalents (in shares)	607,634	0	599,895	0
Weighted average shares outstanding - diluted (in shares)	107,534,498	102,977,254	106,040,240	104,486,520
Earnings per share:
Earnings per share - basic (in dollars per share)	$ 0.20	$ 0.20	$ 0.61	$ 0.66
Earnings per share - diluted (in dollars per share)	$ 0.19	$ 0.20	$ 0.61	$ 0.66
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	121,935	3,731,901	89,990	3,741,138

XML

Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands				3 Months Ended		9 Months Ended
	Dec. 06, 2021	Feb. 01, 2021	Sep. 10, 2020	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, number of shares authorized to be repurchased (in shares)	5,000,000	5,000,000	5,000,000
Stock repurchase program, percent of common stock	4.60%	4.50%	4.30%
Shares repurchased, number of shares (in shares)				874,080	1,163,500	3,420,747	4,633,540
Shares repurchased, value				$ 18,590	$ 20,544	$ 71,766	$ 79,090
Share Repurchase Programs
Equity, Class of Treasury Stock [Line Items]
Shares repurchased, number of shares (in shares)				874,080	1,163,500	3,420,747	4,633,540
Shares repurchased, value				$ 18,600	$ 20,500	$ 71,800	$ 79,100
Shares repurchased, price per share (in dollars per share)				$ 21.27	$ 17.66	$ 20.98	$ 17.07

XML

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2022		Jun. 30, 2022	Jan. 01, 2022	Dec. 31, 2021		Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses on loans	$ 51,891	[1]	$ 50,583		$ 62,689	[1]	$ 70,326	$ 69,898	$ 74,676
Allowance for credit losses on debt securities available for sale	0		0		0
Off-balance sheet, credit loss, liability	6,611		8,358		524
Stockholders' equity attributable to parent	1,029,645		1,074,284		1,079,081		1,030,876	1,033,046	1,011,287
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' equity attributable to parent	$ 835,627		814,708		765,133		$ 741,799	$ 720,817	$ 673,084
Effect of adopting ASU No. 2016-13 ("CECL")
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses on loans					(16,443)
Allowance for credit losses on debt securities available for sale			0		490
Off-balance sheet, credit loss, liability			$ 0		7,674
Stockholders' equity attributable to parent					6,212
Effect of adopting ASU No. 2016-13 ("CECL") | Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' equity attributable to parent					$ 6,212
ASU 2016-13 | Effect of adopting ASU No. 2016-13 ("CECL")
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses on loans				$ (12,100)
Allowance for credit losses on debt securities available for sale				353
Off-balance sheet, credit loss, liability				5,500
ASU 2016-13 | Effect of adopting ASU No. 2016-13 ("CECL") | Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' equity attributable to parent				$ 6,200

[1]  (1) The Company adopted ASU 2016-13 as of January 1, 2022. Prior year periods have not been restated.

XML

Debt Securities Available for Sale - Securities Available-for-Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 1,559,151		$ 1,701,379
Gross Unrealized Gains	128		16,943
Gross Unrealized (Losses)	(187,558)		(14,475)
Allowance for Credit Losses	0	$ 0	0
Debt securities available for sale	1,371,721		1,703,847
U.S. government and agency obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	67,491		34,711
Gross Unrealized Gains	0		404
Gross Unrealized (Losses)	(4,210)		(236)
Debt securities available for sale	63,281		34,879
Mortgage-backed securities and collateralized mortgage obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,399,397		1,553,491
Gross Unrealized Gains	122		14,141
Gross Unrealized (Losses)	(175,867)		(13,273)
Debt securities available for sale	1,223,652		1,554,359
Municipal obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	3,698		4,159
Gross Unrealized Gains	0		20
Gross Unrealized (Losses)	(141)		0
Debt securities available for sale	3,557		4,179
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	88,565		109,018
Gross Unrealized Gains	6		2,378
Gross Unrealized (Losses)	(7,340)		(966)
Debt securities available for sale	$ 81,231		$ 110,430

XML

Debt Securities Available for Sale - Expected Maturities of Available-for-Sale Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Amortized Cost
One year or less	$ 919
More than one year to five years	68,971
More than five years to ten years	89,864
Available-for-sale debt securities, allocated and single maturity date, total	159,754
Mortgage-backed securities and collateralized mortgage obligations	1,399,397
Amortized Cost	1,559,151	$ 1,701,379
Fair Value
One year or less	901
More than one year to five years	65,791
More than five years to ten years	81,377
Available-for-sale debt securities, allocated and single maturity date, total	148,069
Mortgage-backed securities and collateralized mortgage obligations	1,223,652
Fair Value	$ 1,371,721	$ 1,703,847

XML

Debt Securities Available for Sale - Narrative (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) security	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) security	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($) security
Debt Securities, Available-for-sale [Line Items]
Mortgage-backed securities and collateralized mortgage obligations	$ 1,399,397,000		$ 1,399,397,000
Mortgage-backed securities and collateralized mortgage obligations	1,223,652,000		1,223,652,000
Proceeds from sales of debt securities available for sale	0	$ 22,500,000	126,772,000	$ 27,249,000
Gross gains on sale of available-for-sale securities		2,000,000	210,000	2,000,000
Gross losses on sale of available-for-sale securities		0	0	281,000
Proceeds from calls of debt securities available for sale	0	9,000,000	0	14,000,000
Proceeds from maturities of debt securities, available-for-sale	915,000	0	915,000	210,000
Calls of debt securities, available-for-sale, realized gain		0		0
Calls of debt securities, available-for-sale, unrealized loss		$ 0		$ 0
Debt securities, available-for-sale, restricted	$ 636,000,000		$ 636,000,000		$ 587,700,000
Number of securities in unrealized loss position | security	439		439		219
Accrued interest receivable on debt securities available for sale	$ 3,100,000		$ 3,100,000
Subsidiaries
Debt Securities, Available-for-sale [Line Items]
Debt securities, available-for-sale, restricted	$ 30,100,000		$ 30,100,000		$ 44,100,000

XML

Debt Securities Available for Sale - Continuous Unrealized Loss Position of Available-for-Sale Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value
Less Than 12 Months	$ 824,671	$ 864,455
12 Months or Longer	522,105	67,112
Total	1,346,776	931,567
Gross Unrealized (Losses)
Less Than 12 Months	(81,699)	(12,799)
12 Months or Longer	(105,859)	(1,676)
Total	(187,558)	(14,475)
U.S. government and agency obligations
Fair Value
Less Than 12 Months	54,464	14,488
12 Months or Longer	8,817	0
Total	63,281	14,488
Gross Unrealized (Losses)
Less Than 12 Months	(3,104)	(236)
12 Months or Longer	(1,106)	0
Total	(4,210)	(236)
Mortgage-backed securities and collateralized mortgage obligations
Fair Value
Less Than 12 Months	696,364	820,746
12 Months or Longer	504,328	62,407
Total	1,200,692	883,153
Gross Unrealized (Losses)
Less Than 12 Months	(72,154)	(11,892)
12 Months or Longer	(103,713)	(1,381)
Total	(175,867)	(13,273)
Municipal obligations
Fair Value
Less Than 12 Months	3,557
12 Months or Longer	0
Total	3,557
Gross Unrealized (Losses)
Less Than 12 Months	(141)
12 Months or Longer	0
Total	(141)
Corporate debt securities
Fair Value
Less Than 12 Months	70,286	29,221
12 Months or Longer	8,960	4,705
Total	79,246	33,926
Gross Unrealized (Losses)
Less Than 12 Months	(6,300)	(671)
12 Months or Longer	(1,040)	(295)
Total	$ (7,340)	$ (966)

XML

Debt Securities Available for Sale - Debt Securities, Available-for-sale, Allowance for Credit Loss (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 0	$ 0
(Reversal of ) credit losses	0	(490)
Ending balance	0	0
Impact of adopting ASU 2016-13 (CECL) effective January 1, 2022
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 0	$ 490

XML

Debt Securities Held to Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 425,077	$ 429,734
Gross Unrealized Gains	0	6,741
Gross Unrealized (Losses)	(51,583)	(1,686)
Allowance for Credit Losses	0
Fair Value	373,494	434,789
U.S. government and agency obligations
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	49,871	44,870
Gross Unrealized Gains	0	0
Gross Unrealized (Losses)	(7,587)	(759)
Allowance for Credit Losses	0
Fair Value	42,284	44,111
Mortgage-backed securities and collateralized mortgage obligations
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	375,206	384,864
Gross Unrealized Gains	0	6,741
Gross Unrealized (Losses)	(43,996)	(927)
Allowance for Credit Losses	0
Fair Value	$ 331,210	$ 390,678

XML

Debt Securities Held to Maturity - Expected Maturities of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Amortized Cost
More than one year to five years	$ 19,875
More than five years to ten years	19,996
More than ten years	10,000
Held-to-maturity debt securities, allocated and single maturity date, total	49,871
Mortgage-backed securities and collateralized mortgage obligations	375,206
Amortized Cost	425,077	$ 429,734
Fair Value
More than one year to five years	18,282
More than five years to ten years	16,479
More than ten years	7,523
Held-to-maturity debt securities, allocated and single maturity date, total	42,284
Mortgage-backed securities and collateralized mortgage obligations	331,210
Debt securities held to maturity	$ 373,494	$ 434,789

XML

Debt Securities Held to Maturity - Narrative (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) security	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) security	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($) security
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 425,077,000		$ 425,077,000		$ 429,734,000
Fair Value	373,494,000		373,494,000		434,789,000
Proceeds from sale and maturity of held-to-maturity securities	0	$ 0	0	$ 0
Proceeds from calls of debt securities, held-to-maturity		$ 0		5,100,000
Debt securities, held-to-maturity, sold, realized gain (loss)				$ 0
Fair value of securities sold under agreements to repurchase	$ 230,900,000		$ 230,900,000		$ 252,400,000
Number of positions | security	117		117		25
Accrued interest receivable on debt securities held-to-maturity	$ 820,000		$ 820,000
Mortgage-backed securities and collateralized mortgage obligations
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	375,206,000		375,206,000		$ 384,864,000
Fair Value	$ 331,210,000		$ 331,210,000		$ 390,678,000

XML

Debt Securities Held to Maturity - Continuous Unrealized Loss Position on Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value
Less Than 12 Months	$ 327,084	$ 123,147
12 Months or Longer	46,409	0
Total	373,493	123,147
Gross Unrealized (Losses)
Less Than 12 Months	(41,431)	(1,686)
12 Months or Longer	(10,152)	0
Total	(51,583)	(1,686)
U.S. government and agency obligations
Fair Value
Less Than 12 Months	4,967	44,111
12 Months or Longer	37,316	0
Total	42,283	44,111
Gross Unrealized (Losses)
Less Than 12 Months	(32)	(759)
12 Months or Longer	(7,555)	0
Total	(7,587)	(759)
Mortgage-backed securities and collateralized mortgage obligations
Fair Value
Less Than 12 Months	322,117	79,036
12 Months or Longer	9,093	0
Total	331,210	79,036
Gross Unrealized (Losses)
Less Than 12 Months	(41,399)	(927)
12 Months or Longer	(2,597)	0
Total	$ (43,996)	$ (927)

XML

Equity Securities at Fair Value (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Equity securities	$ 3,453,000		$ 3,453,000		$ 2,710,000
Change in fair value of equity securities	(264,000)	$ (443,000)	(332,000)	$ (1,809,000)
Proceeds from sale of equity securities	$ 0	1,300,000	$ 0	1,300,000
Equity securities, realized gain		344,000		344,000
Equity securities, realized loss		$ 0		$ 0

XML

Loans Receivable and Allowance for Credit Losses - Narrative (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022 USD ($) loan	Sep. 30, 2021 USD ($) loan	Sep. 30, 2022 USD ($) loan	Sep. 30, 2021 USD ($) loan	Dec. 31, 2021 USD ($) loan	Jun. 30, 2022 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable on loans receivable	$ 26,300,000		$ 26,300,000
Loans held-for-sale	0		0		$ 0
Proceeds from sales of loans held-for-sale			6,187,000	$ 293,005,000
Gain on sale of loans held-for-sale	63,000		173,000	8,600,000
Loss on sale of loans held-for-sale	64,000		64,000	0
Purchases of loans receivable	0		0	$ 74,232,000
Financing receivable, excluding accrued interest, before allowance for credit loss	7,326,223,000		7,326,223,000		6,360,601,000
Carrying value of servicing liability	$ 507,600,000		$ 507,600,000		$ 519,500,000
Threshold period, past due status of financial receivables			30 days
Threshold period, past due for nonperforming status of financial receivables	90 days		90 days		90 days
Non-accrual	$ 7,000,000		$ 7,000,000		$ 3,900,000
Financing receivable, excluding accrued interest, 90 days or more past due, still accruing	0		0		0
Real estate owned	$ 0		$ 0		0
Number of loans | loan	0	1	1	3
Mortgage loans in process of foreclosure, amount					87,000
Specific allowance for loan losses attributable to impaired loans	$ 330,000		$ 330,000		378,000
Impaired loans for which there are no related allowance for loan losses	16,697,000		16,697,000		17,280,000
Financing receivable, modifications, recorded investment	20,100,000		20,100,000		22,400,000
Off-balance sheet, credit loss, liability	6,611,000		6,611,000		524,000	$ 8,358,000
Off-balance sheet, credit loss, liability, credit loss expense (reversal)	(1,747,000)		(1,587,000)
Real estate loans | One-to-four family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from sales of loans held-for-sale	$ 1,800,000	$ 1,800,000	$ 2,400,000	$ 17,400,000
Purchases of loans receivable		$ 678,000		$ 678,000
Number of loans | loan	0	1	0	2
Specific allowance for loan losses attributable to impaired loans	$ 213,000		$ 213,000		258,000
Impaired loans for which there are no related allowance for loan losses	1,319,000		1,319,000		1,882,000
Real estate loans | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from sales of loans held-for-sale	510,000		$ 1,800,000	$ 6,400,000
Real estate loans | Multifamily And Commercial Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from sales of loans held-for-sale				19,100,000
Real estate loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchases of loans receivable		$ 2,000,000		$ 73,600,000
Number of loans | loan			0	1
Specific allowance for loan losses attributable to impaired loans	98,000		$ 98,000		97,000
Impaired loans for which there are no related allowance for loan losses	14,924,000		14,924,000		13,861,000
Commercial business loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from sales of loans held-for-sale	685,000	1,200,000	2,000,000	$ 250,100,000
Gain on sale of loans held-for-sale		140,000
Loss on sale of loans held-for-sale		0
Specific allowance for loan losses attributable to impaired loans	10,000		10,000		16,000
Impaired loans for which there are no related allowance for loan losses	156,000		156,000		573,000
Commercial business loans | Multifamily And Commercial Real Estate Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from sales of loans held-for-sale		15,000,000
Less Than 90 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual	$ 1,800,000		$ 1,800,000		$ 1,700,000
Financial receivable, number of loans in nonaccrual status | loan	11		11		10
60-89 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans | loan			2
Financing receivable, modifications, recorded investment	$ 353,000		$ 353,000
30-59 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans | loan			0		1
Financing receivable, modifications, recorded investment					$ 36,000
Freddie Mac
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from Sale of Loans Receivable	0	$ 0	$ 0
Gain on sale of loans receivable				2,300,000
Loss on sale of loans receivable				0
Proceeds from securitizations of loans held-for-investment				$ 99,600,000
Stewardship Financial Corporation | Financial Asset Acquired with Credit Deterioration
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	2,000,000		2,000,000		2,700,000
Roselle Entities | Financial Asset Acquired with Credit Deterioration
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	184,000		184,000		184,000
Freehold Entities | Financial Asset Acquired with Credit Deterioration
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	3,700,000		3,700,000		3,900,000
RSI Entites | Financial Asset Acquired with Credit Deterioration
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	13,900,000		13,900,000
Paycheck Protection Program | Commercial business loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	2,200,000		2,200,000		44,900,000
Financing receivable, unamortized loan fee	$ 44,000		$ 44,000		$ 1,200,000

XML

Loans Receivable and Allowance for Credit Losses - Loans Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	$ 7,292,296	$ 6,335,722
Net deferred loan costs, fees and purchased premiums and discounts	33,927	24,879
Loans receivable	7,326,223	6,360,601
Real estate loans | One-to-four family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	2,708,293	2,092,748
Real estate loans | Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	1,142,459	1,041,108
Real estate loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	2,370,524	2,175,662
Real estate loans | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	290,690	295,047
Commercial business loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	498,140	453,166
Consumer loans | Home equity loans and advances
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	279,976	276,563
Consumer loans | Other consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	2,214	1,428
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	7,272,525	6,328,931
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | One-to-four family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	2,706,114	2,092,317
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	1,142,459	1,041,108
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	2,354,786	2,170,236
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	289,650	295,047
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial business loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	497,478	452,232
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | Home equity loans and advances
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	279,824	276,563
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | Other consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	2,214	1,428
Financial Asset Acquired with Credit Deterioration
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	19,771	6,791
Financial Asset Acquired with Credit Deterioration | Real estate loans | One-to-four family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	2,179	431
Financial Asset Acquired with Credit Deterioration | Real estate loans | Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	0	0
Financial Asset Acquired with Credit Deterioration | Real estate loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	15,738	5,426
Financial Asset Acquired with Credit Deterioration | Real estate loans | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	1,040	0
Financial Asset Acquired with Credit Deterioration | Commercial business loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	662	934
Financial Asset Acquired with Credit Deterioration | Consumer loans | Home equity loans and advances
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	152	0
Financial Asset Acquired with Credit Deterioration | Consumer loans | Other consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	$ 0	$ 0

XML

Loans Receivable and Allowance for Credit Losses - Aging of Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Past Due [Line Items]
Non-accrual	$ 7,000	$ 3,900
Total gross loans	7,292,296	6,335,722
Real estate loans | One-to-four family
Financing Receivable, Past Due [Line Items]
Total gross loans	2,708,293	2,092,748
Real estate loans | Multifamily
Financing Receivable, Past Due [Line Items]
Total gross loans	1,142,459	1,041,108
Real estate loans | Commercial real estate
Financing Receivable, Past Due [Line Items]
Total gross loans	2,370,524	2,175,662
Real estate loans | Construction
Financing Receivable, Past Due [Line Items]
Total gross loans	290,690	295,047
Commercial business loans
Financing Receivable, Past Due [Line Items]
Total gross loans	498,140	453,166
Consumer loans | Home equity loans and advances
Financing Receivable, Past Due [Line Items]
Total gross loans	279,976	276,563
Consumer loans | Other consumer loans
Financing Receivable, Past Due [Line Items]
Total gross loans	2,214	1,428
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Past Due [Line Items]
Non-accrual	6,996	3,939
Total gross loans	7,272,525	6,328,931
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Total gross loans	16,684	10,091
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total gross loans	9,598	5,840
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total gross loans	1,938	2,033
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total gross loans	5,148	2,218
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Total gross loans	7,255,841	6,318,840
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | One-to-four family
Financing Receivable, Past Due [Line Items]
Non-accrual	2,518	1,416
Total gross loans	2,706,114	2,092,317
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | One-to-four family | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Total gross loans	8,241	5,480
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | One-to-four family | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total gross loans	5,101	3,131
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | One-to-four family | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total gross loans	1,883	1,976
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | One-to-four family | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total gross loans	1,257	373
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | One-to-four family | Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Total gross loans	2,697,873	2,086,837
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Multifamily
Financing Receivable, Past Due [Line Items]
Non-accrual	0	0
Total gross loans	1,142,459	1,041,108
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Multifamily | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Total gross loans	1,092	0
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Multifamily | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total gross loans	1,092	0
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Multifamily | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total gross loans	0	0
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Multifamily | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total gross loans	0	0
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Multifamily | Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Total gross loans	1,141,367	1,041,108
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Commercial real estate
Financing Receivable, Past Due [Line Items]
Non-accrual	3,373	1,561
Total gross loans	2,354,786	2,170,236
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Commercial real estate | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Total gross loans	4,328	3,750
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Commercial real estate | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total gross loans	1,436	2,189
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Commercial real estate | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total gross loans	0	0
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Commercial real estate | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total gross loans	2,892	1,561
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Commercial real estate | Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Total gross loans	2,350,458	2,166,486
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Construction
Financing Receivable, Past Due [Line Items]
Non-accrual	0	0
Total gross loans	289,650	295,047
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Construction | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Total gross loans	544	0
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Construction | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total gross loans	544	0
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Construction | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total gross loans	0	0
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Construction | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total gross loans	0	0
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Construction | Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Total gross loans	289,106	295,047
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial business loans
Financing Receivable, Past Due [Line Items]
Non-accrual	906	761
Total gross loans	497,478	452,232
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial business loans | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Total gross loans	840	615
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial business loans | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total gross loans	0	412
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial business loans | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total gross loans	0	0
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial business loans | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total gross loans	840	203
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial business loans | Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Total gross loans	496,638	451,617
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | Home equity loans and advances
Financing Receivable, Past Due [Line Items]
Non-accrual	199	201
Total gross loans	279,824	276,563
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | Home equity loans and advances | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Total gross loans	1,624	242
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | Home equity loans and advances | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total gross loans	1,425	108
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | Home equity loans and advances | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total gross loans	40	53
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | Home equity loans and advances | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total gross loans	159	81
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | Home equity loans and advances | Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Total gross loans	278,200	276,321
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | Other consumer loans
Financing Receivable, Past Due [Line Items]
Non-accrual	0	0
Total gross loans	2,214	1,428
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | Other consumer loans | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Total gross loans	15	4
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | Other consumer loans | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total gross loans	0	0
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | Other consumer loans | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total gross loans	15	4
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | Other consumer loans | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total gross loans	0	0
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | Other consumer loans | Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Total gross loans	$ 2,199	$ 1,424

XML

Loans Receivable and Allowance for Credit Losses - Allowance for Credit Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2022		Jun. 30, 2022	Dec. 31, 2021		Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Allowance for credit losses:
Total	$ 51,891	[1]	$ 50,583	$ 62,689	[1]	$ 70,326	$ 69,898	$ 74,676
Total loans:
Total	7,292,296			6,335,722
Real estate loans | One-to-four family
Allowance for credit losses:
Total	11,946		10,836	8,798		14,788	17,108	13,586
Total loans:
Total	2,708,293			2,092,748
Real estate loans | Multifamily
Allowance for credit losses:
Total	7,249		10,932	7,741		8,513	8,442	8,897
Total loans:
Total	1,142,459			1,041,108
Real estate loans | Commercial real estate
Allowance for credit losses:
Total	17,699		14,480	16,114		17,720	17,814	21,784
Total loans:
Total	2,370,524			2,175,662
Real estate loans | Construction
Allowance for credit losses:
Total	5,640		5,570	8,943		9,482	9,160	11,271
Total loans:
Total	290,690			295,047
Commercial business loans
Allowance for credit losses:
Total	7,480		7,284	20,214		18,725	15,898	17,384
Total loans:
Total	498,140			453,166
Consumer loans | Home equity loans and advances
Allowance for credit losses:
Total	1,868		1,471	873		1,092	1,471	1,748
Total loans:
Total	279,976			276,563
Consumer loans | Other consumer loans
Allowance for credit losses:
Total	9		$ 10	6		$ 6	$ 5	$ 6
Total loans:
Total	2,214			1,428
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Allowance for credit losses:
Individually evaluated for impairment	330			378
Collectively evaluated for impairment	51,474			62,311
Total loans:
Individually evaluated for impairment	23,466			24,287
Collectively evaluated for impairment	7,249,059			6,304,644
Total	7,272,525			6,328,931
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | One-to-four family
Allowance for credit losses:
Individually evaluated for impairment	213			258
Collectively evaluated for impairment	11,725			8,540
Total loans:
Individually evaluated for impairment	4,223			5,184
Collectively evaluated for impairment	2,701,891			2,087,133
Total	2,706,114			2,092,317
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Multifamily
Allowance for credit losses:
Individually evaluated for impairment	3			0
Collectively evaluated for impairment	7,246			7,741
Total loans:
Individually evaluated for impairment	475			762
Collectively evaluated for impairment	1,141,984			1,040,346
Total	1,142,459			1,041,108
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Commercial real estate
Allowance for credit losses:
Individually evaluated for impairment	98			97
Collectively evaluated for impairment	17,540			16,017
Total loans:
Individually evaluated for impairment	16,836			15,830
Collectively evaluated for impairment	2,337,950			2,154,406
Total	2,354,786			2,170,236
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Real estate loans | Construction
Allowance for credit losses:
Individually evaluated for impairment	0			0
Collectively evaluated for impairment	5,630			8,943
Total loans:
Individually evaluated for impairment	0			0
Collectively evaluated for impairment	289,650			295,047
Total	289,650			295,047
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial business loans
Allowance for credit losses:
Individually evaluated for impairment	10			16
Collectively evaluated for impairment	7,463			20,198
Total loans:
Individually evaluated for impairment	1,237			1,806
Collectively evaluated for impairment	496,241			450,426
Total	497,478			452,232
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | Home equity loans and advances
Allowance for credit losses:
Individually evaluated for impairment	6			7
Collectively evaluated for impairment	1,861			866
Total loans:
Individually evaluated for impairment	695			705
Collectively evaluated for impairment	279,129			275,858
Total	279,824			276,563
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | Other consumer loans
Allowance for credit losses:
Individually evaluated for impairment	0			0
Collectively evaluated for impairment	9			6
Total loans:
Individually evaluated for impairment	0			0
Collectively evaluated for impairment	2,214			1,428
Total	2,214			1,428
Financial Asset Acquired with Credit Deterioration
Allowance for credit losses:
Total	87			0
Total loans:
Total	19,771			6,791
Financial Asset Acquired with Credit Deterioration | Real estate loans | One-to-four family
Allowance for credit losses:
Total	8			0
Total loans:
Total	2,179			431
Financial Asset Acquired with Credit Deterioration | Real estate loans | Multifamily
Allowance for credit losses:
Total	0			0
Total loans:
Total	0			0
Financial Asset Acquired with Credit Deterioration | Real estate loans | Commercial real estate
Allowance for credit losses:
Total	61			0
Total loans:
Total	15,738			5,426
Financial Asset Acquired with Credit Deterioration | Real estate loans | Construction
Allowance for credit losses:
Total	10			0
Total loans:
Total	1,040			0
Financial Asset Acquired with Credit Deterioration | Commercial business loans
Allowance for credit losses:
Total	7			0
Total loans:
Total	662			934
Financial Asset Acquired with Credit Deterioration | Consumer loans | Home equity loans and advances
Allowance for credit losses:
Total	1			0
Total loans:
Total	152			0
Financial Asset Acquired with Credit Deterioration | Consumer loans | Other consumer loans
Allowance for credit losses:
Total	0			0
Total loans:
Total	$ 0			$ 0

[1]  (1) The Company adopted ASU 2016-13 as of January 1, 2022. Prior year periods have not been restated.

XML

Loans Receivable and Allowance for Credit Losses - Troubled Debt Restructuring (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) loan	Sep. 30, 2021 USD ($) loan	Sep. 30, 2022 USD ($) loan	Sep. 30, 2021 USD ($) loan
Financing Receivable, Troubled Debt Restructuring [Line Items]
No. of Loans | loan	0	1	1	3
Pre-modification Recorded Investment	$ 0	$ 64	$ 119	$ 477
Post-modification Recorded Investment	$ 0	$ 66	$ 119	$ 599
Real estate loans | One-to-four family
Financing Receivable, Troubled Debt Restructuring [Line Items]
No. of Loans | loan	0	1	0	2
Pre-modification Recorded Investment	$ 0	$ 64	$ 0	$ 285
Post-modification Recorded Investment	$ 0	$ 66	$ 0	$ 388
Real estate loans | Commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
No. of Loans | loan			0	1
Pre-modification Recorded Investment			$ 0	$ 192
Post-modification Recorded Investment			$ 0	$ 211
Consumer loans | Home equity loans and advances
Financing Receivable, Troubled Debt Restructuring [Line Items]
No. of Loans | loan			1	0
Pre-modification Recorded Investment			$ 119	$ 0
Post-modification Recorded Investment			$ 119	$ 0

XML

Loans Receivable and Allowance for Credit Losses - Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2022		Sep. 30, 2021	Sep. 30, 2022		Sep. 30, 2021
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 50,583		$ 69,898	$ 62,689	[1]	$ 74,676
Initial allowance related to PCD loans				633
Provision for (reversal of) credit losses	1,516		480	5,004		(2,561)
Recoveries	94		347	495		1,471
Charge-offs	(302)		(399)	(487)		(3,260)
Balance at end of period	51,891	[1]	70,326	51,891	[1]	70,326
Effect of adopting ASU No. 2016-13 ("CECL")
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period				(16,443)
Real estate loans | One-to-four family
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	10,836		17,108	8,798		13,586
Initial allowance related to PCD loans				131
Provision for (reversal of) credit losses	1,394		(2,218)	5,364		1,796
Recoveries	0		4	338		18
Charge-offs	(284)		(106)	(377)		(612)
Balance at end of period	11,946		14,788	11,946		14,788
Real estate loans | One-to-four family | Effect of adopting ASU No. 2016-13 ("CECL")
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period				(2,308)
Real estate loans | Multifamily
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	10,932		8,442	7,741		8,897
Initial allowance related to PCD loans				0
Provision for (reversal of) credit losses	(3,683)		(146)	1,538		(305)
Recoveries	0		217	0		217
Charge-offs	0		0	0		(296)
Balance at end of period	7,249		8,513	7,249		8,513
Real estate loans | Multifamily | Effect of adopting ASU No. 2016-13 ("CECL")
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period				(2,030)
Real estate loans | Commercial real estate
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	14,480		17,814	16,114		21,784
Initial allowance related to PCD loans				474
Provision for (reversal of) credit losses	3,219		(171)	5,338		(4,812)
Recoveries	0		77	0		1,014
Charge-offs	0		0	0		(266)
Balance at end of period	17,699		17,720	17,699		17,720
Real estate loans | Commercial real estate | Effect of adopting ASU No. 2016-13 ("CECL")
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period				(4,227)
Real estate loans | Construction
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	5,570		9,160	8,943		11,271
Initial allowance related to PCD loans				3
Provision for (reversal of) credit losses	70		322	(960)		(1,790)
Recoveries	0		0	0		1
Charge-offs	0		0	0		0
Balance at end of period	5,640		9,482	5,640		9,482
Real estate loans | Construction | Effect of adopting ASU No. 2016-13 ("CECL")
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period				(2,346)
Commercial business loans
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	7,284		15,898	20,214		17,384
Initial allowance related to PCD loans				19
Provision for (reversal of) credit losses	120		2,854	(7,520)		2,945
Recoveries	76		42	131		169
Charge-offs	0		(69)	(62)		(1,773)
Balance at end of period	7,480		18,725	7,480		18,725
Commercial business loans | Effect of adopting ASU No. 2016-13 ("CECL")
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period				(5,302)
Consumer loans | Home equity loans and advances
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	1,471		1,471	873		1,748
Initial allowance related to PCD loans				6
Provision for (reversal of) credit losses	385		(165)	1,225		(400)
Recoveries	18		7	26		52
Charge-offs	(6)		(221)	(33)		(308)
Balance at end of period	1,868		1,092	1,868		1,092
Consumer loans | Home equity loans and advances | Effect of adopting ASU No. 2016-13 ("CECL")
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period				(229)
Consumer loans | Other consumer loans
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	10		5	6		6
Initial allowance related to PCD loans				0
Provision for (reversal of) credit losses	11		4	19		5
Recoveries	0		0	0		0
Charge-offs	(12)		(3)	(15)		(5)
Balance at end of period	$ 9		$ 6	9		$ 6
Consumer loans | Other consumer loans | Effect of adopting ASU No. 2016-13 ("CECL")
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period				$ (1)

[1]  (1) The Company adopted ASU 2016-13 as of January 1, 2022. Prior year periods have not been restated.

XML

Loans Receivable and Allowance for Credit Losses - Loans Individually Evaluated for Impairment (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Impaired [Line Items]
With no allowance recorded: Recorded investment	$ 16,697	$ 17,280
With no allowance recorded: Unpaid principal balance	18,084	18,653
With a specific allowance recorded: Recorded investment	6,769	7,007
With a specific allowance recorded: Unpaid principal balance	6,790	7,028
Recorded Investment	23,466	24,287
Unpaid Principal Balance	24,874	25,681
Specific Allowance	330	378
Real estate loans | One-to-four family
Financing Receivable, Impaired [Line Items]
With no allowance recorded: Recorded investment	1,319	1,882
With no allowance recorded: Unpaid principal balance	1,667	2,421
With a specific allowance recorded: Recorded investment	2,904	3,302
With a specific allowance recorded: Unpaid principal balance	2,922	3,321
Recorded Investment	4,223	5,184
Unpaid Principal Balance	4,589	5,742
Specific Allowance	213	258
Real estate loans | Multifamily
Financing Receivable, Impaired [Line Items]
With no allowance recorded: Recorded investment	62	762
With no allowance recorded: Unpaid principal balance	65	765
With a specific allowance recorded: Recorded investment	413
With a specific allowance recorded: Unpaid principal balance	413
Recorded Investment	475	762
Unpaid Principal Balance	478	765
Specific Allowance	3	0
Real estate loans | Commercial real estate
Financing Receivable, Impaired [Line Items]
With no allowance recorded: Recorded investment	14,924	13,861
With no allowance recorded: Unpaid principal balance	15,612	14,586
With a specific allowance recorded: Recorded investment	1,912	1,969
With a specific allowance recorded: Unpaid principal balance	1,915	1,971
Recorded Investment	16,836	15,830
Unpaid Principal Balance	17,527	16,557
Specific Allowance	98	97
Commercial business loans
Financing Receivable, Impaired [Line Items]
With no allowance recorded: Recorded investment	156	573
With no allowance recorded: Unpaid principal balance	412	573
With a specific allowance recorded: Recorded investment	1,081	1,233
With a specific allowance recorded: Unpaid principal balance	1,081	1,233
Recorded Investment	1,237	1,806
Unpaid Principal Balance	1,493	1,806
Specific Allowance	10	16
Consumer loans | Home equity loans and advances
Financing Receivable, Impaired [Line Items]
With no allowance recorded: Recorded investment	236	202
With no allowance recorded: Unpaid principal balance	328	308
With a specific allowance recorded: Recorded investment	459	503
With a specific allowance recorded: Unpaid principal balance	459	503
Recorded Investment	695	705
Unpaid Principal Balance	787	811
Specific Allowance	$ 6	$ 7

XML

Loans Receivable and Allowance for Credit Losses - Interest Income on Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	$ 22,981	$ 34,879	$ 23,803	$ 37,652
Interest Income Recognized	245	338	837	1,055
Real estate loans | One-to-four family
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	4,251	5,569	4,640	5,923
Interest Income Recognized	45	64	146	229
Real estate loans | Multifamily
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	598	8,626	675	11,246
Interest Income Recognized	6	10	28	359
Real estate loans | Commercial real estate
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	16,086	17,477	16,254	17,000
Interest Income Recognized	163	217	568	329
Commercial business loans
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	1,269	2,106	1,447	2,226
Interest Income Recognized	22	36	66	106
Consumer loans | Home equity loans and advances
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	777	1,101	787	1,257
Interest Income Recognized	$ 9	$ 11	$ 29	$ 32

XML

Loans Receivable and Allowance for Credit Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 7,292,296	$ 6,335,722
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	1,282,703	1,702,481
2021	1,716,361	771,407
2020	745,373	789,875
2019	711,959	533,879
2018	470,646	555,250
Prior	1,959,395	1,657,885
Revolving Loans	385,646	317,728
Revolving Loans to Term Loans	442	426
Total	7,272,525	6,328,931
Real estate loans | One-to-four family
Financing Receivable, Credit Quality Indicator [Line Items]
Total	2,708,293	2,092,748
Real estate loans | One-to-four family | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	628,998	793,848
2021	845,423	298,815
2020	299,287	197,707
2019	182,393	139,635
2018	128,095	135,171
Prior	621,918	527,141
Revolving Loans	0	0
Revolving Loans to Term Loans	0	0
Total	2,706,114	2,092,317
Real estate loans | One-to-four family | Pass | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	628,998	793,848
2021	844,780	298,815
2020	299,287	196,244
2019	181,706	138,215
2018	127,773	134,811
Prior	620,689	525,615
Revolving Loans	0	0
Revolving Loans to Term Loans	0	0
Total	2,703,233	2,087,548
Real estate loans | One-to-four family | Special mention | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	203
Revolving Loans	0	0
Revolving Loans to Term Loans	0	0
Total	0	203
Real estate loans | One-to-four family | Substandard | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	0	0
2021	643	0
2020	0	1,463
2019	687	1,420
2018	322	360
Prior	1,229	1,323
Revolving Loans	0	0
Revolving Loans to Term Loans	0	0
Total	2,881	4,566
Real estate loans | Multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
Total	1,142,459	1,041,108
Real estate loans | Multifamily | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	177,878	312,738
2021	306,208	181,285
2020	184,752	231,252
2019	208,321	47,024
2018	43,451	131,169
Prior	221,849	137,640
Revolving Loans	0	0
Revolving Loans to Term Loans	0	0
Total	1,142,459	1,041,108
Real estate loans | Multifamily | Pass | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	177,878	312,738
2021	306,208	181,285
2020	184,752	231,252
2019	208,321	47,024
2018	43,451	131,169
Prior	217,307	137,640
Revolving Loans	0	0
Revolving Loans to Term Loans	0	0
Total	1,137,917	1,041,108
Real estate loans | Multifamily | Special mention | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	4,542	0
Revolving Loans	0	0
Revolving Loans to Term Loans	0	0
Total	4,542	0
Real estate loans | Multifamily | Substandard | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans	0	0
Revolving Loans to Term Loans	0	0
Total	0	0
Real estate loans | Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total	2,370,524	2,175,662
Real estate loans | Commercial real estate | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	303,030	381,222
2021	398,986	161,522
2020	180,909	279,884
2019	266,275	259,300
2018	249,661	225,913
Prior	955,925	862,395
Revolving Loans	0	0
Revolving Loans to Term Loans	0	0
Total	2,354,786	2,170,236
Real estate loans | Commercial real estate | Pass | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	303,030	381,222
2021	398,505	161,136
2020	179,623	278,581
2019	263,603	241,669
2018	233,911	222,752
Prior	906,137	803,945
Revolving Loans	0	0
Revolving Loans to Term Loans	0	0
Total	2,284,809	2,089,305
Real estate loans | Commercial real estate | Special mention | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	0	0
2021	0	0
2020	0	1,303
2019	1,065	16,070
2018	15,750	1,885
Prior	34,248	34,788
Revolving Loans	0	0
Revolving Loans to Term Loans	0	0
Total	51,063	54,046
Real estate loans | Commercial real estate | Substandard | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	0	0
2021	481	386
2020	1,286	0
2019	1,607	1,561
2018	0	1,276
Prior	15,540	23,662
Revolving Loans	0	0
Revolving Loans to Term Loans	0	0
Total	18,914	26,885
Real estate loans | Construction
Financing Receivable, Credit Quality Indicator [Line Items]
Total	290,690	295,047
Real estate loans | Construction | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	103,263	107,070
2021	107,388	77,549
2020	31,126	37,605
2019	14,216	41,591
2018	6,313	28,814
Prior	27,344	2,418
Revolving Loans	0	0
Revolving Loans to Term Loans	0	0
Total	289,650	295,047
Real estate loans | Construction | Pass | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	103,263	107,070
2021	107,388	77,549
2020	31,126	37,498
2019	14,216	41,591
2018	6,313	28,814
Prior	27,344	2,418
Revolving Loans	0	0
Revolving Loans to Term Loans	0	0
Total	289,650	294,940
Real estate loans | Construction | Special mention | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	0	0
2021	0	0
2020	0	107
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans	0	0
Revolving Loans to Term Loans	0	0
Total	0	107
Real estate loans | Construction | Substandard | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans	0	0
Revolving Loans to Term Loans	0	0
Total	0	0
Commercial business loans
Financing Receivable, Credit Quality Indicator [Line Items]
Total	498,140	453,166
Commercial business loans | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	47,082	84,551
2021	35,660	36,201
2020	34,164	27,237
2019	26,964	33,123
2018	30,844	22,151
Prior	39,560	27,170
Revolving Loans	283,204	221,799
Revolving Loans to Term Loans	0	0
Total	497,478	452,232
Commercial business loans | Pass | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	47,082	84,113
2021	35,305	36,115
2020	34,044	25,156
2019	25,527	30,670
2018	27,075	21,762
Prior	39,171	26,515
Revolving Loans	274,439	210,597
Revolving Loans to Term Loans	0	0
Total	482,643	434,928
Commercial business loans | Special mention | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	0	246
2021	0	15
2020	57	1,729
2019	1,230	1,369
2018	1,081	18
Prior	41	46
Revolving Loans	3,241	3,291
Revolving Loans to Term Loans	0	0
Total	5,650	6,714
Commercial business loans | Substandard | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	0	192
2021	355	71
2020	63	352
2019	207	1,084
2018	2,688	371
Prior	348	609
Revolving Loans	5,524	7,911
Revolving Loans to Term Loans	0	0
Total	9,185	10,590
Consumer loans | Home equity loans and advances
Financing Receivable, Credit Quality Indicator [Line Items]
Total	279,976	276,563
Consumer loans | Home equity loans and advances | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	21,064	22,393
2021	22,599	15,977
2020	15,021	15,906
2019	13,668	13,146
2018	12,246	12,023
Prior	92,678	101,116
Revolving Loans	102,106	95,576
Revolving Loans to Term Loans	442	426
Total	279,824	276,563
Consumer loans | Home equity loans and advances | Pass | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	21,064	22,393
2021	22,599	15,977
2020	15,021	15,906
2019	13,668	13,146
2018	12,226	12,023
Prior	92,482	100,870
Revolving Loans	102,070	95,484
Revolving Loans to Term Loans	442	426
Total	279,572	276,225
Consumer loans | Home equity loans and advances | Special mention | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans	0	0
Revolving Loans to Term Loans	0	0
Total	0	0
Consumer loans | Home equity loans and advances | Substandard | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	20	0
Prior	196	246
Revolving Loans	36	92
Revolving Loans to Term Loans	0	0
Total	252	338
Consumer loans | Other consumer loans
Financing Receivable, Credit Quality Indicator [Line Items]
Total	2,214	1,428
Consumer loans | Other consumer loans | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	1,388	659
2021	97	58
2020	114	284
2019	122	60
2018	36	9
Prior	121	5
Revolving Loans	336	353
Revolving Loans to Term Loans	0	0
Total	2,214	1,428
Consumer loans | Other consumer loans | Pass | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	1,388	659
2021	97	58
2020	114	284
2019	122	60
2018	36	9
Prior	121	5
Revolving Loans	336	353
Revolving Loans to Term Loans	0	0
Total	2,214	1,428
Consumer loans | Other consumer loans | Special mention | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans	0	0
Revolving Loans to Term Loans	0	0
Total	0	0
Consumer loans | Other consumer loans | Substandard | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration
Financing Receivable, Credit Quality Indicator [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans	0	0
Revolving Loans to Term Loans	0	0
Total	$ 0	$ 0

XML

Loans Receivable and Allowance for Credit Losses - Allowance for Credit Losses on Off Balance Sheet Exposures (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	$ 8,358	$ 524
(Reversal of) provision for credit losses	(1,747)	(1,587)
Ending balance	6,611	6,611
Effect of adopting ASU No. 2016-13 ("CECL")
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	$ 0	$ 7,674

XML

Leases - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Leases [Abstract]
Operating lease, weighted average remaining lease term	6 years 7 months 6 days		6 years 7 months 6 days		7 years
Operating lease, weighted average discount rate	2.34%		2.34%		2.13%
Lease, cost	$ 668	$ 504	$ 2,000	$ 1,700

XML

Leases - Operating Lease Payment Obligations (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Leases [Abstract]
One year or less	$ 1,068	$ 4,198
After one year to two years	4,288	3,950
After two years to three years	3,748	3,150
After three years to four years	3,079	2,479
After four years to five years	2,777	2,177
Thereafter	6,360	5,340
Total undiscounted cash flows	21,320	21,294
Discount on cash flows	(1,727)	(1,709)
Total lease liability	$ 19,593	$ 19,585

XML

Deposits - Schedule of Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Deposits [Abstract]
Non-interest-bearing demand	$ 1,746,668	$ 1,712,061
Interest-bearing demand	2,701,551	2,599,987
Money market accounts	712,900	657,156
Savings and club deposits	960,547	822,833
Certificates of deposit	1,943,227	1,778,179
Total deposits	$ 8,064,893	$ 7,570,216

XML

Deposits - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Interest-bearing demand	$ 2,701,551		$ 2,701,551		$ 2,599,987
Aggregate amount of certificates of deposit exceeding threshold amount	1,100,000		1,100,000		932,400
Interest expense on deposits	$ 6,968	$ 6,673	$ 16,326	$ 23,403
Stewardship Financial Corporation
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Interest-bearing demand					$ 5,000

XML

Deposits - Schedule of Deposit Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Deposits [Abstract]
One year or less	$ 1,032,732	$ 1,087,631
After one year to two years	690,540	418,515
After two years to three years	116,000	143,950
After three years to four years	64,870	36,277
After four years	39,085	91,806
Total term certificate accounts	$ 1,943,227	$ 1,778,179

XML

Stock Based Compensation - Narrative (Details) - USD ($)				3 Months Ended				9 Months Ended
	Mar. 21, 2022	Mar. 02, 2022	Mar. 22, 2021	Sep. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020	Jun. 06, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)														7,949,996
Granted (in shares)	130,951		109,654		130,951		109,654
Grants in period (in dollars per share)	$ 6.51		$ 4.91
Granted (in dollars per share)	$ 21.79		$ 17.86		$ 21.79		$ 17.86
Non-vested options outstanding (in shares)				1,400,750				1,400,750
Non-vested options, cost not yet recognized, amount				$ 5,000,000				$ 5,000,000
Exercises in period, aggregate intrinsic value				$ 507,000		$ 56,186		$ 896,000	$ 59,991
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)														2,271,427
Number of shares available for grant (in shares)				867,610				867,610
Granted (in shares)		51,746	50,203		51,746		50,203
Granted (in dollars per share)		$ 21.79	$ 17.86		$ 21.79		$ 17.86
Stock based compensation				$ 901,000		$ 1,400,000		$ 3,400,000	$ 4,300,000
Non-vested restricted shares outstanding (in shares)				373,807	1,046,736	1,105,634	1,299,526	373,807	1,105,634	1,041,554	1,054,335	1,299,398	1,263,169
Non-vested restricted shares outstanding, amount				$ 5,800,000				$ 5,800,000
Period for recognition (in years)								2 years 1 month 6 days
Restricted Stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)								1 year
Restricted Stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)								5 years
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)														5,678,569
Number of shares available for grant (in shares)				2,128,741				2,128,741
Award vesting period (in years)	3 years		3 years
Stock based compensation				$ 778,000		$ 822,000		$ 2,300,000	$ 2,400,000
Period for recognition (in years)								1 year 8 months 12 days
Expiration period (in years)	10 years		10 years
Expected term	6 years		6 years
Risk free interest rate	2.34%		1.11%
Expected volatility rate	25.31%		25.98%
Expected dividend rate	0.00%		0.00%
Tranche One | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)								1 year
Tranche One | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	1 year		1 year

XML

Stock Based Compensation - Restricted Stock Activity (Details) - Restricted Stock - $ / shares			3 Months Ended
	Mar. 02, 2022	Mar. 22, 2021	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021
Number of Restricted Shares
Beginning balance (in shares)			1,041,554	1,046,736	1,054,335	1,299,398	1,299,526	1,263,169
Granted (in shares)	51,746	50,203			51,746			50,203
Vested (in shares)			(635,951)		(27,775)	(163,882)
Forfeited (in shares)			(31,796)	(5,182)	(31,570)	(29,882)	(128)	(13,846)
Ending balance (in shares)			373,807	1,041,554	1,046,736	1,105,634	1,299,398	1,299,526
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share)			$ 15.97	$ 15.98	$ 15.78	$ 15.74	$ 15.74	$ 15.66
Granted (in dollars per share)	$ 21.79	$ 17.86			21.79			17.86
Vested (in dollars per share)			15.62		17.86	15.61
Forfeited (in dollars per share)			15.87	18.34	16.91	15.63	15.60	15.60
Ending balance (in dollars per share)			$ 16.58	$ 15.97	$ 15.98	$ 15.76	$ 15.74	$ 15.74

XML

Stock Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended						9 Months Ended		12 Months Ended
	Mar. 21, 2022	Mar. 22, 2021	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Number of Stock Options
Beginning balance (in shares)			3,615,048	3,642,261	3,637,542	3,775,533	3,786,135	3,708,628	3,637,542	3,708,628	3,708,628
Granted (in shares)	130,951	109,654			130,951			109,654
Exercises (in shares)			(87,025)	(5,412)	(62,859)	(26,861)	(1,661)		(155,296)	(28,522)
Expired (in shares)			(8,704)		(1,412)	(353)	(7,529)	(2,029)
Forfeited (in shares)			(153,309)	(21,801)	(61,961)	(58,287)	(1,412)	(30,118)
Ending balance (in shares)			3,366,010	3,615,048	3,642,261	3,690,032	3,775,533	3,786,135	3,366,010	3,690,032	3,637,542	3,708,628
Options exercisable (in shares)			1,965,260			1,411,976			1,965,260	1,411,976
Weighted Average Exercise Price
Beginning balance (in dollars per share)			$ 15.91	$ 15.92	$ 15.78	$ 15.73	$ 15.73	$ 15.66	$ 15.78	$ 15.66	$ 15.66
Granted (in dollars per share)	$ 21.79	$ 17.86			21.79			17.86
Exercised (in dollars per share)			15.60	15.60	16.42	15.60	15.60
Expired (in dollars per share)			15.60		15.60	15.60	15.60	15.60
Forfeited (in dollars per share)			15.72	17.78	16.84	15.73	15.60	15.60
Ending balance (in dollars per share)			15.93	$ 15.91	$ 15.92	15.73	$ 15.73	$ 15.73	15.93	15.73	$ 15.78	$ 15.66
Options exercisable (in dollars per share)			$ 15.67			$ 15.64			$ 15.67	$ 15.64
Weighted Average Remaining Contractual Term (in years)
Options outstanding			6 years 10 months 24 days	7 years 2 months 12 days	7 years 6 months	7 years 10 months 24 days	8 years 1 month 6 days	8 years 4 months 24 days			7 years 7 months 6 days	8 years 7 months 6 days
Options exercisable			6 years 4 months 24 days			7 years 9 months 18 days
Aggregate Intrinsic Value
Options outstanding			$ 17,598,873	$ 21,335,939	$ 20,401,381	$ 10,222,527	$ 5,700,258	$ 6,673,328	$ 17,598,873	$ 10,222,527	$ 18,654,905	$ 0
Options exercisable			$ 10,732,855			$ 4,036,196			$ 10,732,855	$ 4,036,196

XML

Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Retirement Benefits [Abstract]
Years of employment benefits are based upon			5 years
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined contribution plan, employer contribution amount	$ 10,000		$ 10,000
Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	1,267	$ 1,872	5,199	$ 6,172
Interest cost	2,799	1,902	6,911	5,414
Expected return on plan assets	(7,183)	(6,661)	(22,375)	(19,297)
Amortization of Prior service cost	0	0	0	0
Amortization of Net loss	660	0	660	2,000
Net periodic (income) benefit cost	(2,457)	(2,887)	(9,605)	(5,711)
RIM Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	93	100	279	300
Interest cost	97	86	291	258
Expected return on plan assets	0	0	0	0
Amortization of Prior service cost	0	0	0	0
Amortization of Net loss	111	166	333	498
Net periodic (income) benefit cost	301	352	903	1,056
Post-retirement Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	122	130	319	390
Interest cost	185	141	508	423
Expected return on plan assets	0	0	0	0
Amortization of Prior service cost	0	0	0	0
Amortization of Net loss	78	153	234	459
Net periodic (income) benefit cost	385	424	1,061	1,272
Split-Dollar Life Insurance
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	130	141	383	423
Interest cost	158	125	453	375
Expected return on plan assets	0	0	0	0
Amortization of Prior service cost	14	14	42	42
Amortization of Net loss	151	191	453	573
Net periodic (income) benefit cost	453	471	1,331	1,413
Former Roselle Bank President | RIM Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Net periodic (income) benefit cost	3	$ 2	9	$ 6
Former Freehold Bank President | RIM Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Net periodic (income) benefit cost	2		6
Former RSI Bank President | RIM Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Net periodic (income) benefit cost	$ 16		$ 27

XML

Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	$ 1,371,721	$ 1,703,847
Equity securities	3,453	2,710
U.S. government and agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	63,281	34,879
Mortgage-backed securities and collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	1,223,652	1,554,359
Municipal obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	3,557	4,179
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	81,231	110,430
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	54,771	34,879
Equity securities	3,115	2,364
Derivative assets	0	0
Derivative liabilities	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	1,304,581	1,668,968
Equity securities	338	346
Derivative assets	19,897	9,492
Derivative liabilities	19,511	17,366
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	12,369	0
Equity securities	0	0
Derivative assets	0	0
Derivative liabilities	0	0
Measured on recurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	1,371,721	1,703,847
Equity securities	3,453	2,710
Derivative assets	19,897	9,492
Assets	1,395,071	1,716,049
Derivative liabilities	19,511	17,366
Measured on recurring basis | U.S. government and agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	63,281	34,879
Measured on recurring basis | Mortgage-backed securities and collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	1,223,652	1,554,359
Measured on recurring basis | Municipal obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	3,557	4,179
Measured on recurring basis | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	81,231	110,430
Measured on recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	54,771	34,879
Equity securities	3,115	2,364
Derivative assets	0	0
Assets	57,886	37,243
Derivative liabilities	0	0
Measured on recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government and agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	54,771	34,879
Measured on recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities and collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	0	0
Measured on recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	0	0
Measured on recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	0	0
Measured on recurring basis | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	1,304,581	1,668,968
Equity securities	338	346
Derivative assets	19,897	9,492
Assets	1,324,816	1,678,806
Derivative liabilities	19,511	17,366
Measured on recurring basis | Significant Other Observable Inputs (Level 2) | U.S. government and agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	8,510	0
Measured on recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities and collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	1,223,652	1,554,359
Measured on recurring basis | Significant Other Observable Inputs (Level 2) | Municipal obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	887	4,179
Measured on recurring basis | Significant Other Observable Inputs (Level 2) | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	71,532	110,430
Measured on recurring basis | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	12,369	0
Equity securities	0
Derivative assets	0	0
Assets	12,369	0
Derivative liabilities	0	0
Measured on recurring basis | Significant Unobservable Inputs (Level 3) | U.S. government and agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	0	0
Measured on recurring basis | Significant Unobservable Inputs (Level 3) | Mortgage-backed securities and collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	0	0
Measured on recurring basis | Significant Unobservable Inputs (Level 3) | Municipal obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	2,670	0
Measured on recurring basis | Significant Unobservable Inputs (Level 3) | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt securities available for sale	$ 9,699	$ 0

XML

Fair Value Measurements - Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Sep. 30, 2022	Jun. 30, 2022
Debt securities available for sale:
Maturity of Level 3 asset	$ (914)
Change in fair value of Level 3 assets	(256)
Significant Unobservable Inputs (Level 3) | Measured on recurring basis
Debt securities available for sale:
Beginning balance	13,539	$ 0
Transfers into Level 3 assets		13,539
Ending balance	$ 12,369	$ 13,539

XML

Fair Value Measurements - Narrative (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2022 security	Sep. 30, 2022 security
Measured on recurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of assets transferred from level 2 into level 3	0
Measured on recurring basis | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of assets transferred from level 2 into level 3		2
Measured on recurring basis | Corporate debt securities | Measurement Input, Market Yield | Significant Unobservable Inputs (Level 3) | Discounted cash flow
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale, measurement input	0.0800	0.0800
Measured on recurring basis | Municipal obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of assets transferred from level 2 into level 3		4
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjustments for estimated costs to sell collateral dependent impaired loans		6.00%
Minimum | Measured on recurring basis | Municipal obligations | Measurement Input, Market Yield | Significant Unobservable Inputs (Level 3) | Discounted cash flow
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale, measurement input	0.0302	0.0302
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjustments for estimated costs to sell collateral dependent impaired loans		8.00%
Maximum | Measured on recurring basis | Municipal obligations | Measurement Input, Market Yield | Significant Unobservable Inputs (Level 3) | Discounted cash flow
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale, measurement input	0.0305	0.0305
Weighted Average | Measured on recurring basis | Corporate debt securities | Measurement Input, Market Yield | Significant Unobservable Inputs (Level 3) | Discounted cash flow
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale, measurement input	0.0800	0.0800
Weighted Average | Measured on recurring basis | Municipal obligations | Measurement Input, Market Yield | Significant Unobservable Inputs (Level 3) | Discounted cash flow
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities, available-for-sale, measurement input	0.0304	0.0304

XML

Fair Value Measurements - Assets and Liabilities Measured on Non-Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 0	$ 0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	6,441,458	6,457,766
Measured on non-recurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		1,213
Mortgage servicing rights	2,309	1,906
Assets	2,309	3,119
Measured on non-recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0
Mortgage servicing rights	0	0
Assets	0	0
Measured on non-recurring basis | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0
Mortgage servicing rights	0	0
Assets	0	0
Measured on non-recurring basis | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		1,213
Mortgage servicing rights	2,309	1,906
Assets	$ 2,309	$ 3,119

XML

Fair Value Measurements - Qualitative Valuation (Details) $ in Thousands	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Measured on non-recurring basis
Fair Value
Impaired loans		$ 1,213
Mortgage servicing rights	$ 2,309	1,906
Significant Unobservable Inputs (Level 3)
Fair Value
Impaired loans	6,441,458	6,457,766
Significant Unobservable Inputs (Level 3) | Measured on non-recurring basis
Fair Value
Impaired loans		1,213
Mortgage servicing rights	$ 2,309	$ 1,906
Significant Unobservable Inputs (Level 3) | Discount rate | Measured on non-recurring basis | Estimated Cash Flow
Unobservable Inputs
Impaired loans		0
Significant Unobservable Inputs (Level 3) | Discount rate | Measured on non-recurring basis | Weighted Average | Estimated Cash Flow
Unobservable Inputs
Impaired loans		0
Significant Unobservable Inputs (Level 3) | Discount rate | Measured on non-recurring basis | Weighted Average | Discounted cash flow
Unobservable Inputs
Mortgage servicing rights	0.1325	0.1025
Significant Unobservable Inputs (Level 3) | Prepayment speeds and discount rates | Measured on non-recurring basis | Minimum | Discounted cash flow
Unobservable Inputs
Mortgage servicing rights	0.042	0.075
Significant Unobservable Inputs (Level 3) | Prepayment speeds and discount rates | Measured on non-recurring basis | Maximum | Discounted cash flow
Unobservable Inputs
Mortgage servicing rights	0.211	0.249
Significant Unobservable Inputs (Level 3) | Prepayment speeds and discount rates | Measured on non-recurring basis | Weighted Average | Discounted cash flow
Unobservable Inputs
Mortgage servicing rights	0.069	0.127

XML

Fair Value Measurements - Fair Value on Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financial assets:
Debt securities available for sale	$ 1,371,721	$ 1,703,847
Debt securities held to maturity	373,494	434,789
Equity securities	3,453	2,710
Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Cash and cash equivalents	102,048	70,963
Debt securities available for sale	54,771	34,879
Debt securities held to maturity	0	0
Equity securities	3,115	2,364
Federal Home Loan Bank stock	0	0
Loans receivable, net	0	0
Derivative assets	0	0
Financial liabilities:
Deposits	0	0
Borrowings	0	0
Derivative liabilities	0	0
Significant Other Observable Inputs (Level 2)
Financial assets:
Cash and cash equivalents	0	0
Debt securities available for sale	1,304,581	1,668,968
Debt securities held to maturity	373,494	434,789
Equity securities	338	346
Federal Home Loan Bank stock	37,726	23,141
Loans receivable, net	0	0
Derivative assets	19,897	9,492
Financial liabilities:
Deposits	8,001,656	7,564,210
Borrowings	667,380	378,810
Derivative liabilities	19,511	17,366
Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	0	0
Debt securities available for sale	12,369	0
Debt securities held to maturity	0	0
Equity securities	0	0
Federal Home Loan Bank stock	0	0
Loans receivable, net	6,441,458	6,457,766
Derivative assets	0	0
Financial liabilities:
Deposits	0	0
Borrowings	0	0
Derivative liabilities	0	0
Carrying Value
Financial assets:
Cash and cash equivalents	102,048	70,963
Debt securities available for sale	1,371,721	1,703,847
Debt securities held to maturity	425,077	429,734
Equity securities	3,453	2,710
Federal Home Loan Bank stock	37,726	23,141
Loans receivable, net	7,274,332	6,297,912
Derivative assets	19,897	9,492
Financial liabilities:
Deposits	8,064,893	7,570,216
Borrowings	674,018	377,309
Derivative liabilities	19,511	17,366
Total Fair Value
Financial assets:
Cash and cash equivalents	102,048	70,963
Debt securities available for sale	1,371,721	1,703,847
Debt securities held to maturity	373,494	434,789
Equity securities	3,453	2,710
Federal Home Loan Bank stock	37,726	23,141
Loans receivable, net	6,441,458	6,457,766
Derivative assets	19,897	9,492
Financial liabilities:
Deposits	8,001,656	7,564,210
Borrowings	667,380	378,810
Derivative liabilities	$ 19,511	$ 17,366

XML

Other Comprehensive Income (Loss) - Tax Effects of Components in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Before Tax
Other comprehensive (loss) income	$ (63,329)	$ (7,756)	$ (215,728)	$ 20,335
Tax Effect
Other comprehensive (loss) income	18,025	2,168	60,498	435
After Tax
Total other comprehensive (loss) income	(45,304)	(5,588)	(155,230)	20,770
Unrealized (Losses) on Debt Securities Available for Sale
Before Tax
Other comprehensive income (loss), before reclassifications	(65,744)	(13,609)	(198,171)	(26,804)
Other comprehensive (loss) income	(65,763)	(11,316)	(197,989)	(24,813)
Tax Effect
Other comprehensive income (loss), before reclassifications	18,589	3,666	55,528	4,615
Other comprehensive (loss) income	18,595	3,162	55,476	4,213
After Tax
Other comprehensive income (loss), before reclassifications	(47,155)	(9,943)	(142,643)	(22,189)
Total other comprehensive (loss) income	(47,168)	(8,154)	(142,513)	(20,600)
AOCI, Accumulated Gain (Loss), Debt Securities Available-for-sale, Accretion of Unrealized Gains (Losses), Parent
Before Tax
Reclassification from AOCI, current period	(19)	(3)	(28)	(24)
Tax Effect
Reclassification from AOCI, current period	6	1	7	24
After Tax
Reclassification from AOCI, current period	(13)	(2)	(21)	0
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Other Reclassifications, Parent
Before Tax
Reclassification from AOCI, current period	0	2,296	210	2,015
Tax Effect
Reclassification from AOCI, current period	0	(505)	(59)	(426)
After Tax
Reclassification from AOCI, current period	0	1,791	151	1,589
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent
Before Tax
Other comprehensive income (loss), before reclassifications	1,639	2,035	7,171	9,182
Tax Effect
Other comprehensive income (loss), before reclassifications	(457)	(568)	(2,004)	(1,084)
After Tax
Other comprehensive income (loss), before reclassifications	1,182	1,467	5,167	8,098
Total other comprehensive (loss) income	1,182	1,467	5,167	8,098
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent
Before Tax
Reclassification from AOCI, current period	(14)	(14)	(42)	(42)
Tax Effect
Reclassification from AOCI, current period	3	4	11	11
After Tax
Reclassification from AOCI, current period	(11)	(10)	(31)	(31)
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent
Before Tax
Reclassification from AOCI, current period	(339)	(1,511)	(1,017)	(4,533)
Tax Effect
Reclassification from AOCI, current period	95	422	285	1,266
After Tax
Reclassification from AOCI, current period	(244)	(1,089)	(732)	(3,267)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent
Before Tax
Other comprehensive income (loss), before reclassifications	1,148	3,050	(23,851)	40,541
Other comprehensive (loss) income	795	1,525	(24,910)	35,966
Tax Effect
Other comprehensive income (loss), before reclassifications	(211)	(852)	6,730	(3,971)
Other comprehensive (loss) income	(113)	(426)	7,026	(2,694)
After Tax
Other comprehensive income (loss), before reclassifications	937	2,198	(17,121)	36,570
Total other comprehensive (loss) income	$ 682	$ 1,099	$ (17,884)	$ 33,272

XML

Other Comprehensive Income (Loss) - Changes in Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 1,074,284	$ 1,033,046	$ 1,079,081	$ 1,011,287
Current period changes in other comprehensive (loss) income	(45,304)	(5,588)	(155,230)	20,770
Balance at end of year	1,029,645	1,030,876	1,029,645	1,030,876
Accumulated Other Comprehensive (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(155,845)	(43,267)	(45,919)	(69,625)
Current period changes in other comprehensive (loss) income	(45,304)	(5,588)	(155,230)	20,770
Balance at end of year	(201,149)	(48,855)	(201,149)	(48,855)
Unrealized (Losses) on Debt Securities Available for Sale
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(93,701)	18,582	1,644	31,028
Current period changes in other comprehensive (loss) income	(47,168)	(8,154)	(142,513)	(20,600)
Balance at end of year	(140,869)	10,428	(140,869)	10,428
Unrealized (Losses) on Swaps
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(932)	(10,225)	(4,917)	(16,856)
Current period changes in other comprehensive (loss) income	1,182	1,467	5,167	8,098
Balance at end of year	250	(8,758)	250	(8,758)
Employee Benefit Plans
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(61,212)	(51,624)	(42,646)	(83,797)
Current period changes in other comprehensive (loss) income	682	1,099	(17,884)	33,272
Balance at end of year	$ (60,530)	$ (50,525)	$ (60,530)	$ (50,525)

XML

Other Comprehensive Income (Loss) - Reclassification out of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total before tax	$ 27,960	$ 28,694	$ 86,436	$ 94,228
Income tax benefit	(7,041)	(7,712)	(22,154)	(25,513)
Net of tax	20,919	20,982	64,282	68,715
Accumulated Other Comprehensive Income (Loss) Components
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total before tax	(339)	785	(807)	(2,518)
Income tax benefit	95	(83)	226	840
Net of tax	(244)	702	(581)	(1,678)
Accumulated Other Comprehensive Income (Loss) Components | Reclassification adjustment for gain included in net income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Gain on securities transactions	0	2,296	210	2,015
Accumulated Other Comprehensive Income (Loss) Components | Reclassification adjustment of actuarial net (loss) included in net income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other non-interest expense, net	$ (339)	$ (1,511)	$ (1,017)	$ (4,533)

XML

Derivatives and Hedging Activities - Narrative (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) swap	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) swap	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($) swap
Derivative [Line Items]
Accrued interest on derivatives, at fair value	$ 71,000		$ 71,000		$ 567,000
Derivative, net liability position, aggregate fair value	315,000		315,000
Derivative, collateral, right to reclaim cash	482,000		482,000
Currency forward contract - non-designated hedge | Not-designated hedge
Derivative [Line Items]
Notional amount of derivative	0		0		0
Interest Rate Swap
Derivative [Line Items]
Derivative, gain (loss) on derivative, net	118,000	$ (12,000)	594,000	$ 189,000
Interest Rate Swap | Not-designated hedge
Derivative [Line Items]
Notional amount of derivative	$ 205,000,000		$ 205,000,000		$ 183,400,000
Number of interest rate swaps in place with commercial banking customers | swap	54		54		52
Interest Rate Swap | Designated as Hedging Instrument | Federal Home Loan Bank Advances
Derivative [Line Items]
Notional amount of derivative	$ 140,000,000		$ 140,000,000		$ 190,000,000
Number of interest rate derivatives held | swap	10		10		14
Interest Rate Swap | Designated as Hedging Instrument | Commercial Loan
Derivative [Line Items]
Notional amount of derivative	$ 100,000,000		$ 100,000,000
Number of interest rate derivatives held | swap	2		2		0

XML

Derivatives and Hedging Activities - Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Derivatives, Fair Value [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other liabilities	Accrued expenses and other liabilities
Interest rate swaps | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative assets	$ 19,897	$ 9,492
Derivative liabilities	19,511	17,366
Reported Value Measurement
Derivatives, Fair Value [Line Items]
Derivative assets	19,897	9,492
Derivative liabilities	$ 19,511	$ 17,366

XML

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Total out-of-scope non-interest income	$ 3,626	$ 4,523	$ 9,540	$ 18,991
Total non-interest income	8,164	8,874	22,874	31,860
Deposit Account, Title Insurance, Insurance Agency and Other Non-Interest Income
Disaggregation of Revenue [Line Items]
Revenue	4,538	4,351	13,334	12,869
Demand deposit account fees
Disaggregation of Revenue [Line Items]
Revenue	1,510	986	4,129	2,682
Title insurance fees
Disaggregation of Revenue [Line Items]
Revenue	796	1,431	2,788	4,554
Insurance agency income
Disaggregation of Revenue [Line Items]
Revenue	38	0	83	0
Other non-interest income
Disaggregation of Revenue [Line Items]
Revenue	$ 2,194	$ 1,934	$ 6,334	$ 5,633