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Kearny Financial Corp. Reports Second Quarter 2019 Operating Results

FAIRFIELD, N.J., Jan. 30, 2019 (GLOBE NEWSWIRE) -- 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, 2018 of $10.8 million, or $0.12 per basic and diluted share as compared to net income of $11.1 million, or $0.12 per basic and diluted share, for the quarter ended September 30, 2018.

Craig L. Montanaro, President and Chief Executive Officer, commented, “We are pleased to report this quarter’s results which were highlighted by strong growth in loans and deposits, coupled with the continuation of our outstanding asset quality trends. Recognizing the challenges presented by the flat yield curve and rising funding costs, our strategic focus is on the execution of initiatives designed to grow our core deposit franchise and build long-term shareholder value. These initiatives include the acceleration of our efforts to increase digital channel adoption, the robust analysis of retail branch consolidation opportunities and the selective opening of low-cost, technology-driven retail locations in highly attractive markets. As a complement to these strategies we remain steadfast in our commitment to prudently manage capital as evidenced by the increase of our quarterly cash dividend and the repurchase of 3.8 million shares of common stock during the quarter.”

Balance Sheet Highlights

  • Total loans, excluding loans held for sale and the allowance for loan losses, increased by $92.9 million to $4.75 billion, or 70.9% of total assets, at December 31, 2018 from $4.66 billion, or 70.0% of total assets, at September 30, 2018. Commercial mortgage loans comprised $62.9 million of this increase whose aggregate balances represented 68.9% of total loans at December 31, 2018.

  • Total deposits increased by $218.6 million to $4.17 billion at December 31, 2018, from $3.95 billion at September 30, 2018. The net increase in deposits reflected increases of $85.7 million and $132.9 million in retail and wholesale deposits, respectively.

  • Total borrowings decreased by $108.9 million to $1.31 billion at December 31, 2018, from $1.42 billion at September 30, 2018. The net decrease in borrowings reflected the maturity of $69.5 million in long-term Federal Home Loan Bank (“FHLB”) advances, a $60.0 million decrease in the balance of overnight borrowings and a $6.9 million decrease in depositor sweep account balances. These decreases were partially offset by the addition of a $27.0 million FHLB Community Investment Program (“CIP”) long-term advance during the period.

Earnings Highlights

  • Interest income totaled $60.0 million for the quarter ended December 31, 2018, an increase of $1.8 million or 3.1% from the quarter ended September 30, 2018. Despite this achievement, interest expense increased by $2.6 million between the same comparative periods resulting in an $831,000 decrease in net interest income to $39.3 million for the quarter ended December 31, 2018, from $40.2 million for the quarter ended September 30, 2018. 

  • The Company’s net interest margin decreased to 2.56% for the quarter ended December 31, 2018 from 2.68% for the quarter ended September 30, 2018, primarily driven by a 15 basis point increase in the cost of interest-bearing liabilities that was partially offset by a two basis point increase in the yield on earning assets.

The Company’s non-interest income continued to supplement and diversify its sources of revenue.

  • Fees and service charges increased by $85,000 to $1.3 million for the quarter ended December 31, 2018 compared to $1.2 million for the quarter ended September 30, 2018.
  • Aggregate loan sale gains totaled $101,000 for the quarter ended December 31, 2018 compared to $132,000 for the quarter ended September 30, 2018. The modest decrease in gains on sale of loans reflected a seasonal decline in the volume of loans sold between comparative periods.

The Company continued to evaluate and implement tactics and strategies designed to improve operating efficiency, make more effective use of its supporting infrastructure and manage its effective income tax rate.

  • Non-interest expense totaled $27.3 million for the quarter ended December 31, 2018, an increase of $813,000 from the quarter ended September 30, 2018. This increase was largely attributable to $659,000 of non-recurring expenses associated with the October 2018 conversion and integration of Clifton Savings Bank’s core processing system arising from the Company’s prior acquisition of Clifton Bancorp during fiscal 2018 and an increase of $210,000 in advertising and marketing expense.

  • The Company’s ratio of non-interest expense to average assets totaled 1.62% for the quarter ended December 31, 2018 compared to 1.61% for the prior quarter ended September 30, 2018. For those same comparative periods, the Company’s efficiency ratios were 63.9% and 61.0%, respectively. 

  • Income tax expense totaled $3.6 million for the quarter ended December 31, 2018 as compared to $3.7 million for the quarter ended September 30, 2018 resulting in an effective tax rate of 25.3% and 24.7%, respectively.

Collectively, these factors resulted in a modest decrease in net income for the quarter ended December 31, 2018 compared to the prior quarter ended September 30, 2018.

  • The Company’s return on average assets for the quarter ended December 31, 2018 totaled 0.64% compared to 0.68% for the quarter ended September 30, 2018. 

  • The Company’s return on average equity remained stable, totaling 3.55% for the quarters ended December 31, 2018 and September 30, 2018. 

Asset Quality Highlights

  • Asset quality remained strong throughout the quarter ended December 31, 2018. The outstanding balance of nonperforming loans totaled $20.8 million, or 0.44% of total loans, at December 31, 2018 as compared to $20.5 million, or 0.44% of total loans, at September 30, 2018. 

  • The allowance for loan losses increased to $33.5 million at December 31, 2018 from $32.7 million at September 30, 2018, resulting in a total loan coverage ratio, representing the balance of the allowance for loan losses as a percentage of total loans, excluding loans held for sale, of 0.70% and 0.69%, respectively. The total loan coverage ratio for both periods reflects the impact of purchase accounting which generally precludes acquired loan balances from being considered in the balance of the allowance for loan losses at the time of their acquisition.
  • The Company recognized net charge offs totaling approximately $176,000 for the quarter ended December 31, 2018, reflecting an annualized net charge off rate of 0.01% on the average balance of total loans for the period. By comparison, the Company’s net charge offs totaled approximately $234,000 for the quarter ended September 30, 2018, reflecting an annualized net charge off rate of 0.02%.

  • The Company’s provision for loan losses decreased by $1.1 million to $971,000 for the quarter ended December 31, 2018 compared to $2.1 million for the quarter ended September 30, 2018. The decrease in provision expense was largely attributable to the effects of comparatively lower growth during the quarter ended December 31, 2018 in the performing portion of the loan portfolio that is collectively evaluated for impairment.

Capital Highlights

  • The Company increased its regular quarterly cash dividend by $0.01 per share, from $0.04 per share during the quarter ended September 30, 2018, to $0.05 per share during the quarter ended December 31, 2018. In addition to the payment of its regular dividend, the Company paid a special dividend of $0.16 during the quarter ended September 30, 2018. The Company continually evaluates its dividend policies and practices in relation to its overall capital management and shareholder value objectives.
  • During the quarter ended December 31, 2018, the Company repurchased 3,827,925 shares of its common stock at a total cost of $50.2 million and at an average cost of $13.11 per share. Such shares were repurchased in conjunction with the Company’s third share repurchase program announced in April 2018, through which it authorized the repurchase of 10,238,557 shares, or 10% of its outstanding shares of common stock. Through December 31, 2018, the Company has repurchased a total of 8,480,985 shares, or 82.8% of the shares authorized for repurchase under this third program, at a total cost of $115.5 million and at an average cost of $13.62 per share.

  • The Company’s and Bank’s regulatory capital ratios at December 31, 2018 were well in excess of the levels required by federal banking regulators to be classified as “well-capitalized” under regulatory guidelines. 

The exhibits that follow this narrative begin with the presentation of the 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, 2018 compared to those for the prior linked-quarter ended September 30, 2018. 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. The exhibits conclude with the presentation of the Reconciliation of GAAP to Non-GAAP financial data included in this news release.

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.

   
   
Linked-Quarter Comparative Financial Analysis  
                         
Summary Balance Sheet At         Variance  
(Dollars and Shares in Thousands, December 31,   September 30,   Variance   or Change  
Except per Share Data, Unaudited) 2018   2018   or Change   Pct.  
Assets                        
Cash and cash equivalents $ 51,483   $ 44,486   $ 6,997     15.7 %
Securities available for sale   666,602     706,240     (39,638 )   -5.6 %
Securities held to maturity   598,318     602,838     (4,520 )   -0.7 %
Loans held-for-sale   1,001     1,503     (502 )   -33.4 %
Loans receivable, including yield adjustments   4,753,392     4,660,507     92,885     2.0 %
Less allowance for loan losses   (33,526 )   (32,731 )   (795 )   2.4 %
Net loans receivable   4,719,866     4,627,776     92,090     2.0 %
Premises and equipment   58,414     57,635     779     1.4 %
Federal Home Loan Bank stock   64,514     66,428     (1,914 )   -2.9 %
Accrued interest receivable   19,435     19,455     (20 )   -0.1 %
Goodwill   210,895     210,895     -     0.0 %
Core deposit intangible   5,743     6,018     (275 )   -4.6 %
Bank owned life insurance   253,009     251,410     1,599     0.6 %
Deferred income taxes, net   24,692     22,136     2,556     11.5 %
Other real estate owned   508     674     (166 )   -24.6 %
Other assets   27,960     38,717     (10,757 )   -27.8 %
Total assets $ 6,702,440   $ 6,656,211   $ 46,229     0.7 %
                         
Liabilities                        
Deposits $ 4,173,434   $ 3,954,821   $ 218,613     5.5 %
Borrowings   1,310,547     1,419,424     (108,877 )   -7.7 %
Advance payments by borrowers for taxes   17,201     10,687     6,514     61.0 %
Other liabilities   17,997     35,198     (17,201 )   -48.9 %
Total liabilities   5,519,179     5,420,130     99,049     1.8 %
                         
Stockholders' Equity                        
Common stock   938     978     (40 )   -4.1 %
Paid-in capital   848,145     897,551     (49,406 )   -5.5 %
Retained earnings   356,993     350,838     6,155     1.8 %
Unearned ESOP shares   (31,617 )   (32,104 )   487     -1.5 %
Accumulated other comprehensive income, net   8,802     18,818     (10,016 )   -53.2 %
Total stockholders' equity   1,183,261     1,236,081     (52,820 )   -4.3 %
Total liabilities and stockholders' equity $ 6,702,440   $ 6,656,211   $ 46,229     0.7 %
                         
Consolidated capital ratios                        
Equity to assets   17.65 %   18.57 %   -0.92 %      
Tangible equity to tangible assets   14.90 %   15.83 %   -0.93 %      
                         
Share data                        
Outstanding shares   93,772     97,754     (3,982 )   -4.1 %
Equity per share $ 12.62   $ 12.64   $ (0.02 )   -0.2 %
Tangible equity per share (1) $ 10.31   $ 10.43   $ (0.12 )   -1.2 %
                         
(1) Tangible equity 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, December 31,   September 30,   Variance   or Change  
Except per Share Data, Unaudited) 2018   2018   or Change   Pct.  
Interest income                        
Loans $ 49,015   $ 47,437   $ 1,578     3.3 %
Taxable investment securities   9,051     8,879     172     1.9 %
Tax-exempt investment securities   713     716     (3 )   -0.4 %
Other interest-earning assets   1,243     1,174     69     5.9 %
Total Interest Income   60,022     58,206     1,816     3.1 %
                         
Interest expense                        
Deposits   12,727     10,539     2,188     20.8 %
Borrowings   7,946     7,487     459     6.1 %
Total interest expense   20,673     18,026     2,647     14.7 %
Net interest income   39,349     40,180     (831 )   -2.1 %
Provision for loan losses   971     2,100     (1,129 )   -53.8 %
Net interest income after provision for loan losses   38,378     38,080     298     0.8 %
                         
Non-interest income                        
Fees and service charges   1,258     1,173     85     7.2 %
Gain on sale of loans   101     132     (31 )   -23.5 %
Gain (loss) on sale of other real estate owned   36     (50 )   86     -172.0 %
Income from bank owned life insurance   1,599     1,594     5     0.3 %
Electronic banking fees and charges   277     250     27     10.8 %
Miscellaneous   38     83     (45 )   -54.2 %
Total non-interest income   3,309     3,182     127     4.0 %
                         
Non-interest expense                        
Salaries and employee benefits   15,699     15,642     57     0.4 %
Net occupancy expense of premises   2,761     2,736     25     0.9 %
Equipment and systems   3,377     2,926     451     15.4 %
Advertising and marketing   787     577     210     36.4 %
Federal deposit insurance premium   421     465     (44 )   -9.5 %
Directors' compensation   746     758     (12 )   -1.6 %
Miscellaneous   3,479     3,353     126     3.8 %
Total non-interest expense   27,270     26,457     813     3.1 %
Income before income taxes   14,417     14,805     (388 )   -2.6 %
Income taxes   3,649     3,659     (10 )   -0.3 %
Net income $ 10,768   $ 11,146   $ (378 )   -3.4 %
                         
Net income per common share (EPS)                        
Basic $ 0.12   $ 0.12   $ -        
Diluted $ 0.12   $ 0.12   $ -        
                         
Dividends declared (1)                        
Cash dividends declared per common share $ 0.05   $ 0.20   $ (0.15 )      
Cash dividends declared $ 4,082   $ 19,404   $ (15,322 )      
Dividend payout ratio   37.9 %   174.1 %   -136.2 %      
                         
Weighted average number of common shares outstanding                        
Basic   92,434     95,127     (2,693 )      
Diluted   92,480     95,181     (2,701 )      
                         
(1) Dividends declared during the quarter ended September 30, 2018 include a $0.16 special dividend representing a supplemental distribution of net income to stockholders from the fiscal year ended June 30, 2018.
                         
                         
                         


  For the three months ended         Variance  
Average Balance Sheet Data December 31,   September 30,   Variance   or Change  
(Dollars in Thousands, Unaudited) 2018   2018   or Change   Pct.  
Assets                        
Interest-earning assets:                        
Loans receivable, including loans held for sale $ 4,758,587   $ 4,562,375   $ 196,212     4.3 %
Taxable investment securities   1,158,720     1,180,655     (21,935 )   -1.9 %
Tax-exempt investment securities   135,453     136,056     (603 )   -0.4 %
Other interest-earning assets   87,916     112,629     (24,713 )   -21.9 %
Total interest-earning assets   6,140,676     5,991,715     148,961     2.5 %
Non-interest-earning assets   587,921     596,006     (8,085 )   -1.4 %
  Total assets $ 6,728,597   $ 6,587,721   $ 140,876     2.1 %
                         
Liabilities and Stockholders' Equity                        
Interest-bearing liabilities:                        
Deposits:                        
Interest-bearing demand $ 792,989   $ 788,148   $ 4,841     0.6 %
Savings and club   743,676     747,743     (4,067 )   -0.5 %
Certificates of deposit   2,214,932     2,046,997     167,935     8.2 %
Total interest-bearing deposits   3,751,597     3,582,888     168,709     4.7 %
Borrowings:                        
Federal Home Loan Bank advances   1,293,470     1,350,113     (56,643 )   -4.2 %
Other borrowings   119,281     40,981     78,300     191.1 %
Total borrowings   1,412,751     1,391,094     21,657     1.6 %
Total interest-bearing liabilities   5,164,348     4,973,982     190,366     3.8 %
Non-interest-bearing liabilities:                        
Non-interest-bearing deposits   315,165     314,114     1,051     0.3 %
Other non-interest-bearing liabilities   37,374     43,533     (6,159 )   -14.1 %
Total non-interest-bearing liabilities   352,539     357,647     (5,108 )   -1.4 %
Total liabilities   5,516,887     5,331,629     185,258     3.5 %
Stockholders' equity   1,211,710     1,256,092     (44,382 )   -3.5 %
Total liabilities and stockholders' equity $ 6,728,597   $ 6,587,721   $ 140,876     2.1 %
                         
Average interest-earning assets to average interest-bearing liabilities   118.91 %   120.46 %   -1.56 %   -1.3 %
                         
                         
                         


   For the three months ended        
Performance Ratio Highlights December 31,   September 30,   Variance  
  2018   2018   or Change  
Average yield on interest-earning assets:                  
Loans receivable, including loans held for sale   4.12 %   4.16 %   -0.04 %
Taxable investment securities   3.12 %   3.01 %   0.11 %
Tax-exempt investment securities (1)   2.11 %   2.10 %   0.01 %
Other interest-earning assets   5.66 %   4.17 %   1.49 %
Total interest-earning assets   3.91 %   3.89 %   0.02 %
                   
Average cost of interest-bearing liabilities:                  
Deposits:                  
Interest-bearing demand   0.97 %   0.86 %   0.11 %
Savings and club   0.49 %   0.41 %   0.08 %
Certificates of deposit   1.79 %   1.58 %   0.21 %
Total interest-bearing deposits   1.36 %   1.18 %   0.18 %
Borrowings:                  
Federal Home Loan Bank advances   2.27 %   2.19 %   0.08 %
Other borrowings   1.99 %   0.94 %   1.05 %
Total borrowings   2.25 %   2.15 %   0.10 %
Total interest-bearing liabilities   1.60 %   1.45 %   0.15 %
                   
Interest rate spread (2)   2.31 %   2.44 %   -0.13 %
Net interest margin (3)   2.56 %   2.68 %   -0.12 %
                   
Non-interest income to average assets
 (annualized)
  0.20 %   0.19 %   0.01 %
Non-interest expense to average assets
 (annualized)
  1.62 %   1.61 %   0.01 %
                   
Efficiency ratio (4)   63.93 %   61.01 %   2.92 %
                   
Return on average assets (annualized)   0.64 %   0.68 %   -0.04 %
Return on average equity (annualized)   3.55 %   3.55 %   0.00 %
                   
(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.
 
 
 


Five-Quarter Financial Trend Analysis  
                               
Summary Balance Sheet At  
(Dollars and Shares in Thousands, December 31,   September 30,   June 30,   March 31,   December 31,  
Except Per Share Data, Unaudited) 2018   2018   2018   2018   2017  
Assets                              
Cash and cash equivalents $ 51,483   $ 44,486   $ 128,864   $ 38,283   $ 50,685  
Securities available for sale   666,602     706,240     725,085     684,771     637,671  
Securities held to maturity   598,318     602,838     589,730     459,380     471,452  
Loans held-for-sale   1,001     1,503     863     2,377     3,490  
Loans receivable, including yield adjustments   4,753,392     4,660,507     4,501,348     3,351,369     3,291,516  
Less allowance for loan losses   (33,526 )   (32,731 )   (30,865 )   (30,248 )   (30,066 )
Net loans receivable   4,719,866     4,627,776     4,470,483     3,321,121     3,261,450  
Premises and equipment   58,414     57,635     56,240     42,856     41,829  
Federal Home Loan Bank stock   64,514     66,428     59,004     39,112     39,113  
Accrued interest receivable   19,435     19,455     18,510     13,926     13,524  
Goodwill   210,895     210,895     210,895     108,591     108,591  
Core deposit intangible   5,743     6,018     6,295     206     233  
Bank owned life insurance   253,009     251,410     249,816     184,981     183,754  
Deferred income taxes, net   24,692     22,136     23,754     3,898     6,941  
Other real estate owned   508     674     725     1,094     1,693  
Other assets   27,960     38,717     39,610     33,104     23,421  
Total assets $ 6,702,440   $ 6,656,211   $ 6,579,874   $ 4,933,700   $ 4,843,847  
                               
Liabilities                              
Deposits   4,173,434   $ 3,954,821   $ 4,073,604   $ 3,067,102   $ 3,033,231  
Borrowings   1,310,547     1,419,424     1,198,646     852,009     798,864  
Advance payments by borrowers for taxes   17,201     10,687     18,088     8,969     8,511  
Other liabilities   17,997     35,198     20,788     14,419     13,968  
Total liabilities   5,519,179     5,420,130     5,311,126     3,942,499     3,854,574  
                               
Stockholders' Equity                              
Common stock   938     978     996     788     795  
Paid-in capital   848,145     897,551     922,711     653,045     662,093  
Retained earnings   356,993     350,838     359,096     355,270     353,536  
Unearned ESOP shares   (31,617 )   (32,104 )   (32,590 )   (33,076 )   (33,563 )
Accumulated other comprehensive income, net   8,802     18,818     18,535     15,174     6,412  
Total stockholders' equity   1,183,261     1,236,081     1,268,748     991,201     989,273  
Total liabilities and stockholders' equity $ 6,702,440   $ 6,656,211   $ 6,579,874   $ 4,933,700   $ 4,843,847  
                               
Consolidated capital ratios                              
Equity to assets   17.65 %   18.57 %   19.28 %   20.09 %   20.42 %
Tangible equity to tangible assets   14.90 %   15.83 %   16.53 %   18.29 %   18.59 %
                               
Share data                              
Outstanding shares   93,772     97,754     99,626     78,765     79,527  
Equity per share $ 12.62   $ 12.64   $ 12.74   $ 12.58   $ 12.44  
Tangible equity per share (1) $ 10.31   $ 10.43   $ 10.56   $ 11.20   $ 11.07  
                               
(1) Tangible equity equals total stockholders' equity reduced by goodwill and core deposit intangible assets.
                               
                               


   At  
Supplemental Balance Sheet Highlights December 31,   September 30,   June 30,   March 31,   December 31,  
(Dollars in Thousands, Unaudited) 2018   2018   2018   2018   2017  
Cash and cash equivalents                              
Cash and due from depository institutions $ 24,361   $ 21,973   $ 26,199   $ 18,229   $ 17,899  
Interest-bearing deposits in other banks   27,122     22,513     102,665     20,054     32,786  
Total cash and cash equivalents $ 51,483   $ 44,486   $ 128,864   $ 38,283   $ 50,685  
                               
Securities available for sale                              
Debt securities:                              
U.S. agency securities $ 3,942   $ 4,070   $ 4,411   $ 4,667   $ 4,810  
Municipal and state obligations   26,205     25,907     26,088     26,733     27,428  
Asset-backed securities   180,828     182,390     182,620     182,066     169,484  
Collateralized loan obligations   184,439     215,569     226,066     178,342     133,341  
Corporate bonds   144,692     147,811     147,594     142,202     142,397  
Trust preferred securities   3,726     3,794     3,783     8,485     8,494  
Debt securities available for sale   543,832     579,541     590,562     542,495     485,954  
                               
Mortgage-backed securities:                              
Collateralized mortgage obligations   23,019     23,097     24,292     25,601     27,187  
Residential pass-through securities   91,918     95,795     102,359     108,736     116,496  
Commercial pass-through securities   7,833     7,807     7,872     7,939     8,034  
Mortgage-backed securities   122,770     126,699     134,523     142,276     151,717  
Total securities available for sale $ 666,602   $ 706,240   $ 725,085   $ 684,771   $ 637,671  
                               
Securities held to maturity                              
Debt securities:                              
Municipal and state obligations $ 107,826   $ 109,061   $ 109,483   $ 98,011   $ 100,671  
Subordinated debt   56,255     46,275     46,294     30,000     25,000  
Debt securities held to maturity   164,081     155,336     155,777     128,011     125,671  
                               
Mortgage-backed securities:                              
Collateralized mortgage obligations   51,540     54,130     56,886     34,309     35,861  
Residential pass-through securities   182,335     190,812     200,622     151,605     160,487  
Commercial pass-through securities   200,362     202,560     176,445     145,455     149,433  
Mortgage-backed securities   434,237     447,502     433,953     331,369     345,781  
Total securities held to maturity $ 598,318   $ 602,838   $ 589,730   $ 459,380   $ 471,452  
                               
 Total securities $ 1,264,920   $ 1,309,078   $ 1,314,815   $ 1,144,151   $ 1,109,123  
                               
                               
                               


...
   At  
Supplemental Balance Sheet Highlights December 31,   September 30,   June 30,   March 31,   December 31,  
(Dollars in Thousands, Unaudited) 2018   2018   2018   2018   2017  
Loan portfolio composition:                              
Residential first mortgage loans $ 1,334,284   $ 1,303,249   $ 1,297,453   $ 563,807   $ 574,322  
Home equity loans and lines of credit   96,001     93,473     90,761     79,522     80,961  
Residential mortgage loans   1,430,285     1,396,722     1,388,214     643,329     655,283  
Multifamily mortgage loans   1,974,409     1,898,831     1,758,584     1,471,573     1,438,386  
Nonresidential and mixed use mortgage loans   1,302,583     1,315,279     1,302,961     1,113,385     1,069,254  
Commercial mortgage loans   3,276,992     3,214,110     3,061,545     2,584,958     2,507,640  
Commercial business loans   70,059     78,317     85,825     88,216     92,442  
Construction loans   28,405     26,581     23,271     22,963     22,205  
Account loans   3,310     3,133     3,283     3,038     2,996  
Other consumer loans   3,524     4,427     5,777     7,186     8,951  
Consumer loans   6,834     7,560     9,060     10,224     11,947  
Total loans, excluding yield adjustments   4,812,575     4,723,290     4,567,915     3,349,690     3,289,517  
Unamortized yield adjustments   (59,183 )   (62,783 )   (66,567 )   1,679     1,999  
Loans receivable, including yield adjustments   4,753,392     4,660,507     4,501,348     3,351,369     3,291,516  
Less allowance for loan losses   (33,526 )   (32,731 )   (30,865 )   (30,248 )   (30,066 )
Net loans receivable $ 4,719,866   $ 4,627,776   $ 4,470,483   $ 3,321,121   $ 3,261,450  
                               
Loan portfolio allocation:                              
Residential first mortgage loans   27.7 %   27.6 %   28.4 %   16.8 %   17.5 %
Home equity loans and lines of credit   2.0 %   2.0 %   2.0 %   2.4 %   2.5 %
Residential mortgage loans   29.7 %   29.6 %   30.4 %   19.2 %   20.0 %
Multifamily mortgage loans   41.0 %   40.2 %   38.5 %   43.9 %   43.7 %
Nonresidential and mixed use mortgage loans   27.1 %   27.8 %   28.5 %   33.2 %   32.5 %
Commercial mortgage loans   68.1 %   68.0 %   67.0 %   77.1 %   76.2 %
Commercial business loans   1.4 %   1.6 %   1.9 %   2.6 %   2.8 %
Construction loans   0.6 %   0.6 %   0.5 %   0.7 %   0.7 %
Account loans   0.1 %   0.1 %   0.1 %   0.1 %   0.1 %
Other consumer loans   0.1 %   0.1 %   0.1 %   0.3 %   0.2 %
Consumer loans   0.2 %   0.2 %   0.2 %   0.4 %   0.3 %
Total loans, excluding yield adjustments   100.0 %   100.0 %   100.0 %   100.0 %   100.0 %
                               
Asset quality:                              
Nonperforming assets: