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Kearny Financial Corp. Reports Third Quarter 2019 Operating Results and Retail Branch Consolidation

FAIRFIELD, N.J., April 29, 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 March 31, 2019 of $11.4 million, or $0.13 per basic and diluted share, as compared to net income of $10.8 million, or $0.12 per basic and diluted share, for the quarter ended December 31, 2018.

The Company concurrently announced the consolidation of seven of the Bank’s retail branches located in northern and central New Jersey as a part of its ongoing strategy to improve operating efficiency and enhance long-term shareholder value.  The Company considered several factors in identifying the locations to be consolidated including historical branch profitability, market demographic trajectory, geographic proximity to the consolidating branch and the expected impact on the Bank’s clients and communities served.  Completion of these consolidations is expected to occur during the quarter ended September 30, 2019, subject to regulatory approval.  The Company anticipates these consolidations to result in annualized pre-tax cost savings of at least $3.0 million, after recognition of associated one-time charges.

Craig L. Montanaro, President and Chief Executive Officer, commented, “We are very pleased to report another quarter of solid earnings performance, particularly in the face of the continuing challenges presented by the flat yield curve.  Our decision to consolidate certain branch locations, while representing meaningful cost savings, also reflects the recognition that the preferences of our clients are rapidly evolving towards a more omni-channel banking model.  As a result, our strategy remains focused on driving digital channel adoption and enhancing our suite of digital banking solutions to provide our clients with a frictionless experience through whichever channel is most convenient and appealing to them.”

Balance Sheet Highlights

  • Loans, excluding loans held for sale and the allowance for loan losses, decreased by $93.6 million to $4.66 billion, or 70.0% of total assets, at March 31, 2019 from $4.75 billion, or 70.9% of total assets, at December 31, 2018.  The decrease in loans was largely attributable to an elevated level of pre-payment activity in the commercial mortgage loan portfolio which outpaced loan origination volume during the period.

  • Deposits decreased by $35.9 million to $4.14 billion at March 31, 2019, from $4.17 billion at December 31, 2018.  The net decrease was attributable to a decline of $47.3 million in wholesale deposits that was partially offset by an increase of $11.4 million in retail deposits reflecting the Company’s ongoing efforts to reallocate its funding mix from wholesale to retail deposits.

  • Investment securities increased by $54.2 million to $1.32 billion at March 31, 2019 from $1.26 billion at December 31, 2018 as a portion of the cash flows from the loan portfolio were deployed into U.S. agency commercial mortgage-backed securities with similar yields to the loans that pre-paid during the period.

  • Borrowings increased by $15.7 million to $1.33 billion at March 31, 2019, from $1.31 billion at December 31, 2018.  The net increase in borrowings reflected a $20.2 million increase in depositor sweep account balances that was partially offset by the repayment of a $5.0 million long-term Federal Home Loan Bank (“FHLB”) advance that matured during the period. 

Earnings Highlights

  • Interest income decreased by $365,000 to $59.7 million for the quarter ended March 31, 2019 from $60.0 million for the quarter ended December 31, 2018 while interest expense increased by $346,000 to $21.0 million from $20.7 million between the same comparative periods.  Consequently, net interest income decreased by $711,000 to $38.6 million for the quarter ended March 31, 2019, from $39.3 million for the quarter ended December 31, 2018.

  • The Company’s interest rate spread decreased three basis points to 2.28% for the quarter ended March 31, 2019 from 2.31% for the quarter ended December 31, 2018.  The decrease in the interest rate spread primarily reflected a three basis point increase in the average cost of interest-bearing liabilities to 1.63% for the quarter ended March 31, 2019 from 1.60% for the quarter ended December 31, 2018 while the average yield on interest-earning assets remained stable at 3.91% for those same comparative periods.  The factors that contributed to the change in interest rate spread also contributed to a three basis point decrease in the Company’s net interest margin to 2.53% from 2.56%, for the same comparative periods.

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

  • Fees and service charges increased by $416,000, or 33.1%, to $1.7 million for the quarter ended March 31, 2019 compared to $1.3 million for the quarter ended December 31, 2018.  This increase was largely driven by pre-payment fee income on commercial real estate loans related to the elevated level of pre-payment activity noted above.
  • Aggregate loan sale gains increased by $50,000, or 49.5%, to $151,000 for the quarter ended March 31, 2019 as compared to $101,000 for the quarter ended December 31, 2018 largely reflecting an increase in the volume of loans sold.

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

  • Non-interest expense decreased by $499,000 to $26.8 million for the quarter ended March 31, 2019 compared to $27.3 million for the quarter ended December 31, 2018.  The decrease was largely attributable to various non-recurring expenses that were recognized during the quarter ended December 31, 2018 in conjunction with the October 2018 conversion of Clifton Savings Bank’s core processing system.  The decrease in non-interest expense also reflected a net decrease of $349,000 in salaries and employee benefit expense from $15.7 million for the quarter ended December 31, 2018 to $15.4 million for the quarter ended March 31, 2019 largely attributable to decreases in wages, overtime and employee bonus compensation, partially offset by an increase in employer payroll tax expense.  These decreases were partially offset by an increase in facilities occupancy expense which was primarily attributable to seasonal fluctuations in such expenses.

  • The Company’s ratio of non-interest expense to average assets totaled 1.60% for the quarter ended March 31, 2019 compared to 1.62% for the prior quarter ended December 31, 2018.  For those same comparative periods, the Company’s efficiency ratios were 63.3% and 63.9%, respectively. 

  • Income tax expense totaled $4.3 million for the quarter ended March 31, 2019 compared to $3.6 million for the quarter ended December 31, 2018 resulting in effective tax rates of 27.4% and 25.3%, respectively.

Collectively, these factors resulted in an increase of $649,000 in net income for the quarter ended March 31, 2019 compared to the prior quarter ended December 31, 2018.

  • The Company’s return on average assets for the quarter ended March 31, 2019 increased to 0.68% from 0.64% for the quarter ended December 31, 2018.

  • The Company’s return on average equity increased to 3.89% for the quarter ended March 31, 2019 from 3.55% for the quarter ended December 31, 2018 while the Company’s return on average tangible equity increased to 4.78% from 4.33% for the comparative periods.

Asset Quality Highlights

  • Asset quality remained strong throughout the quarter ended March 31, 2019.  The outstanding balance of nonperforming loans totaled $21.3 million, or 0.46% of total loans, at March 31, 2019 as compared to $20.8 million, or 0.44% of total loans, at December 31, 2018.

  • The allowance for loan losses decreased to $33.1 million at March 31, 2019 from $33.5 million at December 31, 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% for both comparative periods.  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 $242,000 for the quarter ended March 31, 2019, reflecting an annualized net charge off rate of 0.02% on the average balance of total loans for the period. By comparison, the Company’s net charge offs totaled approximately $176,000 for the quarter ended December 31, 2018, reflecting an annualized net charge off rate of 0.01%.

  • The Company recorded a loan loss provision reversal of $179,000 for the quarter ended March 31, 2019 as compared to a provision for loan loss expense of $971,000 for the quarter ended December 31, 2018.  The decrease in provision for loan loss was largely attributable to the net decrease during the quarter ended March 31, 2019 in the performing portion of the loan portfolio that was collectively evaluated for impairment.

Capital Highlights

  • The Company increased its regular quarterly cash dividend by $0.01 per share, to $0.06 per share during the quarter ended March 31, 2019, from $0.05 per share during the quarter ended December 31, 2018.  The Company continually evaluates its dividend policies and practices in relation to its overall capital management and shareholder value objectives.

  • In March 2019, the Company completed the repurchase of its shares of common stock under its third share repurchase program announced in April 2018 through which it authorized the repurchase of 10,238,557 shares, or 10%, of the Company’s outstanding shares.  The shares associated with this third program were repurchased at a total cost of $138.8 million and at an average cost of $13.55 per share.  Concurrently, the Company announced its fourth share repurchase program through which it authorized the repurchase of 9,218,324 shares, or 10%, of the Company’s outstanding shares as of that date.
  • During the quarter ended March 31, 2019, the Company repurchased 2,445,689 shares of its common stock at a total cost of $32.4 million and an average cost of $13.24 per share.  The shares of common stock repurchased during the period included 1,757,572 shares attributed to the completion of the Company’s third share repurchase program, as noted above.  Such shares were repurchased at a total cost of $23.3 million and an average cost of $13.24 per share.  The additional 688,117 shares repurchased during the period represented 7.5% of the total shares to be repurchased under the Company’s fourth share repurchase program, also noted above.  Such shares were repurchased at a total cost of $9.1 million and at an average cost of $13.24 per share.

  • The Company’s and Bank’s regulatory capital ratios at March 31, 2019 were 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 March 31, 2019 compared to those for the prior linked-quarter ended December 31, 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, March 31,   December 31,   Variance   or Change  
Except Per Share Data, Unaudited) 2019   2018   or Change   Pct.  
Assets                        
Cash and cash equivalents $ 54,160   $ 51,483   $ 2,677     5.2 %
Securities available for sale   726,920     666,602     60,318     9.0 %
Securities held to maturity   592,199     598,318     (6,119 )   -1.0 %
Loans held-for-sale   997     1,001     (4 )   -0.4 %
Loans receivable, including yield adjustments   4,659,804     4,753,392     (93,588 )   -2.0 %
Less allowance for loan losses   (33,105 )   (33,526 )   421     -1.3 %
Net loans receivable   4,626,699     4,719,866     (93,167 )   -2.0 %
Premises and equipment   58,274     58,414     (140 )   -0.2 %
Federal Home Loan Bank stock   64,288     64,514     (226 )   -0.4 %
Accrued interest receivable   20,326     19,435     891     4.6 %
Goodwill   210,895     210,895     -     0.0 %
Core deposit intangible   5,470     5,743     (273 )   -4.8 %
Bank owned life insurance   254,569     253,009     1,560     0.6 %
Deferred income taxes, net   24,182     24,692     (510 )   -2.1 %
Other real estate owned   209     508     (299 )   -58.9 %
Other assets   19,563     27,960     (8,397 )   -30.0 %
Total assets $ 6,658,751   $ 6,702,440   $ (43,689 )   -0.7 %
                         
Liabilities                        
Deposits $ 4,137,573   $ 4,173,434   $ (35,861 )   -0.9 %
Borrowings   1,326,216     1,310,547     15,669     1.2 %
Advance payments by borrowers for taxes   17,208     17,201     7     0.0 %
Other liabilities   19,643     17,997     1,646     9.1 %
Total liabilities   5,500,640     5,519,179     (18,539 )   -0.3 %
                         
Stockholders' Equity                        
Common stock   915     938     (23 )   -2.5 %
Paid-in capital   817,675     848,145     (30,470 )   -3.6 %
Retained earnings   363,072     356,993     6,079     1.7 %
Unearned ESOP shares   (31,130 )   (31,617 )   487     -1.5 %
Accumulated other comprehensive income, net   7,579     8,802     (1,223 )   -13.9 %
Total stockholders' equity   1,158,111     1,183,261     (25,150 )   -2.1 %
Total liabilities and stockholders' equity $ 6,658,751   $ 6,702,440   $ (43,689 )   -0.7 %
                         
Consolidated capital ratios                        
Equity to assets   17.39 %   17.65 %   -0.26 %      
Tangible equity to tangible assets   14.62 %   14.90 %   -0.28 %      
                         
Share data                        
Outstanding shares   91,495     93,772     (2,277 )   -2.4 %
Equity per share $ 12.66   $ 12.62   $ 0.04     0.3 %
Tangible equity per share (1) $ 10.29   $ 10.31   $ (0.02 )   -0.2 %


(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, March 31,   December 31,   Variance   or Change  
Except Per Share Data, Unaudited) 2019   2018   or Change   Pct.  
Interest income                        
Loans $ 48,116   $ 49,015   $ (899 )   -1.8 %
Taxable investment securities   9,511     9,051     460     5.1 %
Tax-exempt investment securities   710     713     (3 )   -0.4 %
Other interest-earning assets   1,320     1,243     77     6.2 %
Total Interest Income   59,657     60,022     (365 )   -0.6 %
                         
Interest expense                        
Deposits   14,114     12,727     1,387     10.9 %
Borrowings   6,905     7,946     (1,041 )   -13.1 %
Total interest expense   21,019     20,673     346     1.7 %
Net interest income   38,638     39,349     (711 )   -1.8 %
(Reversal of) provision for loan losses   (179 )   971     (1,150 )   -118.4 %
Net interest income after provision for
  loan losses
  38,817     38,378     439     1.1 %
                         
Non-interest income                        
Fees and service charges   1,674     1,258     416     33.1 %
Loss on sale and call of securities   (182 )   -     (182 ) N/A  
Gain on sale of loans   151     101     50     49.5 %
(Loss) gain on sale and write down of other real estate owned   (6 )   36     (42 )   -116.7 %
Income from bank owned life insurance   1,560     1,599     (39 )   -2.4 %
Electronic banking fees and charges   253     277     (24 )   -8.7 %
Miscellaneous   226     38     188     494.7 %
Total non-interest income   3,676     3,309     367     11.1 %
                         
Non-interest expense                        
Salaries and employee benefits   15,350     15,699     (349 )   -2.2 %
Net occupancy expense of premises   2,979     2,761     218     7.9 %
Equipment and systems   3,053     3,377     (324 )   -9.6 %
Advertising and marketing   739     787     (48 )   -6.1 %
Federal deposit insurance premium   455     421     34     8.1 %
Directors' compensation   770     746     24     3.2 %
Miscellaneous   3,425     3,479     (54 )   -1.6 %
Total non-interest expense   26,771     27,270     (499 )   -1.8 %
Income before income taxes   15,722     14,417     1,305     9.1 %
Income taxes   4,305     3,649     656     18.0 %
Net income $ 11,417   $ 10,768   $ 649     6.0 %
                         
Net income per common share (EPS)                        
Basic $ 0.13   $ 0.12   $ 0.01        
Diluted $ 0.13   $ 0.12   $ 0.01        
                         
Dividends declared                        
Cash dividends declared per common share $ 0.06   $ 0.05   $ 0.01        
Cash dividends declared $ 5,338   $ 4,082   $ 1,256        
Dividend payout ratio   46.8 %   37.9 %   8.8 %      
                         
Weighted average number of common
 shares outstanding
                       
Basic   89,488     92,434     (2,946 )      
Diluted   89,532     92,480     (2,948 )      
                         


               
  For the three months ended         Variance  
Average Balance Sheet Data March 31,   December 31,   Variance   or Change  
(Dollars in Thousands, Unaudited) 2019   2018   or Change   Pct.  
Assets                        
Interest-earning assets:                        
Loans receivable, including loans held for sale $ 4,709,052   $ 4,758,587   $ (49,535 )   -1.0 %
Taxable investment securities   1,161,492     1,158,720     2,772     0.2 %
Tax-exempt investment securities   134,309     135,453     (1,144 )   -0.8 %
Other interest-earning assets   107,554     87,916     19,638     22.3 %
Total interest-earning assets   6,112,407     6,140,676     (28,269 )   -0.5 %
Non-interest-earning assets   574,921     587,921     (13,000 )   -2.2 %
Total assets $ 6,687,328   $ 6,728,597   $ (41,269 )   -0.6 %
                         
Liabilities and Stockholders' Equity                        
Interest-bearing liabilities:                        
Deposits:                        
Interest-bearing demand $ 790,567   $ 792,989   $ (2,422 )   -0.3 %
Savings and club   773,308     743,676     29,632     4.0 %
Certificates of deposit   2,288,836     2,214,932     73,904     3.3 %
Total interest-bearing deposits   3,852,711     3,751,597     101,114     2.7 %
Borrowings:                        
Federal Home Loan Bank advances   1,292,168     1,293,470     (1,302 )   -0.1 %
Other borrowings   26,037     119,281     (93,244 )   -78.2 %
Total borrowings   1,318,205     1,412,751     (94,546 )   -6.7 %
Total interest-bearing liabilities   5,170,916     5,164,348     6,568     0.1 %
Non-interest-bearing liabilities:                        
Non-interest-bearing deposits   307,645     315,165     (7,520 )   -2.4 %
Other non-interest-bearing liabilities   35,930     37,374     (1,444 )   -3.9 %
Total non-interest-bearing liabilities   343,575     352,539     (8,964 )   -2.5 %
Total liabilities   5,514,491     5,516,887     (2,396 )   0.0 %
Stockholders' equity   1,172,837     1,211,710     (38,873 )   -3.2 %
Total liabilities and stockholders' equity $ 6,687,328   $ 6,728,597   $ (41,269 )   -0.6 %
                         
Average interest-earning assets to average
 interest-bearing liabilities
  118.21 %   118.91 %   -0.70 %   -0.6 %
                         


           
  For the three months ended        
  March 31,   December 31,   Variance  
Performance Ratio Highlights 2019   2018   or Change  
Average yield on interest-earning assets:                  
Loans receivable, including loans held for sale   4.09 %   4.12 %   -0.03 %
Taxable investment securities   3.28 %   3.12 %   0.16 %
Tax-exempt investment securities (1)   2.12 %   2.11 %   0.01 %
Other interest-earning assets   4.91 %   5.66 %   -0.75 %
Total interest-earning assets   3.91 %   3.91 %   0.00 %
                   
Average cost of interest-bearing liabilities:                  
Deposits:                  
Interest-bearing demand   1.06 %   0.97 %   0.09 %
Savings and club   0.60 %   0.49 %   0.11 %
Certificates of deposit   1.90 %   1.79 %   0.11 %
Total interest-bearing deposits   1.47 %   1.36 %   0.11 %
Borrowings:                  
Federal Home Loan Bank advances   2.13 %   2.27 %   -0.14 %
Other borrowings   0.35 %   1.99 %   -1.64 %
Total borrowings   2.10 %   2.25 %   -0.15 %
Total interest-bearing liabilities   1.63 %   1.60 %   0.03 %
                   
Interest rate spread (2)   2.28 %   2.31 %   -0.03 %
Net interest margin (3)   2.53 %   2.56 %   -0.03 %
                   
Non-interest income to average assets
 (annualized)
  0.22 %   0.20 %   0.02 %
Non-interest expense to average assets
 (annualized)
  1.60 %   1.62 %   -0.02 %
                   
Efficiency ratio (4)   63.27 %   63.93 %   -0.66 %
                   
Return on average assets (annualized)   0.68 %   0.64 %   0.04 %
Return on average equity (annualized)   3.89 %   3.55 %   0.34 %
Return on average tangible equity (annualized) (5)   4.78 %   4.33 %   0.45 %


(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  
                               
Summary Balance Sheet At  
(Dollars and Shares in Thousands, March 31,   December 31,   September 30,   June 30,   March 31,  
Except Per Share Data, Unaudited) 2019   2018   2018   2018   2018  
Assets                              
Cash and cash equivalents $ 54,160   $ 51,483   $ 44,486   $ 128,864   $ 38,283  
Securities available for sale   726,920     666,602     706,240     725,085     684,771  
Securities held to maturity   592,199     598,318     602,838     589,730     459,380  
Loans held-for-sale   997     1,001     1,503     863     2,377  
Loans receivable, including yield adjustments   4,659,804     4,753,392     4,660,507     4,501,348     3,351,369  
Less allowance for loan losses   (33,105 )   (33,526 )   (32,731 )   (30,865 )   (30,248 )
Net loans receivable   4,626,699     4,719,866     4,627,776     4,470,483     3,321,121  
Premises and equipment   58,274     58,414     57,635     56,240     42,856  
Federal Home Loan Bank stock   64,288     64,514     66,428     59,004     39,112  
Accrued interest receivable   20,326     19,435     19,455     18,510     13,926  
Goodwill   210,895     210,895     210,895     210,895     108,591  
Core deposit intangible   5,470     5,743     6,018     6,295     206  
Bank owned life insurance   254,569     253,009     251,410     249,816     184,981  
Deferred income taxes, net   24,182     24,692     22,136     23,754     3,898  
Other real estate owned   209     508     674     725     1,094  
Other assets   19,563     27,960     38,717     39,610     33,104  
Total assets $ 6,658,751   $ 6,702,440   $ 6,656,211   $ 6,579,874   $ 4,933,700  
                               
Liabilities                              
Deposits   4,137,573   $ 4,173,434   $ 3,954,821   $ 4,073,604   $ 3,067,102  
Borrowings   1,326,216     1,310,547     1,419,424     1,198,646     852,009  
Advance payments by borrowers for taxes   17,208     17,201     10,687     18,088     8,969  
Other liabilities   19,643     17,997     35,198     20,788     14,419  
Total liabilities   5,500,640     5,519,179     5,420,130     5,311,126     3,942,499  
                               
Stockholders' Equity                              
Common stock   915     938     978     996     788  
Paid-in capital   817,675     848,145     897,551     922,711     653,045  
Retained earnings   363,072     356,993     350,838     359,096     355,270  
Unearned ESOP shares   (31,130 )   (31,617 )   (32,104 )   (32,590 )   (33,076 )
Accumulated other comprehensive income, net   7,579     8,802     18,818     18,535     15,174  
Total stockholders' equity   1,158,111     1,183,261     1,236,081     1,268,748     991,201  
Total liabilities and stockholders' equity $ 6,658,751   $ 6,702,440   $ 6,656,211   $ 6,579,874   $ 4,933,700  
                               
Consolidated capital ratios                              
Equity to assets   17.39 %   17.65 %   18.57 %   19.28 %   20.09 %
Tangible equity to tangible assets   14.62 %   14.90 %   15.83 %   16.53 %   18.29 %
                               
Share data                              
Outstanding shares   91,495     93,772     97,754     99,626     78,765  
Equity per share $ 12.66   $ 12.62   $ 12.64   $ 12.74   $ 12.58  
Tangible equity per share (1) $ 10.29   $ 10.31   $ 10.43   $ 10.56   $ 11.20  


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


     
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Supplemental Balance Sheet Highlights March 31,   December 31,   September 30,   June 30,   March 31,  
(Dollars in Thousands, Unaudited) 2019   2018   2018   2018   2018  
Cash and cash equivalents                              
Cash and due from depository institutions $ 15,943   $ 24,361   $ 21,973   $ 26,199   $ 18,229  
Interest-bearing deposits in other banks   38,217     27,122     22,513     102,665     20,054  
Total cash and cash equivalents $ 54,160   $ 51,483   $ 44,486   $ 128,864   $ 38,283  
                               
Securities available for sale                              
Debt securities:                              
U.S. agency securities $ 3,737   $ 3,942   $ 4,070   $ 4,411   $ 4,667  
Municipal and state obligations   26,731     26,205     25,907     26,088     26,733  
Asset-backed securities   180,145     180,828     182,390     182,620     182,066  
Collateralized loan obligations   207,906     184,439     215,569     226,066     178,342  
Corporate bonds   121,597     144,692     147,811     147,594     142,202  
Trust preferred securities   3,775     3,726     3,794     3,783     8,485  
Debt securities available for sale   543,891     543,832     579,541     590,562     542,495  
                               
Mortgage-backed securities:                              
Collateralized mortgage obligations   21,660     23,019     23,097     24,292     25,601  
Residential pass-through securities   70,513     91,918     95,795     102,359     108,736  
Commercial pass-through securities   90,856     7,833     7,807     7,872     7,939  
Mortgage-backed securities   183,029     122,770     126,699     134,523     142,276  
Total securities available for sale $ 726,920   $ 666,602   $ 706,240   $ 725,085   $ 684,771  
                               
Securities held to maturity                              
Debt securities:                              
Municipal and state obligations $ 107,375   $ 107,826   $ 109,061   $ 109,483   $ 98,011  
Subordinated debt   63,107     56,255     46,275     46,294     30,000  
Debt securities held to maturity   170,482     164,081     155,336     155,777     128,011  
                               
Mortgage-backed securities:                              
Collateralized mortgage obligations   49,368     51,540     54,130     56,886     34,309  
Residential pass-through securities   174,338     182,335     190,812     200,622     151,605  
Commercial pass-through securities   198,011     200,362     202,560     176,445     145,455  
Mortgage-backed securities   421,717     434,237     447,502     433,953     331,369  
Total securities held to maturity $ 592,199   $ 598,318   $ 602,838   $ 589,730   $ 459,380  
                               
Total securities $ 1,319,119   $ 1,264,920   $ 1,309,078   $ 1,314,815   $ 1,144,151  
                               


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Supplemental Balance Sheet Highlights March 31,   December 31,   September 30,   June 30,   March 31,  
(Dollars in Thousands, Unaudited) 2019   2018   2018   2018   2018  
Loan portfolio composition:                              
Residential first mortgage loans $ 1,325,105   $ 1,334,284   $ 1,303,249   $ 1,297,453   $ 563,807  
Home equity loans and lines of credit   97,788     96,001     93,473     90,761     79,522  
Residential mortgage loans   1,422,893     1,430,285     1,396,722     1,388,214     643,329  
Multifamily mortgage loans   1,956,571     1,974,409     1,898,831     1,758,584     1,471,573  
Nonresidential and mixed use mortgage loans   1,249,215     1,302,583     1,315,279     1,302,961     1,113,385  
Commercial mortgage loans   3,205,786     3,276,992     3,214,110     3,061,545     2,584,958  
Commercial business loans   66,476     70,059     78,317     85,825     88,216  
Construction loans   14,377     28,405     26,581     23,271     22,963  
Account loans   3,360     3,310     3,133     3,283     3,038  
Other consumer loans   2,624     3,524     4,427     5,777     7,186  
Consumer loans   5,984     6,834     7,560     9,060     10,224  
Total loans, excluding yield adjustments   4,715,516     4,812,575     4,723,290     4,567,915     3,349,690  
Unamortized yield adjustments   (55,712 )   (59,183 )   (62,783 )   (66,567 )   1,679  
Loans receivable, including yield adjustments   4,659,804     4,753,392     4,660,507     4,501,348     3,351,369  
Less allowance for loan losses   (33,105 )   (33,526 )   (32,731 )   (30,865 )   (30,248 )
Net loans receivable $ 4,626,699   $ 4,719,866   $ 4,627,776   $ 4,470,483   $ 3,321,121  
                               
Loan portfolio allocation:                              
Residential first mortgage loans   28.1 %   27.7 %   27.6 %   28.4 %   16.8 %
Home equity loans and lines of credit   2.1 %   2.0 %   2.0 %   2.0 %   2.4 %
Residential mortgage loans   30.2 %   29.7 %   29.6 %   30.4 %   19.2 %
Multifamily mortgage loans   41.5 %   41.0 %   40.2 %   38.5 %   43.9 %
Nonresidential and mixed use mortgage loans   26.5 %