Kearny Financial Corp. [KRNY] Filings

10-Q 1 krny-20220331.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-37399

KEARNY FINANCIAL CORP.

(Exact name of registrant as specified in its charter)


Maryland		30-0870244
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

120 Passaic Ave., Fairfield, New Jersey		07004
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code

973-244-4500

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	KRNY	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filers,” “accelerated filers,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: April 29, 2022.

$0.01 par value common stock — 70,421,270 shares outstanding

KEARNY FINANCIAL CORP. AND SUBSIDIARIES

INDEX


		Page Number
PART I—FINANCIAL INFORMATION

Item 1.	Financial Statements

	Consolidated Statements of Financial Condition at March 31, 2022 (Unaudited) and June 30, 2021	1

	Consolidated Statements of Income for the Three Months and Nine Months Ended March 31, 2022 and March 31, 2021 (Unaudited)	2

	Consolidated Statements of Comprehensive Income (Loss) for the Three Months and Nine Months Ended March 31, 2022 and March 31, 2021 (Unaudited)	3

	Consolidated Statements of Changes in Stockholders’ Equity for the Three Months and Nine Months Ended March 31, 2022 and March 31, 2021 (Unaudited)	4

	Consolidated Statements of Cash Flows for the Nine Months Ended March 31, 2022 and March 31, 2021 (Unaudited)	6

	Notes to Consolidated Financial Statements (Unaudited)	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	39

Item 3.	Quantitative and Qualitative Disclosure About Market Risk	51

Item 4.	Controls and Procedures	52

PART II—OTHER INFORMATION

Item 1.	Legal Proceedings	53

Item 1A.	Risk Factors	53

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	53

Item 3.	Defaults Upon Senior Securities	53

Item 4.	Mine Safety Disclosures	53

Item 5.	Other Information	53

Item 6.	Exhibits	54

SIGNATURES		55

KEARNY FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(In Thousands, Except Share and Per Share Data)


	March 31,			June 30,
	2022			2021
	(Unaudited)
Assets
Cash and amounts due from depository institutions	$	22,864		$	21,463
Interest-bearing deposits in other banks		39,515			46,392
Cash and cash equivalents		62,379			67,855
Investment securities available for sale (amortized cost $1,590,074 and $1,666,853, respectively), net of allowance for credit losses of $0 at March 31, 2022 and June 30, 2021		1,526,086			1,676,864
Investment securities held to maturity (fair value $117,017 and $39,610, respectively), net of allowance for credit losses of $0 at March 31, 2022 and June 30, 2021		121,853			38,138
Loans held-for-sale		2,822			16,492
Loans receivable		5,003,201			4,851,394
Less: allowance for credit losses on loans		(43,860	)		(58,165	)
Net loans receivable		4,959,341			4,793,229
Premises and equipment		53,727			56,338
Federal Home Loan Bank (“FHLB”) of New York stock		30,997			36,615
Accrued interest receivable		19,517			19,362
Goodwill		210,895			210,895
Core deposit intangibles		3,166			3,705
Bank owned life insurance		287,644			283,310
Deferred income tax assets, net		34,349			29,323
Other real estate owned		401			178
Other assets		76,714			51,431
Total Assets	$	7,389,891		$	7,283,735

Liabilities and Stockholders' Equity
Liabilities
Deposits:
Non-interest-bearing	$	621,954		$	593,718
Interest-bearing		4,906,708			4,891,588
Total deposits		5,528,662			5,485,306
Borrowings		851,220			685,876
Advance payments by borrowers for taxes		16,979			15,752
Other liabilities		37,861			53,857
Total Liabilities		6,434,722			6,240,791

Stockholders' Equity
Preferred stock, $0.01 par value, 100,000,000 shares authorized; none issued and outstanding		-			-
Common stock, $0.01 par value; 800,000,000 shares authorized; 71,424,469 shares and 78,964,859 shares issued and outstanding, respectively		714			790
Paid-in capital		561,176			654,396
Retained earnings		441,522			408,367
Unearned employee stock ownership plan shares; 2,609,069 shares and 2,759,594 shares, respectively		(25,294	)		(26,753	)
Accumulated other comprehensive (loss) income		(22,949	)		6,144
Total Stockholders' Equity		955,169			1,042,944
Total Liabilities and Stockholders' Equity	$	7,389,891		$	7,283,735

See notes to unaudited consolidated financial statements.

- 1 -

KEARNY FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Data)

(Unaudited)


	Three Months Ended					Nine Months Ended
	March 31,					March 31,
	2022			2021		2022			2021
Interest Income
Loans	$	45,846		$	50,159	$	141,651		$	153,776
Taxable investment securities		8,024			7,891		23,831			22,934
Tax-exempt investment securities		316			410		976			1,297
Other interest-earning assets		415			705		1,261			2,406
Total Interest Income		54,601			59,165		167,719			180,413

Interest Expense
Deposits		3,565			6,670		11,293			26,379
Borrowings		3,309			4,012		10,422			14,865
Total Interest Expense		6,874			10,682		21,715			41,244
Net Interest Income		47,727			48,483		146,004			139,169
(Reversal of) provision for credit losses		(3,920	)		1,126		(11,740	)		3,820
Net Interest Income after (Reversal of) Provision for Credit Losses		51,647			47,357		157,744			135,349

Non-Interest Income
Fees and service charges		617			473		1,922			1,474
Gain on sale and call of securities		3			18		4			454
Gain on sale of loans		376			943		2,352			5,211
Gain on sale of other real estate owned		14			-		14			-
Income from bank owned life insurance		1,511			1,530		4,634			4,722
Electronic banking fees and charges		432			456		1,260			1,265
Bargain purchase gain		-			-		-			3,053
Other income		238			1,194		938			1,351
Total Non-Interest Income		3,191			4,614		11,124			17,530

Non-Interest Expense
Salaries and employee benefits		19,184			16,965		55,897

Kearny Financial Corp. [KRNY] Filings
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10-Q	[2021-11-08]
10-K	[2021-08-27]
10-Q	[2021-05-07]
10-Q	[2021-02-08]
10-Q	[2020-11-06]
10-K	[2020-08-28]
10-Q	[2020-05-08]
10-Q	[2020-02-07]
10-Q	[2019-11-08]
10-K	[2019-08-28]
10-Q	[2019-05-09]
10-Q	[2019-02-08]
10-Q	[2018-11-08]
10-K	[2018-08-28]
10-Q	[2018-05-09]
10-Q	[2018-02-08]
10-Q	[2017-11-08]
10-K	[2017-08-29]
10-Q	[2017-05-10]
10-Q	[2017-02-08]
10-Q	[2016-11-09]
10-K	[2016-08-29]
10-Q	[2016-05-10]
10-Q	[2016-02-09]
10-Q	[2015-11-09]
10-K	[2015-09-14]
S-1	[2014-09-05]