•

Net income increased 40.6%, to $63.2 million, while earnings per share increased 39.5%, to $0.77 per diluted share.

•

Net interest margin increased 30 basis points to 2.75%, while net interest income increased 23.5% to $184.5 million.

•

Completed acquisition of MSB on July 10, 2020 adding total assets of $581.9 million, net loans of $530.2 million and total deposits of $460.2 million.

•

Core non-maturity deposits, excluding acquired balances, grew $712.5 million, or 27.5%, including organic growth of 29.4% in non-interest-bearing deposits.

•

Gain on sale of loans increased $2.4 million, or 75.0%, largely driven by increased mortgage banking activity.

•

Total assets at June 30, 2021, were $7.28 billion, a decrease of $74.3 million, or 1.0%, from March 31, 2021 and an increase of $525.6 million, or 7.8%, from June 30, 2020.

•

Deposits totaled $5.49 billion at June 30, 2021, an increase of $110.9 million, or 2.1%, from March 31, 2021 and $1.1 billion, or 23.8%, from June 30, 2020. For those same comparative periods core non-maturity deposits increased by $33.1 million and $1.02 billion, respectively.

•

Loans receivable totaled $4.85 billion at June 30, 2021, an increase of $53.2 million, or 1.1%, from March 31, 2021 and $353.0 million, or 7.8%, from June 30, 2020.

•

Investment securities totaled $1.72 billion at June 30, 2021, a decrease of $91.1 million, or 5.0%, from March 31, 2021 and an increase of $296.7 million, or 20.9%, from June 30, 2020.

•

Borrowings totaled $685.9 million at June 30, 2021, a decrease of $179.9 million, or 20.8% from March 31, 2021 and $487.3 million, or 41.5% from June 30, 2020.

•

Return on average assets (“ROAA”) improved to 1.01% and 0.86%, for the quarter and year ended June 30, 2021, respectively. Excluding the impact of non-recurring items, ROAA would have been 1.04% and 0.91% for the same comparative periods.  

•

Return on average equity improved to 7.01% and 5.79% for the quarter and year ended June 30, 2021, respectively, while return on average tangible equity improved to 8.81% and 7.22% for the same comparative periods. Excluding the impact of non-recurring items, return on average tangible equity would have been 9.04% and 7.61% for the quarter and year ended June 30, 2021, respectively.

•

Net interest margin increased four basis points to 2.87% for the quarter ended June 30, 2021 and 30 basis points to 2.75% for the year ended June 30, 2021. The increase in net interest margin was largely the result of a reduction in the cost of interest-bearing liabilities and an increase in the average balance of non-interest-bearing deposits, partially offset by a decrease in the yield on interest-earning assets.

•

Net interest income increased by $532,000 to $48.2 million for the quarter ended June 30, 2021 from $47.6 million for the quarter ended March 31, 2021. Included in net interest income, for the quarters ended June 30, 2021 and March 31, 2021, was purchase accounting accretion of $3.1 million and $4.8 million, respectively. For the year ended June 30, 2021, net interest income increased by $35.2 million, or 23.5%, to $184.5 million from $149.4 million for the year ended June 30, 2020.

•

Fees and service charges totaled $1.3 million for the quarter ended June 30, 2021, unchanged from the quarter ended March 31, 2021. For the year ended June 30, 2021 fees and service charges decreased by $1.0 million to $5.6 million, largely attributable to a decrease of $836,000 in loan pre-payment penalty income to $3.8 million.

•

Gain on sale and call of securities totaled $313,000 for the quarter ended June 30, 2021 compared to $18,000 for the quarter ended March 31, 2021. For the year ended June 30, 2021, gain on sale and call of securities totaled $767,000 compared to $2.3 million for the year ended June 30, 2020.

•

Gain on sale of loans decreased by $580,000 to $363,000 for the quarter ended June 30, 2021 from $943,000 for the quarter ended March 31, 2021. The decrease was largely attributable to the strategic decision to retain a comparatively greater percentage of originated loans within the portfolio. For the year ended June 30, 2021, gain on sale of loans totaled $5.6 million compared to $3.2 million for the year ended June 30, 2020. This growth largely reflected increases in both the volume and net price of residential mortgage loans originated and sold during the period and, to a lesser extent, $352,000 of gains on sale of Paycheck Protection Program (“PPP”) loans.

•

For the year ended June 30, 2021, a non-recurring bargain purchase gain of $3.1 million was recognized in conjunction with the acquisition of MSB.

•

Included in other income for the quarter and year ended June 30, 2021 were non-recurring gains of $205,000 and $1.0 million, respectively, attributable to the sale of properties which previously served as a Kearny Bank retail branch locations and were sold in connection with branch consolidation activities.

•

Non-interest expense increased by $2.2 million to $32.0 million for the quarter ended June 30, 2021 compared to $29.8 million for the quarter ended March 31, 2021. The increase was largely attributable to asset impairment charges of $2.0 million as described in further detail below.

•

Non-interest expense increased by $18.3 million to $125.9 million for the year ended June 30, 2021 compared to $107.6 million for the year ended June 30, 2020. This increase was largely attributable to increases in personnel, technology and occupancy expense associated, in part, with the MSB acquisition, along with increases in merger-related expense, FDIC insurance expense and other expense.

•

Included in other expense for the quarter and year ended June 30, 2021 were asset impairment charges totaling $2.0 million and $2.7 million, respectively. These charges, for the quarter and year ended June 30, 2021, primarily reflected net losses of $1.2 million and $1.9 million, respectively, arising from the transfer of various branch and administrative facilities to held-for-sale status. An additional impairment of $800,000 was recognized during the quarter ended June, 30, 2021 attributable to the partial write-down of the value of the Company’s equity investment in a start-up financial technology company whose remaining book value totaled $200,000 as of that date.

•

Also included in other expense, for the quarter and year ended June 30, 2021, were provisions for credit losses on off-balance sheet credit exposures, as required under the Current Expected Credit Loss (“CECL”) standard, of $443,000 and $1.2 million, respectively. No such expense was recorded in the fiscal year ended June 30, 2020.

•

The efficiency and non-interest expense ratios were 60.86% and 1.75%, respectively, for the quarter ended June 30, 2021 and 60.16% and 1.72%, respectively, for the year ended June 30, 2021. Excluding the impact of non-recurring items, the efficiency and non-interest expense ratios for the year ended June 30, 2021 would have been 58.22% and 1.62%, respectively.

•

Income tax expense totaled $7.0 million for the quarter ended June 30, 2021 compared to $5.7 million for the quarter ended March 31, 2021, resulting in effective tax rates of 27.6% and 25.9%, respectively. For the year ended June 30, 2021, income tax expense was $21.3 million compared to $12.3 million for the year ended June 30, 2020 resulting in effective tax rates of 25.2% and 21.5%, respectively.  

•

The balance of non-performing loans totaled $79.8 million, or 1.64% of total loans, at June 30, 2021, compared to $71.4 million, or 1.49% of total loans, at March 31, 2021 and $36.7 million, or 0.82% of total loans, at June 30, 2020.

•

As of June 30, 2021, the Company had active COVID-19 payment deferrals on 10 loans totaling $5.6 million, representing 0.12% of total loans.

•

Net charge offs totaled $656,000, or 0.05% of average loans, for the quarter ended June 30, 2021 compared to $750,000, or 0.06% of average loans, for the quarter ended March 31, 2021. Net charge offs for the quarter were largely attributable to the partial charge-off of one wholesale commercial business loan totaling $592,000. For the year ended June 30, 2021, net charge offs totaled $1.6 million, or 0.03% of average loans, compared to $144,000, or 0.00% of average loans, for the year ended June 30, 2020.

•

For the quarter and year ended June 30, 2021, the Company recorded provision for credit loss reversals of $4.9 million and $1.1 million, respectively, compared to provision for credit losses of $1.1 million for the quarter ended March 31, 2021 and $4.2 million for the year ended June 30, 2020. The provision reversals for the quarter and year ended June 30, 2021 primarily reflected an improved economic forecast and credit risk outlook resulting in a release of reserves within multiple loan segments. By comparison, the provision for the year ended June 30, 2020 was largely attributable to increases in qualitative factors associated with the economic impact of COVID-19.

•

The Allowance for Credit Losses (“ACL”) totaled $58.2 million, or 1.19% of total loans, at June 30, 2021, a decrease from $63.8 million, or 1.32% of total loans at March 31, 2021 and an increase from $37.3 million, or 0.82% of total loans, at June 30, 2020. As previously disclosed, on July 1, 2020, the Company adopted ASU 2016-13, also known as the CECL standard. At adoption, the Company increased its ACL by $19.6 million and $536,000, respectively, for loans and off-balance sheet credit exposures and recognized a cumulative effect adjustment that reduced stockholders’ equity by $14.2 million, net of tax.

•

On July 10, 2020 the Company completed its acquisition of MSB, which resulted in an increase to the ACL of $9.0 million. Of this increase, $3.9 million was attributable to PCD loans and was recorded as an adjustment to their amortized cost basis. The remaining $5.1 million increase was attributable to non-PCD loans and was recorded via a provision for credit losses.

•

During the quarter and year ended June 30, 2021, the Company repurchased 3,031,820 and 10,567,073 shares of common stock at a cost of $38.5 million and $119.0 million, or $12.68 and $11.26 per share, respectively.

•

For the quarter ended June 30, 2021, the Company increased its quarterly cash dividend to $0.10 per common share. For the year ended June 30, 2021, cash dividends paid totaled $0.35 per share, an increase of 20.7% from the year ended June 30, 2020.

•

Book value per share totaled $13.21 at June 30, 2021, an increase of $0.23 from March 31, 2021 and $0.25 from June 30, 2020, while tangible book value per share totaled $10.49 at June 30, 2021, an increase of $0.13 from March 31, 2021 and $0.10 from June 30, 2020.

•

At June 30, 2021, the Company’s ratio of tangible equity to tangible assets equaled 11.72% and the regulatory capital ratios, of both the Company and the Bank, were in excess of the levels required by federal banking regulators to be classified as “well-capitalized” under regulatory guidelines.

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)

2021

2021

or Change

Pct.

Assets

Cash and cash equivalents

$

67,855

$

108,991

$

(41,136

)

-37.7

%

Securities available for sale

1,676,864

1,778,970

(102,106

)

-5.7

%

Securities held to maturity

38,138

27,168

10,970

40.4

%

Loans held-for-sale

16,492

5,172

11,320

218.9

%

Loans receivable

4,851,394

4,798,239

53,155

1.1

%

Less: allowance for credit losses on loans

(58,165

)

(63,762

)

5,597

-8.8

%

Net loans receivable

4,793,229

4,734,477

58,752

1.2

%

Premises and equipment

56,338

60,360

(4,022

)

-6.7

%

Federal Home Loan Bank stock

36,615

45,578

(8,963

)

-19.7

%

Accrued interest receivable

19,362

20,562

(1,200

)

-5.8

%

Goodwill

210,895

210,895

-

0.0

%

Core deposit intangible

3,705

3,888

(183

)

-4.7

%

Bank owned life insurance

283,310

281,765

1,545

0.5

%

Deferred income taxes, net

29,323

32,230

(2,907

)

-9.0

%

Other real estate owned

178

178

-

0.0

%

Other assets

51,431

47,760

3,671

7.7

%

Total assets

$

7,283,735

$

7,357,994

$

(74,259

)

-1.0

%

Liabilities

Deposits:

Non-interest-bearing

$

593,718

$

545,746

$

47,972

8.8

%

Interest-bearing

4,891,588

4,828,706

62,882

1.3

%

Total deposits

5,485,306

5,374,452

110,854

2.1

%

Borrowings

685,876

865,763

(179,887

)

-20.8

%

Advance payments by borrowers for taxes

15,752

15,300

452

3.0

%

Other liabilities

53,857

38,667

15,190

39.3

%

Total liabilities

6,240,791

6,294,182

(53,391

)

-0.8

%

Stockholders' Equity

Common stock

790

820

(30

)

-3.7

%

Paid-in capital

654,396

691,280

(36,884

)

-5.3

%

Retained earnings

408,367

397,594

10,773

2.7

%

Unearned ESOP shares

(26,753

)

(27,239

)

486

-1.8

%

Accumulated other comprehensive income

6,144

1,357

4,787

352.8

%

Total stockholders' equity

1,042,944

1,063,812

(20,868

)

-2.0

%

Total liabilities and stockholders' equity

$

7,283,735

$

7,357,994

$

(74,259

)

-1.0

%

Consolidated capital ratios

Equity to assets

14.32

%

14.46

%

-0.14

%

Tangible equity to tangible assets ⁽¹⁾

11.72

%

11.89

%

-0.17

%

Share data

Outstanding shares

78,965

81,943

(2,978

)

-3.6

%

Book value per share

$

13.21

$

12.98

$

0.23

1.7

%

Tangible book value per share ⁽²⁾

$

10.49

$

10.36

$

0.13

1.2

%

(1)

Tangible equity equals total stockholders' equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.

(2)

Tangible book value equals total stockholders' equity reduced by goodwill and core deposit intangible assets.

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)

2021

2021

or Change

Pct.

Interest income

Loans

$

47,562

$

49,307

$

(1,745

)

-3.5

%

Taxable investment securities

8,304

7,891

413

5.2

%

Tax-exempt investment securities

355

410

(55

)

-13.4

%

Other interest-earning assets

549

705

(156

)

-22.1

%

Total Interest Income

56,770

58,313

(1,543

)

-2.6

%

Interest expense

Deposits

5,156

6,670

(1,514

)

-22.7

%

Borrowings

3,451

4,012

(561

)

-14.0

%

Total interest expense

8,607

10,682

(2,075

)

-19.4

%

Net interest income

48,163

47,631

532

1.1

%

(Reversal of) provision for credit losses

(4,941

)

1,126

(6,067

)

-538.8

%

Net interest income after (reversal of) provision

for credit losses

53,104

46,505

6,599

14.2

%

Non-interest income

Fees and service charges

1,325

1,325

-

0.0

%

Gain on sale and call of securities

313

18

295

1638.9

%

Gain on sale of loans

363

943

(580

)

-61.5

%

Income from bank owned life insurance

1,545

1,530

15

1.0

%

Electronic banking fees and charges

452

456

(4

)

-0.9

%

Other income

400

1,194

(794

)

-66.5

%

Total non-interest income

4,398

5,466

(1,068

)

-19.5

%

Non-interest expense

Salaries and employee benefits

17,777

16,965

812

4.8

%

Net occupancy expense of premises

2,998

3,433

(435

)

-12.7

%

Equipment and systems

3,575

3,823

(248

)

-6.5

%

Advertising and marketing

581

567

14

2.5

%

Federal deposit insurance premium

490

488

2

0.4

%

Directors' compensation

749

748

1

0.1

%

Other expense

5,816

3,792

2,024

53.4

%

Total non-interest expense

31,986

29,816

2,170

7.3

%

Income before income taxes

25,516

22,155

3,361

15.2

%

Income taxes

7,033

5,732

1,301

22.7

%

Net income

$

18,483

$

16,423

$

2,060

12.5

%

Net income per common share (EPS)

Basic

$

0.24

$

0.20

$

0.04

Diluted

$

0.24

$

0.20

$

0.04

Dividends declared

Cash dividends declared per common share

$

0.10

$

0.09

$

0.01

Cash dividends declared

$

7,710

$

7,205

$

505

Dividend payout ratio

41.7

%

43.9

%

-2.2

%

Weighted average number of  common

shares outstanding

Basic

77,658

80,673

(3,015

)

Diluted

77,680

80,690

(3,010

)

For the three months ended

Variance

Average Balance Sheet Data

June 30,

March 31,

Variance

or Change

(Dollars in Thousands, Unaudited)

2021

2021

or Change

Pct.

Assets

Interest-earning assets:

Loans receivable, including loans held for sale

$

4,817,980

$

4,816,592

$

1,388

0.0

%

Taxable investment securities

1,720,838

1,674,223

46,615

2.8

%

Tax-exempt investment securities

63,047

73,573

(10,526

)

-14.3

%

Other interest-earning assets

117,212

169,291

(52,079

)

-30.8

%

Total interest-earning assets

6,719,077

6,733,679

(14,602

)

-0.2

%

Non-interest-earning assets

609,762

617,440

(7,678

)

-1.2

%

Total assets

$

7,328,839

$

7,351,119

$

(22,280

)

-0.3

%

Liabilities and Stockholders' Equity

Interest-bearing liabilities:

Deposits:

Interest-bearing demand

$

1,930,193

$

1,831,617

$

98,576

5.4

%

Savings

1,118,402

1,084,981

33,421

3.1

%

Certificates of deposit

1,934,650

1,904,234

30,416

1.6

%

Total interest-bearing deposits

4,983,245

4,820,832

162,413

3.4

%

Borrowings:

Federal Home Loan Bank advances

665,802

865,690

(199,888

)

-23.1

%

Other borrowings

6,670

-

6,670

0.0

%

Total borrowings

672,472

865,690

(193,218

)

-22.3

%

Total interest-bearing liabilities

5,655,717

5,686,522

(30,805

)

-0.5

%

Non-interest-bearing liabilities:

Non-interest-bearing deposits

566,632

525,018

41,614

7.9

%

Other non-interest-bearing liabilities

52,292

57,018

(4,726

)

-8.3

%

Total non-interest-bearing liabilities

618,924

582,036

36,888

6.3

%

Total liabilities

6,274,641

6,268,558

6,083

0.1

%

Stockholders' equity

1,054,198

1,082,561

(28,363

)

-2.6

%

Total liabilities and stockholders' equity

$

7,328,839

$

7,351,119

$

(22,280

)

-0.3

%

Average interest-earning assets to average

interest-bearing liabilities

118.80

%

118.41

%

0.39

%

0.3

%

For the three months ended

June 30,

March 31,

Variance

Performance Ratio Highlights

2021

2021

or Change

Average yield on interest-earning assets:

Loans receivable, including loans held for sale

3.95

%

4.09

%

-0.14

%

Taxable investment securities

1.93

%

1.89

%

0.04

%

Tax-exempt investment securities ⁽¹⁾

2.25

%

2.23

%

0.02

%

Other interest-earning assets

1.87

%

1.67

%

0.20

%

Total interest-earning assets

3.38

%

3.46

%

-0.08

%

Average cost of interest-bearing liabilities:

Deposits:

Interest-bearing demand

0.27

%

0.34

%

-0.07

%

Savings

0.15

%

0.21

%

-0.06

%

Certificates of deposit

0.71

%

0.96

%

-0.25

%

Total interest-bearing deposits

0.41

%

0.55

%

-0.14

%

Borrowings:

Federal Home Loan Bank advances

2.07

%

1.85

%

0.22

%

Other borrowings

0.07

%

0.00

%

0.07

%

Total borrowings

2.05

%

1.85

%

0.20

%

Total interest-bearing liabilities

0.61

%

0.75

%

-0.14

%

Interest rate spread ⁽²⁾

2.77

%

2.71

%

0.06

%

Net interest margin ⁽³⁾

2.87

%

2.83

%

0.04

%

Non-interest income to average assets

(annualized)

0.24

%

0.30

%

-0.06

%

Non-interest expense to average assets

(annualized)

1.75

%

1.62

%

0.13

%

Efficiency ratio ⁽⁴⁾

60.86

%

56.15

%

4.71

%

Return on average assets (annualized)

1.01

%

0.89

%

0.12

%

Return on average equity (annualized)

7.01

%

6.07

%

0.94

%

Return on average tangible equity (annualized) ⁽⁵⁾

8.81

%

7.57

%

1.24

%

(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)

2021

2020

or Change

Pct.

Assets

Cash and cash equivalents

$

67,855

$

180,967

$

(113,112

)

-62.5

%

Securities available for sale

1,676,864

1,385,703

291,161

21.0

%

Securities held to maturity

38,138

32,556

5,582

17.1

%

Loans held-for-sale

16,492

20,789

(4,297

)

-20.7

%

Loans receivable, including yield adjustments

4,851,394

4,498,397

352,997

7.8

%

Less: allowance for credit losses on loans

(58,165

)

(37,327

)

(20,838

)

55.8

%

Net loans receivable

4,793,229

4,461,070

332,159

7.4

%

Premises and equipment

56,338

57,389

(1,051

)

-1.8

%

Federal Home Loan Bank of New York stock

36,615

58,654

(22,039

)

-37.6

%

Accrued interest receivable

19,362

17,373

1,989

11.4

%

Goodwill

210,895

210,895

-

0.0

%

Core deposit intangible

3,705

3,995

(290

)

-7.3

%

Bank owned life insurance

283,310

262,380

20,930

8.0

%

Deferred income tax assets, net

29,323

25,480

3,843

15.1

%

Other real estate owned

178

178

-

0.0

%

Other assets

51,431

40,746

10,685

26.2

%

Total assets

$

7,283,735

$

6,758,175

$

525,560

7.8

%

Liabilities

Deposits:

Non-interest-bearing

$

593,718

$

419,138

$

174,580

41.7

%

Interest-bearing

4,891,588

4,011,144

880,444

21.9

%

Total deposits

5,485,306

4,430,282

1,055,024

23.8

%

Borrowings

685,876

1,173,165

(487,289

)

-41.5

%

Advance payments by borrowers for taxes

15,752

16,569

(817

)

-4.9

%

Other liabilities

53,857

53,982

(125

)

-0.2

%

Total liabilities

6,240,791

5,673,998

566,793

10.0

%

Stockholders' Equity

Common stock

790

837

(47

)

-5.6

%

Paid-in capital

654,396

722,871

(68,475

)

-9.5

%

Retained earnings

408,367

387,911

20,456

5.3

%

Unearned ESOP shares

(26,753

)

(28,699

)

1,946

-6.8

%

Accumulated other comprehensive income

6,144

1,257

4,887

388.8

%

Total stockholders' equity

1,042,944

1,084,177

(41,233

)

-3.8

%

Total liabilities and stockholders' equity

$

7,283,735

$

6,758,175

$

525,560

7.8

%

Consolidated capital ratios

Equity to assets

14.32

%

16.04

%

-1.72

%

Tangible equity to tangible assets ⁽¹⁾

11.72

%

13.29

%

-1.57

%

Share data

Outstanding shares

78,965

83,663

(4,698

)

-5.6

%

Book value per share

$

13.21

$

12.96

$

0.25

1.9

%

Tangible book value per share ⁽²⁾

$

10.49

$

10.39

$

0.10

1.0

%

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)

2021

2020

or Change

Pct.

Interest income

Loans

$

198,515

$

187,003

$

11,512

6.2

%

Taxable investment securities

31,238

39,321

(8,083

)

-20.6

%

Tax-exempt investment securities

1,652

2,393

(741

)

-31.0

%

Other interest-earning assets

2,955

4,491

(1,536

)

-34.2

%

Total Interest Income

234,360

233,208

1,152

0.5

%

Interest expense

Deposits

31,535

58,852

(27,317

)

-46.4

%

Borrowings

18,316

25,002

(6,686

)

-26.7

%

Total interest expense

49,851

83,854

(34,003

)

-40.6

%

Net interest income

184,509

149,354

35,155

23.5

%

(Reversal of) provision for credit losses

(1,121

)

4,197

(5,318

)

-126.7

%

Net interest income after (reversal of) provision for

credit losses

185,630

145,157

40,473

27.9

%

Non-interest income

Fees and service charges

5,622

6,647

(1,025

)

-15.4

%

Gain on sale and call of securities

767

2,250

(1,483

)

-65.9

%

Gain on sale of loans

5,574

3,186

2,388

75.0

%

Loss on sale of real estate owned

-

(28

)

28

-100.0

%

Income from bank owned life insurance

6,267

6,225

42

0.7

%

Electronic banking fees and charges

1,717

1,245

472

37.9

%

Bargain purchase gain

3,053

-

3,053

0.0

%

Other income

1,751

194

1,557

802.6

%

Total non-interest income

24,751

19,719

5,032

25.5

%

Non-interest expense

Salaries and employee benefits

68,800

62,015

6,785

10.9

%

Net occupancy expense of premises

12,673

11,424

1,249

10.9

%

Equipment and systems

14,870

11,755

3,115

26.5

%

Advertising and marketing

2,161

2,788

(627

)

-22.5

%

Federal deposit insurance premium

1,940

286

1,654

578.3

%

Directors' compensation

2,993

3,079

(86

)

-2.8

%

Merger-related expenses

4,349

951

3,398

357.3

%

Debt extinguishment expenses

796

2,156

(1,360

)

-63.1

%

Other expense

17,303

13,170

4,133

31.4

%

Total non-interest expense

125,885

107,624

18,261

17.0

%

Income before income taxes

84,496

57,252

27,244

47.6

%

Income taxes

21,263

12,287

8,976

73.1

%

Net income

$

63,233

$

44,965

$

18,268

40.6

%

Net income per common share (EPS)

Basic

$

0.77

$

0.55

$

0.22

Diluted

$

0.77

$

0.55

$

0.22

Dividends declared

Cash dividends declared per common share

$

0.35

$

0.29

$

0.06

Cash dividends declared

$

28,538

$

23,733

$

4,805

Dividend payout ratio

45.1

%

52.8

%

-7.7

%

Weighted average number of  common

shares outstanding

Basic

82,387

82,409

(22

)

Diluted

82,391

82,430

(39

)

For the year ended

Variance

Average Balance Sheet Data

June 30,

June 30,

Variance

or Change

(Dollars in Thousands, Unaudited)

2021

2020

or Change

Pct.

Assets

Interest-earning assets: