Kearny Financial Corp. Announces Second Quarter Fiscal 2023 Results and Declaration of Cash Dividend
26 Enero 2023 - 7:30AM
Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the
holding company of Kearny Bank (the “Bank”), reported net income
for the quarter ended December 31, 2022 of $2.0 million, or
$0.03 per diluted share, compared to $16.5 million, or $0.25 per
diluted share, for the quarter ended September 30, 2022. The
decrease in net income and earnings per share for the quarter was
largely attributable to a previously announced after-tax loss of
$10.8 million on the sale of securities.
The Company also announced that its Board of
Directors has declared a quarterly cash dividend of $0.11 per
share, payable on February 22, 2023 to stockholders of record as of
February 8, 2023.
Craig L. Montanaro, President and Chief
Executive Officer, commented, “During the quarter ended December
31, 2022, in light of the challenges presented by the prevailing
economic and interest rate environment, we completed the
restructuring of a portion of our investment securities portfolio
and adopted a company-wide operating efficiency initiative
targeting a five to ten percent reduction in our annual operating
expense. While these initiatives resulted in the recognition of
various non-recurring charges, which adversely impacted this
quarter’s net income, they are a part of our strategy to position
ourselves for future earnings improvement, irrespective of the
macro-economic environment.”
Balance Sheet
- Total assets
increased $399.7 million, or 5.1%, to $8.29 billion at
December 31, 2022, from $7.89 billion at September 30,
2022.
- Loans receivable
increased $327.8 million, or 5.8%, to $5.98 billion at
December 31, 2022, from $5.66 billion at September 30,
2022.
- Investment
securities increased $61.0 million to $1.44 billion, or 17.4% of
total assets, at December 31, 2022, from $1.38 billion, or
17.5% of total assets, at September 30, 2022.
- Deposits decreased
$136.9 million, or 2.2%, to $5.97 billion at December 31,
2022, from $6.11 billion at September 30, 2022.
- Borrowings
increased $532.1 million to $1.38 billion, or 16.7% of total
assets, at December 31, 2022, from $851.5 million, or 10.8% of
total assets, at September 30, 2022.
Earnings
Performance Highlights
- Return on average
assets was 0.10% for the quarter ended December 31, 2022
compared to 0.85% for the quarter ended September 30,
2022.
- Return on average
equity was 0.90% and 7.38% for the quarters ended December 31,
2022 and September 30, 2022, respectively. Return on average
tangible equity was 1.20% and 9.70% for those same comparative
periods.
Net Interest Income and Net Interest
Margin
- Net interest margin
contracted 31 basis points to 2.38% for the quarter ended
December 31, 2022, from 2.69% for the quarter ended
September 30, 2022. The decrease was due largely to increases
in the cost and average balance of interest-bearing liabilities,
partially offset by increases in the yield and average balance of
interest-earning assets.
- Net interest income
decreased $3.7 million to $44.8 million for the quarter ended
December 31, 2022, from $48.5 million for the quarter ended
September 30, 2022. Included in net interest income for the
quarters ended December 31, 2022 and September 30, 2022,
respectively, was purchase accounting accretion of $1.9 million and
$1.8 million, and loan prepayment penalty income of $166,000 and
$441,000.
Non-Interest Income
- Non-interest income
decreased $14.4 million to a loss of $8.5 million for the quarter
ended December 31, 2022, from income of $5.9 million for the
quarter ended September 30, 2022. The decrease was primarily
attributable to a loss of $15.2 million on the sale of securities
for the quarter ended December 31, 2022.
- Income from bank
owned life insurance decreased $1.9 million for the quarter ended
December 31, 2022 as a result of $2.1 million in payouts on
life insurance policies in the prior comparative period.
- Included in other
income, during the quarter ended December 31, 2022, was a
non-recurring gain of $2.9 million attributable to the sale of a
former branch location.
Non-Interest Expense
- Non-interest
expense increased $662,000 to $32.7 million for the quarter ended
December 31, 2022, from $32.0 million for the quarter ended
September 30, 2022. The increase was primarily attributable to
$757,000 of non-recurring severance expense resulting from a
workforce realignment.
- Other expense
increased $684,000, largely due to a $353,000 increase in the
provision for credit losses on unfunded commitments, a $230,000
increase in professional fees and a $147,000 increase in OREO
expenses.
- Federal deposit
insurance premium expense increased $320,000 to $1.2 million for
the quarter ended December 31, 2022, largely driven by asset
growth.
- Salaries and
benefits expense decreased $427,000 to $19.9 million for the
quarter ended December 31, 2022. This decrease was driven by
lower salary, payroll tax and incentive compensation expense.
Partially offsetting these decreases were non-recurring severance
expense resulting from a workforce realignment and an increase in
incentive payments tied to loan origination volume.
- The efficiency and
non-interest expense ratios were 89.93% and 1.62%, respectively,
for the quarter ended December 31, 2022, as compared to 58.75%
and 1.65%, respectively, for the quarter ended September 30,
2022.
Income Taxes
- Income tax expense
totaled $33,000 for the quarter ended December 31, 2022
compared to $5.3 million for the quarter ended September 30,
2022, resulting in an effective tax rate of 1.7% and 24.1%,
respectively. The decrease in the effective tax rate was primarily
due to a year-to-date tax rate true-up which resulted from the loss
on the sale of securities during the current quarter. The loss
lowered the Company’s full year projected taxable income and income
tax provision.
Asset Quality
- The balance of
non-performing assets decreased $14.8 million to $62.6 million, or
0.76% of total assets, at December 31, 2022, from $77.4
million, or 0.98% of total assets, at September 30, 2022. The
decrease in non-performing assets was primarily attributable to
loans previously on non-accrual returning to accrual status. During
the current period, the Company acquired a $13.0 million
nonresidential real estate property through foreclosure, which is
included in the balance of non-performing assets.
- Net charge-offs
totaled $407,000, or 0.03% of average loans, on an annualized
basis, for the quarter ended December 31, 2022, compared to
$115,000, or 0.01% of average loans, on an annualized basis, for
the quarter ended September 30, 2022.
- For the quarter
ended December 31, 2022, the Company recorded a provision for
credit losses of $1.7 million, compared to $670,000 for the quarter
ended September 30, 2022. The provision for the quarter ended
December 31, 2022 was largely driven by loan growth, partially
offset by a reduction in the qualitative component of the Company’s
allowance for credit losses.
- The allowance for
credit losses was $48.9 million, or 0.81% of total loans, at
December 31, 2022, compared to $47.6 million, or 0.84% of
total loans, at September 30, 2022.
Capital
- For the quarter
ended December 31, 2022, book value per share increased $0.07,
or 0.5%, to $12.95 and tangible book value per share increased
$0.05, or 0.5%, to $9.78.
- During the quarter
ended December 31, 2022, the Company repurchased 549,800
shares of common stock at a cost of $5.7 million, or $10.45 per
share.
- At
December 31, 2022, the Company’s tangible equity to tangible
assets ratio equaled 8.16% and the regulatory capital ratios of
both the Company and the Bank were in excess of the levels required
by federal banking regulators to be classified as
“well-capitalized” under regulatory guidelines.
Statements contained in this news release that
are not historical facts are forward-looking statements as that
term is defined in the Private Securities Litigation Reform Act of
1995. Such forward-looking statements are subject to risks and
uncertainties which could cause actual results to differ materially
from those currently anticipated due to a number of factors, which
include, but are not limited to, factors discussed in documents
filed by the Company with the Securities and Exchange Commission
from time to time. The Company does not undertake and specifically
disclaims any obligation to update any forward-looking statement,
whether written or oral, that may be made from time to time by or
on behalf of the Company.
In addition, the COVID-19 pandemic has had, and
may continue to have, an adverse impact on the Company, its clients
and the communities it serves. Given its dynamic nature, it is
difficult to predict the full impact of the COVID-19 pandemic on
our business.
For further information contact:Craig L.
Montanaro, President and Chief Executive Officer, orKeith
Suchodolski, Senior Executive Vice President and Chief Financial
OfficerKearny Financial Corp.(973) 244-4500
Category: Earnings
Linked-Quarter Comparative Financial Analysis |
Kearny Financial
Corp.Consolidated Balance
Sheets(Unaudited)
(Dollars and Shares in Thousands,Except Per Share Data) |
December 31,2022 |
September 30,2022 |
Variance or Change |
Variance or Change Pct. |
Assets |
|
|
|
|
Cash and cash equivalents |
$ |
75,660 |
|
$ |
96,076 |
|
$ |
(20,416 |
) |
-21.2 |
% |
Securities available for
sale |
|
1,286,354 |
|
|
1,263,176 |
|
|
23,178 |
|
1.8 |
% |
Securities held to
maturity |
|
153,786 |
|
|
115,943 |
|
|
37,843 |
|
32.6 |
% |
Loans held-for-sale |
|
12,940 |
|
|
12,936 |
|
|
4 |
|
— |
% |
Loans receivable |
|
5,984,133 |
|
|
5,656,370 |
|
|
327,763 |
|
5.8 |
% |
Less: allowance for credit losses on loans |
|
(48,877 |
) |
|
(47,613 |
) |
|
1,264 |
|
2.7 |
% |
Net loans receivable |
|
5,935,256 |
|
|
5,608,757 |
|
|
326,499 |
|
5.8 |
% |
Premises and equipment |
|
50,953 |
|
|
52,642 |
|
|
(1,689 |
) |
-3.2 |
% |
Federal Home Loan Bank
stock |
|
69,022 |
|
|
44,957 |
|
|
24,065 |
|
53.5 |
% |
Accrued interest
receivable |
|
27,368 |
|
|
23,817 |
|
|
3,551 |
|
14.9 |
% |
Goodwill |
|
210,895 |
|
|
210,895 |
|
|
— |
|
— |
% |
Core deposit intangible |
|
2,732 |
|
|
2,876 |
|
|
(144 |
) |
-5.0 |
% |
Bank owned life insurance |
|
289,673 |
|
|
289,690 |
|
|
(17 |
) |
— |
% |
Deferred income taxes,
net |
|
51,107 |
|
|
54,278 |
|
|
(3,171 |
) |
-5.8 |
% |
Other real estate owned |
|
13,410 |
|
|
178 |
|
|
13,232 |
|
7433.7 |
% |
Other assets |
|
110,162 |
|
|
113,369 |
|
|
(3,207 |
) |
-2.8 |
% |
Total assets |
$ |
8,289,318 |
|
$ |
7,889,590 |
|
$ |
399,728 |
|
5.1 |
% |
|
|
|
|
|
Liabilities |
|
|
|
|
Deposits: |
|
|
|
|
Non-interest-bearing |
$ |
650,950 |
|
$ |
683,406 |
|
$ |
(32,456 |
) |
-4.7 |
% |
Interest-bearing |
|
5,320,421 |
|
|
5,424,872 |
|
|
(104,451 |
) |
-1.9 |
% |
Total deposits |
|
5,971,371 |
|
|
6,108,278 |
|
|
(136,907 |
) |
-2.2 |
% |
Borrowings |
|
1,383,573 |
|
|
851,454 |
|
|
532,119 |
|
62.5 |
% |
Advance payments by borrowers
for taxes |
|
17,307 |
|
|
16,555 |
|
|
752 |
|
4.5 |
% |
Other liabilities |
|
44,427 |
|
|
38,329 |
|
|
6,098 |
|
15.9 |
% |
Total liabilities |
|
7,416,678 |
|
|
7,014,616 |
|
|
402,062 |
|
5.7 |
% |
|
|
|
|
|
Stockholders'
Equity |
|
|
|
|
Common stock |
|
674 |
|
|
680 |
|
|
(6 |
) |
-0.9 |
% |
Paid-in capital |
|
515,332 |
|
|
520,245 |
|
|
(4,913 |
) |
-0.9 |
% |
Retained earnings |
|
449,489 |
|
|
454,710 |
|
|
(5,221 |
) |
-1.1 |
% |
Unearned ESOP shares |
|
(23,834 |
) |
|
(24,321 |
) |
|
487 |
|
2.0 |
% |
Accumulated other
comprehensive loss |
|
(69,021 |
) |
|
(76,340 |
) |
|
7,319 |
|
9.6 |
% |
Total stockholders' equity |
|
872,640 |
|
|
874,974 |
|
|
(2,334 |
) |
-0.3 |
% |
Total liabilities and stockholders' equity |
$ |
8,289,318 |
|
$ |
7,889,590 |
|
$ |
399,728 |
|
5.1 |
% |
|
|
|
|
|
Consolidated capital
ratios |
|
|
|
|
Equity to assets |
|
10.53 |
% |
|
11.09 |
% |
|
-0.56 |
% |
|
Tangible equity to tangible assets (1) |
|
8.16 |
% |
|
8.61 |
% |
|
-0.45 |
% |
|
|
|
|
|
|
Share
data |
|
|
|
|
Outstanding shares |
|
67,388 |
|
|
67,938 |
|
|
(550 |
) |
-0.8 |
% |
Book value per share |
$ |
12.95 |
|
$ |
12.88 |
|
$ |
0.07 |
|
0.5 |
% |
Tangible book value per share (2) |
$ |
9.78 |
|
$ |
9.73 |
|
$ |
0.05 |
|
0.5 |
% |
_________________________
(1) |
|
Tangible equity equals total stockholders' equity reduced by
goodwill and core deposit intangible assets. Tangible assets equals
total assets reduced by goodwill and core deposit intangible
assets. |
(2) |
|
Tangible book value equals total
stockholders' equity reduced by goodwill and core deposit
intangible assets. |
Kearny Financial
Corp.Consolidated Statements of
Income(Unaudited)
(Dollars and Shares in Thousands,Except Per Share Data) |
Three Months Ended |
Variance or Change |
Variance or Change Pct. |
December 31,2022 |
September 30,2022 |
Interest income |
|
|
|
|
Loans |
$ |
57,996 |
|
$ |
52,935 |
|
$ |
5,061 |
|
9.6 |
% |
Taxable investment securities |
|
13,221 |
|
|
10,439 |
|
|
2,782 |
|
26.7 |
% |
Tax-exempt investment securities |
|
219 |
|
|
285 |
|
|
(66 |
) |
-23.2 |
% |
Other interest-earning assets |
|
1,005 |
|
|
761 |
|
|
244 |
|
32.1 |
% |
Total interest income |
|
72,441 |
|
|
64,420 |
|
|
8,021 |
|
12.5 |
% |
|
|
|
|
|
Interest
expense |
|
|
|
|
Deposits |
|
18,822 |
|
|
10,869 |
|
|
7,953 |
|
73.2 |
% |
Borrowings |
|
8,836 |
|
|
5,020 |
|
|
3,816 |
|
76.0 |
% |
Total interest expense |
|
27,658 |
|
|
15,889 |
|
|
11,769 |
|
74.1 |
% |
Net interest income |
|
44,783 |
|
|
48,531 |
|
|
(3,748 |
) |
-7.7 |
% |
Provision for credit
losses |
|
1,671 |
|
|
670 |
|
|
1,001 |
|
149.4 |
% |
Net interest income after provision for credit
losses |
|
43,112 |
|
|
47,861 |
|
|
(4,749 |
) |
-9.9 |
% |
|
|
|
|
|
Non-interest
income |
|
|
|
|
Fees and service charges |
|
734 |
|
|
763 |
|
|
(29 |
) |
-3.8 |
% |
Loss on sale and call of securities |
|
(15,227 |
) |
|
— |
|
|
(15,227 |
) |
— |
% |
Gain on sale of loans |
|
134 |
|
|
395 |
|
|
(261 |
) |
-66.1 |
% |
Income from bank owned life insurance |
|
1,761 |
|
|
3,698 |
|
|
(1,937 |
) |
-52.4 |
% |
Electronic banking fees and charges |
|
397 |
|
|
506 |
|
|
(109 |
) |
-21.5 |
% |
Other income |
|
3,723 |
|
|
555 |
|
|
3,168 |
|
570.8 |
% |
Total non-interest income |
|
(8,478 |
) |
|
5,917 |
|
|
(14,395 |
) |
-243.3 |
% |
|
|
|
|
|
Non-interest
expense |
|
|
|
|
Salaries and employee benefits |
|
19,921 |
|
|
20,348 |
|
|
(427 |
) |
-2.1 |
% |
Net occupancy expense of premises |
|
2,987 |
|
|
3,090 |
|
|
(103 |
) |
-3.3 |
% |
Equipment and systems |
|
3,867 |
|
|
3,662 |
|
|
205 |
|
5.6 |
% |
Advertising and marketing |
|
731 |
|
|
747 |
|
|
(16 |
) |
-2.1 |
% |
Federal deposit insurance premium |
|
1,226 |
|
|
906 |
|
|
320 |
|
35.3 |
% |
Directors' compensation |
|
339 |
|
|
340 |
|
|
(1 |
) |
-0.3 |
% |
Other expense |
|
3,579 |
|
|
2,895 |
|
|
684 |
|
23.6 |
% |
Total non-interest expense |
|
32,650 |
|
|
31,988 |
|
|
662 |
|
2.1 |
% |
Income before income taxes |
|
1,984 |
|
|
21,790 |
|
|
(19,806 |
) |
-90.9 |
% |
Income taxes |
|
33 |
|
|
5,255 |
|
|
(5,222 |
) |
-99.4 |
% |
Net income |
$ |
1,951 |
|
$ |
16,535 |
|
$ |
(14,584 |
) |
-88.2 |
% |
|
|
|
|
|
Net income per common
share (EPS) |
|
|
|
|
Basic |
$ |
0.03 |
|
$ |
0.25 |
|
$ |
(0.22 |
) |
|
Diluted |
$ |
0.03 |
|
$ |
0.25 |
|
$ |
(0.22 |
) |
|
|
|
|
|
|
Dividends
declared |
|
|
|
|
Cash dividends declared per common share |
$ |
0.11 |
|
$ |
0.11 |
|
$ |
— |
|
|
Cash dividends declared |
$ |
7,172 |
|
$ |
7,276 |
|
$ |
(104 |
) |
|
Dividend payout ratio |
|
367.6 |
% |
|
44.0 |
% |
|
323.6 |
% |
|
|
|
|
|
|
Weighted average
number of common shares outstanding |
|
|
|
|
Basic |
|
65,030 |
|
|
65,737 |
|
|
(707 |
) |
|
Diluted |
|
65,038 |
|
|
65,756 |
|
|
(718 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Kearny Financial
Corp.Average Balance Sheet
Data(Unaudited)
(Dollars in Thousands) |
Three Months Ended |
Variance or Change |
Variance or Change Pct. |
December 31,2022 |
September 30,2022 |
Assets |
|
|
|
|
Interest-earning assets: |
|
|
|
|
Loans receivable, including loans held for sale |
$ |
5,839,903 |
|
$ |
5,553,996 |
|
$ |
285,907 |
|
5.1 |
% |
Taxable investment securities |
|
1,527,578 |
|
|
1,516,974 |
|
|
10,604 |
|
0.7 |
% |
Tax-exempt investment securities |
|
37,917 |
|
|
48,973 |
|
|
(11,056 |
) |
-22.6 |
% |
Other interest-earning assets |
|
114,175 |
|
|
88,038 |
|
|
26,137 |
|
29.7 |
% |
Total interest-earning assets |
|
7,519,573 |
|
|
7,207,981 |
|
|
311,592 |
|
4.3 |
% |
Non-interest-earning
assets |
|
550,519 |
|
|
570,225 |
|
|
(19,706 |
) |
-3.5 |
% |
Total assets |
$ |
8,070,092 |
|
$ |
7,778,206 |
|
$ |
291,886 |
|
3.8 |
% |
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
Deposits: |
|
|
|
|
Interest-bearing demand |
$ |
2,359,977 |
|
$ |
2,354,340 |
|
$ |
5,637 |
|
0.2 |
% |
Savings |
|
931,584 |
|
|
1,019,343 |
|
|
(87,759 |
) |
-8.6 |
% |
Certificates of deposit |
|
2,192,722 |
|
|
2,014,922 |
|
|
177,800 |
|
8.8 |
% |
Total interest-bearing deposits |
|
5,484,283 |
|
|
5,388,605 |
|
|
95,678 |
|
1.8 |
% |
Borrowings: |
|
|
|
|
Federal Home Loan Bank advances |
|
997,148 |
|
|
642,399 |
|
|
354,749 |
|
55.2 |
% |
Other borrowings |
|
— |
|
|
127,456 |
|
|
(127,456 |
) |
-100.0 |
% |
Total borrowings |
|
997,148 |
|
|
769,855 |
|
|
227,293 |
|
29.5 |
% |
Total interest-bearing liabilities |
|
6,481,431 |
|
|
6,158,460 |
|
|
322,971 |
|
5.2 |
% |
Non-interest-bearing
liabilities: |
|
|
|
|
Non-interest-bearing deposits |
|
666,846 |
|
|
667,624 |
|
|
(778 |
) |
-0.1 |
% |
Other non-interest-bearing liabilities |
|
56,721 |
|
|
56,431 |
|
|
290 |
|
0.5 |
% |
Total non-interest-bearing liabilities |
|
723,567 |
|
|
724,055 |
|
|
(488 |
) |
-0.1 |
% |
Total liabilities |
|
7,204,998 |
|
|
6,882,515 |
|
|
322,483 |
|
4.7 |
% |
Stockholders' equity |
|
865,094 |
|
|
895,691 |
|
|
(30,597 |
) |
-3.4 |
% |
Total liabilities and stockholders' equity |
$ |
8,070,092 |
|
$ |
7,778,206 |
|
$ |
291,886 |
|
3.8 |
% |
|
|
|
|
|
Average interest-earning assets to average interest-bearing
liabilities |
|
116.02 |
% |
|
117.04 |
% |
|
-1.02 |
% |
-0.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Kearny Financial
Corp.Performance Ratio
Highlights(Unaudited)
|
Three Months Ended |
Variance or Change |
|
December 31,2022 |
September 30,2022 |
Average yield on
interest-earning assets: |
|
|
|
Loans receivable, including loans held for sale |
3.97 |
% |
3.81 |
% |
0.16 |
% |
Taxable investment securities |
3.46 |
% |
2.75 |
% |
0.71 |
% |
Tax-exempt investment securities (1) |
2.32 |
% |
2.33 |
% |
-0.01 |
% |
Other interest-earning assets |
3.52 |
% |
3.46 |
% |
0.06 |
% |
Total interest-earning assets |
3.85 |
% |
3.57 |
% |
0.28 |
% |
|
|
|
|
Average cost of
interest-bearing liabilities: |
|
|
|
Deposits: |
|
|
|
Interest-bearing demand |
1.63 |
% |
0.92 |
% |
0.71 |
% |
Savings |
0.41 |
% |
0.23 |
% |
0.18 |
% |
Certificates of deposit |
1.50 |
% |
0.97 |
% |
0.53 |
% |
Total interest-bearing deposits |
1.37 |
% |
0.81 |
% |
0.56 |
% |
Borrowings: |
|
|
|
Federal Home Loan Bank advances |
3.54 |
% |
2.68 |
% |
0.86 |
% |
Other borrowings |
— |
% |
2.26 |
% |
-2.26 |
% |
Total borrowings |
3.54 |
% |
2.61 |
% |
0.93 |
% |
Total interest-bearing liabilities |
1.71 |
% |
1.03 |
% |
0.68 |
% |
|
|
|
|
Interest rate spread (2) |
2.14 |
% |
2.54 |
% |
-0.40 |
% |
Net interest margin (3) |
2.38 |
% |
2.69 |
% |
-0.31 |
% |
|
|
|
|
Non-interest income to average assets (annualized) |
-0.42 |
% |
0.30 |
% |
-0.72 |
% |
Non-interest expense to average assets (annualized) |
1.62 |
% |
1.65 |
% |
-0.03 |
% |
|
|
|
|
Efficiency ratio (4) |
89.93 |
% |
58.75 |
% |
31.18 |
% |
|
|
|
|
Return on average assets (annualized) |
0.10 |
% |
0.85 |
% |
-0.75 |
% |
Return on average equity (annualized) |
0.90 |
% |
7.38 |
% |
-6.48 |
% |
Return on average tangible equity (annualized) (5) |
1.20 |
% |
9.70 |
% |
-8.50 |
% |
_________________________
(1) |
|
The yield on tax-exempt investment securities has not been adjusted
to reflect their tax-effective yield. |
(2) |
|
Interest income divided by average interest-earning assets less
interest expense divided by average interest-bearing
liabilities. |
(3) |
|
Net interest income divided by average interest-earning
assets. |
(4) |
|
Non-interest expense divided by the sum of net interest income and
non-interest income. |
(5) |
|
Average tangible equity equals total average stockholders’ equity
reduced by average goodwill and average core deposit intangible
assets. |
|
Five-Quarter Financial Trend Analysis |
Kearny Financial
Corp.Consolidated Balance Sheets
(Dollars and Shares in Thousands,Except Per Share Data) |
December 31,2022 |
September 30,2022 |
June 30,2022 |
March 31,2022 |
December 31,2021 |
|
(Unaudited) |
(Unaudited) |
(Audited) |
(Unaudited) |
(Unaudited) |
Assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
75,660 |
|
$ |
96,076 |
|
$ |
101,615 |
|
$ |
62,379 |
|
$ |
60,452 |
|
Securities available for
sale |
|
1,286,354 |
|
|
1,263,176 |
|
|
1,344,093 |
|
|
1,526,086 |
|
|
1,591,066 |
|
Securities held to
maturity |
|
153,786 |
|
|
115,943 |
|
|
118,291 |
|
|
121,853 |
|
|
53,142 |
|
Loans held-for-sale |
|
12,940 |
|
|
12,936 |
|
|
28,874 |
|
|
2,822 |
|
|
12,549 |
|
Loans receivable |
|
5,984,133 |
|
|
5,656,370 |
|
|
5,417,845 |
|
|
5,003,201 |
|
|
4,826,404 |
|
Less: allowance for credit losses on loans |
|
(48,877 |
) |
|
(47,613 |
) |
|
(47,058 |
) |
|
(43,860 |
) |
|
(48,216 |
) |
Net loans receivable |
|
5,935,256 |
|
|
5,608,757 |
|
|
5,370,787 |
|
|
4,959,341 |
|
|
4,778,188 |
|
Premises and equipment |
|
50,953 |
|
|
52,642 |
|
|
53,281 |
|
|
53,727 |
|
|
54,067 |
|
Federal Home Loan Bank
stock |
|
69,022 |
|
|
44,957 |
|
|
47,144 |
|
|
30,997 |
|
|
36,622 |
|
Accrued interest
receivable |
|
27,368 |
|
|
23,817 |
|
|
20,466 |
|
|
19,517 |
|
|
18,495 |
|
Goodwill |
|
210,895 |
|
|
210,895 |
|
|
210,895 |
|
|
210,895 |
|
|
210,895 |
|
Core deposit intangible |
|
2,732 |
|
|
2,876 |
|
|
3,020 |
|
|
3,166 |
|
|
3,344 |
|
Bank owned life insurance |
|
289,673 |
|
|
289,690 |
|
|
289,177 |
|
|
287,644 |
|
|
286,433 |
|
Deferred income taxes,
net |
|
51,107 |
|
|
54,278 |
|
|
49,350 |
|
|
34,349 |
|
|
25,709 |
|
Other real estate owned |
|
13,410 |
|
|
178 |
|
|
178 |
|
|
401 |
|
|
658 |
|
Other assets |
|
110,162 |
|
|
113,369 |
|
|
82,712 |
|
|
76,714 |
|
|
54,603 |
|
Total assets |
$ |
8,289,318 |
|
$ |
7,889,590 |
|
$ |
7,719,883 |
|
$ |
7,389,891 |
|
$ |
7,186,223 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Non-interest-bearing |
$ |
650,950 |
|
$ |
683,406 |
|
$ |
653,899 |
|
$ |
621,954 |
|
$ |
604,805 |
|
Interest-bearing |
|
5,320,421 |
|
|
5,424,872 |
|
|
5,208,357 |
|
|
4,906,708 |
|
|
4,849,220 |
|
Total deposits |
|
5,971,371 |
|
|
6,108,278 |
|
|
5,862,256 |
|
|
5,528,662 |
|
|
5,454,025 |
|
Borrowings |
|
1,383,573 |
|
|
851,454 |
|
|
901,337 |
|
|
851,220 |
|
|
686,105 |
|
Advance payments by borrowers
for taxes |
|
17,307 |
|
|
16,555 |
|
|
16,746 |
|
|
16,979 |
|
|
16,772 |
|
Other liabilities |
|
44,427 |
|
|
38,329 |
|
|
45,544 |
|
|
37,861 |
|
|
33,851 |
|
Total liabilities |
|
7,416,678 |
|
|
7,014,616 |
|
|
6,825,883 |
|
|
6,434,722 |
|
|
6,190,753 |
|
|
|
|
|
|
|
Stockholders'
Equity |
|
|
|
|
|
Common stock |
|
674 |
|
|
680 |
|
|
687 |
|
|
714 |
|
|
735 |
|
Paid-in capital |
|
515,332 |
|
|
520,245 |
|
|
528,396 |
|
|
561,176 |
|
|
587,392 |
|
Retained earnings |
|
449,489 |
|
|
454,710 |
|
|
445,451 |
|
|
441,522 |
|
|
431,549 |
|
Unearned ESOP shares |
|
(23,834 |
) |
|
(24,321 |
) |
|
(24,807 |
) |
|
(25,294 |
) |
|
(25,780 |
) |
Accumulated other comprehensive (loss) income |
|
(69,021 |
) |
|
(76,340 |
) |
|
(55,727 |
) |
|
(22,949 |
) |
|
1,574 |
|
Total stockholders' equity |
|
872,640 |
|
|
874,974 |
|
|
894,000 |
|
|
955,169 |
|
|
995,470 |
|
Total liabilities and stockholders' equity |
$ |
8,289,318 |
|
$ |
7,889,590 |
|
$ |
7,719,883 |
|
$ |
7,389,891 |
|
$ |
7,186,223 |
|
|
|
|
|
|
|
Consolidated capital
ratios |
|
|
|
|
|
Equity to assets |
|
10.53 |
% |
|
11.09 |
% |
|
11.58 |
% |
|
12.93 |
% |
|
13.85 |
% |
Tangible equity to tangible assets (1) |
|
8.16 |
% |
|
8.61 |
% |
|
9.06 |
% |
|
10.33 |
% |
|
11.21 |
% |
|
|
|
|
|
|
Share
data |
|
|
|
|
|
Outstanding shares |
|
67,388 |
|
|
67,938 |
|
|
68,666 |
|
|
71,424 |
|
|
73,453 |
|
Book value per share |
$ |
12.95 |
|
$ |
12.88 |
|
$ |
13.02 |
|
$ |
13.37 |
|
$ |
13.55 |
|
Tangible book value per share (2) |
$ |
9.78 |
|
$ |
9.73 |
|
$ |
9.90 |
|
$ |
10.38 |
|
$ |
10.64 |
|
_________________________
(1) |
|
Tangible equity equals total stockholders' equity reduced by
goodwill and core deposit intangible assets. Tangible assets equals
total assets reduced by goodwill and core deposit intangible
assets. |
(2) |
|
Tangible book value equals total stockholders' equity reduced by
goodwill and core deposit intangible assets. |
Kearny Financial
Corp.Supplemental Balance Sheet
Highlights(Unaudited)
(Dollars in Thousands) |
December 31,2022 |
September 30,2022 |
June 30,2022 |
March 31,2022 |
December 31,2021 |
Loan portfolio composition: |
|
|
|
|
|
Commercial loans: |
|
|
|
|
|
Multi-family mortgage |
$ |
2,851,721 |
|
$ |
2,570,297 |
|
$ |
2,409,090 |
|
$ |
2,076,003 |
|
$ |
2,007,431 |
|
Nonresidential mortgage |
|
1,017,341 |
|
|
1,040,688 |
|
|
1,019,838 |
|
|
1,085,988 |
|
|
1,026,447 |
|
Commercial business |
|
177,530 |
|
|
186,361 |
|
|
176,807 |
|
|
169,551 |
|
|
180,429 |
|
Construction |
|
186,663 |
|
|
166,052 |
|
|
140,131 |
|
|
121,137 |
|
|
110,703 |
|
Total commercial loans |
|
4,233,255 |
|
|
3,963,398 |
|
|
3,745,866 |
|
|
3,452,679 |
|
|
3,325,010 |
|
One- to four-family residential mortgage |
|
1,719,514 |
|
|
1,666,730 |
|
|
1,645,816 |
|
|
1,527,980 |
|
|
1,477,267 |
|
Consumer loans: |
|
|
|
|
|
Home equity loans |
|
45,690 |
|
|
43,269 |
|
|
42,028 |
|
|
41,501 |
|
|
43,934 |
|
Other consumer |
|
2,648 |
|
|
2,869 |
|
|
2,866 |
|
|
2,755 |
|
|
3,040 |
|
Total consumer loans |
|
48,338 |
|
|
46,138 |
|
|
44,894 |
|
|
44,256 |
|
|
46,974 |
|
Total loans, excluding yield adjustments |
|
6,001,107 |
|
|
5,676,266 |
|
|
5,436,576 |
|
|
5,024,915 |
|
|
4,849,251 |
|
Unaccreted yield adjustments |
|
(16,974 |
) |
|
(19,896 |
) |
|
(18,731 |
) |
|
(21,714 |
) |
|
(22,847 |
) |
Loans receivable, net of yield adjustments |
|
5,984,133 |
|
|
5,656,370 |
|
|
5,417,845 |
|
|
5,003,201 |
|
|
4,826,404 |
|
Less: allowance for credit losses on loans |
|
(48,877 |
) |
|
(47,613 |
) |
|
(47,058 |
) |
|
(43,860 |
) |
|
(48,216 |
) |
Net loans receivable |
$ |
5,935,256 |
|
$ |
5,608,757 |
|
$ |
5,370,787 |
|
$ |
4,959,341 |
|
$ |
4,778,188 |
|
|
|
|
|
|
|
Asset
quality: |
|
|
|
|
|
Nonperforming assets: |
|
|
|
|
|
Accruing loans - 90 days and over past due |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Nonaccrual loans |
|
40,549 |
|
|
68,574 |
|
|
70,321 |
|
|
80,595 |
|
|
72,138 |
|
Total nonperforming loans |
|
40,549 |
|
|
68,574 |
|
|
70,321 |
|
|
80,595 |
|
|
72,138 |
|
Nonaccrual loans held-for-sale |
|
8,650 |
|
|
8,650 |
|
|
21,745 |
|
|
— |
|
|
— |
|
Other real estate owned |
|
13,410 |
|
|
178 |
|
|
178 |
|
|
401 |
|
|
658 |
|
Total nonperforming assets |
$ |
62,609 |
|
$ |
77,402 |
|
$ |
92,244 |
|
$ |
80,996 |
|
$ |
72,796 |
|
|
|
|
|
|
|
Nonperforming loans (% total loans) |
|
0.68 |
% |
|
1.21 |
% |
|
1.30 |
% |
|
1.61 |
% |
|
1.49 |
% |
Nonperforming assets (% total assets) |
|
0.76 |
% |
|
0.98 |
% |
|
1.19 |
% |
|
1.10 |
% |
|
1.01 |
% |
|
|
|
|
|
|
Classified loans |
$ |
86,069 |
|
$ |
92,610 |
|
$ |
94,555 |
|
$ |
163,621 |
|
$ |
162,174 |
|
|
|
|
|
|
|
Allowance for credit losses on loans (ACL): |
|
|
|
|
|
ACL to total loans |
|
0.81 |
% |
|
0.84 |
% |
|
0.87 |
% |
|
0.87 |
% |
|
0.99 |
% |
ACL to nonperforming loans |
|
120.54 |
% |
|
69.43 |
% |
|
66.92 |
% |
|
54.42 |
% |
|
66.84 |
% |
Net charge-offs |
$ |
407 |
|
$ |
115 |
|
$ |
1,024 |
|
$ |
436 |
|
$ |
1,149 |
|
Average net charge-off rate (annualized) |
|
0.03 |
% |
|
0.01 |
% |
|
0.08 |
% |
|
0.04 |
% |
|
0.10 |
% |
|
|
|
|
|
|
Funding
composition: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Non-interest-bearing deposits |
$ |
650,950 |
|
$ |
683,406 |
|
$ |
653,899 |
|
$ |
621,954 |
|
$ |
604,805 |
|
Interest-bearing demand |
|
2,316,485 |
|
|
2,382,411 |
|
|
2,265,597 |
|
|
2,154,488 |
|
|
2,106,693 |
|
Savings |
|
901,514 |
|
|
982,916 |
|
|
1,053,198 |
|
|
1,088,974 |
|
|
1,087,740 |
|
Certificates of deposit (retail) |
|
1,354,907 |
|
|
1,263,124 |
|
|
1,116,035 |
|
|
1,122,228 |
|
|
1,184,530 |
|
Certificates of deposit (brokered and listing service) |
|
747,515 |
|
|
796,421 |
|
|
773,527 |
|
|
541,018 |
|
|
470,257 |
|
Interest-bearing deposits |
|
5,320,421 |
|
|
5,424,872 |
|
|
5,208,357 |
|
|
4,906,708 |
|
|
4,849,220 |
|
Total deposits |
|
5,971,371 |
|
|
6,108,278 |
|
|
5,862,256 |
|
|
5,528,662 |
|
|
5,454,025 |
|
|
|
|
|
|
|
Borrowings: |
|
|
|
|
|
Federal Home Loan Bank advances |
|
1,256,573 |
|
|
796,454 |
|
|
651,337 |
|
|
541,220 |
|
|
666,105 |
|
Overnight borrowings |
|
127,000 |
|
|
55,000 |
|
|
250,000 |
|
|
310,000 |
|
|
20,000 |
|
Total borrowings |
|
1,383,573 |
|
|
851,454 |
|
|
901,337 |
|
|
851,220 |
|
|
686,105 |
|
|
|
|
|
|
|
Total funding |
$ |
7,354,944 |
|
$ |
6,959,732 |
|
$ |
6,763,593 |
|
$ |
6,379,882 |
|
$ |
6,140,130 |
|
|
|
|
|
|
|
Loans as a % of deposits |
|
99.6 |
% |
|
92.0 |
% |
|
92.1 |
% |
|
89.8 |
% |
|
87.8 |
% |
Deposits as a % of total funding |
|
81.2 |
% |
|
87.8 |
% |
|
86.7 |
% |
|
86.7 |
% |
|
88.8 |
% |
Borrowings as a % of total funding |
|
18.8 |
% |
|
12.2 |
% |
|
13.3 |
% |
|
13.3 |
% |
|
11.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kearny Financial
Corp.Consolidated Statements of
Income(Unaudited)
|
Three Months Ended |
(Dollars and Shares in Thousands,Except Per Share Data) |
December 31,2022 |
September 30,2022 |
June 30,2022 |
March 31,2022 |
December 31,2021 |
Interest income |
|
|
|
|
|
Loans |
$ |
57,996 |
|
$ |
52,935 |
|
$ |
48,869 |
|
$ |
45,846 |
|
$ |
47,575 |
|
Taxable investment securities |
|
13,221 |
|
|
10,439 |
|
|
8,915 |
|
|
8,024 |
|
|
7,595 |
|
Tax-exempt investment securities |
|
219 |
|
|
285 |
|
|
297 |
|
|
316 |
|
|
327 |
|
Other interest-earning assets |
|
1,005 |
|
|
761 |
|
|
472 |
|
|
415 |
|
|
415 |
|
Total interest income |
|
72,441 |
|
|
64,420 |
|
|
58,553 |
|
|
54,601 |
|
|
55,912 |
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
Deposits |
|
18,822 |
|
|
10,869 |
|
|
3,915 |
|
|
3,565 |
|
|
3,663 |
|
Borrowings |
|
8,836 |
|
|
5,020 |
|
|
4,039 |
|
|
3,309 |
|
|
3,562 |
|
Total interest expense |
|
27,658 |
|
|
15,889 |
|
|
7,954 |
|
|
6,874 |
|
|
7,225 |
|
Net interest income |
|
44,783 |
|
|
48,531 |
|
|
50,599 |
|
|
47,727 |
|
|
48,687 |
|
Provision for (reversal of)
credit losses |
|
1,671 |
|
|
670 |
|
|
4,222 |
|
|
(3,920 |
) |
|
(2,420 |
) |
Net interest income after provision for (reversal of)
credit losses |
|
43,112 |
|
|
47,861 |
|
|
46,377 |
|
|
51,647 |
|
|
51,107 |
|
|
|
|
|
|
|
Non-interest
income |
|
|
|
|
|
Fees and service charges |
|
734 |
|
|
763 |
|
|
658 |
|
|
617 |
|
|
698 |
|
(Loss) gain on sale and call of securities |
|
(15,227 |
) |
|
— |
|
|
(563 |
) |
|
3 |
|
|
— |
|
Gain on sale of loans |
|
134 |
|
|
395 |
|
|
187 |
|
|
376 |
|
|
970 |
|
(Loss) gain on sale of other real estate owned |
|
— |
|
|
— |
|
|
(9 |
) |
|
14 |
|
|
— |
|
Income from bank owned life insurance |
|
1,761 |
|
|
3,698 |
|
|
1,533 |
|
|
1,511 |
|
|
1,562 |
|
Electronic banking fees and charges |
|
397 |
|
|
506 |
|
|
366 |
|
|
432 |
|
|
421 |
|
Other income |
|
3,723 |
|
|
555 |
|
|
638 |
|
|
238 |
|
|
482 |
|
Total non-interest income |
|
(8,478 |
) |
|
5,917 |
|
|
2,810 |
|
|
3,191 |
|
|
4,133 |
|
|
|
|
|
|
|
Non-interest
expense |
|
|
|
|
|
Salaries and employee benefits |
|
19,921 |
|
|
20,348 |
|
|
20,367 |
|
|
19,184 |
|
|
18,096 |
|
Net occupancy expense of premises |
|
2,987 |
|
|
3,090 |
|
|
3,188 |
|
|
3,223 |
|
|
3,156 |
|
Equipment and systems |
|
3,867 |
|
|
3,662 |
|
|
4,516 |
|
|
3,822 |
|
|
3,723 |
|
Advertising and marketing |
|
731 |
|
|
747 |
|
|
703 |
|
|
516 |
|
|
448 |
|
Federal deposit insurance premium |
|
1,226 |
|
|
906 |
|
|
762 |
|
|
480 |
|
|
721 |
|
Directors' compensation |
|
339 |
|
|
340 |
|
|
340 |
|
|
340 |
|
|
649 |
|
Other expense |
|
3,579 |
|
|
2,895 |
|
|
3,736 |
|
|
3,058 |
|
|
2,877 |
|
Total non-interest expense |
|
32,650 |
|
|
31,988 |
|
|
33,612 |
|
|
30,623 |
|
|
29,670 |
|
Income before income taxes |
|
1,984 |
|
|
21,790 |
|
|
15,575 |
|
|
24,215 |
|
|
25,570 |
|
Income taxes |
|
33 |
|
|
5,255 |
|
|
4,205 |
|
|
6,522 |
|
|
6,801 |
|
Net income |
$ |
1,951 |
|
$ |
16,535 |
|
$ |
11,370 |
|
$ |
17,693 |
|
$ |
18,769 |
|
|
|
|
|
|
|
Net income per common
share (EPS) |
|
|
|
|
|
Basic |
$ |
0.03 |
|
$ |
0.25 |
|
$ |
0.17 |
|
$ |
0.25 |
|
$ |
0.26 |
|
Diluted |
$ |
0.03 |
|
$ |
0.25 |
|
$ |
0.17 |
|
$ |
0.25 |
|
$ |
0.26 |
|
|
|
|
|
|
|
Dividends
declared |
|
|
|
|
|
Cash dividends declared per common share |
$ |
0.11 |
|
$ |
0.11 |
|
$ |
0.11 |
|
$ |
0.11 |
|
$ |
0.11 |
|
Cash dividends declared |
$ |
7,172 |
|
$ |
7,276 |
|
$ |
7,441 |
|
$ |
7,720 |
|
$ |
7,921 |
|
Dividend payout ratio |
|
367.6 |
% |
|
44.0 |
% |
|
65.4 |
% |
|
43.6 |
% |
|
42.2 |
% |
|
|
|
|
|
|
Weighted average number of common shares
outstanding |
|
|
|
|
|
Basic |
|
65,030 |
|
|
65,737 |
|
|
67,240 |
|
|
69,790 |
|
|
72,011 |
|
Diluted |
|
65,038 |
|
|
65,756 |
|
|
67,276 |
|
|
69,817 |
|
|
72,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kearny Financial
Corp.Average Balance Sheet
Data(Unaudited)
|
Three Months Ended |
(Dollars in Thousands) |
December 31,2022 |
September 30,2022 |
June 30,2022 |
March 31,2022 |
December 31,2021 |
Assets |
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
Loans receivable, including loans held-for-sale |
$ |
5,839,903 |
|
$ |
5,553,996 |
|
$ |
5,181,983 |
|
$ |
4,850,236 |
|
$ |
4,822,959 |
|
Taxable investment securities |
|
1,527,578 |
|
|
1,516,974 |
|
|
1,608,372 |
|
|
1,620,996 |
|
|
1,610,395 |
|
Tax-exempt investment securities |
|
37,917 |
|
|
48,973 |
|
|
51,672 |
|
|
55,390 |
|
|
57,686 |
|
Other interest-earning assets |
|
114,175 |
|
|
88,038 |
|
|
87,990 |
|
|
79,644 |
|
|
77,811 |
|
Total interest-earning assets |
|
7,519,573 |
|
|
7,207,981 |
|
|
6,930,017 |
|
|
6,606,266 |
|
|
6,568,851 |
|
Non-interest-earning
assets |
|
550,519 |
|
|
570,225 |
|
|
564,734 |
|
|
601,684 |
|
|
611,390 |
|
Total assets |
$ |
8,070,092 |
|
$ |
7,778,206 |
|
$ |
7,494,751 |
|
$ |
7,207,950 |
|
$ |
7,180,241 |
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Interest-bearing demand |
$ |
2,359,977 |
|
$ |
2,354,340 |
|
$ |
2,155,946 |
|
$ |
2,133,977 |
|
$ |
2,027,021 |
|
Savings |
|
931,584 |
|
|
1,019,343 |
|
|
1,077,631 |
|
|
1,088,351 |
|
|
1,086,903 |
|
Certificates of deposit |
|
2,192,722 |
|
|
2,014,922 |
|
|
1,701,725 |
|
|
1,650,048 |
|
|
1,693,423 |
|
Total interest-bearing deposits |
|
5,484,283 |
|
|
5,388,605 |
|
|
4,935,302 |
|
|
4,872,376 |
|
|
4,807,347 |
|
Borrowings: |
|
|
|
|
|
Federal Home Loan Bank advances |
|
997,148 |
|
|
642,399 |
|
|
752,579 |
|
|
632,811 |
|
|
666,029 |
|
Other borrowings |
|
— |
|
|
127,456 |
|
|
185,901 |
|
|
51,667 |
|
|
26,033 |
|
Total borrowings |
|
997,148 |
|
|
769,855 |
|
|
938,480 |
|
|
684,478 |
|
|
692,062 |
|
Total interest-bearing liabilities |
|
6,481,431 |
|
|
6,158,460 |
|
|
5,873,782 |
|
|
5,556,854 |
|
|
5,499,409 |
|
Non-interest-bearing
liabilities: |
|
|
|
|
|
Non-interest-bearing deposits |
|
666,846 |
|
|
667,624 |
|
|
640,200 |
|
|
624,152 |
|
|
624,200 |
|
Other non-interest-bearing liabilities |
|
56,721 |
|
|
56,431 |
|
|
56,636 |
|
|
49,455 |
|
|
50,870 |
|
Total non-interest-bearing liabilities |
|
723,567 |
|
|
724,055 |
|
|
696,836 |
|
|
673,607 |
|
|
675,070 |
|
Total liabilities |
|
7,204,998 |
|
|
6,882,515 |
|
|
6,570,618 |
|
|
6,230,461 |
|
|
6,174,479 |
|
Stockholders' equity |
|
865,094 |
|
|
895,691 |
|
|
924,133 |
|
|
977,489 |
|
|
1,005,762 |
|
Total liabilities and stockholders' equity |
$ |
8,070,092 |
|
$ |
7,778,206 |
|
$ |
7,494,751 |
|
$ |
7,207,950 |
|
$ |
7,180,241 |
|
|
|
|
|
|
|
Average interest-earning assets to average interest-bearing
liabilities |
|
116.02 |
% |
|
117.04 |
% |
|
117.98 |
% |
|
118.89 |
% |
|
119.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kearny Financial
Corp.Performance Ratio Highlights
|
Three Months Ended |
|
December 31,2022 |
September 30,2022 |
June 30,2022 |
March 31,2022 |
December 31,2021 |
Average yield on interest-earning assets: |
|
|
|
|
|
Loans receivable, including loans held-for-sale |
3.97 |
% |
3.81 |
% |
3.77 |
% |
3.78 |
% |
3.95 |
% |
Taxable investment securities |
3.46 |
% |
2.75 |
% |
2.22 |
% |
1.98 |
% |
1.89 |
% |
Tax-exempt investment securities (1) |
2.32 |
% |
2.33 |
% |
2.30 |
% |
2.28 |
% |
2.26 |
% |
Other interest-earning assets |
3.52 |
% |
3.46 |
% |
2.15 |
% |
2.08 |
% |
2.13 |
% |
Total interest-earning assets |
3.85 |
% |
3.57 |
% |
3.38 |
% |
3.31 |
% |
3.40 |
% |
|
|
|
|
|
|
Average cost of
interest-bearing liabilities: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Interest-bearing demand |
1.63 |
% |
0.92 |
% |
0.31 |
% |
0.22 |
% |
0.22 |
% |
Savings |
0.41 |
% |
0.23 |
% |
0.11 |
% |
0.10 |
% |
0.11 |
% |
Certificates of deposit |
1.50 |
% |
0.97 |
% |
0.46 |
% |
0.52 |
% |
0.53 |
% |
Total interest-bearing deposits |
1.37 |
% |
0.81 |
% |
0.32 |
% |
0.29 |
% |
0.30 |
% |
Borrowings: |
|
|
|
|
|
Federal Home Loan Bank advances |
3.54 |
% |
2.68 |
% |
1.96 |
% |
2.08 |
% |
2.14 |
% |
Other borrowings |
— |
% |
2.26 |
% |
0.77 |
% |
0.17 |
% |
0.09 |
% |
Total borrowings |
3.54 |
% |
2.61 |
% |
1.72 |
% |
1.93 |
% |
2.06 |
% |
Total interest-bearing liabilities |
1.71 |
% |
1.03 |
% |
0.54 |
% |
0.49 |
% |
0.53 |
% |
|
|
|
|
|
|
Interest rate spread (2) |
2.14 |
% |
2.54 |
% |
2.84 |
% |
2.82 |
% |
2.87 |
% |
Net interest margin (3) |
2.38 |
% |
2.69 |
% |
2.92 |
% |
2.89 |
% |
2.96 |
% |
|
|
|
|
|
|
Non-interest income to average assets (annualized) |
-0.42 |
% |
0.30 |
% |
0.15 |
% |
0.18 |
% |
0.23 |
% |
Non-interest expense to average assets (annualized) |
1.62 |
% |
1.65 |
% |
1.79 |
% |
1.70 |
% |
1.65 |
% |
|
|
|
|
|
|
Efficiency ratio (4) |
89.93 |
% |
58.75 |
% |
62.93 |
% |
60.14 |
% |
56.17 |
% |
|
|
|
|
|
|
Return on average assets (annualized) |
0.10 |
% |
0.85 |
% |
0.61 |
% |
0.98 |
% |
1.05 |
% |
Return on average equity (annualized) |
0.90 |
% |
7.38 |
% |
4.92 |
% |
7.24 |
% |
7.46 |
% |
Return on average tangible equity (annualized) (5) |
1.20 |
% |
9.70 |
% |
6.40 |
% |
9.27 |
% |
9.49 |
% |
_________________________
(1) |
|
The yield on tax-exempt investment securities has not been adjusted
to reflect their tax-effective yield. |
(2) |
|
Interest income divided by
average interest-earning assets less interest expense divided by
average interest-bearing liabilities. |
(3) |
|
Net interest income divided by
average interest-earning assets. |
(4) |
|
Non-interest expense divided by
the sum of net interest income and non-interest income. |
(5) |
|
Average tangible equity equals
total average stockholders’ equity reduced by average goodwill and
average core deposit intangible assets. |
The following tables provide a reconciliation of
certain financial measures calculated in accordance with Generally
Accepted Accounting Principles (“GAAP”) (as reported) and non-GAAP
measures. These non-GAAP measures provide additional information
which allow readers to evaluate the ongoing performance of the
Company. They are not a substitute for GAAP measures; they should
be read and used in conjunction with the Company’s GAAP financial
information. In all cases, it should be understood that non-GAAP
per share measures do not depict amounts that accrue directly to
the benefit of shareholders.
Kearny Financial
Corp.Reconciliation of GAAP to
Non-GAAP(Unaudited)
|
Three Months Ended |
(Dollars and Shares in Thousands,Except Per Share Data) |
December 31,2022 |
September 30,2022 |
June 30,2022 |
March 31,2022 |
December 31,2021 |
Adjusted net income: |
|
|
|
|
|
Net income (GAAP) |
$ |
1,951 |
|
$ |
16,535 |
|
$ |
11,370 |
|
$ |
17,693 |
|
$ |
18,769 |
|
Non-recurring transactions - net of tax: |
|
|
|
|
|
Net effect of sale and call of securities |
|
10,811 |
|
|
— |
|
|
400 |
|
|
(2 |
) |
|
— |
|
Net effect of sale of other assets |
|
(2,081 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(251 |
) |
Severance expense from workforce realignment |
|
538 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Branch consolidation expenses and impairment charges |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
132 |
|
Adjusted net income |
$ |
11,219 |
|
$ |
16,535 |
|
$ |
12,338 |
|
$ |
17,691 |
|
$ |
18,650 |
|
|
|
|
|
|
|
Calculation of
pre-tax, pre-provision net revenue: |
|
|
|
|
|
Net income (GAAP) |
$ |
1,951 |
|
$ |
16,535 |
|
$ |
11,370 |
|
$ |
17,693 |
|
$ |
18,769 |
|
Adjustments to net income (GAAP): |
|
|
|
|
|
Provision for income taxes |
|
33 |
|
|
5,255 |
|
|
4,205 |
|
|
6,522 |
|
|
6,801 |
|
Provision for (reversal of) credit losses |
|
1,671 |
|
|
670 |
|
|
4,222 |
|
|
(3,920 |
) |
|
(2,420 |
) |
Pre-tax, pre-provision net revenue (non-GAAP) |
$ |
3,655 |
|
$ |
22,460 |
|
$ |
19,797 |
|
$ |
20,295 |
|
$ |
23,150 |
|
|
|
|
|
|
|
Adjusted earnings per
share: |
|
|
|
|
|
Weighted average common shares - basic |
|
65,030 |
|
|
65,737 |
|
|
67,240 |
|
|
69,790 |
|
|
72,011 |
|
Weighted average common shares - diluted |
|
65,038 |
|
|
65,756 |
|
|
67,276 |
|
|
69,817 |
|
|
72,037 |
|
|
|
|
|
|
|
Earnings per share - basic (GAAP) |
$ |
0.03 |
|
$ |
0.25 |
|
$ |
0.17 |
|
$ |
0.25 |
|
$ |
0.26 |
|
Earnings per share - diluted (GAAP) |
$ |
0.03 |
|
$ |
0.25 |
|
$ |
0.17 |
|
$ |
0.25 |
|
$ |
0.26 |
|
|
|
|
|
|
|
Adjusted earnings per share - basic (non-GAAP) |
$ |
0.17 |
|
$ |
0.25 |
|
$ |
0.18 |
|
$ |
0.25 |
|
$ |
0.26 |
|
Adjusted earnings per share - diluted (non-GAAP) |
$ |
0.17 |
|
$ |
0.25 |
|
$ |
0.18 |
|
$ |
0.25 |
|
$ |
0.26 |
|
|
|
|
|
|
|
Pre-tax, pre-provision
net revenue per share: |
|
|
|
|
|
Pre-tax, pre-provision net revenue per share - basic
(non-GAAP) |
$ |
0.06 |
|
$ |
0.34 |
|
$ |
0.29 |
|
$ |
0.29 |
|
$ |
0.32 |
|
Pre-tax, pre-provision net revenue per share - diluted
(non-GAAP) |
$ |
0.06 |
|
$ |
0.34 |
|
$ |
0.29 |
|
$ |
0.29 |
|
$ |
0.32 |
|
|
|
|
|
|
|
Adjusted return on
average assets: |
|
|
|
|
|
Total average assets |
$ |
8,070,092 |
|
$ |
7,778,206 |
|
$ |
7,494,751 |
|
$ |
7,207,950 |
|
$ |
7,180,241 |
|
|
|
|
|
|
|
Return on average assets (GAAP) |
|
0.10 |
% |
|
0.85 |
% |
|
0.61 |
% |
|
0.98 |
% |
|
1.05 |
% |
Adjusted return on average assets (non-GAAP) |
|
0.56 |
% |
|
0.85 |
% |
|
0.66 |
% |
|
0.98 |
% |
|
1.04 |
% |
|
|
|
|
|
|
Adjusted return on
average equity: |
|
|
|
|
|
Total average equity |
$ |
865,094 |
|
$ |
895,691 |
|
$ |
924,133 |
|
$ |
977,489 |
|
$ |
1,005,762 |
|
|
|
|
|
|
|
Return on average equity (GAAP) |
|
0.90 |
% |
|
7.38 |
% |
|
4.92 |
% |
|
7.24 |
% |
|
7.46 |
% |
Adjusted return on average equity (non-GAAP) |
|
5.19 |
% |
|
7.38 |
% |
|
5.34 |
% |
|
7.24 |
% |
|
7.42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kearny Financial
Corp.Reconciliation of GAAP to
Non-GAAP(Unaudited)
|
Three Months Ended |
(Dollars and Shares in Thousands,Except Per Share Data) |
December 31,2022 |
September 30,2022 |
June 30,2022 |
March 31,2022 |
December 31,2021 |
Adjusted return on average tangible equity: |
|
|
|
|
|
Total average equity |
$ |
865,094 |
|
$ |
895,691 |
|
$ |
924,133 |
|
$ |
977,489 |
|
$ |
1,005,762 |
|
Less: average goodwill |
|
(210,895 |
) |
|
(210,895 |
) |
|
(210,895 |
) |
|
(210,895 |
) |
|
(210,895 |
) |
Less: average other intangible
assets |
|
(2,826 |
) |
|
(2,971 |
) |
|
(3,116 |
) |
|
(3,282 |
) |
|
(3,462 |
) |
Total average tangible
equity |
$ |
651,373 |
|
$ |
681,825 |
|
$ |
710,122 |
|
$ |
763,312 |
|
$ |
791,405 |
|
|
|
|
|
|
|
Return on average tangible
equity (non-GAAP) |
|
1.20 |
% |
|
9.70 |
% |
|
6.40 |
% |
|
9.27 |
% |
|
9.49 |
% |
Adjusted return on average
tangible equity (non-GAAP) |
|
6.89 |
% |
|
9.70 |
% |
|
6.95 |
% |
|
9.27 |
% |
|
9.43 |
% |
|
|
|
|
|
|
Adjusted non-interest
expense ratio: |
|
|
|
|
|
Non-interest expense
(GAAP) |
$ |
32,650 |
|
$ |
31,988 |
|
$ |
33,612 |
|
$ |
30,623 |
|
$ |
29,670 |
|
Non-recurring
transactions: |
|
|
|
|
|
Severance expense from
workforce realignment |
|
(757 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Early contract
termination |
|
— |
|
|
— |
|
|
(800 |
) |
|
— |
|
|
— |
|
Branch consolidation expenses
and impairment charges |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(187 |
) |
Non-interest expense
(non-GAAP) |
$ |
31,893 |
|
$ |
31,988 |
|
$ |
32,812 |
|
$ |
30,623 |
|
$ |
29,483 |
|
|
|
|
|
|
|
Non-interest expense ratio
(GAAP) |
|
1.62 |
% |
|
1.65 |
% |
|
1.79 |
% |
|
1.70 |
% |
|
1.65 |
% |
Adjusted non-interest expense
ratio (non-GAAP) |
|
1.58 |
% |
|
1.65 |
% |
|
1.75 |
% |
|
1.70 |
% |
|
1.64 |
% |
|
|
|
|
|
|
Adjusted efficiency
ratio: |
|
|
|
|
|
Non-interest expense
(non-GAAP) |
$ |
31,893 |
|
$ |
31,988 |
|
$ |
32,812 |
|
$ |
30,623 |
|
$ |
29,483 |
|
|
|
|
|
|
|
Net interest income
(GAAP) |
$ |
44,783 |
|
$ |
48,531 |
|
$ |
50,599 |
|
$ |
47,727 |
|
$ |
48,687 |
|
Total non-interest income
(GAAP) |
|
(8,478 |
) |
|
5,917 |
|
|
2,810 |
|
|
3,191 |
|
|
4,133 |
|
Non-recurring
transactions: |
|
|
|
|
|
Net effect of sale and call of
securities |
|
15,227 |
|
|
— |
|
|
563 |
|
|
(3 |
) |
|
— |
|
Net effect of sale of other
assets |
|
(2,931 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(356 |
) |
Total revenue (non-GAAP) |
$ |
48,601 |
|
$ |
54,448 |
|
$ |
53,972 |
|
$ |
50,915 |
|
$ |
52,464 |
|
|
|
|
|
|
|
Efficiency ratio (GAAP) |
|
89.93 |
% |
|
58.75 |
% |
|
62.93 |
% |
|
60.14 |
% |
|
56.17 |
% |
Adjusted efficiency ratio
(non-GAAP) |
|
65.62 |
% |
|
58.75 |
% |
|
60.79 |
% |
|
60.15 |
% |
|
56.20 |
% |
Kearny Financial (NASDAQ:KRNY)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Kearny Financial (NASDAQ:KRNY)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024