Kearny Financial Corp. Announces First Quarter Fiscal 2025 Results and Declaration of Cash Dividend
24 Octubre 2024 - 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 September 30, 2024 of $6.1 million, or
$0.10 per diluted share, compared to a GAAP net loss of $90.1
million, or $1.45 per diluted share, for the quarter ended
June 30, 2024. The net loss for the quarter ended
June 30, 2024 included a goodwill impairment of
$95.3 million, as previously disclosed. Excluding this item,
net income for the quarter ended September 30, 2024 increased
$496,000 from adjusted net income of $5.6 million for the quarter
ended June 30, 2024.
The Company also announced that its Board of
Directors has declared a quarterly cash dividend of $0.11 per
share, payable on November 20, 2024, to stockholders of record
as of November 6, 2024.
Craig L. Montanaro, President and Chief
Executive Officer, commented, “I’m pleased to report that this
quarter saw our net interest margin reach its inflection point and
begin to ascend. Despite four basis points of quarterly
compression, each successive month of the quarter reflected an
increase in our net interest margin. The recent fed funds rate
reduction of 50 basis points has already begun translating into a
cost of funds benefit in October. Additional fed funds rate cuts,
which the market is anticipating, will be a positive catalyst for
our liability-sensitive balance sheet.”
Mr. Montanaro continued, “Regarding asset
quality, our loan portfolio remains strong. Minimal exposure to New
York City rent-regulated multifamily and office real estate,
coupled with our robust commercial real estate ACL coverage ratios
and peer-leading charge-off ratios, leaves us well-positioned in
the current environment.”
Balance Sheet
- Total assets were
$7.77 billion at September 30, 2024, an increase of $88.9
million, or 1.2%, from June 30, 2024.
- Investment
securities totaled $1.20 billion at September 30, 2024, a
decrease of $5.5 million, or 0.5%, from June 30, 2024.
- Loans receivable
totaled $5.78 billion at September 30, 2024, an increase of
$51.5 million, or 0.9%, from June 30, 2024, primarily
reflecting growth in one- to four-family residential mortgage loans
and construction loans.
- Deposits were $5.47
billion at September 30, 2024, an increase of $312.4 million,
or 6.1%, from June 30, 2024. This increase was largely the
result of a reallocation from Federal Home Loan Bank (“FHLB”)
advances into brokered certificates of deposits, due to the
relatively more favorable economics of brokered deposits compared
to advances.
- Borrowings were
$1.48 billion at September 30, 2024, a decrease of $229.9
million, or 13.4%, from June 30, 2024, primarily reflecting a
decrease in FHLB borrowings offset by an increase in brokered
certificates of deposits, as noted above.
- At
September 30, 2024, the Company maintained available secured
borrowing capacity with the FHLB and the Federal Reserve Discount
Window of $2.06 billion, an increase of $240.0 million from
June 30, 2024, and represents 26.5% of total assets.
Earnings
Net Interest Income and Net Interest
Margin
- Net interest margin
contracted four basis points to 1.80% for the quarter ended
September 30, 2024. The decrease for the quarter was driven by
increases in the cost and average balances of interest-bearing
deposits and a decrease in the average balance of interest-earning
assets, partially offset by decreases in the average balances of
interest-bearing borrowings and higher yields on interest-earning
assets.
- For the quarter
ended September 30, 2024, net interest income decreased
$830,000 to $32.4 million from $33.3 million for the quarter ended
June 30, 2024. Included in net interest income for the
quarters ended September 30, 2024 and June 30, 2024,
respectively, was purchase accounting accretion of $649,000 and
$612,000, and loan prepayment penalty income of $52,000 and
$366,000.
Non-Interest Income
- Non-interest income
decreased $1.2 million to income of $4.6 million for the quarter
ended September 30, 2024, from $5.8 million for the quarter
ended June 30, 2024. Included in non-interest income for the
quarter ended June 30, 2024 was a non-recurring contract
renewal bonus of $750,000 and $1.1 million in non-recurring
payments on two life insurance policies, partially offset by a
$392,000 non-recurring exchange charge related to the December 2023
Bank Owned Life Insurance (“BOLI”) restructure. No such
non-recurring items were recorded during the quarter ended
September 30, 2024.
- Income from BOLI
decreased $642,000 to $2.6 million for the quarter ended
September 30, 2024 from $3.2 million for the quarter ended
June 30, 2024, primarily driven by the non-recurring items
recorded for the quarter ended June 30, 2024, as disclosed
above.
Non-Interest Expense
- For the quarter
ended September 30, 2024, non-interest expense decreased $96.8
million, or 76.5%, to $29.8 million from $126.6 million for the
quarter ended June 30, 2024, driven by a non-cash goodwill
impairment recognized in the prior comparative period. Excluding
the goodwill impairment, adjusted non-interest expense increased
$605,000 from $29.2 million, primarily driven by increases in
salary and benefits expense and other expense.
- Salary and benefits
expense increased $232,000 primarily driven by annual merit
increases and higher payroll taxes, partially offset by a
non-recurring decrease in stock-based compensation.
- Other expense
increased $344,000 primarily driven by an increase of $243,000 in
the provision for credit losses on off balance sheet
commitments.
Income Taxes
- Income tax expense
totaled $1.1 million for the quarter ended September 30, 2024,
compared to an income tax benefit of $917,000 for the quarter ended
June 30, 2024. The increase in income tax expense was
primarily due to higher pre-tax income in the current quarter,
coupled with a partial reversal of the deferred tax liability
associated with the previously recorded goodwill impairment in the
prior quarter.
Asset Quality
- The balance of
non-performing assets remained steady at $39.9 million, or 0.51% of
total assets, at September 30, 2024, and $39.9 million, or
0.52% of total assets, at June 30, 2024, respectively.
- Net charge-offs
totaled $124,000, or 0.01% of average loans, on an annualized
basis, for the quarter ended September 30, 2024, compared to
$3.5 million, or 0.25% of average loans, on an annualized basis,
for the quarter ended June 30, 2024.
- For the quarter
ended September 30, 2024, the Company recorded a provision for
credit losses of $108,000, compared to $3.5 million for the quarter
ended June 30, 2024. The provision for credit loss expense for
the quarter ended September 30, 2024 was primarily driven by
loan growth.
- The allowance for
credit losses (“ACL”) was $44.9 million, or 0.78% of total loans,
at September 30, 2024 and remained unchanged from
June 30, 2024.
Capital
- For the quarter
ended September 30, 2024, book value per share decreased
$0.06, or 0.5%, to $11.64 while tangible book value per share
decreased $0.05, or 0.5%, to $9.85.
- At
September 30, 2024, total stockholders’ equity included
after-tax net unrealized losses on securities available for sale of
$76.0 million, partially offset by after-tax unrealized gains
on derivatives of $11.0 million. After-tax net unrecognized
losses on securities held to maturity of $8.2 million were not
reflected in total stockholders’ equity.
- At
September 30, 2024, the Company’s tangible equity to tangible
assets ratio equaled 8.31% 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.
This earnings release should be read in
conjunction with Kearny Financial Corp.’s Q1 2025 Investor
Presentation, a copy of which is available through the Investor
Relations link located at the bottom of the page of our website at
www.kearnybank.com and via a Current Report on Form 8-K on the
website of the Securities and Exchange Commission at
www.sec.gov.
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.
Category: Earnings
For further information contact:Keith
Suchodolski, Senior Executive Vice President and Chief Operating
Officer, orSean Byrnes, Executive Vice President and Chief
Financial OfficerKearny Financial Corp.(973) 244-4500
|
Linked-Quarter Comparative Financial Analysis |
|
Kearny Financial Corp.Consolidated Balance
Sheets(Unaudited) |
|
(Dollars and Shares in
Thousands,Except Per Share Data) |
September 30,2024 |
June 30,2024 |
Variance or Change |
Variance or Change Pct. |
Assets |
|
|
|
|
Cash and cash equivalents |
$ |
155,574 |
|
$ |
63,864 |
|
$ |
91,710 |
|
143.6 |
% |
Securities available for
sale |
|
1,070,811 |
|
|
1,072,833 |
|
|
(2,022 |
) |
-0.2 |
% |
Securities held to
maturity |
|
132,256 |
|
|
135,742 |
|
|
(3,486 |
) |
-2.6 |
% |
Loans held-for-sale |
|
8,866 |
|
|
6,036 |
|
|
2,830 |
|
46.9 |
% |
Loans receivable |
|
5,784,246 |
|
|
5,732,787 |
|
|
51,459 |
|
0.9 |
% |
Less: allowance for credit losses on loans |
|
(44,923 |
) |
|
(44,939 |
) |
|
(16 |
) |
—% |
Net loans receivable |
|
5,739,323 |
|
|
5,687,848 |
|
|
51,475 |
|
0.9 |
% |
Premises and equipment |
|
45,189 |
|
|
44,940 |
|
|
249 |
|
0.6 |
% |
Federal Home Loan Bank
stock |
|
57,706 |
|
|
80,300 |
|
|
(22,594 |
) |
-28.1 |
% |
Accrued interest
receivable |
|
29,467 |
|
|
29,521 |
|
|
(54 |
) |
-0.2 |
% |
Goodwill |
|
113,525 |
|
|
113,525 |
|
|
— |
|
— |
% |
Core deposit intangible |
|
1,805 |
|
|
1,931 |
|
|
(126 |
) |
-6.5 |
% |
Bank owned life insurance |
|
300,186 |
|
|
297,874 |
|
|
2,312 |
|
0.8 |
% |
Deferred income taxes,
net |
|
50,131 |
|
|
50,339 |
|
|
(208 |
) |
-0.4 |
% |
Other assets |
|
67,540 |
|
|
98,708 |
|
|
(31,168 |
) |
-31.6 |
% |
Total assets |
$ |
7,772,379 |
|
$ |
7,683,461 |
|
$ |
88,918 |
|
1.2 |
% |
|
|
|
|
|
Liabilities |
|
|
|
|
Deposits: |
|
|
|
|
Non-interest-bearing |
$ |
592,099 |
|
$ |
598,366 |
|
$ |
(6,267 |
) |
-1.0 |
% |
Interest-bearing |
|
4,878,413 |
|
|
4,559,757 |
|
|
318,656 |
|
7.0 |
% |
Total deposits |
|
5,470,512 |
|
|
5,158,123 |
|
|
312,389 |
|
6.1 |
% |
Borrowings |
|
1,479,888 |
|
|
1,709,789 |
|
|
(229,901 |
) |
-13.4 |
% |
Advance payments by borrowers
for taxes |
|
17,824 |
|
|
17,409 |
|
|
415 |
|
2.4 |
% |
Other liabilities |
|
52,618 |
|
|
44,569 |
|
|
8,049 |
|
18.1 |
% |
Total liabilities |
|
7,020,842 |
|
|
6,929,890 |
|
|
90,952 |
|
1.3 |
% |
|
|
|
|
|
Stockholders'
Equity |
|
|
|
|
Common stock |
|
646 |
|
|
644 |
|
|
2 |
|
0.3 |
% |
Paid-in capital |
|
493,523 |
|
|
493,680 |
|
|
(157 |
) |
— |
% |
Retained earnings |
|
342,522 |
|
|
343,326 |
|
|
(804 |
) |
-0.2 |
% |
Unearned ESOP shares |
|
(20,430 |
) |
|
(20,916 |
) |
|
486 |
|
2.3 |
% |
Accumulated other
comprehensive loss |
|
(64,724 |
) |
|
(63,163 |
) |
|
(1,561 |
) |
-2.5 |
% |
Total stockholders' equity |
|
751,537 |
|
|
753,571 |
|
|
(2,034 |
) |
-0.3 |
% |
Total liabilities and stockholders' equity |
$ |
7,772,379 |
|
$ |
7,683,461 |
|
$ |
88,918 |
|
1.2 |
% |
|
|
|
|
|
Consolidated capital
ratios |
|
|
|
|
Equity to assets |
|
9.67 |
% |
|
9.81 |
% |
|
-0.14 |
% |
|
Tangible equity to tangible assets (1) |
|
8.31 |
% |
|
8.43 |
% |
|
-0.12 |
% |
|
|
|
|
|
|
Share
data |
|
|
|
|
Outstanding shares |
|
64,580 |
|
|
64,434 |
|
|
146 |
|
0.2 |
% |
Book value per share |
$ |
11.64 |
|
$ |
11.70 |
|
$ |
(0.06 |
) |
-0.5 |
% |
Tangible book value per share (2) |
$ |
9.85 |
|
$ |
9.90 |
|
$ |
(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
(Loss)(Unaudited) |
|
(Dollars and Shares in Thousands,Except Per Share Data) |
Three Months Ended |
Variance or Change |
Variance or Change Pct. |
September 30,2024 |
June 30,2024 |
Interest income |
|
|
|
|
Loans |
$ |
66,331 |
|
$ |
65,819 |
|
$ |
512 |
|
0.8 |
% |
Taxable investment securities |
|
14,384 |
|
|
14,802 |
|
|
(418 |
) |
-2.8 |
% |
Tax-exempt investment securities |
|
71 |
|
|
80 |
|
|
(9 |
) |
-11.3% |
Other interest-earning assets |
|
2,466 |
|
|
2,289 |
|
|
177 |
|
7.7 |
% |
Total interest income |
|
83,252 |
|
|
82,990 |
|
|
262 |
|
0.3 |
% |
|
|
|
|
|
Interest
expense |
|
|
|
|
Deposits |
|
35,018 |
|
|
32,187 |
|
|
2,831 |
|
8.8 |
% |
Borrowings |
|
15,788 |
|
|
17,527 |
|
|
(1,739 |
) |
-9.9 |
% |
Total interest expense |
|
50,806 |
|
|
49,714 |
|
|
1,092 |
|
2.2 |
% |
Net interest income |
|
32,446 |
|
|
33,276 |
|
|
(830 |
) |
-2.5 |
% |
Provision for credit
losses |
|
108 |
|
|
3,527 |
|
|
(3,419 |
) |
-96.9 |
% |
Net interest income after provision for credit
losses |
|
32,338 |
|
|
29,749 |
|
|
2,589 |
|
8.7 |
% |
|
|
|
|
|
Non-interest
income |
|
|
|
|
Fees and service charges |
|
635 |
|
|
580 |
|
|
55 |
|
9.5 |
% |
Gain on sale of loans |
|
200 |
|
|
111 |
|
|
89 |
|
80.2 |
% |
Income from bank owned life insurance |
|
2,567 |
|
|
3,209 |
|
|
(642 |
) |
-20.0 |
% |
Electronic banking fees and charges |
|
391 |
|
|
1,130 |
|
|
(739 |
) |
-65.4 |
% |
Other income |
|
833 |
|
|
776 |
|
|
57 |
|
7.3 |
% |
Total non-interest income |
|
4,626 |
|
|
5,806 |
|
|
(1,180 |
) |
-20.3 |
% |
|
|
|
|
|
Non-interest
expense |
|
|
|
|
Salaries and employee benefits |
|
17,498 |
|
|
17,266 |
|
|
232 |
|
1.3 |
% |
Net occupancy expense of premises |
|
2,798 |
|
|
2,738 |
|
|
60 |
|
2.2 |
% |
Equipment and systems |
|
3,860 |
|
|
3,785 |
|
|
75 |
|
2.0 |
% |
Advertising and marketing |
|
342 |
|
|
480 |
|
|
(138 |
) |
-28.8 |
% |
Federal deposit insurance premium |
|
1,563 |
|
|
1,532 |
|
|
31 |
|
2.0 |
% |
Directors' compensation |
|
361 |
|
|
360 |
|
|
1 |
|
0.3 |
% |
Goodwill impairment |
|
— |
|
|
97,370 |
|
|
(97,370 |
) |
-100.0 |
% |
Other expense |
|
3,364 |
|
|
3,020 |
|
|
344 |
|
11.4 |
% |
Total non-interest expense |
|
29,786 |
|
|
126,551 |
|
|
(96,765 |
) |
-76.5 |
% |
Income (loss) before income taxes |
|
7,178 |
|
|
(90,996 |
) |
|
98,174 |
|
107.9 |
% |
Income taxes |
|
1,086 |
|
|
(917 |
) |
|
2,003 |
|
-218.4 |
% |
Net income (loss) |
$ |
6,092 |
|
$ |
(90,079 |
) |
$ |
96,171 |
|
106.8 |
% |
|
|
|
|
|
Net income (loss) per
common share (EPS) |
|
|
|
|
Basic |
$ |
0.10 |
|
$ |
(1.45 |
) |
$ |
1.55 |
|
|
Diluted |
$ |
0.10 |
|
$ |
(1.45 |
) |
$ |
1.55 |
|
|
|
|
|
|
|
Dividends
declared |
|
|
|
|
Cash dividends declared per common share |
$ |
0.11 |
|
$ |
0.11 |
|
$ |
— |
|
|
Cash dividends declared |
$ |
6,896 |
|
$ |
6,903 |
|
$ |
(7 |
) |
|
Dividend payout ratio |
|
113.2 |
% |
|
-7.7 |
% |
|
120.9 |
% |
|
|
|
|
|
|
Weighted average
number of common shares outstanding |
|
|
|
|
Basic |
|
62,389 |
|
|
62,254 |
|
|
135 |
|
|
Diluted |
|
62,420 |
|
|
62,254 |
|
|
166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kearny Financial Corp.Average Balance
Sheet Data(Unaudited) |
|
(Dollars in Thousands) |
Three Months Ended |
Variance or Change |
Variance or Change Pct. |
September 30,2024 |
June 30,2024 |
Assets |
|
|
|
|
Interest-earning assets: |
|
|
|
|
Loans receivable, including loans held for sale |
$ |
5,761,593 |
|
$ |
5,743,008 |
|
$ |
18,585 |
|
0.3 |
% |
Taxable investment securities |
|
1,314,945 |
|
|
1,343,541 |
|
|
(28,596 |
) |
-2.1 |
% |
Tax-exempt investment securities |
|
12,244 |
|
|
13,737 |
|
|
(1,493 |
) |
-10.9 |
% |
Other interest-earning assets |
|
131,981 |
|
|
128,257 |
|
|
3,724 |
|
2.9 |
% |
Total interest-earning assets |
|
7,220,763 |
|
|
7,228,543 |
|
|
(7,780 |
) |
-0.1 |
% |
Non-interest-earning
assets |
|
467,670 |
|
|
466,537 |
|
|
1,133 |
|
0.2 |
% |
Total assets |
$ |
7,688,433 |
|
$ |
7,695,080 |
|
$ |
(6,647 |
) |
-0.1 |
% |
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
Deposits: |
|
|
|
|
Interest-bearing demand |
$ |
2,282,608 |
|
$ |
2,310,521 |
|
$ |
(27,913 |
) |
-1.2 |
% |
Savings |
|
668,240 |
|
|
631,622 |
|
|
36,618 |
|
5.8 |
% |
Certificates of deposit |
|
1,755,589 |
|
|
1,613,798 |
|
|
141,791 |
|
8.8 |
% |
Total interest-bearing deposits |
|
4,706,437 |
|
|
4,555,941 |
|
|
150,496 |
|
3.3 |
% |
Borrowings: |
|
|
|
|
Federal Home Loan Bank advances |
|
1,325,583 |
|
|
1,507,192 |
|
|
(181,609 |
) |
-12.0 |
% |
Other borrowings |
|
237,011 |
|
|
228,461 |
|
|
8,550 |
|
3.7 |
% |
Total borrowings |
|
1,562,594 |
|
|
1,735,653 |
|
|
(173,059 |
) |
-10.0 |
% |
Total interest-bearing liabilities |
|
6,269,031 |
|
|
6,291,594 |
|
|
(22,563 |
) |
-0.4 |
% |
Non-interest-bearing
liabilities: |
|
|
|
|
Non-interest-bearing deposits |
|
599,095 |
|
|
589,438 |
|
|
9,657 |
|
1.6 |
% |
Other non-interest-bearing liabilities |
|
69,629 |
|
|
62,978 |
|
|
6,651 |
|
10.6 |
% |
Total non-interest-bearing liabilities |
|
668,724 |
|
|
652,416 |
|
|
16,308 |
|
2.5 |
% |
Total liabilities |
|
6,937,755 |
|
|
6,944,010 |
|
|
(6,255 |
) |
-0.1 |
% |
Stockholders' equity |
|
750,678 |
|
|
751,070 |
|
|
(392 |
) |
-0.1 |
% |
Total liabilities and stockholders' equity |
$ |
7,688,433 |
|
$ |
7,695,080 |
|
$ |
(6,647 |
) |
-0.1 |
% |
|
|
|
|
|
Average interest-earning
assets to average interest-bearing liabilities |
|
115.18 |
% |
|
114.89 |
% |
|
0.29 |
% |
0.3 |
% |
|
|
Kearny Financial Corp.Performance Ratio
Highlights(Unaudited) |
|
Three Months Ended |
Variance or Change |
|
September 30,2024 |
June 30,2024 |
Average yield on interest-earning assets: |
|
|
|
Loans receivable, including loans held for sale |
4.61 |
% |
4.58 |
% |
0.03 |
% |
Taxable investment securities |
4.38 |
% |
4.41 |
% |
-0.03 |
% |
Tax-exempt investment securities (1) |
2.32 |
% |
2.32 |
% |
— |
% |
Other interest-earning assets |
7.47 |
% |
7.14 |
% |
0.33 |
% |
Total interest-earning assets |
4.61 |
% |
4.59 |
% |
0.02 |
% |
|
|
|
|
Average cost of
interest-bearing liabilities: |
|
|
|
Deposits: |
|
|
|
Interest-bearing demand |
3.13 |
% |
3.06 |
% |
0.07 |
% |
Savings |
1.05 |
% |
0.63 |
% |
0.42 |
% |
Certificates of deposit |
3.51 |
% |
3.35 |
% |
0.16 |
% |
Total interest-bearing deposits |
2.98 |
% |
2.83 |
% |
0.15 |
% |
Borrowings: |
|
|
|
Federal Home Loan Bank advances |
3.82 |
% |
3.86 |
% |
-0.04 |
% |
Other borrowings |
5.28 |
% |
5.24 |
% |
0.04 |
% |
Total borrowings |
4.04 |
% |
4.04 |
% |
— |
% |
Total interest-bearing liabilities |
3.24 |
% |
3.16 |
% |
0.08 |
% |
|
|
|
|
Interest rate spread (2) |
1.37 |
% |
1.43 |
% |
-0.06 |
% |
Net interest margin (3) |
1.80 |
% |
1.84 |
% |
-0.04 |
% |
|
|
|
|
Non-interest income to average assets (annualized) |
0.24 |
% |
0.30 |
% |
-0.06 |
% |
Non-interest expense to average assets (annualized) |
1.55 |
% |
6.58 |
% |
-5.03 |
% |
|
|
|
|
Efficiency ratio (4) |
80.35 |
% |
323.81 |
% |
-243.46 |
% |
|
|
|
|
Return on average assets (annualized) |
0.32 |
% |
-4.68 |
% |
5.00 |
% |
Return on average equity (annualized) |
3.25 |
% |
-47.97 |
% |
51.22 |
% |
Return on average tangible equity (annualized) (5) |
3.89 |
% |
3.33 |
% |
0.56 |
% |
|
_________________________ |
(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) |
September 30,2024 |
June 30,2024 |
March 31,2024 |
December 31,2023 |
September 30,2023 |
|
(Unaudited) |
(Audited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
Assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
155,574 |
|
$ |
63,864 |
|
$ |
71,027 |
|
$ |
73,860 |
|
$ |
57,219 |
|
Securities available for
sale |
|
1,070,811 |
|
|
1,072,833 |
|
|
1,098,655 |
|
|
1,144,175 |
|
|
1,215,633 |
|
Securities held to
maturity |
|
132,256 |
|
|
135,742 |
|
|
139,643 |
|
|
141,959 |
|
|
143,730 |
|
Loans held-for-sale |
|
8,866 |
|
|
6,036 |
|
|
4,117 |
|
|
14,030 |
|
|
3,934 |
|
Loans receivable |
|
5,784,246 |
|
|
5,732,787 |
|
|
5,758,336 |
|
|
5,745,629 |
|
|
5,736,049 |
|
Less: allowance for credit losses on loans |
|
(44,923 |
) |
|
(44,939 |
) |
|
(44,930 |
) |
|
(44,867 |
) |
|
(46,872 |
) |
Net loans receivable |
|
5,739,323 |
|
|
5,687,848 |
|
|
5,713,406 |
|
|
5,700,762 |
|
|
5,689,177 |
|
Premises and equipment |
|
45,189 |
|
|
44,940 |
|
|
45,053 |
|
|
45,928 |
|
|
46,868 |
|
Federal Home Loan Bank
stock |
|
57,706 |
|
|
80,300 |
|
|
81,347 |
|
|
83,372 |
|
|
81,509 |
|
Accrued interest
receivable |
|
29,467 |
|
|
29,521 |
|
|
31,065 |
|
|
30,258 |
|
|
29,766 |
|
Goodwill |
|
113,525 |
|
|
113,525 |
|
|
210,895 |
|
|
210,895 |
|
|
210,895 |
|
Core deposit intangible |
|
1,805 |
|
|
1,931 |
|
|
2,057 |
|
|
2,189 |
|
|
2,323 |
|
Bank owned life insurance |
|
300,186 |
|
|
297,874 |
|
|
296,493 |
|
|
256,064 |
|
|
294,491 |
|
Deferred income taxes,
net |
|
50,131 |
|
|
50,339 |
|
|
47,225 |
|
|
46,116 |
|
|
56,500 |
|
Other real estate owned |
|
— |
|
|
— |
|
|
— |
|
|
11,982 |
|
|
12,956 |
|
Other assets |
|
67,540 |
|
|
98,708 |
|
|
100,989 |
|
|
136,242 |
|
|
129,865 |
|
Total assets |
$ |
7,772,379 |
|
$ |
7,683,461 |
|
$ |
7,841,972 |
|
$ |
7,897,832 |
|
$ |
7,974,866 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Non-interest-bearing |
$ |
592,099 |
|
$ |
598,366 |
|
$ |
586,089 |
|
$ |
584,130 |
|
$ |
595,141 |
|
Interest-bearing |
|
4,878,413 |
|
|
4,559,757 |
|
|
4,622,961 |
|
|
4,735,500 |
|
|
4,839,027 |
|
Total deposits |
|
5,470,512 |
|
|
5,158,123 |
|
|
5,209,050 |
|
|
5,319,630 |
|
|
5,434,168 |
|
Borrowings |
|
1,479,888 |
|
|
1,709,789 |
|
|
1,722,178 |
|
|
1,667,055 |
|
|
1,626,933 |
|
Advance payments by borrowers
for taxes |
|
17,824 |
|
|
17,409 |
|
|
17,387 |
|
|
16,742 |
|
|
16,907 |
|
Other liabilities |
|
52,618 |
|
|
44,569 |
|
|
44,279 |
|
|
46,427 |
|
|
47,324 |
|
Total liabilities |
|
7,020,842 |
|
|
6,929,890 |
|
|
6,992,894 |
|
|
7,049,854 |
|
|
7,125,332 |
|
|
|
|
|
|
|
Stockholders'
Equity |
|
|
|
|
|
Common stock |
|
646 |
|
|
644 |
|
|
644 |
|
|
645 |
|
|
652 |
|
Paid-in capital |
|
493,523 |
|
|
493,680 |
|
|
493,187 |
|
|
493,297 |
|
|
497,269 |
|
Retained earnings |
|
342,522 |
|
|
343,326 |
|
|
440,308 |
|
|
439,755 |
|
|
460,464 |
|
Unearned ESOP shares |
|
(20,430 |
) |
|
(20,916 |
) |
|
(21,402 |
) |
|
(21,889 |
) |
|
(22,375 |
) |
Accumulated other
comprehensive loss |
|
(64,724 |
) |
|
(63,163 |
) |
|
(63,659 |
) |
|
(63,830 |
) |
|
(86,476 |
) |
Total stockholders' equity |
|
751,537 |
|
|
753,571 |
|
|
849,078 |
|
|
847,978 |
|
|
849,534 |
|
Total liabilities and stockholders' equity |
$ |
7,772,379 |
|
$ |
7,683,461 |
|
$ |
7,841,972 |
|
$ |
7,897,832 |
|
$ |
7,974,866 |
|
|
|
|
|
|
|
Consolidated capital
ratios |
|
|
|
|
|
Equity to assets |
|
9.67 |
% |
|
9.81 |
% |
|
10.83 |
% |
|
10.74 |
% |
|
10.65 |
% |
Tangible equity to tangible assets (1) |
|
8.31 |
% |
|
8.43 |
% |
|
8.34 |
% |
|
8.26 |
% |
|
8.20 |
% |
|
|
|
|
|
|
Share
data |
|
|
|
|
|
Outstanding shares |
|
64,580 |
|
|
64,434 |
|
|
64,437 |
|
|
64,445 |
|
|
65,132 |
|
Book value per share |
$ |
11.64 |
|
$ |
11.70 |
|
$ |
13.18 |
|
$ |
13.16 |
|
$ |
13.04 |
|
Tangible book value per share (2) |
$ |
9.85 |
|
$ |
9.90 |
|
$ |
9.87 |
|
$ |
9.85 |
|
$ |
9.77 |
|
|
_________________________ |
(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) |
September 30,2024 |
June 30,2024 |
March 31,2024 |
December 31,2023 |
September 30,2023 |
Loan portfolio composition: |
|
|
|
|
|
Commercial loans: |
|
|
|
|
|
Multi-family mortgage |
$ |
2,646,187 |
|
$ |
2,645,851 |
|
$ |
2,645,195 |
|
$ |
2,651,274 |
|
$ |
2,699,151 |
|
Nonresidential mortgage |
|
950,771 |
|
|
948,075 |
|
|
965,539 |
|
|
947,287 |
|
|
946,801 |
|
Commercial business |
|
145,984 |
|
|
142,747 |
|
|
147,326 |
|
|
144,134 |
|
|
149,229 |
|
Construction |
|
227,327 |
|
|
209,237 |
|
|
229,457 |
|
|
221,933 |
|
|
230,703 |
|
Total commercial loans |
|
3,970,269 |
|
|
3,945,910 |
|
|
3,987,517 |
|
|
3,964,628 |
|
|
4,025,884 |
|
One- to four-family residential mortgage |
|
1,768,230 |
|
|
1,756,051 |
|
|
1,741,644 |
|
|
1,746,065 |
|
|
1,689,051 |
|
Consumer loans: |
|
|
|
|
|
Home equity loans |
|
44,741 |
|
|
44,104 |
|
|
42,731 |
|
|
43,517 |
|
|
42,896 |
|
Other consumer |
|
2,965 |
|
|
2,685 |
|
|
3,198 |
|
|
2,728 |
|
|
2,644 |
|
Total consumer loans |
|
47,706 |
|
|
46,789 |
|
|
45,929 |
|
|
46,245 |
|
|
45,540 |
|
Total loans, excluding yield adjustments |
|
5,786,205 |
|
|
5,748,750 |
|
|
5,775,090 |
|
|
5,756,938 |
|
|
5,760,475 |
|
Unaccreted yield adjustments |
|
(1,959 |
) |
|
(15,963 |
) |
|
(16,754 |
) |
|
(11,309 |
) |
|
(24,426 |
) |
Loans receivable, net of yield adjustments |
|
5,784,246 |
|
|
5,732,787 |
|
|
5,758,336 |
|
|
5,745,629 |
|
|
5,736,049 |
|
Less: allowance for credit losses on loans |
|
(44,923 |
) |
|
(44,939 |
) |
|
(44,930 |
) |
|
(44,867 |
) |
|
(46,872 |
) |
Net loans receivable |
$ |
5,739,323 |
|
$ |
5,687,848 |
|
$ |
5,713,406 |
|
$ |
5,700,762 |
|
$ |
5,689,177 |
|
|
|
|
|
|
|
Asset
quality: |
|
|
|
|
|
Nonperforming assets: |
|
|
|
|
|
Accruing loans - 90 days and over past due |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Nonaccrual loans |
|
39,854 |
|
|
39,882 |
|
|
39,546 |
|
|
28,089 |
|
|
37,912 |
|
Total nonperforming loans |
|
39,854 |
|
|
39,882 |
|
|
39,546 |
|
|
28,089 |
|
|
37,912 |
|
Nonaccrual loans held-for-sale |
|
— |
|
|
— |
|
|
— |
|
|
9,700 |
|
|
— |
|
Other real estate owned |
|
— |
|
|
— |
|
|
— |
|
|
11,982 |
|
|
12,956 |
|
Total nonperforming assets |
$ |
39,854 |
|
$ |
39,882 |
|
$ |
39,546 |
|
$ |
49,771 |
|
$ |
50,868 |
|
|
|
|
|
|
|
Nonperforming loans (% total loans) |
|
0.69 |
% |
|
0.70 |
% |
|
0.69 |
% |
|
0.49 |
% |
|
0.66 |
% |
Nonperforming assets (% total assets) |
|
0.51 |
% |
|
0.52 |
% |
|
0.50 |
% |
|
0.63 |
% |
|
0.64 |
% |
|
|
|
|
|
|
Classified loans |
$ |
119,534 |
|
$ |
118,700 |
|
$ |
115,772 |
|
$ |
94,676 |
|
$ |
98,616 |
|
|
|
|
|
|
|
Allowance for credit losses on loans (ACL): |
|
|
|
|
|
ACL to total loans |
|
0.78 |
% |
|
0.78 |
% |
|
0.78 |
% |
|
0.78 |
% |
|
0.81 |
% |
ACL to nonperforming loans |
|
112.72 |
% |
|
112.68 |
% |
|
113.61 |
% |
|
159.73 |
% |
|
123.63 |
% |
Net charge-offs |
$ |
124 |
|
$ |
3,518 |
|
$ |
286 |
|
$ |
4,110 |
|
$ |
2,107 |
|
Average net charge-off rate (annualized) |
|
0.01 |
% |
|
0.25 |
% |
|
0.02 |
% |
|
0.29 |
% |
|
0.15 |
% |
|
|
Kearny Financial Corp.Supplemental Balance
Sheet Highlights(Unaudited) |
|
(Dollars in Thousands) |
September 30,2024 |
June 30,2024 |
March 31,2024 |
December 31,2023 |
September 30,2023 |
Funding composition: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Non-interest-bearing deposits |
$ |
592,099 |
|
$ |
598,367 |
|
$ |
586,089 |
|
$ |
584,130 |
|
$ |
595,141 |
|
Interest-bearing demand |
|
2,247,685 |
|
|
2,308,915 |
|
|
2,349,032 |
|
|
2,347,262 |
|
|
2,236,573 |
|
Savings |
|
681,709 |
|
|
643,481 |
|
|
630,456 |
|
|
646,182 |
|
|
689,163 |
|
Certificates of deposit (retail) |
|
1,215,746 |
|
|
1,199,127 |
|
|
1,235,261 |
|
|
1,283,676 |
|
|
1,300,382 |
|
Certificates of deposit (brokered and listing service) |
|
733,273 |
|
|
408,234 |
|
|
408,212 |
|
|
458,380 |
|
|
612,909 |
|
Interest-bearing deposits |
|
4,878,413 |
|
|
4,559,757 |
|
|
4,622,961 |
|
|
4,735,500 |
|
|
4,839,027 |
|
Total deposits |
|
5,470,512 |
|
|
5,158,124 |
|
|
5,209,050 |
|
|
5,319,630 |
|
|
5,434,168 |
|
|
|
|
|
|
|
Borrowings: |
|
|
|
|
|
Federal Home Loan Bank advances |
|
1,209,888 |
|
|
1,534,789 |
|
|
1,457,178 |
|
|
1,432,055 |
|
|
1,456,933 |
|
Overnight borrowings |
|
270,000 |
|
|
175,000 |
|
|
265,000 |
|
|
235,000 |
|
|
170,000 |
|
Total borrowings |
|
1,479,888 |
|
|
1,709,789 |
|
|
1,722,178 |
|
|
1,667,055 |
|
|
1,626,933 |
|
|
|
|
|
|
|
Total funding |
$ |
6,950,400 |
|
$ |
6,867,913 |
|
$ |
6,931,228 |
|
$ |
6,986,685 |
|
$ |
7,061,101 |
|
|
|
|
|
|
|
Loans as a % of deposits |
|
105.1 |
% |
|
110.4 |
% |
|
109.8 |
% |
|
107.4 |
% |
|
104.8 |
% |
Deposits as a % of total funding |
|
78.7 |
% |
|
75.1 |
% |
|
75.2 |
% |
|
76.1 |
% |
|
77.0 |
% |
Borrowings as a % of total funding |
|
21.3 |
% |
|
24.9 |
% |
|
24.8 |
% |
|
23.9 |
% |
|
23.0 |
% |
|
|
|
|
|
|
Uninsured
deposits: |
|
|
|
|
|
Uninsured deposits (reported) (1) |
$ |
1,799,726 |
|
$ |
1,772,623 |
|
$ |
1,760,740 |
|
$ |
1,813,122 |
|
$ |
1,734,288 |
|
Uninsured deposits (adjusted) (2) |
$ |
773,375 |
|
$ |
764,447 |
|
$ |
718,026 |
|
$ |
694,510 |
|
$ |
683,265 |
|
|
_________________________ |
(1) Uninsured deposits of Kearny Bank.(2) Uninsured deposits of
Kearny Bank adjusted to exclude deposits of its wholly-owned
subsidiary and holding company and collateralized deposits of state
and local governments. |
|
|
Kearny Financial Corp.Consolidated
Statements of Income
(Loss)(Unaudited) |
|
|
Three Months Ended |
(Dollars and Shares in Thousands,Except Per Share Data) |
September 30,2024 |
June 30,2024 |
March 31,2024 |
December 31,2023 |
September 30,2023 |
Interest income |
|
|
|
|
|
Loans |
$ |
66,331 |
|
$ |
65,819 |
|
$ |
64,035 |
|
$ |
63,384 |
|
$ |
62,769 |
|
Taxable investment securities |
|
14,384 |
|
|
14,802 |
|
|
15,490 |
|
|
16,756 |
|
|
16,265 |
|
Tax-exempt investment securities |
|
71 |
|
|
80 |
|
|
85 |
|
|
84 |
|
|
87 |
|
Other interest-earning assets |
|
2,466 |
|
|
2,289 |
|
|
2,475 |
|
|
2,401 |
|
|
2,047 |
|
Total interest income |
|
83,252 |
|
|
82,990 |
|
|
82,085 |
|
|
82,625 |
|
|
81,168 |
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
Deposits |
|
35,018 |
|
|
32,187 |
|
|
32,320 |
|
|
30,340 |
|
|
27,567 |
|
Borrowings |
|
15,788 |
|
|
17,527 |
|
|
15,446 |
|
|
16,446 |
|
|
14,441 |
|
Total interest expense |
|
50,806 |
|
|
49,714 |
|
|
47,766 |
|
|
46,786 |
|
|
42,008 |
|
Net interest income |
|
32,446 |
|
|
33,276 |
|
|
34,319 |
|
|
35,839 |
|
|
39,160 |
|
Provision for credit
losses |
|
108 |
|
|
3,527 |
|
|
349 |
|
|
2,105 |
|
|
245 |
|
Net interest income after provision for credit
losses |
|
32,338 |
|
|
29,749 |
|
|
33,970 |
|
|
33,734 |
|
|
38,915 |
|
|
|
|
|
|
|
Non-interest
income |
|
|
|
|
|
Fees and service charges |
|
635 |
|
|
580 |
|
|
657 |
|
|
624 |
|
|
748 |
|
Loss on sale and call of securities |
|
— |
|
|
— |
|
|
— |
|
|
(18,135 |
) |
|
— |
|
Gain (loss) on sale of loans |
|
200 |
|
|
111 |
|
|
(712 |
) |
|
104 |
|
|
215 |
|
Loss on sale of other real estate owned |
|
— |
|
|
— |
|
|
— |
|
|
(974 |
) |
|
— |
|
Income from bank owned life insurance |
|
2,567 |
|
|
3,209 |
|
|
3,039 |
|
|
1,162 |
|
|
1,666 |
|
Electronic banking fees and charges |
|
391 |
|
|
1,130 |
|
|
464 |
|
|
396 |
|
|
367 |
|
Other income |
|
833 |
|
|
776 |
|
|
755 |
|
|
811 |
|
|
1,014 |
|
Total non-interest income |
|
4,626 |
|
|
5,806 |
|
|
4,203 |
|
|
(16,012 |
) |
|
4,010 |
|
|
|
|
|
|
|
Non-interest
expense |
|
|
|
|
|
Salaries and employee benefits |
|
17,498 |
|
|
17,266 |
|
|
16,911 |
|
|
17,282 |
|
|
17,761 |
|
Net occupancy expense of premises |
|
2,798 |
|
|
2,738 |
|
|
2,863 |
|
|
2,674 |
|
|
2,758 |
|
Equipment and systems |
|
3,860 |
|
|
3,785 |
|
|
3,823 |
|
|
3,814 |
|
|
3,801 |
|
Advertising and marketing |
|
342 |
|
|
480 |
|
|
387 |
|
|
301 |
|
|
228 |
|
Federal deposit insurance premium |
|
1,563 |
|
|
1,532 |
|
|
1,429 |
|
|
1,495 |
|
|
1,524 |
|
Directors' compensation |
|
361 |
|
|
360 |
|
|
360 |
|
|
393 |
|
|
393 |
|
Goodwill impairment |
|
— |
|
|
97,370 |
|
|
— |
|
|
— |
|
|
— |
|
Other expense |
|
3,364 |
|
|
3,020 |
|
|
3,286 |
|
|
3,808 |
|
|
3,309 |
|
Total non-interest expense |
|
29,786 |
|
|
126,551 |
|
|
29,059 |
|
|
29,767 |
|
|
29,774 |
|
Income (loss) before income taxes |
|
7,178 |
|
|
(90,996 |
) |
|
9,114 |
|
|
(12,045 |
) |
|
13,151 |
|
Income taxes |
|
1,086 |
|
|
(917 |
) |
|
1,717 |
|
|
1,782 |
|
|
3,309 |
|
Net income (loss) |
$ |
6,092 |
|
$ |
(90,079 |
) |
$ |
7,397 |
|
$ |
(13,827 |
) |
$ |
9,842 |
|
|
|
|
|
|
|
Net income (loss) per
common share (EPS) |
|
|
|
|
|
Basic |
$ |
0.10 |
|
$ |
(1.45 |
) |
$ |
0.12 |
|
$ |
(0.22 |
) |
$ |
0.16 |
|
Diluted |
$ |
0.10 |
|
$ |
(1.45 |
) |
$ |
0.12 |
|
$ |
(0.22 |
) |
$ |
0.16 |
|
|
|
|
|
|
|
Dividends
declared |
|
|
|
|
|
Cash dividends declared per common share |
$ |
0.11 |
|
$ |
0.11 |
|
$ |
0.11 |
|
$ |
0.11 |
|
$ |
0.11 |
|
Cash dividends declared |
$ |
6,896 |
|
$ |
6,903 |
|
$ |
6,844 |
|
$ |
6,882 |
|
$ |
6,989 |
|
Dividend payout ratio |
|
113.2 |
% |
|
-7.7 |
% |
|
92.5 |
% |
|
-49.8 |
% |
|
71.0 |
% |
|
|
|
|
|
|
Weighted average number of common shares
outstanding |
|
|
|
|
|
Basic |
|
62,389 |
|
|
62,254 |
|
|
62,205 |
|
|
62,299 |
|
|
63,014 |
|
Diluted |
|
62,420 |
|
|
62,254 |
|
|
62,211 |
|
|
62,299 |
|
|
63,061 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kearny Financial Corp.Average Balance
Sheet Data(Unaudited) |
|
|
Three Months Ended |
(Dollars in Thousands) |
September 30,2024 |
June 30,2024 |
March 31,2024 |
December 31,2023 |
September 30,2023 |
Assets |
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
Loans receivable, including loans held-for-sale |
$ |
5,761,593 |
|
$ |
5,743,008 |
|
$ |
5,752,477 |
|
$ |
5,726,321 |
|
$ |
5,788,074 |
|
Taxable investment securities |
|
1,314,945 |
|
|
1,343,541 |
|
|
1,382,064 |
|
|
1,509,165 |
|
|
1,516,393 |
|
Tax-exempt investment securities |
|
12,244 |
|
|
13,737 |
|
|
14,614 |
|
|
15,025 |
|
|
15,483 |
|
Other interest-earning assets |
|
131,981 |
|
|
128,257 |
|
|
125,155 |
|
|
139,740 |
|
|
130,829 |
|
Total interest-earning assets |
|
7,220,763 |
|
|
7,228,543 |
|
|
7,274,310 |
|
|
7,390,251 |
|
|
7,450,779 |
|
Non-interest-earning
assets |
|
467,670 |
|
|
466,537 |
|
|
577,411 |
|
|
554,335 |
|
|
568,723 |
|
Total assets |
$ |
7,688,433 |
|
$ |
7,695,080 |
|
$ |
7,851,721 |
|
$ |
7,944,586 |
|
$ |
8,019,502 |
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Interest-bearing demand |
$ |
2,282,608 |
|
$ |
2,310,521 |
|
$ |
2,378,831 |
|
$ |
2,301,169 |
|
$ |
2,245,831 |
|
Savings |
|
668,240 |
|
|
631,622 |
|
|
635,226 |
|
|
664,926 |
|
|
719,508 |
|
Certificates of deposit |
|
1,755,589 |
|
|
1,613,798 |
|
|
1,705,513 |
|
|
1,824,316 |
|
|
1,968,512 |
|
Total interest-bearing deposits |
|
4,706,437 |
|
|
4,555,941 |
|
|
4,719,570 |
|
|
4,790,411 |
|
|
4,933,851 |
|
Borrowings: |
|
|
|
|
|
Federal Home Loan Bank advances |
|
1,325,583 |
|
|
1,507,192 |
|
|
1,428,801 |
|
|
1,513,497 |
|
|
1,386,473 |
|
Other borrowings |
|
237,011 |
|
|
228,461 |
|
|
210,989 |
|
|
142,283 |
|
|
158,098 |
|
Total borrowings |
|
1,562,594 |
|
|
1,735,653 |
|
|
1,639,790 |
|
|
1,655,780 |
|
|
1,544,571 |
|
Total interest-bearing liabilities |
|
6,269,031 |
|
|
6,291,594 |
|
|
6,359,360 |
|
|
6,446,191 |
|
|
6,478,422 |
|
Non-interest-bearing
liabilities: |
|
|
|
|
|
Non-interest-bearing deposits |
|
599,095 |
|
|
589,438 |
|
|
581,870 |
|
|
597,294 |
|
|
612,251 |
|
Other non-interest-bearing liabilities |
|
69,629 |
|
|
62,978 |
|
|
65,709 |
|
|
62,387 |
|
|
66,701 |
|
Total non-interest-bearing liabilities |
|
668,724 |
|
|
652,416 |
|
|
647,579 |
|
|
659,681 |
|
|
678,952 |
|
Total liabilities |
|
6,937,755 |
|
|
6,944,010 |
|
|
7,006,939 |
|
|
7,105,872 |
|
|
7,157,374 |
|
Stockholders' equity |
|
750,678 |
|
|
751,070 |
|
|
844,782 |
|
|
838,714 |
|
|
862,128 |
|
Total liabilities and stockholders' equity |
$ |
7,688,433 |
|
$ |
7,695,080 |
|
$ |
7,851,721 |
|
$ |
7,944,586 |
|
$ |
8,019,502 |
|
|
|
|
|
|
|
Average interest-earning
assets to average interest-bearing liabilities |
|
115.18 |
% |
|
114.89 |
% |
|
114.39 |
% |
|
114.65 |
% |
|
115.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kearny Financial Corp.Performance Ratio
Highlights |
|
Three Months Ended |
|
September 30,2024 |
June 30,2024 |
March 31,2024 |
December 31,2023 |
September 30,2023 |
Average yield on interest-earning assets: |
|
|
|
|
|
Loans receivable, including loans held-for-sale |
4.61 |
% |
4.58 |
% |
4.45 |
% |
4.43 |
% |
4.34 |
% |
Taxable investment securities |
4.38 |
% |
4.41 |
% |
4.48 |
% |
4.44 |
% |
4.29 |
% |
Tax-exempt investment securities (1) |
2.32 |
% |
2.32 |
% |
2.32 |
% |
2.25 |
% |
2.25 |
% |
Other interest-earning assets |
7.47 |
% |
7.14 |
% |
7.91 |
% |
6.87 |
% |
6.26 |
% |
Total interest-earning assets |
4.61 |
% |
4.59 |
% |
4.51 |
% |
4.47 |
% |
4.36 |
% |
|
|
|
|
|
|
Average cost of
interest-bearing liabilities: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Interest-bearing demand |
3.13 |
% |
3.06 |
% |
3.08 |
% |
2.91 |
% |
2.58 |
% |
Savings |
1.05 |
% |
0.63 |
% |
0.46 |
% |
0.44 |
% |
0.47 |
% |
Certificates of deposit |
3.51 |
% |
3.35 |
% |
3.11 |
% |
2.82 |
% |
2.49 |
% |
Total interest-bearing deposits |
2.98 |
% |
2.83 |
% |
2.74 |
% |
2.53 |
% |
2.23 |
% |
Borrowings: |
|
|
|
|
|
Federal Home Loan Bank advances |
3.82 |
% |
3.86 |
% |
3.55 |
% |
3.82 |
% |
3.54 |
% |
Other borrowings |
5.28 |
% |
5.24 |
% |
5.22 |
% |
5.65 |
% |
5.46 |
% |
Total borrowings |
4.04 |
% |
4.04 |
% |
3.77 |
% |
3.97 |
% |
3.74 |
% |
Total interest-bearing liabilities |
3.24 |
% |
3.16 |
% |
3.00 |
% |
2.90 |
% |
2.59 |
% |
|
|
|
|
|
|
Interest rate spread (2) |
1.37 |
% |
1.43 |
% |
1.51 |
% |
1.57 |
% |
1.77 |
% |
Net interest margin (3) |
1.80 |
% |
1.84 |
% |
1.89 |
% |
1.94 |
% |
2.10 |
% |
|
|
|
|
|
|
Non-interest income to average assets (annualized) |
0.24 |
% |
0.30 |
% |
0.21 |
% |
-0.81 |
% |
0.20 |
% |
Non-interest expense to average assets (annualized) |
1.55 |
% |
6.58 |
% |
1.48 |
% |
1.50 |
% |
1.49 |
% |
|
|
|
|
|
|
Efficiency ratio (4) |
80.35 |
% |
323.81 |
% |
75.43 |
% |
150.13 |
% |
68.97 |
% |
|
|
|
|
|
|
Return on average assets (annualized) |
0.32 |
% |
-4.68 |
% |
0.38 |
% |
-0.70 |
% |
0.49 |
% |
Return on average equity (annualized) |
3.25 |
% |
-47.97 |
% |
3.50 |
% |
-6.59 |
% |
4.57 |
% |
Return on average tangible equity (annualized) (5) |
3.89 |
% |
3.33 |
% |
4.68 |
% |
-8.84 |
% |
6.07 |
% |
|
|
|
|
|
|
|
|
|
|
|
_________________________ |
(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) |
September 30,2024 |
June 30,2024 |
March 31,2024 |
December 31,2023 |
September 30,2023 |
Adjusted net
income: |
|
|
|
|
|
Net income (loss) (GAAP) |
$ |
6,092 |
|
$ |
(90,079 |
) |
$ |
7,397 |
|
$ |
(13,827 |
) |
$ |
9,842 |
|
Non-recurring transactions - net of tax: |
|
|
|
|
|
Net effect of sale and call of securities |
|
— |
|
|
— |
|
|
— |
|
|
12,876 |
|
|
— |
|
Net effect of bank-owned life insurance restructure |
|
— |
|
|
392 |
|
|
— |
|
|
6,286 |
|
|
— |
|
Goodwill impairment |
|
— |
|
|
95,283 |
|
|
— |
|
|
— |
|
|
— |
|
Adjusted net income |
$ |
6,092 |
|
$ |
5,596 |
|
$ |
7,397 |
|
$ |
5,335 |
|
$ |
9,842 |
|
|
|
|
|
|
|
Calculation of pre-tax, pre-provision net
revenue: |
|
|
|
|
|
Net income (loss) (GAAP) |
$ |
6,092 |
|
$ |
(90,079 |
) |
$ |
7,397 |
|
$ |
(13,827 |
) |
$ |
9,842 |
|
Adjustments to net income (GAAP): |
|
|
|
|
|
Provision for income taxes |
|
1,086 |
|
|
(917 |
) |
|
1,717 |
|
|
1,782 |
|
|
3,309 |
|
Provision for credit losses |
|
108 |
|
|
3,527 |
|
|
349 |
|
|
2,105 |
|
|
245 |
|
Pre-tax, pre-provision net revenue (non-GAAP) |
$ |
7,286 |
|
$ |
(87,469 |
) |
$ |
9,463 |
|
$ |
(9,940 |
) |
$ |
13,396 |
|
|
|
|
|
|
|
Adjusted earnings per share: |
|
|
|
|
|
Weighted average common shares - basic |
|
62,389 |
|
|
62,254 |
|
|
62,205 |
|
|
62,299 |
|
|
63,014 |
|
Weighted average common shares - diluted |
|
62,420 |
|
|
62,330 |
|
|
62,211 |
|
|
62,367 |
|
|
63,061 |
|
|
|
|
|
|
|
Earnings per share - basic (GAAP) |
$ |
0.10 |
|
$ |
(1.45 |
) |
$ |
0.12 |
|
$ |
(0.22 |
) |
$ |
0.16 |
|
Earnings per share - diluted (GAAP) |
$ |
0.10 |
|
$ |
(1.45 |
) |
$ |
0.12 |
|
$ |
(0.22 |
) |
$ |
0.16 |
|
|
|
|
|
|
|
Adjusted earnings per share - basic (non-GAAP) |
$ |
0.10 |
|
$ |
0.09 |
|
$ |
0.12 |
|
$ |
0.09 |
|
$ |
0.16 |
|
Adjusted earnings per share - diluted (non-GAAP) |
$ |
0.10 |
|
$ |
0.09 |
|
$ |
0.12 |
|
$ |
0.09 |
|
$ |
0.16 |
|
|
|
|
|
|
|
Pre-tax, pre-provision net revenue per
share: |
|
|
|
|
|
Pre-tax, pre-provision net revenue per share - basic
(non-GAAP) |
$ |
0.12 |
|
$ |
(1.41 |
) |
$ |
0.15 |
|
$ |
(0.16 |
) |
$ |
0.21 |
|
Pre-tax, pre-provision net revenue per share - diluted
(non-GAAP) |
$ |
0.12 |
|
$ |
(1.40 |
) |
$ |
0.15 |
|
$ |
(0.16 |
) |
$ |
0.21 |
|
|
|
|
|
|
|
Adjusted return on average assets: |
|
|
|
|
|
Total average assets |
$ |
7,688,433 |
|
$ |
7,695,080 |
|
$ |
7,851,721 |
|
$ |
7,944,586 |
|
$ |
8,019,502 |
|
|
|
|
|
|
|
Return on average assets (GAAP) |
|
0.32 |
% |
|
-4.68 |
% |
|
0.38 |
% |
|
-0.70 |
% |
|
0.49 |
% |
Adjusted return on average assets (non-GAAP) |
|
0.32 |
% |
|
0.29 |
% |
|
0.38 |
% |
|
0.27 |
% |
|
0.49 |
% |
|
|
|
|
|
|
Adjusted return on average equity: |
|
|
|
|
|
Total average equity |
$ |
750,678 |
|
$ |
751,070 |
|
$ |
844,782 |
|
$ |
838,714 |
|
$ |
862,128 |
|
|
|
|
|
|
|
Return on average equity (GAAP) |
|
3.25 |
% |
|
-47.97 |
% |
|
3.50 |
% |
|
-6.59 |
% |
|
4.57 |
% |
Adjusted return on average equity (non-GAAP) |
|
3.25 |
% |
|
2.98 |
% |
|
3.50 |
% |
|
2.54 |
% |
|
4.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kearny Financial Corp.Reconciliation of
GAAP to Non-GAAP(Unaudited) |
|
|
Three Months Ended |
(Dollars and Shares in Thousands,Except Per Share Data) |
September 30,2024 |
June 30,2024 |
March 31,2024 |
December 31,2023 |
September 30,2023 |
Adjusted return on average tangible equity: |
|
|
|
|
|
Total average equity |
$ |
750,678 |
|
$ |
751,070 |
|
$ |
844,782 |
|
$ |
838,714 |
|
$ |
862,128 |
|
Less: average goodwill |
|
(113,525 |
) |
|
(113,525 |
) |
|
(210,895 |
) |
|
(210,895 |
) |
|
(210,895 |
) |
Less: average other intangible
assets |
|
(1,886 |
) |
|
(2,006 |
) |
|
(2,138 |
) |
|
(2,277 |
) |
|
(2,411 |
) |
Total average tangible
equity |
$ |
635,267 |
|
$ |
635,539 |
|
$ |
631,749 |
|
$ |
625,542 |
|
$ |
648,822 |
|
|
|
|
|
|
|
Return on average tangible
equity (non-GAAP) |
|
3.89 |
% |
|
3.33 |
% |
|
4.68 |
% |
|
-8.84 |
% |
|
6.07 |
% |
Adjusted return on average
tangible equity (non-GAAP) |
|
3.89 |
% |
|
3.58 |
% |
|
4.68 |
% |
|
3.41 |
% |
|
6.07 |
% |
|
|
|
|
|
|
Adjusted non-interest
expense ratio: |
|
|
|
|
|
Non-interest expense
(GAAP) |
$ |
29,786 |
|
$ |
126,551 |
|
$ |
29,059 |
|
$ |
29,767 |
|
$ |
29,774 |
|
Non-recurring
transactions: |
|
|
|
|
|
Goodwill impairment |
|
— |
|
|
(97,370 |
) |
|
— |
|
|
— |
|
|
— |
|
Non-interest expense
(non-GAAP) |
$ |
29,786 |
|
$ |
29,181 |
|
$ |
29,059 |
|
$ |
29,767 |
|
$ |
29,774 |
|
|
|
|
|
|
|
Non-interest expense ratio
(GAAP) |
|
1.55 |
% |
|
6.58 |
% |
|
1.48 |
% |
|
1.50 |
% |
|
1.49 |
% |
Adjusted non-interest expense
ratio (non-GAAP) |
|
1.55 |
% |
|
1.52 |
% |
|
1.48 |
% |
|
1.50 |
% |
|
1.49 |
% |
|
|
|
|
|
|
Adjusted efficiency
ratio: |
|
|
|
|
|
Non-interest expense
(non-GAAP) |
$ |
29,786 |
|
$ |
29,181 |
|
$ |
29,059 |
|
$ |
29,767 |
|
$ |
29,774 |
|
|
|
|
|
|
|
Net interest income
(GAAP) |
$ |
32,446 |
|
$ |
33,276 |
|
$ |
34,319 |
|
$ |
35,839 |
|
$ |
39,160 |
|
Total non-interest income
(GAAP) |
|
4,626 |
|
|
5,806 |
|
|
4,203 |
|
|
(16,012 |
) |
|
4,010 |
|
Non-recurring
transactions: |
|
|
|
|
|
Net effect of sale and call of
securities |
|
— |
|
|
— |
|
|
— |
|
|
18,135 |
|
|
— |
|
Net effect of bank-owned life
insurance restructure |
|
— |
|
|
392 |
|
|
— |
|
|
573 |
|
|
— |
|
Total revenue (non-GAAP) |
$ |
37,072 |
|
$ |
39,474 |
|
$ |
38,522 |
|
$ |
38,535 |
|
$ |
43,170 |
|
|
|
|
|
|
|
Efficiency ratio (GAAP) |
|
80.35 |
% |
|
323.81 |
% |
|
75.43 |
% |
|
150.13 |
% |
|
68.97 |
% |
Adjusted efficiency ratio
(non-GAAP) |
|
80.35 |
% |
|
73.92 |
% |
|
75.43 |
% |
|
77.25 |
% |
|
68.97 |
% |
Kearny Financial (NASDAQ:KRNY)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024
Kearny Financial (NASDAQ:KRNY)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024