Columbia Financial, Inc. (the “Company”) (NASDAQ: CLBK) reported net income of $10.8 million, or $0.10 per basic and diluted share, for the three months ended September 30, 2018, compared to net income of $1.5 million for the three months ended September 30, 2017. The September 30, 2018 quarterly earnings reflect increased tax expense of $2.2 million as a result of the changes in the New Jersey corporate business tax signed into law on July 1, 2018 (Assembly Bill 4202). The September 30, 2017 quarterly earnings reflected $3.3 million of cash contributions to the Columbia Bank Foundation.
For the nine months ended September 30, 2018, the Company reported net income of $7.9 million, or $0.07 per basic and diluted share, compared to net income of $21.1 million for the nine months ended September 30, 2017. The decrease in earnings for the nine month period is driven primarily by the one-time contribution of shares of the Company’s common stock to the Columbia Bank Foundation during the quarter ended June 30, 2018 in connection with the completion of the minority stock offering. Excluding the charitable contribution and gains or losses on the sale of investment securities, core net income would have been $35.3 million for the nine months ended September 30, 2018, an increase of 34.6%, as compared to core net income of $26.2 million for the nine months ended September 30, 2017.
Mr. Thomas J. Kemly, President and Chief Executive Officer commented: “We experienced solid financial results during the quarter driven primarily by loan growth within the multifamily and commercial sectors and a slight improvement of our yield on investment securities. We do, however, continue to experience margin compression driven by the increasing cost of deposits and borrowings given the current interest rate and competitive environment”.