Kearny Financial Corp. Announces Third Quarter Fiscal 2024 Results and Declaration of Cash Dividend

In this article:
Kearny BankKearny Bank
Kearny Bank

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 $7.4 million, or $0.12 per diluted share, compared to a net loss of $13.8 million, or $0.22 per diluted share, for the quarter ended December 31, 2023. The net loss for the quarter ended December 31, 2023 was impacted by various non-recurring items, as previously disclosed.

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on May 22, 2024, to stockholders of record as of May 8, 2024.

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 14.7% Common Equity Tier 1 capital ratio.”

Balance Sheet

  • Total assets were $7.84 billion at March 31, 2024, a decrease of $55.9 million, or 0.7%, from December 31, 2023.

  • Investment securities totaled $1.24 billion at March 31, 2024, a decrease of $47.8 million, or 3.7%, from December 31, 2023.

  • Loans receivable totaled $5.76 billion at March 31, 2024, an increase of $12.7 million, or 0.2%, from December 31, 2023.

  • Bank-owned life insurance (“BOLI”) totaled $296.5 million at March 31, 2024, an increase of $40.4 million, or 15.8%, 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, or 2.1%, from December 31, 2023. Excluding a decrease of $50.2 million in brokered certificates of deposits, deposits decreased $60.4 million, or 1.2%, 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, or 3.3%, 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, or 2.4%, 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, or 0.50% of total assets, at March 31, 2024, from $49.8 million, or 0.63% 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, or 0.02% of average loans, on an annualized basis, for the quarter ended March 31, 2024, compared to $4.1 million, or 0.29% 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, or 0.78% 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, or 0.2%, to $13.18 while tangible book value per share increased $0.02, or 0.2%, 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



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