Attached files
| file | filename |
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| 8-K - FORM 8-K - Kearny Financial Corp. | d329372d8k.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
January 30, 2017
For further information contact:
Craig L. Montanaro, President and Chief Executive Officer, or
Eric B. Heyer, Executive Vice President and Chief Financial Officer
Kearny Financial Corp.
(973) 244-4500
KEARNY FINANCIAL CORP.
REPORTS SECOND QUARTER 2017 OPERATING RESULTS
Fairfield, New Jersey, January 30, 2017 – Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), today reported net income for the quarter ended December 31, 2016 of $5.5 million, or $0.06 per basic and diluted share. The results represent an increase in net income of $797,000, or 17.0%, compared to net income of $4.7 million, or $0.05 per basic and diluted share, for the quarter ended September 30, 2016.
Overview
The Company continued to execute strategies during the second quarter of fiscal 2017 that were intended to grow and diversify its balance sheet while increasing earnings and prudently managing capital to promote long-term growth in shareholder value. These strategies resulted in several incremental balance sheet growth and diversification achievements that are included among the following noteworthy highlights for the quarter:
| • | The Company’s aggregate loan portfolio, excluding loans held for sale and the allowance for loan losses, increased by $128.3 million, or 4.5%, to $2.97 billion, or 64.9% of total assets, at December 31, 2016 from $2.85 billion, or 62.9% of total assets, at September 30, 2016. This growth largely reflected the Company’s continued strategic focus on commercial loans, which increased by $156.5 million or 7.3% during the period. |
| • | Nonperforming loans decreased to $21.6 million, or 0.72% of total loans, at December 31, 2016 from $21.8 million, or 0.77% of total loans, at September 30, 2016. |
| • | The allowance for loan losses increased to $26.1 million at December 31, 2016 from $25.0 million at September 30, 2016, resulting in a “total loan coverage ratio”, representing the balance of the allowance for loan losses as a percentage of total loans, that was unchanged at 0.88% between comparative periods. |
| • | The “nonperforming loan coverage ratio”, representing the balance of the allowance for loan losses as a percentage of nonperforming loans, increased to 120.8% at December 31, 2016 from 114.5% at September 30, 2016. |
| • | The Company’s securities portfolio decreased by $38.4 million, or 3.1%, to $1.19 billion, or 25.9% of total assets, at December 31, 2016 from $1.23 billion, or 27.1% of total assets, at September 30, 2016. The decrease partly reflected the reinvestment of a significant portion of security cash flows into the loan portfolio while also reflecting decreases in the fair value of the available for sale portfolio due to an increase in interest rates during the period. |
The decrease in the securities portfolio was partially offset by the Company’s purchase of $15.0 million in subordinated debt issued by a profitable, well capitalized New Jersey-based community bank during the quarter ended December 31, 2016. The subordinated notes, which were acquired through a privately negotiated transaction, have a maturity date of December 22, 2026 and bear interest at the rate of 5.75% per annum, payable quarterly, for the first five years of the term, and then at a variable rate that will reset
quarterly to a level equal to the then current 3-month LIBOR plus 350 basis points over the remainder of the term. The notes are redeemable after five years subject to satisfaction of certain conditions. The indebtedness evidenced by the subordinated notes, including principal and interest, is unsecured and subordinate and junior to the issuer’s general and secured creditors and depositors.
| • | The balance of cash and cash equivalents decreased by $35.6 million to $37.0 million at December 31, 2016 from $72.6 million at September 30, 2016. The decrease in cash and equivalents largely reflected the reallocation of interest-earning cash and equivalents into comparatively higher-yielding assets in the loan portfolio. Such reallocation contributed significantly to a $133.5 million decrease in the average balance of other interest-earning assets to $71.1 million for the quarter ended December 31, 2016 from $204.6 million for the quarter ended September 30, 2016. Other interest-earning assets generally include the balance of interest-earning cash deposits held in other banks coupled with the balance of the Bank’s mandatory investment in the capital stock of the Federal Home Loan Bank of New York. |
| • | The Company’s total deposits increased by $12.1 million to $2.75 billion at December 31, 2016, from $2.73 billion at September 30, 2016. The growth in deposits during the second quarter included a $22.8 million increase in interest-bearing deposits that was partially offset by a decrease in non-interest-bearing deposits of $10.8 million. The decrease in non-interest-bearing deposits generally reflected day-to-day fluctuations in the balance of such deposits, as average balances increased by $2.0 million between comparative periods. |
| • | The Company’s total assets increased by $62.0 million to $4.59 billion at December 31, 2016 from $4.52 billion at September 30, 2016. |
| • | The Company’s stockholders’ equity decreased by $4.9 million to $1.11 billion at December 31, 2016 from $1.12 billion at September 30, 2016. The decrease partly reflected the return of capital to shareholders through share repurchases and cash dividends during the quarter ended December 31, 2016. These decreases were partially offset by net income earned for the period coupled with a net increase in accumulated other comprehensive income reflecting an increase in the fair value of the Company’s derivatives portfolio that more than offset the noted decrease in the fair value of its available for sale securities. |
At December 31, 2016, the Company’s total consolidated equity to assets ratio was 24.31% while the Bank’s total consolidated equity to assets ratio was 17.91%. The Company’s and Bank’s capital ratios at December 31, 2016 were well in excess of the levels required by federal banking regulators to be classified “well-capitalized” under regulatory guidelines.
As highlighted below, the noted balance sheet growth, reinvestment and reallocation achievements more than offset the adverse effects on net interest income that resulted from the downward pressure on net interest margin arising from low market interest rates and a generally flat yield curve:
| • | The Company’s net interest income increased $1.6 million, or 6.6%, to $25.6 million for the quarter ended December 31, 2016 from $24.0 million for the quarter ended September 30, 2016. |
| • | The Company’s net interest margin increased 13 basis points to 2.45% for the quarter ended December 31, 2016 from 2.32% for the quarter ended September 30, 2016 while the net interest rate spread increased by 16 basis points to 2.18% from 2.02% for those same comparative periods, respectively. |
The levels of the Company’s charge offs and provision for loan losses continued to reflect strong asset quality metrics:
| • | The Company recognized net charge offs totaling approximately $198,000 reflecting an annualized charge off rate of 0.03% on the average balance of total loans for the quarter ended December 31, 2016. By comparison, the Company’s net charge offs totaled approximately $354,000 for the quarter ended September 30, 2016, reflecting an annualized charge off rate of 0.05%. |
| • | The Company’s provision for loan losses totaled $1.3 million for the quarter ended December 31, 2016 compared to $1.1 million for the quarter ended September 30, 2016. The provisions for both periods largely reflected the overall growth in the performing portion of the loan portfolio which is collectively evaluated for impairment using historical and environmental loss factors. In addition to updating the historical loss factors for the trend of decreasing charge offs, environmental loss factors were also updated during the quarter ended December 31, 2016 to reflect the increased concentration and decreased seasoning in the Company’s multi-family loan sectors. |
The strategies executed by the Company during the second quarter of fiscal 2017 also served to strengthen and diversify its sources of non-interest income, as highlighted below:
| • | Gains on sale of residential mortgage loans increased to $297,000 for the quarter ended December 31, 2016 compared to $112,000 for the quarter ended September 30, 2016, which largely reflected an increase in the volume of loans originated and sold between comparative periods. In addition to bolstering non-interest income, the Company’s mortgage banking strategy is expected to help manage its exposure to interest rate risk. |
| • | Gains on sale of SBA loans originated totaled $162,000 for the quarter ended December 31, 2016 compared to $188,000 for the quarter ended September 30, 2016, reflecting a slight decrease in the balance of SBA loans originated and sold between comparative periods. |
The Company continues to evaluate and implement operating tactics and strategies designed to improve operating practices, policies and procedures while making more efficient and effective use of its supporting infrastructure, including human resources, facilities and information technology systems. As highlighted below, these tactics have enabled the Company to generally improve operating efficiency and defray a portion of the compensation costs associated with its recently implemented equity incentive plans:
| • | The Company’s operating efficiency ratio decreased (improved) to 66.7% for the quarter ended December 31, 2016 compared to 70.0% for the prior quarter ended September 30, 2016. |
| • | The Company reduced its number of full time equivalent (“FTE”) employees by eight during the latest quarter to 434 at December 31, 2016 from 442 at September 30, 2016 with the reduction in FTE count arising largely through attrition. |
| • | The Company’s ratio of non-interest expense to average assets totaled 1.71% for the quarter ended December 31, 2016 compared to 1.66% for the prior quarter ended September 30, 2016. The increase in the non-interest expense ratio largely reflected the recognition of additional costs associated with the granting of benefits to employees and directors under the terms of the Company’s 2016 Equity Incentive Plan approved by shareholders in October 2016. |
Specifically, the noted grants comprised 1,387,390 shares of restricted stock and 3,290,000 stock options issued on December 1, 2016 that will be earned and vested by plan participants over a five-year period with the vesting of certain restricted stock benefits further subject to “performance-based” metrics. The noted shares of restricted stock were issued from authorized shares during the quarter ended December 31, 2016 and are included in the number of the Company’s outstanding shares reported as of that date.
Based on the Company’s closing stock price on the date of grant and other assumptions supporting the Company’s valuation of the stock options granted under a Black-Scholes calculation methodology, the Company expects the annual pre-tax cost of the grants issued on December 1, 2016 to total approximately $6.2 million with an annual “after-tax” estimated cost of $4.3 million. Given the grant date of
December 1, 2016, the Company recognized 8.33% (one-twelfth) or approximately $517,000 in pre-tax expense associated the with noted grants resulting in an “after-tax” charge to net income of approximately $356,000 during the quarter ended December 31, 2016. Beginning with the next quarter ending March 31, 2017, the ongoing quarterly “pre-tax” and “after-tax” expense associated with the noted grants is expected to total $1.6 million and $1.1 million, respectively.
Collectively, the factors noted above contributed to an increase in recurring operating earnings for the quarter ended December 31, 2016 compared to the prior quarter ended September 30, 2016 as highlighted below:
| • | The Company’s return on average assets for the quarter ended December 31, 2016 totaled 0.48% compared to 0.41% for the prior quarter ended September 30, 2016. |
| • | The Company’s return on average equity for the quarter ended December 31, 2016 totaled 1.96% compared to 1.66% for the prior quarter ended September 30, 2016. |
The earnings for the quarter ended December 31, 2016 augmented the Company’s stockholders’ equity, which continues to reflect the excess capital resulting from the second-step conversion and stock offering that was completed in fiscal 2015. As such, the Company continued to execute two key capital management strategies during the second quarter of fiscal 2017 to further support shareholder value:
| • | The Company continued its payment of a regular quarterly cash dividend of $0.02 per share to stockholders during the quarter ended December 31, 2016. The Company is currently evaluating its dividend policies and practices, including the level of its regular quarterly cash dividend, in relation to its larger capital management and shareholder value objectives. |
| • | The Company continued to repurchase shares of its capital stock under the share repurchase program announced in May 2016 through which it authorized a repurchase of 9,352,809 shares, or 10%, of the Company’s outstanding shares. However, the volume of shares repurchased during the quarter ended December 31, 2016 decreased compared to prior quarters reflecting the significant increase in the Company’s share price during the period. |
For the quarter ended December 31, 2016, the Company repurchased a total of 1,286,533 of its shares at an average cost of $14.55 per share compared to 2,746,290 shares repurchased during the prior quarter ended September 30, 2016 at an average cost of $13.04 per share. Through December 31, 2016, the Company has repurchased 5,739,005 shares, or 61.4% of the number authorized under the current program, at a total cost of $76.8 million and at an average cost of $13.38 per share.
The exhibits that follow this narrative begin with the presentation of a tabular Linked-Quarter Comparative Financial Analysis that supports the discussion above by presenting the Company’s financial condition and operating results for the quarter ended, December 31, 2016 compared to those for the prior quarter ended September 30, 2016. This analysis is followed by a tabular Five-Quarter Financial Trend Analysis that presents similar financial information, together with other financial highlights and performance metrics, over a consecutive five quarter look-back period that is intended to reflect the Company’s financial performance and strategic achievements over this extended period of time.
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 Kearny Financial Corp. 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.
Linked-Quarter Comparative Financial Analysis
| Summary Balance Sheet |
At | Variance or Change |
Variance or Change Pct. |
|||||||||||||
| December 31, 2016 |
September 30, 2016 |
|||||||||||||||
| Assets |
||||||||||||||||
| Cash and cash equivalents |
$ | 37,032 | $ | 72,593 | $ | (35,561 | ) | (49.0 | ) | |||||||
| Securities available for sale |
671,281 | 689,151 | (17,870 | ) | (2.6 | ) | ||||||||||
| Securities held to maturity |
517,819 | 538,319 | (20,500 | ) | (3.8 | ) | ||||||||||
| Loans held-for-sale |
6,686 | 4,489 | 2,197 | 48.9 | ||||||||||||
| Loans receivable, including yield adjustments |
2,973,931 | 2,845,605 | 128,326 | 4.5 | ||||||||||||
| Less allowance for loan losses |
(26,060 | ) | (25,003 | ) | (1,057 | ) | 4.2 | |||||||||
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| Net loans receivable |
2,947,871 | 2,820,602 | 127,269 | 4.5 | ||||||||||||
| Premises and equipment |
38,341 | 38,125 | 216 | 0.6 | ||||||||||||
| Federal Home Loan Bank stock |
34,525 | 31,601 | 2,924 | 9.3 | ||||||||||||
| Accrued interest receivable |
11,809 | 11,666 | 143 | 1.2 | ||||||||||||
| Goodwill |
108,591 | 108,591 | — | — | ||||||||||||
| Bank owned life insurance |
178,656 | 177,334 | 1,322 | 0.7 | ||||||||||||
| Deferred income taxes, net |
16,098 | 22,914 | (6,816 | ) | (29.7 | ) | ||||||||||
| Other assets |
16,599 | 7,896 | 8,703 | 110.2 | ||||||||||||
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| Total assets |
$ | 4,585,308 | $ | 4,523,281 | $ | 62,027 | 1.4 | |||||||||
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| Liabilities |
||||||||||||||||
| Deposits |
$ | 2,746,017 | $ | 2,733,960 | $ | 12,057 | 0.4 | |||||||||
| Borrowings |
701,849 | 633,389 | 68,460 | 10.8 | ||||||||||||
| Advance payments by borrowers for taxes |
7,618 | 7,597 | 21 | 0.3 | ||||||||||||
| Other liabilities |
15,172 | 28,801 | (13,629 | ) | (47.3 | ) | ||||||||||
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| Total liabilities |
3,470,656 | 3,403,747 | 66,909 | 2.0 | ||||||||||||
| Stockholders’ Equity |
||||||||||||||||
| Common stock |
892 | 891 | 1 | 0.1 | ||||||||||||
| Paid-in capital |
795,773 | 813,648 | (17,875 | ) | (2.2 | ) | ||||||||||
| Retained earnings |
357,540 | 353,763 | 3,777 | 1.1 | ||||||||||||
| Unearned ESOP shares |
(35,508 | ) | (35,995 | ) | 487 | (1.4 | ) | |||||||||
| Accumulated other comprehensive loss, net |
(4,045 | ) | (12,773 | ) | 8,728 | (68.3 | ) | |||||||||
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| Total stockholders’ equity |
1,114,652 | 1,119,534 | (4,882 | ) | (0.4 | ) | ||||||||||
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| Total liabilities and stockholders’ equity |
$ | 4,585,308 | $ | 4,523,281 | 62,027 | 1.4 | ||||||||||
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| Consolidated capital ratios |
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| Equity to assets |
24.31 | % | 24.75 | % | -0.44 | % | ||||||||||
| Tangible equity to tangible assets |
22.47 | % | 22.89 | % | -0.42 | % | ||||||||||
| Share data |
||||||||||||||||
| Outstanding shares (period end) |
89,176 | 89,076 | 101 | 0.1 | ||||||||||||
| Equity per share |
$ | 12.50 | $ | 12.57 | $ | (0.07 | ) | (0.5 | ) | |||||||
| Tangible equity per share (1) |
$ | 11.28 | $ | 11.34 | $ | (0.06 | ) | (0.5 | ) | |||||||
| (1) | Tangible equity equals total stockholders’ equity reduced by goodwill and core deposit intangible assets |
| Summary Income Statement |
For the three months ended | Variance or Change |
Variance or Change Pct. |
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| December 31, 2016 |
September 30, 2016 |
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| Interest income |
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| Loans |
$ | 27,407 | $ | 25,697 | $ | 1,710 | 6.7 | |||||||||
| Mortgage-backed securities |
3,779 | 3,937 | (158 | ) | (4.0 | ) | ||||||||||
| Debt securities: |
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| Taxable |
2,146 | 2,040 | 106 | 5.2 | ||||||||||||
| Tax-exempt |
562 | 551 | 11 | 2.0 | ||||||||||||
| Other interest-earning assets |
421 | 581 | (160 | ) | (27.5 | ) | ||||||||||
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| Total Interest Income |
34,315 | 32,806 | 1,509 | 4.6 | ||||||||||||
| Interest expense |
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| Deposits |
5,410 | 5,361 | 49 | 0.9 | ||||||||||||
| Borrowings |
3,289 | 3,424 | (135 | ) | (3.9 | ) | ||||||||||
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| Total interest expense |
8,699 | 8,785 | (86 | ) | (1.0 | ) | ||||||||||
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| Net interest income |
25,616 | 24,021 | 1,595 | 6.6 | ||||||||||||
| Provision for loan losses |
1,255 | 1,129 | 126 | 11.2 | ||||||||||||
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| Net interest income after provision for loan losses |
24,361 | 22,892 | 1,469 | 6.4 | ||||||||||||
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| Non-interest income |
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| Fees and service charges |
1,289 | 663 | 626 | 94.4 | ||||||||||||
| Gain on sale and call of securities |
21 | — | 21 | — | ||||||||||||
| Gain on sale of loans |
459 | 300 | 159 | 53.0 | ||||||||||||
| Gain (loss) on sale of real estate owned |
12 | (15 | ) | 27 | (180.0 | ) | ||||||||||
| Income from bank owned life insurance |
1,321 | 1,319 | 2 | 0.2 | ||||||||||||
| Electronic banking fees and charges |
270 | 283 | (13 | ) | (4.6 | ) | ||||||||||
| Miscellaneous |
74 | 79 | (5 | ) | (6.3 | ) | ||||||||||
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| Total non-interest income |
3,446 | 2,629 | 817 | 31.1 | ||||||||||||
| Non-interest expense |
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| Salaries and employee benefits |
11,592 | 10,909 | 683 | 6.3 | ||||||||||||
| Net occupancy expense of premises |
1,976 | 1,941 | 35 | 1.8 | ||||||||||||
| Equipment and systems |
2,030 | 2,048 | (18 | ) | (0.9 | ) | ||||||||||
| Advertising and marketing |
387 | 549 | (162 | ) | (29.5 | ) | ||||||||||
| Federal deposit insurance premium |
339 | 305 | 34 | 11.1 | ||||||||||||
| Directors’ compensation |
379 | 225 | 154 | 68.4 | ||||||||||||
| Miscellaneous |
2,670 | 2,683 | (13 | ) | (0.5 | ) | ||||||||||
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| Total non-interest expense |
19,373 | 18,660 | 713 | 3.8 | ||||||||||||
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| Income before income taxes |
8,434 | 6,861 | 1,573 | 22.9 | ||||||||||||
| Income taxes |
2,970 | 2,194 | 776 | 35.4 | ||||||||||||
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| Net income |
$ | 5,464 | $ | 4,667 | 797 | 17.1 | ||||||||||
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| Net income per common share (EPS) |
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| Basic |
$ | 0.06 | $ | 0.05 | $ | 0.01 | ||||||||||
| Diluted |
$ | 0.06 | $ | 0.05 | $ | 0.01 | ||||||||||
| Dividends paid |
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| Cash dividends paid per common share |
$ | 0.02 | $ | 0.02 | $ | — | ||||||||||
| Cash dividends paid |
$ | 1,687 | $ | 1,710 | $ | (23 | ) | |||||||||
| Dividend payout ratio |
30.9 | % | 36.6 | % | -5.77 | % | ||||||||||
| Weighted average number of common shares outstanding |
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| Basic |
85,174 | 86,246 | (1,072 | ) | ||||||||||||
| Diluted |
85,258 | 86,304 | (1,046 | ) | ||||||||||||
| Average Balance Sheet Data |
For the three months ended | Variance or Change |
Variance or Change Pct. |
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| December 31, | September 30, | |||||||||||||||
| 2016 | 2016 | |||||||||||||||
| Assets |
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| Interest-earning assets: |
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| Loans receivable, including loans held for sale |
$ | 2,899,794 | $ | 2,697,096 | $ | 202,698 | 7.5 | |||||||||
| Mortgage-backed securities |
673,569 | 695,876 | (22,307 | ) | (3.2 | ) | ||||||||||
| Debt securities: |
— | |||||||||||||||
| Tax-exempt |
112,221 | 109,625 | 2,596 | 2.4 | ||||||||||||
| Taxable |
419,966 | 442,233 | (22,267 | ) | (5.0 | ) | ||||||||||
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| Total debt securities |
532,187 | 551,858 | (19,671 | ) | (3.6 | ) | ||||||||||
| Other interest-earning assets |
71,072 | 204,621 | (133,549 | ) | (65.3 | ) | ||||||||||
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| Total interest-earning assets |
4,176,622 | 4,149,451 | 27,171 | 0.7 | ||||||||||||
| Non-interest-earning assets |
351,458 | 359,514 | (8,056 | ) | (2.2 | ) | ||||||||||
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| Total assets |
$ | 4,528,080 | $ | 4,508,965 | $ | 19,115 | 0.4 | |||||||||
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| Liabilities and Stockholders’ Equity |
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| Interest-bearing liabilities: |
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| Deposits: |
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| Interest-bearing demand |
$ | 761,765 | $ | 748,516 | $ | 13,249 | 1.8 | |||||||||
| Savings and club |
518,225 | 515,615 | 2,610 | 0.5 | ||||||||||||
| Certificates of deposit |
1,224,592 | 1,215,081 | 9,511 | 0.8 | ||||||||||||
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| Total interest-bearing deposits |
2,504,582 | 2,479,212 | 25,370 | 1.0 | ||||||||||||
| Borrowings: |
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| Federal Home Loan Bank Advances |
594,238 | 577,305 | 16,933 | 2.9 | ||||||||||||
| Other borrowings |
35,273 | 33,530 | 1,743 | 5.2 | ||||||||||||
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| Total borrowings |
629,511 | 610,835 | 18,676 | 3.1 | ||||||||||||
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| Total interest-bearing liabilities |
3,134,093 | 3,090,047 | 44,046 | 1.4 | ||||||||||||
| Non-interest-bearing liabilities: |
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| Non-interest-bearing deposits |
245,928 | 243,964 | 1,964 | 0.8 | ||||||||||||
| Other non-interest-bearing liabilities |
31,781 | 47,092 | (15,311 | ) | (32.5 | ) | ||||||||||
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| Total non-interest-bearing liabilities |
277,709 | 291,056 | (13,347 | ) | (4.6 | ) | ||||||||||
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| Total liabilities |
3,411,802 | 3,381,103 | 30,699 | 0.9 | ||||||||||||
| Stockholders’ equity |
1,116,278 | 1,127,862 | (11,584 | ) | (1.0 | ) | ||||||||||
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| Total liabilities and stockholders’ equity |
$ | 4,528,080 | $ | 4,508,965 | 19,115 | 0.4 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Average interest-earning assets to average interest-bearing liabilities |
133.26 | % | 134.28 | % | -1.02 | % | -0.8 | |||||||||
| Performance Ratio Highlights |
For the three months ended | Variance or Change |
Variance or Change Pct. |
|||||||||||||
| December 31, | September 30, | |||||||||||||||
| 2016 | 2016 | |||||||||||||||
| Average yield on interest-earning assets: |
||||||||||||||||
| Loans receivable, including loans held for sale |
3.78 | % | 3.81 | % | -0.03 | % | ||||||||||
| Mortgage-backed securities |
2.24 | % | 2.26 | % | -0.02 | % | ||||||||||
| Debt securities: |
||||||||||||||||
| Tax-exempt |
2.00 | % | 2.01 | % | -0.01 | % | ||||||||||
| Taxable |
2.04 | % | 1.85 | % | 0.19 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total debt securities |
2.04 | % | 1.88 | % | 0.16 | % | ||||||||||
| Other interest-earning assets |
2.37 | % | 1.14 | % | 1.23 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total interest-earning assets |
3.29 | % | 3.16 | % | 0.13 | % | ||||||||||
| Average cost of interest-bearing liabilities: |
||||||||||||||||
| Deposits: |
||||||||||||||||
| Interest-bearing demand |
0.62 | % | 0.63 | % | -0.01 | % | ||||||||||
| Savings and club |
0.12 | % | 0.15 | % | -0.03 | % | ||||||||||
| Certificates of deposit |
1.33 | % | 1.31 | % | 0.02 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total interest-bearing deposits |
0.86 | % | 0.87 | % | -0.01 | % | ||||||||||
| Borrowings: |
||||||||||||||||
| Federal Home Loan Bank Advances |
2.20 | % | 2.35 | % | -0.15 | % | ||||||||||
| Other borrowings |
0.29 | % | 0.42 | % | -0.13 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total borrowings |
2.09 | % | 2.24 | % | -0.15 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total interest-bearing liabilities |
1.11 | % | 1.14 | % | -0.03 | % | ||||||||||
| Interest rate spread (1) |
2.18 | % | 2.02 | % | 0.16 | % | ||||||||||
| Net interest margin (2) |
2.45 | % | 2.32 | % | 0.13 | % | ||||||||||
| Non-interest income to average assets (annualized) |
0.30 | % | 0.23 | % | 0.07 | % | ||||||||||
| Non-interest expense to average assets (annualized) |
1.71 | % | 1.66 | % | 0.05 | % | ||||||||||
| Efficiency ratio (3) |
66.66 | % | 70.02 | % | -3.36 | % | ||||||||||
| Return on average assets (annualized) |
0.48 | % | 0.41 | % | 0.07 | % | ||||||||||
| Return on average equity (annualized) |
1.96 | % | 1.66 | % | 0.30 | % | ||||||||||
| (1) | Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities |
| (2) | Net interest income divided by average interest-earning assets |
| (3) | Non-interest expense divided by the sum of net interest income and non-interest income |
Five-Quarter Financial Trend Analysis
| Summary Balance Sheet |
At | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| 2016 | 2016 | 2016 | 2016 | 2015 | ||||||||||||||||
| Assets |
||||||||||||||||||||
| Cash and cash equivalents |
$ | 37,032 | $ | 72,593 | $ | 199,200 | $ | 114,956 | $ | 112,864 | ||||||||||
| Securities available for sale |
671,281 | 689,151 | 673,537 | 685,787 | 721,432 | |||||||||||||||
| Securities held to maturity |
517,819 | 538,319 | 577,286 | 592,430 | 598,391 | |||||||||||||||
| Loans held-for-sale |
6,686 | 4,489 | 3,316 | — | — | |||||||||||||||
| Loans receivable, including yield adjustments |
2,973,931 | 2,845,605 | 2,673,987 | 2,720,069 | 2,601,750 | |||||||||||||||
| Less allowance for loan losses |
(26,060 | ) | (25,003 | ) | (24,229 | ) | (23,010 | ) | (20,514 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net loans receivable |
2,947,871 | 2,820,602 | 2,649,758 | 2,697,059 | 2,581,236 | |||||||||||||||
| Premises and equipment |
38,341 | 38,125 | 38,385 | 38,598 | 39,156 | |||||||||||||||
| Federal Home Loan Bank stock |
34,525 | 31,601 | 30,612 | 29,670 | 29,671 | |||||||||||||||
| Accrued interest receivable |
11,809 | 11,666 | 11,212 | 11,626 | 10,929 | |||||||||||||||
| Goodwill |
108,591 | 108,591 | 108,591 | 108,591 | 108,591 | |||||||||||||||
| Bank owned life insurance |
178,656 | 177,334 | 176,016 | 174,642 | 173,251 | |||||||||||||||
| Deferred income taxes, net |
16,098 | 22,914 | 25,973 | 27,340 | 23,252 | |||||||||||||||
| Other assets |
16,599 | 7,896 | 6,173 | 5,310 | 6,273 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total assets |
$ | 4,585,308 | $ | 4,523,281 | $ | 4,500,059 | $ | 4,486,009 | $ | 4,405,046 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Liabilities |
||||||||||||||||||||
| Deposits |
$ | 2,746,017 | $ | 2,733,960 | $ | 2,694,833 | $ | 2,660,773 | $ | 2,583,185 | ||||||||||
| Borrowings |
701,849 | 633,389 | 614,423 | 618,320 | 620,409 | |||||||||||||||
| Advance payments by borrowers for taxes |
7,618 | 7,597 | 7,906 | 8,141 | 8,037 | |||||||||||||||
| Other liabilities |
15,172 | 28,801 | 35,268 | 34,029 | 26,939 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total liabilities |
3,470,656 | 3,403,747 | 3,352,430 | 3,321,263 | 3,238,570 | |||||||||||||||
| Stockholders’ Equity |
||||||||||||||||||||
| Common stock |
892 | 891 | 918 | 935 | 935 | |||||||||||||||
| Paid-in capital |
795,773 | 813,648 | 849,173 | 871,156 | 870,912 | |||||||||||||||
| Retained earnings |
357,540 | 353,763 | 350,806 | 347,717 | 345,343 | |||||||||||||||
| Unearned ESOP shares |
(35,508 | ) | (35,995 | ) | (36,481 | ) | (36,968 | ) | (37,454 | ) | ||||||||||
| Accumulated other comprehensive loss, net |
(4,045 | ) | (12,773 | ) | (16,787 | ) | (18,094 | ) | (13,260 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total stockholders’ equity |
1,114,652 | 1,119,534 | 1,147,629 | 1,164,746 | 1,166,476 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total liabilities and stockholders’ equity |
$ | 4,585,308 | $ | 4,523,281 | $ | 4,500,059 | $ | 4,486,009 | $ | 4,405,046 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Consolidated capital ratios |
||||||||||||||||||||
| Equity to assets |
24.31 | % | 24.75 | % | 25.50 | % | 25.96 | % | 26.48 | % | ||||||||||
| Tangible equity to tangible assets |
22.47 | % | 22.89 | % | 23.65 | % | 24.12 | % | 24.61 | % | ||||||||||
| Share data |
||||||||||||||||||||
| Outstanding shares (period end) |
89,176 | 89,076 | 91,822 | 93,528 | 93,528 | |||||||||||||||
| Equity per share |
$ | 12.50 | $ | 12.57 | $ | 12.50 | $ | 12.45 | $ | 12.47 | ||||||||||
| Tangible equity per share (1) |
$ | 11.28 | $ | 11.34 | $ | 11.31 | $ | 11.29 | $ | 11.31 | ||||||||||
| (1) | Tangible equity equals total stockholders’ equity reduced by goodwill and core deposit intangible assets |
| Supplemental Balance Sheet Highlights |
At | |||||||||||||||||||
| December 31, 2016 |
September 30, 2016 |
June 30, 2016 |
March 31, 2016 |
December 31, 2015 |
||||||||||||||||
| Cash and cash equivalents |
||||||||||||||||||||
| Cash and due from depository institutions |
$ | 17,541 | $ | 18,829 | $ | 21,328 | $ | 20,372 | $ | 21,440 | ||||||||||
| Interest-bearing deposits in other banks |
19,491 | 53,764 | 177,872 | 94,584 | 91,424 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total cash and cash equivalents |
$ | 37,032 | $ | 72,593 | $ | 199,200 | $ | 114,956 | $ | 112,864 | ||||||||||
| Securities available for sale |
||||||||||||||||||||
| Debt securities: |
||||||||||||||||||||
| U.S. agency securities |
$ | 5,809 | $ | 6,172 | $ | 6,440 | $ | 6,724 | $ | 6,837 | ||||||||||
| Municipal and state obligations |
27,090 | 28,259 | 28,398 | 28,066 | 27,683 | |||||||||||||||
| Asset-backed securities |
121,445 | 84,065 | 82,625 | 84,396 | 84,179 | |||||||||||||||
| Collateralized loan obligations |
98,447 | 128,047 | 127,374 | 124,941 | 127,288 | |||||||||||||||
| Corporate bonds |
138,564 | 137,976 | 137,404 | 136,678 | 159,657 | |||||||||||||||
| Trust preferred securities |
8,101 | 7,968 | 7,669 | 7,263 | 7,851 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Debt securities available for sale |
399,456 | 392,487 | 389,910 | 388,068 | 413,495 | |||||||||||||||
| Mortgage-backed securities: |
||||||||||||||||||||
| Collateralized mortgage obligations |
52,333 | 57,170 | 60,577 | 63,744 | 64,716 | |||||||||||||||
| Residential pass-through securities |
211,258 | 231,052 | 214,526 | 225,469 | 234,455 | |||||||||||||||
| Commercial pass-through securities |
8,234 | 8,442 | 8,524 | 8,506 | 8,766 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Mortgage-backed securities |
271,825 | 296,664 | 283,627 | 297,719 | 307,937 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total securities available for sale |
$ | 671,281 | $ | 689,151 | $ | 673,537 | $ | 685,787 | $ | 721,432 | ||||||||||
| Securities held to maturity |
||||||||||||||||||||
| Debt securities: |
||||||||||||||||||||
| U.S. agency securities |
$ | 34,999 | $ | 59,995 | $ | 84,992 | $ | 84,990 | $ | 84,989 | ||||||||||
| Municipal and state obligations |
87,682 | 82,087 | 82,179 | 82,154 | 82,337 | |||||||||||||||
| Subordinated debt |
15,000 | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Debt securities held to maturity |
137,681 | 142,082 | 167,171 | 167,144 | 167,326 | |||||||||||||||
| Mortgage-backed securities: |
||||||||||||||||||||
| Collateralized mortgage obligations |
20,543 | 21,699 | 23,081 | 24,561 | 25,821 | |||||||||||||||
| Residential pass-through securities |
200,402 | 211,930 | 223,632 | 234,595 | 238,283 | |||||||||||||||
| Commercial pass-through securities |
159,193 | 162,608 | 163,402 | 166,130 | 166,961 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Mortgage-backed securities |
380,138 | 396,237 | 410,115 | 425,286 | 431,065 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total securities held to maturity |
$ | 517,819 | $ | 538,319 | $ | 577,286 | $ | 592,430 | $ | 598,391 | ||||||||||
| Total securities |
$ | 1,189,100 | $ | 1,227,470 | $ | 1,250,823 | $ | 1,278,217 | $ | 1,319,823 | ||||||||||
| Supplemental Balance Sheet Highlights |
At | |||||||||||||||||||
| December 31, 2016 |
September 30, 2016 |
June 30, 2016 |
March 31, 2016 |
December 31, 2015 |
||||||||||||||||
| Loan portfolio composition: |
||||||||||||||||||||
| Residential first mortgage loans |
$ | 562,466 | $ | 584,156 | $ | 605,203 | $ | 620,867 | $ | 618,409 | ||||||||||
| Home equity loans and lines of credit |
83,305 | 85,799 | 89,566 | 90,610 | 91,486 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Residential mortgage loans |
645,771 | 669,955 | 694,769 | 711,477 | 709,895 | |||||||||||||||
| Multifamily mortgage loans |
1,295,207 | 1,142,908 | 1,040,293 | 1,044,180 | 972,020 | |||||||||||||||
| Nonresidential and mixed use mortgage loans |
932,616 | 916,769 | 820,673 | 837,758 | 799,909 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Commercial mortgage loans |
2,227,823 | 2,059,677 | 1,860,966 | 1,881,938 | 1,771,929 | |||||||||||||||
| Commercial business loans |
75,640 | 87,333 | 88,207 | 95,131 | 97,682 | |||||||||||||||
| Construction loans |
927 | 2,059 | 2,038 | 3,734 | 3,697 | |||||||||||||||
| Account loans |
2,980 | 3,012 | 3,349 | 3,313 | 3,368 | |||||||||||||||
| Other consumer loans |
17,501 | 19,870 | 22,052 | 21,642 | 12,452 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Consumer loans |
20,481 | 22,882 | 25,401 | 24,955 | 15,820 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total loans, excluding yield adjs |
2,970,642 | 2,841,906 | 2,671,381 | 2,717,235 | 2,599,023 | |||||||||||||||
| Unamortized yield adjustments |
3,289 | 3,699 | 2,606 | 2,834 | 2,727 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Loans receivable, including yield adjs |
2,973,931 | 2,845,605 | 2,673,987 | 2,720,069 | 2,601,750 | |||||||||||||||
| Less allowance for loan losses |
(26,060 | ) | (25,003 | ) | (24,229 | ) | (23,010 | ) | (20,514 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net loans receivable |
$ | 2,947,871 | $ | 2,820,602 | $ | 2,649,758 | $ | 2,697,059 | $ | 2,581,236 | ||||||||||
| Loan portfolio allocation: |
||||||||||||||||||||
| Residential first mortgage loans |
18.9 | % | 20.6 | % | 22.7 | % | 22.8 | % | 23.8 | % | ||||||||||
| Home equity loans and lines of credit |
2.8 | % | 3.0 | % | 3.4 | % | 3.3 | % | 3.5 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Residential mortgage loans |
21.7 | % | 23.6 | % | 26.0 | % | 26.2 | % | 27.3 | % | ||||||||||
| Multifamily mortgage loans |
43.6 | % | 40.2 | % | 38.9 | % | 38.4 | % | 37.4 | % | ||||||||||
| Nonresidential and mixed use mortgage loans |
31.4 | % | 32.3 | % | 30.7 | % | 30.8 | % | 30.8 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Commercial mortgage loans |
75.0 | % | 72.5 | % | 69.7 | % | 69.3 | % | 68.2 | % | ||||||||||
| Commercial business loans |
2.5 | % | 3.1 | % | 3.3 | % | 3.5 | % | 3.8 | % | ||||||||||
| Construction loans |
0.0 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | ||||||||||
| Account loans |
0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | ||||||||||
| Other consumer loans |
0.6 | % | 0.7 | % | 0.8 | % | 0.8 | % | 0.5 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Consumer loans |
0.7 | % | 0.8 | % | 1.0 | % | 0.9 | % | 0.6 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total loans, excluding yield adjs |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Asset quality: |
||||||||||||||||||||
| Nonperforming assets: |
||||||||||||||||||||
| Accruing loans > 90 days past due |
$ | 92 | $ | 77 | $ | 38 | $ | — | $ | — | ||||||||||
| Nonaccrual loans |
21,473 | 21,768 | 21,017 | 28,275 | 20,966 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total nonperforming loans |
21,565 | 21,845 | 21,055 | 28,275 | 20,966 | |||||||||||||||
| Other real estate owned |
2,037 | 1,356 | 826 | 1,475 | 2,313 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Nonperforming assets |
$ | 23,602 | $ | 23,201 | $ | 21,881 | $ | 29,750 | $ | 23,279 | ||||||||||
| Nonperforming loans (% total loans) |
0.72 | % | 0.77 | % | 0.79 | % | 1.04 | % | 0.81 | % | ||||||||||
| Nonperforming assets (% total assets) |
0.51 | % | 0.51 | % | 0.49 | % | 0.66 | % | 0.53 | % | ||||||||||
| Allowance for loan losses (ALLL): |
||||||||||||||||||||
| ALLL to total loans |
0.88 | % | 0.88 | % | 0.91 | % | 0.85 | % | 0.79 | % | ||||||||||
| ALLL to nonperforming loans |
120.84 | % | 114.46 | % | 115.07 | % | 81.38 | % | 97.84 | % | ||||||||||
| Net charge offs |
$ | 198 | $ | 354 | $ | 827 | $ | 93 | $ | 591 | ||||||||||
| Average net charge off rate (annualized) |
0.03 | % | 0.05 | % | 0.12 | % | 0.01 | % | 0.09 | % | ||||||||||
| Supplemental Balance Sheet Highlights |
At | |||||||||||||||||||
| December 31, 2016 |
September 30, 2016 |
June 30, 2016 |
March 31, 2016 |
December 31, 2015 |
||||||||||||||||
| Funding by type: |
||||||||||||||||||||
| Deposits |
||||||||||||||||||||
| Non-interest-bearing deposits |
$ | 240,367 | $ | 251,141 | $ | 238,751 | $ | 226,700 | $ | 213,242 | ||||||||||
| Interest-bearing demand |
768,556 | 750,126 | 732,633 | 717,603 | 728,815 | |||||||||||||||
| Savings and club |
519,257 | 514,909 | 516,023 | 520,826 | 514,935 | |||||||||||||||
| Certificates of deposit |
1,217,837 | 1,217,784 | 1,207,426 | 1,195,644 | 1,126,193 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Interest-bearing deposits |
2,505,650 | 2,482,819 | 2,456,082 | 2,434,073 | 2,369,943 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total deposits |
2,746,017 | 2,733,960 | 2,694,833 | 2,660,773 | 2,583,185 | |||||||||||||||
| Borrowings: |
||||||||||||||||||||
| Federal Home Loan Bank advances |
665,742 | 600,765 | 578,788 | 585,317 | 585,347 | |||||||||||||||
| Depositor sweep accounts |
36,107 | 32,624 | 35,635 | 33,003 | 35,062 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total borrowings |
701,849 | 633,389 | 614,423 | 618,320 | 620,409 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total funding |
$ | 3,447,866 | $ | 3,367,349 | $ | 3,309,256 | $ | 3,279,093 | $ | 3,203,594 | ||||||||||
| Loans as a % of deposits |
107.6 | % | 103.3 | % | 98.5 | % | 101.4 | % | 99.9 | % | ||||||||||
| Deposits as a % of total funding |
79.6 | % | 81.2 | % | 81.4 | % | 81.1 | % | 80.6 | % | ||||||||||
| Borrowings as a % of total funding |
20.4 | % | 18.8 | % | 18.6 | % | 18.9 | % | 19.4 | % | ||||||||||
| Funding by source: |
||||||||||||||||||||
| Retail funding |
||||||||||||||||||||
| Non-interest-bearing deposits |
$ | 240,367 | $ | 251,141 | $ | 238,751 | $ | 226,700 | $ | 213,242 | ||||||||||
| Interest-bearing demand |
544,487 | 527,511 | 508,528 | 493,831 | 482,200 | |||||||||||||||
| Savings and club |
519,257 | 514,909 | 516,023 | 520,826 | 514,935 | |||||||||||||||
| Certificates of deposit |
1,113,073 | 1,119,922 | 1,109,203 | 1,097,414 | 1,017,879 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total retail deposits |
2,417,184 | 2,413,483 | 2,372,505 | 2,338,771 | 2,228,256 | |||||||||||||||
| Depositor sweep accounts |
36,107 | 32,624 | 35,635 | 33,003 | 35,062 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total retail funding |
$ | 2,453,291 | $ | 2,446,107 | $ | 2,408,140 | $ | 2,371,774 | $ | 2,263,318 | ||||||||||
| Wholesale funding: |
||||||||||||||||||||
| Interest-bearing demand |
$ | 224,069 | $ | 222,615 | $ | 224,105 | $ | 223,772 | $ | 246,615 | ||||||||||
| Certificates of deposit (listing service) |
96,516 | 89,608 | 89,857 | 89,857 | 89,857 | |||||||||||||||
| Certificates of deposit (brokered) |
8,248 | 8,254 | 8,366 | 8,373 | 18,457 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total wholesale deposits |
328,833 | 320,477 | 322,328 | 322,002 | 354,929 | |||||||||||||||
| FHLB Advances |
665,742 | 600,765 | 578,788 | 585,317 | 585,347 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total wholesale funding |
994,575 | 921,242 | 901,116 | 907,319 | 940,276 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total funding |
$ | 3,447,866 | $ | 3,367,349 | $ | 3,309,256 | $ | 3,279,093 | $ | 3,203,594 | ||||||||||
| Retail funding as a % of total funding |
71.2 | % | 72.6 | % | 72.8 | % | 72.3 | % | 70.6 | % | ||||||||||
| Wholesale funding as a % of total funding |
28.8 | % | 27.4 | % | 27.2 | % | 27.7 | % | 29.4 | % | ||||||||||
| Summary Income Statement |
For the three months ended | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| 2016 | 2016 | 2016 | 2016 | 2015 | ||||||||||||||||
| Interest income |
||||||||||||||||||||
| Loans |
$ | 27,407 | $ | 25,697 | $ | 25,698 | $ | 25,585 | $ | 24,641 | ||||||||||
| Mortgage-backed securities |
3,779 | 3,937 | 4,032 | 4,296 | 4,409 | |||||||||||||||
| Debt securities: |
||||||||||||||||||||
| Taxable |
2,146 | 2,040 | 1,990 | 1,988 | 1,845 | |||||||||||||||
| Tax-exempt |
562 | 551 | 551 | 551 | 555 | |||||||||||||||
| Other interest-earning assets |
421 | 581 | 496 | 462 | 374 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Interest Income |
34,315 | 32,806 | 32,767 | 32,882 | 31,824 | |||||||||||||||
| Interest expense |
||||||||||||||||||||
| Deposits |
5,410 | 5,361 | 5,140 | 4,932 | 4,529 | |||||||||||||||
| Borrowings |
3,289 | 3,424 | 3,400 | 3,486 | 3,357 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total interest expense |
8,699 | 8,785 | 8,540 | 8,418 | 7,886 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net interest income |
25,616 | 24,021 | 24,227 | 24,464 | 23,938 | |||||||||||||||
| Provision for loan losses |
1,255 | 1,129 | 2,046 | 2,589 | 3,414 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net interest income after provision for loan losses |
24,361 | 22,892 | 22,181 | 21,875 | 20,524 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Non-interest income |
||||||||||||||||||||
| Fees and service charges |
1,289 | 663 | 1,340 | 794 | 709 | |||||||||||||||
| Gain on sale and call of securities |
21 | — | — | — | 2 | |||||||||||||||
| Gain on sale of loans |
459 | 300 | 132 | 156 | 76 | |||||||||||||||
| Gain (loss) on sale of real estate owned |
12 | (15 | ) | 24 | (48 | ) | (113 | ) | ||||||||||||
| Income from bank owned life insurance |
1,321 | 1,319 | 1,374 | 1,390 | 1,409 | |||||||||||||||
| Electronic banking fees and charges |
270 | 283 | 284 | 244 | 277 | |||||||||||||||
| Miscellaneous |
74 | 79 | 57 | 77 | 50 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total non-interest income |
3,446 | 2,629 | 3,211 | 2,613 | 2,410 | |||||||||||||||
| Non-interest expense |
||||||||||||||||||||
| Salaries and employee benefits |
11,592 | 10,909 | 10,640 | 10,459 | 10,381 | |||||||||||||||
| Net occupancy expense of premises |
1,976 | 1,941 | 1,813 | 1,991 | 1,774 | |||||||||||||||
| Equipment and systems |
2,030 | 2,048 | 2,092 | 2,045 | 1,614 | |||||||||||||||
| Advertising and marketing |
387 | 549 | 490 | 539 | 563 | |||||||||||||||
| Federal deposit insurance premium |
339 | 305 | 687 | 684 | 675 | |||||||||||||||
| Directors’ compensation |
379 | 225 | 224 | 225 | 181 | |||||||||||||||
| Miscellaneous |
2,670 | 2,683 | 1,732 | 2,710 | 2,516 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total non-interest expense |
19,373 | 18,660 | 17,678 | 18,653 | 17,704 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income before income taxes |
8,434 | 6,861 | 7,714 | 5,835 | 5,230 | |||||||||||||||
| Income taxes |
2,970 | 2,194 | 2,833 | 1,667 | 1,433 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income |
$ | 5,464 | $ | 4,667 | $ | 4,881 | $ | 4,168 | $ | 3,797 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income per common share (EPS) |
||||||||||||||||||||
| Basic |
$ | 0.06 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.04 | ||||||||||
| Diluted |
$ | 0.06 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.04 | ||||||||||
| Dividends paid |
||||||||||||||||||||
| Cash dividends paid per common share |
$ | 0.02 | $ | 0.02 | $ | 0.02 | $ | 0.02 | $ | 0.02 | ||||||||||
| Cash dividends paid |
$ | 1,687 | $ | 1,710 | $ | 1,792 | $ | 1,793 | $ | 1,789 | ||||||||||
| Dividend payout ratio |
30.9 | % | 36.6 | % | 36.7 | % | 43.0 | % | 47.1 | % | ||||||||||
| Weighted average number of common |
||||||||||||||||||||
| Basic |
85,174 | 86,246 | 89,443 | 89,690 | 89,640 | |||||||||||||||
| Diluted |
85,258 | 86,304 | 89,481 | 89,724 | 89,674 | |||||||||||||||
| Average Balance Sheet Data |
For the three months ended | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| 2016 | 2016 | 2016 | 2016 | 2015 | ||||||||||||||||
| Assets |
||||||||||||||||||||
| Interest-earning assets: |
||||||||||||||||||||
| Loans receivable, including loans held for sale |
$ | 2,899,794 | $ | 2,697,096 | $ | 2,682,755 | $ | 2,564,753 | $ | 2,496,324 | ||||||||||
| Mortgage-backed securities |
673,569 | 695,876 | 705,962 | 730,810 | 751,576 | |||||||||||||||
| Debt securities: |
||||||||||||||||||||
| Tax-exempt |
112,221 | 109,625 | 109,691 | 109,798 | 111,611 | |||||||||||||||
| Taxable |
419,966 | 442,233 | 459,731 | 474,547 | 495,982 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total debt securities |
532,187 | 551,858 | 569,422 | 584,345 | 607,593 | |||||||||||||||
| Other interest-earning assets |
71,072 | 204,621 | 191,129 | 135,872 | 167,476 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total interest-earning assets |
4,176,622 | 4,149,451 | 4,149,268 | 4,015,780 | 4,022,969 | |||||||||||||||
| Non-interest-earning assets |
351,458 | 359,514 | 352,841 | 356,578 | 358,633 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total assets |
$ | 4,528,080 | $ | 4,508,965 | $ | 4,502,109 | $ | 4,372,358 | $ | 4,381,602 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Liabilities and Stockholders’ Equity |
||||||||||||||||||||
| Interest-bearing liabilities: |
||||||||||||||||||||
| Deposits: |
||||||||||||||||||||
| Interest-bearing demand |
$ | 761,765 | $ | 748,516 | $ | 726,327 | $ | 725,070 | $ | 716,008 | ||||||||||
| Savings and club |
518,225 | 515,615 | 519,055 | 515,762 | 510,818 | |||||||||||||||
| Certificates of deposit |
1,224,592 | 1,215,081 | 1,200,874 | 1,177,147 | 1,099,626 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total interest-bearing deposits |
2,504,582 | 2,479,212 | 2,446,256 | 2,417,979 | 2,326,452 | |||||||||||||||
| Borrowings: |
||||||||||||||||||||
| Federal Home Loan Bank Advances |
594,238 | 577,305 | 585,085 | 585,329 | 586,314 | |||||||||||||||
| Other borrowings |
35,273 | 33,530 | 32,183 | 32,598 | 39,980 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total borrowings |
629,511 | 610,835 | 617,268 | 617,927 | 626,294 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total interest-bearing liabilities |
3,134,093 | 3,090,047 | 3,063,524 | 3,035,906 | 2,952,746 | |||||||||||||||
| Non-interest-bearing liabilities: |
||||||||||||||||||||
| Non-interest-bearing deposits |
245,928 | 243,964 | 232,698 | 217,841 | 223,451 | |||||||||||||||
| Other non-interest-bearing liabilities |
31,781 | 47,092 | 41,577 | 41,480 | 39,396 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total non-interest-bearing liabilities |
277,709 | 291,056 | 274,275 | 259,321 | 262,847 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total liabilities |
3,411,802 | 3,381,103 | 3,337,799 | 3,295,227 | 3,215,593 | |||||||||||||||
| Stockholders’ equity |
1,116,278 | 1,127,862 | 1,164,310 | 1,167,131 | 1,166,009 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total liabilities and stockholders’ equity |
$ | 4,528,080 | $ | 4,508,965 | $ | 4,502,109 | $ | 4,462,358 | $ | 4,381,602 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Average interest-earning assets to average interest-bearing liabilities |
133.26 | % | 134.28 | % | 135.44 | % | 135.24 | % | 136.25 | % | ||||||||||
| Performance Ratio Highlights |
For the three months ended | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| 2016 | 2016 | 2016 | 2016 | 2015 | ||||||||||||||||
| Average yield on interest-earning assets: |
||||||||||||||||||||
| Loans receivable, including loans held for sale |
3.78 | % | 3.81 | % | 3.83 | % | 3.85 | % | 3.95 | % | ||||||||||
| Mortgage-backed securities |
2.24 | % | 2.26 | % | 2.28 | % | 2.35 | % | 2.35 | % | ||||||||||
| Debt securities: |
||||||||||||||||||||
| Tax-exempt |
2.00 | % | 2.01 | % | 2.01 | % | 2.01 | % | 1.99 | % | ||||||||||
| Taxable |
2.04 | % | 1.85 | % | 1.73 | % | 1.68 | % | 1.49 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total debt securities |
2.04 | % | 1.88 | % | 1.79 | % | 1.74 | % | 1.58 | % | ||||||||||
| Other interest-earning assets |
2.37 | % | 1.14 | % | 1.04 | % | 1.36 | % | 0.90 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total interest-earning assets |
3.29 | % | 3.16 | % | 3.16 | % | 3.20 | % | 3.16 | % | ||||||||||
| Average cost of interest-bearing liabilities: |
||||||||||||||||||||
| Deposits: |
||||||||||||||||||||
| Interest-bearing demand |
0.62 | % | 0.63 | % | 0.62 | % | 0.60 | % | 0.57 | % | ||||||||||
| Savings and club |
0.12 | % | 0.15 | % | 0.16 | % | 0.16 | % | 0.17 | % | ||||||||||
| Certificates of deposit |
1.33 | % | 1.31 | % | 1.27 | % | 1.23 | % | 1.20 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total interest-bearing deposits |
0.86 | % | 0.87 | % | 0.84 | % | 0.82 | % | 0.78 | % | ||||||||||
| Borrowings: |
||||||||||||||||||||
| Federal Home Loan Bank Advances |
2.20 | % | 2.35 | % | 2.30 | % | 2.35 | % | 2.25 | % | ||||||||||
| Other borrowings |
0.29 | % | 0.42 | % | 0.50 | % | 0.51 | % | 0.53 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total borrowings |
2.09 | % | 2.24 | % | 2.20 | % | 2.26 | % | 2.14 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total interest-bearing liabilities |
1.11 | % | 1.14 | % | 1.12 | % | 1.11 | % | 1.07 | % | ||||||||||
| Interest rate spread (1) |
2.18 | % | 2.02 | % | 2.04 | % | 2.09 | % | 2.09 | % | ||||||||||
| Net interest margin (2) |
2.45 | % | 2.32 | % | 2.34 | % | 2.38 | % | 2.38 | % | ||||||||||
| Non-interest income to average
assets |
0.30 | % | 0.23 | % | 0.29 | % | 0.23 | % | 0.22 | % | ||||||||||
| Non-interest expense to average
assets |
1.71 | % | 1.66 | % | 1.57 | % | 1.67 | % | 1.62 | % | ||||||||||
| Efficiency ratio |
66.66 | % | 70.02 | % | 64.43 | % | 68.89 | % | 67.19 | % | ||||||||||
| Return on average assets (annualized) |
0.48 | % | 0.41 | % | 0.43 | % | 0.37 | % | 0.35 | % | ||||||||||
| Return on average equity (annualized) |
1.96 | % | 1.66 | % | 1.68 | % | 1.43 | % | 1.30 | % | ||||||||||
| (1) | Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities |
| (2) | Net interest income divided by average interest-earning assets |
| (3) | Non-interest expense divided by the sum of net interest income and non-interest income |