(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Exhibit Number | Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
KEARNY FINANCIAL CORP. | ||||||||
Date: January 31, 2024 | By: | /s/ Keith Suchodolski | ||||||
Keith Suchodolski | ||||||||
Senior Executive Vice President and Chief Financial Officer |
Linked-Quarter Comparative Financial Analysis |
(Dollars and Shares in Thousands, Except Per Share Data) | December 31, 2023 (3) | September 30, 2023 | Variance or Change | Variance or Change Pct. | ||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 73,860 | $ | 57,219 | $ | 16,641 | 29.1 | % | ||||||
Securities available for sale | 1,144,175 | 1,215,633 | (71,458) | -5.9 | % | |||||||||
Securities held to maturity | 141,959 | 143,730 | (1,771) | -1.2 | % | |||||||||
Loans held-for-sale | 14,030 | 3,934 | 10,096 | 256.6 | % | |||||||||
Loans receivable | 5,745,629 | 5,736,049 | 9,580 | 0.2 | % | |||||||||
Less: allowance for credit losses on loans | (44,867) | (46,872) | (2,005) | -4.3 | % | |||||||||
Net loans receivable | 5,700,762 | 5,689,177 | 11,585 | 0.2 | % | |||||||||
Premises and equipment | 45,928 | 46,868 | (940) | -2.0 | % | |||||||||
Federal Home Loan Bank stock | 83,372 | 81,509 | 1,863 | 2.3 | % | |||||||||
Accrued interest receivable | 30,258 | 29,766 | 492 | 1.7 | % | |||||||||
Goodwill | 210,895 | 210,895 | — | — | % | |||||||||
Core deposit intangible | 2,189 | 2,323 | (134) | -5.8 | % | |||||||||
Bank owned life insurance | 256,064 | 294,491 | (38,427) | -13.0 | % | |||||||||
Deferred income taxes, net | 46,116 | 56,500 | (10,384) | -18.4 | % | |||||||||
Other real estate owned | 11,982 | 12,956 | (974) | -7.5 | % | |||||||||
Other assets | 136,242 | 129,865 | 6,377 | 4.9 | % | |||||||||
Total assets | $ | 7,897,832 | $ | 7,974,866 | $ | (77,034) | -1.0 | % | ||||||
Liabilities | ||||||||||||||
Deposits: | ||||||||||||||
Non-interest-bearing | $ | 584,130 | $ | 595,141 | $ | (11,011) | -1.9 | % | ||||||
Interest-bearing | 4,735,500 | 4,839,027 | (103,527) | -2.1 | % | |||||||||
Total deposits | 5,319,630 | 5,434,168 | (114,538) | -2.1 | % | |||||||||
Borrowings | 1,667,055 | 1,626,933 | 40,122 | 2.5 | % | |||||||||
Advance payments by borrowers for taxes | 16,742 | 16,907 | (165) | -1.0 | % | |||||||||
Other liabilities | 46,427 | 47,324 | (897) | -1.9 | % | |||||||||
Total liabilities | 7,049,854 | 7,125,332 | (75,478) | -1.1 | % | |||||||||
Stockholders' Equity | ||||||||||||||
Common stock | 645 | 652 | (7) | -1.1 | % | |||||||||
Paid-in capital | 493,297 | 497,269 | (3,972) | -0.8 | % | |||||||||
Retained earnings | 439,755 | 460,464 | (20,709) | -4.5 | % | |||||||||
Unearned ESOP shares | (21,889) | (22,375) | 486 | 2.2 | % | |||||||||
Accumulated other comprehensive loss | (63,830) | (86,476) | 22,646 | 26.2 | % | |||||||||
Total stockholders' equity | 847,978 | 849,534 | (1,556) | -0.2 | % | |||||||||
Total liabilities and stockholders' equity | $ | 7,897,832 | $ | 7,974,866 | $ | (77,034) | -1.0 | % | ||||||
Consolidated capital ratios | ||||||||||||||
Equity to assets | 10.74 | % | 10.65 | % | 0.09 | % | ||||||||
Tangible equity to tangible assets (1) | 8.26 | % | 8.20 | % | 0.06 | % | ||||||||
Share data | ||||||||||||||
Outstanding shares | 64,445 | 65,132 | (687) | -1.1 | % | |||||||||
Book value per share | $ | 13.16 | $ | 13.04 | $ | 0.12 | 0.9 | % | ||||||
Tangible book value per share (2) | $ | 9.85 | $ | 9.77 | $ | 0.08 | 0.8 | % |
(Dollars and Shares in Thousands, Except Per Share Data) | Three Months Ended | Variance or Change | Variance or Change Pct. | |||||||||||
December 31, 2023 (1) | September 30, 2023 | |||||||||||||
Interest income | ||||||||||||||
Loans | $ | 63,384 | $ | 62,769 | $ | 615 | 1.0 | % | ||||||
Taxable investment securities | 16,756 | 16,265 | 491 | 3.0 | % | |||||||||
Tax-exempt investment securities | 84 | 87 | (3) | -3.4 | % | |||||||||
Other interest-earning assets | 2,401 | 2,047 | 354 | 17.3 | % | |||||||||
Total interest income | 82,625 | 81,168 | 1,457 | 1.8 | % | |||||||||
Interest expense | ||||||||||||||
Deposits | 30,340 | 27,567 | 2,773 | 10.1 | % | |||||||||
Borrowings | 16,446 | 14,441 | 2,005 | 13.9 | % | |||||||||
Total interest expense | 46,786 | 42,008 | 4,778 | 11.4 | % | |||||||||
Net interest income | 35,839 | 39,160 | (3,321) | -8.5 | % | |||||||||
Provision for credit losses | 2,105 | 245 | 1,860 | 759.2 | % | |||||||||
Net interest income after provision for credit losses | 33,734 | 38,915 | (5,181) | -13.3 | % | |||||||||
Non-interest income | ||||||||||||||
Fees and service charges | 624 | 748 | (124) | -16.6 | % | |||||||||
Loss on sale and call of securities | (18,135) | — | (18,135) | — | % | |||||||||
Gain on sale of loans | 104 | 215 | (111) | -51.6 | % | |||||||||
Loss on sale of other real estate owned | (974) | — | (974) | — | % | |||||||||
Income from bank owned life insurance | 1,162 | 1,666 | (504) | -30.3 | % | |||||||||
Electronic banking fees and charges | 396 | 367 | 29 | 7.9 | % | |||||||||
Other income | 811 | 1,014 | (203) | -20.0 | % | |||||||||
Total non-interest income | (16,012) | 4,010 | (20,022) | -499.3 | % | |||||||||
Non-interest expense | ||||||||||||||
Salaries and employee benefits | 17,282 | 17,761 | (479) | -2.7 | % | |||||||||
Net occupancy expense of premises | 2,674 | 2,758 | (84) | -3.0 | % | |||||||||
Equipment and systems | 3,814 | 3,801 | 13 | 0.3 | % | |||||||||
Advertising and marketing | 301 | 228 | 73 | 32.0 | % | |||||||||
Federal deposit insurance premium | 1,495 | 1,524 | (29) | -1.9 | % | |||||||||
Directors' compensation | 393 | 393 | — | — | % | |||||||||
Other expense | 3,808 | 3,309 | 499 | 15.1 | % | |||||||||
Total non-interest expense | 29,767 | 29,774 | (7) | — | % | |||||||||
(Loss) income before income taxes | (12,045) | 13,151 | (25,196) | -191.6 | % | |||||||||
Income taxes | 1,782 | 3,309 | (1,527) | -46.1 | % | |||||||||
Net (loss) income | $ | (13,827) | $ | 9,842 | $ | (23,669) | -240.5 | % | ||||||
Net (loss) income per common share (EPS) | ||||||||||||||
Basic | $ | (0.22) | $ | 0.16 | $ | (0.38) | ||||||||
Diluted | $ | (0.22) | $ | 0.16 | $ | (0.38) | ||||||||
Dividends declared | ||||||||||||||
Cash dividends declared per common share | $ | 0.11 | $ | 0.11 | $ | — | ||||||||
Cash dividends declared | $ | 6,882 | $ | 6,989 | $ | (107) | ||||||||
Dividend payout ratio | -49.8 | % | 71.0 | % | -120.8 | % | ||||||||
Weighted average number of common shares outstanding | ||||||||||||||
Basic | 62,299 | 63,014 | (715) | |||||||||||
Diluted | 62,367 | 63,061 | (694) |
(Dollars in Thousands) | Three Months Ended | Variance or Change | Variance or Change Pct. | |||||||||||
December 31, 2023 (1) | September 30, 2023 | |||||||||||||
Assets | ||||||||||||||
Interest-earning assets: | ||||||||||||||
Loans receivable, including loans held for sale | $ | 5,726,321 | $ | 5,788,074 | $ | (61,753) | -1.1 | % | ||||||
Taxable investment securities | 1,509,165 | 1,516,393 | (7,228) | -0.5 | % | |||||||||
Tax-exempt investment securities | 15,025 | 15,483 | (458) | -3.0 | % | |||||||||
Other interest-earning assets | 139,740 | 130,829 | 8,911 | 6.8 | % | |||||||||
Total interest-earning assets | 7,390,251 | 7,450,779 | (60,528) | -0.8 | % | |||||||||
Non-interest-earning assets | 554,335 | 568,723 | (14,388) | -2.5 | % | |||||||||
Total assets | $ | 7,944,586 | $ | 8,019,502 | $ | (74,916) | -0.9 | % | ||||||
Liabilities and Stockholders' Equity | ||||||||||||||
Interest-bearing liabilities: | ||||||||||||||
Deposits: | ||||||||||||||
Interest-bearing demand | $ | 2,301,169 | $ | 2,245,831 | $ | 55,338 | 2.5 | % | ||||||
Savings | 664,926 | 719,508 | (54,582) | -7.6 | % | |||||||||
Certificates of deposit | 1,824,316 | 1,968,512 | (144,196) | -7.3 | % | |||||||||
Total interest-bearing deposits | 4,790,411 | 4,933,851 | (143,440) | -2.9 | % | |||||||||
Borrowings: | ||||||||||||||
Federal Home Loan Bank advances | 1,513,497 | 1,386,473 | 127,024 | 9.2 | % | |||||||||
Other borrowings | 142,283 | 158,098 | (15,815) | -10.0 | % | |||||||||
Total borrowings | 1,655,780 | 1,544,571 | 111,209 | 7.2 | % | |||||||||
Total interest-bearing liabilities | 6,446,191 | 6,478,422 | (32,231) | -0.5 | % | |||||||||
Non-interest-bearing liabilities: | ||||||||||||||
Non-interest-bearing deposits | 597,294 | 612,251 | (14,957) | -2.4 | % | |||||||||
Other non-interest-bearing liabilities | 62,387 | 66,701 | (4,314) | -6.5 | % | |||||||||
Total non-interest-bearing liabilities | 659,681 | 678,952 | (19,271) | -2.8 | % | |||||||||
Total liabilities | 7,105,872 | 7,157,374 | (51,502) | -0.7 | % | |||||||||
Stockholders' equity | 838,714 | 862,128 | (23,414) | -2.7 | % | |||||||||
Total liabilities and stockholders' equity | $ | 7,944,586 | $ | 8,019,502 | $ | (74,916) | -0.9 | % | ||||||
Average interest-earning assets to average interest-bearing liabilities | 114.65 | % | 115.01 | % | -0.36 | % | -0.3 | % |
Three Months Ended | Variance or Change | ||||||||||
December 31, 2023 (6) | September 30, 2023 | ||||||||||
Average yield on interest-earning assets: | |||||||||||
Loans receivable, including loans held for sale | 4.43 | % | 4.34 | % | 0.09 | % | |||||
Taxable investment securities | 4.44 | % | 4.29 | % | 0.15 | % | |||||
Tax-exempt investment securities (1) | 2.25 | % | 2.25 | % | — | % | |||||
Other interest-earning assets | 6.87 | % | 6.26 | % | 0.61 | % | |||||
Total interest-earning assets | 4.47 | % | 4.36 | % | 0.11 | % | |||||
Average cost of interest-bearing liabilities: | |||||||||||
Deposits: | |||||||||||
Interest-bearing demand | 2.91 | % | 2.58 | % | 0.33 | % | |||||
Savings | 0.44 | % | 0.47 | % | -0.03 | % | |||||
Certificates of deposit | 2.82 | % | 2.49 | % | 0.33 | % | |||||
Total interest-bearing deposits | 2.53 | % | 2.23 | % | 0.30 | % | |||||
Borrowings: | |||||||||||
Federal Home Loan Bank advances | 3.82 | % | 3.54 | % | 0.28 | % | |||||
Other borrowings | 5.65 | % | 5.46 | % | 0.19 | % | |||||
Total borrowings | 3.97 | % | 3.74 | % | 0.23 | % | |||||
Total interest-bearing liabilities | 2.90 | % | 2.59 | % | 0.31 | % | |||||
Interest rate spread (2) | 1.57 | % | 1.77 | % | -0.20 | % | |||||
Net interest margin (3) | 1.94 | % | 2.10 | % | -0.16 | % | |||||
Non-interest income to average assets (annualized) | -0.81 | % | 0.20 | % | -1.01 | % | |||||
Non-interest expense to average assets (annualized) | 1.50 | % | 1.49 | % | 0.01 | % | |||||
Efficiency ratio (4) | 150.13 | % | 68.97 | % | 81.16 | % | |||||
Return on average assets (annualized) | -0.70 | % | 0.49 | % | -1.19 | % | |||||
Return on average equity (annualized) | -6.59 | % | 4.57 | % | -11.16 | % | |||||
Return on average tangible equity (annualized) (5) | -8.84 | % | 6.07 | % | -14.91 | % |
Five-Quarter Financial Trend Analysis |
(Dollars and Shares in Thousands, Except Per Share Data) | December 31, 2023 (3) | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | ||||||||||||
(Unaudited) | (Unaudited) | (Audited) | (Unaudited) | (Unaudited) | |||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 73,860 | $ | 57,219 | $ | 70,515 | $ | 194,568 | $ | 75,660 | |||||||
Securities available for sale | 1,144,175 | 1,215,633 | 1,227,729 | 1,267,066 | 1,286,354 | ||||||||||||
Securities held to maturity | 141,959 | 143,730 | 146,465 | 149,764 | 153,786 | ||||||||||||
Loans held-for-sale | 14,030 | 3,934 | 9,591 | 5,401 | 12,940 | ||||||||||||
Loans receivable | 5,745,629 | 5,736,049 | 5,829,421 | 5,966,325 | 5,984,133 | ||||||||||||
Less: allowance for credit losses on loans | (44,867) | (46,872) | (48,734) | (49,122) | (48,877) | ||||||||||||
Net loans receivable | 5,700,762 | 5,689,177 | 5,780,687 | 5,917,203 | 5,935,256 | ||||||||||||
Premises and equipment | 45,928 | 46,868 | 48,309 | 49,589 | 50,953 | ||||||||||||
Federal Home Loan Bank stock | 83,372 | 81,509 | 71,734 | 76,319 | 69,022 | ||||||||||||
Accrued interest receivable | 30,258 | 29,766 | 28,133 | 28,794 | 27,368 | ||||||||||||
Goodwill | 210,895 | 210,895 | 210,895 | 210,895 | 210,895 | ||||||||||||
Core deposit intangible | 2,189 | 2,323 | 2,457 | 2,590 | 2,732 | ||||||||||||
Bank owned life insurance | 256,064 | 294,491 | 292,825 | 291,220 | 289,673 | ||||||||||||
Deferred income taxes, net | 46,116 | 56,500 | 51,973 | 53,151 | 51,107 | ||||||||||||
Other real estate owned | 11,982 | 12,956 | 12,956 | 13,410 | 13,410 | ||||||||||||
Other assets | 136,242 | 129,865 | 110,546 | 89,366 | 110,162 | ||||||||||||
Total assets | $ | 7,897,832 | $ | 7,974,866 | $ | 8,064,815 | $ | 8,349,336 | $ | 8,289,318 | |||||||
Liabilities | |||||||||||||||||
Deposits: | |||||||||||||||||
Non-interest-bearing | $ | 584,130 | $ | 595,141 | $ | 609,999 | $ | 617,778 | $ | 650,950 | |||||||
Interest-bearing | 4,735,500 | 4,839,027 | 5,019,184 | 5,185,626 | 5,320,421 | ||||||||||||
Total deposits | 5,319,630 | 5,434,168 | 5,629,183 | 5,803,404 | 5,971,371 | ||||||||||||
Borrowings | 1,667,055 | 1,626,933 | 1,506,812 | 1,611,692 | 1,383,573 | ||||||||||||
Advance payments by borrowers for taxes | 16,742 | 16,907 | 18,338 | 18,706 | 17,307 | ||||||||||||
Other liabilities | 46,427 | 47,324 | 41,198 | 49,304 | 44,427 | ||||||||||||
Total liabilities | 7,049,854 | 7,125,332 | 7,195,531 | 7,483,106 | 7,416,678 | ||||||||||||
Stockholders' Equity | |||||||||||||||||
Common stock | 645 | 652 | 659 | 667 | 674 | ||||||||||||
Paid-in capital | 493,297 | 497,269 | 503,332 | 509,359 | 515,332 | ||||||||||||
Retained earnings | 439,755 | 460,464 | 457,611 | 452,605 | 449,489 | ||||||||||||
Unearned ESOP shares | (21,889) | (22,375) | (22,862) | (23,348) | (23,834) | ||||||||||||
Accumulated other comprehensive loss | (63,830) | (86,476) | (69,456) | (73,053) | (69,021) | ||||||||||||
Total stockholders' equity | 847,978 | 849,534 | 869,284 | 866,230 | 872,640 | ||||||||||||
Total liabilities and stockholders' equity | $ | 7,897,832 | $ | 7,974,866 | $ | 8,064,815 | $ | 8,349,336 | $ | 8,289,318 | |||||||
Consolidated capital ratios | |||||||||||||||||
Equity to assets | 10.74 | % | 10.65 | % | 10.78 | % | 10.37 | % | 10.53 | % | |||||||
Tangible equity to tangible assets (1) | 8.26 | % | 8.20 | % | 8.35 | % | 8.02 | % | 8.16 | % | |||||||
Share data | |||||||||||||||||
Outstanding shares | 64,445 | 65,132 | 65,864 | 66,680 | 67,388 | ||||||||||||
Book value per share | $ | 13.16 | $ | 13.04 | $ | 13.20 | $ | 12.99 | $ | 12.95 | |||||||
Tangible book value per share (2) | $ | 9.85 | $ | 9.77 | $ | 9.96 | $ | 9.79 | $ | 9.78 |
(Dollars in Thousands) | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | ||||||||||||
Loan portfolio composition: | |||||||||||||||||
Commercial loans: | |||||||||||||||||
Multi-family mortgage | $ | 2,651,274 | $ | 2,699,151 | $ | 2,761,775 | $ | 2,835,852 | $ | 2,851,721 | |||||||
Nonresidential mortgage | 947,287 | 946,801 | 968,574 | 1,002,643 | 1,017,341 | ||||||||||||
Commercial business | 144,134 | 149,229 | 146,861 | 162,038 | 177,530 | ||||||||||||
Construction | 221,933 | 230,703 | 226,609 | 215,524 | 186,663 | ||||||||||||
Total commercial loans | 3,964,628 | 4,025,884 | 4,103,819 | 4,216,057 | 4,233,255 | ||||||||||||
One- to four-family residential mortgage | 1,746,065 | 1,689,051 | 1,700,559 | 1,713,343 | 1,719,514 | ||||||||||||
Consumer loans: | |||||||||||||||||
Home equity loans | 43,517 | 42,896 | 43,549 | 44,376 | 45,690 | ||||||||||||
Other consumer | 2,728 | 2,644 | 2,549 | 2,592 | 2,648 | ||||||||||||
Total consumer loans | 46,245 | 45,540 | 46,098 | 46,968 | 48,338 | ||||||||||||
Total loans, excluding yield adjustments | 5,756,938 | 5,760,475 | 5,850,476 | 5,976,368 | 6,001,107 | ||||||||||||
Unaccreted yield adjustments | (11,309) | (24,426) | (21,055) | (10,043) | (16,974) | ||||||||||||
Loans receivable, net of yield adjustments | 5,745,629 | 5,736,049 | 5,829,421 | 5,966,325 | 5,984,133 | ||||||||||||
Less: allowance for credit losses on loans | (44,867) | (46,872) | (48,734) | (49,122) | (48,877) | ||||||||||||
Net loans receivable | $ | 5,700,762 | $ | 5,689,177 | $ | 5,780,687 | $ | 5,917,203 | $ | 5,935,256 | |||||||
Asset quality: | |||||||||||||||||
Nonperforming assets: | |||||||||||||||||
Accruing loans - 90 days and over past due | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||
Nonaccrual loans | 28,089 | 37,912 | 42,627 | 44,026 | 40,549 | ||||||||||||
Total nonperforming loans | 28,089 | 37,912 | 42,627 | 44,026 | 40,549 | ||||||||||||
Nonaccrual loans held-for-sale | 9,700 | — | — | — | 8,650 | ||||||||||||
Other real estate owned | 11,982 | 12,956 | 12,956 | 13,410 | 13,410 | ||||||||||||
Total nonperforming assets | $ | 49,771 | $ | 50,868 | $ | 55,583 | $ | 57,436 | $ | 62,609 | |||||||
Nonperforming loans (% total loans) | 0.49 | % | 0.66 | % | 0.73 | % | 0.74 | % | 0.68 | % | |||||||
Nonperforming assets (% total assets) | 0.63 | % | 0.64 | % | 0.69 | % | 0.69 | % | 0.76 | % | |||||||
Classified loans | $ | 94,676 | $ | 98,616 | $ | 93,526 | $ | 103,461 | $ | 86,069 | |||||||
Allowance for credit losses on loans (ACL): | |||||||||||||||||
ACL to total loans | 0.78 | % | 0.81 | % | 0.83 | % | 0.82 | % | 0.81 | % | |||||||
ACL to nonperforming loans | 159.73 | % | 123.63 | % | 114.33 | % | 111.57 | % | 120.54 | % | |||||||
Net charge-offs | $ | 4,110 | $ | 2,107 | $ | 82 | $ | 206 | $ | 407 | |||||||
Average net charge-off rate (annualized) | 0.29 | % | 0.15 | % | 0.01 | % | 0.01 | % | 0.03 | % |
(Dollars in Thousands) | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | ||||||||||||
Funding composition: | |||||||||||||||||
Deposits: | |||||||||||||||||
Non-interest-bearing deposits | $ | 584,130 | $ | 595,141 | $ | 609,999 | $ | 617,778 | $ | 650,950 | |||||||
Interest-bearing demand | 2,347,262 | 2,236,573 | 2,252,912 | 2,285,799 | 2,316,485 | ||||||||||||
Savings | 646,182 | 689,163 | 748,721 | 811,483 | 901,514 | ||||||||||||
Certificates of deposit (retail) | 1,283,676 | 1,300,382 | 1,377,028 | 1,327,343 | 1,354,907 | ||||||||||||
Certificates of deposit (brokered and listing service) | 458,380 | 612,909 | 640,523 | 761,001 | 747,515 | ||||||||||||
Interest-bearing deposits | 4,735,500 | 4,839,027 | 5,019,184 | 5,185,626 | 5,320,421 | ||||||||||||
Total deposits | 5,319,630 | 5,434,168 | 5,629,183 | 5,803,404 | 5,971,371 | ||||||||||||
Borrowings: | |||||||||||||||||
Federal Home Loan Bank advances | 1,432,055 | 1,456,933 | 1,281,812 | 1,156,692 | 1,256,573 | ||||||||||||
Overnight borrowings | 235,000 | 170,000 | 225,000 | 455,000 | 127,000 | ||||||||||||
Total borrowings | 1,667,055 | 1,626,933 | 1,506,812 | 1,611,692 | 1,383,573 | ||||||||||||
Total funding | $ | 6,986,685 | $ | 7,061,101 | $ | 7,135,995 | $ | 7,415,096 | $ | 7,354,944 | |||||||
Loans as a % of deposits | 107.4 | % | 104.8 | % | 102.9 | % | 102.1 | % | 99.6 | % | |||||||
Deposits as a % of total funding | 76.1 | % | 77.0 | % | 78.9 | % | 78.3 | % | 81.2 | % | |||||||
Borrowings as a % of total funding | 23.9 | % | 23.0 | % | 21.1 | % | 21.7 | % | 18.8 | % | |||||||
Uninsured deposits: | |||||||||||||||||
Uninsured deposits (reported) (1) | $ | 1,813,122 | $ | 1,734,288 | $ | 1,771,416 | $ | 1,678,051 | $ | 1,815,854 | |||||||
Uninsured deposits (adjusted) (2) | $ | 694,510 | $ | 683,265 | $ | 710,377 | $ | 705,727 | $ | 794,407 |
Three Months Ended | |||||||||||||||||
(Dollars and Shares in Thousands, Except Per Share Data) | December 31, 2023 (1) | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | ||||||||||||
Interest income | |||||||||||||||||
Loans | $ | 63,384 | $ | 62,769 | $ | 62,044 | $ | 60,172 | $ | 57,996 | |||||||
Taxable investment securities | 16,756 | 16,265 | 15,736 | 15,459 | 13,221 | ||||||||||||
Tax-exempt investment securities | 84 | 87 | 91 | 99 | 219 | ||||||||||||
Other interest-earning assets | 2,401 | 2,047 | 1,821 | 1,441 | 1,005 | ||||||||||||
Total interest income | 82,625 | 81,168 | 79,692 | 77,171 | 72,441 | ||||||||||||
Interest expense | |||||||||||||||||
Deposits | 30,340 | 27,567 | 26,226 | 22,246 | 18,822 | ||||||||||||
Borrowings | 16,446 | 14,441 | 13,286 | 12,554 | 8,836 | ||||||||||||
Total interest expense | 46,786 | 42,008 | 39,512 | 34,800 | 27,658 | ||||||||||||
Net interest income | 35,839 | 39,160 | 40,180 | 42,371 | 44,783 | ||||||||||||
Provision for (reversal of) credit losses | 2,105 | 245 | (306) | 451 | 1,671 | ||||||||||||
Net interest income after provision for (reversal of) credit losses | 33,734 | 38,915 | 40,486 | 41,920 | 43,112 | ||||||||||||
Non-interest income | |||||||||||||||||
Fees and service charges | 624 | 748 | 699 | 910 | 734 | ||||||||||||
Loss on sale and call of securities | (18,135) | — | — | — | (15,227) | ||||||||||||
Gain (loss) on sale of loans | 104 | 215 | 199 | (2,373) | 134 | ||||||||||||
Loss on sale of other real estate owned | (974) | — | (139) | — | — | ||||||||||||
Income from bank owned life insurance | 1,162 | 1,666 | 1,605 | 1,581 | 1,761 | ||||||||||||
Electronic banking fees and charges | 396 | 367 | 399 | 457 | 397 | ||||||||||||
Other income | 811 | 1,014 | 903 | 1,071 | 3,723 | ||||||||||||
Total non-interest income | (16,012) | 4,010 | 3,666 | 1,646 | (8,478) | ||||||||||||
Non-interest expense | |||||||||||||||||
Salaries and employee benefits | 17,282 | 17,761 | 17,315 | 18,005 | 19,921 | ||||||||||||
Net occupancy expense of premises | 2,674 | 2,758 | 2,862 | 3,097 | 2,987 | ||||||||||||
Equipment and systems | 3,814 | 3,801 | 3,511 | 3,537 | 3,867 | ||||||||||||
Advertising and marketing | 301 | 228 | 231 | 413 | 731 | ||||||||||||
Federal deposit insurance premium | 1,495 | 1,524 | 1,455 | 1,546 | 1,226 | ||||||||||||
Directors' compensation | 393 | 393 | 345 | 340 | 339 | ||||||||||||
Other expense | 3,808 | 3,309 | 3,042 | 3,414 | 3,579 | ||||||||||||
Total non-interest expense | 29,767 | 29,774 | 28,761 | 30,352 | 32,650 | ||||||||||||
(Loss) income before income taxes | (12,045) | 13,151 | 15,391 | 13,214 | 1,984 | ||||||||||||
Income taxes | 1,782 | 3,309 | 3,378 | 2,902 | 33 | ||||||||||||
Net (loss) income | $ | (13,827) | $ | 9,842 | $ | 12,013 | $ | 10,312 | $ | 1,951 | |||||||
Net (loss) income per common share (EPS) | |||||||||||||||||
Basic | $ | (0.22) | $ | 0.16 | $ | 0.19 | $ | 0.16 | $ | 0.03 | |||||||
Diluted | $ | (0.22) | $ | 0.16 | $ | 0.19 | $ | 0.16 | $ | 0.03 | |||||||
Dividends declared | |||||||||||||||||
Cash dividends declared per common share | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.11 | |||||||
Cash dividends declared | $ | 6,882 | $ | 6,989 | $ | 7,007 | $ | 7,196 | $ | 7,172 | |||||||
Dividend payout ratio | -49.8 | % | 71.0 | % | 58.3 | % | 69.8 | % | 367.6 | % | |||||||
Weighted average number of common shares outstanding | |||||||||||||||||
Basic | 62,299 | 63,014 | 63,667 | 64,769 | 65,030 | ||||||||||||
Diluted | 62,367 | 63,061 | 63,667 | 64,783 | 65,038 |
Three Months Ended | |||||||||||||||||
(Dollars in Thousands) | December 31, 2023 (1) | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | ||||||||||||
Assets | |||||||||||||||||
Interest-earning assets: | |||||||||||||||||
Loans receivable, including loans held-for-sale | $ | 5,726,321 | $ | 5,788,074 | $ | 5,932,541 | $ | 5,986,669 | $ | 5,839,903 | |||||||
Taxable investment securities | 1,509,165 | 1,516,393 | 1,529,582 | 1,558,222 | 1,527,578 | ||||||||||||
Tax-exempt investment securities | 15,025 | 15,483 | 16,346 | 17,663 | 37,917 | ||||||||||||
Other interest-earning assets | 139,740 | 130,829 | 128,158 | 131,682 | 114,175 | ||||||||||||
Total interest-earning assets | 7,390,251 | 7,450,779 | 7,606,627 | 7,694,236 | 7,519,573 | ||||||||||||
Non-interest-earning assets | 554,335 | 568,723 | 556,962 | 575,009 | 550,519 | ||||||||||||
Total assets | $ | 7,944,586 | $ | 8,019,502 | $ | 8,163,589 | $ | 8,269,245 | $ | 8,070,092 | |||||||
Liabilities and Stockholders' Equity | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||
Deposits: | |||||||||||||||||
Interest-bearing demand | $ | 2,301,169 | $ | 2,245,831 | $ | 2,321,120 | $ | 2,363,762 | $ | 2,359,977 | |||||||
Savings | 664,926 | 719,508 | 774,854 | 858,673 | 931,584 | ||||||||||||
Certificates of deposit | 1,824,316 | 1,968,512 | 2,057,818 | 2,069,396 | 2,192,722 | ||||||||||||
Total interest-bearing deposits | 4,790,411 | 4,933,851 | 5,153,792 | 5,291,831 | 5,484,283 | ||||||||||||
Borrowings: | |||||||||||||||||
Federal Home Loan Bank advances | 1,513,497 | 1,386,473 | 1,374,316 | 1,402,269 | 997,148 | ||||||||||||
Other borrowings | 142,283 | 158,098 | 100,055 | 1,611 | — | ||||||||||||
Total borrowings | 1,655,780 | 1,544,571 | 1,474,371 | 1,403,880 | 997,148 | ||||||||||||
Total interest-bearing liabilities | 6,446,191 | 6,478,422 | 6,628,163 | 6,695,711 | 6,481,431 | ||||||||||||
Non-interest-bearing liabilities: | |||||||||||||||||
Non-interest-bearing deposits | 597,294 | 612,251 | 608,765 | 634,324 | 666,846 | ||||||||||||
Other non-interest-bearing liabilities | 62,387 | 66,701 | 64,970 | 60,327 | 56,721 | ||||||||||||
Total non-interest-bearing liabilities | 659,681 | 678,952 | 673,735 | 694,651 | 723,567 | ||||||||||||
Total liabilities | 7,105,872 | 7,157,374 | 7,301,898 | 7,390,362 | 7,204,998 | ||||||||||||
Stockholders' equity | 838,714 | 862,128 | 861,691 | 878,883 | 865,094 | ||||||||||||
Total liabilities and stockholders' equity | $ | 7,944,586 | $ | 8,019,502 | $ | 8,163,589 | $ | 8,269,245 | $ | 8,070,092 | |||||||
Average interest-earning assets to average interest-bearing liabilities | 114.65 | % | 115.01 | % | 114.76 | % | 114.91 | % | 116.02 | % |
Three Months Ended | |||||||||||||||||
December 31, 2023 (6) | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | |||||||||||||
Average yield on interest-earning assets: | |||||||||||||||||
Loans receivable, including loans held-for-sale | 4.43 | % | 4.34 | % | 4.18 | % | 4.02 | % | 3.97 | % | |||||||
Taxable investment securities | 4.44 | % | 4.29 | % | 4.12 | % | 3.97 | % | 3.46 | % | |||||||
Tax-exempt investment securities (1) | 2.25 | % | 2.25 | % | 2.23 | % | 2.23 | % | 2.32 | % | |||||||
Other interest-earning assets | 6.87 | % | 6.26 | % | 5.68 | % | 4.38 | % | 3.52 | % | |||||||
Total interest-earning assets | 4.47 | % | 4.36 | % | 4.19 | % | 4.01 | % | 3.85 | % | |||||||
Average cost of interest-bearing liabilities: | |||||||||||||||||
Deposits: | |||||||||||||||||
Interest-bearing demand | 2.91 | % | 2.58 | % | 2.38 | % | 2.01 | % | 1.63 | % | |||||||
Savings | 0.44 | % | 0.47 | % | 0.48 | % | 0.41 | % | 0.41 | % | |||||||
Certificates of deposit | 2.82 | % | 2.49 | % | 2.24 | % | 1.84 | % | 1.50 | % | |||||||
Total interest-bearing deposits | 2.53 | % | 2.23 | % | 2.04 | % | 1.68 | % | 1.37 | % | |||||||
Borrowings: | |||||||||||||||||
Federal Home Loan Bank advances | 3.82 | % | 3.54 | % | 3.51 | % | 3.58 | % | 3.54 | % | |||||||
Other borrowings | 5.65 | % | 5.46 | % | 4.89 | % | 5.15 | % | — | % | |||||||
Total borrowings | 3.97 | % | 3.74 | % | 3.60 | % | 3.58 | % | 3.54 | % | |||||||
Total interest-bearing liabilities | 2.90 | % | 2.59 | % | 2.38 | % | 2.08 | % | 1.71 | % | |||||||
Interest rate spread (2) | 1.57 | % | 1.77 | % | 1.81 | % | 1.93 | % | 2.14 | % | |||||||
Net interest margin (3) | 1.94 | % | 2.10 | % | 2.11 | % | 2.20 | % | 2.38 | % | |||||||
Non-interest income to average assets (annualized) | -0.81 | % | 0.20 | % | 0.18 | % | 0.08 | % | -0.42 | % | |||||||
Non-interest expense to average assets (annualized) | 1.50 | % | 1.49 | % | 1.41 | % | 1.47 | % | 1.62 | % | |||||||
Efficiency ratio (4) | 150.13 | % | 68.97 | % | 65.60 | % | 68.96 | % | 89.93 | % | |||||||
Return on average assets (annualized) | -0.70 | % | 0.49 | % | 0.59 | % | 0.50 | % | 0.10 | % | |||||||
Return on average equity (annualized) | -6.59 | % | 4.57 | % | 5.58 | % | 4.69 | % | 0.90 | % | |||||||
Return on average tangible equity (annualized) (5) | -8.84 | % | 6.07 | % | 7.41 | % | 6.20 | % | 1.20 | % |
Three Months Ended | |||||||||||||||||
(Dollars and Shares in Thousands, Except Per Share Data) | December 31, 2023 (1) | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | ||||||||||||
Adjusted net income: | |||||||||||||||||
Net (loss) income (GAAP) | $ | (13,827) | $ | 9,842 | $ | 12,013 | $ | 10,312 | $ | 1,951 | |||||||
Non-recurring transactions - net of tax: | |||||||||||||||||
Branch consolidation expenses | — | — | — | 568 | — | ||||||||||||
Net effect of sale and call of securities | 12,876 | — | — | — | 10,811 | ||||||||||||
Net effect of sale of other assets | — | — | — | — | (2,081) | ||||||||||||
Severance expense from workforce realignment | — | — | — | — | 538 | ||||||||||||
Net effect of bank-owned life insurance restructure | 6,286 | — | — | — | — | ||||||||||||
Adjusted net income | $ | 5,335 | $ | 9,842 | $ | 12,013 | $ | 10,880 | $ | 11,219 | |||||||
Calculation of pre-tax, pre-provision net revenue: | |||||||||||||||||
Net (loss) income (GAAP) | $ | (13,827) | $ | 9,842 | $ | 12,013 | $ | 10,312 | $ | 1,951 | |||||||
Adjustments to net income (GAAP): | |||||||||||||||||
Provision for income taxes | 1,782 | 3,309 | 3,378 | 2,902 | 33 | ||||||||||||
Provision for (reversal of) credit losses | 2,105 | 245 | (306) | 451 | 1,671 | ||||||||||||
Pre-tax, pre-provision net revenue (non-GAAP) | $ | (9,940) | $ | 13,396 | $ | 15,085 | $ | 13,665 | $ | 3,655 | |||||||
Adjusted earnings per share: | |||||||||||||||||
Weighted average common shares - basic | 62,299 | 63,014 | 63,667 | 64,769 | 65,030 | ||||||||||||
Weighted average common shares - diluted | 62,367 | 63,061 | 63,667 | 64,783 | 65,038 | ||||||||||||
Earnings per share - basic (GAAP) | $ | (0.22) | $ | 0.16 | $ | 0.19 | $ | 0.16 | $ | 0.03 | |||||||
Earnings per share - diluted (GAAP) | $ | (0.22) | $ | 0.16 | $ | 0.19 | $ | 0.16 | $ | 0.03 | |||||||
Adjusted earnings per share - basic (non-GAAP) | $ | 0.09 | $ | 0.16 | $ | 0.19 | $ | 0.17 | $ | 0.17 | |||||||
Adjusted earnings per share - diluted (non-GAAP) | $ | 0.09 | $ | 0.16 | $ | 0.19 | $ | 0.17 | $ | 0.17 | |||||||
Pre-tax, pre-provision net revenue per share: | |||||||||||||||||
Pre-tax, pre-provision net revenue per share - basic (non-GAAP) | $ | (0.16) | $ | 0.21 | $ | 0.24 | $ | 0.21 | $ | 0.06 | |||||||
Pre-tax, pre-provision net revenue per share - diluted (non-GAAP) | $ | (0.16) | $ | 0.21 | $ | 0.24 | $ | 0.21 | $ | 0.06 | |||||||
Adjusted return on average assets: | |||||||||||||||||
Total average assets | $ | 7,944,586 | $ | 8,019,502 | $ | 8,163,589 | $ | 8,269,245 | $ | 8,070,092 | |||||||
Return on average assets (GAAP) | -0.70 | % | 0.49 | % | 0.59 | % | 0.50 | % | 0.10 | % | |||||||
Adjusted return on average assets (non-GAAP) | 0.27 | % | 0.49 | % | 0.59 | % | 0.53 | % | 0.56 | % | |||||||
Adjusted return on average equity: | |||||||||||||||||
Total average equity | $ | 838,714 | $ | 862,128 | $ | 861,691 | $ | 878,883 | $ | 865,094 | |||||||
Return on average equity (GAAP) | -6.59 | % | 4.57 | % | 5.58 | % | 4.69 | % | 0.90 | % | |||||||
Adjusted return on average equity (non-GAAP) | 2.54 | % | 4.57 | % | 5.58 | % | 4.95 | % | 5.19 | % |
Three Months Ended | |||||||||||||||||
(Dollars and Shares in Thousands, Except Per Share Data) | December 31, 2023 (1) | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | ||||||||||||
Adjusted return on average tangible equity: | |||||||||||||||||
Total average equity | $ | 838,714 | $ | 862,128 | $ | 861,691 | $ | 878,883 | $ | 865,094 | |||||||
Less: average goodwill | (210,895) | (210,895) | (210,895) | (210,895) | (210,895) | ||||||||||||
Less: average other intangible assets | (2,277) | (2,411) | (2,544) | (2,683) | (2,826) | ||||||||||||
Total average tangible equity | $ | 625,542 | $ | 648,822 | $ | 648,252 | $ | 665,305 | $ | 651,373 | |||||||
Return on average tangible equity (non-GAAP) | -8.84 | % | 6.07 | % | 7.41 | % | 6.20 | % | 1.20 | % | |||||||
Adjusted return on average tangible equity (non-GAAP) | 3.41 | % | 6.07 | % | 7.41 | % | 6.54 | % | 6.89 | % | |||||||
Adjusted non-interest expense ratio: | |||||||||||||||||
Non-interest expense (GAAP) | $ | 29,767 | $ | 29,774 | $ | 28,761 | $ | 30,352 | $ | 32,650 | |||||||
Non-recurring transactions: | |||||||||||||||||
Branch consolidation expenses | — | — | — | (800) | — | ||||||||||||
Severance expense from workforce realignment | — | — | — | — | (757) | ||||||||||||
Non-interest expense (non-GAAP) | $ | 29,767 | $ | 29,774 | $ | 28,761 | $ | 29,552 | $ | 31,893 | |||||||
Non-interest expense ratio (GAAP) | 1.50 | % | 1.49 | % | 1.41 | % | 1.47 | % | 1.62 | % | |||||||
Adjusted non-interest expense ratio (non-GAAP) | 1.50 | % | 1.49 | % | 1.41 | % | 1.43 | % | 1.58 | % | |||||||
Adjusted efficiency ratio: | |||||||||||||||||
Non-interest expense (non-GAAP) | $ | 29,767 | $ | 29,774 | $ | 28,761 | $ | 29,552 | $ | 31,893 | |||||||
Net interest income (GAAP) | $ | 35,839 | $ | 39,160 | $ | 40,180 | $ | 42,371 | $ | 44,783 | |||||||
Total non-interest income (GAAP) | (16,012) | 4,010 | 3,666 | 1,646 | (8,478) | ||||||||||||
Non-recurring transactions: | |||||||||||||||||
Net effect of sale and call of securities | 18,135 | — | — | — | 15,227 | ||||||||||||
Net effect of sale of other assets | — | — | — | — | (2,931) | ||||||||||||
Net effect of bank-owned life insurance restructure | 573 | — | — | — | — | ||||||||||||
Total revenue (non-GAAP) | $ | 38,535 | $ | 43,170 | $ | 43,846 | $ | 44,017 | $ | 48,601 | |||||||
Efficiency ratio (GAAP) | 150.13 | % | 68.97 | % | 65.60 | % | 68.96 | % | 89.93 | % | |||||||
Adjusted efficiency ratio (non-GAAP) | 77.25 | % | 68.97 | % | 65.60 | % | 67.14 | % | 65.62 | % |
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