Kearny Financial Corp. Announces Third Quarter Fiscal 2024 Results and Declaration of Cash Dividend
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Kearny Financial Corp. reported net income of $7.4 million for Q3 of fiscal 2024, with a declared cash dividend of $0.11 per share. The company focuses on prudent risk management and maintains a well-diversified loan portfolio. Total assets decreased slightly to $7.84 billion, with an increase in loans receivable but a decrease in deposits. Net interest margin contracted to 1.89%, while non-interest income saw a significant increase. Non-interest expenses decreased, and asset quality improved with a decrease in non-performing assets. Book value per share and tangible book value per share both increased.
Kearny Financial Corp. ha riportato un reddito netto di $7,4 milioni per il terzo trimestre dell'anno fiscale 2024, annunciando un dividendo in contanti di $0,11 per azione. La compagnia si concentra sulla gestione prudente del rischio e mantiene un portafoglio di prestiti ben diversificato. Gli asset totali hanno registrato una leggera diminuzione, arrivando a $7,84 miliardi, con un aumento dei prestiti concedibili ma una diminuzione dei depositi. Il margine di interesse netto si è ridotto all'1,89%, mentre i ricavi da attività non finanziarie hanno visto un significativo incremento. Le spese non finanziarie sono diminuite e la qualità degli asset è migliorata con una riduzione delle attività non performanti. Il valore contabile per azione e il valore contabile tangibile per azione sono entrambi aumentati.
Kearny Financial Corp. reportó un ingreso neto de $7,4 millones para el tercer trimestre del año fiscal 2024, con un dividendo en efectivo declarado de $0,11 por acción. La empresa se enfoca en la gestión prudente del riesgo y mantiene un portafolio de préstamos bien diversificado. Los activos totales disminuyeron ligeramente a $7,84 mil millones, con un aumento en los préstamos por cobrar pero una disminución en los depósitos. El margen de interés neto se redujo al 1,89%, mientras que los ingresos por actividades no financieras experimentaron un aumento significativo. Los gastos no financieros disminuyeron y la calidad de los activos mejoró con una disminución en los activos no productivos. El valor en libros por acción y el valor en libros tangible por acción ambos aumentaron.
Kearny Financial Corp.는 2024회계연도 3분기에 740만 달러의 순이익을 보고하였으며, 주당 0.11달러의 현금 배당을 선언하였습니다. 이 회사는 신중한 위험 관리에 중점을 두고 있으며 잘 다양화된 대출 포트폴리오를 유지하고 있습니다. 총 자산은 소폭 감소하여 78억 4천만 달러이며, 대출 금액은 증가하였지만 예금은 감소하였습니다. 순이자 마진은 1.89%로 축소되었고, 비이자 소득은 크게 증가하였습니다. 비이자 비용은 감소하였고 자산의 품질은 비수행 자산의 감소로 인해 개선되었습니다. 주당 장부가치와 실질 장부가치는 모두 증가하였습니다.
Kearny Financial Corp. a rapporté un revenu net de 7,4 millions de dollars pour le troisième trimestre de l'exercice 2024, avec un dividende en espèces déclaré de 0,11 $ par action. L'entreprise se concentre sur une gestion prudente des risques et maintient un portefeuille de prêts bien diversifié. Les actifs totaux ont légèrement diminué à 7,84 milliards de dollars, avec une augmentation des prêts recevables mais une baisse des dépôts. La marge d'intérêt nette a rétréci à 1,89 %, tandis que les revenus non-intérêts ont vu une augmentation significative. Les dépenses non-intérêts ont diminué, et la qualité des actifs s'est améliorée avec une réduction des actifs non performants. La valeur comptable par action et la valeur comptable tangible par action ont toutes deux augmenté.
Kearny Financial Corp. berichtete einen Nettoeinkommen von 7,4 Millionen Dollar für das dritte Quartal des Geschäftsjahres 2024, mit einer angekündigten Bar-Dividende von 0,11 Dollar pro Aktie. Das Unternehmen konzentriert sich auf eine umsichtige Risikomanagement und hält ein gut diversifiziertes Kreditportfolio vor. Die Gesamtaktiva sanken leicht auf 7,84 Milliarden Dollar, bei einer Zunahme der Darlehensforderungen, jedoch einem Rückgang bei den Einlagen. Die Nettozinsmarge verengte sich auf 1,89%, während das Nicht-Zinseinkommen signifikant stieg. Die Nicht-Zinskosten sanken, und die Vermögensqualität verbesserte sich mit einem Rückgang der nicht leistenden Vermögenswerten. Der Buchwert pro Aktie sowie der greifbare Buchwert pro Aktie stiegen beide an.
Positive
- Net income for Q3 of fiscal 2024 was $7.4 million
- Declared a cash dividend of $0.11 per share
- Focuses on prudent risk management and maintains a well-diversified loan portfolio
- Total assets were $7.84 billion, with an increase in loans receivable and a decrease in deposits
- Net interest margin contracted to 1.89%
- Significant increase in non-interest income
- Non-interest expenses decreased
- Improvement in asset quality with a decrease in non-performing assets
- Book value per share and tangible book value per share both increased
Negative
- None.
Insights
Kearny Financial Corp's reported net income of $7.4 million represents a significant positive shift from the previous quarter's net loss of $13.8 million . It's essential to consider that the prior loss included non-recurring items, making the comparison somewhat nuanced. The increase in net income is a strong indicator of the company's ability to rebound from adverse conditions. Furthermore, the declaration of a $0.11 per share cash dividend suggests confidence in ongoing financial stability and a commitment to shareholder returns. Investors should note the management's emphasis on conservative risk management, which could signal a cautious approach that may appeal to those seeking stability, especially amidst market uncertainty regarding commercial real estate lending.
The CEO's remarks on the commercial real estate lending environment and the bank's well-diversified loan portfolio are noteworthy. The bank's low loan-to-value ratios and low vacancy rates indicate a conservative lending strategy, which is particularly pertinent given speculative media statements about the sector. A Common Equity Tier 1 capital ratio of 14.7% is well above the regulatory minimum, suggesting a strong buffer against potential loan losses. This could be reassuring for investors concerned about the exposure to the often-volatile commercial real estate market.
The decrease in total assets and investment securities combined with a modest increase in loans receivable indicates a shift in asset allocation. This may reflect a strategic response to the current interest rate environment and its impact on net interest margins, which contracted 5 basis points this period. A quarterly increase in bank-owned life insurance of 15.8% due to a restructuring is a notable development, potentially affecting the company's long-term investment income. The increase in non-interest income, with the inclusion of a significant one-time BOLI payment, should be dissected from ongoing operations to truly understand the bank's performance trajectory. Additionally, the reduction in non-performing assets suggests improving asset quality, a key factor for financial institutions, particularly during economic headwinds.
FAIRFIELD, N.J., April 25, 2024 (GLOBE NEWSWIRE) -- Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), reported net income for the quarter ended March 31, 2024 of
The Company also announced that its Board of Directors has declared a quarterly cash dividend of
Craig L. Montanaro, President and Chief Executive Officer, commented, “Once again uncertainty remains on the forefront of conversations taking place on Main Street and on Wall Street. As a company we manage through such challenging periods by staying true to our guiding principles, which have endured since our founding 140 years ago this month: prudent risk management, conservative posturing and an unwavering commitment to our depositors, borrowers, employees and communities.”
Mr. Montanaro continued, “Despite the media speculation surrounding commercial real estate lending in general, and multifamily lending specifically, we maintain a low loan-to-value, low-vacancy, well-diversified commercial loan portfolio with a long history of outstanding credit performance. We subject each loan to intense scrutiny at underwriting, and on an ongoing basis, and maintain peer-leading levels of commercial loan allowance coverage and regulatory capital, as represented by our
Balance Sheet
- Total assets were
$7.84 billion at March 31, 2024, a decrease of$55.9 million , or0.7% , from December 31, 2023. - Investment securities totaled
$1.24 billion at March 31, 2024, a decrease of$47.8 million , or3.7% , from December 31, 2023. - Loans receivable totaled
$5.76 billion at March 31, 2024, an increase of$12.7 million , or0.2% , from December 31, 2023. - Bank-owned life insurance (“BOLI”) totaled
$296.5 million at March 31, 2024, an increase of$40.4 million , or15.8% , from December 31, 2023. The increase for the quarter was largely attributable to the completion of the BOLI restructure initiated in the prior comparative period. - Deposits were
$5.21 billion at March 31, 2024, a decrease of$110.6 million , or2.1% , from December 31, 2023. Excluding a decrease of$50.2 million in brokered certificates of deposits, deposits decreased$60.4 million , or1.2% , from December 31, 2023. This decrease in non-brokered deposits was driven by a$48.4 million decline in retail certificates of deposits and a$15.7 million decline in consumer savings deposits, partially offset by growth in other deposit categories. - Borrowings were
$1.72 billion at March 31, 2024, an increase of$55.1 million , or3.3% , from December 31, 2023. - At March 31, 2024, the Company maintained available secured borrowing capacity of
$1.81 billion , of which$1.47 billion was immediately accessible via in-place collateral and$336.7 million represented the market value of unpledged securities.
Earnings
Net Interest Income and Net Interest Margin
- Net interest margin contracted 5 basis point to
1.89% for the quarter ended March 31, 2024. The decrease for the quarter was driven by an increase in the cost of interest-bearing deposits and a decrease in the average balance of interest-earning assets, partially offset by a higher yield on interest-earning assets and a decrease in the cost of interest-bearing borrowings. - For the quarter ended March 31, 2024, net interest income decreased
$1.5 million to$34.3 million from$35.8 million for the quarter ended December 31, 2023. Included in net interest income for the quarters ended March 31, 2024 and December 31, 2023, respectively, was purchase accounting accretion of$734,000 and$640,000 , and loan prepayment penalty income of$61,000 and$185,000.
Non-Interest Income
- Non-interest income increased
$20.2 million to income of$4.2 million for the quarter ended March 31, 2024, from a loss of$16.0 million for the quarter ended December 31, 2023. The increase was primarily attributable to a pre-tax loss of$18.1 million related to the investment securities portfolio repositioning executed during the prior comparative period. - Income from BOLI increased
$1.8 million to$3.0 million for the quarter ended March 31, 2024 from$1.2 million for the quarter ended December 31, 2023. BOLI income included a$631,000 non-recurring payment on one life insurance policy in the current period, while BOLI income was reduced by non-recurring exchange charges of$573,000 in the prior comparative period. Excluding these non-recurring items, BOLI income improved by$673,000 resulting from the previously mentioned BOLI restructure. - Loss on sale of loans was
$712,000 for the quarter ended March 31, 2024 compared to a gain on sale of loans of$104,000 for the quarter ended December 31, 2023. The loss in the current period was the result of the sale of three related nonperforming commercial real estate loans held-for-sale.
Non-Interest Expense
- For the quarter ended March 31, 2024, non-interest expense decreased
$708,000 , or2.4% , to$29.1 million from$29.8 million for the quarter ended December 31, 2023, primarily driven by a decrease in salary and benefits expense and other expense. - Salary and benefits expense decreased
$371,000 primarily attributable to a non-recurring decrease of$679,000 in stock-based compensation, partially offset by an increase of$374,000 in payroll taxes associated with the start of the new calendar year. - Other expense decreased
$522,000 primarily driven by a$637,000 decrease in OREO expense following the sale of the Company’s sole OREO asset, partially offset by an increase of$288,000 in the provision for credit losses on off balance sheet commitments.
Income Taxes
- Income tax expense totaled
$1.7 million for the quarter ended March 31, 2024 compared to$1.8 million for the quarter ended December 31, 2023. The decrease in income tax expense was largely due to the discrete tax expense associated with the BOLI restructure recognized in the prior comparative period, partially offset by higher pre-tax income, due primarily to realized losses on the sale of securities in the prior comparative period.
Asset Quality
- The balance of non-performing assets decreased
$10.2 million to$39.5 million , or0.50% of total assets, at March 31, 2024, from$49.8 million , or0.63% of total assets, at December 31, 2023. This decrease was driven by the January 2024 sale of three related non-performing commercial real estate loans held-for-sale and the Company’s sole OREO asset. - Net charge-offs totaled
$286,000 , or0.02% of average loans, on an annualized basis, for the quarter ended March 31, 2024, compared to$4.1 million , or0.29% of average loans, on an annualized basis, for the quarter ended December 31, 2023. - For the quarter ended March 31, 2024, the Company recorded a provision for credit losses of
$349,000 , compared to$2.1 million for the quarter ended December 31, 2023. The provision for credit loss expense for the quarter ended March 31, 2024 was primarily driven by loan growth. - The allowance for credit losses (“ACL”) was
$44.9 million , or0.78% of total loans, at March 31, 2024 and unchanged from December 31, 2023.
Capital
- For the quarter ended March 31, 2024, book value per share increased
$0.02 , or0.2% , to$13.18 while tangible book value per share increased$0.02 , or0.2% , to$9.87 . - At March 31, 2024, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of
$95.0 million , partially offset by after-tax unrealized gains on derivatives of$31.3 million . After-tax net unrecognized losses on securities held to maturity of$11.4 million were not reflected in total stockholders’ equity. - At March 31, 2024, the Company’s tangible equity to tangible assets ratio equaled
8.34% 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 Q3 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.
Category: Earnings
| Linked-Quarter Comparative Financial Analysis | ||||||||||||
| Kearny Financial Corp. Consolidated Balance Sheets (Unaudited) | ||||||||||||
| (Dollars and Shares in Thousands, Except Per Share Data) | March 31, 2024 | December 31, 2023 | Variance or Change | Variance or Change Pct. | ||||||||
| Assets | ||||||||||||
| Cash and cash equivalents | $ | 71,027 | $ | 73,860 | $ | (2,833 | ) | -3.8 | % | |||
| Securities available for sale | 1,098,655 | 1,144,175 | (45,520 | ) | -4.0 | % | ||||||
| Securities held to maturity | 139,643 | 141,959 | (2,316 | ) | -1.6 | % | ||||||
| Loans held-for-sale | 4,117 | 14,030 | (9,913 | ) | -70.7 | % | ||||||
| Loans receivable | 5,758,336 | 5,745,629 | 12,707 | 0.2 | % | |||||||
| Less: allowance for credit losses on loans | (44,930 | ) | (44,867 | ) | 63 | 0.1 | % | |||||
| Net loans receivable | 5,713,406 | 5,700,762 | 12,644 | 0.2 | % | |||||||
| Premises and equipment | 45,053 | 45,928 | (875 | ) | -1.9 | % | ||||||
| Federal Home Loan Bank stock | 81,347 | 83,372 | (2,025 | ) | -2.4 | % | ||||||
| Accrued interest receivable | 31,065 | 30,258 | 807 | 2.7 | % | |||||||
| Goodwill | 210,895 | 210,895 | — | — | % | |||||||
| Core deposit intangible | 2,057 | 2,189 | (132 | ) | -6.0 | % | ||||||
| Bank owned life insurance | 296,493 | 256,064 | 40,429 | 15.8 | % | |||||||
| Deferred income taxes, net | 47,225 | 46,116 | 1,109 | 2.4 | % | |||||||
| Other real estate owned | — | 11,982 | (11,982 | ) | -100.0 | % | ||||||
| Other assets | 100,989 | 136,242 | (35,253 | ) | -25.9 | % | ||||||
| Total assets | $ | 7,841,972 | $ | 7,897,832 | $ | (55,860 | ) | -0.7 | % | |||
| Liabilities | ||||||||||||
| Deposits: | ||||||||||||
| Non-interest-bearing | $ | 586,089 | $ | 584,130 | $ | 1,959 | 0.3 | % | ||||
| Interest-bearing | 4,622,961 | 4,735,500 | (112,539 | ) | -2.4 | % | ||||||
| Total deposits | 5,209,050 | 5,319,630 | (110,580 | ) | -2.1 | % | ||||||
| Borrowings | 1,722,178 | 1,667,055 | 55,123 | 3.3 | % | |||||||
| Advance payments by borrowers for taxes | 17,387 | 16,742 | 645 | 3.9 | % | |||||||
| Other liabilities | 44,279 | 46,427 | (2,148 | ) | -4.6 | % | ||||||
| Total liabilities | 6,992,894 | 7,049,854 | (56,960 | ) | -0.8 | % | ||||||
| Stockholders' Equity | ||||||||||||
| Common stock | 644 | 645 | (1 | ) | -0.2 | % | ||||||
| Paid-in capital | 493,187 | 493,297 | (110 | ) | — | % | ||||||
| Retained earnings | 440,308 | 439,755 | 553 | 0.1 | % | |||||||
| Unearned ESOP shares | (21,402 | ) | (21,889 | ) | 487 | 2.2 | % | |||||
| Accumulated other comprehensive loss | (63,659 | ) | (63,830 | ) | 171 | 0.3 | % | |||||
| Total stockholders' equity | 849,078 | 847,978 | 1,100 | 0.1 | % | |||||||
| Total liabilities and stockholders' equity | $ | 7,841,972 | $ | 7,897,832 | $ | (55,860 | ) | -0.7 | % | |||
| Consolidated capital ratios | ||||||||||||
| Equity to assets | 10.83 | % | 10.74 | % | 0.09 | % | ||||||
| Tangible equity to tangible assets(1) | 8.34 | % | 8.26 | % | 0.08 | % | ||||||
| Share data | ||||||||||||
| Outstanding shares | 64,437 | 64,445 | (8 | ) | — | % | ||||||
| Book value per share | $ | 13.18 | $ | 13.16 | $ | 0.02 | 0.2 | % | ||||
| Tangible book value per share(2) | $ | 9.87 | $ | 9.85 | $ | 0.02 | 0.2 | % | ||||
___________________
| (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. | |||||||||
| March 31, 2024 | December 31, 2023 | |||||||||||
| Interest income | ||||||||||||
| Loans | $ | 64,035 | $ | 63,384 | $ | 651 | 1.0 | % | ||||
| Taxable investment securities | 15,490 | 16,756 | (1,266 | ) | -7.6 | % | ||||||
| Tax-exempt investment securities | 85 | 84 | 1 | 1.2 | % | |||||||
| Other interest-earning assets | 2,475 | 2,401 | 74 | 3.1 | % | |||||||
| Total interest income | 82,085 | 82,625 | (540 | ) | -0.7 | % | ||||||
| Interest expense | ||||||||||||
| Deposits | 32,320 | 30,340 | 1,980 | 6.5 | % | |||||||
| Borrowings | 15,446 | 16,446 | (1,000 | ) | -6.1 | % | ||||||
| Total interest expense | 47,766 | 46,786 | 980 | 2.1 | % | |||||||
| Net interest income | 34,319 | 35,839 | (1,520 | ) | -4.2 | % | ||||||
| Provision for credit losses | 349 | 2,105 | (1,756 | ) | -83.4 | % | ||||||
| Net interest income after provision for credit losses | 33,970 | 33,734 | 236 | 0.7 | % | |||||||
| Non-interest income | ||||||||||||
| Fees and service charges | 657 | 624 | 33 | 5.3 | % | |||||||
| Loss on sale and call of securities | — | (18,135 | ) | 18,135 | 100.0 | % | ||||||
| (Loss) gain on sale of loans | (712 | ) | 104 | (816 | ) | -784.6 | % | |||||
| Loss on other real estate owned | — | (974 | ) | 974 | 100.0 | % | ||||||
| Income from bank owned life insurance | 3,039 | 1,162 | 1,877 | 161.5 | % | |||||||
| Electronic banking fees and charges | 464 | 396 | 68 | 17.2 | % | |||||||
| Other income | 755 | 811 | (56 | ) | -6.9 | % | ||||||
| Total non-interest income | 4,203 | (16,012 | ) | 20,215 | 126.2 | % | ||||||
| Non-interest expense | ||||||||||||
| Salaries and employee benefits | 16,911 | 17,282 | (371 | ) | -2.1 | % | ||||||
| Net occupancy expense of premises | 2,863 | 2,674 | 189 | 7.1 | % | |||||||
| Equipment and systems | 3,823 | 3,814 | 9 | 0.2 | % | |||||||
| Advertising and marketing | 387 | 301 | 86 | 28.6 | % | |||||||
| Federal deposit insurance premium | 1,429 | 1,495 | (66 | ) | -4.4 | % | ||||||
| Directors' compensation | 360 | 393 | (33 | ) | -8.4 | % | ||||||
| Other expense | 3,286 | 3,808 | (522 | ) | -13.7 | % | ||||||
| Total non-interest expense | 29,059 | 29,767 | (708 | ) | -2.4 | % | ||||||
| Income (loss) before income taxes | 9,114 | (12,045 | ) | 21,159 | 175.7 | % | ||||||
| Income taxes | 1,717 | 1,782 | (65 | ) | -3.6 | % | ||||||
| Net income (loss) | $ | 7,397 | $ | (13,827 | ) | $ | 21,224 | 153.5 | % | |||
| Net income (loss) per common share (EPS) | ||||||||||||
| Basic | $ | 0.12 | $ | (0.22 | ) | $ | 0.34 | |||||
| Diluted | $ | 0.12 | $ | (0.22 | ) | $ | 0.34 | |||||
| Dividends declared | ||||||||||||
| Cash dividends declared per common share | $ | 0.11 | $ | 0.11 | $ | — | ||||||
| Cash dividends declared | $ | 6,844 | $ | 6,882 | $ | (38 | ) | |||||
| Dividend payout ratio | 92.5 | % | -49.8 | % | 142.3 | % | ||||||
| Weighted average number of common shares outstanding | ||||||||||||
| Basic | 62,205 | 62,299 | (94 | ) | ||||||||
| Diluted | 62,211 | 62,367 | (156 | ) | ||||||||
| Kearny Financial Corp. Average Balance Sheet Data (Unaudited) | ||||||||||||
| (Dollars in Thousands) | Three Months Ended | Variance or Change | Variance or Change Pct. | |||||||||
| March 31, 2024 | December 31, 2023 | |||||||||||
| Assets | ||||||||||||
| Interest-earning assets: | ||||||||||||
| Loans receivable, including loans held for sale | $ | 5,752,477 | $ | 5,726,321 | $ | 26,156 | 0.5 | % | ||||
| Taxable investment securities | 1,382,064 | 1,509,165 | (127,101 | ) | -8.4 | % | ||||||
| Tax-exempt investment securities | 14,614 | 15,025 | (411 | ) | -2.7 | % | ||||||
| Other interest-earning assets | 125,155 | 139,740 | (14,585 | ) | -10.4 | % | ||||||
| Total interest-earning assets | 7,274,310 | 7,390,251 | (115,941 | ) | -1.6 | % | ||||||
| Non-interest-earning assets | 577,411 | 554,335 | 23,076 | 4.2 | % | |||||||
| Total assets | $ | 7,851,721 | $ | 7,944,586 | $ | (92,865 | ) | -1.2 | % | |||
| Liabilities and Stockholders' Equity | ||||||||||||
| Interest-bearing liabilities: | ||||||||||||
| Deposits: | ||||||||||||
| Interest-bearing demand | $ | 2,378,831 | $ | 2,301,169 | $ | 77,662 | 3.4 | % | ||||
| Savings | 635,226 | 664,926 | (29,700 | ) | -4.5 | % | ||||||
| Certificates of deposit | 1,705,513 | 1,824,316 | (118,803 | ) | -6.5 | % | ||||||
| Total interest-bearing deposits | 4,719,570 | 4,790,411 | (70,841 | ) | -1.5 | % | ||||||
| Borrowings: | ||||||||||||
| Federal Home Loan Bank advances | 1,428,801 | 1,513,497 | (84,696 | ) | -5.6 | % | ||||||
| Other borrowings | 210,989 | 142,283 | 68,706 | 48.3 | % | |||||||
| Total borrowings | 1,639,790 | 1,655,780 | (15,990 | ) | -1.0 | % | ||||||
| Total interest-bearing liabilities | 6,359,360 | 6,446,191 | (86,831 | ) | -1.3 | % | ||||||
| Non-interest-bearing liabilities: | ||||||||||||
| Non-interest-bearing deposits | 581,870 | 597,294 | (15,424 | ) | -2.6 | % | ||||||
| Other non-interest-bearing liabilities | 65,709 | 62,387 | 3,322 | 5.3 | % | |||||||
| Total non-interest-bearing liabilities | 647,579 | 659,681 | (12,102 | ) | -1.8 | % | ||||||
| Total liabilities | 7,006,939 | 7,105,872 | (98,933 | ) | -1.4 | % | ||||||
| Stockholders' equity | 844,782 | 838,714 | 6,068 | 0.7 | % | |||||||
| Total liabilities and stockholders' equity | $ | 7,851,721 | $ | 7,944,586 | $ | (92,865 | ) | -1.2 | % | |||
| Average interest-earning assets to average interest-bearing liabilities | 114.39 | % | 114.65 | % | -0.26 | % | -0.2 | % | ||||
| Kearny Financial Corp. Performance Ratio Highlights (Unaudited) | |||||||||
| Three Months Ended | Variance or Change | ||||||||
| March 31, 2024 | December 31, 2023 | ||||||||
| Average yield on interest-earning assets: | |||||||||
| Loans receivable, including loans held for sale | 4.45 | % | 4.43 | % | 0.02 | % | |||
| Taxable investment securities | 4.48 | % | 4.44 | % | 0.04 | % | |||
| Tax-exempt investment securities(1) | 2.32 | % | 2.25 | % | 0.07 | % | |||
| Other interest-earning assets | 7.91 | % | 6.87 | % | 1.04 | % | |||
| Total interest-earning assets | 4.51 | % | 4.47 | % | 0.04 | % | |||
| Average cost of interest-bearing liabilities: | |||||||||
| Deposits: | |||||||||
| Interest-bearing demand | 3.08 | % | 2.91 | % | 0.17 | % | |||
| Savings | 0.46 | % | 0.44 | % | 0.02 | % | |||
| Certificates of deposit | 3.11 | % | 2.82 | % | 0.29 | % | |||
| Total interest-bearing deposits | 2.74 | % | 2.53 | % | 0.21 | % | |||
| Borrowings: | |||||||||
| Federal Home Loan Bank advances | 3.55 | % | 3.82 | % | -0.27 | % | |||
| Other borrowings | 5.22 | % | 5.65 | % | -0.43 | % | |||
| Total borrowings | 3.77 | % | 3.97 | % | -0.20 | % | |||
| Total interest-bearing liabilities | 3.00 | % | 2.90 | % | 0.10 | % | |||
| Interest rate spread(2) | 1.51 | % | 1.57 | % | -0.06 | % | |||
| Net interest margin(3) | 1.89 | % | 1.94 | % | -0.05 | % | |||
| Non-interest income to average assets (annualized) | 0.21 | % | -0.81 | % | 1.02 | % | |||
| Non-interest expense to average assets (annualized) | 1.48 | % | 1.50 | % | -0.02 | % | |||
| Efficiency ratio(4) | 75.43 | % | 150.13 | % | -74.70 | % | |||
| Return on average assets (annualized) | 0.38 | % | -0.70 | % | 1.08 | % | |||
| Return on average equity (annualized) | 3.50 | % | -6.59 | % | 10.09 | % | |||
| Return on average tangible equity (annualized)(5) | 4.68 | % | -8.84 | % | 13.52 | % | |||
___________________
| (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) | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | ||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | (Unaudited) | |||||||||||
| Assets | |||||||||||||||
| Cash and cash equivalents | $ | 71,027 | $ | 73,860 | $ | 57,219 | $ | 70,515 | $ | 194,568 | |||||
| Securities available for sale | 1,098,655 | 1,144,175 | 1,215,633 | 1,227,729 | 1,267,066 | ||||||||||
| Securities held to maturity | 139,643 | 141,959 | 143,730 | 146,465 | 149,764 | ||||||||||
| Loans held-for-sale | 4,117 | 14,030 | 3,934 | 9,591 | 5,401 | ||||||||||
| Loans receivable | 5,758,336 | 5,745,629 | 5,736,049 | 5,829,421 | 5,966,325 | ||||||||||
| Less: allowance for credit losses on loans | (44,930 | ) | (44,867 | ) | (46,872 | ) | (48,734 | ) | (49,122 | ) | |||||
| Net loans receivable | 5,713,406 | 5,700,762 | 5,689,177 | 5,780,687 | 5,917,203 | ||||||||||
| Premises and equipment | 45,053 | 45,928 | 46,868 | 48,309 | 49,589 | ||||||||||
| Federal Home Loan Bank stock | 81,347 | 83,372 | 81,509 | 71,734 | 76,319 | ||||||||||
| Accrued interest receivable | 31,065 | 30,258 | 29,766 | 28,133 | 28,794 | ||||||||||
| Goodwill | 210,895 | 210,895 | 210,895 | 210,895 | 210,895 | ||||||||||
| Core deposit intangible | 2,057 | 2,189 | 2,323 | 2,457 | 2,590 | ||||||||||
| Bank owned life insurance | 296,493 | 256,064 | 294,491 | 292,825 | 291,220 | ||||||||||
| Deferred income taxes, net | 47,225 | 46,116 | 56,500 | 51,973 | 53,151 | ||||||||||
| Other real estate owned | — | 11,982 | 12,956 | 12,956 | 13,410 | ||||||||||
| Other assets | 100,989 | 136,242 | 129,865 | 110,546 | 89,366 | ||||||||||
| Total assets | $ | 7,841,972 | $ | 7,897,832 | $ | 7,974,866 | $ | 8,064,815 | $ | 8,349,336 | |||||
| Liabilities | |||||||||||||||
| Deposits: | |||||||||||||||
| Non-interest-bearing | $ | 586,089 | $ | 584,130 | $ | 595,141 | $ | 609,999 | $ | 617,778 | |||||
| Interest-bearing | 4,622,961 | 4,735,500 | 4,839,027 | 5,019,184 | 5,185,626 | ||||||||||
| Total deposits | 5,209,050 | 5,319,630 | 5,434,168 | 5,629,183 | 5,803,404 | ||||||||||
| Borrowings | 1,722,178 | 1,667,055 | 1,626,933 | 1,506,812 | 1,611,692 | ||||||||||
| Advance payments by borrowers for taxes | 17,387 | 16,742 | 16,907 | 18,338 | 18,706 | ||||||||||
| Other liabilities | 44,279 | 46,427 | 47,324 | 41,198 | 49,304 | ||||||||||
| Total liabilities | 6,992,894 | 7,049,854 | 7,125,332 | 7,195,531 | 7,483,106 | ||||||||||
| Stockholders' Equity | |||||||||||||||
| Common stock | 644 | 645 | 652 | 659 | 667 | ||||||||||
| Paid-in capital | 493,187 | 493,297 | 497,269 | 503,332 | 509,359 | ||||||||||
| Retained earnings | 440,308 | 439,755 | 460,464 | 457,611 | 452,605 | ||||||||||
| Unearned ESOP shares | (21,402 | ) | (21,889 | ) | (22,375 | ) | (22,862 | ) | (23,348 | ) | |||||
| Accumulated other comprehensive loss | (63,659 | ) | (63,830 | ) | (86,476 | ) | (69,456 | ) | (73,053 | ) | |||||
| Total stockholders' equity | 849,078 | 847,978 | 849,534 | 869,284 | 866,230 | ||||||||||
| Total liabilities and stockholders' equity | $ | 7,841,972 | $ | 7,897,832 | $ | 7,974,866 | $ | 8,064,815 | $ | 8,349,336 | |||||
| Consolidated capital ratios | |||||||||||||||
| Equity to assets | 10.83 | % | 10.74 | % | 10.65 | % | 10.78 | % | 10.37 | % | |||||
| Tangible equity to tangible assets(1) | 8.34 | % | 8.26 | % | 8.20 | % | 8.35 | % | 8.02 | % | |||||
| Share data | |||||||||||||||
| Outstanding shares | 64,437 | 64,445 | 65,132 | 65,864 | 66,680 | ||||||||||
| Book value per share | $ | 13.18 | $ | 13.16 | $ | 13.04 | $ | 13.20 | $ | 12.99 | |||||
| Tangible book value per share(2) | $ | 9.87 | $ | 9.85 | $ | 9.77 | $ | 9.96 | $ | 9.79 | |||||
___________________
| (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) | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | ||||||||||
| Loan portfolio composition: | |||||||||||||||
| Commercial loans: | |||||||||||||||
| Multi-family mortgage | $ | 2,645,195 | $ | 2,651,274 | $ | 2,699,151 | $ | 2,761,775 | $ | 2,835,852 | |||||
| Nonresidential mortgage | 965,539 | 947,287 | 946,801 | 968,574 | 1,002,643 | ||||||||||
| Commercial business | 147,326 | 144,134 | 149,229 | 146,861 | 162,038 | ||||||||||
| Construction | 229,457 | 221,933 | 230,703 | 226,609 | 215,524 | ||||||||||
| Total commercial loans | 3,987,517 | 3,964,628 | 4,025,884 | 4,103,819 | 4,216,057 | ||||||||||
| One- to four-family residential mortgage | 1,741,644 | 1,746,065 | 1,689,051 | 1,700,559 | 1,713,343 | ||||||||||
| Consumer loans: | |||||||||||||||
| Home equity loans | 42,731 | 43,517 | 42,896 | 43,549 | 44,376 | ||||||||||
| Other consumer | 3,198 | 2,728 | 2,644 | 2,549 | 2,592 | ||||||||||
| Total consumer loans | 45,929 | 46,245 | 45,540 | 46,098 | 46,968 | ||||||||||
| Total loans, excluding yield adjustments | 5,775,090 | 5,756,938 | 5,760,475 | 5,850,476 | 5,976,368 | ||||||||||
| Unaccreted yield adjustments | (16,754 | ) | (11,309 | ) | (24,426 | ) | (21,055 | ) | (10,043 | ) | |||||
| Loans receivable, net of yield adjustments | 5,758,336 | 5,745,629 | 5,736,049 | 5,829,421 | 5,966,325 | ||||||||||
| Less: allowance for credit losses on loans | (44,930 | ) | (44,867 | ) | (46,872 | ) | (48,734 | ) | (49,122 | ) | |||||
| Net loans receivable | $ | 5,713,406 | $ | 5,700,762 | $ | 5,689,177 | $ | 5,780,687 | $ | 5,917,203 | |||||
| Asset quality: | |||||||||||||||
| Nonperforming assets: | |||||||||||||||
| Accruing loans - 90 days and over past due | $ | — | $ | — | $ | — | $ | — | $ | — | |||||
| Nonaccrual loans | 39,546 | 28,089 | 37,912 | 42,627 | 44,026 | ||||||||||
| Total nonperforming loans | 39,546 | 28,089 | 37,912 | 42,627 | 44,026 | ||||||||||
| Nonaccrual loans held-for-sale | — | 9,700 | — | — | — | ||||||||||
| Other real estate owned | — | 11,982 | 12,956 | 12,956 | 13,410 | ||||||||||
| Total nonperforming assets | $ | 39,546 | $ | 49,771 | $ | 50,868 | $ | 55,583 | $ | 57,436 | |||||
| Nonperforming loans (% total loans) | 0.69 | % | 0.49 | % | 0.66 | % | 0.73 | % | 0.74 | % | |||||
| Nonperforming assets (% total assets) | 0.50 | % | 0.63 | % | 0.64 | % | 0.69 | % | 0.69 | % | |||||
| Classified loans | $ | 115,772 | $ | 94,676 | $ | 98,616 | $ | 93,526 | $ | 103,461 | |||||
| Allowance for credit losses on loans (ACL): | |||||||||||||||
| ACL to total loans | 0.78 | % | 0.78 | % | 0.81 | % | 0.83 | % | 0.82 | % | |||||
| ACL to nonperforming loans | 113.61 | % | 159.73 | % | 123.63 | % | 114.33 | % | 111.57 | % | |||||
| Net charge-offs | $ | 286 | $ | 4,110 | $ | 2,107 | $ | 82 | $ | 206 | |||||
| Average net charge-off rate (annualized) | 0.02 | % | 0.29 | % | 0.15 | % | 0.01 | % | 0.01 | % | |||||
| Kearny Financial Corp. Supplemental Balance Sheet Highlights (Unaudited) | |||||||||||||||
| (Dollars in Thousands) | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | ||||||||||
| Funding composition: | |||||||||||||||
| Deposits: | |||||||||||||||
| Non-interest-bearing deposits | $ | 586,089 | $ | 584,130 | $ | 595,141 | $ | 609,999 | $ | 617,778 | |||||
| Interest-bearing demand | 2,349,032 | 2,347,262 | 2,236,573 | 2,252,912 | 2,285,799 | ||||||||||
| Savings | 630,456 | 646,182 | 689,163 | 748,721 | 811,483 | ||||||||||
| Certificates of deposit (retail) | 1,235,261 | 1,283,676 | 1,300,382 | 1,377,028 | 1,327,343 | ||||||||||
| Certificates of deposit (brokered and listing service) | 408,212 | 458,380 | 612,909 | 640,523 | 761,001 | ||||||||||
| Interest-bearing deposits | 4,622,961 | 4,735,500 | 4,839,027 | 5,019,184 | 5,185,626 | ||||||||||
| Total deposits | 5,209,050 | 5,319,630 | 5,434,168 | 5,629,183 | 5,803,404 | ||||||||||
| Borrowings: | |||||||||||||||
| Federal Home Loan Bank advances | 1,357,178 | 1,432,055 | 1,456,933 | 1,281,812 | 1,156,692 | ||||||||||
| Other borrowings | 365,000 | 235,000 | 170,000 | 225,000 | 455,000 | ||||||||||
| Total borrowings | 1,722,178 | 1,667,055 | 1,626,933 | 1,506,812 | 1,611,692 | ||||||||||
| Total funding | $ | 6,931,228 | $ | 6,986,685 | $ | 7,061,101 | $ | 7,135,995 | $ | 7,415,096 | |||||
| Loans as a % of deposits | 109.8 | % | 107.4 | % | 104.8 | % | 102.9 | % | 102.1 | % | |||||
| Deposits as a % of total funding | 75.2 | % | 76.1 | % | 77.0 | % | 78.9 | % | 78.3 | % | |||||
| Borrowings as a % of total funding | 24.8 | % | 23.9 | % | 23.0 | % | 21.1 | % | 21.7 | % | |||||
| Uninsured deposits: | |||||||||||||||
| Uninsured deposits (reported)(1) | $ | 1,760,740 | $ | 1,813,122 | $ | 1,734,288 | $ | 1,771,416 | $ | 1,678,051 | |||||
| Uninsured deposits (adjusted)(2) | $ | 718,026 | $ | 694,510 | $ | 683,265 | $ | 710,377 | $ | 705,727 | |||||
___________________
| (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) | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | ||||||||||
| Interest income | |||||||||||||||
| Loans | $ | 64,035 | $ | 63,384 | $ | 62,769 | $ | 62,044 | $ | 60,172 | |||||
| Taxable investment securities | 15,490 | 16,756 | 16,265 | 15,736 | 15,459 | ||||||||||
| Tax-exempt investment securities | 85 | 84 | 87 | 91 | 99 | ||||||||||
| Other interest-earning assets | 2,475 | 2,401 | 2,047 | 1,821 | 1,441 | ||||||||||
| Total interest income | 82,085 | 82,625 | 81,168 | 79,692 | 77,171 | ||||||||||
| Interest expense | |||||||||||||||
| Deposits | 32,320 | 30,340 | 27,567 | 26,226 | 22,246 | ||||||||||
| Borrowings | 15,446 | 16,446 | 14,441 | 13,286 | 12,554 | ||||||||||
| Total interest expense | 47,766 | 46,786 | 42,008 | 39,512 | 34,800 | ||||||||||
| Net interest income | 34,319 | 35,839 | 39,160 | 40,180 | 42,371 | ||||||||||
| Provision for (reversal of) credit losses | 349 | 2,105 | 245 | (306 | ) | 451 | |||||||||
| Net interest income after provision for (reversal of) credit losses | 33,970 | 33,734 | 38,915 | 40,486 | 41,920 | ||||||||||
| Non-interest income | |||||||||||||||
| Fees and service charges | 657 | 624 | 748 | 699 | 910 | ||||||||||
| Loss on sale and call of securities | — | (18,135 | ) | — | — | — | |||||||||
| Gain (loss) on sale of loans | (712 | ) | 104 | 215 | 199 | (2,373 | ) | ||||||||
| Loss on sale of other real estate owned | — | (974 | ) | — | (139 | ) | — | ||||||||
| Income from bank owned life insurance | 3,039 | 1,162 | 1,666 | 1,605 | 1,581 | ||||||||||
| Electronic banking fees and charges | 464 | 396 | 367 | 399 | 457 | ||||||||||
| Other income | 755 | 811 | 1,014 | 903 | 1,071 | ||||||||||
| Total non-interest income | 4,203 | (16,012 | ) | 4,010 | 3,666 | 1,646 | |||||||||
| Non-interest expense | |||||||||||||||
| Salaries and employee benefits | 16,911 | 17,282 | 17,761 | 17,315 | 18,005 | ||||||||||
| Net occupancy expense of premises | 2,863 | 2,674 | 2,758 | 2,862 | 3,097 | ||||||||||
| Equipment and systems | 3,823 | 3,814 | 3,801 | 3,511 | 3,537 | ||||||||||
| Advertising and marketing | 387 | 301 | 228 | 231 | 413 | ||||||||||
| Federal deposit insurance premium | 1,429 | 1,495 | 1,524 | 1,455 | 1,546 | ||||||||||
| Directors' compensation | 360 | 393 | 393 | 345 | 340 | ||||||||||
| Other expense | 3,286 | 3,808 | 3,309 | 3,042 | 3,414 | ||||||||||
| Total non-interest expense | 29,059 | 29,767 | 29,774 | 28,761 | 30,352 | ||||||||||
| Income (loss) before income taxes | 9,114 | (12,045 | ) | 13,151 | 15,391 | 13,214 | |||||||||
| Income taxes | 1,717 | 1,782 | 3,309 | 3,378 | 2,902 | ||||||||||
| Net income (loss) | $ | 7,397 | $ | (13,827 | ) | $ | 9,842 | $ | 12,013 | $ | 10,312 | ||||
| Net income (loss) per common share (EPS) | |||||||||||||||
| Basic | $ | 0.12 | $ | (0.22 | ) | $ | 0.16 | $ | 0.19 | $ | 0.16 | ||||
| Diluted | $ | 0.12 | $ | (0.22 | ) | $ | 0.16 | $ | 0.19 | $ | 0.16 | ||||
| Dividends declared | |||||||||||||||
| Cash dividends declared per common share | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.11 | |||||
| Cash dividends declared | $ | 6,844 | $ | 6,882 | $ | 6,989 | $ | 7,007 | $ | 7,196 | |||||
| Dividend payout ratio | 92.5 | % | -49.8 | % | 71.0 | % | 58.3 | % | 69.8 | % | |||||
| Weighted average number of common shares outstanding | |||||||||||||||
| Basic | 62,205 | 62,299 | 63,014 | 63,667 | 64,769 | ||||||||||
| Diluted | 62,211 | 62,367 | 63,061 | 63,667 | 64,783 | ||||||||||
| Kearny Financial Corp. Average Balance Sheet Data (Unaudited) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| (Dollars in Thousands) | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | ||||||||||
| Assets | |||||||||||||||
| Interest-earning assets: | |||||||||||||||
| Loans receivable, including loans held-for-sale | $ | 5,752,477 | $ | 5,726,321 | $ | 5,788,074 | $ | 5,932,541 | $ | 5,986,669 | |||||
| Taxable investment securities | 1,382,064 | 1,509,165 | 1,516,393 | 1,529,582 | 1,558,222 | ||||||||||
| Tax-exempt investment securities | 14,614 | 15,025 | 15,483 | 16,346 | 17,663 | ||||||||||
| Other interest-earning assets | 125,155 | 139,740 | 130,829 | 128,158 | 131,682 | ||||||||||
| Total interest-earning assets | 7,274,310 | 7,390,251 | 7,450,779 | 7,606,627 | 7,694,236 | ||||||||||
| Non-interest-earning assets | 577,411 | 554,335 | 568,723 | 556,962 | 575,009 | ||||||||||
| Total assets | $ | 7,851,721 | $ | 7,944,586 | $ | 8,019,502 | $ | 8,163,589 | $ | 8,269,245 | |||||
| Liabilities and Stockholders' Equity | |||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||
| Deposits: | |||||||||||||||
| Interest-bearing demand | $ | 2,378,831 | $ | 2,301,169 | $ | 2,245,831 | $ | 2,321,120 | $ | 2,363,762 | |||||
| Savings | 635,226 | 664,926 | 719,508 | 774,854 | 858,673 | ||||||||||
| Certificates of deposit | 1,705,513 | 1,824,316 | 1,968,512 | 2,057,818 | 2,069,396 | ||||||||||
| Total interest-bearing deposits | 4,719,570 | 4,790,411 | 4,933,851 | 5,153,792 | 5,291,831 | ||||||||||
| Borrowings: | |||||||||||||||
| Federal Home Loan Bank advances | 1,428,801 | 1,513,497 | 1,386,473 | 1,374,316 | 1,402,269 | ||||||||||
| Other borrowings | 210,989 | 142,283 | 158,098 | 100,055 | 1,611 | ||||||||||
| Total borrowings | 1,639,790 | 1,655,780 | 1,544,571 | 1,474,371 | 1,403,880 | ||||||||||
| Total interest-bearing liabilities | 6,359,360 | 6,446,191 | 6,478,422 | 6,628,163 | 6,695,711 | ||||||||||
| Non-interest-bearing liabilities: | |||||||||||||||
| Non-interest-bearing deposits | 581,870 | 597,294 | 612,251 | 608,765 | 634,324 | ||||||||||
| Other non-interest-bearing liabilities | 65,709 | 62,387 | 66,701 | 64,970 | 60,327 | ||||||||||
| Total non-interest-bearing liabilities | 647,579 | 659,681 | 678,952 | 673,735 | 694,651 | ||||||||||
| Total liabilities | 7,006,939 | 7,105,872 | 7,157,374 | 7,301,898 | 7,390,362 | ||||||||||
| Stockholders' equity | 844,782 | 838,714 | 862,128 | 861,691 | 878,883 | ||||||||||
| Total liabilities and stockholders' equity | $ | 7,851,721 | $ | 7,944,586 | $ | 8,019,502 | $ | 8,163,589 | $ | 8,269,245 | |||||
| Average interest-earning assets to average interest-bearing liabilities | 114.39 | % | 114.65 | % | 115.01 | % | 114.76 | % | 114.91 | % | |||||
| Kearny Financial Corp. Performance Ratio Highlights | |||||||||||||||
| Three Months Ended | |||||||||||||||
| March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | |||||||||||
| Average yield on interest-earning assets: | |||||||||||||||
| Loans receivable, including loans held-for-sale | 4.45 | % | 4.43 | % | 4.34 | % | 4.18 | % | 4.02 | % | |||||
| Taxable investment securities | 4.48 | % | 4.44 | % | 4.29 | % | 4.12 | % | 3.97 | % | |||||
| Tax-exempt investment securities(1) | 2.32 | % | 2.25 | % | 2.25 | % | 2.23 | % | 2.23 | % | |||||
| Other interest-earning assets | 7.91 | % | 6.87 | % | 6.26 | % | 5.68 | % | 4.38 | % | |||||
| Total interest-earning assets | 4.51 | % | 4.47 | % | 4.36 | % | 4.19 | % | 4.01 | % | |||||
| Average cost of interest-bearing liabilities: | |||||||||||||||
| Deposits: | |||||||||||||||
| Interest-bearing demand | 3.08 | % | 2.91 | % | 2.58 | % | 2.38 | % | 2.01 | % | |||||
| Savings | 0.46 | % | 0.44 | % | 0.47 | % | 0.48 | % | 0.41 | % | |||||
| Certificates of deposit | 3.11 | % | 2.82 | % | 2.49 | % | 2.24 | % | 1.84 | % | |||||
| Total interest-bearing deposits | 2.74 | % | 2.53 | % | 2.23 | % | 2.04 | % | 1.68 | % | |||||
| Borrowings: | |||||||||||||||
| Federal Home Loan Bank advances | 3.55 | % | 3.82 | % | 3.54 | % | 3.51 | % | 3.58 | % | |||||
| Other borrowings | 5.22 | % | 5.65 | % | 5.46 | % | 4.89 | % | 5.15 | % | |||||
| Total borrowings | 3.77 | % | 3.97 | % | 3.74 | % | 3.60 | % | 3.58 | % | |||||
| Total interest-bearing liabilities | 3.00 | % | 2.90 | % | 2.59 | % | 2.38 | % | 2.08 | % | |||||
| Interest rate spread(2) | 1.51 | % | 1.57 | % | 1.77 | % | 1.81 | % | 1.93 | % | |||||
| Net interest margin(3) | 1.89 | % | 1.94 | % | 2.10 | % | 2.11 | % | 2.20 | % | |||||
| Non-interest income to average assets (annualized) | 0.21 | % | -0.81 | % | 0.20 | % | 0.18 | % | 0.08 | % | |||||
| Non-interest expense to average assets (annualized) | 1.48 | % | 1.50 | % | 1.49 | % | 1.41 | % | 1.47 | % | |||||
| Efficiency ratio(4) | 75.43 | % | 150.13 | % | 68.97 | % | 65.60 | % | 68.96 | % | |||||
| Return on average assets (annualized) | 0.38 | % | -0.70 | % | 0.49 | % | 0.59 | % | 0.50 | % | |||||
| Return on average equity (annualized) | 3.50 | % | -6.59 | % | 4.57 | % | 5.58 | % | 4.69 | % | |||||
| Return on average tangible equity (annualized)(5) | 4.68 | % | -8.84 | % | 6.07 | % | 7.41 | % | 6.20 | % | |||||
___________________
| (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) | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | ||||||||||
| Adjusted net income: | |||||||||||||||
| Net income (loss) (GAAP) | $ | 7,397 | $ | (13,827 | ) | $ | 9,842 | $ | 12,013 | $ | 10,312 | ||||
| Non-recurring transactions - net of tax: | |||||||||||||||
| Branch consolidation expenses | — | — | — | — | 568 | ||||||||||
| Net effect of sale and call of securities | — | 12,876 | — | — | — | ||||||||||
| Net effect of bank-owned life insurance restructure | — | 6,286 | — | — | — | ||||||||||
| Adjusted net income | $ | 7,397 | $ | 5,335 | $ | 9,842 | $ | 12,013 | $ | 10,880 | |||||
| Calculation of pre-tax, pre-provision net revenue: | |||||||||||||||
| Net income (loss) (GAAP) | $ | 7,397 | $ | (13,827 | ) | $ | 9,842 | $ | 12,013 | $ | 10,312 | ||||
| Adjustments to net income (GAAP): | |||||||||||||||
| Provision for income taxes | 1,717 | 1,782 | 3,309 | 3,378 | 2,902 | ||||||||||
| Provision for (reversal of) credit losses | 349 | 2,105 | 245 | (306 | ) | 451 | |||||||||
| Pre-tax, pre-provision net revenue (non-GAAP) | $ | 9,463 | $ | (9,940 | ) | $ | 13,396 | $ | 15,085 | $ | 13,665 | ||||
| Adjusted earnings per share: | |||||||||||||||
| Weighted average common shares - basic | 62,205 | 62,299 | 63,014 | 63,667 | 64,769 | ||||||||||
| Weighted average common shares - diluted | 62,211 | 62,367 | 63,061 | 63,667 | 64,783 | ||||||||||
| Earnings per share - basic (GAAP) | $ | 0.12 | $ | (0.22 | ) | $ | 0.16 | $ | 0.19 | $ | 0.16 | ||||
| Earnings per share - diluted (GAAP) | $ | 0.12 | $ | (0.22 | ) | $ | 0.16 | $ | 0.19 | $ | 0.16 | ||||
| Adjusted earnings per share - basic (non-GAAP) | $ | 0.12 | $ | 0.09 | $ | 0.16 | $ | 0.19 | $ | 0.17 | |||||
| Adjusted earnings per share - diluted (non-GAAP) | $ | 0.12 | $ | 0.09 | $ | 0.16 | $ | 0.19 | $ | 0.17 | |||||
| Pre-tax, pre-provision net revenue per share: | |||||||||||||||
| Pre-tax, pre-provision net revenue per share - basic (non-GAAP) | $ | 0.15 | $ | (0.16 | ) | $ | 0.21 | $ | 0.24 | $ | 0.21 | ||||
| Pre-tax, pre-provision net revenue per share - diluted (non-GAAP) | $ | 0.15 | $ | (0.16 | ) | $ | 0.21 | $ | 0.24 | $ | 0.21 | ||||
| Adjusted return on average assets: | |||||||||||||||
| Total average assets | $ | 7,851,721 | $ | 7,944,586 | $ | 8,019,502 | $ | 8,163,589 | $ | 8,269,245 | |||||
| Return on average assets (GAAP) | 0.38 | % | -0.70 | % | 0.49 | % | 0.59 | % | 0.50 | % | |||||
| Adjusted return on average assets (non-GAAP) | 0.38 | % | 0.27 | % | 0.49 | % | 0.59 | % | 0.53 | % | |||||
| Adjusted return on average equity: | |||||||||||||||
| Total average equity | $ | 844,782 | $ | 838,714 | $ | 862,128 | $ | 861,691 | $ | 878,883 | |||||
| Return on average equity (GAAP) | 3.50 | % | -6.59 | % | 4.57 | % | 5.58 | % | 4.69 | % | |||||
| Adjusted return on average equity (non-GAAP) | 3.50 | % | 2.54 | % | 4.57 | % | 5.58 | % | 4.95 | % | |||||
| Kearny Financial Corp. Reconciliation of GAAP to Non-GAAP (Unaudited) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| (Dollars and Shares in Thousands, Except Per Share Data) | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | ||||||||||
| Adjusted return on average tangible equity: | |||||||||||||||
| Total average equity | $ | 844,782 | $ | 838,714 | $ | 862,128 | $ | 861,691 | $ | 878,883 | |||||
| Less: average goodwill | (210,895 | ) | (210,895 | ) | (210,895 | ) | (210,895 | ) | (210,895 | ) | |||||
| Less: average other intangible assets | (2,138 | ) | (2,277 | ) | (2,411 | ) | (2,544 | ) | (2,683 | ) | |||||
| Total average tangible equity | $ | 631,749 | $ | 625,542 | $ | 648,822 | $ | 648,252 | $ | 665,305 | |||||
| Return on average tangible equity (non-GAAP) | 4.68 | % | -8.84 | % | 6.07 | % | 7.41 | % | 6.20 | % | |||||
| Adjusted return on average tangible equity (non-GAAP) | 4.68 | % | 3.41 | % | 6.07 | % | 7.41 | % | 6.54 | % | |||||
| Adjusted non-interest expense ratio: | |||||||||||||||
| Non-interest expense (GAAP) | $ | 29,059 | $ | 29,767 | $ | 29,774 | $ | 28,761 | $ | 30,352 | |||||
| Non-recurring transactions: | |||||||||||||||
| Branch consolidation expenses | — | — | — | — | (800 | ) | |||||||||
| Non-interest expense (non-GAAP) | $ | 29,059 | $ | 29,767 | $ | 29,774 | $ | 28,761 | $ | 29,552 | |||||
| Non-interest expense ratio (GAAP) | 1.48 | % | 1.50 | % | 1.49 | % | 1.41 | % | 1.47 | % | |||||
| Adjusted non-interest expense ratio (non-GAAP) | 1.48 | % | 1.50 | % | 1.49 | % | 1.41 | % | 1.43 | % | |||||
| Adjusted efficiency ratio: | |||||||||||||||
| Non-interest expense (non-GAAP) | $ | 29,059 | $ | 29,767 | $ | 29,774 | $ | 28,761 | $ | 29,552 | |||||
| Net interest income (GAAP) | $ | 34,319 | $ | 35,839 | $ | 39,160 | $ | 40,180 | $ | 42,371 | |||||
| Total non-interest income (GAAP) | 4,203 | (16,012 | ) | 4,010 | 3,666 | 1,646 | |||||||||
| Non-recurring transactions: | |||||||||||||||
| Net effect of sale and call of securities | — | 18,135 | — | — | — | ||||||||||
| Net effect of bank-owned life insurance restructure | — | 573 | — | — | — | ||||||||||
| Total revenue (non-GAAP) | $ | 38,522 | $ | 38,535 | $ | 43,170 | $ | 43,846 | $ | 44,017 | |||||
| Efficiency ratio (GAAP) | 75.43 | % | 150.13 | % | 68.97 | % | 65.60 | % | 68.96 | % | |||||
| Adjusted efficiency ratio (non-GAAP) | 75.43 | % | 77.25 | % | 68.97 | % | 65.60 | % | 67.14 | % | |||||
For further information contact:
Craig L. Montanaro, President and Chief Executive Officer, or
Keith Suchodolski, Senior Executive Vice President and Chief Financial Officer
Kearny Financial Corp.
(973) 244-4500
FAQ
What was Kearny Financial Corp.'s net income for Q3 of fiscal 2024?
Kearny Financial Corp. reported a net income of $7.4 million for the quarter.
What was the declared cash dividend per share for Kearny Financial Corp.?
Kearny Financial Corp. declared a cash dividend of $0.11 per share.
What is Kearny Financial Corp.'s ticker symbol?
Kearny Financial Corp.'s ticker symbol is KRNY.
What was the total assets of Kearny Financial Corp. at the end of March 31, 2024?
Kearny Financial Corp.'s total assets were $7.84 billion at the end of March 31, 2024.
What was the net interest margin for Kearny Financial Corp. for the quarter ended March 31, 2024?
Kearny Financial Corp.'s net interest margin was 1.89% for the quarter ended March 31, 2024.
Did non-interest income increase or decrease for Kearny Financial Corp. for the quarter ended March 31, 2024?
Non-interest income for Kearny Financial Corp. increased significantly to $4.2 million for the quarter ended March 31, 2024.
What was the change in non-performing assets for Kearny Financial Corp. from December 31, 2023 to March 31, 2024?
The balance of non-performing assets decreased by $10.2 million for Kearny Financial Corp. from December 31, 2023, to March 31, 2024.
What was the change in book value per share for Kearny Financial Corp. from December 31, 2023, to March 31, 2024?
Book value per share for Kearny Financial Corp. increased by $0.02 to $13.18 from December 31, 2023, to March 31, 2024.
Kearny Financial Corporation
NASDAQ:KRNY
KRNY Rankings
KRNY Latest News
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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