Kearny Financial Corp. Announces Third Quarter Fiscal 2022 Results and Declaration of Cash Dividend

Kearny Bank

FAIRFIELD, N.J., April 28, 2022 (GLOBE NEWSWIRE) -- Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), reported net income for the quarter ended March 31, 2022 of $17.7 million, or $0.25 per diluted share, compared to $18.8 million, or $0.26 per diluted share, for the quarter ended December 31, 2021.

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.11 per share, payable on May 25, 2022 to stockholders of record as of May 11, 2022.

Craig L. Montanaro, President and Chief Executive Officer, commented, “This quarter was highlighted by outstanding core growth on both sides of the balance sheet as total loans increased $176.8 million, or 14.8% annualized, and core non-maturity deposits increased $66.2 million or 6.8% annualized. While much of the earnings benefit of this growth will not begin to be recognized until the quarter ended June 30, I am very pleased with our performance and the ongoing strength of our commercial loan pipeline, which totaled $1.5 billion at quarter end.”

Regarding the macroeconomic and geopolitical environment, Mr. Montanaro noted, “During the quarter, intermediate and long-term interest rates increased at a rapid pace. At the same time, inflation, supply chain and geopolitical risks cast a shadow over the U.S. economic outlook. Despite these risks, I believe that our core business prospects remain strong and our markets ripe with opportunity. As we head into the final quarter of our fiscal year, and beyond, we remain steadfast in the execution of our strategic plan, with its focus on the continued growth of long-term shareholder value.”

Balance Sheet

• Loans receivable increased $176.8 million to $5.00 billion at March 31, 2022, from $4.83 billion at December 31, 2021, reflecting growth of $68.6 million in multi-family mortgage loans, $59.5 million in nonresidential mortgage loans and $50.7 million in one- to four-family residential mortgage loans.

• Deposits increased $74.6 million to $5.53 billion at March 31, 2022, from $5.45 billion at December 31, 2021, primarily reflecting growth of $66.2 million in core non-maturity deposits.

• Investment securities increased $3.7 million to $1.65 billion, or 22.3% of total assets, at March 31, 2022, from $1.64 billion, or 22.9% of total assets, at December 31, 2021.

• Borrowings increased $165.1 million to $851.2 million, or 11.5% of total assets, at March 31, 2022, from $686.1 million, or 9.5% of total assets, at December 31, 2021.

Earnings

Performance Highlights

• Return on average assets was 0.98% for the quarter ended March 31, 2022 compared to 1.05% for the quarter ended December 31, 2021.

• Return on average equity was 7.24% and 7.46% for the quarters ended March 31, 2022 and December 31, 2021, respectively. Return on average tangible equity was 9.27% and 9.49% for those same comparative periods.

Net Interest Income and Net Interest Margin

• Net interest margin contracted seven basis points to 2.89% for the quarter ended March 31, 2022, from 2.96% for the quarter ended December 31, 2021. The decrease in net interest margin was due largely to a reduction in yield on earning assets, partially offset by a reduction in cost of interest-bearing liabilities. The reduction in yield on earning assets was partly attributable to declines in purchase accounting accretion and loan prepayment penalty income.

• Net interest income decreased $960,000 to $47.7 million for the quarter ended March 31, 2022, from $48.7 million for the quarter ended December 31, 2021. Included in net interest income for the quarters ended March 31, 2022 and December 31, 2021, respectively, was purchase accounting accretion of $1.9 million and $2.6 million, and loan prepayment penalty income of $1.3 million and $1.5 million.

Non-Interest Income

• Gain on sale of loans decreased $594,000 to $376,000 for the quarter ended March 31, 2022, from $970,000 for the quarter ended December 31, 2021. This decrease was largely attributable to the decrease in volume of loans sold driven by seasonal fluctuations in residential real estate activity and increases in market interest rates.

• Included in other income for the quarter ended December 31, 2021 was a non-recurring gain of $356,000 attributable to the sale of one property recognized in conjunction with the Bank’s ongoing retail branch consolidation efforts. No such gain was recorded in the quarter ended March 31, 2022.

Non-Interest Expense

• Non-interest expense increased $953,000 to $30.6 million for the quarter ended March 31, 2022, from $29.7 million for the quarter ended December 31, 2021. Salary and benefit expense increased $1.1 million attributable largely to increases of $433,000 in payroll taxes associated with the start of the new calendar year and $354,000 in incentive payments tied to increased loan origination volume, as well as $120,000 of non-recurring incentive payments to front-line retail personnel.

• The efficiency and non-interest expense ratios were 60.14% and 1.70%, respectively, for the quarter ended March 31, 2022, as compared to 56.17% and 1.65%, respectively, for the quarter ended December 31, 2021.

Income Taxes

• Income tax expense decreased $279,000 to $6.5 million for the quarter ended March 31, 2022 compared to $6.8 million for the quarter ended December 31, 2021, resulting in effective tax rates of 26.9% and 26.6%, respectively.

Asset Quality

• The balance of non-performing assets increased $8.2 million to $81.0 million, or 1.10% of total assets, at March 31, 2022, from $72.8 million, or 1.01% of total assets, at December 31, 2021. The increase was largely due to one $8.9 million loan that was placed on non-accrual during the quarter ended March 31, 2022.

• Net charge-offs totaled $436,000, or 0.04% of average loans, on an annualized basis, for the quarter ended March 31, 2022, compared to $1.1 million, or 0.10%, for the quarter ended December 31, 2021.

• For the quarter ended March 31, 2022, the Company recorded a provision for credit losses reversal of $3.9 million, compared to a provision for credit losses reversal of $2.4 million for the quarter ended December 31, 2021. The reversal for the quarter ended March 31, 2022 was primarily driven by continued improvement in the Company’s economic forecast. In addition, there was a net reduction in reserves on individually evaluated loans primarily related to improved collateral values.

• The ACL decreased $4.4 million to $43.9 million, or 0.87% of total loans, at March 31, 2022, from $48.2 million, or 0.99% of total loans, at December 31, 2021.

Capital

• For the quarter ended March 31, 2022, book value per share decreased $0.18 to $13.37 and tangible book value per share decreased $0.26 to $10.38. These decreases were driven by a $24.5 million decline in accumulated other comprehensive (loss) income due primarily to a decrease in the fair value of the Company’s available for sale securities, partially offset by an increase in the fair value of the Company’s derivatives portfolio.

• During the quarter ended March 31, 2022, the Company repurchased 2,019,625 shares of common stock at a cost of $27.0 million, or $13.35 per share. Through March 31, 2022, the Company repurchased a total of 4,522,301 shares, or 59.5% of the shares authorized for repurchase under the current repurchase program, at a total cost of $59.6 million or $13.18 per share.

• At March 31, 2022, the Company’s tangible equity to tangible assets ratio equaled 10.3% while 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.

Statements contained in this news release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company does not undertake and specifically disclaims any obligation to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.

In addition, the COVID-19 pandemic has had, and may continue to have, an adverse impact on the Company, its clients and the communities it serves. Given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 pandemic on our business. The extent of such impact will depend on future developments, which are highly uncertain, including whether the coronavirus can continue to be controlled and abated and if the economy is able to remain open. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations: the demand for our products and services may decline, making it difficult to grow assets and income; if the economy is unable to substantially remain open, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase; our allowance for credit losses may increase if borrowers experience financial difficulties, which will adversely affect our net income; the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; due to a decline in our stock price or other factors, goodwill may become impaired and be required to be written down; and our cyber security risks are increased as the result of an increase in the number of employees working remotely.

Category: Earnings

Linked-Quarter Comparative Financial Analysis

Kearny Financial Corp.
Consolidated Balance Sheets
(Unaudited)
(Dollars and Shares in Thousands,	March 31,			December 31,			Variance			Variance
Except Per Share Data)	2022			2021			or Change			or Change Pct.
Assets
Cash and cash equivalents	$	62,379		$	60,452		$	1,927		3.2	%
Securities available for sale		1,526,086			1,591,066			(64,980	)	-4.1	%
Securities held to maturity		121,853			53,142			68,711		129.3	%
Loans held-for-sale		2,822			12,549			(9,727	)	-77.5	%
Loans receivable		5,003,201			4,826,404			176,797		3.7	%
Less: allowance for credit losses on loans		(43,860	)		(48,216	)		4,356		-9.0	%
Net loans receivable		4,959,341			4,778,188			181,153		3.8	%
Premises and equipment		53,727			54,067			(340	)	-0.6	%
Federal Home Loan Bank stock		30,997			36,622			(5,625	)	-15.4	%
Accrued interest receivable		19,517			18,495			1,022		5.5	%
Goodwill		210,895			210,895			-		0.0	%
Core deposit intangible		3,166			3,344			(178	)	-5.3	%
Bank owned life insurance		287,644			286,433			1,211		0.4	%
Deferred income taxes, net		34,349			25,709			8,640		33.6	%
Other real estate owned		401			658			(257	)	-39.1	%
Other assets		76,714			54,603			22,111		40.5	%
Total assets	$	7,389,891		$	7,186,223		$	203,668		2.8	%
Liabilities
Deposits:
Non-interest-bearing		621,954		$	604,805		$	17,149		2.8	%
Interest-bearing		4,906,708			4,849,220			57,488		1.2	%
Total deposits		5,528,662			5,454,025			74,637		1.4	%
Borrowings		851,220			686,105			165,115		24.1	%
Advance payments by borrowers for taxes		16,979			16,772			207		1.2	%
Other liabilities		37,861			33,851			4,010		11.8	%
Total liabilities		6,434,722			6,190,753			243,969		3.9	%
Stockholders' Equity
Common stock		714			735			(21	)	-2.9	%
Paid-in capital		561,176			587,392			(26,216	)	-4.5	%
Retained earnings		441,522			431,549			9,973		2.3	%
Unearned ESOP shares		(25,294	)		(25,780	)		486		-1.9	%
Accumulated other comprehensive (loss) income		(22,949	)		1,574			(24,523	)	-1558.0	%
Total stockholders' equity		955,169			995,470			(40,301	)	-4.0	%
Total liabilities and stockholders' equity	$	7,389,891		$	7,186,223		$	203,668		2.8	%
Consolidated capital ratios
Equity to assets		12.93	%		13.85	%		-0.92	%
Tangible equity to tangible assets (1)		10.33	%		11.21	%		-0.88	%
Share data
Outstanding shares		71,424			73,453			(2,029	)	-2.8	%
Book value per share	$	13.37		$	13.55		$	(0.18	)	-1.3	%
Tangible book value per share (2)	$	10.38		$	10.64		$	(0.26	)	-2.4	%

________________________
(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.

Kearny Financial Corp.
Consolidated Statements of Income
(Unaudited)
	Three Months Ended
(Dollars and Shares in Thousands,	March 31,			December 31,			Variance			Variance
Except Per Share Data)	2022			2021			or Change			or Change Pct.
Interest income
Loans	$	45,846		$	47,575		$	(1,729	)	-3.6	%
Taxable investment securities		8,024			7,595			429		5.6	%
Tax-exempt investment securities		316			327			(11	)	-3.4	%
Other interest-earning assets		415			415			-		0.0	%
Total interest income		54,601			55,912			(1,311	)	-2.3	%
Interest expense
Deposits		3,565			3,663			(98	)	-2.7	%
Borrowings		3,309			3,562			(253	)	-7.1	%
Total interest expense		6,874			7,225			(351	)	-4.9	%
Net interest income		47,727			48,687			(960	)	-2.0	%
Reversal of provision for credit losses		(3,920	)		(2,420	)		(1,500	)	62.0	%
Net interest income after reversal of provision for credit losses		51,647			51,107			540		1.1	%
Non-interest income
Fees and service charges		617			698			(81	)	-11.6	%
Gain on sale and call of securities		3			-			3		0.0	%
Gain on sale of loans		376			970			(594	)	-61.2	%
Gain on sale of other real estate owned		14			-			14		0.0	%
Income from bank owned life insurance		1,511			1,562			(51	)	-3.3	%
Electronic banking fees and charges		432			421			11		2.6	%
Other income		238			482			(244	)	-50.6	%
Total non-interest income		3,191			4,133			(942	)	-22.8	%
Non-interest expense
Salaries and employee benefits		19,184			18,096			1,088		6.0	%
Net occupancy expense of premises		3,223			3,156			67		2.1	%
Equipment and systems		3,822			3,723			99		2.7	%
Advertising and marketing		516			448			68		15.2	%
Federal deposit insurance premium		480			721			(241	)	-33.4	%
Directors' compensation		340			649			(309	)	-47.6	%
Other expense		3,058			2,877			181		6.3	%
Total non-interest expense		30,623			29,670			953		3.2	%
Income before income taxes		24,215			25,570			(1,355	)	-5.3	%
Income taxes		6,522			6,801			(279	)	-4.1	%
Net income	$	17,693		$	18,769		$	(1,076	)	-5.7	%
Net income per common share (EPS)
Basic	$	0.25		$	0.26		$	(0.01	)
Diluted	$	0.25		$	0.26		$	(0.01	)
Dividends declared
Cash dividends declared per common share	$	0.11		$	0.11		$	-
Cash dividends declared	$	7,720		$	7,921		$	(201	)
Dividend payout ratio		43.6	%		42.2	%		1.4	%
Weighted average number of common shares outstanding
Basic		69,790			72,011			(2,221	)
Diluted		69,817			72,037			(2,220	)

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)
	Three Months Ended
	March 31,			December 31,			Variance			Variance
(Dollars in Thousands)	2022			2021			or Change			or Change Pct.
Assets
Interest-earning assets:
Loans receivable, including loans held for sale	$	4,850,236		$	4,822,959		$	27,277		0.6	%
Taxable investment securities		1,620,996			1,610,395			10,601		0.7	%
Tax-exempt investment securities		55,390			57,686			(2,296	)	-4.0	%
Other interest-earning assets		79,644			77,811			1,833		2.4	%
Total interest-earning assets		6,606,266			6,568,851			37,415		0.6	%
Non-interest-earning assets		601,684			611,390			(9,706	)	-1.6	%
Total assets	$	7,207,950		$	7,180,241		$	27,709		0.4	%
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand	$	2,133,977		$	2,027,021		$	106,956		5.3	%
Savings		1,088,351			1,086,903			1,448		0.1	%
Certificates of deposit		1,650,048			1,693,423			(43,375	)	-2.6	%
Total interest-bearing deposits		4,872,376			4,807,347			65,029		1.4	%
Borrowings:
Federal Home Loan Bank advances		632,811			666,029			(33,218	)	-5.0	%
Other borrowings		51,667			26,033			25,634		98.5	%
Total borrowings		684,478			692,062			(7,584	)	-1.1	%
Total interest-bearing liabilities		5,556,854			5,499,409			57,445		1.0	%
Non-interest-bearing liabilities:
Non-interest-bearing deposits		624,152			624,200			(48	)	0.0	%
Other non-interest-bearing liabilities		49,455			50,870			(1,415	)	-2.8	%
Total non-interest-bearing liabilities		673,607			675,070			(1,463	)	-0.2	%
Total liabilities		6,230,461			6,174,479			55,982		0.9	%
Stockholders' equity		977,489			1,005,762			(28,273	)	-2.8	%
Total liabilities and stockholders' equity	$	7,207,950		$	7,180,241		$	27,709		0.4	%
Average interest-earning assets to average interest-bearing liabilities		118.89	%		119.45	%		-0.56	%	-0.5	%

Kearny Financial Corp.
Performance Ratio Highlights
(Unaudited)
	Three Months Ended
	March 31,		December 31,		Variance
	2022		2021		or Change
Average yield on interest-earning assets:
Loans receivable, including loans held for sale	3.78	%	3.95	%	-0.17	%
Taxable investment securities	1.98	%	1.89	%	0.09	%
Tax-exempt investment securities (1)	2.28	%	2.26	%	0.02	%
Other interest-earning assets	2.08	%	2.13	%	-0.05	%
Total interest-earning assets	3.31	%	3.40	%	-0.09	%
Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand	0.22	%	0.22	%	0.00	%
Savings	0.10	%	0.11	%	-0.01	%
Certificates of deposit	0.52	%	0.53	%	-0.01	%
Total interest-bearing deposits	0.29	%	0.30	%	-0.01	%
Borrowings:
Federal Home Loan Bank advances	2.08	%	2.14	%	-0.06	%
Other borrowings	0.17	%	0.09	%	0.08	%
Total borrowings	1.93	%	2.06	%	-0.13	%
Total interest-bearing liabilities	0.49	%	0.53	%	-0.04	%
Interest rate spread (2)	2.82	%	2.87	%	-0.05	%
Net interest margin (3)	2.89	%	2.96	%	-0.07	%
Non-interest income to average assets (annualized)	0.18	%	0.23	%	-0.05	%
Non-interest expense to average assets (annualized)	1.70	%	1.65	%	0.05	%
Efficiency ratio (4)	60.14	%	56.17	%	3.97	%
Return on average assets (annualized)	0.98	%	1.05	%	-0.07	%
Return on average equity (annualized)	7.24	%	7.46	%	-0.22	%
Return on average tangible equity (annualized) (5)	9.27	%	9.49	%	-0.22	%

________________________
(1)	The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.
(2)	Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.
(3)	Net interest income divided by average interest-earning assets.
(4)	Non-interest expense divided by the sum of net interest income and non-interest income.
(5)	Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets.

Five-Quarter Financial Trend Analysis

Consolidated Balance Sheets	At
(Dollars and Shares in Thousands, Except Per Share Data)	March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
	(Unaudited)			(Unaudited)			(Unaudited)			(Audited)			(Unaudited)
Assets
Cash and cash equivalents	$	62,379		$	60,452		$	54,070		$	67,855		$	108,991
Securities available for sale		1,526,086			1,591,066			1,651,156			1,676,864			1,778,970
Securities held to maturity		121,853			53,142			37,497			38,138			27,168
Loans held-for-sale		2,822			12,549			12,884			16,492			5,172
Loans receivable		5,003,201			4,826,404			4,789,339			4,851,394			4,798,239
Less: allowance for credit losses on loans		(43,860	)		(48,216	)		(51,785	)		(58,165	)		(63,762	)
Net loans receivable		4,959,341			4,778,188			4,737,554			4,793,229			4,734,477
Premises and equipment		53,727			54,067			55,236			56,338			60,360
Federal Home Loan Bank stock		30,997			36,622			36,615			36,615			45,578
Accrued interest receivable		19,517			18,495			19,541			19,362			20,562
Goodwill		210,895			210,895			210,895			210,895			210,895
Core deposit intangible		3,166			3,344			3,524			3,705			3,888
Bank owned life insurance		287,644			286,433			284,871			283,310			281,765
Deferred income taxes, net		34,349			25,709			27,771			29,323			32,230
Other real estate owned		401			658			178			178			178
Other assets		76,714			54,603			51,896			51,431			47,760
Total assets	$	7,389,891		$	7,186,223		$	7,183,688		$	7,283,735		$	7,357,994
Liabilities
Deposits:
Non-interest-bearing	$	621,954		$	604,805		$	631,344		$	593,718		$	545,746
Interest-bearing		4,906,708			4,849,220			4,763,795			4,891,588			4,828,706
Total deposits		5,528,662			5,454,025			5,395,139			5,485,306			5,374,452
Borrowings		851,220			686,105			720,990			685,876			865,763
Advance payments by borrowers for taxes		16,979			16,772			16,222			15,752			15,300
Other liabilities		37,861			33,851			36,914			53,857			38,667
Total liabilities		6,434,722			6,190,753			6,169,265			6,240,791			6,294,182
Stockholders' Equity
Common stock		714			735			758			790			820
Paid-in capital		561,176			587,392			616,894			654,396			691,280
Retained earnings		441,522			431,549			420,701			408,367			397,594
Unearned ESOP shares		(25,294	)		(25,780	)		(26,266	)		(26,753	)		(27,239	)
Accumulated other comprehensive (loss) income		(22,949	)		1,574			2,336			6,144			1,357
Total stockholders' equity		955,169			995,470			1,014,423			1,042,944			1,063,812
Total liabilities and stockholders' equity	$	7,389,891		$	7,186,223		$	7,183,688		$	7,283,735		$	7,357,994
Consolidated capital ratios
Equity to assets		12.93	%		13.85	%		14.12	%		14.32	%		14.46	%
Tangible equity to tangible assets (1)		10.33	%		11.21	%		11.48	%		11.72	%		11.89	%
Share data
Outstanding shares		71,424			73,453			75,800			78,965			81,943
Book value per share	$	13.37		$	13.55		$	13.38		$	13.21		$	12.98
Tangible book value per share (2)	$	10.38		$	10.64		$	10.55		$	10.49		$	10.36

________________________
(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.

	At
Supplemental Balance Sheet Highlights (Dollars in Thousands, Unaudited)	March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
Loan portfolio composition:
Commercial loans:
Multi-family mortgage	$	2,076,003		$	2,007,431		$	1,978,681		$	2,039,260		$	2,055,396
Nonresidential mortgage		1,085,988			1,026,447			1,023,391			1,079,444			1,110,765
Commercial business		169,551			180,429			169,392			168,951			183,181
Construction		121,137			110,703			112,226			93,804			95,533
Total commercial loans		3,452,679			3,325,010			3,283,690			3,381,459			3,444,875
One- to four-family residential mortgage		1,527,980			1,477,267			1,483,106			1,447,721			1,323,485
Consumer loans:
Home equity loans		41,501			43,934			44,912			47,871			59,721
Other consumer		2,755			3,040			3,020			3,259			3,445
Total consumer loans		44,256			46,974			47,932			51,130			63,166
Total loans, excluding yield adjustments		5,024,915			4,849,251			4,814,728			4,880,310			4,831,526
Unaccreted yield adjustments		(21,714	)		(22,847	)		(25,389	)		(28,916	)		(33,287	)
Loans receivable, net of yield adjustments		5,003,201			4,826,404			4,789,339			4,851,394			4,798,239
Less: allowance for credit losses on loans		(43,860	)		(48,216	)		(51,785	)		(58,165	)		(63,762	)
Net loans receivable	$	4,959,341		$	4,778,188		$	4,737,554		$	4,793,229		$	4,734,477
Loan portfolio allocation:
Commercial loans:
Multi-family mortgage		41.3	%		41.4	%		41.1	%		41.8	%		42.5	%
Nonresidential mortgage		21.6	%		21.2	%		21.3	%		22.1	%		23.0	%
Commercial business		3.4	%		3.7	%		3.5	%		3.5	%		3.8	%
Construction		2.4	%		2.3	%		2.3	%		1.9	%		2.0	%
Total commercial loans		68.7	%		68.6	%		68.2	%		69.3	%		71.3	%
One- to four-family residential mortgage		30.4	%		30.5	%		30.8	%		29.7	%		27.4	%
Consumer loans:
Home equity loans		0.8	%		0.9	%		0.9	%		0.9	%		1.2	%
Other consumer		0.1	%		0.0	%		0.1	%		0.1	%		0.1	%
Total consumer loans		0.9	%		0.9	%		1.0	%		1.0	%		1.3	%
Total loans, excluding yield adjustments		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Asset quality:
Nonperforming assets:
Accruing loans - 90 days and over past due	$	-		$	-		$	-		$	-		$	2
Nonaccrual loans		80,595			72,138			72,945			79,767			71,416
Total nonperforming loans		80,595			72,138			72,945			79,767			71,418
Other real estate owned		401			658			178			178			178
Total nonperforming assets	$	80,996		$	72,796		$	73,123		$	79,945		$	71,596
Nonperforming loans (% total loans)		1.61	%		1.49	%		1.52	%		1.64	%		1.49	%
Nonperforming assets (% total assets)		1.10	%		1.01	%		1.02	%		1.10	%		0.97	%
Allowance for credit losses on loans (ACL):
ACL to total loans		0.87	%		0.99	%		1.08	%		1.19	%		1.32	%
ACL to nonperforming loans		54.42	%		66.84	%		70.99	%		72.92	%		89.28	%
Net charge-offs	$	436		$	1,149		$	980		$	656		$	750
Average net charge-off rate (annualized)		0.04	%		0.10	%		0.08	%		0.05	%		0.06	%

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Supplemental Balance Sheet Highlights (Dollars in Thousands, Unaudited)

March 31, 2022

December 31, 2021

September 30, 2021

June 30, 2021

March 31, 2021

Funding by type:

Deposits: