Maryland | 001-37399 | 30-0870244 | ||||||
(State or Other Jurisdiction
of Incorporation)
|
(Commission File Number) |
(IRS Employer
Identification No.)
|
||||||
120 Passaic Avenue Fairfield, New Jersey |
07004 |
|||||||
(Address of Principal Executive Offices) |
(Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, $0.01 par value | KRNY | The NASDAQ Stock Market LLC |
Exhibit Number | Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
KEARNY FINANCIAL CORP. |
||||||||
Date: January 30, 2025 |
By: | /s/ Sean Byrnes | ||||||
Sean Byrnes | ||||||||
Executive Vice President and Chief Financial Officer |
Linked-Quarter Comparative Financial Analysis |
(Dollars and Shares in Thousands, Except Per Share Data) |
December 31, 2024 |
September 30, 2024 |
Variance or Change |
Variance or Change Pct. |
||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 141,554 | $ | 155,574 | $ | (14,020) | -9.0 | % | ||||||
Securities available for sale | 1,018,279 | 1,070,811 | (52,532) | -4.9 | % | |||||||||
Securities held to maturity | 127,266 | 132,256 | (4,990) | -3.8 | % | |||||||||
Loans held-for-sale | 5,695 | 8,866 | (3,171) | -35.8 | % | |||||||||
Loans receivable | 5,791,758 | 5,784,246 | 7,512 | 0.1 | % | |||||||||
Less: allowance for credit losses on loans | (44,457) | (44,923) | (466) | -1.0 | % | |||||||||
Net loans receivable | 5,747,301 | 5,739,323 | 7,978 | 0.1 | % | |||||||||
Premises and equipment | 45,127 | 45,189 | (62) | -0.1 | % | |||||||||
Federal Home Loan Bank stock | 64,443 | 57,706 | 6,737 | 11.7 | % | |||||||||
Accrued interest receivable | 27,772 | 29,467 | (1,695) | -5.8 | % | |||||||||
Goodwill | 113,525 | 113,525 | — | — | % | |||||||||
Core deposit intangible | 1,679 | 1,805 | (126) | -7.0 | % | |||||||||
Bank owned life insurance | 301,339 | 300,186 | 1,153 | 0.4 | % | |||||||||
Deferred income taxes, net | 53,325 | 50,131 | 3,194 | 6.4 | % | |||||||||
Other assets | 84,080 | 67,540 | 16,540 | 24.5 | % | |||||||||
Total assets | $ | 7,731,385 | $ | 7,772,379 | $ | (40,994) | -0.5 | % | ||||||
Liabilities | ||||||||||||||
Deposits: | ||||||||||||||
Non-interest-bearing | $ | 601,510 | $ | 592,099 | $ | 9,411 | 1.6 | % | ||||||
Interest-bearing | 5,069,550 | 4,878,413 | 191,137 | 3.9 | % | |||||||||
Total deposits | 5,671,060 | 5,470,512 | 200,548 | 3.7 | % | |||||||||
Borrowings | 1,258,949 | 1,479,888 | (220,939) | -14.9 | % | |||||||||
Advance payments by borrowers for taxes | 17,986 | 17,824 | 162 | 0.9 | % | |||||||||
Other liabilities | 38,537 | 52,618 | (14,081) | -26.8 | % | |||||||||
Total liabilities | 6,986,532 | 7,020,842 | (34,310) | -0.5 | % | |||||||||
Stockholders' Equity | ||||||||||||||
Common stock | 646 | 646 | — | — | % | |||||||||
Paid-in capital | 494,092 | 493,523 | 569 | 0.1 | % | |||||||||
Retained earnings | 342,155 | 342,522 | (367) | -0.1 | % | |||||||||
Unearned ESOP shares | (19,943) | (20,430) | 487 | 2.4 | % | |||||||||
Accumulated other comprehensive loss | (72,097) | (64,724) | (7,373) | -11.4 | % | |||||||||
Total stockholders' equity | 744,853 | 751,537 | (6,684) | -0.9 | % | |||||||||
Total liabilities and stockholders' equity | $ | 7,731,385 | $ | 7,772,379 | $ | (40,994) | -0.5 | % | ||||||
Consolidated capital ratios | ||||||||||||||
Equity to assets | 9.63 | % | 9.67 | % | -0.04 | % | ||||||||
Tangible equity to tangible assets (1) |
8.27 | % | 8.31 | % | -0.04 | % | ||||||||
Share data | ||||||||||||||
Outstanding shares | 64,580 | 64,580 | — | — | % | |||||||||
Book value per share | $ | 11.53 | $ | 11.64 | $ | (0.11) | -0.9 | % | ||||||
Tangible book value per share (2) |
$ | 9.75 | $ | 9.85 | $ | (0.10) | -1.0 | % |
(Dollars and Shares in Thousands, Except Per Share Data) |
Three Months Ended | Variance or Change |
Variance or Change Pct. |
|||||||||||
December 31, 2024 |
September 30, 2024 |
|||||||||||||
Interest income | ||||||||||||||
Loans | $ | 65,408 | $ | 66,331 | $ | (923) | -1.4 | % | ||||||
Taxable investment securities | 13,803 | 14,384 | (581) | -4.0 | % | |||||||||
Tax-exempt investment securities | 59 | 71 | (12) | -16.9 | % | |||||||||
Other interest-earning assets | 2,215 | 2,466 | (251) | -10.2 | % | |||||||||
Total interest income | 81,485 | 83,252 | (1,767) | -2.1 | % | |||||||||
Interest expense | ||||||||||||||
Deposits | 36,721 | 35,018 | 1,703 | 4.9 | % | |||||||||
Borrowings | 12,152 | 15,788 | (3,636) | -23.0 | % | |||||||||
Total interest expense | 48,873 | 50,806 | (1,933) | -3.8 | % | |||||||||
Net interest income | 32,612 | 32,446 | 166 | 0.5 | % | |||||||||
Provision for credit losses | 107 | 108 | (1) | -0.9 | % | |||||||||
Net interest income after provision for credit losses | 32,505 | 32,338 | 167 | 0.5 | % | |||||||||
Non-interest income | ||||||||||||||
Fees and service charges | 627 | 635 | (8) | -1.3 | % | |||||||||
Gain on sale of loans | 304 | 200 | 104 | 52.0 | % | |||||||||
Income from bank owned life insurance | 2,619 | 2,567 | 52 | 2.0 | % | |||||||||
Electronic banking fees and charges | 493 | 391 | 102 | 26.1 | % | |||||||||
Other income | 830 | 833 | (3) | -0.4 | % | |||||||||
Total non-interest income | 4,873 | 4,626 | 247 | 5.3 | % | |||||||||
Non-interest expense | ||||||||||||||
Salaries and employee benefits | 17,579 | 17,498 | 81 | 0.5 | % | |||||||||
Net occupancy expense of premises | 2,831 | 2,798 | 33 | 1.2 | % | |||||||||
Equipment and systems | 3,892 | 3,860 | 32 | 0.8 | % | |||||||||
Advertising and marketing | 311 | 342 | (31) | -9.1 | % | |||||||||
Federal deposit insurance premium | 1,503 | 1,563 | (60) | -3.8 | % | |||||||||
Directors' compensation | 361 | 361 | — | — | % | |||||||||
Other expense | 3,084 | 3,364 | (280) | -8.3 | % | |||||||||
Total non-interest expense | 29,561 | 29,786 | (225) | -0.8 | % | |||||||||
Income before income taxes | 7,817 | 7,178 | 639 | 8.9 | % | |||||||||
Income taxes | 1,251 | 1,086 | 165 | 15.2 | % | |||||||||
Net income | $ | 6,566 | $ | 6,092 | $ | 474 | 7.8 | % | ||||||
Net income per common share (EPS) | ||||||||||||||
Basic | $ | 0.11 | $ | 0.10 | $ | 0.01 | ||||||||
Diluted | $ | 0.10 | $ | 0.10 | $ | — | ||||||||
Dividends declared | ||||||||||||||
Cash dividends declared per common share | $ | 0.11 | $ | 0.11 | $ | — | ||||||||
Cash dividends declared | $ | 6,933 | $ | 6,896 | $ | 37 | ||||||||
Dividend payout ratio | 105.6 | % | 113.2 | % | -7.6 | % | ||||||||
Weighted average number of common shares outstanding | ||||||||||||||
Basic | 62,443 | 62,389 | 54 | |||||||||||
Diluted | 62,576 | 62,420 | 156 |
(Dollars in Thousands) | Three Months Ended | Variance or Change |
Variance or Change Pct. |
|||||||||||
December 31, 2024 |
September 30, 2024 |
|||||||||||||
Assets | ||||||||||||||
Interest-earning assets: | ||||||||||||||
Loans receivable, including loans held for sale | $ | 5,762,053 | $ | 5,761,593 | $ | 460 | — | % | ||||||
Taxable investment securities | 1,285,800 | 1,314,945 | (29,145) | -2.2 | % | |||||||||
Tax-exempt investment securities | 9,711 | 12,244 | (2,533) | -20.7 | % | |||||||||
Other interest-earning assets | 116,354 | 131,981 | (15,627) | -11.8 | % | |||||||||
Total interest-earning assets | 7,173,918 | 7,220,763 | (46,845) | -0.6 | % | |||||||||
Non-interest-earning assets | 459,982 | 467,670 | (7,688) | -1.6 | % | |||||||||
Total assets | $ | 7,633,900 | $ | 7,688,433 | $ | (54,533) | -0.7 | % | ||||||
Liabilities and Stockholders' Equity | ||||||||||||||
Interest-bearing liabilities: | ||||||||||||||
Deposits: | ||||||||||||||
Interest-bearing demand | $ | 2,314,378 | $ | 2,282,608 | $ | 31,770 | 1.4 | % | ||||||
Savings | 711,801 | 668,240 | 43,561 | 6.5 | % | |||||||||
Certificates of deposit (retail) | 1,211,985 | 1,203,770 | 8,215 | 0.7 | % | |||||||||
Certificates of deposit (brokered and listing service) | 735,736 | 551,819 | 183,917 | 33.3 | % | |||||||||
Total interest-bearing deposits | 4,973,900 | 4,706,437 | 267,463 | 5.7 | % | |||||||||
Borrowings: | ||||||||||||||
Federal Home Loan Bank advances | 1,085,455 | 1,325,583 | (240,128) | -18.1 | % | |||||||||
Other borrowings | 156,522 | 237,011 | (80,489) | -34.0 | % | |||||||||
Total borrowings | 1,241,977 | 1,562,594 | (320,617) | -20.5 | % | |||||||||
Total interest-bearing liabilities | 6,215,877 | 6,269,031 | (53,154) | -0.8 | % | |||||||||
Non-interest-bearing liabilities: | ||||||||||||||
Non-interest-bearing deposits | 604,915 | 599,095 | 5,820 | 1.0 | % | |||||||||
Other non-interest-bearing liabilities | 65,258 | 69,629 | (4,371) | -6.3 | % | |||||||||
Total non-interest-bearing liabilities | 670,173 | 668,724 | 1,449 | 0.2 | % | |||||||||
Total liabilities | 6,886,050 | 6,937,755 | (51,705) | -0.7 | % | |||||||||
Stockholders' equity | 747,850 | 750,678 | (2,828) | -0.4 | % | |||||||||
Total liabilities and stockholders' equity | $ | 7,633,900 | $ | 7,688,433 | $ | (54,533) | -0.7 | % | ||||||
Average interest-earning assets to average interest-bearing liabilities | 115.41 | % | 115.18 | % | 0.23 | % | 0.2 | % |
Three Months Ended | Variance or Change |
||||||||||
December 31, 2024 |
September 30, 2024 |
||||||||||
Average yield on interest-earning assets: | |||||||||||
Loans receivable, including loans held for sale | 4.54 | % | 4.61 | % | -0.07 | % | |||||
Taxable investment securities | 4.29 | % | 4.38 | % | -0.09 | % | |||||
Tax-exempt investment securities (1) |
2.42 | % | 2.32 | % | 0.10 | % | |||||
Other interest-earning assets | 7.62 | % | 7.47 | % | 0.15 | % | |||||
Total interest-earning assets | 4.54 | % | 4.61 | % | -0.07 | % | |||||
Average cost of interest-bearing liabilities: | |||||||||||
Deposits: | |||||||||||
Interest-bearing demand | 2.96 | % | 3.13 | % | -0.17 | % | |||||
Savings | 1.29 | % | 1.05 | % | 0.24 | % | |||||
Certificates of deposit (retail) | 4.06 | % | 4.12 | % | -0.06 | % | |||||
Certificates of deposit (brokered and listing service) | 2.71 | % | 2.18 | % | 0.53 | % | |||||
Total interest-bearing deposits | 2.95 | % | 2.98 | % | -0.03 | % | |||||
Borrowings: | |||||||||||
Federal Home Loan Bank advances | 3.78 | % | 3.82 | % | -0.04 | % | |||||
Other borrowings | 4.88 | % | 5.28 | % | -0.40 | % | |||||
Total borrowings | 3.91 | % | 4.04 | % | -0.13 | % | |||||
Total interest-bearing liabilities | 3.15 | % | 3.24 | % | -0.09 | % | |||||
Interest rate spread (2) |
1.39 | % | 1.37 | % | 0.02 | % | |||||
Net interest margin (3) |
1.82 | % | 1.80 | % | 0.02 | % | |||||
Non-interest income to average assets (annualized) | 0.26 | % | 0.24 | % | 0.02 | % | |||||
Non-interest expense to average assets (annualized) | 1.55 | % | 1.55 | % | — | % | |||||
Efficiency ratio (4) |
78.86 | % | 80.35 | % | -1.49 | % | |||||
Return on average assets (annualized) | 0.34 | % | 0.32 | % | 0.02 | % | |||||
Return on average equity (annualized) | 3.51 | % | 3.25 | % | 0.26 | % | |||||
Return on average tangible equity (annualized) (5) |
4.21 | % | 3.89 | % | 0.32 | % |
Five-Quarter Financial Trend Analysis |
(Dollars and Shares in Thousands, Except Per Share Data) |
December 31, 2024 |
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 141,554 | $ | 155,574 | $ | 63,864 | $ | 71,027 | $ | 73,860 | |||||||
Securities available for sale | 1,018,279 | 1,070,811 | 1,072,833 | 1,098,655 | 1,144,175 | ||||||||||||
Securities held to maturity | 127,266 | 132,256 | 135,742 | 139,643 | 141,959 | ||||||||||||
Loans held-for-sale | 5,695 | 8,866 | 6,036 | 4,117 | 14,030 | ||||||||||||
Loans receivable | 5,791,758 | 5,784,246 | 5,732,787 | 5,758,336 | 5,745,629 | ||||||||||||
Less: allowance for credit losses on loans | (44,457) | (44,923) | (44,939) | (44,930) | (44,867) | ||||||||||||
Net loans receivable | 5,747,301 | 5,739,323 | 5,687,848 | 5,713,406 | 5,700,762 | ||||||||||||
Premises and equipment | 45,127 | 45,189 | 44,940 | 45,053 | 45,928 | ||||||||||||
Federal Home Loan Bank stock | 64,443 | 57,706 | 80,300 | 81,347 | 83,372 | ||||||||||||
Accrued interest receivable | 27,772 | 29,467 | 29,521 | 31,065 | 30,258 | ||||||||||||
Goodwill | 113,525 | 113,525 | 113,525 | 210,895 | 210,895 | ||||||||||||
Core deposit intangible | 1,679 | 1,805 | 1,931 | 2,057 | 2,189 | ||||||||||||
Bank owned life insurance | 301,339 | 300,186 | 297,874 | 296,493 | 256,064 | ||||||||||||
Deferred income taxes, net | 53,325 | 50,131 | 50,339 | 47,225 | 46,116 | ||||||||||||
Other real estate owned | — | — | — | — | 11,982 | ||||||||||||
Other assets | 84,080 | 67,540 | 98,708 | 100,989 | 136,242 | ||||||||||||
Total assets | $ | 7,731,385 | $ | 7,772,379 | $ | 7,683,461 | $ | 7,841,972 | $ | 7,897,832 | |||||||
Liabilities | |||||||||||||||||
Deposits: | |||||||||||||||||
Non-interest-bearing | $ | 601,510 | $ | 592,099 | $ | 598,366 | $ | 586,089 | $ | 584,130 | |||||||
Interest-bearing | 5,069,550 | 4,878,413 | 4,559,757 | 4,622,961 | 4,735,500 | ||||||||||||
Total deposits | 5,671,060 | 5,470,512 | 5,158,123 | 5,209,050 | 5,319,630 | ||||||||||||
Borrowings | 1,258,949 | 1,479,888 | 1,709,789 | 1,722,178 | 1,667,055 | ||||||||||||
Advance payments by borrowers for taxes | 17,986 | 17,824 | 17,409 | 17,387 | 16,742 | ||||||||||||
Other liabilities | 38,537 | 52,618 | 44,569 | 44,279 | 46,427 | ||||||||||||
Total liabilities | 6,986,532 | 7,020,842 | 6,929,890 | 6,992,894 | 7,049,854 | ||||||||||||
Stockholders' Equity | |||||||||||||||||
Common stock | 646 | 646 | 644 | 644 | 645 | ||||||||||||
Paid-in capital | 494,092 | 493,523 | 493,680 | 493,187 | 493,297 | ||||||||||||
Retained earnings | 342,155 | 342,522 | 343,326 | 440,308 | 439,755 | ||||||||||||
Unearned ESOP shares | (19,943) | (20,430) | (20,916) | (21,402) | (21,889) | ||||||||||||
Accumulated other comprehensive loss | (72,097) | (64,724) | (63,163) | (63,659) | (63,830) | ||||||||||||
Total stockholders' equity | 744,853 | 751,537 | 753,571 | 849,078 | 847,978 | ||||||||||||
Total liabilities and stockholders' equity | $ | 7,731,385 | $ | 7,772,379 | $ | 7,683,461 | $ | 7,841,972 | $ | 7,897,832 | |||||||
Consolidated capital ratios | |||||||||||||||||
Equity to assets | 9.63 | % | 9.67 | % | 9.81 | % | 10.83 | % | 10.74 | % | |||||||
Tangible equity to tangible assets (1) |
8.27 | % | 8.31 | % | 8.43 | % | 8.34 | % | 8.26 | % | |||||||
Share data | |||||||||||||||||
Outstanding shares | 64,580 | 64,580 | 64,434 | 64,437 | 64,445 | ||||||||||||
Book value per share | $ | 11.53 | $ | 11.64 | $ | 11.70 | $ | 13.18 | $ | 13.16 | |||||||
Tangible book value per share (2) |
$ | 9.75 | $ | 9.85 | $ | 9.90 | $ | 9.87 | $ | 9.85 |
(Dollars in Thousands) | December 31, 2024 |
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
||||||||||||
Loan portfolio composition: | |||||||||||||||||
Commercial loans: | |||||||||||||||||
Multi-family mortgage | $ | 2,722,623 | $ | 2,646,187 | $ | 2,645,851 | $ | 2,645,195 | $ | 2,651,274 | |||||||
Nonresidential mortgage | 950,194 | 950,771 | 948,075 | 965,539 | 947,287 | ||||||||||||
Commercial business | 135,740 | 145,984 | 142,747 | 147,326 | 144,134 | ||||||||||||
Construction | 176,704 | 227,327 | 209,237 | 229,457 | 221,933 | ||||||||||||
Total commercial loans | 3,985,261 | 3,970,269 | 3,945,910 | 3,987,517 | 3,964,628 | ||||||||||||
One- to four-family residential mortgage | 1,765,160 | 1,768,230 | 1,756,051 | 1,741,644 | 1,746,065 | ||||||||||||
Consumer loans: | |||||||||||||||||
Home equity loans | 47,101 | 44,741 | 44,104 | 42,731 | 43,517 | ||||||||||||
Other consumer | 2,778 | 2,965 | 2,685 | 3,198 | 2,728 | ||||||||||||
Total consumer loans | 49,879 | 47,706 | 46,789 | 45,929 | 46,245 | ||||||||||||
Total loans, excluding yield adjustments | 5,800,300 | 5,786,205 | 5,748,750 | 5,775,090 | 5,756,938 | ||||||||||||
Unaccreted yield adjustments | (8,542) | (1,959) | (15,963) | (16,754) | (11,309) | ||||||||||||
Loans receivable, net of yield adjustments | 5,791,758 | 5,784,246 | 5,732,787 | 5,758,336 | 5,745,629 | ||||||||||||
Less: allowance for credit losses on loans | (44,457) | (44,923) | (44,939) | (44,930) | (44,867) | ||||||||||||
Net loans receivable | $ | 5,747,301 | $ | 5,739,323 | $ | 5,687,848 | $ | 5,713,406 | $ | 5,700,762 | |||||||
Asset quality: | |||||||||||||||||
Nonperforming assets: | |||||||||||||||||
Accruing loans - 90 days and over past due | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||
Nonaccrual loans | 37,697 | 39,854 | 39,882 | 39,546 | 28,089 | ||||||||||||
Total nonperforming loans | 37,697 | 39,854 | 39,882 | 39,546 | 28,089 | ||||||||||||
Nonaccrual loans held-for-sale | — | — | — | — | 9,700 | ||||||||||||
Other real estate owned | — | — | — | — | 11,982 | ||||||||||||
Total nonperforming assets | $ | 37,697 | $ | 39,854 | $ | 39,882 | $ | 39,546 | $ | 49,771 | |||||||
Nonperforming loans (% total loans) | 0.65 | % | 0.69 | % | 0.70 | % | 0.69 | % | 0.49 | % | |||||||
Nonperforming assets (% total assets) | 0.49 | % | 0.51 | % | 0.52 | % | 0.50 | % | 0.63 | % | |||||||
Classified loans | $ | 132,216 | $ | 119,534 | $ | 118,700 | $ | 115,772 | $ | 94,676 | |||||||
Allowance for credit losses on loans (ACL): | |||||||||||||||||
ACL to total loans | 0.77 | % | 0.78 | % | 0.78 | % | 0.78 | % | 0.78 | % | |||||||
ACL to nonperforming loans | 117.93 | % | 112.72 | % | 112.68 | % | 113.61 | % | 159.73 | % | |||||||
Net charge-offs | $ | 573 | $ | 124 | $ | 3,518 | $ | 286 | $ | 4,110 | |||||||
Average net charge-off rate (annualized) | 0.04 | % | 0.01 | % | 0.25 | % | 0.02 | % | 0.29 | % |
(Dollars in Thousands) | December 31, 2024 |
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
||||||||||||
Funding composition: | |||||||||||||||||
Deposits: | |||||||||||||||||
Non-interest-bearing deposits | $ | 601,510 | $ | 592,099 | $ | 598,367 | $ | 586,089 | $ | 584,130 | |||||||
Interest-bearing demand | 2,380,408 | 2,247,685 | 2,308,915 | 2,349,032 | 2,347,262 | ||||||||||||
Savings | 742,266 | 681,709 | 643,481 | 630,456 | 646,182 | ||||||||||||
Certificates of deposit (retail) | 1,194,865 | 1,215,746 | 1,199,127 | 1,235,261 | 1,283,676 | ||||||||||||
Certificates of deposit (brokered and listing service) | 752,011 | 733,273 | 408,234 | 408,212 | 458,380 | ||||||||||||
Interest-bearing deposits | 5,069,550 | 4,878,413 | 4,559,757 | 4,622,961 | 4,735,500 | ||||||||||||
Total deposits | 5,671,060 | 5,470,512 | 5,158,124 | 5,209,050 | 5,319,630 | ||||||||||||
Borrowings: | |||||||||||||||||
Federal Home Loan Bank advances | 1,028,949 | 1,209,888 | 1,534,789 | 1,457,178 | 1,432,055 | ||||||||||||
Overnight borrowings | 230,000 | 270,000 | 175,000 | 265,000 | 235,000 | ||||||||||||
Total borrowings | 1,258,949 | 1,479,888 | 1,709,789 | 1,722,178 | 1,667,055 | ||||||||||||
Total funding | $ | 6,930,009 | $ | 6,950,400 | $ | 6,867,913 | $ | 6,931,228 | $ | 6,986,685 | |||||||
Loans as a % of deposits | 101.4 | % | 105.1 | % | 110.4 | % | 109.8 | % | 107.4 | % | |||||||
Deposits as a % of total funding | 81.8 | % | 78.7 | % | 75.1 | % | 75.2 | % | 76.1 | % | |||||||
Borrowings as a % of total funding | 18.2 | % | 21.3 | % | 24.9 | % | 24.8 | % | 23.9 | % | |||||||
Uninsured deposits: | |||||||||||||||||
Uninsured deposits (reported) (1) |
$ | 1,935,607 | $ | 1,799,726 | $ | 1,772,623 | $ | 1,760,740 | $ | 1,813,122 | |||||||
Uninsured deposits (adjusted) (2) |
$ | 797,721 | $ | 773,375 | $ | 764,447 | $ | 718,026 | $ | 694,510 |
Three Months Ended | |||||||||||||||||
(Dollars and Shares in Thousands, Except Per Share Data) |
December 31, 2024 |
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
||||||||||||
Interest income | |||||||||||||||||
Loans | $ | 65,408 | $ | 66,331 | $ | 65,819 | $ | 64,035 | $ | 63,384 | |||||||
Taxable investment securities | 13,803 | 14,384 | 14,802 | 15,490 | 16,756 | ||||||||||||
Tax-exempt investment securities | 59 | 71 | 80 | 85 | 84 | ||||||||||||
Other interest-earning assets | 2,215 | 2,466 | 2,289 | 2,475 | 2,401 | ||||||||||||
Total interest income | 81,485 | 83,252 | 82,990 | 82,085 | 82,625 | ||||||||||||
Interest expense | |||||||||||||||||
Deposits | 36,721 | 35,018 | 32,187 | 32,320 | 30,340 | ||||||||||||
Borrowings | 12,152 | 15,788 | 17,527 | 15,446 | 16,446 | ||||||||||||
Total interest expense | 48,873 | 50,806 | 49,714 | 47,766 | 46,786 | ||||||||||||
Net interest income | 32,612 | 32,446 | 33,276 | 34,319 | 35,839 | ||||||||||||
Provision for credit losses | 107 | 108 | 3,527 | 349 | 2,105 | ||||||||||||
Net interest income after provision for credit losses | 32,505 | 32,338 | 29,749 | 33,970 | 33,734 | ||||||||||||
Non-interest income | |||||||||||||||||
Fees and service charges | 627 | 635 | 580 | 657 | 624 | ||||||||||||
Loss on sale and call of securities | — | — | — | — | (18,135) | ||||||||||||
Gain (loss) on sale of loans | 304 | 200 | 111 | (712) | 104 | ||||||||||||
Loss on sale of other real estate owned | — | — | — | — | (974) | ||||||||||||
Income from bank owned life insurance | 2,619 | 2,567 | 3,209 | 3,039 | 1,162 | ||||||||||||
Electronic banking fees and charges | 493 | 391 | 1,130 | 464 | 396 | ||||||||||||
Other income | 830 | 833 | 776 | 755 | 811 | ||||||||||||
Total non-interest income | 4,873 | 4,626 | 5,806 | 4,203 | (16,012) | ||||||||||||
Non-interest expense | |||||||||||||||||
Salaries and employee benefits | 17,579 | 17,498 | 17,266 | 16,911 | 17,282 | ||||||||||||
Net occupancy expense of premises | 2,831 | 2,798 | 2,738 | 2,863 | 2,674 | ||||||||||||
Equipment and systems | 3,892 | 3,860 | 3,785 | 3,823 | 3,814 | ||||||||||||
Advertising and marketing | 311 | 342 | 480 | 387 | 301 | ||||||||||||
Federal deposit insurance premium | 1,503 | 1,563 | 1,532 | 1,429 | 1,495 | ||||||||||||
Directors' compensation | 361 | 361 | 360 | 360 | 393 | ||||||||||||
Goodwill impairment | — | — | 97,370 | — | — | ||||||||||||
Other expense | 3,084 | 3,364 | 3,020 | 3,286 | 3,808 | ||||||||||||
Total non-interest expense | 29,561 | 29,786 | 126,551 | 29,059 | 29,767 | ||||||||||||
Income (loss) before income taxes | 7,817 | 7,178 | (90,996) | 9,114 | (12,045) | ||||||||||||
Income taxes | 1,251 | 1,086 | (917) | 1,717 | 1,782 | ||||||||||||
Net income (loss) | $ | 6,566 | $ | 6,092 | $ | (90,079) | $ | 7,397 | $ | (13,827) | |||||||
Net income (loss) per common share (EPS) | |||||||||||||||||
Basic | $ | 0.11 | $ | 0.10 | $ | (1.45) | $ | 0.12 | $ | (0.22) | |||||||
Diluted | $ | 0.10 | $ | 0.10 | $ | (1.45) | $ | 0.12 | $ | (0.22) | |||||||
Dividends declared | |||||||||||||||||
Cash dividends declared per common share | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.11 | |||||||
Cash dividends declared | $ | 6,933 | $ | 6,896 | $ | 6,903 | $ | 6,844 | $ | 6,882 | |||||||
Dividend payout ratio | 105.6 | % | 113.2 | % | -7.7 | % | 92.5 | % | -49.8 | % | |||||||
Weighted average number of common shares outstanding | |||||||||||||||||
Basic | 62,443 | 62,389 | 62,254 | 62,205 | 62,299 | ||||||||||||
Diluted | 62,576 | 62,420 | 62,254 | 62,211 | 62,299 |
Three Months Ended | |||||||||||||||||
(Dollars in Thousands) | December 31, 2024 |
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
||||||||||||
Assets | |||||||||||||||||
Interest-earning assets: | |||||||||||||||||
Loans receivable, including loans held-for-sale | $ | 5,762,053 | $ | 5,761,593 | $ | 5,743,008 | $ | 5,752,477 | $ | 5,726,321 | |||||||
Taxable investment securities | 1,285,800 | 1,314,945 | 1,343,541 | 1,382,064 | 1,509,165 | ||||||||||||
Tax-exempt investment securities | 9,711 | 12,244 | 13,737 | 14,614 | 15,025 | ||||||||||||
Other interest-earning assets | 116,354 | 131,981 | 128,257 | 125,155 | 139,740 | ||||||||||||
Total interest-earning assets | 7,173,918 | 7,220,763 | 7,228,543 | 7,274,310 | 7,390,251 | ||||||||||||
Non-interest-earning assets | 459,982 | 467,670 | 466,537 | 577,411 | 554,335 | ||||||||||||
Total assets | $ | 7,633,900 | $ | 7,688,433 | $ | 7,695,080 | $ | 7,851,721 | $ | 7,944,586 | |||||||
Liabilities and Stockholders' Equity | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||
Deposits: | |||||||||||||||||
Interest-bearing demand | $ | 2,314,378 | $ | 2,282,608 | $ | 2,310,521 | $ | 2,378,831 | $ | 2,301,169 | |||||||
Savings | 711,801 | 668,240 | 631,622 | 635,226 | 664,926 | ||||||||||||
Certificates of deposit (retail) | 1,211,985 | 1,203,770 | 1,208,101 | 1,257,362 | 1,292,837 | ||||||||||||
Certificates of deposit (brokered and listing service) | 735,736 | 551,819 | 405,697 | 448,151 | 531,479 | ||||||||||||
Total interest-bearing deposits | 4,973,900 | 4,706,437 | 4,555,941 | 4,719,570 | 4,790,411 | ||||||||||||
Borrowings: | |||||||||||||||||
Federal Home Loan Bank advances | 1,085,455 | 1,325,583 | 1,507,192 | 1,428,801 | 1,513,497 | ||||||||||||
Other borrowings | 156,522 | 237,011 | 228,461 | 210,989 | 142,283 | ||||||||||||
Total borrowings | 1,241,977 | 1,562,594 | 1,735,653 | 1,639,790 | 1,655,780 | ||||||||||||
Total interest-bearing liabilities | 6,215,877 | 6,269,031 | 6,291,594 | 6,359,360 | 6,446,191 | ||||||||||||
Non-interest-bearing liabilities: | |||||||||||||||||
Non-interest-bearing deposits | 604,915 | 599,095 | 589,438 | 581,870 | 597,294 | ||||||||||||
Other non-interest-bearing liabilities | 65,258 | 69,629 | 62,978 | 65,709 | 62,387 | ||||||||||||
Total non-interest-bearing liabilities | 670,173 | 668,724 | 652,416 | 647,579 | 659,681 | ||||||||||||
Total liabilities | 6,886,050 | 6,937,755 | 6,944,010 | 7,006,939 | 7,105,872 | ||||||||||||
Stockholders' equity | 747,850 | 750,678 | 751,070 | 844,782 | 838,714 | ||||||||||||
Total liabilities and stockholders' equity | $ | 7,633,900 | $ | 7,688,433 | $ | 7,695,080 | $ | 7,851,721 | $ | 7,944,586 | |||||||
Average interest-earning assets to average interest-bearing liabilities
|
115.41 | % | 115.18 | % | 114.89 | % | 114.39 | % | 114.65 | % |
Three Months Ended | |||||||||||||||||
December 31, 2024 |
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
|||||||||||||
Average yield on interest-earning assets: | |||||||||||||||||
Loans receivable, including loans held-for-sale | 4.54 | % | 4.61 | % | 4.58 | % | 4.45 | % | 4.43 | % | |||||||
Taxable investment securities | 4.29 | % | 4.38 | % | 4.41 | % | 4.48 | % | 4.44 | % | |||||||
Tax-exempt investment securities (1) |
2.42 | % | 2.32 | % | 2.32 | % | 2.32 | % | 2.25 | % | |||||||
Other interest-earning assets | 7.62 | % | 7.47 | % | 7.14 | % | 7.91 | % | 6.87 | % | |||||||
Total interest-earning assets | 4.54 | % | 4.61 | % | 4.59 | % | 4.51 | % | 4.47 | % | |||||||
Average cost of interest-bearing liabilities: | |||||||||||||||||
Deposits: | |||||||||||||||||
Interest-bearing demand | 2.96 | % | 3.13 | % | 3.06 | % | 3.08 | % | 2.91 | % | |||||||
Savings | 1.29 | % | 1.05 | % | 0.63 | % | 0.46 | % | 0.44 | % | |||||||
Certificates of deposit (retail) | 4.06 | % | 4.12 | % | 3.95 | % | 3.52 | % | 3.06 | % | |||||||
Certificates of deposit (brokered and listing service) | 2.71 | % | 2.18 | % | 1.59 | % | 1.97 | % | 2.24 | % | |||||||
Total interest-bearing deposits | 2.95 | % | 2.98 | % | 2.83 | % | 2.74 | % | 2.53 | % | |||||||
Borrowings: | |||||||||||||||||
Federal Home Loan Bank advances | 3.78 | % | 3.82 | % | 3.86 | % | 3.55 | % | 3.82 | % | |||||||
Other borrowings | 4.88 | % | 5.28 | % | 5.24 | % | 5.22 | % | 5.65 | % | |||||||
Total borrowings | 3.91 | % | 4.04 | % | 4.04 | % | 3.77 | % | 3.97 | % | |||||||
Total interest-bearing liabilities | 3.15 | % | 3.24 | % | 3.16 | % | 3.00 | % | 2.90 | % | |||||||
Interest rate spread (2) |
1.39 | % | 1.37 | % | 1.43 | % | 1.51 | % | 1.57 | % | |||||||
Net interest margin (3) |
1.82 | % | 1.80 | % | 1.84 | % | 1.89 | % | 1.94 | % | |||||||
Non-interest income to average assets (annualized) | 0.26 | % | 0.24 | % | 0.30 | % | 0.21 | % | -0.81 | % | |||||||
Non-interest expense to average assets (annualized) | 1.55 | % | 1.55 | % | 6.58 | % | 1.48 | % | 1.50 | % | |||||||
Efficiency ratio (4) |
78.86 | % | 80.35 | % | 323.81 | % | 75.43 | % | 150.13 | % | |||||||
Return on average assets (annualized) | 0.34 | % | 0.32 | % | -4.68 | % | 0.38 | % | -0.70 | % | |||||||
Return on average equity (annualized) | 3.51 | % | 3.25 | % | -47.97 | % | 3.50 | % | -6.59 | % | |||||||
Return on average tangible equity (annualized) (5) |
4.21 | % | 3.89 | % | 3.33 | % | 4.68 | % | -8.84 | % |
Three Months Ended | |||||||||||||||||
(Dollars and Shares in Thousands, Except Per Share Data) |
December 31, 2024 |
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
||||||||||||
Adjusted net income: | |||||||||||||||||
Net income (loss) (GAAP) | $ | 6,566 | $ | 6,092 | $ | (90,079) | $ | 7,397 | $ | (13,827) | |||||||
Non-recurring transactions - net of tax: | |||||||||||||||||
Net effect of sale and call of securities | — | — | — | — | 12,876 | ||||||||||||
Net effect of bank-owned life insurance restructure | — | — | 392 | — | 6,286 | ||||||||||||
Goodwill impairment | — | — | 95,283 | — | — | ||||||||||||
Adjusted net income | $ | 6,566 | $ | 6,092 | $ | 5,596 | $ | 7,397 | $ | 5,335 | |||||||
Calculation of pre-tax, pre-provision net revenue: | |||||||||||||||||
Net income (loss) (GAAP) | $ | 6,566 | $ | 6,092 | $ | (90,079) | $ | 7,397 | $ | (13,827) | |||||||
Adjustments to net income (GAAP): | |||||||||||||||||
Provision for income taxes | 1,251 | 1,086 | (917) | 1,717 | 1,782 | ||||||||||||
Provision for credit losses | 107 | 108 | 3,527 | 349 | 2,105 | ||||||||||||
Pre-tax, pre-provision net revenue (non-GAAP) | $ | 7,924 | $ | 7,286 | $ | (87,469) | $ | 9,463 | $ | (9,940) | |||||||
Adjusted earnings per share: | |||||||||||||||||
Weighted average common shares - basic | 62,443 | 62,389 | 62,254 | 62,205 | 62,299 | ||||||||||||
Weighted average common shares - diluted | 62,576 | 62,420 | 62,330 | 62,211 | 62,367 | ||||||||||||
Earnings per share - basic (GAAP) | $ | 0.11 | $ | 0.10 | $ | (1.45) | $ | 0.12 | $ | (0.22) | |||||||
Earnings per share - diluted (GAAP) | $ | 0.10 | $ | 0.10 | $ | (1.45) | $ | 0.12 | $ | (0.22) | |||||||
Adjusted earnings per share - basic (non-GAAP) | $ | 0.11 | $ | 0.10 | $ | 0.09 | $ | 0.12 | $ | 0.09 | |||||||
Adjusted earnings per share - diluted (non-GAAP) | $ | 0.10 | $ | 0.10 | $ | 0.09 | $ | 0.12 | $ | 0.09 | |||||||
Pre-tax, pre-provision net revenue per share: | |||||||||||||||||
Pre-tax, pre-provision net revenue per share - basic (non-GAAP)
|
$ | 0.13 | $ | 0.12 | $ | (1.41) | $ | 0.15 | $ | (0.16) | |||||||
Pre-tax, pre-provision net revenue per share - diluted (non-GAAP)
|
$ | 0.13 | $ | 0.12 | $ | (1.41) | $ | 0.15 | $ | (0.16) | |||||||
Adjusted return on average assets: | |||||||||||||||||
Total average assets | $ | 7,633,900 | $ | 7,688,433 | $ | 7,695,080 | $ | 7,851,721 | $ | 7,944,586 | |||||||
Return on average assets (GAAP) | 0.34 | % | 0.32 | % | -4.68 | % | 0.38 | % | -0.70 | % | |||||||
Adjusted return on average assets (non-GAAP) | 0.34 | % | 0.32 | % | 0.29 | % | 0.38 | % | 0.27 | % | |||||||
Adjusted return on average equity: | |||||||||||||||||
Total average equity | $ | 747,850 | $ | 750,678 | $ | 751,070 | $ | 844,782 | $ | 838,714 | |||||||
Return on average equity (GAAP) | 3.51 | % | 3.25 | % | -47.97 | % | 3.50 | % | -6.59 | % | |||||||
Adjusted return on average equity (non-GAAP) | 3.51 | % | 3.25 | % | 2.98 | % | 3.50 | % | 2.54 | % |
Three Months Ended | |||||||||||||||||
(Dollars and Shares in Thousands, Except Per Share Data) |
December 31, 2024 |
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
||||||||||||
Adjusted return on average tangible equity: | |||||||||||||||||
Total average equity | $ | 747,850 | $ | 750,678 | $ | 751,070 | $ | 844,782 | $ | 838,714 | |||||||
Less: average goodwill | (113,525) | (113,525) | (113,525) | (210,895) | (210,895) | ||||||||||||
Less: average other intangible assets | (1,761) | (1,886) | (2,006) | (2,138) | (2,277) | ||||||||||||
Total average tangible equity | $ | 632,564 | $ | 635,267 | $ | 635,539 | $ | 631,749 | $ | 625,542 | |||||||
Return on average tangible equity (non-GAAP) | 4.21 | % | 3.89 | % | 3.33 | % | 4.68 | % | -8.84 | % | |||||||
Adjusted return on average tangible equity (non-GAAP) | 4.21 | % | 3.89 | % | 3.58 | % | 4.68 | % | 3.41 | % | |||||||
Adjusted non-interest expense ratio: | |||||||||||||||||
Non-interest expense (GAAP) | $ | 29,561 | $ | 29,786 | $ | 126,551 | $ | 29,059 | $ | 29,767 | |||||||
Non-recurring transactions: | |||||||||||||||||
Goodwill impairment | — | — | (97,370) | — | — | ||||||||||||
Non-interest expense (non-GAAP) | $ | 29,561 | $ | 29,786 | $ | 29,181 | $ | 29,059 | $ | 29,767 | |||||||
Non-interest expense ratio (GAAP) | 1.55 | % | 1.55 | % | 6.58 | % | 1.48 | % | 1.50 | % | |||||||
Adjusted non-interest expense ratio (non-GAAP) | 1.55 | % | 1.55 | % | 1.52 | % | 1.48 | % | 1.50 | % | |||||||
Adjusted efficiency ratio: | |||||||||||||||||
Non-interest expense (non-GAAP) | $ | 29,561 | $ | 29,786 | $ | 29,181 | $ | 29,059 | $ | 29,767 | |||||||
Net interest income (GAAP) | $ | 32,612 | $ | 32,446 | $ | 33,276 | $ | 34,319 | $ | 35,839 | |||||||
Total non-interest income (GAAP) | 4,873 | 4,626 | 5,806 | 4,203 | (16,012) | ||||||||||||
Non-recurring transactions: | |||||||||||||||||
Net effect of sale and call of securities | — | — | — | — | 18,135 | ||||||||||||
Net effect of bank-owned life insurance restructure | — | — | 392 | — | 573 | ||||||||||||
Total revenue (non-GAAP) | $ | 37,485 | $ | 37,072 | $ | 39,474 | $ | 38,522 | $ | 38,535 | |||||||
Efficiency ratio (GAAP) | 78.86 | % | 80.35 | % | 323.81 | % | 75.43 | % | 150.13 | % | |||||||
Adjusted efficiency ratio (non-GAAP) | 78.86 | % | 80.35 | % | 73.92 | % | 75.43 | % | 77.25 | % |