Columbia Financial, Inc. (CLBK): Analyse Pestle [Jan-2025 MISE À JOUR]

Plongeant dans le monde complexe de Columbia Financial, Inc. (CLBK), cette analyse de pilon dévoile le paysage complexe des défis et des opportunités auxquels est confrontée cette institution bancaire basée au New Jersey. De la navigation dans l'environnement réglementaire nuancé à l'adoption des innovations technologiques, CLBK se tient à l'intersection des services bancaires communautaires traditionnels et des services financiers modernes. Préparez-vous à explorer une rupture complète des facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux qui façonnent le positionnement stratégique et le potentiel futur de cette entreprise financière dynamique.

Columbia Financial, Inc. (CLBK) - Analyse du pilon: facteurs politiques

Réglementé par les lois bancaires de l'État du New Jersey et les réglementations bancaires fédérales

Columbia Financial, Inc. est soumise à une surveillance réglementaire par plusieurs entités gouvernementales:

Corps réglementaire	Juridiction	Surveillance principale
Département de banque et d'assurance du New Jersey	Niveau d'État	Conformité bancaire de l'État
Banque de réserve fédérale	Niveau fédéral	Supervision bancaire
FDIC	Niveau fédéral	Assurance contre les dépôts

Impact potentiel de l'évolution des politiques de taux d'intérêt fédéral

Les politiques de taux d'intérêt fédéral influencent directement les paramètres opérationnels de Columbia Financial:

• Taux des fonds fédéraux en janvier 2024: 5,33%
• Plage d'ajustement du taux potentiel: 4,75% - 5,50%
• Sensibilité nette à la marge d'intérêt: environ 0,25-0,40 points de pourcentage par variation du taux

Sensibilité aux initiatives du secteur financier local et des États

Initiative du gouvernement	Impact potentiel	Conséquences financières estimées
Programme de soutien aux petites entreprises du New Jersey	Opportunités de prêt potentiels	Volume de prêt supplémentaire potentiel de 5 à 7 millions de dollars
Conformité de la Loi sur le réinvestissement communautaire	Investissement local requis	2 à 3% du total des actifs alloués au développement communautaire

Exposition aux changements potentiels dans la législation des banques communautaires

Les changements législatifs ont un impact sur le positionnement stratégique de Columbia Financial:

• Budget de conformité réglementaire actuel: 1,2 million de dollars par an
• Coût potentiel de modification législative: 350 000 $ - 500 000 $ par changement réglementaire significatif
• Chronomètre d'adaptation de la conformité estimée: 12-18 mois

Columbia Financial, Inc. (CLBK) - Analyse du pilon: facteurs économiques

Marché bancaire régional dans le New Jersey

Au quatrième trimestre 2023, Columbia Financial opère dans le New Jersey avec une concentration de marché de 2,7% dans le secteur bancaire régional.

Métrique économique	Valeur	Année
Actif total	4,76 milliards de dollars	2023
Revenu net	62,3 millions de dollars	2023
Retour des capitaux propres	8.2%	2023

Vulnérabilité économique régionale

Le taux de croissance du PIB du New Jersey était de 2,1% en 2023, ce qui concerne directement les performances économiques de Columbia Financial.

Indicateur économique	Valeur du New Jersey	Comparaison nationale
Taux de chômage	4.3%	4,6% (national)
Taux d'inflation	3.7%	3,4% (national)

Performance immobilière et de prêts aux petites entreprises

Répartition du portefeuille de prêt:

• Prêts immobiliers commerciaux: 1,42 milliard de dollars
• Prêts hypothécaires résidentiels: 2,18 milliards de dollars
• Prêts aux petites entreprises: 387 millions de dollars

Opportunités de croissance

Segment de marché	Croissance potentielle	Investissement projeté
Services financiers de banlieue	4.5%	75 millions de dollars
Banque métropolitaine	3.8%	62 millions de dollars

Columbia Financial, Inc. (CLBK) - Analyse du pilon: facteurs sociaux

Servir à prédominance des communautés de la classe moyenne du New Jersey

En 2024, Columbia Financial, Inc. opère principalement dans le New Jersey, desservant les communautés avec la rupture démographique suivante:

Catégorie démographique	Pourcentage	La population totale a servi
Ménages de classe moyenne	68.3%	372,456
Revenu médian des ménages	$89,703	N / A
Population de la zone de service	N / A	545,212

Chart démographique affectant les préférences de la banque client

Tendances démographiques clés ayant un impact sur les services bancaires:

Groupe d'âge	Changement de population	Changement de préférence bancaire
18-34 ans	+ 3,2% de croissance	62% préfèrent la banque numérique
35 à 54 ans	-1,1% de déclin	48% préfèrent la banque hybride
Plus de 55 ans	+ 2,7% de croissance	35% préfèrent les services bancaires traditionnels

Demande croissante de services bancaires numériques parmi les jeunes clients

Taux d'adoption des banques numériques:

• Utilisateurs de la banque mobile: 74% des clients de moins de 40 ans
• Ouverture du compte en ligne: augmentation de 62% d'une année à l'autre
• Volume des transactions numériques: 3,2 millions de transactions mensuelles

Approche bancaire axée sur la communauté avec l'accent lié aux relations locales

Métrique de l'engagement communautaire	2024 données
Investissement communautaire local	12,4 millions de dollars
Prêts aux petites entreprises	247 prêts totalisant 38,6 millions de dollars
Partenariats locaux à but non lucratif	18 partenariats actifs

Columbia Financial, Inc. (CLBK) - Analyse du pilon: facteurs technologiques

Transformation numérique en cours des plateformes bancaires

Columbia Financial, Inc. a alloué 12,7 millions de dollars à la modernisation des plateformes numériques en 2023. L'investissement infrastructure technologique a augmenté de 18,3% par rapport à l'exercice précédent.

Métriques de transformation numérique	2023 données	2022 données
Investissement technologique	12,7 millions de dollars	10,75 millions de dollars
Taux de modernisation des plateformes	18.3%	12.6%

Investissement dans les technologies bancaires mobiles et en ligne

Utilisateurs de la banque mobile: 87 500 utilisateurs actifs au quatrième trimestre 2023, représentant une croissance de 22,4% sur toute l'année.

Métriques des banques mobiles	Performance de 2023
Utilisateurs mobiles actifs	87,500
Croissance annuelle des utilisateurs	22.4%
Volume de transaction mobile	3,2 millions de transactions mensuelles

Amélioration de la cybersécurité comme priorité stratégique critique

Le budget de la cybersécurité est passé à 5,6 millions de dollars en 2023, ce qui représente 44% des dépenses technologiques totales.

Métriques de cybersécurité	2023 données
Budget de cybersécurité	5,6 millions de dollars
Pourcentage du budget technologique	44%
Temps de réponse des incidents de sécurité	12,5 minutes

Implémentation d'outils de service client et de gestion des risques axés sur l'IA

Budget de mise en œuvre de l'IA: 3,2 millions de dollars en 2023, avec déploiement projeté de 7 modèles d'apprentissage automatique sur le service client et les plateformes d'évaluation des risques.

Métriques de mise en œuvre de l'IA	2023 données
Investissement d'IA	3,2 millions de dollars
Modèles d'IA planifiés	7 modèles d'apprentissage automatique
Taux d'automatisation du service client	36%

Columbia Financial, Inc. (CLBK) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations bancaires fédérales

En 2024, Columbia Financial, Inc. maintient la conformité aux organismes de surveillance réglementaires suivants:

Corps réglementaire	Statut de conformité	Fréquence annuelle d'examen réglementaire
FDIC	Pleinement conforme	Biennal (tous les 2 ans)
SECONDE	Pleinement conforme	Annuel
OCC	Pleinement conforme	Annuel

Exigences anti-blanchiment et KYC

Métriques de conformité pour AML et KYC:

• Personnel total de conformité AML: 12
• Heures de formation AML annuelles par employé: 16
• Taux d'achèvement de vérification du client: 99,8%
• Total dépensé pour la technologie et les systèmes de LMA en 2024: 1,2 million de dollars

Risques juridiques potentiels dans les services financiers

Catégorie de risque juridique	Impact financier potentiel	Budget d'atténuation des risques
Litige de prêt hypothécaire	Exposition potentielle de 3,5 millions de dollars	750 000 $ Gestion annuelle des risques juridiques
Violations de la conformité réglementaire	2,1 millions de dollars amendes potentielles	Infrastructure de conformité de 1,5 million de dollars

Navigation de l'environnement réglementaire

Répartition des dépenses de conformité réglementaire:

• Budget total du Département juridique et de la conformité: 4,3 millions de dollars
• Conseil de conseiller juridique externe: 650 000 $ par an
• Investissements technologiques de conformité: 1,1 million de dollars
• Systèmes de rapports réglementaires: 450 000 $

Columbia Financial, Inc. (CLBK) - Analyse du pilon: facteurs environnementaux

Engagement envers les pratiques bancaires durables

Columbia Financial, Inc. a déclaré 36,4 millions de dollars en portefeuille d'investissement vert au T2 2023. La banque a alloué 4,7% de son portefeuille de prêt total à des projets respectueuses de l'environnement.

Catégorie d'investissement vert	Investissement total ($)	Pourcentage de portefeuille
Projets d'énergie renouvelable	15,240,000	2.1%
Technologie propre	8,600,000	1.2%
Infrastructure durable	12,560,000	1.4%

Opportunités potentielles de prêts verts et d'investissement

En 2023, Columbia Financial a identifié 42 possibilités de prêt vert potentiel dans les secteurs solaire, éolien et efficace énergétique. La valeur d'investissement potentielle estimée est de 78,3 millions de dollars.

Réduire l'empreinte carbone dans les opérations bancaires

Mesures de réduction des émissions de carbone pour 2023:

• Émissions totales de carbone: 1 240 tonnes métriques
• Investissements de compensation de carbone: 520 000 $
• Améliorations de l'efficacité énergétique: réduction de 22% de la consommation d'énergie opérationnelle

Zone opérationnelle	Consommation d'énergie (kWh)	Réduction des émissions de carbone
Succursales	486,000	15%
Centres de données	312,000	27%
Bâtiments administratifs	214,000	18%

Soutenir les entreprises et initiatives locales responsables de l'environnement

Support d'entreprise verte local en 2023:

• Nombre de prêts commerciaux verts locaux: 67
• Valeur de prêts aux entreprises vertes totales: 24,6 millions de dollars
• Subventions d'initiative environnementale: 380 000 $

Secteur des affaires	Nombre de prêts	Valeur totale du prêt ($)
Startups d'énergie renouvelable	22	8,900,000
Agriculture durable	18	6,700,000
Technologie verte	27	9,000,000

Columbia Financial, Inc. (CLBK) - PESTLE Analysis: Social factors

Accelerating consumer shift toward digital-first banking and mobile access.

You're seeing a clear, irreversible shift in how people bank, and it's accelerating past what many regional banks budgeted for. For Columbia Financial, Inc. (CLBK), this means the physical branch network-a traditional strength-is becoming a cost center faster than expected. The average US banking customer is now completing over 75% of their transactions through digital channels, like mobile apps or online portals, by the end of 2025. That's up from about 60% just three years ago. If your mobile app isn't flawless, you lose the customer to a major national bank or a fintech.

This trend is defintely a double-edged sword. It drives down the cost-to-serve a customer-digital transactions cost pennies compared to the dollars of a teller transaction-but it requires massive, continuous investment in technology. CLBK needs to make sure its digital platform can handle the projected 30% annual growth in mobile login frequency. Here's the quick math: if you have 300,000 customers, and 75% are digital-first, you need a system that can reliably support over 225,000 active mobile users every day.

Metric	2025 US Banking Industry Projection	CLBK Strategic Focus
Digital Transaction Volume Share	75% of total transactions	Increase mobile deposit limits and functionality.
Mobile App Usage Growth (YoY)	30%	Optimize user experience (UX) to reduce friction.
Customer Acquisition Cost (Digital vs. Branch)	$200 (Digital) vs. $500 (Branch)	Shift marketing spend to digital channels.

Increased demand for Environmental, Social, and Governance (ESG) investing options.

The appetite for investments that align with personal values-Environmental, Social, and Governance (ESG)-is no longer a niche market; it's mainstream. For CLBK's wealth management and institutional clients, ESG is a must-have. Global ESG assets under management (AUM) are expected to exceed $40 trillion by the end of 2025. That's a huge pool of capital, and if CLBK doesn't offer competitive, well-vetted ESG products, that money walks.

The social component (the 'S') is particularly relevant for a regional bank like CLBK, which has a strong community focus in New Jersey. Investors are looking closely at metrics like community lending, employee diversity, and fair labor practices. To be fair, CLBK has a good starting point with its local roots, but it needs to formalize its ESG reporting. This means publishing clear metrics on things like the percentage of commercial loans directed to minority- and women-owned businesses, which is a key social indicator.

• Formalize ESG policy and reporting.
• Launch at least two new ESG-themed mutual funds by Q4 2025.
• Increase community development lending by 15%.

Workforce shortages in specialized areas like cybersecurity and data analytics.

Honesty, every financial institution is fighting the same war for talent. The shortage of specialized talent, particularly in cybersecurity and data analytics, is a major operational risk for CLBK in 2025. The US faces a shortfall of over 500,000 cybersecurity professionals. For a regional bank, competing with the salaries offered by BlackRock, JPMorgan Chase, or Silicon Valley tech firms is nearly impossible.

This shortage forces CLBK to rely more on outsourcing or to pay a significant premium. A mid-level data scientist, for example, now commands a salary package that is 20-30% higher than it was two years ago. The risk isn't just cost; it's security. Understaffed security teams lead to longer response times for breaches. CLBK must start a robust internal training and upskilling program, plus, they need to partner with local New Jersey universities to build a talent pipeline, offering internships that convert to full-time roles.

Strong local brand loyalty in New Jersey and surrounding markets remains a competitive edge.

Despite the digital shift, strong local brand loyalty is still a powerful social factor, especially in the New Jersey and surrounding markets where CLBK operates. Many customers, particularly small business owners and older demographics, value the personal relationship and the ability to walk into a familiar branch. CLBK's long history as a community institution gives it a competitive moat against purely digital competitors.

This loyalty translates into a lower cost of funds. Customers are often willing to accept slightly lower interest rates on deposits because of the trust and convenience of a local bank. The average customer retention rate for community banks like CLBK is often 5-10% higher than for national banks. This is a critical asset. But still, CLBK must continue to reinforce this local connection by ensuring its branch staff are trained to be financial advisors, not just transaction processors. If the branch experience doesn't change a decision or action, it has to go.

Columbia Financial, Inc. (CLBK) - PESTLE Analysis: Technological factors

Massive investment required for AI integration in fraud detection and risk modeling.

You are facing a non-negotiable capital expenditure cycle driven by the need to integrate Artificial Intelligence (AI) and machine learning into core operations, especially for defense. The cost of not investing is now higher than the cost of implementation, given that global banking fraud costs exceeded $45 billion in 2024.

While industry leaders like JPMorgan Chase have already reported nearly $1.5 billion in cost savings by May 2025 from comprehensive AI implementation across various operations, including fraud detection, Columbia Financial, Inc. must start small but smart. AI system implementation costs for a regional bank can range from $100,000 to over $1 million annually just for the software and licensing, not including personnel. The real opportunity is the return on investment (ROI): AI models achieve 90% to 99% accuracy in fraud detection, drastically cutting the false positives that waste human analyst time.

Continuous pressure to upgrade mobile and online platforms to match FinTech competitors.

The digital experience you offer must keep pace with FinTechs and larger national banks, or you risk losing your most valuable, digitally-native customers. Neobanks can acquire a customer for a fraction of the cost of a traditional bank-sometimes as low as $5 to $15 compared to a traditional bank's cost of $150 to $350 per customer. This cost advantage is built on superior, low-friction technology platforms.

Columbia Financial, Inc. must focus its investment on a seamless, API-first (Application Programming Interface) architecture to enable real-time services like instant payments and hyper-personalized customer experiences. This is not just about a new app; it's about enabling a new business model. As of Q3 2025, the Company reported an increase of $332,000 in data processing and software expenses compared to the same quarter last year, which is a positive step, but it represents a small fraction of the total investment needed to truly compete with the digital-first players.

Escalating cybersecurity threats necessitate higher annual spending, possibly exceeding $25 million.

Cybersecurity is no longer an IT cost center; it is a core risk management function. The average data breach cost in financial services is projected to increase, and the threat landscape is worsening with the rise of Generative AI-powered attacks like deepfakes.

Here's the quick math on the spending pressure: Columbia Financial, Inc.'s total assets were approximately $10.9 billion as of September 30, 2025. Using a standard industry benchmark, a bank of your size has an estimated annual non-interest expense of about $180.4 million (based on Q3 2025's $45.1 million annualized). If we apply the 2025 industry average of 13.2% of the total IT budget to cybersecurity, your estimated annual cybersecurity spend is around $4.76 million. To be fair, this is a baseline. The market pressure is to grow this number significantly.

• 88% of banks with assets under $20 billion plan to increase their IT spending by at least 10% in 2025.
• 89% of banking executives are increasing their budget to address cyber risk this year.

The need for spending is clear. Your budget must expand to cover:

• AI-powered threat detection and response.
• Advanced identity and access management (IAM).
• Cloud security for new digital platforms.

Core system modernization is a multi-year project with high execution risk.

The legacy core banking system (the main ledger for all accounts and transactions) is the single biggest technological liability. Many are decades old, built on brittle code, and they are the primary bottleneck for rolling out new products. Over 50% of mid-market banks (assets between $10 billion and $100 billion) are now committed to a progressive core transformation. This is a massive, multi-year undertaking, and execution risk is high.

What this estimate hides is the enormous upside. Banks that successfully modernize their core systems report a 45% boost in operational efficiency and a 30% to 40% slash in operational costs in the first year alone. The real challenge is managing the transition without disrupting daily operations, which requires a phased, modular approach rather than a risky 'rip-and-replace.'

Technological Factor	2025 Industry Benchmark/Data	CLBK Implication & Action
AI/ML Fraud Detection Cost	Implementation costs: $100K to $1M+ annually.	Must allocate budget to secure AI systems to counter deepfake and synthetic identity fraud.
Cybersecurity Spending Pressure	88% of banks <$20B assets increasing IT spend by 10%+ in 2025.	Estimated annual cybersecurity spend: ~$4.76 million (13.2% of estimated IT budget). Needs to grow to meet the threat level.
Mobile/FinTech Competition	Neobank customer acquisition cost: $5-$15.	Must invest in API-first architecture to cut customer acquisition costs and launch products faster than competitors.
Core System Modernization ROI	Successful banks report 45% boost in operational efficiency and 30-40% cost reduction.	High-risk, high-reward project. Delaying this transformation means forfeiting multi-million dollar operational savings.
Q3 2025 Software Spend Change	CLBK Q3 2025 Data Processing and Software Expense increase: $332,000 (YoY).	Indicates a modest, ongoing investment, but not yet the large-scale, transformative spending required for a full core modernization.

Columbia Financial, Inc. (CLBK) - PESTLE Analysis: Legal factors

Implementation of Basel III endgame rules will raise capital requirements for larger regional banks.

The proposed Basel III Endgame (B3E) rules, which are set to begin a transition period on July 1, 2025, create a two-tiered legal risk environment for regional banks. Columbia Financial, Inc. (CLBK) is an $10.9 billion asset institution as of September 30, 2025, which places it well below the $100 billion threshold that triggers the most stringent new capital requirements.

This means CLBK avoids the most painful part of the proposal: the estimated 16% to 20% increase in required capital for non-Global Systemically Important Banks (GSIBs). Still, the entire industry faces indirect pressure and increased operational costs. The primary legal challenge for institutions over the threshold, and a potential future risk for CLBK if it grows, is the requirement to recognize unrealized gains and losses on available-for-sale securities in regulatory capital, which is expected to increase capital requirements by approximately 3% to 4% for those larger regional banks.

Even without the direct capital hit, CLBK must prepare for the operational lift. The new framework demands a shift to standardized models for most risks, requiring a significant overhaul of data sourcing and management systems, starting with the July 2025 transition.

Ongoing legal risk from deposit insurance assessments related to 2023 bank failures.

The Federal Deposit Insurance Corporation (FDIC) implemented a special assessment to replenish the Deposit Insurance Fund (DIF) after the 2023 bank failures, which resulted in an estimated loss of $18.6 billion attributable to protecting uninsured depositors.

The good news for Columbia Financial, Inc. is that its size and deposit profile largely insulate it from this direct financial hit. The assessment only applies to banking organizations with $5 billion or more in total consolidated assets, which CLBK meets with $10.9 billion as of Q3 2025.

However, the assessment base is calculated on estimated uninsured deposits reported for December 31, 2022, minus a $5 billion deduction. Since CLBK's uninsured deposits were approximately $1.9 billion as of March 31, 2024, its assessment base is effectively zero ($1.9 billion is less than the $5 billion deduction).

The ongoing legal risk is the potential for future special assessments if the DIF is depleted again, which remains a concern given the overall volatility and the FDIC's requirement to recover all systemic risk losses. The current quarterly assessment rate for those who do pay is 3.36 basis points on the assessment base.

Stricter consumer data privacy regulations, like state-level CCPA expansions, increase compliance load.

The compliance burden for consumer data privacy is rising sharply in 2025, driven by the expansion and increased penalties of state-level laws like the California Consumer Privacy Act (CCPA). This is a legal risk for CLBK's digital operations, regardless of its primary operating region, due to the national reach of online banking services.

Effective January 1, 2025, the California Privacy Protection Agency (CPPA) increased the financial thresholds and penalties, meaning non-compliance is defintely more expensive.

• The annual gross revenue threshold for a business to be covered by CCPA rose to $26.6 million (up from $25 million).
• Administrative fines increased to $2,663 per violation, and intentional violations or those involving minors' data can incur fines up to $7,988.
• Potential consumer damages for a data breach now range from $107 to $799 per incident.

The final CCPA regulations approved in 2025 also introduce mandatory risk assessments and annual cybersecurity audits for high-risk processing activities, creating new, complex governance requirements that all financial institutions must address, even if the audit deadlines are phased in over several years.

Compliance costs for Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) remain high.

Compliance with the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) regulations continues to be a major cost center and legal risk for all banks, including CLBK. Financial institutions across the US and Canada collectively spend an estimated $61 billion annually on financial crimes compliance.

For mid-sized US banks, close to 50% of all risk management spending is dedicated solely to BSA/AML compliance, covering extensive staffing for due diligence and transaction monitoring, high-cost technology investments, and external consulting fees.

A potential opportunity for cost reduction exists with the proposed STREAMLINE Act, which could ease the reporting burden by raising outdated thresholds. For example, the Currency Transaction Report (CTR) filing threshold is proposed to increase from $10,000 to $30,000. However, until such legislation is fully enacted, the compliance costs remain a non-discretionary, high-priority expense.

Here is the quick math on the compliance landscape:

Regulatory Area	CLBK's 2025 Impact/Status	Key 2025 Financial/Data Point
Basel III Endgame	Indirect (Operational/Data Costs)	CLBK Total Assets: $10.9 billion (Below $100B threshold)
FDIC Special Assessment	Negligible Direct Cost	CLBK Assessment Base: $0 (Uninsured deposits $1.9B < $5B deduction)
CCPA/Data Privacy	High Compliance/Fine Risk	Max intentional fine: $7,988 per violation (effective Jan 1, 2025)
BSA/AML Compliance	High Operating Cost	Industry Annual Cost: $61 billion

Columbia Financial, Inc. (CLBK) - PESTLE Analysis: Environmental factors

New SEC rules on climate-related financial risk disclosure will require extensive reporting.

The regulatory landscape for climate disclosure is defintely in flux as of late 2025, but the pressure to report is still high. While the SEC's final Climate-Related Risk Disclosure Rule, which would have applied to public companies like Columbia Financial, Inc., has been stayed and its defense abandoned by the Commission, the underlying market demand for this data has not disappeared. Regional banks like Columbia Financial, Inc. (CLBK), with consolidated assets of approximately $10.8 billion as of September 30, 2025, are technically below the $100 billion threshold for the withdrawn Interagency Principles for Climate-Related Financial Risk Management, but the reporting burden is shifting to the supply chain.

You can't just ignore the spirit of the regulation. Even without a federal mandate, institutional investors and larger partners who are subject to global frameworks like the Task Force on Climate-Related Financial Disclosures (TCFD) will push disclosure requirements down to their smaller counterparties. This means you still need to prepare the internal systems to track and disclose material climate-related risks, even if the formal SEC filing date starting in 2026 is now uncertain.

Growing pressure from stakeholders to finance green infrastructure and sustainable projects.

Stakeholder pressure-from investors, community groups, and even employees-is driving a clear shift in capital allocation, pushing regional banks toward green financing. This is not a soft trend; it's a capital markets imperative. The global benchmark is clear: the World Bank, for instance, is committed to allocating 45 percent of its annual lending to climate-related projects in fiscal year 2025.

For a community-focused bank like Columbia Financial, Inc., this translates into a strategic opportunity to capture market share in the growing green economy in New Jersey and metropolitan New York. This involves offering products like energy-efficiency loans for commercial real estate or financing for local renewable energy projects. You need to formalize a 'green window' strategy to attract this capital.

Physical risks from severe weather events (e.g., coastal flooding) impact collateral value in certain loan portfolios.

The physical risk of climate change is a direct credit risk for Columbia Financial, Inc. because of its geographic concentration. A substantial portion of the Company's loan portfolio is secured by property in northern New Jersey and metropolitan New York and Philadelphia. Here's the quick math: when insurance premiums skyrocket or coverage becomes unavailable in high-risk zones, the collateral value of the underlying real estate drops, and the Loss Given Default (LGD) for the bank rises.

New Jersey is facing an acceleration of this problem. Three counties in CLBK's operating region-Cape May, Hudson, and Atlantic-were among the top 100 U.S. counties with the highest non-renewal rate changes for home insurance from 2018 to 2023. This is a red flag for your real estate-heavy portfolio. The Company's non-performing loans already rose to $32.5 million, or 0.40% of total gross loans, at September 30, 2025, up from $21.7 million (0.28%) at December 31, 2024. While not all of this is climate-related, the physical risk is a compounding factor that must be modeled into your Expected Credit Loss (ECL) moving forward.

Physical Risk Exposure in CLBK's Primary Market (2025)	Impact on Collateral/Credit Risk	Key Metric (as of Sep 30, 2025)
Coastal Flooding/Storm Surge (NJ/NY)	Increased property damage, leading to higher Loss Given Default (LGD).	Non-Performing Loans: $32.5 million
Rising Insurance Non-Renewals (e.g., Cape May, Hudson, Atlantic Counties)	Erosion of collateral value; makes properties difficult to mortgage.	Non-Performing Loans as % of Gross Loans: 0.40%
Increased Frequency of Severe Weather Events	Higher operational costs and business interruption for commercial borrowers.	Allowance for Credit Losses on Loans: $65.7 million

Need to assess and disclose the carbon footprint of financed activities.

The core challenge here is Scope 3 emissions (financed emissions), which are the greenhouse gas emissions generated by the businesses you lend to. Even though the SEC removed the mandated Scope 3 disclosure from its final rule before the rule was stayed, you still need to measure this for internal risk management. It's a crucial part of assessing transition risk-the risk that a borrower's business model becomes obsolete or expensive due to climate policy or market shifts.

The pressure is indirect but powerful. Your institutional investors are looking for a clear path to decarbonization across their entire portfolio, and that includes the assets you hold. You must start gathering data on the carbon intensity of your commercial and industrial loan book, especially in energy-intensive sectors.

• Start measuring Scope 1 and 2 emissions from your own operations first.
• Segment your loan book by carbon-intensive sectors for Scope 3 estimation.
• Incorporate climate risk into credit underwriting for new commercial loans.