Kearny Financial Corp. Announces Fourth Quarter and Fiscal Year End 2024 Results and Declaration of $0.11 Per Share Cash Dividend
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Kearny Financial Corp (NASDAQ: KRNY) reported a GAAP net loss of $90.1 million for Q4 2024, primarily due to a $95.3 million non-cash goodwill impairment. Adjusted net income was $5.6 million or $0.09 per diluted share. For fiscal year 2024, the company reported a GAAP net loss of $86.7 million, with adjusted net income of $28.2 million or $0.45 per diluted share.
Key highlights:
- Declared quarterly cash dividend of $0.11 per share
- Non-performing assets improved by $15.7 million year-over-year
- Non-interest bearing deposits grew 2.1% quarter-over-quarter
- Net interest margin contracted to 1.84% for Q4 2024
- Total assets decreased 4.7% year-over-year to $7.68 billion
- Loans receivable decreased 1.7% year-over-year to $5.73 billion
- Deposits decreased 8.4% year-over-year to $5.16 billion
Kearny Financial Corp (NASDAQ: KRNY) ha registrato una perdita netta GAAP di 90,1 milioni di dollari per il quarto trimestre del 2024, principalmente a causa di un impaired goodwill non monetario di 95,3 milioni di dollari. L'utile netto rettificato è stato di 5,6 milioni di dollari, pari a 0,09 dollari per azione diluita. Per l'anno fiscale 2024, la società ha riportato una perdita netta GAAP di 86,7 milioni di dollari, con un utile netto rettificato di 28,2 milioni di dollari, ovvero 0,45 dollari per azione diluita.
Punti salienti:
- Dividendo in contante trimestrale dichiarato di 0,11 dollari per azione
- Il valore degli attivi non performanti è migliorato di 15,7 milioni di dollari rispetto all'anno precedente
- I depositi non remunerativi sono aumentati del 2,1% rispetto al trimestre precedente
- Il margine di interesse netto si è contratto al 1,84% nel quarto trimestre del 2024
- Gli attivi totali sono diminuiti del 4,7% rispetto all'anno precedente, arrivando a 7,68 miliardi di dollari
- I prestiti recepiti sono diminuiti dell'1,7% rispetto all'anno precedente, attestandosi a 5,73 miliardi di dollari
- I depositi sono diminuiti dell'8,4% rispetto all'anno precedente, scendendo a 5,16 miliardi di dollari
Kearny Financial Corp (NASDAQ: KRNY) reportó una pérdida neta GAAP de 90,1 millones de dólares para el cuarto trimestre de 2024, principalmente debido a una devaluación de goodwill no monetaria de 95,3 millones de dólares. La utilidad neta ajustada fue de 5,6 millones de dólares o 0,09 dólares por acción diluida. Para el año fiscal 2024, la compañía reportó una pérdida neta GAAP de 86,7 millones de dólares, con una utilidad neta ajustada de 28,2 millones de dólares o 0,45 dólares por acción diluida.
Puntos clave:
- Se declaró un dividendo en efectivo trimestral de 0,11 dólares por acción
- Los activos no productivos mejoraron en 15,7 millones de dólares con respecto al año anterior
- Los depósitos que no devengan intereses crecieron un 2,1% en comparación con el trimestre anterior
- El margen de interés neto se contrajo al 1,84% para el cuarto trimestre de 2024
- Los activos totales disminuyeron un 4,7% interanual a 7,68 mil millones de dólares
- Los préstamos por cobrar disminuyeron un 1,7% interanual a 5,73 mil millones de dólares
- Los depósitos disminuyeron un 8,4% interanual a 5,16 mil millones de dólares
Kearny Financial Corp (NASDAQ: KRNY)는 2024년 4분기 GAAP 순손실이 9천 101억 달러로, 주로 9천 530억 달러의 비현금 goodwill 손상 때문이라고 보고했습니다. 조정된 순이익은 560만 달러 또는 희석당 0.09달러였습니다. 2024 회계연도 동안 회사는 GAAP 순손실을 8천670만 달러로 보고했으며, 조정된 순이익은 2820만 달러 또는 희석당 0.45달러로 기록되었습니다.
주요 하이라이트:
- 주당 0.11달러의 분기 현금 배당금 선언
- 비수익 자산이 전년 대비 1570만 달러 개선됨
- 이자 비과세 예금이 전분기 대비 2.1% 성장함
- 2024년 4분기 순이자 마진이 1.84%로 축소됨
- 총 자산이 전년 대비 4.7% 감소하여 76억 8000만 달러에 도달함
- 수취 대출이 전년 대비 1.7% 감소하여 57억 3000만 달러에 도달함
- 예금이 전년 대비 8.4% 감소하여 51억 6000만 달러에 도달함
Kearny Financial Corp (NASDAQ: KRNY) a annoncé une perte nette GAAP de 90,1 millions de dollars pour le quatrième trimestre de 2024, principalement en raison d'une dépréciation non monétaire du goodwill de 95,3 millions de dollars. Le revenu net ajusté s'élevait à 5,6 millions de dollars, soit 0,09 dollar par action diluée. Pour l'exercice 2024, la société a annoncé une perte nette GAAP de 86,7 millions de dollars, avec un revenu net ajusté de 28,2 millions de dollars ou 0,45 dollar par action diluée.
Points clés :
- Un dividende en espèces trimestriel de 0,11 dollar par action a été déclaré
- Les actifs non performants se sont améliorés de 15,7 millions de dollars par rapport à l'année précédente
- Les dépôts non productifs ont augmenté de 2,1 % par rapport au trimestre précédent
- La marge d'intérêt nette a chuté à 1,84 % pour le quatrième trimestre 2024
- Les actifs totaux ont diminué de 4,7 % par rapport à l'année précédente pour atteindre 7,68 milliards de dollars
- Les prêts à recevoir ont diminué de 1,7 % par rapport à l'année précédente pour atteindre 5,73 milliards de dollars
- Les dépôts ont diminué de 8,4 % par rapport à l'année précédente pour atteindre 5,16 milliards de dollars
Kearny Financial Corp (NASDAQ: KRNY) meldete einen GAAP-Nettoverlust von 90,1 Millionen Dollar für das 4. Quartal 2024, hauptsächlich aufgrund einer nicht zahlungswirksamen Goodwill-Abwertung in Höhe von 95,3 Millionen Dollar. Der bereinigte Nettogewinn betrug 5,6 Millionen Dollar oder 0,09 Dollar pro verwässerter Aktie. Für das Geschäftsjahr 2024 meldete das Unternehmen einen GAAP-Nettoverlust von 86,7 Millionen Dollar, bei einem bereinigten Nettogewinn von 28,2 Millionen Dollar oder 0,45 Dollar pro verwässerter Aktie.
Wichtige Höhepunkte:
- Erklärung einer vierteljährlichen Bar-Dividende von 0,11 Dollar pro Aktie
- Nicht leistungsfähige Vermögenswerte verbesserten sich im Jahresvergleich um 15,7 Millionen Dollar
- Zinsfreie Einlagen wuchsen im Quartalsvergleich um 2,1%
- Die Nettozinsmarge fiel im 4. Quartal 2024 auf 1,84%
- Die Gesamtvermögen verringerte sich im Jahresvergleich um 4,7% auf 7,68 Milliarden Dollar
- Forderungen aus Krediten verringerten sich im Jahresvergleich um 1,7% auf 5,73 Milliarden Dollar
- Die Einlagen sanken im Jahresvergleich um 8,4% auf 5,16 Milliarden Dollar
Positive
- Declared quarterly cash dividend of $0.11 per share
- Non-performing assets improved by $15.7 million year-over-year
- Non-interest bearing deposits grew 2.1% quarter-over-quarter
- Maintained strong capital ratios, with Common Equity Tier 1 Capital Ratio increasing to 14.79%
- Available secured borrowing capacity of $1.82 billion
Negative
- GAAP net loss of $90.1 million for Q4 2024 due to $95.3 million non-cash goodwill impairment
- Net interest margin contracted to 1.84% for Q4 2024, down 5 basis points quarter-over-quarter
- Total assets decreased 4.7% year-over-year to $7.68 billion
- Loans receivable decreased 1.7% year-over-year to $5.73 billion
- Deposits decreased 8.4% year-over-year to $5.16 billion
- Net charge-offs increased to $3.5 million or 0.25% of average loans for Q4 2024
Insights
Kearny Financial Corp.'s Q4 and fiscal year 2024 results present a mixed picture, with some concerning elements but also signs of resilience. The headline GAAP net loss of
Adjusting for the impairment, Q4 net income was
On a positive note, the bank's asset quality remains strong, with non-performing assets improving by
The
Overall, while Kearny is navigating a challenging environment, its strong capital position and improving asset quality provide a buffer. The key focus for investors should be on the bank's ability to improve its net interest margin in coming quarters.
Kearny Financial Corp.'s results offer insights into broader trends affecting regional banks. The goodwill impairment highlights the pressure on bank valuations in the current high-rate environment, a challenge faced by many in the sector. This non-cash charge, while not affecting operations, could impact investor sentiment towards regional banks.
The contraction in net interest margin to
The
The
Kearny's strong capital ratios and improving asset quality provide stability in a volatile market. However, the decline in adjusted earnings may pressure the stock in the near term. Investors will likely focus on the bank's ability to execute its efficiency initiatives and improve profitability in coming quarters.
FAIRFIELD, N.J., July 25, 2024 (GLOBE NEWSWIRE) -- Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), reported a GAAP net loss for the quarter ended June 30, 2024 of
“Goodwill impairment in no way affects our ongoing strategy or our ability to serve the banking needs of our clients,” said Craig L. Montanaro, President & Chief Executive Officer. “It also has no impact on our financial condition, robust liquidity position, or peer-leading regulatory capital ratios. This impairment simply reflects the impact of the current interest rate environment on bank stock prices, including our own.”
For the fiscal year ended June 30, 2024, the Company reported a GAAP net loss of
The Company also announced that its Board of Directors has declared a quarterly cash dividend of
“Despite the challenging interest rate environment we have plenty of positive news to report this quarter,” Mr. Montanaro said. “The performance of our commercial real estate and multifamily portfolios continues to be outstanding, with non-performing assets having improved by
Mr. Montanaro concluded by noting, “As described in greater detail later in this release, we fully charged-off a
Balance Sheet
- Total assets were
$7.68 billion at June 30, 2024, a decrease of$158.5 million , or2.0% , from March 31, 2024 and a decrease of$381.4 million , or4.7% , from June 30, 2023. - Investment securities totaled
$1.21 billion at June 30, 2024, a decrease of$29.7 million , or2.4% , from March 31, 2024 and a decrease of$165.6 million , or12.1% , from June 30, 2023. The decrease for the year was largely driven by the sale of available-for-sale securities, which was part of the investment securities portfolio repositioning executed in December 2023. - Loans receivable totaled
$5.73 billion at June 30, 2024, a decrease of$25.5 million , or0.4% , from March 31, 2024 and a decrease of$96.6 million , or1.7% , from June 30, 2023. The decrease for the year was largely driven by multi-family and nonresidential mortgage loans. - Deposits were
$5.16 billion at June 30, 2024, a decrease of$50.9 million , or1.0% , from March 31, 2024 and a decrease of$471.1 million , or8.4% , from June 30, 2023. The decrease from March 31, 2024 was driven by a$40.1 million decline in interest bearing government deposits and a$36.1 million decline in retail certificates of deposits (“CDs”), partially offset by growth in non-interest bearing and consumer savings deposits. Excluding brokered CDs, deposits decreased$238.8 million , or4.8% , from June 30, 2023, driven by a$177.9 million decline in retail CDs and a$105.2 million decline in consumer savings deposits, partially offset by growth in other deposit categories. - Borrowings were
$1.71 billion at June 30, 2024, a decrease of$12.4 million , or0.7% , from March 31, 2024 and an increase of$203.0 million , or13.5% , from June 30, 2023. - At June 30, 2024, the Company maintained available secured borrowing capacity of
$1.82 billion , of which$1.44 billion was immediately accessible via in-place collateral and$381.4 million represented the market value of unpledged securities. - Goodwill was
$113.5 million at June 30, 2024, a decrease of$97.4 million , or46.2% , from March 31, 2024 and June 30, 2023. The Company recognized a non-cash goodwill impairment, as noted above.
Earnings
Net Interest Income and Net Interest Margin
- Net interest margin contracted five basis points to
1.84% for the quarter ended June 30, 2024 and 40 basis points to1.94% for the year ended June 30, 2024. The decreases for the quarter and the year were driven by increases in the cost of interest-bearing liabilities, increases in the average balances of interest-bearing borrowings and decreases in the average balances of interest-earning assets, partially offset by higher yields on interest-earning assets and decreases in the average balances of interest-bearing deposits. - For the quarter ended June 30, 2024, net interest income decreased
$1.0 million to$33.3 million from$34.3 million for the quarter ended March 31, 2024. Included in net interest income for the quarters ended June 30, 2024 and March 31, 2024, respectively, was purchase accounting accretion of$612,000 and$734,000 , and loan prepayment penalty income of$366,000 and$61,000. - For the year ended June 30, 2024, net interest income decreased
$33.3 million to$142.6 million from$175.9 million for the year ended June 30, 2023. Included in net interest income for the years ended June 30, 2024 and 2023, respectively, was purchase accounting accretion of$2.6 million and$5.3 million , and loan prepayment penalty income of$879,000 and$895,000.
Non-Interest Income
- For the quarter ended June 30, 2024, non-interest income increased
$1.6 million to income of$5.8 million from income of$4.2 million for the quarter ended March 31, 2024. Non-interest income for the quarter ended June 30, 2024 included a contract renewal bonus of$750,000 related to a licensing agreement with a third-party vendor. Included in other income for the quarter ended March 31, 2024 was an$884,000 non-recurring loss attributable to the sale of three related nonperforming commercial real estate loans held-for-sale. No such losses were recorded during the quarter ended June 30, 2024. - Income from BOLI increased
$170,000 t o$3.2 million for the quarter ended June 30, 2024 from$3.0 million for the quarter ended March 31, 2024. BOLI income included a total of$1.1 million in non-recurring payments on two life insurance policies in the current period, partially offset by a$392,000 non-recurring exchange charge related to the December 2023 BOLI restructure. For the quarter ended March 31, 2024, BOLI income included a$631,000 non-recurring payment on one life insurance policy. - For the year ended June 30, 2024, non-interest income decreased
$4.7 million to a loss of$2.0 million . The decrease was primarily attributable to a pre-tax loss of$18.1 million related to the investment securities portfolio repositioning executed during December 2023 compared to a pre-tax loss of$15.2 million on the sale of securities in the prior year period. Included in other income for the year ended June 30, 2023 was a nonrecurring gain of$2.9 million attributable to the sale of a former branch location. No such gains were recorded during the year ended June 30, 2024.
Non-Interest Expense
- For the quarter ended June 30, 2024, non-interest expense increased
$97.5 million , or335.5% , to$126.6 million from$29.1 million for the quarter ended March 31, 2024, driven by a non-cash goodwill impairment recognized in the current quarter. Excluding the goodwill impairment, adjusted non-interest expense increased$122,000 , or0.4% , to$29.2 million from$29.1 million in the prior quarter, driven primarily by a nonrecurring increase in post-retirement benefits expense. - For the year ended June 30, 2024, non-interest expense increased
$91.4 million , or73.9% , to$215.2 million from$123.8 million for the year ended June 30, 2023, driven by non-cash goodwill impairment, as noted above. Excluding the goodwill impairment, adjusted non-interest expense decreased$4.4 million , or3.6% , to$117.8 million from$122.2 million in the prior year period. The decrease was primarily attributable to decreases in salary and employee benefits expenses, occupancy, advertising and other expenses, which resulted from a continued execution of the company-wide operating efficiency initiative previously announced in December 2022. - Salaries and employee benefits decreased
$6.4 million , or8.4% , for the year ended June 30, 2024 reflecting lower average headcount and a decrease in incentive payments tied to origination volume, partially offset by annual merit increases. Included in salaries and employee benefits for the year ended June 30, 2023 was$757,000 of severance expense from a workforce realignment. - For the year ended June 30, 2023, the Company recorded
$800,000 in branch consolidation expense, of which$250,000 was recorded in occupancy expense and$550,000 was recorded in other expense. No such expenses were recorded during the year ended June 30, 2024.
Income Taxes
- Income tax expense was reduced by
$917,000 for the quarter ended June 30, 2024 compared to an expense of$1.7 million for the quarter ended March 31, 2024. The decrease in income tax expense for the quarter was mainly attributable to a partial reversal of the deferred tax liability associated with the goodwill impairment, as discussed above. - Income tax expense totaled
$5.9 million for the fiscal year ended June 30, 2024 compared to$11.6 million for the fiscal year ended June 30, 2023. The decrease in income tax expense was due to lower pre-tax income, partially offset by$5.7 million of tax expense related to the surrender of BOLI policies during the fiscal year ended June 30, 2024.
Asset Quality
- The balance of non-performing assets increased
$336,000 t o$39.9 million , or0.52% of total assets, at June 30, 2024, from$39.5 million , or0.50% of total assets, at March 31, 2024. The balance of non-performing assets was$55.6 million , or0.69% of total assets, at June 30, 2023. The decrease from June 30, 2023 was primarily driven by the January 2024 sales of three related non-performing commercial real estate loans held-for-sale and the Company’s sole Other Real Estate Owned asset. - Net charge-offs totaled
$3.5 million , or0.25% of average loans, on an annualized basis, for the quarter ended June 30, 2024, compared to$286,000 , or0.02% of average loans, on an annualized basis, for the quarter ended March 31, 2024. For the year ended June 30, 2024, net charge-offs totaled$10.0 million , or0.17% of average loans, compared to$810,000 , or0.01% of average loans, for the year ended June 30, 2023. - The charge-offs recorded during the quarter ended June 30, 2024 were primarily driven by a
$3.3 million non-performing commercial and industrial loan relationship with a masonry and concrete business (the “borrower”). This relationship was originated in 2021 and is secured by the borrower’s business assets and receivables, as well as the personal guarantee of the principal. The borrower had made consistent and timely payments on these loans until recently, when the business ceased operations due to operating losses and litigation. The Company is currently pursuing all available remedies against the borrower and guarantor. - For the quarter ended June 30, 2024, the Company recorded a provision for credit losses of
$3.5 million , compared to$349,000 for the quarter ended March 31, 2024. The provision for credit loss expense for the quarter ended June 30, 2024 was primarily driven by the charge-offs described above. For the years ended June 30, 2024 and 2023, the Company recorded a provision for credit losses of$6.2 million and$2.5 million , respectively. - The allowance for credit losses (“ACL”) was
$44.9 million , or0.78% of total loans, at June 30, 2024, unchanged from March 31, 2024, and a decrease of$3.8 million from$48.7 million , or0.83% of total loans, at June 30, 2023. The decrease in the ACL from June 30, 2023 was largely attributable to a reduction in reserves for individually evaluated loans, resulting from the charge-offs noted above.
Capital
- At June 30, 2024 the Company's tangible equity to tangible assets ratio increased to
8.43% while the Company's Common Equity Tier 1 Capital Ratio increased to14.79% . All of the Company's capital ratios remained strong and were significantly in excess of regulatory well-capitalized standards. - At June 30, 2024, book value per share totaled
$11.70 while tangible book value per share totaled$9.90 . - At June 30, 2024, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of
$93.0 million , partially offset by after-tax unrealized gains on derivatives of$29.6 million . After-tax net unrecognized losses on securities held to maturity of$11.7 million were not reflected in total stockholders’ equity.
This earnings release should be read in conjunction with Kearny Financial Corp.’s Q4 2024 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.
For further information contact:
Keith Suchodolski, Senior Executive Vice President and Chief Operating Officer, or
Sean Byrnes, Executive Vice President and Chief Financial Officer
Kearny 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) | June 30, 2024 | March 31, 2024 | Variance or Change | Variance or Change Pct. | |||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 63,864 | $ | 71,027 | $ | (7,163 | ) | -10.1 | % | ||
| Securities available for sale | 1,072,833 | 1,098,655 | (25,822 | ) | -2.4 | % | |||||
| Securities held to maturity | 135,742 | 139,643 | (3,901 | ) | -2.8 | % | |||||
| Loans held-for-sale | 6,036 | 4,117 | 1,919 | 46.6 | % | ||||||
| Loans receivable | 5,732,787 | 5,758,336 | (25,549 | ) | -0.4 | % | |||||
| Less: allowance for credit losses on loans | (44,939 | ) | (44,930 | ) | 9 | — | % | ||||
| Net loans receivable | 5,687,848 | 5,713,406 | (25,558 | ) | -0.4 | % | |||||
| Premises and equipment | 44,940 | 45,053 | (113 | ) | -0.3 | % | |||||
| Federal Home Loan Bank stock | 80,300 | 81,347 | (1,047 | ) | -1.3 | % | |||||
| Accrued interest receivable | 29,521 | 31,065 | (1,544 | ) | -5.0 | % | |||||
| Goodwill | 113,525 | 210,895 | (97,370 | ) | -46.2 | % | |||||
| Core deposit intangible | 1,931 | 2,057 | (126 | ) | -6.1 | % | |||||
| Bank owned life insurance | 297,874 | 296,493 | 1,381 | 0.5 | % | ||||||
| Deferred income taxes, net | 50,339 | 47,225 | 3,114 | 6.6 | % | ||||||
| Other assets | 98,708 | 100,989 | (2,281 | ) | -2.3 | % | |||||
| Total assets | $ | 7,683,461 | $ | 7,841,972 | $ | (158,511 | ) | -2.0 | % | ||
| Liabilities | |||||||||||
| Deposits: | |||||||||||
| Non-interest-bearing | $ | 598,366 | $ | 586,089 | $ | 12,277 | 2.1 | % | |||
| Interest-bearing | 4,559,757 | 4,622,961 | (63,204 | ) | -1.4 | % | |||||
| Total deposits | 5,158,123 | 5,209,050 | (50,927 | ) | -1.0 | % | |||||
| Borrowings | 1,709,789 | 1,722,178 | (12,389 | ) | -0.7 | % | |||||
| Advance payments by borrowers for taxes | 17,409 | 17,387 | 22 | 0.1 | % | ||||||
| Other liabilities | 44,569 | 44,279 | 290 | 0.7 | % | ||||||
| Total liabilities | 6,929,890 | 6,992,894 | (63,004 | ) | -0.9 | % | |||||
| Stockholders' Equity | |||||||||||
| Common stock | 644 | 644 | — | — | % | ||||||
| Paid-in capital | 493,680 | 493,187 | 493 | 0.1 | % | ||||||
| Retained earnings | 343,326 | 440,308 | (96,982 | ) | -22.0 | % | |||||
| Unearned ESOP shares | (20,916 | ) | (21,402 | ) | 486 | 2.3 | % | ||||
| Accumulated other comprehensive loss | (63,163 | ) | (63,659 | ) | 496 | 0.8 | % | ||||
| Total stockholders' equity | 753,571 | 849,078 | (95,507 | ) | -11.2 | % | |||||
| Total liabilities and stockholders' equity | $ | 7,683,461 | $ | 7,841,972 | $ | (158,511 | ) | -2.0 | % | ||
| Consolidated capital ratios | |||||||||||
| Equity to assets | 9.81 | % | 10.83 | % | -1.02 | % | |||||
| Tangible equity to tangible assets(1) | 8.43 | % | 8.34 | % | 0.09 | % | |||||
| Share data | |||||||||||
| Outstanding shares | 64,434 | 64,437 | (3 | ) | — | % | |||||
| Book value per share | $ | 11.70 | $ | 13.18 | $ | (1.48 | ) | -11.2 | % | ||
| Tangible book value per share(2) | $ | 9.90 | $ | 9.87 | $ | 0.03 | 0.3 | % | |||
_________________________
| (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. | ||||||||
| June 30, 2024 | March 31, 2024 | ||||||||||
| Interest income | |||||||||||
| Loans | $ | 65,819 | $ | 64,035 | $ | 1,784 | 2.8 | % | |||
| Taxable investment securities | 14,802 | 15,490 | (688 | ) | -4.4 | % | |||||
| Tax-exempt investment securities | 80 | 85 | (5 | ) | -5.9 | % | |||||
| Other interest-earning assets | 2,289 | 2,475 | (186 | ) | -7.5 | % | |||||
| Total interest income | 82,990 | 82,085 | 905 | 1.1 | % | ||||||
| Interest expense | |||||||||||
| Deposits | 32,187 | 32,320 | (133 | ) | -0.4 | % | |||||
| Borrowings | 17,527 | 15,446 | 2,081 | 13.5 | % | ||||||
| Total interest expense | 49,714 | 47,766 | 1,948 | 4.1 | % | ||||||
| Net interest income | 33,276 | 34,319 | (1,043 | ) | -3.0 | % | |||||
| Provision for credit losses | 3,527 | 349 | 3,178 | 910.6 | % | ||||||
| Net interest income after provision for credit losses | 29,749 | 33,970 | (4,221 | ) | -12.4 | % | |||||
| Non-interest income | |||||||||||
| Fees and service charges | 580 | 657 | (77 | ) | -11.7 | % | |||||
| Gain (loss) on sale of loans | 111 | (712 | ) | 823 | -115.6 | % | |||||
| Income from bank owned life insurance | 3,209 | 3,039 | 170 | 5.6 | % | ||||||
| Electronic banking fees and charges | 1,130 | 464 | 666 | 143.5 | % | ||||||
| Other income | 776 | 755 | 21 | 2.8 | % | ||||||
| Total non-interest income | 5,806 | 4,203 | 1,603 | -38.1 | % | ||||||
| Non-interest expense | |||||||||||
| Salaries and employee benefits | 17,266 | 16,911 | 355 | 2.1 | % | ||||||
| Net occupancy expense of premises | 2,738 | 2,863 | (125 | ) | -4.4 | % | |||||
| Equipment and systems | 3,785 | 3,823 | (38 | ) | -1.0 | % | |||||
| Advertising and marketing | 480 | 387 | 93 | 24.0 | % | ||||||
| Federal deposit insurance premium | 1,532 | 1,429 | 103 | 7.2 | % | ||||||
| Directors' compensation | 360 | 360 | — | — | % | ||||||
| Goodwill impairment | 97,370 | — | 97,370 | — | % | ||||||
| Other expense | 3,020 | 3,286 | (266 | ) | -8.1 | % | |||||
| Total non-interest expense | 126,551 | 29,059 | 97,492 | 335.5 | % | ||||||
| (Loss) income before income taxes | (90,996 | ) | 9,114 | (100,110 | ) | 1098.4 | % | ||||
| Income taxes | (917 | ) | 1,717 | (2,634 | ) | -153.4 | % | ||||
| Net (loss) income | $ | (90,079 | ) | $ | 7,397 | $ | (97,476 | ) | 1317.8 | % | |
| Net (loss) income per common share (EPS) | |||||||||||
| Basic | $ | (1.45 | ) | $ | 0.12 | $ | (1.57 | ) | |||
| Diluted | $ | (1.45 | ) | $ | 0.12 | $ | (1.57 | ) | |||
| Dividends declared | |||||||||||
| Cash dividends declared per common share | $ | 0.11 | $ | 0.11 | $ | — | |||||
| Cash dividends declared | $ | 6,903 | $ | 6,844 | $ | 59 | |||||
| Dividend payout ratio | -7.7 | % | 92.5 | % | -100.2 | % | |||||
| Weighted average number of common shares outstanding | |||||||||||
| Basic | 62,254 | 62,205 | 49 | ||||||||
| Diluted | 62,254 | 62,211 | 43 | ||||||||
Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)
| (Dollars in Thousands) | Three Months Ended | Variance or Change | Variance or Change Pct. | ||||||||
| June 30, 2024 | March 31, 2024 | ||||||||||
| Assets | |||||||||||
| Interest-earning assets: | |||||||||||
| Loans receivable, including loans held for sale | $ | 5,743,008 | $ | 5,752,477 | $ | (9,469 | ) | -0.2 | % | ||
| Taxable investment securities | 1,343,541 | 1,382,064 | (38,523 | ) | -2.8 | % | |||||
| Tax-exempt investment securities | 13,737 | 14,614 | (877 | ) | -6.0 | % | |||||
| Other interest-earning assets | 128,257 | 125,155 | 3,102 | 2.5 | % | ||||||
| Total interest-earning assets | 7,228,543 | 7,274,310 | (45,767 | ) | -0.6 | % | |||||
| Non-interest-earning assets | 466,537 | 577,411 | (110,874 | ) | -19.2 | % | |||||
| Total assets | $ | 7,695,080 | $ | 7,851,721 | $ | (156,641 | ) | -2.0 | % | ||
| Liabilities and Stockholders' Equity | |||||||||||
| Interest-bearing liabilities: | |||||||||||
| Deposits: | |||||||||||
| Interest-bearing demand | $ | 2,310,521 | $ | 2,378,831 | $ | (68,310 | ) | -2.9 | % | ||
| Savings | 631,622 | 635,226 | (3,604 | ) | -0.6 | % | |||||
| Certificates of deposit | 1,613,798 | 1,705,513 | (91,715 | ) | -5.4 | % | |||||
| Total interest-bearing deposits | 4,555,941 | 4,719,570 | (163,629 | ) | -3.5 | % | |||||
| Borrowings: | |||||||||||
| Federal Home Loan Bank advances | 1,507,192 | 1,428,801 | 78,391 | 5.5 | % | ||||||
| Other borrowings | 228,461 | 210,989 | 17,472 | 8.3 | % | ||||||
| Total borrowings | 1,735,653 | 1,639,790 | 95,863 | 5.8 | % | ||||||
| Total interest-bearing liabilities | 6,291,594 | 6,359,360 | (67,766 | ) | -1.1 | % | |||||
| Non-interest-bearing liabilities: | |||||||||||
| Non-interest-bearing deposits | 589,438 | 581,870 | 7,568 | 1.3 | % | ||||||
| Other non-interest-bearing liabilities | 62,978 | 65,709 | (2,731 | ) | -4.2 | % | |||||
| Total non-interest-bearing liabilities | 652,416 | 647,579 | 4,837 | 0.7 | % | ||||||
| Total liabilities | 6,944,010 | 7,006,939 | (62,929 | ) | -0.9 | % | |||||
| Stockholders' equity | 751,070 | 844,782 | (93,712 | ) | -11.1 | % | |||||
| Total liabilities and stockholders' equity | $ | 7,695,080 | $ | 7,851,721 | $ | (156,641 | ) | -2.0 | % | ||
| Average interest-earning assets to average interest-bearing liabilities | 114.89 | % | 114.39 | % | 0.50 | % | 0.4 | % | |||
Kearny Financial Corp.
Performance Ratio Highlights
(Unaudited)
| Three Months Ended | Variance or Change | |||||
| June 30, 2024 | March 31, 2024 | |||||
| Average yield on interest-earning assets: | ||||||
| Loans receivable, including loans held for sale | 4.58 | % | 4.45 | % | 0.13 | % |
| Taxable investment securities | 4.41 | % | 4.48 | % | -0.07 | % |
| Tax-exempt investment securities (1) | 2.32 | % | 2.32 | % | — | % |
| Other interest-earning assets | 7.14 | % | 7.91 | % | -0.77 | % |
| Total interest-earning assets | 4.59 | % | 4.51 | % | 0.08 | % |
| Average cost of interest-bearing liabilities: | ||||||
| Deposits: | ||||||
| Interest-bearing demand | 3.06 | % | 3.08 | % | -0.02 | % |
| Savings | 0.63 | % | 0.46 | % | 0.17 | % |
| Certificates of deposit | 3.35 | % | 3.11 | % | 0.24 | % |
| Total interest-bearing deposits | 2.83 | % | 2.74 | % | 0.09 | % |
| Borrowings: | ||||||
| Federal Home Loan Bank advances | 3.86 | % | 3.55 | % | 0.31 | % |
| Other borrowings | 5.24 | % | 5.22 | % | 0.02 | % |
| Total borrowings | 4.04 | % | 3.77 | % | 0.27 | % |
| Total interest-bearing liabilities | 3.16 | % | 3.00 | % | 0.16 | % |
| Interest rate spread (2) | 1.43 | % | 1.51 | % | -0.08 | % |
| Net interest margin (3) | 1.84 | % | 1.89 | % | -0.05 | % |
| Non-interest income to average assets (annualized) | 0.30 | % | 0.21 | % | 0.09 | % |
| Non-interest expense to average assets (annualized) | 6.58 | % | 1.48 | % | 5.10 | % |
| Efficiency ratio (4) | 323.81 | % | 75.43 | % | 248.38 | % |
| Return on average assets (annualized) | -4.68 | % | 0.38 | % | -5.06 | % |
| Return on average equity (annualized) | -47.97 | % | 3.50 | % | -51.47 | % |
| Return on average tangible equity (annualized) (5) | -56.69 | % | 4.68 | % | -61.37 | % |
_________________________
| (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. |
| Year-to-Year Comparative Financial Analysis |
Kearny Financial Corp.
Consolidated Balance Sheets
| (Dollars and Shares in Thousands, Except Per Share Data) | June 30, 2024 | June 30, 2023 | Variance or Change | Variance or Change Pct. | |||||||
| (Unaudited) | (Audited) | ||||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 63,864 | $ | 70,515 | $ | (6,651 | ) | -9.4 | % | ||
| Securities available for sale | 1,072,833 | 1,227,729 | (154,896 | ) | -12.6 | % | |||||
| Securities held to maturity | 135,742 | 146,465 | (10,723 | ) | -7.3 | % | |||||
| Loans held-for-sale | 6,036 | 9,591 | (3,555 | ) | -37.1 | % | |||||
| Loans receivable | 5,732,787 | 5,829,421 | (96,634 | ) | -1.7 | % | |||||
| Less: allowance for credit losses on loans | (44,939 | ) | (48,734 | ) | (3,795 | ) | -7.8 | % | |||
| Net loans receivable | 5,687,848 | 5,780,687 | (92,839 | ) | -1.6 | % | |||||
| Premises and equipment | 44,940 | 48,309 | (3,369 | ) | -7.0 | % | |||||
| Federal Home Loan Bank of New York stock | 80,300 | 71,734 | 8,566 | 11.9 | % | ||||||
| Accrued interest receivable | 29,521 | 28,133 | 1,388 | 4.9 | % | ||||||
| Goodwill | 113,525 | 210,895 | (97,370 | ) | -46.2 | % | |||||
| Core deposit intangible | 1,931 | 2,457 | (526 | ) | -21.4 | % | |||||
| Bank owned life insurance | 297,874 | 292,825 | 5,049 | 1.7 | % | ||||||
| Deferred income tax assets, net | 50,339 | 51,973 | (1,634 | ) | -3.1 | % | |||||
| Other real estate owned | — | 12,956 | (12,956 | ) | -100.0 | % | |||||
| Other assets | 98,708 | 110,546 | (11,838 | ) | -10.7 | % | |||||
| Total assets | $ | 7,683,461 | $ | 8,064,815 | $ | (381,354 | ) | -4.7 | % | ||
| Liabilities | |||||||||||
| Deposits: | |||||||||||
| Non-interest-bearing | $ | 598,366 | $ | 609,999 | $ | (11,633 | ) | -1.9 | % | ||
| Interest-bearing | 4,559,757 | 5,019,184 | (459,427 | ) | -9.2 | % | |||||
| Total deposits | 5,158,123 | 5,629,183 | (471,060 | ) | -8.4 | % | |||||
| Borrowings | 1,709,789 | 1,506,812 | 202,977 | 13.5 | % | ||||||
| Advance payments by borrowers for taxes | 17,409 | 18,338 | (929 | ) | (5.1)% | ||||||
| Other liabilities | 44,569 | 41,198 | 3,371 | 8.2 | % | ||||||
| Total liabilities | 6,929,890 | 7,195,531 | (265,641 | ) | (3.7)% | ||||||
| Stockholders' Equity | |||||||||||
| Common stock | 644 | 659 | (15 | ) | -2.3 | % | |||||
| Paid-in capital | 493,680 | 503,332 | (9,652 | ) | -1.9 | % | |||||
| Retained earnings | 343,326 | 457,611 | (114,285 | ) | -25.0 | % | |||||
| Unearned ESOP shares | (20,916 | ) | (22,862 | ) | 1,946 | -8.5 | % | ||||
| Accumulated other comprehensive loss | (63,163 | ) | (69,456 | ) | 6,293 | -9.1 | % | ||||
| Total stockholders' equity | 753,571 | 869,284 | (115,713 | ) | -13.3 | % | |||||
| Total liabilities and stockholders' equity | $ | 7,683,461 | $ | 8,064,815 | $ | (381,354 | ) | -4.7 | % | ||
| Consolidated capital ratios | |||||||||||
| Equity to assets | 9.81 | % | 10.78 | % | -0.97 | % | |||||
| Tangible equity to tangible assets(1) | 8.43 | % | 8.35 | % | 0.08 | % | |||||
| Share data | |||||||||||
| Outstanding shares | 64,434 | 65,864 | (1,430 | ) | -2.2 | % | |||||
| Book value per share | $ | 11.70 | $ | 13.20 | $ | (1.50 | ) | -11.4 | % | ||
| Tangible book value per share(2) | $ | 9.90 | $ | 9.96 | $ | (0.06 | ) | -0.6 | % | ||
_________________________
| (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
| Year Ended | |||||||||||
| (Dollars and Shares in Thousands, Except Per Share Data) | June 30, 2024 | June 30, 2023 | Variance or Change | Variance or Change Pct. | |||||||
| (Unaudited) | (Audited) | ||||||||||
| Interest income | |||||||||||
| Loans | $ | 256,007 | $ | 233,147 | $ | 22,860 | 9.8 | % | |||
| Taxable investment securities | 63,313 | 54,855 | 8,458 | 15.4 | % | ||||||
| Tax-exempt investment securities | 336 | 694 | (358 | ) | -51.6 | % | |||||
| Other interest-earning assets | 9,212 | 5,028 | 4,184 | 83.2 | % | ||||||
| Total interest income | 328,868 | 293,724 | 35,144 | 12.0 | % | ||||||
| Interest expense | |||||||||||
| Deposits | 122,414 | 78,163 | 44,251 | 56.6 | % | ||||||
| Borrowings | 63,860 | 39,696 | 24,164 | 60.9 | % | ||||||
| Total interest expense | 186,274 | 117,859 | 68,415 | 58.0 | % | ||||||
| Net interest income | 142,594 | 175,865 | (33,271 | ) | -18.9 | % | |||||
| Provision for credit losses | 6,226 | 2,486 | 3,740 | 150.4 | % | ||||||
| Net interest income after provision for credit losses | 136,368 | 173,379 | (37,011 | ) | -21.3 | % | |||||
| Non-interest income | |||||||||||
| Fees and service charges | 2,609 | 3,106 | (497 | ) | -16.0 | % | |||||
| Loss on sale and call of securities | (18,135 | ) | (15,227 | ) | (2,908 | ) | 19.1 | % | |||
| Loss on sale of loans | (282 | ) | (1,645 | ) | 1,363 | -82.9 | % | ||||
| Loss on sale of real estate owned | (974 | ) | (139 | ) | (835 | ) | 600.7 | % | |||
| Income from bank owned life insurance | 9,076 | 8,645 | 431 | 5.0 | % | ||||||
| Electronic banking fees and charges | 2,357 | 1,759 | 598 | 34.0 | % | ||||||
| Other income | 3,356 | 6,252 | (2,896 | ) | -46.3 | % | |||||
| Total non-interest income | (1,993 | ) | 2,751 | (4,744 | ) | -172.4 | % | ||||
| Non-interest expense | |||||||||||
| Salaries and employee benefits | 69,220 | 75,589 | (6,369 | ) | -8.4 | % | |||||
| Net occupancy expense of premises | 11,033 | 12,036 | (1,003 | ) | -8.3 | % | |||||
| Equipment and systems | 15,223 | 14,577 | 646 | 4.4 | % | ||||||
| Advertising and marketing | 1,396 | 2,122 | (726 | ) | -34.2 | % | |||||
| Federal deposit insurance premium | 5,980 | 5,133 | 847 | 16.5 | % | ||||||
| Directors' compensation | 1,506 | 1,364 | 142 | 10.4 | % | ||||||
| Goodwill impairment | 97,370 | — | 97,370 | — | % | ||||||
| Other expense | 13,423 | 12,930 | 493 | 3.8 | % | ||||||
| Total non-interest expense | 215,151 | 123,751 | 91,400 | 73.9 | % | ||||||
| (Loss) income before income taxes | (80,776 | ) | 52,379 | (133,155 | ) | -254.2 | % | ||||
| Income taxes | 5,891 | 11,568 | (5,677 | ) | -49.1 | % | |||||
| Net (loss) income | $ | (86,667 | ) | $ | 40,811 | $ | (127,478 | ) | -312.4 | % | |
| Net (loss) income per common share (EPS) | |||||||||||
| Basic | $ | (1.39 | ) | $ | 0.63 | $ | (2.02 | ) | |||
| Diluted | $ | (1.39 | ) | $ | 0.63 | $ | (2.02 | ) | |||
| Dividends declared | |||||||||||
| Cash dividends declared per common share | $ | 0.44 | $ | 0.44 | $ | — | |||||
| Cash dividends declared | $ | 27,618 | $ | 28,651 | $ | (1,033 | ) | ||||
| Dividend payout ratio | (31.9)% | 70.2 | % | (102.1)% | |||||||
| Weighted average number of common shares outstanding | |||||||||||
| Basic | 62,444 | 64,804 | (2,360 | ) | |||||||
| Diluted | 62,444 | 64,804 | (2,360 | ) | |||||||
Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)
| Year Ended | |||||||||||
| (Dollars in Thousands) | June 30, 2024 | June 30, 2023 | Variance or Change | Variance or Change Pct. | |||||||
| Assets | |||||||||||
| Interest-earning assets: | |||||||||||
| Loans receivable, including loans held for sale | $ | 5,752,496 | $ | 5,827,123 | $ | (74,627 | ) | -1.3 | % | ||
| Taxable investment securities | 1,438,200 | 1,532,961 | (94,761 | ) | -6.2 | % | |||||
| Tax-exempt investment securities | 14,718 | 30,332 | (15,614 | ) | -51.5 | % | |||||
| Other interest-earning assets | 131,019 | 115,390 | 15,629 | 13.5 | % | ||||||
| Total interest-earning assets | 7,336,433 | 7,505,806 | (169,373 | ) | -2.3 | % | |||||
| Non-interest-earning assets | 541,859 | 563,131 | (21,272 | ) | -3.8 | % | |||||
| Total assets | $ | 7,878,292 | $ | 8,068,937 | $ | (190,645 | ) | -2.4 | % | ||
| Liabilities and Stockholders' Equity | |||||||||||
| Interest-bearing liabilities: | |||||||||||
| Deposits: | |||||||||||
| Interest-bearing demand | $ | 2,308,893 | $ | 2,349,802 | $ | (40,909 | ) | -1.7 | % | ||
| Savings | 662,981 | 896,651 | (233,670 | ) | -26.1 | % | |||||
| Certificates of deposit | 1,778,682 | 2,083,864 | (305,182 | ) | -14.6 | % | |||||
| Total interest-bearing deposits | 4,750,556 | 5,330,317 | (579,761 | ) | -10.9 | % | |||||
| Borrowings: | |||||||||||
| Federal Home Loan Bank Advances | 1,458,941 | 1,101,658 | 357,283 | 32.4 | % | ||||||
| Other borrowings | 184,768 | 57,468 | 127,300 | 221.5 | % | ||||||
| Total borrowings | 1,643,709 | 1,159,126 | 484,583 | 41.8 | % | ||||||
| Total interest-bearing liabilities | 6,394,265 | 6,489,443 | (95,178 | ) | -1.5 | % | |||||
| Non-interest-bearing liabilities: | |||||||||||
| Non-interest-bearing deposits | 595,266 | 644,543 | (49,277 | ) | -7.6 | % | |||||
| Other non-interest-bearing liabilities | 64,444 | 59,593 | 4,851 | 8.1 | % | ||||||
| Total non-interest-bearing liabilities | 659,710 | 704,136 | (44,426 | ) | -6.3 | % | |||||
| Total liabilities | 7,053,975 | 7,193,579 | (139,604 | ) | -1.9 | % | |||||
| Stockholders' equity | 824,317 | 875,358 | (51,041 | ) | -5.8 | % | |||||
| Total liabilities and stockholders' equity | $ | 7,878,292 | $ | 8,068,937 | $ | (190,645 | ) | -2.4 | % | ||
| Average interest-earning assets to average interest-bearing liabilities | 114.73 | % | 115.66 | % | (0.93)% | -0.8 | % | ||||
Kearny Financial Corp.
Performance Ratio Highlights
(Unaudited)
| Year Ended | ||||||
| June 30, 2024 | June 30, 2023 | Variance or Change | ||||
| Average yield on interest-earning assets: | ||||||
| Loans receivable, including loans held for sale | 4.45 | % | 4.00 | % | 0.45 | % |
| Taxable investment securities | 4.40 | % | 3.58 | % | 0.82 | % |
| Tax-exempt investment securities (1) | 2.28 | % | 2.29 | % | -0.01 | % |
| Other interest-earning assets | 7.03 | % | 4.36 | % | 2.67 | % |
| Total interest-earning assets | 4.48 | % | 3.91 | % | 0.57 | % |
| Average cost of interest-bearing liabilities: | ||||||
| Deposits: | ||||||
| Interest-bearing demand | 2.91 | % | 1.73 | % | 1.18 | % |
| Savings | 0.50 | % | 0.37 | % | 0.13 | % |
| Certificates of deposit | 2.92 | % | 1.64 | % | 1.28 | % |
| Total interest-bearing deposits | 2.58 | % | 1.47 | % | 1.11 | % |
| Borrowings: | ||||||
| Federal Home Loan Bank Advances | 3.70 | % | 3.43 | % | 0.27 | % |
| Other borrowings | 5.36 | % | 3.41 | % | 1.95 | % |
| Total borrowings | 3.89 | % | 3.42 | % | 0.47 | % |
| Total interest-bearing liabilities | 2.91 | % | 1.82 | % | 1.09 | % |
| Interest rate spread (2) | 1.57 | % | 2.09 | % | -0.52 | % |
| Net interest margin (3) | 1.94 | % | 2.34 | % | -0.40 | % |
| Non-interest income to average assets | (0.03)% | 0.03 | % | -0.06 | % | |
| Non-interest expense to average assets | 2.73 | % | 1.53 | % | 1.20 | % |
| Efficiency ratio (4) | 153.02 | % | 69.28 | % | 83.74 | % |
| Return on average assets | (1.10)% | 0.51 | % | -1.61 | % | |
| Return on average equity | (10.51)% | 4.66 | % | -15.17 | % | |
| Return on average tangible equity (5) | (13.64)% | 6.17 | % | -19.81 | % | |
_________________________
| (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) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | ||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||
| Assets | |||||||||||||||
| Cash and cash equivalents | $ | 63,864 | $ | 71,027 | $ | 73,860 | $ | 57,219 | $ | 70,515 | |||||
| Securities available for sale | 1,072,833 | 1,098,655 | 1,144,175 | 1,215,633 | 1,227,729 | ||||||||||
| Securities held to maturity | 135,742 | 139,643 | 141,959 | 143,730 | 146,465 | ||||||||||
| Loans held-for-sale | 6,036 | 4,117 | 14,030 | 3,934 | 9,591 | ||||||||||
| Loans receivable | 5,732,787 | 5,758,336 | 5,745,629 | 5,736,049 | 5,829,421 | ||||||||||
| Less: allowance for credit losses on loans | (44,939 | ) | (44,930 | ) | (44,867 | ) | (46,872 | ) | (48,734 | ) | |||||
| Net loans receivable | 5,687,848 | 5,713,406 | 5,700,762 | 5,689,177 | 5,780,687 | ||||||||||
| Premises and equipment | 44,940 | 45,053 | 45,928 | 46,868 | 48,309 | ||||||||||
| Federal Home Loan Bank stock | 80,300 | 81,347 | 83,372 | 81,509 | 71,734 | ||||||||||
| Accrued interest receivable | 29,521 | 31,065 | 30,258 | 29,766 | 28,133 | ||||||||||
| Goodwill | 113,525 | 210,895 | 210,895 | 210,895 | 210,895 | ||||||||||
| Core deposit intangible | 1,931 | 2,057 | 2,189 | 2,323 | 2,457 | ||||||||||
| Bank owned life insurance | 297,874 | 296,493 | 256,064 | 294,491 | 292,825 | ||||||||||
| Deferred income taxes, net | 50,339 | 47,225 | 46,116 | 56,500 | 51,973 | ||||||||||
| Other real estate owned | — | — | 11,982 | 12,956 | 12,956 | ||||||||||
| Other assets | 98,708 | 100,989 | 136,242 | 129,865 | 110,546 | ||||||||||
| Total assets | $ | 7,683,461 | $ | 7,841,972 | $ | 7,897,832 | $ | 7,974,866 | $ | 8,064,815 | |||||
| Liabilities | |||||||||||||||
| Deposits: | |||||||||||||||
| Non-interest-bearing | $ | 598,366 | $ | 586,089 | $ | 584,130 | $ | 595,141 | $ | 609,999 | |||||
| Interest-bearing | 4,559,757 | 4,622,961 | 4,735,500 | 4,839,027 | 5,019,184 | ||||||||||
| Total deposits | 5,158,123 | 5,209,050 | 5,319,630 | 5,434,168 | 5,629,183 | ||||||||||
| Borrowings | 1,709,789 | 1,722,178 | 1,667,055 | 1,626,933 | 1,506,812 | ||||||||||
| Advance payments by borrowers for taxes | 17,409 | 17,387 | 16,742 | 16,907 | 18,338 | ||||||||||
| Other liabilities | 44,569 | 44,279 | 46,427 | 47,324 | 41,198 | ||||||||||
| Total liabilities | 6,929,890 | 6,992,894 | 7,049,854 | 7,125,332 | 7,195,531 | ||||||||||
| Stockholders' Equity | |||||||||||||||
| Common stock | 644 | 644 | 645 | 652 | 659 | ||||||||||
| Paid-in capital | 493,680 | 493,187 | 493,297 | 497,269 | 503,332 | ||||||||||
| Retained earnings | 343,326 | 440,308 | 439,755 | 460,464 | 457,611 | ||||||||||
| Unearned ESOP shares | (20,916 | ) | (21,402 | ) | (21,889 | ) | (22,375 | ) | (22,862 | ) | |||||
| Accumulated other comprehensive loss | (63,163 | ) | (63,659 | ) | (63,830 | ) | (86,476 | ) | (69,456 | ) | |||||
| Total stockholders' equity | 753,571 | 849,078 | 847,978 | 849,534 | 869,284 | ||||||||||
| Total liabilities and stockholders' equity | $ | 7,683,461 | $ | 7,841,972 | $ | 7,897,832 | $ | 7,974,866 | $ | 8,064,815 | |||||
| Consolidated capital ratios | |||||||||||||||
| Equity to assets | 9.81 | % | 10.83 | % | 10.74 | % | 10.65 | % | 10.78 | % | |||||
| Tangible equity to tangible assets(1) | 8.43 | % | 8.34 | % | 8.26 | % | 8.20 | % | 8.35 | % | |||||
| Share data | |||||||||||||||
| Outstanding shares | 64,434 | 64,437 | 64,445 | 65,132 | 65,864 | ||||||||||
| Book value per share | $ | 11.70 | $ | 13.18 | $ | 13.16 | $ | 13.04 | $ | 13.20 | |||||
| Tangible book value per share(2) | $ | 9.90 | $ | 9.87 | $ | 9.85 | $ | 9.77 | $ | 9.96 | |||||
_________________________
| (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) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | ||||||||||
| Loan portfolio composition: | |||||||||||||||
| Commercial loans: | |||||||||||||||
| Multi-family mortgage | $ | 2,645,851 | $ | 2,645,195 | $ | 2,651,274 | $ | 2,699,151 | $ | 2,761,775 | |||||
| Nonresidential mortgage | 948,075 | 965,539 | 947,287 | 946,801 | 968,574 | ||||||||||
| Commercial business | 142,747 | 147,326 | 144,134 | 149,229 | 146,861 | ||||||||||
| Construction | 209,237 | 229,457 | 221,933 | 230,703 | 226,609 | ||||||||||
| Total commercial loans | 3,945,910 | 3,987,517 | 3,964,628 | 4,025,884 | 4,103,819 | ||||||||||
| One- to four-family residential mortgage | 1,756,051 | 1,741,644 | 1,746,065 | 1,689,051 | 1,700,559 | ||||||||||
| Consumer loans: | |||||||||||||||
| Home equity loans | 44,104 | 42,731 | 43,517 | 42,896 | 43,549 | ||||||||||
| Other consumer | 2,685 | 3,198 | 2,728 | 2,644 | 2,549 | ||||||||||
| Total consumer loans | 46,789 | 45,929 | 46,245 | 45,540 | 46,098 | ||||||||||
| Total loans, excluding yield adjustments | 5,748,750 | 5,775,090 | 5,756,938 | 5,760,475 | 5,850,476 | ||||||||||
| Unaccreted yield adjustments | (15,963 | ) | (16,754 | ) | (11,309 | ) | (24,426 | ) | (21,055 | ) | |||||
| Loans receivable, net of yield adjustments | 5,732,787 | 5,758,336 | 5,745,629 | 5,736,049 | 5,829,421 | ||||||||||
| Less: allowance for credit losses on loans | (44,939 | ) | (44,930 | ) | (44,867 | ) | (46,872 | ) | (48,734 | ) | |||||
| Net loans receivable | $ | 5,687,848 | $ | 5,713,406 | $ | 5,700,762 | $ | 5,689,177 | $ | 5,780,687 | |||||
| Asset quality: | |||||||||||||||
| Nonperforming assets: | |||||||||||||||
| Accruing loans - 90 days and over past due | $ | — | $ | — | $ | — | $ | — | $ | — | |||||
| Nonaccrual loans | 39,882 | 39,546 | 28,089 | 37,912 | 42,627 | ||||||||||
| Total nonperforming loans | 39,882 | 39,546 | 28,089 | 37,912 | 42,627 | ||||||||||
| Nonaccrual loans held-for-sale | — | — | 9,700 | — | — | ||||||||||
| Other real estate owned | — | — | 11,982 | 12,956 | 12,956 | ||||||||||
| Total nonperforming assets | $ | 39,882 | $ | 39,546 | $ | 49,771 | $ | 50,868 | $ | 55,583 | |||||
| Nonperforming loans (% total loans) | 0.70 | % | 0.69 | % | 0.49 | % | 0.66 | % | 0.73 | % | |||||
| Nonperforming assets (% total assets) | 0.52 | % | 0.50 | % | 0.63 | % | 0.64 | % | 0.69 | % | |||||
| Classified loans | $ | 118,700 | $ | 115,772 | $ | 94,676 | $ | 98,616 | $ | 93,526 | |||||
| Allowance for credit losses on loans (ACL): | |||||||||||||||
| ACL to total loans | 0.78 | % | 0.78 | % | 0.78 | % | 0.81 | % | 0.83 | % | |||||
| ACL to nonperforming loans | 112.68 | % | 113.61 | % | 159.73 | % | 123.63 | % | 114.33 | % | |||||
| Net charge-offs | $ | 3,518 | $ | 286 | $ | 4,110 | $ | 2,107 | $ | 82 | |||||
| Average net charge-off rate (annualized) | 0.25 | % | 0.02 | % | 0.29 | % | 0.15 | % | 0.01 | % | |||||
Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)
| (Dollars in Thousands) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | ||||||||||
| Funding composition: | |||||||||||||||
| Deposits: | |||||||||||||||
| Non-interest-bearing deposits | $ | 598,367 | $ | 586,089 | $ | 584,130 | $ | 595,141 | $ | 609,999 | |||||
| Interest-bearing demand | 2,308,915 | 2,349,032 | 2,347,262 | 2,236,573 | 2,252,912 | ||||||||||
| Savings | 643,481 | 630,456 | 646,182 | 689,163 | 748,721 | ||||||||||
| Certificates of deposit (retail) | 1,199,127 | 1,235,261 | 1,283,676 | 1,300,382 | 1,377,028 | ||||||||||
| Certificates of deposit (brokered and listing service) | 408,234 | 408,212 | 458,380 | 612,909 | 640,523 | ||||||||||
| Interest-bearing deposits | 4,559,757 | 4,622,961 | 4,735,500 | 4,839,027 | 5,019,184 | ||||||||||
| Total deposits | 5,158,124 | 5,209,050 | 5,319,630 | 5,434,168 | 5,629,183 | ||||||||||
| Borrowings: | |||||||||||||||
| Federal Home Loan Bank advances | 1,534,789 | 1,457,178 | 1,432,055 | 1,456,933 | 1,281,812 | ||||||||||
| Overnight borrowings | 175,000 | 265,000 | 235,000 | 170,000 | 225,000 | ||||||||||
| Total borrowings | 1,709,789 | 1,722,178 | 1,667,055 | 1,626,933 | 1,506,812 | ||||||||||
| Total funding | $ | 6,867,913 | $ | 6,931,228 | $ | 6,986,685 | $ | 7,061,101 | $ | 7,135,995 | |||||
| Loans as a % of deposits | 110.4 | % | 109.8 | % | 107.4 | % | 104.8 | % | 102.9 | % | |||||
| Deposits as a % of total funding | 75.1 | % | 75.2 | % | 76.1 | % | 77.0 | % | 78.9 | % | |||||
| Borrowings as a % of total funding | 24.9 | % | 24.8 | % | 23.9 | % | 23.0 | % | 21.1 | % | |||||
| Uninsured deposits: | |||||||||||||||
| Uninsured deposits (reported)(1) | $ | 1,772,623 | $ | 1,760,740 | $ | 1,813,122 | $ | 1,734,288 | $ | 1,771,416 | |||||
| Uninsured deposits (adjusted)(2) | $ | 764,447 | $ | 718,026 | $ | 694,510 | $ | 683,265 | $ | 710,377 | |||||
_________________________
| (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) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | ||||||||||
| Interest income | |||||||||||||||
| Loans | $ | 65,819 | $ | 64,035 | $ | 63,384 | $ | 62,769 | $ | 62,044 | |||||
| Taxable investment securities | 14,802 | 15,490 | 16,756 | 16,265 | 15,736 | ||||||||||
| Tax-exempt investment securities | 80 | 85 | 84 | 87 | 91 | ||||||||||
| Other interest-earning assets | 2,289 | 2,475 | 2,401 | 2,047 | 1,821 | ||||||||||
| Total interest income | 82,990 | 82,085 | 82,625 | 81,168 | 79,692 | ||||||||||
| Interest expense | |||||||||||||||
| Deposits | 32,187 | 32,320 | 30,340 | 27,567 | 26,226 | ||||||||||
| Borrowings | 17,527 | 15,446 | 16,446 | 14,441 | 13,286 | ||||||||||
| Total interest expense | 49,714 | 47,766 | 46,786 | 42,008 | 39,512 | ||||||||||
| Net interest income | 33,276 | 34,319 | 35,839 | 39,160 | 40,180 | ||||||||||
| Provision for (reversal of) credit losses | 3,527 | 349 | 2,105 | 245 | (306 | ) | |||||||||
| Net interest income after provision for (reversal of) credit losses | 29,749 | 33,970 | 33,734 | 38,915 | 40,486 | ||||||||||
| Non-interest income | |||||||||||||||
| Fees and service charges | 580 | 657 | 624 | 748 | 699 | ||||||||||
| Loss on sale and call of securities | — | — | (18,135 | ) | — | — | |||||||||
| Gain (loss) on sale of loans | 111 | (712 | ) | 104 | 215 | 199 | |||||||||
| Loss on sale of other real estate owned | — | — | (974 | ) | — | (139 | ) | ||||||||
| Income from bank owned life insurance | 3,209 | 3,039 | 1,162 | 1,666 | 1,605 | ||||||||||
| Electronic banking fees and charges | 1,130 | 464 | 396 | 367 | 399 | ||||||||||
| Other income | 776 | 755 | 811 | 1,014 | 903 | ||||||||||
| Total non-interest income | 5,806 | 4,203 | (16,012 | ) | 4,010 | 3,666 | |||||||||
| Non-interest expense | |||||||||||||||
| Salaries and employee benefits | 17,266 | 16,911 | 17,282 | 17,761 | 17,315 | ||||||||||
| Net occupancy expense of premises | 2,738 | 2,863 | 2,674 | 2,758 | 2,862 | ||||||||||
| Equipment and systems | 3,785 | 3,823 | 3,814 | 3,801 | 3,511 | ||||||||||
| Advertising and marketing | 480 | 387 | 301 | 228 | 231 | ||||||||||
| Federal deposit insurance premium | 1,532 | 1,429 | 1,495 | 1,524 | 1,455 | ||||||||||
| Directors' compensation | 360 | 360 | 393 | 393 | 345 | ||||||||||
| Goodwill impairment | 97,370 | — | — | — | — | ||||||||||
| Other expense | 3,020 | 3,286 | 3,808 | 3,309 | 3,042 | ||||||||||
| Total non-interest expense | 126,551 | 29,059 | 29,767 | 29,774 | 28,761 | ||||||||||
| (Loss) income before income taxes | (90,996 | ) | 9,114 | (12,045 | ) | 13,151 | 15,391 | ||||||||
| Income taxes | (917 | ) | 1,717 | 1,782 | 3,309 | 3,378 | |||||||||
| Net (loss) income | $ | (90,079 | ) | $ | 7,397 | $ | (13,827 | ) | $ | 9,842 | $ | 12,013 | |||
| Net (loss) income per common share (EPS) | |||||||||||||||
| Basic | $ | (1.45 | ) | $ | 0.12 | $ | (0.22 | ) | $ | 0.16 | $ | 0.19 | |||
| Diluted | $ | (1.45 | ) | $ | 0.12 | $ | (0.22 | ) | $ | 0.16 | $ | 0.19 | |||
| Dividends declared | |||||||||||||||
| Cash dividends declared per common share | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.11 | |||||
| Cash dividends declared | $ | 6,903 | $ | 6,844 | $ | 6,882 | $ | 6,989 | $ | 7,007 | |||||
| Dividend payout ratio | -7.7 | % | 92.5 | % | -49.8 | % | 71.0 | % | 58.3 | % | |||||
| Weighted average number of common shares outstanding | |||||||||||||||
| Basic | 62,254 | 62,205 | 62,299 | 63,014 | 63,667 | ||||||||||
| Diluted | 62,254 | 62,211 | 62,299 | 63,061 | 63,667 | ||||||||||
Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)
| Three Months Ended | |||||||||||||||
| (Dollars in Thousands) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | ||||||||||
| Assets | |||||||||||||||
| Interest-earning assets: | |||||||||||||||
| Loans receivable, including loans held-for-sale | $ | 5,743,008 | $ | 5,752,477 | $ | 5,726,321 | $ | 5,788,074 | $ | 5,932,541 | |||||
| Taxable investment securities | 1,343,541 | 1,382,064 | 1,509,165 | 1,516,393 | 1,529,582 | ||||||||||
| Tax-exempt investment securities | 13,737 | 14,614 | 15,025 | 15,483 | 16,346 | ||||||||||
| Other interest-earning assets | 128,257 | 125,155 | 139,740 | 130,829 | 128,158 | ||||||||||
| Total interest-earning assets | 7,228,543 | 7,274,310 | 7,390,251 | 7,450,779 | 7,606,627 | ||||||||||
| Non-interest-earning assets | 466,537 | 577,411 | 554,335 | 568,723 | 556,962 | ||||||||||
| Total assets | $ | 7,695,080 | $ | 7,851,721 | $ | 7,944,586 | $ | 8,019,502 | $ | 8,163,589 | |||||
| Liabilities and Stockholders' Equity | |||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||
| Deposits: | |||||||||||||||
| Interest-bearing demand | $ | 2,310,521 | $ | 2,378,831 | $ | 2,301,169 | $ | 2,245,831 | $ | 2,321,120 | |||||
| Savings | 631,622 | 635,226 | 664,926 | 719,508 | 774,854 | ||||||||||
| Certificates of deposit | 1,613,798 | 1,705,513 | 1,824,316 | 1,968,512 | 2,057,818 | ||||||||||
| Total interest-bearing deposits | 4,555,941 | 4,719,570 | 4,790,411 | 4,933,851 | 5,153,792 | ||||||||||
| Borrowings: | |||||||||||||||
| Federal Home Loan Bank advances | 1,507,192 | 1,428,801 | 1,513,497 | 1,386,473 | 1,374,316 | ||||||||||
| Other borrowings | 228,461 | 210,989 | 142,283 | 158,098 | 100,055 | ||||||||||
| Total borrowings | 1,735,653 | 1,639,790 | 1,655,780 | 1,544,571 | 1,474,371 | ||||||||||
| Total interest-bearing liabilities | 6,291,594 | 6,359,360 | 6,446,191 | 6,478,422 | 6,628,163 | ||||||||||
| Non-interest-bearing liabilities: | |||||||||||||||
| Non-interest-bearing deposits | 589,438 | 581,870 | 597,294 | 612,251 | 608,765 | ||||||||||
| Other non-interest-bearing liabilities | 62,978 | 65,709 | 62,387 | 66,701 | 64,970 | ||||||||||
| Total non-interest-bearing liabilities | 652,416 | 647,579 | 659,681 | 678,952 | 673,735 | ||||||||||
| Total liabilities | 6,944,010 | 7,006,939 | 7,105,872 | 7,157,374 | 7,301,898 | ||||||||||
| Stockholders' equity | 751,070 | 844,782 | 838,714 | 862,128 | 861,691 | ||||||||||
| Total liabilities and stockholders' equity | $ | 7,695,080 | $ | 7,851,721 | $ | 7,944,586 | $ | 8,019,502 | $ | 8,163,589 | |||||
| Average interest-earning assets to average interest-bearing liabilities | 114.89 | % | 114.39 | % | 114.65 | % | 115.01 | % | 114.76 | % | |||||
Kearny Financial Corp.
Performance Ratio Highlights
| Three Months Ended | ||||||||||
| June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | ||||||
| Average yield on interest-earning assets: | ||||||||||
| Loans receivable, including loans held-for-sale | 4.58 | % | 4.45 | % | 4.43 | % | 4.34 | % | 4.18 | % |
| Taxable investment securities | 4.41 | % | 4.48 | % | 4.44 | % | 4.29 | % | 4.12 | % |
| Tax-exempt investment securities (1) | 2.32 | % | 2.32 | % | 2.25 | % | 2.25 | % | 2.23 | % |
| Other interest-earning assets | 7.14 | % | 7.91 | % | 6.87 | % | 6.26 | % | 5.68 | % |
| Total interest-earning assets | 4.59 | % | 4.51 | % | 4.47 | % | 4.36 | % | 4.19 | % |
| Average cost of interest-bearing liabilities: | ||||||||||
| Deposits: | ||||||||||
| Interest-bearing demand | 3.06 | % | 3.08 | % | 2.91 | % | 2.58 | % | 2.38 | % |
| Savings | 0.63 | % | 0.46 | % | 0.44 | % | 0.47 | % | 0.48 | % |
| Certificates of deposit | 3.35 | % | 3.11 | % | 2.82 | % | 2.49 | % | 2.24 | % |
| Total interest-bearing deposits | 2.83 | % | 2.74 | % | 2.53 | % | 2.23 | % | 2.04 | % |
| Borrowings: | ||||||||||
| Federal Home Loan Bank advances | 3.86 | % | 3.55 | % | 3.82 | % | 3.54 | % | 3.51 | % |
| Other borrowings | 5.24 | % | 5.22 | % | 5.65 | % | 5.46 | % | 4.89 | % |
| Total borrowings | 4.04 | % | 3.77 | % | 3.97 | % | 3.74 | % | 3.60 | % |
| Total interest-bearing liabilities | 3.16 | % | 3.00 | % | 2.90 | % | 2.59 | % | 2.38 | % |
| Interest rate spread (2) | 1.43 | % | 1.51 | % | 1.57 | % | 1.77 | % | 1.81 | % |
| Net interest margin (3) | 1.84 | % | 1.89 | % | 1.94 | % | 2.10 | % | 2.11 | % |
| Non-interest income to average assets (annualized) | 0.30 | % | 0.21 | % | -0.81 | % | 0.20 | % | 0.18 | % |
| Non-interest expense to average assets (annualized) | 6.58 | % | 1.48 | % | 1.50 | % | 1.49 | % | 1.41 | % |
| Efficiency ratio (4) | 323.81 | % | 75.43 | % | 150.13 | % | 68.97 | % | 65.60 | % |
| Return on average assets (annualized) | -4.68 | % | 0.38 | % | -0.70 | % | 0.49 | % | 0.59 | % |
| Return on average equity (annualized) | -47.97 | % | 3.50 | % | -6.59 | % | 4.57 | % | 5.58 | % |
| Return on average tangible equity (annualized) (5) | -56.69 | % | 4.68 | % | -8.84 | % | 6.07 | % | 7.41 | % |
_________________________
| (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) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | ||||||||||
| Adjusted net income: | |||||||||||||||
| Net (loss) income (GAAP) | $ | (90,079 | ) | $ | 7,397 | $ | (13,827 | ) | $ | 9,842 | $ | 12,013 | |||
| 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 | $ | 5,596 | $ | 7,397 | $ | 5,335 | $ | 9,842 | $ | 12,013 | |||||
| Calculation of pre-tax, pre-provision net revenue: | |||||||||||||||
| Net (loss) income (GAAP) | $ | (90,079 | ) | $ | 7,397 | $ | (13,827 | ) | $ | 9,842 | $ | 12,013 | |||
| Adjustments to net income (GAAP): | |||||||||||||||
| Provision for income taxes | (917 | ) | 1,717 | 1,782 | 3,309 | 3,378 | |||||||||
| Provision for (reversal of) credit losses | 3,527 | 349 | 2,105 | 245 | (306 | ) | |||||||||
| Pre-tax, pre-provision net revenue (non-GAAP) | $ | (87,469 | ) | $ | 9,463 | $ | (9,940 | ) | $ | 13,396 | $ | 15,085 | |||
| Adjusted earnings per share: | |||||||||||||||
| Weighted average common shares - basic | 62,254 | 62,205 | 62,299 | 63,014 | 63,667 | ||||||||||
| Weighted average common shares - diluted | 62,330 | 62,211 | 62,367 | 63,061 | 63,667 | ||||||||||
| Earnings per share - basic (GAAP) | $ | (1.45 | ) | $ | 0.12 | $ | (0.22 | ) | $ | 0.16 | $ | 0.19 | |||
| Earnings per share - diluted (GAAP) | $ | (1.45 | ) | $ | 0.12 | $ | (0.22 | ) | $ | 0.16 | $ | 0.19 | |||
| Adjusted earnings per share - basic (non-GAAP) | $ | 0.09 | $ | 0.12 | $ | 0.09 | $ | 0.16 | $ | 0.19 | |||||
| Adjusted earnings per share - diluted (non-GAAP) | $ | 0.09 | $ | 0.12 | $ | 0.09 | $ | 0.16 | $ | 0.19 | |||||
| Pre-tax, pre-provision net revenue per share: | |||||||||||||||
| Pre-tax, pre-provision net revenue per share - basic (non-GAAP) | $ | (1.41 | ) | $ | 0.15 | $ | (0.16 | ) | $ | 0.21 | $ | 0.24 | |||
| Pre-tax, pre-provision net revenue per share - diluted (non-GAAP) | $ | (1.41 | ) | $ | 0.15 | $ | (0.16 | ) | $ | 0.21 | $ | 0.24 | |||
| Adjusted return on average assets: | |||||||||||||||
| Total average assets | $ | 7,695,080 | $ | 7,851,721 | $ | 7,944,586 | $ | 8,019,502 | $ | 8,163,589 | |||||
| Return on average assets (GAAP) | -4.68 | % | 0.38 | % | -0.70 | % | 0.49 | % | 0.59 | % | |||||
| Adjusted return on average assets (non-GAAP) | 0.29 | % | 0.38 | % | 0.27 | % | 0.49 | % | 0.59 | % | |||||
| Adjusted return on average equity: | |||||||||||||||
| Total average equity | $ | 751,070 | $ | 844,782 | $ | 838,714 | $ | 862,128 | $ | 861,691 | |||||
| Return on average equity (GAAP) | -47.97 | % | 3.50 | % | -6.59 | % | 4.57 | % | 5.58 | % | |||||
| Adjusted return on average equity (non-GAAP) | 2.98 | % | 3.50 | % | 2.54 | % | 4.57 | % | 5.58 | % | |||||
Kearny Financial Corp.
Reconciliation of GAAP to Non-GAAP
(Unaudited)
| Three Months Ended | |||||||||||||||
| (Dollars and Shares in Thousands, Except Per Share Data) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | ||||||||||
| Adjusted return on average tangible equity: | |||||||||||||||
| Total average equity | $ | 751,070 | $ | 844,782 | $ | 838,714 | $ | 862,128 | $ | 861,691 | |||||
| Less: average goodwill | (113,525 | ) | (210,895 | ) | (210,895 | ) | (210,895 | ) | (210,895 | ) | |||||
| Less: average other intangible assets | (2,006 | ) | (2,138 | ) | (2,277 | ) | (2,411 | ) | (2,544 | ) | |||||
| Total average tangible equity | $ | 635,539 | $ | 631,749 | $ | 625,542 | $ | 648,822 | $ | 648,252 | |||||
| Return on average tangible equity (non-GAAP) | -56.69 | % | 4.68 | % | -8.84 | % | 6.07 | % | 7.41 | % | |||||
| Adjusted return on average tangible equity (non-GAAP) | 3.52 | % | 4.68 | % | 3.41 | % | 6.07 | % | 7.41 | % | |||||
| Adjusted non-interest expense ratio: | |||||||||||||||
| Non-interest expense (GAAP) | $ | 126,551 | $ | 29,059 | $ | 29,767 | $ | 29,774 | $ | 28,761 | |||||
| Non-recurring transactions: | |||||||||||||||
| Goodwill impairment | (97,370 | ) | — | — | — | — | |||||||||
| Non-interest expense (non-GAAP) | $ | 29,181 | $ | 29,059 | $ | 29,767 | $ | 29,774 | $ | 28,761 | |||||
| Non-interest expense ratio (GAAP) | 6.58 | % | 1.48 | % | 1.50 | % | 1.49 | % | 1.41 | % | |||||
| Adjusted non-interest expense ratio (non-GAAP) | 1.52 | % | 1.48 | % | 1.50 | % | 1.49 | % | 1.41 | % | |||||
| Adjusted efficiency ratio: | |||||||||||||||
| Non-interest expense (non-GAAP) | $ | 29,181 | $ | 29,059 | $ | 29,767 | $ | 29,774 | $ | 28,761 | |||||
| Net interest income (GAAP) | $ | 33,276 | $ | 34,319 | $ | 35,839 | $ | 39,160 | $ | 40,180 | |||||
| Total non-interest income (GAAP) | 5,806 | 4,203 | (16,012 | ) | 4,010 | 3,666 | |||||||||
| 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) | $ | 39,474 | $ | 38,522 | $ | 38,535 | $ | 43,170 | $ | 43,846 | |||||
| Efficiency ratio (GAAP) | 323.81 | % | 75.43 | % | 150.13 | % | 68.97 | % | 65.60 | % | |||||
| Adjusted efficiency ratio (non-GAAP) | 73.92 | % | 75.43 | % | 77.25 | % | 68.97 | % | 65.60 | % | |||||
Kearny Financial Corp.
Reconciliation of GAAP to Non-GAAP
(Unaudited)
| Year Ended | |||||||
| (Dollars and Shares in Thousands, Except Per Share Data) | June 30, 2024 | June 30, 2023 | |||||
| Adjusted net income: | |||||||
| Net (loss) income (GAAP) | $ | (86,667 | ) | $ | 40,811 | ||
| Non-recurring transactions - net of tax: | |||||||
| Branch consolidation expenses and impairment charges | — | 568 | |||||
| Net effect of sale and call of securities | 12,876 | 10,811 | |||||
| Net effect of sale of other assets | — | (2,081 | ) | ||||
| Severance expense from workforce realignment | — | 538 | |||||
| Net effect of bank-owned life insurance contract restructure | 6,678 | — | |||||
| Goodwill impairment | 95,283 | — | |||||
| Adjusted net income | $ | 28,170 | $ | 50,647 | |||
| Calculation of pre-tax, pre-provision net revenue: | |||||||
| Net (loss) income (GAAP) | (86,667 | ) | 40,811 | ||||
| Adjustments to net income (GAAP): | |||||||
| Provision for income taxes | $ | 5,891 | $ | 11,568 | |||
| Provision for (reversal of) credit losses | 6,226 | 2,486 | |||||
| Pre-tax, pre-provision net revenue (non-GAAP) | (74,550 | ) | 54,865 | ||||
| Adjusted earnings per share: | |||||||
| Weighted average common shares - basic | 62,444 | 64,804 | |||||
| Weighted average common shares - diluted | 62,444 | 64,804 | |||||
| Earnings per share - basic (GAAP) | $ | (1.39 | ) | $ | 0.63 | ||
| Earnings per share - diluted (GAAP) | $ | (1.39 | ) | $ | 0.63 | ||
| Adjusted earnings per share - basic (non-GAAP) | $ | 0.45 | $ | 0.78 | |||
| Adjusted earnings per share - diluted (non-GAAP) | $ | 0.45 | $ | 0.78 | |||
| Pre-tax, pre-provision net revenue per share: | |||||||
| Pre-tax, pre-provision net revenue per share - basic (non-GAAP) | $ | (1.19 | ) | $ | 0.85 | ||
| Pre-tax, pre-provision net revenue per share - diluted (non-GAAP) | $ | (1.19 | ) | $ | 0.85 | ||
| Adjusted return on average assets: | |||||||
| Total average assets | $ | 7,878,292 | $ | 8,068,937 | |||
| Return on average assets (GAAP) | -1.10 | % | 0.51 | % | |||
| Adjusted return on average assets (non-GAAP) | 0.36 | % | 0.63 | % | |||
| Adjusted return on average equity: | |||||||
| Total average equity | $ | 824,317 | $ | 875,358 | |||
| Return on average equity (GAAP) | -10.51 | % | 4.66 | % | |||
| Adjusted return on average equity (non-GAAP) | 3.42 | % | 5.79 | % | |||
| Adjusted return on average tangible equity: | |||||||
| Total average equity | $ | 824,317 | $ | 875,358 | |||
| Less: average goodwill | (186,685 | ) | (210,895 | ) | |||
| Less: average other intangible assets | (2,209 | ) | (2,757 | ) | |||
| Total average tangible equity | $ | 635,423 | $ | 661,706 | |||
| Return on average tangible equity (non-GAAP) | -13.64 | % | 6.17 | % | |||
| Adjusted return on average tangible equity (non-GAAP) | 4.43 | % | 7.65 | % | |||
Kearny Financial Corp.
Reconciliation of GAAP to Non-GAAP
(Unaudited)
| Year Ended | |||||||
| (Dollars in Thousands) | June 30, 2024 | June 30, 2023 | |||||
| Adjusted non-interest expense ratio: | |||||||
| Non-interest expense (GAAP) | $ | 215,151 | $ | 123,751 | |||
| Non-routine transactions: | |||||||
| Branch consolidation expenses and impairment charges | — | (800 | ) | ||||
| Severance expense from workforce realignment | — | (757 | ) | ||||
| Goodwill impairment | (97,370 | ) | — | ||||
| Non-interest expense (non-GAAP) | $ | 117,781 | $ | 122,194 | |||
| Non-interest expense ratio (GAAP) | 2.73 | % | 1.53 | % | |||
| Adjusted non-interest expense ratio (non-GAAP) | 1.50 | % | 1.51 | % | |||
| Adjusted efficiency ratio: | |||||||
| Non-interest expense (non-GAAP) | $ | 117,781 | $ | 122,194 | |||
| Net interest income (GAAP) | $ | 142,594 | $ | 175,865 | |||
| Total non-interest income (GAAP) | (1,993 | ) | 2,751 | ||||
| Non-routine transactions: | |||||||
| Net effect of sale and call of securities | 18,135 | 15,227 | |||||
| Net effect of sale of other assets | — | (2,931 | ) | ||||
| Net effect of bank-owned life insurance contract restructure | 965 | — | |||||
| Total revenue (non-GAAP) | $ | 159,701 | $ | 190,912 | |||
| Efficiency ratio (GAAP) | 153.02 | % | 69.28 | % | |||
| Adjusted efficiency ratio (non-GAAP) | 73.75 | % | 64.01 | % | |||
FAQ
What was Kearny Financial Corp's (KRNY) net income for Q4 2024?
Kearny Financial Corp reported a GAAP net loss of $90.1 million for Q4 2024, primarily due to a $95.3 million non-cash goodwill impairment. Adjusted net income, excluding the impairment, was $5.6 million or $0.09 per diluted share.
Did Kearny Financial Corp (KRNY) declare a dividend for Q4 2024?
Yes, Kearny Financial Corp declared a quarterly cash dividend of $0.11 per share, payable on August 26, 2024, to stockholders of record as of August 12, 2024.
How did Kearny Financial Corp's (KRNY) deposits change in Q4 2024?
Kearny Financial Corp's deposits were $5.16 billion at June 30, 2024, representing a decrease of $50.9 million or 1.0% from March 31, 2024, and a decrease of $471.1 million or 8.4% from June 30, 2023.
What was Kearny Financial Corp's (KRNY) net interest margin for Q4 2024?
Kearny Financial Corp's net interest margin contracted five basis points to 1.84% for the quarter ended June 30, 2024.
Kearny Financial Corporation
NASDAQ:KRNY
KRNY Rankings
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535.12M
56.48M
12.12%
63.2%
0.61%
Banks - Regional
Savings Institution, Federally Chartered
United States of America
FAIRFIELD