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.

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.

On October 31, 2022, 38,730 shares of restricted stock were awarded, with a grant date fair value of $20.54 per share. To fund the grant of restricted common stock, the Company issued shares from authorized unissued shares.

On November 21, 2022, 13,722 shares of restricted stock were awarded, with a grant date fair value of $21.86 per share. To fund the grant of restricted common stock, the Company issued shares from authorized unissued shares.

On December 19, 2022, 18,984 shares of restricted stock were awarded, with a grant date fair value of $21.07 per share. To fund the grant of restricted common stock, the Company issued shares from authorized unissued shares.

On May 1, 2023, 201,887 shares of restricted stock were awarded, with a grant date fair value of $15.94 per share. To fund the grant of restricted common stock, the Company issued shares from authorized unissued shares.

On June 20, 2023, 24,687 shares of restricted stock were awarded, with a grant date fair value of $18.23 per share. To fund the grant of restricted common stock, the Company issued shares from authorized 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 are performance awards, which vest upon the satisfactory attainment of certain corporate financial targets. Management recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite performance or service period. During the three months ended September 30, 2023 and 2022, approximately $1.3 million and $901,000 in expense was recognized in regard to these awards. The expected future compensation expense related to the 464,691 non-vested restricted shares outstanding at September 30, 2023 is approximately $5.9 million over a weighted average period of 1.7 years. During the nine months ended September 30, 2023 and 2022, approximately $3.3 million and $3.4 million in expense was recognized in regard to these awards.


	Number of Restricted Shares	Weighted Average Grant Date Fair Value

Non-vested at January 1, 2023	430,954	$	17.31

Vested	(26,424)	21.16
Forfeited	(1,929)	21.12
Non-vested at March 31, 2023	402,601	$	17.10
Grants	226,574	16.19

Forfeited	(10,425)	18.51
Non-vested at June 30, 2023	618,750	$	16.74
Vested	(138,550)	18.27
Forfeited	(15,509)	17.47
Non-vested at September 30, 2023	464,691	$	17.06


	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

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 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 6 years risk-free rate of return of 2.34%, volatility of 25.31%, and a dividend yield of 0.00%.

On October 31, 2022, options to purchase 173,766 shares of Company common stock were awarded with a grant date fair value of $7.22 per option. Stock options granted under the 2019 Plan vest in equal installments over the service period of three years beginning one year from the date of grant. These stock options were granted at an exercise price of 20.54, which represents the fair value of the Company's common stock price on the grant date based on the closing market price and have an expiration period of 10 years. The fair value of stock options granted was estimated utilizing the Black-Scholes option pricing model using the following assumptions: expected life of 6 years, risk-free rate of return of 4.19%, volatility of 26.25%, and a dividend yield of 0.00%.

On December 19, 2022, options to purchase 58,912 shares of Company common stock were awarded with a grant date fair value of $6.79 per option. Stock options granted under the 2019 Plan generally vest in equal installments over the service period of one year beginning one year from the date of grant. These stock options were granted at an exercise price of $21.07, 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 5.5 years, risk-free rate of return of 3.71%, volatility of 26.11%, and a dividend yield of 0.00%.

On May 1, 2023, options to purchase 286,016 shares of Company common stock were awarded with a grant date fair value of $5.48 per option. Stock options granted under the 2019 Plan generally vest in equal installments over the service period of one year beginning one year from the date of grant. These stock options were granted at an exercise price of $15.94, 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 years, risk-free rate of return of 3.60%, volatility of 27.07%, and a dividend yield of 0.00%.

The expected life of the options represents the period of time that stock options are expected to be outstanding and is estimated using the simplified approach, which assumes that all outstanding options will be exercised at the midpoint of the vesting date and full contractual term. The risk-free rate of return is based on the rates on the grant date of a U.S. Treasury Note with a term equal to the expected option life. Since the Company recently converted to a public company and does not have sufficient historical price data, the expected volatility is based on the historical daily stock prices of 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, 2023 and 2022, approximately $1.0 million and $778,000 in expense was recognized in regard to these awards. The expected future compensation expense related to the 1,183,261 non-vested options outstanding at September 30, 2023 is $4.6 million over a weighted average period of 1.6 years. During the nine months ended September 30, 2023 and 2022, approximately $2.9 million and $2.3 million in expense was recognized in regard to these awards.


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

Outstanding, January 1, 2023	3,436,869	$	16.26	6.9	$	18,435,239

Exercised	(3,618)	15.60		—	—
Expired	(2,117)	15.60		—	—
Forfeited	(8,055)	20.03		—	—
Outstanding, March 31, 2023	3,423,079	$	16.25	6.7	$	7,893,117
Granted	286,016	15.94		—	—
Exercised	(37,234)	15.60		—	—
Expired	(1,853)	15.60		—	—
Forfeited	(42,598)	17.72		—	—
Outstanding, June 30, 2023	3,627,410	$	16.22	6.7	$	5,186,690
Exercised	(3,265)	15.60		0	—
Expired	(4,311)	18.52		0	—
Forfeited	(23,966)	19.10		0	—
Outstanding, September 30, 2023	3,595,868	$	17.04	6.4	$	310,461
Options exercisable at September 30, 2023	2,412,607	$	15.79	5.9	$	247,665


	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

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.