Kearny Financial Corp. Earnings 2021-03-31

Balance Sheet	Income Statement	Cash Flow

krny-10q_20210331.htm

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, 2021


☐	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: May 4, 2021.

$0.01 par value common stock — 80,792,973 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, 2021 (Unaudited) and June 30, 2020	1

	Consolidated Statements of Income for the Three and Nine Months Ended March 31, 2021 and March 31, 2020 (Unaudited)	2

	Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended March 31, 2021 and March 31, 2020 (Unaudited)	4

	Consolidated Statements of Changes in Stockholders’ Equity for the Three and Nine Months Ended March 31, 2021 and March 31, 2020 (Unaudited)	5

	Consolidated Statements of Cash Flows for the Nine Months Ended March 31, 2021 and March 31, 2020 (Unaudited)	7

	Notes to Consolidated Financial Statements (Unaudited)	9

Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	48

Item 3:	Quantitative and Qualitative Disclosure About Market Risk	64

Item 4:	Controls and Procedures	66

PART II—OTHER INFORMATION

Item 1:	Legal Proceedings	67

Item 1A:	Risk Factors	67

Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	67

Item 3:	Defaults Upon Senior Securities	67

Item 4:	Mine Safety Disclosures	67

Item 5:	Other Information	67

Item 6:	Exhibits	68

SIGNATURES		69

KEARNY FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(In Thousands, Except Share and Per Share Data)

	March 31,			June 30,
	2021			2020
	(Unaudited)
Assets
Cash and amounts due from depository institutions	$	20,502		$	20,391
Interest-bearing deposits in other banks		88,489			160,576
Cash and cash equivalents		108,991			180,967
Investment securities available for sale, at fair value (amortized cost $1,777,316), net of allowance for credit losses of $0 at March 31, 2021		1,778,970			1,385,703
Investment securities held to maturity (fair value $28,408 and $34,069), respectively, net of allowance for credit losses of $0 at March 31, 2021		27,168			32,556
Loans held-for-sale		5,172			20,789
Loans receivable		4,798,239			4,498,397
Less: allowance for credit losses on loans		(63,762	)		(37,327	)
Net loans receivable		4,734,477			4,461,070
Premises and equipment		60,360			57,389
Federal Home Loan Bank ("FHLB") of New York stock		45,578			58,654
Accrued interest receivable		20,562			17,373
Goodwill		210,895			210,895
Core deposit intangibles		3,888			3,995
Bank owned life insurance		281,765			262,380
Deferred income tax assets, net		32,230			25,480
Other real estate owned		178			178
Other assets		47,760			40,746
Total Assets	$	7,357,994		$	6,758,175

Liabilities and Stockholders' Equity
Liabilities
Deposits:
Non-interest-bearing	$	545,746		$	419,138
Interest-bearing		4,828,706			4,011,144
Total deposits		5,374,452			4,430,282
Borrowings		865,763			1,173,165
Advance payments by borrowers for taxes		15,300			16,569
Other liabilities		38,667			53,982
Total Liabilities		6,294,182			5,673,998

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; 81,942,973 shares and 83,663,192 shares issued and outstanding, respectively		820			837
Paid-in capital		691,280			722,871
Retained earnings		397,594			387,911
Unearned employee stock ownership plan shares; 2,809,766 shares and 2,960,289 shares, respectively		(27,239	)		(28,699	)
Accumulated other comprehensive income		1,357			1,257
Total Stockholders' Equity		1,063,812			1,084,177
Total Liabilities and Stockholders' Equity	$	7,357,994		$	6,758,175

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,
	2021		2020		2021		2020
Interest Income
Loans	$	49,307	$	46,603	$	150,953	$	140,811
Taxable investment securities		7,891		10,526		22,934		29,552
Tax-exempt investment securities		410		547		1,297

Price	13.24	EPS	0
Shares	87	P/E	27
MCap	1,149	P/FCF	44
Net Debt	-129	EBIT	144
TEV	1,020	TEV/EBIT	7
TTM 2019-09-30, in MM, except price, ratios

10-Q	2021-03-31	Filed 2021-05-07
10-Q	2020-12-31	Filed 2021-02-08
10-Q	2020-09-30	Filed 2020-11-06
10-K	2020-06-30	Filed 2020-08-28
10-Q	2020-03-31	Filed 2020-05-08
10-Q	2019-12-31	Filed 2020-02-07
10-Q	2019-09-30	Filed 2019-11-08
10-K	2019-06-30	Filed 2019-08-28
10-Q	2019-03-31	Filed 2019-05-09
10-Q	2018-12-31	Filed 2019-02-08
10-Q	2018-09-30	Filed 2018-11-08
10-K	2018-06-30	Filed 2018-08-28
10-Q	2018-03-31	Filed 2018-05-09
10-Q	2017-12-31	Filed 2018-02-08
10-Q	2017-09-30	Filed 2017-11-08
10-K	2017-06-30	Filed 2017-08-29
10-Q	2017-03-31	Filed 2017-05-10
10-Q	2016-12-31	Filed 2017-02-08
10-Q	2016-09-30	Filed 2016-11-09
10-K	2016-06-30	Filed 2016-08-29
10-Q	2016-03-31	Filed 2016-05-10
10-Q	2015-12-31	Filed 2016-02-09
10-Q	2015-09-30	Filed 2015-11-09
10-K	2015-06-30	Filed 2015-09-14

8-K	2020-11-18
8-K	2020-11-10
8-K	2020-10-29
8-K	2020-10-22
8-K	2020-10-22
8-K	2020-10-19
8-K	2020-10-19
8-K	2020-08-19
8-K	2020-07-30
8-K	2020-07-10
8-K	2020-07-01
8-K	2020-06-24
8-K	2020-05-28
8-K	2020-05-20
8-K	2020-05-20
8-K	2020-04-29
8-K	2020-02-19
8-K	2020-01-30
8-K	2019-12-18
8-K	2019-11-20
8-K	2019-11-14
8-K	2019-10-30
8-K	2019-10-24
8-K	2019-10-24
8-K	2019-08-21
8-K	2019-07-30
8-K	2019-05-15
8-K	2019-04-29
8-K	2019-03-13
8-K	2019-02-25
8-K	2019-02-20
8-K	2019-01-30
8-K	2018-11-14
8-K	2018-10-30
8-K	2018-10-25
8-K	2018-10-25
8-K	2018-09-19
8-K	2018-08-29
8-K	2018-08-15
8-K	2018-07-30
8-K	2018-06-20
8-K	2018-05-23
8-K	2018-04-27
8-K	2018-04-02
8-K	2018-03-23
8-K	2018-03-01
8-K	2018-02-21
8-K	2018-02-16
8-K	2018-01-30

EX-31.1	krny-ex311_8.htm
EX-31.2	krny-ex312_6.htm
EX-32.1	krny-ex321_7.htm
EX-32.2	krny-ex322_9.htm

KRNY 10Q Quarterly Report

Kearny Financial Corp. Earnings 2021-03-31