Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the
holding company of Kearny Bank (the “Bank”), reported net income
for the quarter ended June 30, 2020 of $13.7 million, or $0.17 per
diluted share. The results represent an increase of $4.4 million
compared to $9.3 million, or $0.11 per diluted share, for the
quarter ended March 31, 2020.
For the fiscal year ended June 30, 2020, the
Company reported net income of $45.0 million representing an
increase of $2.9 million compared to $42.1 million for the fiscal
year ended June 30, 2019. The increase in net income reflected a
20% increase in earnings per diluted share to $0.55 for the year
ended June 30, 2020 from $0.46 for the year ended June 30,
2019.
Craig L. Montanaro, President and Chief
Executive Officer, commented, “I am proud to report that we
achieved record earnings for both the quarter and the fiscal year,
while making significant progress towards our long-term strategic
goal of improving our funding mix. During fiscal 2020, our retail
deposits increased by $517 million, or 14%, reflecting a $647
million, or 33%, increase in core non-maturity deposits. This
success enabled us to reduce our wholesale funding by $381 million,
with such balances representing 22% of total funding at June 30,
2020 from 30% one year earlier.”
The Company had previously announced the
successful closing of its acquisition of MSB Financial Corp.
(NASDAQ: MSBF) (“MSB”) and its subsidiary, Millington Bank
(“Millington”) on July 10, 2020. Regarding the acquisition, Mr.
Montanaro commented, “In conjunction with announcing our year-end
results, I would also like to welcome the Millington employees,
clients and stockholders to the Kearny family. Having successfully
converted and integrated MSB’s core and online banking systems
concurrent with the acquisition’s closing, we are now focused on
supporting and strengthening our relationships with Millington’s
existing clients, while further enhancing our presence in the very
desirable New Jersey markets located within Somerset and Morris
counties.”
With regard to the recent challenges presented
by the COVID-19 pandemic, Mr. Montanaro further stated, “We
continue to focus on the various ways in which we can assist our
clients who have been adversely impacted by COVID-19, including
those clients who recently joined us from Millington. While we
recognize that significant economic uncertainty lies ahead, we
believe that our combined balance sheets are well positioned for
such an environment. We ended fiscal 2020 on exceptionally strong
footing with a tangible equity ratio of 13.29%, loan loss reserves
totaling $37 million and liquid assets of $1.6 billion, which are
further supported by over $2.6 billion of available borrowing
capacity.”
Balance Sheet
- For the quarter and the year ended
June 30, 2020, the Company succeeded in significantly growing core
retail deposits which facilitated the outflow of wholesale
deposits. For the quarter ended June 30, 2020, deposits
increased by $177.0 million to $4.43 billion from $4.25 billion at
March 31, 2020. Such growth was attributable to an increase of
$224.9 million in retail deposits that was partially offset by a
decline of $47.8 million in wholesale deposits. For the year
ended June 30, 2020, deposits increased by $282.6 million to $4.43
billion from $4.15 billion at June 30, 2019. The
year-over-year growth in deposits was attributable to an increase
of $517.4 million in retail deposits that was partially offset by a
$234.8 million decrease in wholesale deposits.
- Loans receivable decreased by $64.1
million to $4.50 billion at June 30, 2020 from $4.56 billion at
March 31, 2020. The decrease in loans receivable was
attributable to a decrease in loan origination volume coupled with
the acceleration of loan pre-payment activity, as compared to the
prior quarter. For the quarter ended June 30, 2020, the
Company originated 749 loans totaling $69.0 million under the
Payroll Protection Program (“PPP”) and recorded deferred
origination fees related to such loans totaling $2.9 million.
For the year ended June 30, 2020, the Company’s aggregate loan
portfolio decreased by $180.5 million, or 3.9%, from $4.68 billion,
at June 30, 2019.
- Investment securities decreased by
$92.7 million to $1.42 billion, or 21.0% of total assets, at June
30, 2020 from $1.51 billion at March 31, 2020. For the year
ended June 30, 2020, the securities portfolio increased by $127.3
million from $1.29 billion, or 19.5% of total assets, at June 30,
2019.
- Borrowings decreased by $210.9
million to $1.17 billion, or 17.4% of total assets, at June 30,
2020 from $1.38 billion at March 31, 2020. For the year ended
June 30, 2020, borrowings decreased $148.8 million from $1.32
billion at June 30, 2019. The decrease in borrowings for the
quarter and year ended June 30, 2020 reflected the Company’s
continuing effort to reallocate its funding mix in favor of core
deposits.
Earnings
Net Interest
Income, Spread and Margin
- For the quarter ended June 30,
2020, net interest income increased by $2.9 million to $40.5
million from $37.6 million for the quarter ended March 31,
2020. The increase in net interest income was the result of a
decrease of $4.3 million in interest expense, partially offset by a
$1.4 million decrease in interest income between comparative
periods. For the year ended June 30, 2020, net interest
income decreased by $6.0 million to $149.4 million from $155.3
million for the year ended June 30, 2019. The decrease in net
interest income was the result of a decrease of $4.1 million in
interest income and an increase of $1.8 million in interest
expense.
- For the quarter ended June 30,
2020, net interest spread increased by 20 basis points to 2.43%
while net interest margin increased by 16 basis points to 2.62%.
These increases primarily reflected a decrease in the cost of
interest-bearing liabilities partially offset by a decrease in the
yield on interest-earning assets. Contributing approximately eight
basis points to the quarterly increase in net interest margin was a
temporary mismatch in the relationship between three-month LIBOR
and three-month FHLB advance rates which favorably impacted the net
cost of the Company’s portfolio of hedged FHLB advances.
Specifically, the average historical spread between these two rates
over the five-year period ended June 30, 2020 was approximately one
basis point. However, that spread increased to 94 basis
points on April 1, 2020 reflecting significant market volatility
arising at outset of the COVID-19 pandemic. The mismatch between
the noted three-month rate indices declined throughout the quarter,
ending at 14 basis points at June 30, 2020.
- For the year ended June 30, 2020,
net interest rate spread decreased by nine basis points to 2.22%
while net interest margin decreased 11 basis points to 2.45%.
These decreases primarily reflected a decrease in the yield on
interest-earning assets coupled with an increase in the cost of
interest-bearing liabilities.
- For the quarter ended June 30,
2020, the yield on interest-earning assets decreased by 12 basis
points to 3.72% which was largely attributable to a 9 basis point
decrease in the yield on loans and a 14 basis point decrease in the
yield on taxable investment securities. For that same period,
the cost of interest-bearing liabilities decreased by 32 basis
points to 1.29% which was attributable to a 23 basis point decrease
in the cost of interest-bearing deposits coupled with a 61 basis
point decrease in the cost of borrowings.
- For the year ended June 30, 2020,
the yield on interest-earning assets decreased by eight basis
points to 3.83% which was largely attributable to a three basis
point decrease in the yield on loans, coupled with a 14 basis point
decrease in the yield on taxable investment securities. For that
same period, the cost of interest-bearing liabilities increased by
one basis point to 1.61% which was attributable to an 11 basis
point increase in the cost of interest-bearing deposits partially
offset by a 24 basis point decrease in the cost of borrowings.
Non-Interest
Income
- Fees and service charges totaled
$1.7 million for the quarter ended June 30, 2020 compared to $1.3
million for the quarter ended March 31, 2020. The increase
was largely attributable to an increase of $518,000 in loan
pre-payment penalty income to $1.4 million for the quarter ended
June 30, 2020. For the year ended June 30, 2020 fees and
service charges increased by $1.2 million to $6.6 million from $5.4
million for the year ended June 30, 2019 which was largely
attributable to an increase of $1.1 million in loan pre-payment
penalty income to $4.6 million for the year ended June 30,
2020.
- Gains on sales and calls of
securities totaled $19,000 for the quarter ended June 30, 2020
compared to $2.2 million for the quarter ended March 31,
2020. For the year ended June 30, 2020 gains on sales of
securities totaled $2.3 million compared to a net loss of $323,000
for the year ended June 30, 2019. These variances were largely
attributable to the gain on sale of securities recognized in
conjunction with a wholesale restructuring transaction executed
during the quarter ended March 31, 2020.
- Loan sale gains achieved record
levels, totaling $1.3 million for the quarter ended June 30, 2020
as compared to $565,000 for the quarter ended March 31, 2020. Such
gains totaled $3.2 million and $580,000 for the years ended June
30, 2020 and June 30, 2019, respectively. The increase in
loan sale gains primarily reflected an increase in the volume of
residential mortgage loans sold during those periods.
Non-Interest
Expense
- Non-interest expense decreased by
$1.2 million to $26.9 million for the quarter ended June 30, 2020
compared to $28.1 million for the quarter ended March 31,
2020. This decrease was largely attributable to $2.2 million
of non-recurring debt extinguishment expenses recognized in the
prior comparative period. The remaining change in non-interest
expense included increases in equipment and systems expense,
advertising and marketing expense, FDIC insurance premiums,
non-recurring merger-related expenses and miscellaneous
expense.
- For the year ended June 30, 2020,
non-interest expense decreased by $1.6 million to $107.6 million
from $109.2 million for the year ended June 30, 2019. This decrease
was largely attributable to $1.7 million of non-recurring branch
consolidation expenses recognized in the prior comparative
period. The remaining change in non-interest expense included
decreases in salaries and employee benefits, equipment and systems
expense, advertising and marketing expense and FDIC insurance
premiums. Partially offsetting these decreases were increases
to non-recurring debt-extinguishment expenses and non-recurring
merger-related expenses totaling $2.2 million and $951,000,
respectively, which were recognized during the current year ended
June 30, 2020.
- The Company’s non-interest expense
ratio totaled 1.59% for the quarter ended June 30, 2020 compared to
1.67% for the quarter ended March 31, 2020. For the year
ended June 30, 2020, the Company’s non-interest expense ratio
totaled 1.61% compared to 1.64% for the prior year ended June 30,
2019.
- The Company’s efficiency ratio was
59.2% for the quarter ended June 30, 2020 compared to 64.1% for the
prior quarter ended March 31, 2020. For the year ended June
30, 2020, the Company’s efficiency ratio totaled 63.7% compared to
64.7% for the prior year ended June 30, 2019.
Income
Taxes
- Income tax expense totaled $4.7
million for the quarter ended June 30, 2020 compared to $225,000
for the quarter ended March 31, 2020, resulting in effective tax
rates of 25.6% and 2.4%, respectively. For the year ended
June 30, 2020, income tax expense was $12.3 million compared to
$13.9 million for the year ended June 30, 2019 resulting in
effective tax rates of 21.5% and 24.8%, respectively.
- The increase in income tax expense
and effective tax rate for the quarter ended June 30, 2020
reflected certain income tax benefits recorded in the prior
comparative period, including a $1.6 million carryback of net
operating losses and the reversal of tax valuation allowances
totaling $591,000. In addition, a comparatively higher level of
pre-tax net income, as compared to the prior period, resulted in a
comparatively higher provision for income tax expense. The
decrease in income tax expense and effective tax rate for the year
ended June 30, 2020 primarily reflected income tax benefits
recorded during the year ended June 30, 2020, as noted above.
Performance
Ratios
- Return on average assets for the
quarter ended June 30, 2020 increased to 0.81% from 0.55% for the
quarter ended March 31, 2020. For the year ended June 30,
2020, the return on average assets increased to 0.67% from 0.63%
for the prior year ended June 30, 2019.
- Return on average equity increased
to 5.08% for the quarter ended June 30, 2020 from 3.39% for the
quarter ended March 31, 2020 while return on average tangible
equity increased to 6.35% from 4.23% for those same comparative
periods, respectively. For the year ended June 30, 2020,
return on average equity increased to 4.10% from 3.52% for the
prior year ended June 30, 2019 while return on average tangible
equity increased to 5.10% from 4.30% for those same comparative
periods, respectively.
Asset Quality
- The outstanding balance of
non-performing loans totaled $36.7 million, or 0.82% of total
loans, at June 30, 2020 compared to $35.4 million, or 0.78% of
total loans, at March 31, 2020 and $20.3 million, or 0.43% of total
loans, at June 30, 2019. The $16.4 million increase in
nonperforming loans for the year ended June 30, 2020 was primarily
attributable to a single, $14.3 million, owner-occupied commercial
real estate loan which was placed on non-accrual status during the
quarter ended March 31, 2020. This loan is secured by a
grocery-anchored retail shopping center located in northern New
Jersey and has a current loan-to-value of approximately
69%.
- Based on Section 4013 of the CARES
Act and the related guidance promulgated by federal banking
regulators, qualifying short-term loan modifications resulting in
payment deferrals for up to six months that are attributable to the
adverse impact of COVID-19, are not considered to be troubled debt
restructurings. Consequently, loans subject to such payment
deferrals are reported as current with regard to payment status and
continue to accrue interest during the payment deferral period. As
of June 30, 2020, the Company had modified a total of 711 loans
with an aggregate principal balance of $781.3 million, representing
17.2% of total loans. Further details regarding these modifications
are provided in the table below. As of June 30, 2020, 351 of the
modified loans with an aggregate principal balance of $374.9
million had reached the expiration of their initial three-month
deferral period. Of these loans, 71.4%, or $267.9 million,
had returned to their regular payment schedules by July 27,
2020. Through that same date, 24.5%, or $91.6 million had
been granted a second 90-day extension while the remaining 4.1%, or
$15.4 million, had not yet made their July payment.
| |
June 30, 2020 |
|
|
May 4, 2020 (1) |
|
|
Increase/(Decrease) |
|
| |
# of Loans |
|
|
Balance |
|
|
# of Loans |
|
|
Balance |
|
|
# of Loans |
|
|
Balance |
|
| |
|
|
|
|
(In Thousands) |
|
|
|
|
|
|
(In Thousands) |
|
|
|
|
|
|
(In Thousands) |
|
|
Commercial loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family mortgage |
|
136 |
|
|
$ |
387,744 |
|
|
|
93 |
|
|
$ |
269,219 |
|
|
|
43 |
|
|
$ |
118,525 |
|
|
Nonresidential mortgage |
|
131 |
|
|
|
237,384 |
|
|
|
120 |
|
|
|
216,833 |
|
|
|
11 |
|
|
|
20,551 |
|
|
Commercial business |
|
54 |
|
|
|
10,450 |
|
|
|
46 |
|
|
|
6,770 |
|
|
|
8 |
|
|
|
3,680 |
|
|
Construction |
|
1 |
|
|
|
796 |
|
|
|
1 |
|
|
|
796 |
|
|
|
- |
|
|
|
- |
|
|
Total commercial loans |
|
322 |
|
|
|
636,374 |
|
|
|
260 |
|
|
|
493,618 |
|
|
|
62 |
|
|
|
142,756 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Residential
mortgage |
|
345 |
|
|
|
141,890 |
|
|
|
305 |
|
|
|
126,647 |
|
|
|
40 |
|
|
|
15,243 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
| Consumer
loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
Home equity loans |
|
44 |
|
|
|
3,014 |
|
|
|
37 |
|
|
|
2,409 |
|
|
|
7 |
|
|
|
605 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
711 |
|
|
$ |
781,278 |
|
|
|
602 |
|
|
$ |
622,674 |
|
|
|
109 |
|
|
$ |
158,604 |
|
____________________(1) Certain historical data
presented as of May 4, 2020 has been reclassified to be consistent
with the current period presentation.
- In addition to the loans reported
above, the Company acquired 144 loans with aggregate principal
balances of $114.8 million in conjunction with the Company’s
acquisition of MSB on July 10, 2020 that had been previously
modified in accordance with the guidance discussed above.
- Net charge offs totaled $38,000 for
the quarter ended June 30, 2020 compared to $16,000 for the quarter
ended March 31, 2020 reflecting an annualized net charge off rate
of 0.00% for both comparative periods. For the year ended
June 30, 2020, the Company recognized net charge offs totaling
$144,000 reflecting an annualized net charge off rate of 0.00% on
the average balance of total loans for the fiscal year. By
comparison, for the year ended June 30, 2019, the Company
recognized net charge offs totaling $1.1 million reflecting an
annualized net charge off rate of 0.02% on the average balance of
total loans for fiscal 2019.
- For the quarter ended June 30, 2020
the Company recorded a provision for loan losses of $174,000.
The provision expense for the period partly reflected an increase
of $935,000 in the allowance for loan losses resulting from
increases in certain environmental loss factors reflecting
estimated incurred losses specifically attributable to the
continuing adverse impact of COVID-19. That increase was
largely offset by the effects of a decrease in the overall balance
of the portion of the loan portfolio that was collectively
evaluated for impairment at June 30, 2020. By comparison, the
provision for loan losses for the prior quarter ended March 31,
2020 totaled $6.3 million. The provision expense during the
prior comparative quarter reflected an estimate of approximately
$5.5 million of incurred losses specifically attributable to the
adverse impact of COVID-19. The remaining portion of the
provision during the earlier comparative period was largely
attributable to the effects of an increase in the overall balance
of the portion of the loan portfolio that was collectively
evaluated for impairment during that period.
- For the year ended June 30, 2020,
the Company recorded a provision for loan losses of $4.2 million,
reflecting an increase of $641,000 from $3.6 million for the year
ended June 30, 2019. The increase largely reflected increases to
environmental loss factors associated with the adverse impact of
COVID-19 that was partially offset by the effects of lower growth
during the year ended June 30, 2020 in the balance of the portion
of the loan portfolio that was collectively evaluated for
impairment compared to that of the prior year ended June 30,
2019.
- The allowance for loan losses
(“ALLL”) increased to $37.3 million, or 0.82% of total loans, at
June 30, 2020 from $37.2 million, or 0.81% of total loans, at March
31, 2020. For the year ended June 30, 2020, the allowance for
loan losses increased by $4.1 million from $33.3 million, or 0.70%
of total loans, at June 30, 2019. Excluding the balance of acquired
loans, which generally do not carry an ALLL, the ALLL as a
percentage of non-acquired loans at June 30, 2020 and June 30, 2019
totaled 1.03% and .91%, respectively. As of June 30, 2020,
the balance of acquired loans totaled $923.9 million, had remaining
purchase accounting discounts of $43.1 million, or 4.67% of the
applicable outstanding balance, with no associated ALLL. As the
Company operates on a non-calendar fiscal year, as of June 30,
2020, it had not yet adopted Accounting Standards Update 2016-13,
also known as the Current Expected Credit Loss (“CECL”)
standard.
Liquidity & Capital
- The Company maintains significant
sources of both on- and off-balance sheet liquidity. At June
30, 2020, the Company’s liquid assets included $181.0 million of
short-term cash and equivalents supplemented by $1.39 billion of
investment securities classified as available for sale which can be
readily sold or pledged as collateral, if necessary. In
addition, the Company had the capacity to borrow additional funds
totaling $615.0 million via unsecured lines of credit and $1.53
billion and $318.7 million, without pledging additional collateral,
from the Federal Home Loan Bank of New York and Federal Reserve
Bank, respectively.
- On March 25, 2020 the Company
temporarily suspended its stock repurchase program due to the risks
and uncertainties associated with the COVID-19 pandemic. Through
June 30, 2020, the Company repurchased 8,457,294 shares, or 91.7%
of the shares authorized for repurchase under the current
repurchase program, at a cost of $111.1 million, or an average of
$13.14 per share.
- For the quarter ended June 30,
2020, the Company maintained its regular quarterly cash dividend
paid to stockholders of $0.08 per share. For the year ended
June 30, 2020, total cash dividends paid to stockholders totaled
$0.29 per share.
- For the quarter ended June 30,
2020, book value per share increased by $0.17 to $12.96 at June 30,
2020 while tangible book value per share increased by $0.18 to
$10.39 at June 30, 2020. For the year ended June 30, 2020,
book value per share increased by $0.31 to $12.96 at June 30, 2020
while tangible book value per share increased by $0.17 to $10.39 at
June 30, 2020.
- At June 30, 2020 the Tier 1
leverage ratios of the Company and the Bank were 13.27% and 11.95%,
respectively. The remainder of the Company’s and Bank’s
regulatory capital ratios at June 30, 2020 were in excess of the
levels required by federal banking regulators to be classified as
“well-capitalized” under regulatory guidelines.
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.
In addition, the COVID-19 pandemic is having an
adverse impact on the Company, its customers and the communities it
serves. Given its ongoing and dynamic nature, it is difficult to
predict the full impact of the COVID-19 outbreak on our business.
The extent of such impact will depend on future developments, which
are highly uncertain, including when the coronavirus can be
controlled and abated and when and how the economy may be reopened.
As the result of the COVID-19 pandemic and the related
adverse local and national economic consequences, we could be
subject to any of the following risks, any of which could have a
material, adverse effect on our business, financial condition,
liquidity, and results of operations: the demand for our products
and services may decline, making it difficult to grow assets and
income; if the economy is unable to substantially reopen, and high
levels of unemployment continue for an extended period of time,
loan delinquencies, problem assets, and foreclosures may increase,
resulting in increased charges and reduced income; collateral for
loans, especially real estate, may decline in value, which could
cause loan losses to increase; our allowance for loan losses may
increase if borrowers experience financial difficulties, which will
adversely affect our net income; the net worth and liquidity of
loan guarantors may decline, impairing their ability to honor
commitments to us; as the result of the decline in the Federal
Reserve Board’s target federal funds rate to near 0%, the yield on
our assets may decline to a greater extent than the decline in our
cost of interest-bearing liabilities, reducing our net interest
margin and spread and reducing net income; due to a decline in our
stock price or other factors, goodwill may become impaired and be
required to be written down; and our cyber security risks are
increased as the result of an increase in the number of employees
working remotely.
| |
|
|
Linked-Quarter Comparative Financial Analysis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary Balance Sheet |
At |
|
|
|
|
Variance |
|
|
(Dollars and Shares in Thousands, |
June 30, |
|
March 31, |
|
Variance |
|
or
Change |
|
|
Except Per Share Data, Unaudited) |
2020 |
|
2020 |
|
or Change |
|
Pct. |
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
$ |
180,967 |
|
$ |
59,452 |
|
$ |
121,515 |
|
|
204.4 |
% |
| Securities available for
sale |
|
1,385,703 |
|
|
1,476,344 |
|
|
(90,641 |
) |
|
-6.1 |
% |
| Securities held to
maturity |
|
32,556 |
|
|
34,618 |
|
|
(2,062 |
) |
|
-6.0 |
% |
| Loans held-for-sale |
|
20,789 |
|
|
11,245 |
|
|
9,544 |
|
|
84.9 |
% |
| Loans receivable, including
yield adjustments |
|
4,498,397 |
|
|
4,562,512 |
|
|
(64,115 |
) |
|
-1.4 |
% |
|
Less allowance for loan losses |
|
(37,327 |
) |
|
(37,191 |
) |
|
(136 |
) |
|
0.4 |
% |
|
Net loans receivable |
|
4,461,070 |
|
|
4,525,321 |
|
|
(64,251 |
) |
|
-1.4 |
% |
| Premises and equipment |
|
57,389 |
|
|
58,985 |
|
|
(1,596 |
) |
|
-2.7 |
% |
| Federal Home Loan Bank
stock |
|
58,654 |
|
|
59,324 |
|
|
(670 |
) |
|
-1.1 |
% |
| Accrued interest
receivable |
|
17,373 |
|
|
19,036 |
|
|
(1,663 |
) |
|
-8.7 |
% |
| Goodwill |
|
210,895 |
|
|
210,895 |
|
|
- |
|
|
0.0 |
% |
| Core deposit intangible |
|
3,995 |
|
|
4,242 |
|
|
(247 |
) |
|
-5.8 |
% |
| Bank owned life insurance |
|
262,380 |
|
|
260,843 |
|
|
1,537 |
|
|
0.6 |
% |
| Deferred income taxes,
net |
|
25,480 |
|
|
27,150 |
|
|
(1,670 |
) |
|
-6.2 |
% |
| Other real estate owned |
|
178 |
|
|
178 |
|
|
- |
|
|
0.0 |
% |
| Other assets |
|
40,746 |
|
|
26,200 |
|
|
14,546 |
|
|
55.5 |
% |
|
Total assets |
$ |
6,758,175 |
|
$ |
6,773,833 |
|
$ |
(15,658 |
) |
|
-0.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits |
$ |
4,430,282 |
|
$ |
4,253,254 |
|
$ |
177,028 |
|
|
4.2 |
% |
| Borrowings |
|
1,173,165 |
|
|
1,384,025 |
|
|
(210,860 |
) |
|
-15.2 |
% |
| Advance payments by borrowers
for taxes |
|
16,569 |
|
|
16,492 |
|
|
77 |
|
|
0.5 |
% |
| Other liabilities |
|
53,982 |
|
|
50,390 |
|
|
3,592 |
|
|
7.1 |
% |
|
Total liabilities |
|
5,673,998 |
|
|
5,704,161 |
|
|
(30,163 |
) |
|
-0.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders'
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
| Common stock |
|
837 |
|
|
837 |
|
|
- |
|
|
0.0 |
% |
| Paid-in capital |
|
722,871 |
|
|
721,474 |
|
|
1,397 |
|
|
0.2 |
% |
| Retained earnings |
|
387,911 |
|
|
380,671 |
|
|
7,240 |
|
|
1.9 |
% |
| Unearned ESOP shares |
|
(28,699 |
) |
|
(29,185 |
) |
|
486 |
|
|
-1.7 |
% |
| Accumulated other
comprehensive (loss) income, net |
|
1,257 |
|
|
(4,125 |
) |
|
5,382 |
|
|
-130.5 |
% |
|
Total stockholders' equity |
|
1,084,177 |
|
|
1,069,672 |
|
|
14,505 |
|
|
1.4 |
% |
|
Total liabilities and stockholders' equity |
$ |
6,758,175 |
|
$ |
6,773,833 |
|
$ |
(15,658 |
) |
|
-0.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated capital
ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to assets |
|
16.04 |
% |
|
15.79 |
% |
|
0.25 |
% |
|
|
|
|
Tangible equity to tangible assets |
|
13.29 |
% |
|
13.03 |
% |
|
0.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Share
data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding shares |
|
83,663 |
|
|
83,664 |
|
|
(1 |
) |
|
0.0 |
% |
|
Book value per share |
$ |
12.96 |
|
$ |
12.79 |
|
$ |
0.17 |
|
|
1.3 |
% |
|
Tangible book value per share (1) |
$ |
10.39 |
|
$ |
10.21 |
|
$ |
0.18 |
|
|
1.8 |
% |
___________________ (1) Tangible book value
equals total stockholders' equity reduced by goodwill and core
deposit intangible assets.
| |
|
|
|
|
|
|
|
|
Summary Income Statement |
For the three months ended |
|
|
|
|
Variance |
|
|
(Dollars and Shares in Thousands, |
June 30, |
|
March 31, |
|
Variance |
|
or
Change |
|
|
Except Per Share Data, Unaudited) |
2020 |
|
2020 |
|
or Change |
|
Pct. |
|
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
46,192 |
|
$ |
46,603 |
|
$ |
(411 |
) |
|
-0.9 |
% |
|
Taxable investment securities |
|
9,769 |
|
|
10,526 |
|
|
(757 |
) |
|
-7.2 |
% |
|
Tax-exempt investment securities |
|
487 |
|
|
547 |
|
|
(60 |
) |
|
-11.0 |
% |
|
Other interest-earning assets |
|
903 |
|
|
1,100 |
|
|
(197 |
) |
|
-17.9 |
% |
|
Total Interest Income |
|
57,351 |
|
|
58,776 |
|
|
(1,425 |
) |
|
-2.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
12,439 |
|
|
14,768 |
|
|
(2,329 |
) |
|
-15.8 |
% |
|
Borrowings |
|
4,462 |
|
|
6,398 |
|
|
(1,936 |
) |
|
-30.3 |
% |
|
Total interest expense |
|
16,901 |
|
|
21,166 |
|
|
(4,265 |
) |
|
-20.2 |
% |
|
Net interest income |
|
40,450 |
|
|
37,610 |
|
|
2,840 |
|
|
7.6 |
% |
| Provision for loan losses |
|
174 |
|
|
6,270 |
|
|
(6,096 |
) |
|
-97.2 |
% |
|
Net interest income after provision
for loan losses |
|
40,276 |
|
|
31,340 |
|
|
8,936 |
|
|
28.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees and service charges |
|
1,696 |
|
|
1,338 |
|
|
358 |
|
|
26.8 |
% |
|
Gain on sale and call of securities |
|
19 |
|
|
2,234 |
|
|
(2,215 |
) |
|
-99.1 |
% |
|
Gain on sale of loans |
|
1,348 |
|
|
565 |
|
|
783 |
|
|
138.6 |
% |
|
Loss on sale and write down of other real estate owned |
|
- |
|
|
- |
|
|
- |
|
|
0.0 |
% |
|
Income from bank owned life insurance |
|
1,537 |
|
|
1,532 |
|
|
5 |
|
|
0.3 |
% |
|
Electronic banking fees and charges |
|
325 |
|
|
309 |
|
|
16 |
|
|
5.2 |
% |
|
Miscellaneous |
|
77 |
|
|
223 |
|
|
(146 |
) |
|
-65.5 |
% |
|
Total non-interest income |
|
5,002 |
|
|
6,201 |
|
|
(1,199 |
) |
|
-19.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
15,527 |
|
|
15,537 |
|
|
(10 |
) |
|
-0.1 |
% |
|
Net occupancy expense of premises |
|
2,688 |
|
|
2,685 |
|
|
3 |
|
|
0.1 |
% |
|
Equipment and systems |
|
2,948 |
|
|
2,672 |
|
|
276 |
|
|
10.3 |
% |
|
Advertising and marketing |
|
751 |
|
|
612 |
|
|
139 |
|
|
22.7 |
% |
|
Federal deposit insurance premium |
|
286 |
|
|
- |
|
|
286 |
|
|
0.0 |
% |
|
Directors' compensation |
|
769 |
|
|
771 |
|
|
(2 |
) |
|
-0.3 |
% |
|
Merger-related expenses |
|
447 |
|
|
285 |
|
|
162 |
|
|
56.8 |
% |
|
Debt extinguishment expenses |
|
- |
|
|
2,156 |
|
|
(2,156 |
) |
|
-100.0 |
% |
|
Miscellaneous |
|
3,475 |
|
|
3,344 |
|
|
131 |
|
|
3.9 |
% |
|
Total non-interest expense |
|
26,891 |
|
|
28,062 |
|
|
(1,171 |
) |
|
-4.2 |
% |
|
Income before income taxes |
|
18,387 |
|
|
9,479 |
|
|
8,908 |
|
|
94.0 |
% |
|
Income taxes |
|
4,698 |
|
|
225 |
|
|
4,473 |
|
|
1988.0 |
% |
|
Net income |
$ |
13,689 |
|
$ |
9,254 |
|
$ |
4,435 |
|
|
47.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per common
share (EPS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.17 |
|
$ |
0.11 |
|
$ |
0.06 |
|
|
|
|
|
Diluted |
$ |
0.17 |
|
$ |
0.11 |
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends
declared |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share |
$ |
0.08 |
|
$ |
0.08 |
|
$ |
- |
|
|
|
|
|
Cash dividends declared |
$ |
6,449 |
|
$ |
6,479 |
|
$ |
(30 |
) |
|
|
|
|
Dividend payout ratio |
|
47.1 |
% |
|
70.0 |
% |
|
-22.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average
number of common shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
80,678 |
|
|
81,339 |
|
|
(661 |
) |
|
|
|
|
Diluted |
|
80,680 |
|
|
81,358 |
|
|
(678 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
For the three months ended |
|
|
|
|
Variance |
|
|
Average Balance Sheet Data |
June 30, |
|
March 31, |
|
Variance |
|
or
Change |
|
|
(Dollars in Thousands, Unaudited) |
2020 |
|
2020 |
|
or Change |
|
Pct. |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable, including loans held for sale |
$ |
4,567,229 |
|
$ |
4,503,996 |
|
$ |
63,233 |
|
|
1.4 |
% |
|
Taxable investment securities |
|
1,369,014 |
|
|
1,406,973 |
|
|
(37,959 |
) |
|
-2.7 |
% |
|
Tax-exempt investment securities |
|
89,263 |
|
|
101,771 |
|
|
(12,508 |
) |
|
-12.3 |
% |
|
Other interest-earning assets |
|
141,964 |
|
|
104,241 |
|
|
37,723 |
|
|
36.2 |
% |
|
Total interest-earning assets |
|
6,167,470 |
|
|
6,116,981 |
|
|
50,489 |
|
|
0.8 |
% |
| Non-interest-earning
assets |
|
605,876 |
|
|
598,335 |
|
|
7,541 |
|
|
1.3 |
% |
|
Total assets |
$ |
6,773,346 |
|
$ |
6,715,316 |
|
$ |
58,030 |
|
|
0.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
$ |
1,189,044 |
|
$ |
1,112,080 |
|
$ |
76,964 |
|
|
6.9 |
% |
|
Savings |
|
876,580 |
|
|
838,501 |
|
|
38,079 |
|
|
4.5 |
% |
|
Certificates of deposit |
|
1,879,039 |
|
|
2,004,785 |
|
|
(125,746 |
) |
|
-6.3 |
% |
|
Total interest-bearing deposits |
|
3,944,663 |
|
|
3,955,366 |
|
|
(10,703 |
) |
|
-0.3 |
% |
|
Borrowings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home Loan Bank advances |
|
1,202,522 |
|
|
1,208,627 |
|
|
(6,105 |
) |
|
-0.5 |
% |
|
Other borrowings |
|
96,770 |
|
|
87,072 |
|
|
9,698 |
|
|
11.1 |
% |
|
Total borrowings |
|
1,299,292 |
|
|
1,295,699 |
|
|
3,593 |
|
|
0.3 |
% |
|
Total interest-bearing liabilities |
|
5,243,955 |
|
|
5,251,065 |
|
|
(7,110 |
) |
|
-0.1 |
% |
| Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
380,067 |
|
|
317,530 |
|
|
62,537 |
|
|
19.7 |
% |
|
Other non-interest-bearing liabilities |
|
72,007 |
|
|
55,456 |
|
|
16,551 |
|
|
29.8 |
% |
|
Total non-interest-bearing liabilities |
|
452,074 |
|
|
372,986 |
|
|
79,088 |
|
|
21.2 |
% |
|
Total liabilities |
|
5,696,029 |
|
|
5,624,051 |
|
|
71,978 |
|
|
1.3 |
% |
| Stockholders' equity |
|
1,077,317 |
|
|
1,091,265 |
|
|
(13,948 |
) |
|
-1.3 |
% |
|
Total liabilities and stockholders' equity |
$ |
6,773,346 |
|
$ |
6,715,316 |
|
$ |
58,030 |
|
|
0.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest-earning assets to average interest-bearing
liabilities |
|
117.61 |
% |
|
116.49 |
% |
|
1.12 |
% |
|
1.0 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
For the three months ended |
|
|
|
|
|
|
June 30, |
|
March 31, |
|
Variance |
|
|
Performance Ratio Highlights |
2020 |
|
2020 |
|
or Change |
|
|
Average yield on interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
Loans receivable, including loans held for sale |
|
4.05 |
% |
|
4.14 |
% |
|
-0.09 |
% |
|
Taxable investment securities |
|
2.85 |
% |
|
2.99 |
% |
|
-0.14 |
% |
|
Tax-exempt investment securities (1) |
|
2.18 |
% |
|
2.15 |
% |
|
0.03 |
% |
|
Other interest-earning assets |
|
2.54 |
% |
|
4.22 |
% |
|
-1.68 |
% |
|
Total interest-earning assets |
|
3.72 |
% |
|
3.84 |
% |
|
-0.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
| Average cost of
interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
|
0.72 |
% |
|
1.17 |
% |
|
-0.45 |
% |
|
Savings |
|
0.81 |
% |
|
0.85 |
% |
|
-0.04 |
% |
|
Certificates of deposit |
|
1.82 |
% |
|
1.94 |
% |
|
-0.12 |
% |
|
Total interest-bearing deposits |
|
1.26 |
% |
|
1.49 |
% |
|
-0.23 |
% |
|
Borrowings: |
|
|
|
|
|
|
|
|
|
|
Federal Home Loan Bank advances |
|
1.47 |
% |
|
2.03 |
% |
|
-0.56 |
% |
|
Other borrowings |
|
0.13 |
% |
|
1.17 |
% |
|
-1.04 |
% |
|
Total borrowings |
|
1.37 |
% |
|
1.98 |
% |
|
-0.61 |
% |
|
Total interest-bearing liabilities |
|
1.29 |
% |
|
1.61 |
% |
|
-0.32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread (2) |
|
2.43 |
% |
|
2.23 |
% |
|
0.20 |
% |
|
Net interest margin (3) |
|
2.62 |
% |
|
2.46 |
% |
|
0.16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income to average assets (annualized) |
|
0.30 |
% |
|
0.37 |
% |
|
-0.07 |
% |
|
Non-interest expense to average assets (annualized) |
|
1.59 |
% |
|
1.67 |
% |
|
-0.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (4) |
|
59.16 |
% |
|
64.05 |
% |
|
-4.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (annualized) |
|
0.81 |
% |
|
0.55 |
% |
|
0.26 |
% |
|
Return on average equity (annualized) |
|
5.08 |
% |
|
3.39 |
% |
|
1.69 |
% |
|
Return on average tangible equity (annualized) (5) |
|
6.35 |
% |
|
4.23 |
% |
|
2.12 |
% |
___________________(1) The yield on tax-exempt
investment securities has not been adjusted to reflect their
tax-effective yield.(2) Interest income divided by average
interest-earning assets less interest expense divided by average
interest-bearing liabilities.(3) Net interest income divided by
average interest-earning assets.(4) Non-interest expense divided by
the sum of net interest income and non-interest income.(5) Average
tangible equity equals total average stockholders’ equity reduced
by average goodwill and average core deposit intangible assets.
| |
|
|
Year-to-Year Comparative Financial Analysis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary Balance Sheet |
At |
|
|
|
|
Variance |
|
|
(Dollars and Shares in Thousands, |
June 30, |
|
June 30, |
|
Variance |
|
or
Change |
|
|
Except Per Share Data, Unaudited) |
2020 |
|
2019 |
|
or Change |
|
Pct. |
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
$ |
180,967 |
|
$ |
38,935 |
|
$ |
142,032 |
|
|
364.8 |
% |
| Securities available for
sale |
|
1,385,703 |
|
|
714,263 |
|
|
671,440 |
|
|
94.0 |
% |
| Securities held to
maturity |
|
32,556 |
|
|
576,652 |
|
|
(544,096 |
) |
|
-94.4 |
% |
| Loans held-for-sale |
|
20,789 |
|
|
12,267 |
|
|
8,522 |
|
|
69.5 |
% |
| Loans receivable, including
yield adjustments |
|
4,498,397 |
|
|
4,678,928 |
|
|
(180,531 |
) |
|
-3.9 |
% |
|
Less allowance for loan losses |
|
(37,327 |
) |
|
(33,274 |
) |
|
(4,053 |
) |
|
12.2 |
% |
|
Net loans receivable |
|
4,461,070 |
|
|
4,645,654 |
|
|
(184,584 |
) |
|
-4.0 |
% |
| Premises and equipment |
|
57,389 |
|
|
56,854 |
|
|
535 |
|
|
0.9 |
% |
| Federal Home Loan Bank of New
York stock |
|
58,654 |
|
|
64,190 |
|
|
(5,536 |
) |
|
-8.6 |
% |
| Accrued interest
receivable |
|
17,373 |
|
|
19,360 |
|
|
(1,987 |
) |
|
-10.3 |
% |
| Goodwill |
|
210,895 |
|
|
210,895 |
|
|
- |
|
|
0.0 |
% |
| Core deposit intangible |
|
3,995 |
|
|
5,160 |
|
|
(1,165 |
) |
|
-22.6 |
% |
| Bank owned life insurance |
|
262,380 |
|
|
256,155 |
|
|
6,225 |
|
|
2.4 |
% |
| Deferred income tax assets,
net |
|
25,480 |
|
|
25,367 |
|
|
113 |
|
|
0.4 |
% |
| Other real estate owned |
|
178 |
|
|
- |
|
|
178 |
|
|
0.0 |
% |
| Other assets |
|
40,746 |
|
|
9,077 |
|
|
31,669 |
|
|
348.9 |
% |
|
Total assets |
$ |
6,758,175 |
|
$ |
6,634,829 |
|
$ |
123,346 |
|
|
1.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits |
$ |
4,430,282 |
|
$ |
4,147,610 |
|
$ |
282,672 |
|
|
6.8 |
% |
| Borrowings |
|
1,173,165 |
|
|
1,321,982 |
|
|
(148,817 |
) |
|
-11.3 |
% |
| Advance payments by borrowers
for taxes |
|
16,569 |
|
|
16,887 |
|
|
(318 |
) |
|
-1.9 |
% |
| Other liabilities |
|
53,982 |
|
|
21,191 |
|
|
32,791 |
|
|
154.7 |
% |
|
Total liabilities |
|
5,673,998 |
|
|
5,507,670 |
|
|
166,328 |
|
|
3.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders'
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
| Common stock |
$ |
837 |
|
$ |
891 |
|
$ |
(54 |
) |
|
-6.1 |
% |
| Paid-in capital |
|
722,871 |
|
|
787,394 |
|
|
(64,523 |
) |
|
-8.2 |
% |
| Retained earnings |
|
387,911 |
|
|
366,679 |
|
|
21,232 |
|
|
5.8 |
% |
| Unearned ESOP shares |
|
(28,699 |
) |
|
(30,644 |
) |
|
1,945 |
|
|
-6.3 |
% |
| Accumulated other
comprehensive income, net |
|
1,257 |
|
|
2,839 |
|
|
(1,582 |
) |
|
-55.7 |
% |
|
Total stockholders' equity |
|
1,084,177 |
|
|
1,127,159 |
|
|
(42,982 |
) |
|
-3.8 |
% |
|
Total liabilities and stockholders' equity |
$ |
6,758,175 |
|
$ |
6,634,829 |
|
$ |
123,346 |
|
|
1.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated capital
ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to assets |
|
16.04 |
% |
|
16.99 |
% |
|
-0.95 |
% |
|
|
|
|
Tangible equity to tangible assets |
|
13.29 |
% |
|
14.19 |
% |
|
-0.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Share
data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding shares |
|
83,663 |
|
|
89,126 |
|
|
(5,463 |
) |
|
-6.1 |
% |
|
Book value per share |
$ |
12.96 |
|
$ |
12.65 |
|
$ |
0.31 |
|
|
2.5 |
% |
|
Tangible book value per share (1) |
$ |
10.39 |
|
$ |
10.22 |
|
$ |
0.17 |
|
|
1.7 |
% |
___________________(1) Tangible book value
equals total stockholders' equity reduced by goodwill and core
deposit intangible assets.
| |
|
|
|
|
|
|
|
|
Summary Income Statement |
For the year ended |
|
|
|
|
Variance |
|
|
(Dollars and Shares in Thousands, |
June 30, |
|
June 30, |
|
Variance |
|
or
Change |
|
|
Except Per Share Data, Unaudited) |
2020 |
|
2019 |
|
or Change |
|
Pct. |
|
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
187,003 |
|
$ |
192,386 |
|
$ |
(5,383 |
) |
|
-2.8 |
% |
|
Taxable investment securities |
|
39,321 |
|
|
37,213 |
|
|
2,108 |
|
|
5.7 |
% |
|
Tax-exempt investment securities |
|
2,393 |
|
|
2,839 |
|
|
(446 |
) |
|
-15.7 |
% |
|
Other interest-earning assets |
|
4,491 |
|
|
4,895 |
|
|
(404 |
) |
|
-8.3 |
% |
|
Total Interest Income |
|
233,208 |
|
|
237,333 |
|
|
(4,125 |
) |
|
-1.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
58,852 |
|
|
52,511 |
|
|
6,341 |
|
|
12.1 |
% |
|
Borrowings |
|
25,002 |
|
|
29,509 |
|
|
(4,507 |
) |
|
-15.3 |
% |
|
Total interest expense |
|
83,854 |
|
|
82,020 |
|
|
1,834 |
|
|
2.2 |
% |
|
Net interest income |
|
149,354 |
|
|
155,313 |
|
|
(5,959 |
) |
|
-3.8 |
% |
| Provision for loan losses |
|
4,197 |
|
|
3,556 |
|
|
641 |
|
|
18.0 |
% |
|
Net interest income after provision
for loan losses |
|
145,157 |
|
|
151,757 |
|
|
(6,600 |
) |
|
-4.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees and service charges |
|
6,647 |
|
|
5,445 |
|
|
1,202 |
|
|
22.1 |
% |
|
Gain (loss) on sale and call of securities |
|
2,250 |
|
|
(323 |
) |
|
2,573 |
|
|
796.6 |
% |
|
Gain on sale of loans |
|
3,186 |
|
|
580 |
|
|
2,606 |
|
|
449.3 |
% |
|
Loss on sale of real estate owned |
|
(28 |
) |
|
(11 |
) |
|
(17 |
) |
|
154.5 |
% |
|
Income from bank owned life insurance |
|
6,225 |
|
|
6,339 |
|
|
(114 |
) |
|
-1.8 |
% |
|
Electronic banking fees and charges |
|
1,245 |
|
|
1,050 |
|
|
195 |
|
|
18.6 |
% |
|
Miscellaneous |
|
194 |
|
|
475 |
|
|
(281 |
) |
|
-59.2 |
% |
|
Total non-interest income |
|
19,719 |
|
|
13,555 |
|
|
6,164 |
|
|
45.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
62,015 |
|
|
63,029 |
|
|
(1,014 |
) |
|
-1.6 |
% |
|
Net occupancy expense of premises |
|
11,424 |
|
|
11,220 |
|
|
204 |
|
|
1.8 |
% |
|
Equipment and systems |
|
11,755 |
|
|
12,273 |
|
|
(518 |
) |
|
-4.2 |
% |
|
Advertising and marketing |
|
2,788 |
|
|
3,051 |
|
|
(263 |
) |
|
-8.6 |
% |
|
Federal deposit insurance premium |
|
286 |
|
|
1,779 |
|
|
(1,493 |
) |
|
-83.9 |
% |
|
Directors' compensation |
|
3,079 |
|
|
3,044 |
|
|
35 |
|
|
1.1 |
% |
|
Merger-related expenses |
|
951 |
|
|
- |
|
|
951 |
|
|
0.0 |
% |
|
Debt extinguishment expenses |
|
2,156 |
|
|
- |
|
|
2,156 |
|
|
0.0 |
% |
|
Miscellaneous |
|
13,170 |
|
|
14,847 |
|
|
(1,677 |
) |
|
-11.3 |
% |
|
Total non-interest expense |
|
107,624 |
|
|
109,243 |
|
|
(1,619 |
) |
|
-1.5 |
% |
|
Income before income taxes |
|
57,252 |
|
|
56,069 |
|
|
1,183 |
|
|
2.1 |
% |
|
Income taxes |
|
12,287 |
|
|
13,927 |
|
|
(1,640 |
) |
|
-11.8 |
% |
|
Net income |
$ |
44,965 |
|
$ |
42,142 |
|
$ |
2,823 |
|
|
6.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per common
share (EPS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.55 |
|
$ |
0.46 |
|
$ |
0.09 |
|
|
|
|
|
Diluted |
$ |
0.55 |
|
$ |
0.46 |
|
$ |
0.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends
declared |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share |
$ |
0.29 |
|
$ |
0.37 |
|
$ |
(0.08 |
) |
|
|
|
|
Cash dividends declared |
$ |
23,733 |
|
$ |
34,028 |
|
$ |
(10,295 |
) |
|
|
|
|
Dividend payout ratio |
|
52.8 |
% |
|
80.7 |
% |
|
-28.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average
number of common shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
82,409 |
|
|
91,054 |
|
|
(8,645 |
) |
|
|
|
|
Diluted |
|
82,430 |
|
|
91,100 |
|
|
(8,670 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
For the year ended |
|
|
|
|
Variance |
|
|
Average Balance Sheet Data |
June 30, |
|
June 30, |
|
Variance |
|
or
Change |
|
|
(Dollars in Thousands, Unaudited) |
2020 |
|
2019 |
|
or Change |
|
Pct. |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable, including loans held for sale |
$ |
4,568,816 |
|
$ |
4,669,436 |
|
$ |
(100,620 |
) |
|
-2.2 |
% |
|
Taxable investment securities |
|
1,291,516 |
|
|
1,171,335 |
|
|
120,181 |
|
|
10.3 |
% |
|
Tax-exempt investment securities |
|
111,477 |
|
|
134,489 |
|
|
(23,012 |
) |
|
-17.1 |
% |
|
Other interest-earning assets |
|
122,278 |
|
|
101,595 |
|
|
20,683 |
|
|
20.4 |
% |
|
Total interest-earning assets |
|
6,094,087 |
|
|
6,076,855 |
|
|
17,232 |
|
|
0.3 |
% |
| Non-interest-earning
assets |
|
595,158 |
|
|
582,838 |
|
|
12,320 |
|
|
2.1 |
% |
|
Total assets |
$ |
6,689,245 |
|
$ |
6,659,693 |
|
$ |
29,552 |
|
|
0.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
$ |
1,041,188 |
|
$ |
796,815 |
|
$ |
244,373 |
|
|
30.7 |
% |
|
Savings |
|
831,832 |
|
|
761,203 |
|
|
70,629 |
|
|
9.3 |
% |
|
Certificates of deposit |
|
2,032,046 |
|
|
2,194,513 |
|
|
(162,467 |
) |
|
-7.4 |
% |
|
Total interest-bearing deposits |
|
3,905,066 |
|
|
3,752,531 |
|
|
152,535 |
|
|
4.1 |
% |
|
Borrowings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home Loan Bank Advances |
|
1,236,139 |
|
|
1,305,171 |
|
|
(69,032 |
) |
|
-5.3 |
% |
|
Other borrowings |
|
56,957 |
|
|
54,152 |
|
|
2,805 |
|
|
5.2 |
% |
|
Total borrowings |
|
1,293,096 |
|
|
1,359,323 |
|
|
(66,227 |
) |
|
-4.9 |
% |
|
Total interest-bearing liabilities |
|
5,198,162 |
|
|
5,111,854 |
|
|
86,308 |
|
|
1.7 |
% |
| Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
334,522 |
|
|
312,169 |
|
|
22,353 |
|
|
7.2 |
% |
|
Other non-interest-bearing liabilities |
|
60,236 |
|
|
39,048 |
|
|
21,188 |
|
|
54.3 |
% |
|
Total non-interest-bearing liabilities |
|
394,758 |
|
|
351,217 |
|
|
43,541 |
|
|
12.4 |
% |
|
Total liabilities |
|
5,592,920 |
|
|
5,463,071 |
|
|
129,849 |
|
|
2.4 |
% |
| Stockholders' equity |
|
1,096,325 |
|
|
1,196,622 |
|
|
(100,297 |
) |
|
-8.4 |
% |
|
Total liabilities and stockholders' equity |
$ |
6,689,245 |
|
$ |
6,659,693 |
|
$ |
29,552 |
|
|
0.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest-earning assets to average interest-bearing
liabilities |
|
117.24 |
% |
|
118.88 |
% |
|
-1.64 |
% |
|
-1.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
For the year ended |
|
|
|
|
|
|
June 30, |
|
June 30, |
|
Variance |
|
|
Performance Ratio Highlights |
2020 |
|
2019 |
|
or Change |
|
|
Average yield on interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
Loans receivable, including loans held for sale |
|
4.09 |
% |
|
4.12 |
% |
|
-0.03 |
% |
|
Taxable investment securities |
|
3.04 |
% |
|
3.18 |
% |
|
-0.14 |
% |
|
Tax-exempt investment securities (1) |
|
2.15 |
% |
|
2.11 |
% |
|
0.04 |
% |
|
Other interest-earning assets |
|
3.67 |
% |
|
4.82 |
% |
|
-1.15 |
% |
|
Total interest-earning assets |
|
3.83 |
% |
|
3.91 |
% |
|
-0.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
| Average cost of
interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
|
1.10 |
% |
|
1.02 |
% |
|
0.08 |
% |
|
Savings |
|
0.81 |
% |
|
0.55 |
% |
|
0.26 |
% |
|
Certificates of deposit |
|
2.00 |
% |
|
1.83 |
% |
|
0.17 |
% |
|
Total interest-bearing deposits |
|
1.51 |
% |
|
1.40 |
% |
|
0.11 |
% |
|
Borrowings: |
|
|
|
|
|
|
|
|
|
|
Federal Home Loan Bank Advances |
|
1.99 |
% |
|
2.20 |
% |
|
-0.21 |
% |
|
Other borrowings |
|
0.74 |
% |
|
1.45 |
% |
|
-0.71 |
% |
|
Total borrowings |
|
1.93 |
% |
|
2.17 |
% |
|
-0.24 |
% |
|
Total interest-bearing liabilities |
|
1.61 |
% |
|
1.60 |
% |
|
0.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread (2) |
|
2.22 |
% |
|
2.31 |
% |
|
-0.09 |
% |
|
Net interest margin (3) |
|
2.45 |
% |
|
2.56 |
% |
|
-0.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income to average assets |
|
0.29 |
% |
|
0.20 |
% |
|
0.09 |
% |
|
Non-interest expense to average assets |
|
1.61 |
% |
|
1.64 |
% |
|
-0.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (4) |
|
63.66 |
% |
|
64.69 |
% |
|
-1.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.67 |
% |
|
0.63 |
% |
|
0.04 |
% |
|
Return on average equity |
|
4.10 |
% |
|
3.52 |
% |
|
0.58 |
% |
|
Return on average tangible equity (5) |
|
5.10 |
% |
|
4.30 |
% |
|
0.80 |
% |
__________________(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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary Balance Sheet |
At |
|
|
(Dollars and Shares in Thousands, |
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
Except Per Share Data, Unaudited) |
2020 |
|
2020 |
|
2019 |
|
2019 |
|
2019 |
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
$ |
180,967 |
|
$ |
59,452 |
|
$ |
41,796 |
|
$ |
129,305 |
|
$ |
38,935 |
|
| Securities available for
sale |
|
1,385,703 |
|
|
1,476,344 |
|
|
1,402,206 |
|
|
1,231,691 |
|
|
714,263 |
|
| Securities held to
maturity |
|
32,556 |
|
|
34,618 |
|
|
36,073 |
|
|
37,888 |
|
|
576,652 |
|
| Loans held-for-sale |
|
20,789 |
|
|
11,245 |
|
|
5,952 |
|
|
10,495 |
|
|
12,267 |
|
| Loans receivable, including
yield adjustments |
|
4,498,397 |
|
|
4,562,512 |
|
|
4,492,697 |
|
|
4,604,738 |
|
|
4,678,928 |
|
|
Less allowance for loan losses |
|
(37,327 |
) |
|
(37,191 |
) |
|
(30,937 |
) |
|
(32,432 |
) |
|
(33,274 |
) |
|
Net loans receivable |
|
4,461,070 |
|
|
4,525,321 |
|
|
4,461,760 |
|
|
4,572,306 |
|
|
4,645,654 |
|
| Premises and equipment |
|
57,389 |
|
|
58,985 |
|
|
56,542 |
|
|
56,599 |
|
|
56,854 |
|
| Federal Home Loan Bank
stock |
|
58,654 |
|
|
59,324 |
|
|
62,838 |
|
|
63,739 |
|
|
64,190 |
|
| Accrued interest
receivable |
|
17,373 |
|
|
19,036 |
|
|
18,261 |
|
|
19,393 |
|
|
19,360 |
|
| Goodwill |
|
210,895 |
|
|
210,895 |
|
|
210,895 |
|
|
210,895 |
|
|
210,895 |
|
| Core deposit intangible |
|
3,995 |
|
|
4,242 |
|
|
4,545 |
|
|
4,852 |
|
|
5,160 |
|
| Bank owned life insurance |
|
262,380 |
|
|
260,843 |
|
|
259,312 |
|
|
257,735 |
|
|
256,155 |
|
| Deferred income taxes,
net |
|
25,480 |
|
|
27,150 |
|
|
20,438 |
|
|
21,742 |
|
|
25,367 |
|
| Other real estate owned |
|
178 |
|
|
178 |
|
|
178 |
|
|
- |
|
|
- |
|
| Other assets |
|
40,746 |
|
|
26,200 |
|
|
29,605 |
|
|
24,366 |
|
|
9,077 |
|
|
Total assets |
$ |
6,758,175 |
|
$ |
6,773,833 |
|
$ |
6,610,401 |
|
$ |
6,641,006 |
|
$ |
6,634,829 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits |
$ |
4,430,282 |
|
$ |
4,253,254 |
|
$ |
4,188,822 |
|
$ |
4,197,250 |
|
$ |
4,147,610 |
|
| Borrowings |
|
1,173,165 |
|
|
1,384,025 |
|
|
1,275,049 |
|
|
1,281,118 |
|
|
1,321,982 |
|
| Advance payments by borrowers
for taxes |
|
16,569 |
|
|
16,492 |
|
|
16,585 |
|
|
16,102 |
|
|
16,887 |
|
| Other liabilities |
|
53,982 |
|
|
50,390 |
|
|
35,375 |
|
|
35,747 |
|
|
21,191 |
|
|
Total liabilities |
|
5,673,998 |
|
|
5,704,161 |
|
|
5,515,831 |
|
|
5,530,217 |
|
|
5,507,670 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders'
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common stock |
|
837 |
|
|
837 |
|
|
851 |
|
|
868 |
|
|
891 |
|
| Paid-in capital |
|
722,871 |
|
|
721,474 |
|
|
737,539 |
|
|
758,385 |
|
|
787,394 |
|
| Retained earnings |
|
387,911 |
|
|
380,671 |
|
|
377,896 |
|
|
373,004 |
|
|
366,679 |
|
| Unearned ESOP shares |
|
(28,699 |
) |
|
(29,185 |
) |
|
(29,671 |
) |
|
(30,158 |
) |
|
(30,644 |
) |
| Accumulated other
comprehensive (loss) income, net |
|
1,257 |
|
|
(4,125 |
) |
|
7,955 |
|
|
8,690 |
|
|
2,839 |
|
|
Total stockholders' equity |
|
1,084,177 |
|
|
1,069,672 |
|
|
1,094,570 |
|
|
1,110,789 |
|
|
1,127,159 |
|
|
Total liabilities and stockholders' equity |
$ |
6,758,175 |
|
$ |
6,773,833 |
|
$ |
6,610,401 |
|
$ |
6,641,006 |
|
$ |
6,634,829 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated capital
ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to assets |
|
16.04 |
% |
|
15.79 |
% |
|
16.56 |
% |
|
16.73 |
% |
|
16.99 |
% |
|
Tangible equity to tangible assets |
|
13.29 |
% |
|
13.03 |
% |
|
13.75 |
% |
|
13.93 |
% |
|
14.19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Share
data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding shares |
|
83,663 |
|
|
83,664 |
|
|
85,150 |
|
|
86,786 |
|
|
89,126 |
|
|
Book value per share |
$ |
12.96 |
|
$ |
12.79 |
|
$ |
12.85 |
|
$ |
12.80 |
|
$ |
12.65 |
|
|
Tangible book value per share (1) |
$ |
10.39 |
|
$ |
10.21 |
|
$ |
10.32 |
|
$ |
10.31 |
|
$ |
10.22 |
|
___________________(1) Tangible book value
equals total stockholders' equity reduced by goodwill and core
deposit intangible assets.
| |
|
|
|
|
At |
|
|
Supplemental Balance Sheet Highlights |
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
(Dollars in Thousands, Unaudited) |
2020 |
|
2020 |
|
2019 |
|
2019 |
|
2019 |
|
|
Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from depository institutions |
$ |
20,391 |
|
$ |
20,200 |
|
$ |
17,843 |
|
$ |
16,106 |
|
$ |
19,032 |
|
|
Interest-bearing deposits in other banks |
|
160,576 |
|
|
39,252 |
|
|
23,953 |
|
|
113,199 |
|
|
19,903 |
|
|
Total cash and cash equivalents |
$ |
180,967 |
|
$ |
59,452 |
|
$ |
41,796 |
|
$ |
129,305 |
|
$ |
38,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Securities available
for sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency securities |
$ |
- |
|
$ |
- |
|
$ |
606 |
|
$ |
694 |
|
$ |
3,678 |
|
|
Municipal and state obligations |
|
54,054 |
|
|
58,151 |
|
|
88,057 |
|
|
91,050 |
|
|
26,951 |
|
|
Asset-backed securities |
|
172,447 |
|
|
169,102 |
|
|
177,676 |
|
|
181,068 |
|
|
179,313 |
|
|
Collateralized loan obligations |
|
193,788 |
|
|
189,565 |
|
|
198,324 |
|
|
198,549 |
|
|
208,611 |
|
|
Corporate bonds |
|
143,639 |
|
|
163,715 |
|
|
192,074 |
|
|
191,241 |
|
|
122,024 |
|
|
Trust preferred securities |
|
2,627 |
|
|
2,852 |
|
|
3,795 |
|
|
3,775 |
|
|
3,756 |
|
|
Debt securities |
|
566,555 |
|
|
583,385 |
|
|
660,532 |
|
|
666,377 |
|
|
544,333 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collateralized mortgage obligations |
|
30,903 |
|
|
34,671 |
|
|
57,839 |
|
|
63,594 |
|
|
21,390 |
|
|
Residential pass-through securities |
|
561,954 |
|
|
607,113 |
|
|
360,900 |
|
|
202,858 |
|
|
44,303 |
|
|
Commercial pass-through securities |
|
226,291 |
|
|
251,175 |
|
|
322,935 |
|
|
298,862 |
|
|
104,237 |
|
|
Mortgage-backed securities |
|
819,148 |
|
|
892,959 |
|
|
741,674 |
|
|
565,314 |
|
|
169,930 |
|
|
Total securities available for sale |
$ |
1,385,703 |
|
$ |
1,476,344 |
|
$ |
1,402,206 |
|
$ |
1,231,691 |
|
$ |
714,263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Securities held to
maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal and state obligations |
$ |
32,556 |
|
$ |
34,618 |
|
$ |
36,073 |
|
$ |
37,888 |
|
$ |
104,086 |
|
|
Corporate bonds |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
63,086 |
|
|
Debt securities |
|
32,556 |
|
|
34,618 |
|
|
36,073 |
|
|
37,888 |
|
|
167,172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collateralized mortgage obligations |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
46,381 |
|
|
Residential pass-through securities |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
166,283 |
|
|
Commercial pass-through securities |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
196,816 |
|
|
Mortgage-backed securities |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
409,480 |
|
|
Total securities held to maturity |
$ |
32,556 |
|
$ |
34,618 |
|
$ |
36,073 |
|
$ |
37,888 |
|
$ |
576,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities |
$ |
1,418,259 |
|
$ |
1,510,962 |
|
$ |
1,438,279 |
|
$ |
1,269,579 |
|
$ |
1,290,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
At |
|
|
Supplemental Balance Sheet Highlights |
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
(Dollars in Thousands, Unaudited) |
2020 |
|
2020 |
|
2019 |
|
2019 |
|
2019 |
|
|
Loan portfolio composition: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family |
$ |
2,059,568 |
|
$ |
1,879,907 |
|
$ |
1,856,591 |
|
$ |
1,922,968 |
|
$ |
1,946,391 |
|
|
Nonresidential |
|
960,853 |
|
|
1,202,652 |
|
|
1,172,213 |
|
|
1,230,963 |
|
|
1,258,869 |
|
|
Commercial business |
|
138,788 |
|
|
73,922 |
|
|
67,887 |
|
|
66,889 |
|
|
65,763 |
|
|
Construction |
|
20,961 |
|
|
17,880 |
|
|
16,221 |
|
|
14,637 |
|
|
13,907 |
|
|
Total commercial loans |
|
3,180,170 |
|
|
3,174,361 |
|
|
3,112,912 |
|
|
3,235,457 |
|
|
3,284,930 |
|
|
One- to four-family residential mortgage loans |
|
1,273,022 |
|
|
1,338,099 |
|
|
1,331,301 |
|
|
1,319,750 |
|
|
1,344,044 |
|
|
Consumer loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home equity loans and lines of credit |
|
82,920 |
|
|
87,909 |
|
|
89,916 |
|
|
93,304 |
|
|
96,165 |
|
|
Other consumer loans |
|
3,991 |
|
|
4,604 |
|
|
4,908 |
|
|
5,209 |
|
|
5,814 |
|
|
Total consumer loans |
|
86,911 |
|
|
92,513 |
|
|
94,824 |
|
|
98,513 |
|
|
101,979 |
|
|
Total loans, excluding yield adjustments |
|
4,540,103 |
|
|
4,604,973 |
|
|
4,539,037 |
|
|
4,653,720 |
|
|
4,730,953 |
|
|
Unaccreted yield adjustments |
|
(41,706 |
) |
|
(42,461 |
) |
|
(46,340 |
) |
|
(48,982 |
) |
|
(52,025 |
) |
|
Loans receivable, net of yield adjustments |
|
4,498,397 |
|
|
4,562,512 |
|
|
4,492,697 |
|
|
4,604,738 |
|
|
4,678,928 |
|
|
Less allowance for loan losses |
|
(37,327 |
) |
|
(37,191 |
) |
|
(30,937 |
) |
|
(32,432 |
) |
|
(33,274 |
) |
|
Net loans receivable |
$ |
4,461,070 |
|
$ |
4,525,321 |
|
$ |
4,461,760 |
|
$ |
4,572,306 |
|
$ |
4,645,654 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loan portfolio
allocation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family |
|
45.3 |
% |
|
40.8 |
% |
|
40.9 |
% |
|
41.3 |
% |
|
41.2 |
% |
|
Nonresidential |
|
21.2 |
% |
|
26.1 |
% |
|
25.8 |
% |
|
26.5 |
% |
|
26.6 |
% |
|
Commercial business |
|
3.1 |
% |
|
1.6 |
% |
|
1.5 |
% |
|
1.4 |
% |
|
1.4 |
% |
|
Construction |
|
0.4 |
% |
|
0.4 |
% |
|
0.4 |
% |
|
0.3 |
% |
|
0.3 |
% |
|
Total commercial loans |
|
70.0 |
% |
|
68.9 |
% |
|
68.6 |
% |
|
69.5 |
% |
|
69.5 |
% |
|
One- to four-family residential mortgage loans |
|
28.1 |
% |
|
29.1 |
% |
|
29.3 |
% |
|
28.4 |
% |
|
28.4 |
% |
|
Consumer loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home equity loans and lines of credit |
|
1.8 |
% |
|
1.9 |
% |
|
2.0 |
% |
|
2.0 |
% |
|
2.0 |
% |
|
Other consumer loans |
|
0.1 |
% |
|
0.1 |
% |
|
0.1 |
% |
|
0.1 |
% |
|
0.1 |
% |
|
Total consumer loans |
|
1.9 |
% |
|
2.0 |
% |
|
2.1 |
% |
|
2.1 |
% |
|
2.1 |
% |
|
Total loans, excluding yield adjustments |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Asset
quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nonperforming assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing loans - 90 days and over past due |
$ |
5 |
|
$ |
12 |
|
$ |
19 |
|
$ |
15 |
|
$ |
22 |
|
|
Nonaccrual loans |
|
36,691 |
|
|
35,384 |
|
|
21,935 |
|
|
21,766 |
|
|
20,248 |
|
|
Total nonperforming loans |
|
36,696 |
|
|
35,396 |
|
|
21,954 |
|
|
21,781 |
|
|
20,270 |
|
|
Other real estate owned |
|
178 |
|
|
178 |
|
|
178 |
|
|
- |
|
|
- |
|
|
Total nonperforming assets |
$ |
36,874 |
|
$ |
35,574 |
|
$ |
22,132 |
|
$ |
21,781 |
|
$ |
20,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans (% total loans) |
|
0.82 |
% |
|
0.78 |
% |
|
0.49 |
% |
|
0.47 |
% |
|
0.43 |
% |
|
Nonperforming assets (% total assets) |
|
0.55 |
% |
|
0.53 |
% |
|
0.33 |
% |
|
0.33 |
% |
|
0.31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for loan losses
(ALLL): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLL to total loans |
|
0.82 |
% |
|
0.81 |
% |
|
0.68 |
% |
|
0.70 |
% |
|
0.70 |
% |
|
ALLL to nonperforming loans |
|
101.72 |
% |
|
105.07 |
% |
|
140.92 |
% |
|
148.90 |
% |
|
164.15 |
% |
|
Net charge offs |
$ |
38 |
|
$ |
16 |
|
$ |
30 |
|
$ |
60 |
|
$ |
495 |
|
|
Average net charge off rate (annualized) |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.01 |
% |
|
0.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
At |
|
|
Supplemental Balance Sheet Highlights |
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
(Dollars in Thousands, Unaudited) |
2020 |
|
2020 |
|
2019 |
|
2019 |
|
2019 |
|
|
Funding by type: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
$ |
419,138 |
|
$ |
321,824 |
|
$ |
312,098 |
|
$ |
322,846 |
|
$ |
309,063 |
|
|
Interest-bearing demand |
|
1,264,151 |
|
|
1,134,420 |
|
|
1,060,434 |
|
|
931,188 |
|
|
843,432 |
|
|
Savings |
|
906,597 |
|
|
848,950 |
|
|
829,321 |
|
|
800,514 |
|
|
790,658 |
|
|
Certificates of deposit |
|
1,840,396 |
|
|
1,948,060 |
|
|
1,986,969 |
|
|
2,142,702 |
|
|
2,204,457 |
|
|
Interest-bearing deposits |
|
4,011,144 |
|
|
3,931,430 |
|
|
3,876,724 |
|
|
3,874,404 |
|
|
3,838,547 |
|
|
Total deposits |
|
4,430,282 |
|
|
4,253,254 |
|
|
4,188,822 |
|
|
4,197,250 |
|
|
4,147,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Borrowings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home Loan Bank advances |
|
1,167,429 |
|
|
1,177,319 |
|
|
1,253,958 |
|
|
1,273,618 |
|
|
1,283,211 |
|
|
Overnight borrowings |
|
- |
|
|
200,000 |
|
|
15,000 |
|
|
- |
|
|
30,000 |
|
|
Depositor sweep accounts |
|
5,736 |
|
|
6,706 |
|
|
6,091 |
|
|
7,500 |
|
|
8,771 |
|
|
Total borrowings |
|
1,173,165 |
|
|
1,384,025 |
|
|
1,275,049 |
|
|
1,281,118 |
|
|
1,321,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total funding |
$ |
5,603,447 |
|
$ |
5,637,279 |
|
$ |
5,463,871 |
|
$ |
5,478,368 |
|
$ |
5,469,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans as a % of deposits |
|
101.2 |
% |
|
106.7 |
% |
|
106.7 |
% |
|
109.2 |
% |
|
112.3 |
% |
|
Deposits as a % of total funding |
|
79.1 |
% |
|
75.4 |
% |
|
76.7 |
% |
|
76.6 |
% |
|
75.8 |
% |
|
Borrowings as a % of total funding |
|
20.9 |
% |
|
24.6 |
% |
|
23.3 |
% |
|
23.4 |
% |
|
24.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Funding by
source: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Retail funding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
$ |
419,138 |
|
$ |
321,824 |
|
$ |
312,098 |
|
$ |
322,846 |
|
$ |
309,063 |
|
|
Interest-bearing demand |
|
1,264,151 |
|
|
1,134,420 |
|
|
1,060,434 |
|
|
931,188 |
|
|
843,432 |
|
|
Savings |
|
906,597 |
|
|
848,950 |
|
|
829,321 |
|
|
800,514 |
|
|
790,658 |
|
|
Certificates of deposit |
|
1,773,257 |
|
|
1,833,081 |
|
|
1,876,280 |
|
|
1,916,132 |
|
|
1,902,542 |
|
|
Total retail deposits |
|
4,363,143 |
|
|
4,138,275 |
|
|
4,078,133 |
|
|
3,970,680 |
|
|
3,845,695 |
|
|
Depositor sweep accounts |
|
5,736 |
|
|
6,706 |
|
|
6,091 |
|
|
7,500 |
|
|
8,771 |
|
|
Total retail funding |
|
4,368,879 |
|
|
4,144,981 |
|
|
4,084,224 |
|
|
3,978,180 |
|
|
3,854,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Wholesale funding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of deposit (listing service) |
$ |
35,760 |
|
$ |
33,608 |
|
$ |
42,119 |
|
$ |
57,534 |
|
$ |
66,110 |
|
|
Certificates of deposit (brokered) |
|
31,379 |
|
|
81,371 |
|
|
68,570 |
|
|
169,036 |
|
|
235,805 |
|
|
Total wholesale deposits |
|
67,139 |
|
|
114,979 |
|
|
110,689 |
|
|
226,570 |
|
|
301,915 |
|
|
FHLB advances |
|
1,167,429 |
|
|
1,177,319 |
|
|
1,253,958 |
|
|
1,273,618 |
|
|
1,283,211 |
|
|
Overnight borrowings |
|
- |
|
|
200,000 |
|
|
15,000 |
|
|
- |
|
|
30,000 |
|
|
Total wholesale funding |
|
1,234,568 |
|
|
1,492,298 |
|
|
1,379,647 |
|
|
1,500,188 |
|
|
1,615,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total funding |
$ |
5,603,447 |
|
$ |
5,637,279 |
|
$ |
5,463,871 |
|
$ |
5,478,368 |
|
$ |
5,469,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail funding as a % of total funding |
|
78.0 |
% |
|
73.5 |
% |
|
74.7 |
% |
|
72.6 |
% |
|
70.5 |
% |
|
Wholesale funding as a % of total funding |
|
22.0 |
% |
|
26.5 |
% |
|
25.3 |
% |
|
27.4 |
% |
|
29.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Summary Income Statement |
For the three months ended |
|
|
(Dollars and Shares in Thousands, |
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
Except Per Share Data, Unaudited) |
2020 |
|
2020 |
|
2019 |
|
2019 |
|
2019 |
|
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
46,192 |
|
$ |
46,603 |
|
$ |
45,608 |
|
$ |
48,600 |
|
$ |
47,818 |
|
|
Taxable investment securities |
|
9,769 |
|
|
10,526 |
|
|
9,698 |
|
|
9,328 |
|
|
9,772 |
|
|
Tax-exempt investment securities |
|
487 |
|
|
547 |
|
|
666 |
|
|
693 |
|
|
700 |
|
|
Other interest-earning assets |
|
903 |
|
|
1,100 |
|
|
1,210 |
|
|
1,278 |
|
|
1,158 |
|
|
Total interest income |
|
57,351 |
|
|
58,776 |
|
|
57,182 |
|
|
59,899 |
|
|
59,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
12,439 |
|
|
14,768 |
|
|
15,590 |
|
|
16,055 |
|
|
15,131 |
|
|
Borrowings |
|
4,462 |
|
|
6,398 |
|
|
6,985 |
|
|
7,157 |
|
|
7,171 |
|
|
Total interest expense |
|
16,901 |
|
|
21,166 |
|
|
22,575 |
|
|
23,212 |
|
|
22,302 |
|
|
Net interest income |
|
40,450 |
|
|
37,610 |
|
|
34,607 |
|
|
36,687 |
|
|
37,146 |
|
| Provision for (reversal of)
loan losses |
|
174 |
|
|
6,270 |
|
|
(1,465 |
) |
|
(782 |
) |
|
664 |
|
|
Net interest income after provision for (reversal
of) loan losses |
|
40,276 |
|
|
31,340 |
|
|
36,072 |
|
|
37,469 |
|
|
36,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees and service charges |
|
1,696 |
|
|
1,338 |
|
|
2,145 |
|
|
1,468 |
|
|
1,340 |
|
|
Gain (loss) on sale and call of securities |
|
19 |
|
|
2,234 |
|
|
11 |
|
|
(14 |
) |
|
(141 |
) |
|
Gain on sale of loans |
|
1,348 |
|
|
565 |
|
|
668 |
|
|
605 |
|
|
196 |
|
|
(Loss) gain on sale and write down of other real
estate owned |
|
- |
|
|
- |
|
|
(28 |
) |
|
- |
|
|
9 |
|
|
Income from bank owned life insurance |
|
1,537 |
|
|
1,532 |
|
|
1,576 |
|
|
1,580 |
|
|
1,586 |
|
|
Electronic banking fees and charges |
|
325 |
|
|
309 |
|
|
293 |
|
|
318 |
|
|
270 |
|
|
Miscellaneous |
|
77 |
|
|
223 |
|
|
(111 |
) |
|
5 |
|
|
128 |
|
|
Total non-interest income |
|
5,002 |
|
|
6,201 |
|
|
4,554 |
|
|
3,962 |
|
|
3,388 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
15,527 |
|
|
15,537 |
|
|
15,174 |
|
|
15,777 |
|
|
16,338 |
|
|
Net occupancy expense of premises |
|
2,688 |
|
|
2,685 |
|
|
3,082 |
|
|
2,969 |
|
|
2,744 |
|
|
Equipment and systems |
|
2,948 |
|
|
2,672 |
|
|
3,046 |
|
|
3,089 |
|
|
2,917 |
|
|
Advertising and marketing |
|
751 |
|
|
612 |
|
|
890 |
|
|
535 |
|
|
948 |
|
|
Federal deposit insurance premium |
|
286 |
|
|
- |
|
|
- |
|
|
- |
|
|
438 |
|
|
Directors' compensation |
|
769 |
|
|
771 |
|
|
769 |
|
|
770 |
|
|
770 |
|
|
Merger-related expenses |
|
447 |
|
|
285 |
|
|
219 |
|
|
- |
|
|
- |
|
|
Debt extinguishment expenses |
|
- |
|
|
2,156 |
|
|
- |
|
|
- |
|
|
- |
|
|
Miscellaneous |
|
3,475 |
|
|
3,344 |
|
|
3,247 |
|
|
3,104 |
|
|
4,590 |
|
|
Total non-interest expense |
|
26,891 |
|
|
28,062 |
|
|
26,427 |
|
|
26,244 |
|
|
28,745 |
|
|
Income before income taxes |
|
18,387 |
|
|
9,479 |
|
|
14,199 |
|
|
15,187 |
|
|
11,125 |
|
|
Income taxes |
|
4,698 |
|
|
225 |
|
|
3,547 |
|
|
3,817 |
|
|
2,314 |
|
|
Net income |
$ |
13,689 |
|
$ |
9,254 |
|
$ |
10,652 |
|
$ |
11,370 |
|
$ |
8,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per common
share (EPS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.17 |
|
$ |
0.11 |
|
$ |
0.13 |
|
$ |
0.13 |
|
$ |
0.10 |
|
|
Diluted |
$ |
0.17 |
|
$ |
0.11 |
|
$ |
0.13 |
|
$ |
0.13 |
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends declared
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share |
$ |
0.08 |
|
$ |
0.08 |
|
$ |
0.07 |
|
$ |
0.06 |
|
$ |
0.06 |
|
|
Cash dividends declared |
$ |
6,449 |
|
$ |
6,479 |
|
$ |
5,760 |
|
$ |
5,045 |
|
$ |
5,204 |
|
|
Dividend payout ratio |
|
47.1 |
% |
|
70.0 |
% |
|
54.1 |
% |
|
44.4 |
% |
|
59.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average
number of common shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
80,678 |
|
|
81,339 |
|
|
82,831 |
|
|
84,756 |
|
|
87,090 |
|
|
Diluted |
|
80,680 |
|
|
81,358 |
|
|
82,876 |
|
|
84,793 |
|
|
87,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
For the three months ended |
|
|
Average Balance Sheet Data |
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
(Dollars in Thousands, Unaudited) |
2020 |
|
2020 |
|
2019 |
|
2019 |
|
2019 |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable, including loans held for sale |
$ |
4,567,229 |
|
$ |
4,503,996 |
|
$ |
4,547,126 |
|
$ |
4,656,192 |
|
$ |
4,648,362 |
|
|
Taxable investment securities |
|
1,369,014 |
|
|
1,406,973 |
|
|
1,244,475 |
|
|
1,147,698 |
|
|
1,184,401 |
|
|
Tax-exempt investment securities |
|
89,263 |
|
|
101,771 |
|
|
125,187 |
|
|
129,339 |
|
|
132,110 |
|
|
Other interest-earning assets |
|
141,964 |
|
|
104,241 |
|
|
117,811 |
|
|
125,114 |
|
|
98,374 |
|
|
Total interest-earning assets |
|
6,167,470 |
|
|
6,116,981 |
|
|
6,034,599 |
|
|
6,058,343 |
|
|
6,063,247 |
|
| Non-interest-earning
assets |
|
605,876 |
|
|
598,335 |
|
|
590,746 |
|
|
585,826 |
|
|
572,218 |
|
|
Total assets |
$ |
6,773,346 |
|
$ |
6,715,316 |
|
$ |
6,625,345 |
|
$ |
6,644,169 |
|
$ |
6,635,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
$ |
1,189,044 |
|
$ |
1,112,080 |
|
$ |
982,163 |
|
$ |
883,843 |
|
$ |
815,624 |
|
|
Savings |
|
876,580 |
|
|
838,501 |
|
|
813,626 |
|
|
799,181 |
|
|
780,558 |
|
|
Certificates of deposit |
|
1,879,039 |
|
|
2,004,785 |
|
|
2,063,066 |
|
|
2,179,333 |
|
|
2,229,723 |
|
|
Total interest-bearing deposits |
|
3,944,663 |
|
|
3,955,366 |
|
|
3,858,855 |
|
|
3,862,357 |
|
|
3,825,905 |
|
|
Borrowings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home Loan Bank advances |
|
1,202,522 |
|
|
1,208,627 |
|
|
1,255,597 |
|
|
1,277,145 |
|
|
1,284,427 |
|
|
Other borrowings |
|
96,770 |
|
|
87,072 |
|
|
34,733 |
|
|
10,012 |
|
|
29,439 |
|
|
Total borrowings |
|
1,299,292 |
|
|
1,295,699 |
|
|
1,290,330 |
|
|
1,287,157 |
|
|
1,313,866 |
|
|
Total interest-bearing liabilities |
|
5,243,955 |
|
|
5,251,065 |
|
|
5,149,185 |
|
|
5,149,514 |
|
|
5,139,771 |
|
| Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
380,067 |
|
|
317,530 |
|
|
320,161 |
|
|
320,641 |
|
|
311,648 |
|
|
Other non-interest-bearing liabilities |
|
72,007 |
|
|
55,456 |
|
|
53,479 |
|
|
60,078 |
|
|
39,294 |
|
|
Total non-interest-bearing liabilities |
|
452,074 |
|
|
372,986 |
|
|
373,640 |
|
|
380,719 |
|
|
350,942 |
|
|
Total liabilities |
|
5,696,029 |
|
|
5,624,051 |
|
|
5,522,825 |
|
|
5,530,233 |
|
|
5,490,713 |
|
| Stockholders' equity |
|
1,077,317 |
|
|
1,091,265 |
|
|
1,102,520 |
|
|
1,113,936 |
|
|
1,144,752 |
|
|
Total liabilities and stockholders' equity |
$ |
6,773,346 |
|
$ |
6,715,316 |
|
$ |
6,625,345 |
|
$ |
6,644,169 |
|
$ |
6,635,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest-earning assets to average interest-bearing
liabilities |
|
117.61 |
% |
|
116.49 |
% |
|
117.20 |
% |
|
117.65 |
% |
|
117.97 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
For the three months ended |
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
Performance Ratio Highlights |
2020 |
|
2020 |
|
2019 |
|
2019 |
|
2019 |
|
|
Average yield on interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable, including loans held for sale |
|
4.05 |
% |
|
4.14 |
% |
|
4.01 |
% |
|
4.18 |
% |
|
4.11 |
% |
|
Taxable investment securities |
|
2.85 |
% |
|
2.99 |
% |
|
3.12 |
% |
|
3.25 |
% |
|
3.30 |
% |
|
Tax-exempt investment securities (1) |
|
2.18 |
% |
|
2.15 |
% |
|
2.13 |
% |
|
2.14 |
% |
|
2.12 |
% |
|
Other interest-earning assets |
|
2.54 |
% |
|
4.22 |
% |
|
4.11 |
% |
|
4.09 |
% |
|
4.71 |
% |
|
Total interest-earning assets |
|
3.72 |
% |
|
3.84 |
% |
|
3.79 |
% |
|
3.95 |
% |
|
3.92 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average cost of
interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
|
0.72 |
% |
|
1.17 |
% |
|
1.29 |
% |
|
1.30 |
% |
|
1.19 |
% |
|
Savings |
|
0.81 |
% |
|
0.85 |
% |
|
0.81 |
% |
|
0.77 |
% |
|
0.68 |
% |
|
Certificates of deposit |
|
1.82 |
% |
|
1.94 |
% |
|
2.09 |
% |
|
2.14 |
% |
|
2.04 |
% |
|
Total interest-bearing deposits |
|
1.26 |
% |
|
1.49 |
% |
|
1.62 |
% |
|
1.66 |
% |
|
1.58 |
% |
|
Borrowings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home Loan Bank advances |
|
1.47 |
% |
|
2.03 |
% |
|
2.19 |
% |
|
2.24 |
% |
|
2.21 |
% |
|
Other borrowings |
|
0.13 |
% |
|
1.17 |
% |
|
1.36 |
% |
|
0.66 |
% |
|
0.99 |
% |
|
Total borrowings |
|
1.37 |
% |
|
1.98 |
% |
|
2.17 |
% |
|
2.22 |
% |
|
2.18 |
% |
|
Total interest-bearing liabilities |
|
1.29 |
% |
|
1.61 |
% |
|
1.75 |
% |
|
1.80 |
% |
|
1.74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread (2) |
|
2.43 |
% |
|
2.23 |
% |
|
2.04 |
% |
|
2.15 |
% |
|
2.18 |
% |
|
Net interest margin (3) |
|
2.62 |
% |
|
2.46 |
% |
|
2.29 |
% |
|
2.42 |
% |
|
2.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income to average assets (annualized) |
|
0.30 |
% |
|
0.37 |
% |
|
0.27 |
% |
|
0.24 |
% |
|
0.20 |
% |
|
Non-interest expense to average assets (annualized) |
|
1.59 |
% |
|
1.67 |
% |
|
1.60 |
% |
|
1.58 |
% |
|
1.73 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (4) |
|
59.16 |
% |
|
64.05 |
% |
|
67.48 |
% |
|
64.56 |
% |
|
70.91 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (annualized) |
|
0.81 |
% |
|
0.55 |
% |
|
0.64 |
% |
|
0.68 |
% |
|
0.53 |
% |
|
Return on average equity (annualized) |
|
5.08 |
% |
|
3.39 |
% |
|
3.86 |
% |
|
4.08 |
% |
|
3.08 |
% |
|
Return on average tangible equity (annualized) (5) |
|
6.35 |
% |
|
4.23 |
% |
|
4.80 |
% |
|
5.06 |
% |
|
3.80 |
% |
___________________(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.
This document contains certain non-GAAP
financial measures in addition to results presented in accordance
with Generally Accepted Accounting Principles (“GAAP”). 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.
A reconciliation of non-GAAP financial measures to GAAP measures is
included below. 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.
| |
|
|
|
Reconciliation of GAAP to Non-GAAP |
For the three months ended |
|
|
(Dollars in Thousands, |
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
Except Per Share Data, Unaudited) |
2020 |
|
2020 |
|
2019 |
|
2019 |
|
2019 |
|
|
Adjusted net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
$ |
13,689 |
|
$ |
9,254 |
|
$ |
10,652 |
|
$ |
11,370 |
|
$ |
8,811 |
|
|
Non-routine transactions - net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related expenses |
|
426 |
|
|
269 |
|
|
183 |
|
|
- |
|
|
- |
|
|
Branch consolidation expenses |
|
- |
|
|
- |
|
|
274 |
|
|
475 |
|
|
1,216 |
|
|
Net effect of wholesale restructuring transaction |
|
- |
|
|
(55 |
) |
|
- |
|
|
- |
|
|
- |
|
|
Reversal of income tax valuation allowance |
|
- |
|
|
(591 |
) |
|
- |
|
|
- |
|
|
- |
|
|
Tax benefit arising from adoption of the CARES Act
provisions |
|
- |
|
|
(1,624 |
) |
|
- |
|
|
- |
|
|
- |
|
|
Net income (non-GAAP) |
$ |
14,115 |
|
$ |
7,253 |
|
$ |
11,109 |
|
$ |
11,845 |
|
$ |
10,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Calculation of pre-tax, pre-provision
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
$ |
13,689 |
|
$ |
9,254 |
|
$ |
10,652 |
|
$ |
11,370 |
|
$ |
8,811 |
|
|
Adjustments to net income (GAAP): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
4,698 |
|
|
225 |
|
|
3,547 |
|
|
3,817 |
|
|
2,314 |
|
|
Provision for (reversal of) loan losses |
|
174 |
|
|
6,270 |
|
|
(1,465 |
) |
|
(782 |
) |
|
664 |
|
|
Pre-tax, pre-provision income (non-GAAP) |
$ |
18,561 |
|
$ |
15,749 |
|
$ |
12,734 |
|
$ |
14,405 |
|
$ |
11,789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares - basic |
|
80,678 |
|
|
81,339 |
|
|
82,831 |
|
|
84,756 |
|
|
87,090 |
|
|
Weighted average common shares - diluted |
|
80,680 |
|
|
81,358 |
|
|
82,876 |
|
|
84,793 |
|
|
87,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic (GAAP) |
$ |
0.17 |
|
$ |
0.11 |
|
$ |
0.13 |
|
$ |
0.13 |
|
$ |
0.10 |
|
|
Earnings per share - diluted (GAAP) |
$ |
0.17 |
|
$ |
0.11 |
|
$ |
0.13 |
|
$ |
0.13 |
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per share - basic (non-GAAP) |
$ |
0.17 |
|
$ |
0.09 |
|
$ |
0.13 |
|
$ |
0.14 |
|
$ |
0.11 |
|
|
Adjusted earnings per share - diluted (non-GAAP) |
$ |
0.17 |
|
$ |
0.09 |
|
$ |
0.13 |
|
$ |
0.14 |
|
$ |
0.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted return on average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average assets |
$ |
6,773,346 |
|
$ |
6,715,316 |
|
$ |
6,625,345 |
|
$ |
6,644,169 |
|
$ |
6,635,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (GAAP) |
|
0.81 |
% |
|
0.55 |
% |
|
0.64 |
% |
|
0.68 |
% |
|
0.53 |
% |
|
Adjusted return on average assets (non-GAAP) |
|
0.83 |
% |
|
0.43 |
% |
|
0.67 |
% |
|
0.71 |
% |
|
0.60 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted return on average equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average equity |
$ |
1,077,317 |
|
$ |
1,091,265 |
|
$ |
1,102,520 |
|
$ |
1,113,936 |
|
$ |
1,144,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average equity (GAAP) |
|
5.08 |
% |
|
3.39 |
% |
|
3.86 |
% |
|
4.08 |
% |
|
3.08 |
% |
|
Adjusted return on average equity (non-GAAP) |
|
5.24 |
% |
|
2.66 |
% |
|
4.03 |
% |
|
4.25 |
% |
|
3.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted return on average tangible
equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average equity |
$ |
1,077,317 |
|
$ |
1,091,265 |
|
$ |
1,102,520 |
|
$ |
1,113,936 |
|
$ |
1,144,752 |
|
|
Less: average goodwill |
|
(210,895 |
) |
|
(210,895 |
) |
|
(210,895 |
) |
|
(210,895 |
) |
|
(210,895 |
) |
|
Less: average other intangible assets |
|
(4,124 |
) |
|
(4,408 |
) |
|
(4,711 |
) |
|
(5,006 |
) |
|
(5,313 |
) |
|
|
$ |
862,298 |
|
$ |
875,962 |
|
$ |
886,914 |
|
$ |
898,035 |
|
$ |
928,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible equity (non-GAAP) |
|
6.35 |
% |
|
4.23 |
% |
|
4.80 |
% |
|
5.06 |
% |
|
3.80 |
% |
|
Adjusted return on average tangible equity (non-GAAP) |
|
6.55 |
% |
|
3.31 |
% |
|
5.01 |
% |
|
5.28 |
% |
|
4.32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Reconciliation of GAAP to Non-GAAP |
For the year ended |
|
|
(Dollars in Thousands, |
June 30, |
|
June 30, |
|
|
Except Per Share Data, Unaudited) |
2020 |
|
2019 |
|
|
Adjusted net income: |
|
|
|
|
|
|
|
Net income (GAAP) |
$ |
44,965 |
|
$ |
42,142 |
|
|
Non-routine transactions - net of tax: |
|
|
|
|
- |
|
|
Merger-related expenses |
|
878 |
|
|
- |
|
|
Branch consolidation expenses |
|
749 |
|
|
1,216 |
|
|
Net effect of wholesale restructuring transaction |
|
(55 |
) |
|
- |
|
|
Reversal of income tax valuation allowance |
|
(591 |
) |
|
- |
|
|
Tax benefit arising from adoption of the CARES Act
provisions |
|
(1,624 |
) |
|
- |
|
|
Net income (non-GAAP) |
$ |
44,322 |
|
$ |
43,358 |
|
|
|
|
|
|
|
|
|
| Calculation of pre-tax, pre-provision
income: |
|
|
|
|
|
|
|
Net income (GAAP) |
$ |
44,965 |
|
$ |
42,142 |
|
|
Adjustments to net income (GAAP): |
|
|
|
|
|
|
|
Provision for income taxes |
|
12,287 |
|
|
13,927 |
|
|
Provision for (reversal of) loan losses |
|
4,197 |
|
|
3,556 |
|
|
Pre-tax, pre-provision income |
$ |
61,449 |
|
$ |
59,625 |
|
|
|
|
|
|
|
|
|
| Adjusted earnings per share: |
|
|
|
|
|
|
|
Weighted average common shares - basic |
|
82,409 |
|
|
91,054 |
|
|
Weighted average common shares - diluted |
|
82,430 |
|
|
91,100 |
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic (GAAP) |
$ |
0.55 |
|
$ |
0.46 |
|
|
Earnings per share - diluted (GAAP) |
$ |
0.55 |
|
$ |
0.46 |
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per share - basic (non-GAAP) |
$ |
0.54 |
|
$ |
0.47 |
|
|
Adjusted earnings per share - diluted (non-GAAP) |
$ |
0.54 |
|
$ |
0.47 |
|
|
|
|
|
|
|
|
|
| Adjusted return on average assets: |
|
|
|
|
|
|
|
Total average assets |
$ |
6,689,245 |
|
$ |
6,659,693 |
|
|
|
|
|
|
|
|
|
|
Return on average assets (GAAP) |
|
0.67 |
% |
|
0.63 |
% |
|
Adjusted return on average assets (non-GAAP) |
|
0.66 |
% |
|
0.65 |
% |
|
|
|
|
|
|
|
|
| Adjusted return on average equity: |
|
|
|
|
|
|
|
Total average equity |
$ |
1,096,325 |
|
$ |
1,196,622 |
|
|
|
|
|
|
|
|
|
|
Return on average equity (GAAP) |
|
4.10 |
% |
|
3.52 |
% |
|
Adjusted return on average equity (non-GAAP) |
|
4.04 |
% |
|
3.62 |
% |
|
|
|
|
|
|
|
|
| Adjusted return on average tangible
equity: |
|
|
|
|
|
|
|
Total average equity |
$ |
1,096,325 |
|
$ |
1,196,622 |
|
|
Less: average goodwill |
|
(210,895 |
) |
|
(210,895 |
) |
|
Less: average other intangible assets |
|
(4,564 |
) |
|
(5,758 |
) |
|
|
$ |
880,866 |
|
$ |
979,969 |
|
|
|
|
|
|
|
|
|
|
Return on average tangible equity (non-GAAP) |
|
5.10 |
% |
|
4.30 |
% |
|
Adjusted return on average tangible equity (non-GAAP) |
|
5.03 |
% |
|
4.42 |
% |
|
|
|
|
|
|
|
|
For further information contact:Craig L. Montanaro, President
and Chief Executive Officer, orKeith Suchodolski, Executive Vice
President and Chief Financial OfficerKearny Financial Corp.(973)
244-4500
MSB Financial (NASDAQ:MSBF)
과거 데이터 주식 차트
부터 12월(12) 2024 으로 1월(1) 2025
MSB Financial (NASDAQ:MSBF)
과거 데이터 주식 차트
부터 1월(1) 2024 으로 1월(1) 2025
