Market Newsdesk

April 27, 2023 10:11 am

HarborOne Bancorp, Inc. Announces 2023 First Quarter Earnings

HarborOne Bancorp, Inc. Announces 2023 First Quarter Earnings

BROCKTON, Mass.–(BUSINESS WIRE)–
HarborOne Bancorp, Inc. (the “Company” or “HarborOne”) (NASDAQ: HONE), the holding company for HarborOne Bank (the “Bank”), announced net income of $7.3 million, or $0.16 per diluted share, for the first quarter of 2023, compared to net income of $9.6 million, or $0.21 per diluted share, for the preceding quarter and net income of $12.3 million, or $0.25 per diluted share, for the same period last year.

Selected Financial Highlights:

Recent Company-wide cost savings measures and organizational efficiencies will provide approximately $4.1 million in annual cost savings; a branch closure and a branch relocation will provide additional long-term expense savings.
Returned $3.3 million of capital to shareholders via dividends and increased quarterly dividend by 7%.
Continued share repurchase program returning $26.8 million to shareholders, representing 2.0 million shares.
Disciplined underwriting continues to provide strong credit quality, with nonperforming loans to total loans of 0.27% compared to 0.32% on a linked-quarter basis.
Loan growth of $73.0 million, or 1.6%, and deposit growth of $52.2 million, or 1.2%, on a linked-quarter basis.

“While significant challenges presented themselves in Q1, I have tremendous confidence in our ability to manage through the current environment. Our excellent credit quality, strong capital position, and deposit growth provide the foundation for that confidence,” said Joseph F. Casey, President and CEO. “Our team remains highly focused on ensuring stability in our deposit base. The Company has been proactive in reducing expenses at both HarborOne Mortgage and the Bank and will continue to look for additional opportunities. Our resilience and strategic discipline position us well to drive long-term value for our shareholders.”

Net Interest Income

The Company’s net interest and dividend income was $34.4 million for the quarter ended March 31, 2023, compared to $39.2 million for the quarter ended December 31, 2022, and $33.3 million for the quarter ended March 31, 2022. The tax equivalent interest rate spread and net interest margin were 2.28% and 2.78%, respectively, for the quarter ended March 31, 2023, compared to 2.88% and 3.23%, respectively, for the quarter ended December 31, 2022, and 3.12% and 3.21%, respectively, for the quarter ended March 31, 2022.

On a linked-quarter basis, the decreases in net interest and dividend income, tax equivalent interest rate spread, and net interest margin primarily reflect an increase in interest-bearing liabilities, with higher cost of funding, partially offset by increased loan balances and yields with liability repricing outpacing assets. The cost of funds was 188 basis points for the quarter ended March 31, 2023, compared to 114 basis points for the preceding quarter.

The $1.1 million increase in net interest and dividend income from the prior year quarter reflects an increase of $20.3 million, or 57.1%, in total interest and dividend income and an increase of $19.2 million, or 823.7%, in total interest expense. The changes reflect rate and volume changes in both interest-bearing assets and liabilities. The yield on interest-earning assets increased 108 basis points, while the average balance increased $849.7 million, and the cost of interest-bearing liabilities increased 192 basis points, while the average balance increased $887.5 million.

Noninterest Income

Total noninterest income decreased $1.2 million, or 12.2%, to $8.7 million for the quarter ended March 31, 2023, from $9.9 million for the quarter ended December 31, 2022. Mortgage loan closings for the quarter ended March 31, 2023 were $125.6 million with a gain on loan sales of $2.2 million, compared to $222.4 million in mortgage closings and $2.3 million in gain on sales for the preceding quarter as higher gain-on-sale margins help offset the seasonal loss in production volume. Deposit account fees were $4.7 million for the quarter ended March 31, 2023, compared to $5.0 million for the quarter ended December 31, 2022. Other income for the quarter ended March 31, 2023 decreased $1.7 million, primarily reflecting a $1.1 million decrease in swap fee income.

The decrease in the fair value of mortgage servicing rights for the three months ended March 31, 2023 was $1.3 million, as compared to a decrease of $2.1 million in the fair value of mortgage servicing rights for the three months ended December 31, 2022. The valuation was negatively impacted by key benchmark mortgage rates used in the valuation. The impact of principal payments on the underlying mortgages on the mortgage servicing rights was $371,000 and $570,000 for the quarters ended March 31, 2023 and December 31, 2022, respectively.

Total noninterest income decreased $10.4 million, or 54.4%, compared to the quarter ended March 31, 2022, primarily due to a $10.4 million, or 79.1%, decrease in mortgage banking income, driven by the decrease in loan demand as a result of interest rate increases. The prior year quarter also reflected a $6.1 million increase in the fair value of mortgage servicing rights.

Noninterest Expense

Total noninterest expenses were $31.5 million for the quarter ended March 31, 2023, a decrease of $3.1 million, or 9.0%, from the quarter ended December 31, 2022. Compensation and benefits decreased $2.3 million primarily reflecting decreased mortgage origination commission and incentive accruals. Other expenses decreased $1.6 million, or 35.7% for the quarter ended March 31 2023, primarily as a result of a legal settlement accrued for in the fourth quarter of 2022.

Total noninterest expenses decreased $3.3 million, or 9.5%, from the quarter ended March 31, 2022. Compensation and benefits decreased $2.9 million primarily reflecting decreased mortgage origination commission and incentive accruals.

During the quarter, management evaluated potential cost saving measures across the Company. This resulted in a reduction in force at HarborOne Mortgage, LLC (“HarborOne Mortgage”) during the first quarter with an expected annual cost savings of $1.2 million and recognized severance expense of $249,000. During the second quarter of 2023 the Bank took further cost savings measures and organizational efficiencies with an estimated annual savings of $2.9 million and will recognize severance expense of $452,000. Additionally, the Bank sought and obtained regulatory approval in 2023 to close one branch and relocate another branch that will both provide additional long-term expense savings.

Income Tax Provision

The effective tax rate for the quarter ended March 31, 2023 was 24.9% compared to 22.4% for the quarter ended December 31, 2022. The 2022 effective tax rate was impacted by a tax benefit recorded for Industrial Revenue Bonds and a reserve release upon the expiration of the statute of limitations.

Asset Quality and Allowance for Credit Losses

Disciplined underwriting and active loan management continues to result in strong credit quality performance. Total nonperforming assets improved to $12.3 million at March 31, 2023, compared to $14.8 million at December 31, 2022 and $26.1 million at March 31, 2022. Nonperforming assets as a percentage of total assets were 0.22% at March 31, 2023, 0.28% at December 31, 2022, and 0.57% at March 31, 2022. During 2022, two large commercial credits were resolved, reducing nonperforming assets significantly.

The provision for funded loan credit losses for the quarter ended March 31, 2023 was $1.7 million and reflects provisioning for loan growth and increased economic uncertainty. Net recoveries totaled $11,000 for the quarter ended March 31, 2023. Net charge-offs totaled $2.1 million, or 0.19% of average loans outstanding on an annualized basis, for the quarter ended December 31, 2022, and net charge-offs totaled $2.7 million, or 0.30% of average loans outstanding on an annualized basis, for the quarter ended March 31, 2022.

The allowance for credit losses (“ACL”) was $47.0 million, or 1.02% of total loans, at March 31, 2023, compared to $45.2 million, or 0.99% of total loans, at December 31, 2022 and $41.8 million, or 1.12% of total loans, at March 31, 2022. The ACL on unfunded commitments, included in other liabilities on the unaudited Consolidated Balance Sheets, amounted to $5.0 million at March 31, 2023 as compared to $4.9 million at December 31, 2022 and $3.8 million at March 31, 2022.

We believe that we are well positioned to withstand any downturn in the credit cycle should one materialize. We continue to closely monitor our loan portfolio for signs of deterioration. Management is focused on commercial real estate in light of speculation that commercial real estate values may deteriorate as the market adjusts to higher vacancies and rates. Our commercial real estate portfolio is centered in New England with approximately 75% in Massachusetts and Rhode Island. Approximately 60% of commercial real estate loans are fixed-rate loans with limited near-term maturity risk.

Management has also identified certain sectors within the commercial real estate segment that may be particularly susceptible to increased credit risk as a result of trends that were precipitated by the COVID-19 pandemic and may be exacerbated by current economic conditions. This includes business-oriented hotels, non-anchored retail space and metro office space. As of March 31, 2023, business-oriented hotels loans included 12 loans with a total outstanding balance of $85.3 million, non-anchored retail space loans included 28 loans with a total outstanding balance of $40.2 million, and metro office space loans included two loans with a total outstanding balance of $14.8 million. As of March 31, 2023, there was one business-oriented hotel credit with a carrying value of $1.9 million that was rated substandard and on nonaccrual. This credit was provided a principal deferral in the third quarter of 2022. The other loans in these groups were performing in accordance with their terms.

Balance Sheet

Total assets increased $213.3 million, or 4.0%, to $5.57 billion at March 31, 2023, from $5.36 billion at December 31, 2022. The increase primarily reflects an increase of $152.5 million in short-term investments and a $73.0 million increase in loans. The increase in short-term investments reflects management’s pro-active liquidity-enhancing measures in response to financial industry concerns.

Available for sale securities were $303.1 million and $301.1 million at March 31, 2023 and December 31, 2022, respectively. The unrealized loss on securities available for sale decreased to $61.2 million as of March 31, 2023, as compared to $68.3 million of unrealized losses as of December 31, 2022. Securities held to maturity were $19.8 million, or 0.4% of total assets, with a fair value of $19.3 million.

Loans increased $73.0 million, or 1.6%, to $4.62 billion at March 31, 2023, from $4.55 billion at December 31, 2022. The increase in loans for the three months ended March 31, 2023 was primarily due to increases in commercial real estate loans of $36.4 million, commercial construction loans of $13.4 million, and residential real estate loans of $33.6 million, partially offset by decreases in commercial and industrial loans of $1.2 million and consumer loans of $9.2 million. Management continues to seek prudent commercial lending opportunities to deepen relationships with existing customers and develop new relationships with strong borrowers.

Total deposits were $4.24 billion at March 31, 2023 and $4.19 billion at December 31, 2022. Compared to the prior quarter, non-certificate accounts decreased $124.9 million, term certificate accounts increased $155.6 million, and brokered deposits increased $21.5 million. As of March 31, 2023, FDIC-insured deposits exceeded 70% of total deposits. Including Depositors Insurance Fund (“DIF”) excess insurance coverage that remains available until February 24, 2024, insured deposits are approximately 100% of total deposits. The Bank exited the DIF as of February 24, 2023; however, insurance remains in place for funds on deposit as of that date for one year or until maturity for term certificates, if that is a later date.

FHLB borrowings increased $190.0 million to $590.7 million at March 31, 2023 from $400.7 million at December 31, 2022. At March 31, 2023, FHLB borrowings were primarily short-term borrowings as the Bank utilized available credit to enhance liquidity. As of March 31, 2023, the Bank had $677.6 million in available borrowing capacity across multiple relationships.

Total stockholders’ equity was $599.8 million at March 31, 2023, compared to $617.0 million at December 31, 2022 and $649.1 million at March 31, 2022. Stockholders’ equity decreased 2.8% when compared to the prior quarter, as earnings were offset by share repurchases. The Company repurchased 2,033,192 shares at an average price of $13.19, including $0.13 per share of excise tax, during the three months ended March 31, 2023. A share repurchase program that commenced in the first quarter of 2023 is expected to be completed in the second quarter of 2023. Due to recent market volatility and increased economic uncertainty, share repurchase activity is expected to be reduced in the second quarter of 2023 compared to recent prior quarters. The tangible-common-equity-to-tangible-assets ratio was 9.60% at March 31, 2023, 10.31% at December 31, 2022, and 12.75% at March 31, 2022. At March 31, 2023, the Company and the Bank had strong capital positions, exceeded all regulatory capital requirements, and are considered well-capitalized.

About HarborOne Bancorp, Inc.

HarborOne Bancorp, Inc. is the holding company for HarborOne Bank, a Massachusetts-chartered trust company. HarborOne Bank serves the financial needs of consumers, businesses, and municipalities throughout Eastern Massachusetts and Rhode Island through a network of 31 full-service branches located in Massachusetts and Rhode Island, and a commercial lending office in each of Boston, Massachusetts and Providence, Rhode Island. HarborOne Bank also provides a range of educational services through “HarborOne U,” with classes on small business, financial literacy and personal enrichment at two campuses located adjacent to our Brockton and Mansfield locations. HarborOne Mortgage, LLC, a subsidiary of HarborOne Bank, is a full-service mortgage lender with 24 offices in Maine, Massachusetts, New Jersey, Rhode Island, and New Hampshire, and is licensed to lend in six additional states.

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission (“SEC”), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, changes in general business and economic conditions (including inflation and concerns about inflation) on a national basis and in the local markets in which the Company operates, including changes that adversely affect borrowers’ ability to service and repay the Company’s loans; changes in customer behavior; ongoing turbulence in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates; increases in loan default and charge-off rates; decreases in the value of securities in the Company’s investment portfolio; fluctuations in real estate values; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; competitive pressures from other financial institutions; acquisitions may not produce results at levels or within time frames originally anticipated; cybersecurity incidents, fraud, natural disasters, war, terrorism, civil unrest, and future pandemics; changes in regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in the Annual Report on Form 10‑K and Quarterly Reports on Form 10‑Q as filed with the SEC, which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, HarborOne’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

Use of Non-GAAP Measures

In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. The Company’s management believes that the supplemental non-GAAP information, which consists of the efficiency ratio, tangible common equity to tangible assets ratio and tangible book value per share, is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

HarborOne Bancorp, Inc. Consolidated Balance Sheet Trend (Unaudited)

	March 31,			December 31,			September 30,			June 30,			March 31,
(in thousands)	2023			2022			2022			2022			2022

Assets

Cash and due from banks	$	38,989		$	39,712		$	39,910		$	35,843		$	41,862
Short-term investments		210,765			58,305			46,044			48,495			97,870
Total cash and cash equivalents		249,754			98,017			85,954			84,338			139,732

Securities available for sale, at fair value		303,059			301,149			304,852			334,398			361,529
Securities held to maturity, at amortized cost		19,838			19,949			15,000			10,000			—
Federal Home Loan Bank stock, at cost		23,589			20,071			15,973			5,625			5,931
Asset held for sale		—			—			—			—			678
Loans held for sale, at fair value		13,956			18,544			18,805			31,679			25,690
Loans:
Commercial real estate		2,286,727			2,250,344			2,041,905			1,847,619			1,816,484
Commercial construction		212,689			199,311			185,062			158,762			154,059
Commercial and industrial		423,036			424,275			397,112			407,182			410,787
Total commercial loans		2,922,452			2,873,930			2,624,079			2,413,563			2,381,330
Residential real estate		1,667,934			1,634,319			1,520,809			1,423,074			1,252,920
Consumer		32,246			41,421			52,466			75,312			103,100
Loans		4,622,632			4,549,670			4,197,354			3,911,949			3,737,350
Less: Allowance for credit losses on loans		(46,994	)		(45,236	)		(44,621	)		(43,560	)		(41,765	)
Net loans		4,575,638			4,504,434			4,152,733			3,868,389			3,695,585
Mortgage servicing rights, at fair value		47,080			48,138			49,861			47,130			45,043
Goodwill		69,802			69,802			69,802			69,802			69,802
Other intangible assets		2,082			2,272			2,461			2,695			2,930
Other assets		268,060			277,169			272,202			249,988			244,405
Total assets	$	5,572,858		$	5,359,545		$	4,987,643		$	4,704,044		$	4,591,325

Liabilities and Stockholders’ Equity

Deposits:
Demand deposit accounts	$	726,548		$	762,576		$	795,945		$	775,154		$	771,172
NOW accounts		287,376			297,692			308,191			316,839			310,090
Regular savings and club accounts		1,455,318			1,468,172			1,289,825			1,282,913			1,218,656
Money market deposit accounts		796,008			861,704			889,517			885,673			864,316
Term certificate accounts		653,553			497,975			484,936			487,354			497,746
Brokered deposits		322,927			301,380			114,696			100,000			100,000
Total deposits		4,241,730			4,189,499			3,883,110			3,847,933			3,761,980
Short-term borrowed funds		425,000			385,000			330,000			90,000			—
Long-term borrowed funds		165,665			15,675			15,684			15,693			55,702
Subordinated debt		34,317			34,285			34,254			34,222			34,191
Other liabilities and accrued expenses		106,352			118,110			113,225			91,718			90,387
Total liabilities		4,973,064			4,742,569			4,376,273			4,079,566			3,942,260

Common stock		597			596			593			593			591
Additional paid-in capital		483,831			483,031			480,617			479,519			477,302
Unearned compensation – ESOP		(27,164	)		(27,623	)		(28,083	)		(28,542	)		(29,002	)
Retained earnings		360,454			356,438			350,049			339,471			332,734
Treasury stock		(175,514	)		(148,384	)		(143,125	)		(132,296	)		(113,513	)
Accumulated other comprehensive loss		(42,410	)		(47,082	)		(48,681	)		(34,267	)		(19,047	)
Total stockholders’ equity		599,794			616,976			611,370			624,478			649,065

Total liabilities and stockholders’ equity	$	5,572,858		$	5,359,545		$	4,987,643		$	4,704,044		$	4,591,325


HarborOne Bancorp, Inc. Consolidated Statements of Net Income – Trend (Unaudited)

	Quarters Ended
	March 31,			December 31,			September 30,		June 30,		March 31,
(in thousands, except share data)	2023			2022			2022		2022		2022

Interest and dividend income:
Interest and fees on loans	$	52,771		$	49,177		$	42,065	$	37,522	$	33,576
Interest on loans held for sale		286			334			377		331		264
Interest on securities		2,079			2,045			1,971		1,873		1,701
Other interest and dividend income		803			359			143		131		61
Total interest and dividend income		55,939			51,915			44,556		39,857		35,602

Interest expense:
Interest on deposits		15,913			8,499			3,491		2,019		1,621
Interest on FHLB borrowings		5,105			3,703			1,209		119		188
Interest on subordinated debentures		523			524			524		524		523
Total interest expense		21,541			12,726			5,224		2,662		2,332

Net interest and dividend income		34,398			39,189			39,332		37,195		33,270

Provision for credit losses		1,866			2,108			668		2,546		338

Net interest and dividend income, after provision for credit losses		32,532			37,081			38,664		34,649		32,932

Noninterest income:
Mortgage banking income:
Gain on sale of mortgage loans		2,224			2,301			3,809		4,538		5,322
Changes in mortgage servicing rights fair value		(1,692	)		(2,631	)		1,816		862		5,285
Other		2,216			2,325			2,453		2,612		2,558
Total mortgage banking income		2,748			1,995			8,078		8,012		13,165

Deposit account fees		4,733			5,031			4,870		4,892		4,472
Income on retirement plan annuities		119			118			119		112		107
Bank-owned life insurance income		500			501			503		494		483
Other income		590			2,255			675		593		834
Total noninterest income		8,690			9,900			14,245		14,103		19,061

Noninterest expenses:
Compensation and benefits		17,799			20,104			20,991		21,455		20,723
Occupancy and equipment		5,040			4,935			4,829		4,575		5,428
Data processing		2,346			2,359			2,311		2,259		2,241
Loan expense		313			169			355		385		478
Marketing		1,181			862			850		986		1,218
Professional fees		1,501			1,446			1,457		1,680		1,539
Deposit insurance		510			385			357		354		349
Other expenses		2,819			4,384			3,323		3,260		2,859
Total noninterest expenses		31,509			34,644			34,473		34,954		34,835

Income before income taxes		9,713			12,337			18,436		13,798		17,158

Income tax provision		2,416			2,760			4,678		3,811		4,891

Net income	$	7,297		$	9,577		$	13,758	$	9,987	$	12,267

Earnings per common share:
Basic	$	0.16		$	0.21		$	0.30	$	0.21	$	0.26
Diluted	$	0.16		$	0.21		$	0.30	$	0.21	$	0.25
Weighted average shares outstanding:
Basic		44,857,224			45,321,491			45,830,737		46,980,830		47,836,410
Diluted		45,284,240			45,861,658			46,420,527		47,536,033		48,690,420


HarborOne Bancorp, Inc. Average Balances / Yields (Unaudited)

	Quarters Ended
	March 31, 2023							December 31, 2022							March 31, 2022
	Average							Average							Average
	Outstanding					Yield/		Outstanding					Yield/		Outstanding					Yield/
	Balance			Interest		Cost ⁽⁷⁾		Balance			Interest		Cost ⁽⁷⁾		Balance			Interest		Cost ⁽⁷⁾
	(dollars in thousands)
Interest-earning assets:
Investment securities ⁽¹⁾	$	387,303		$	2,079	2.18	%	$	388,247		$	2,045	2.09	%	$	393,364		$	1,701	1.75	%
Other interest-earning assets		63,426			803	5.13			42,640			359	3.34			150,569			61	0.16
Loans held for sale		18,108			286	6.41			22,350			334	5.93			29,842			264	3.59
Loans
Commercial loans⁽²⁾⁽³⁾		2,901,464			36,837	5.15			2,770,667			34,351	4.92			2,291,343			22,095	3.91
Residential real estate loans⁽³⁾		1,647,109			15,616	3.85			1,566,389			14,352	3.64			1,220,703			10,142	3.37
Consumer loans ⁽³⁾		36,310			519	5.80			45,629			632	5.50			118,242			1,339	4.59
Total loans		4,584,883			52,972	4.69			4,382,685			49,335	4.47			3,630,288			33,576	3.75
Total interest-earning assets		5,053,720			56,140	4.51			4,835,922			52,073	4.27			4,204,063			35,602	3.43
Noninterest-earning assets		313,309							311,372							326,811
Total assets	$	5,367,029						$	5,147,294						$	4,530,874
Interest-bearing liabilities:
Savings accounts	$	1,459,392			5,445	1.51		$	1,408,493			3,591	1.01		$	1,165,683			366	0.13
NOW accounts		275,801			36	0.05			291,890			40	0.05			301,279			36	0.05
Money market accounts		824,694			5,238	2.58			878,609			3,312	1.50			858,792			303	0.14
Certificates of deposit		552,636			2,685	1.97			487,121			1,062	0.86			522,211			729	0.57
Brokered deposits		330,426			2,509	3.08			148,460			494	1.32			100,000			187	0.76
Total interest-bearing deposits		3,442,949			15,913	1.87			3,214,573			8,499	1.05			2,947,965			1,621	0.22
FHLB advances		448,096			5,105	4.62			392,508			3,703	3.74			55,706			188	1.37
Subordinated debentures		34,298			523	6.18			34,268			524	6.07			34,173			523	6.21
Total borrowings		482,394			5,628	4.73			426,776			4,227	3.93			89,879			711	3.21
Total interest-bearing liabilities		3,925,343			21,541	2.23			3,641,349			12,726	1.39			3,037,844			2,332	0.31
Noninterest-bearing liabilities:
Noninterest-bearing deposits		721,536							788,572							738,578
Other noninterest-bearing liabilities		101,820							101,621							86,763
Total liabilities		4,748,699							4,531,542							3,863,185
Total stockholders’ equity		618,330							615,752							667,689
Total liabilities and stockholders’ equity	$	5,367,029						$	5,147,294						$	4,530,874
Tax equivalent net interest income					34,599							39,347							33,270
Tax equivalent interest rate spread⁽⁴⁾						2.28	%						2.88	%						3.12	%
Less: tax equivalent adjustment					201							158							—
Net interest income as reported				$	34,398						$	39,189						$	33,270
Net interest-earning assets ⁽⁵⁾	$	1,128,377						$	1,194,573						$	1,166,219
Net interest margin⁽⁶⁾						2.76	%						3.22	%						3.21	%
Tax equivalent effect						0.02							0.01							—
Net interest margin on a fully tax equivalent basis						2.78	%						3.23	%						3.21	%
Ratio of interest-earning assets to interest-bearing liabilities		128.75	%						132.81	%						138.39	%

Supplemental information:
Total deposits, including demand deposits	$	4,164,485		$	15,913			$	4,003,145		$	8,499			$	3,686,543		$	1,621
Cost of total deposits						1.55	%						0.84	%						0.18	%
Total funding liabilities, including demand deposits	$	4,646,879		$	21,541			$	4,429,921		$	12,726			$	3,776,422		$	2,332
Cost of total funding liabilities						1.88	%						1.14	%						0.25	%


⁽¹⁾ Includes securities available for sale and securities held to maturity.
⁽²⁾Includes industrial revenue bonds for the quarters ended March 31, 2023 and December 31, 2022. Interest income from tax exempt loans is computed on a taxable equivalent basis using a rate of 21% for the quarters presented. The yield on commercial loans before tax equivalent adjustment at March 31, 2023 and December 31, 2022 was 5.12% and 4.90%, respectively.
⁽³⁾ Includes nonaccruing loan balances and interest received on such loans.
⁽⁴⁾ Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
⁽⁵⁾ Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.
⁽⁶⁾ Net interest margin represents net interest income divided by average total interest-earning assets.
⁽⁷⁾Annualized.


HarborOne Bancorp, Inc. Average Balances and Yield Trend (Unaudited)

	Average Balances – Trend – Quarters Ended
	March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022
	(in thousands)

Interest-earning assets:
Investment securities ⁽¹⁾	$	387,303		$	388,247		$	390,577		$	391,448		$	393,364
Other interest-earning assets		63,426			42,640			27,723			64,678			150,569
Loans held for sale		18,108			22,350			28,046			29,474			29,842
Loans
Commercial loans ⁽²⁾⁽³⁾		2,901,464			2,770,667			2,522,359			2,384,630			2,291,343
Residential real estate loans ⁽³⁾		1,647,109			1,566,389			1,470,305			1,330,772			1,220,703
Consumer loans ⁽³⁾		36,310			45,629			63,220			88,943			118,242
Total loans		4,584,883			4,382,685			4,055,884			3,804,345			3,630,288
Total interest-earning assets		5,053,720			4,835,922			4,502,230			4,289,945			4,204,063
Noninterest-earning assets		313,309			311,372			308,734			311,998			326,811
Total assets	$	5,367,029		$	5,147,294		$	4,810,964		$	4,601,943		$	4,530,874
Interest-bearing liabilities:
Savings accounts	$	1,459,392		$	1,408,493		$	1,293,598		$	1,266,912		$	1,165,683
NOW accounts		275,801			291,890			305,777			311,241			301,279
Money market accounts		824,694			878,609			893,452			885,305			858,792
Certificates of deposit		552,636			487,121			486,923			484,484			522,211
Brokered deposits		330,426			148,460			102,875			100,000			100,000
Total interest-bearing deposits		3,442,949			3,214,573			3,082,625			3,047,942			2,947,965
FHLB advances		448,096			392,508			196,036			34,763			55,706
Subordinated debentures		34,298			34,268			34,237			34,207			34,173
Total borrowings		482,394			426,776			230,273			68,970			89,879
Total interest-bearing liabilities		3,925,343			3,641,349			3,312,898			3,116,912			3,037,844
Noninterest-bearing liabilities:
Noninterest-bearing deposits		721,536			788,572			789,214			768,088			738,578
Other noninterest-bearing liabilities		101,820			101,621			80,304			75,186			86,763
Total liabilities		4,748,699			4,531,542			4,182,416			3,960,186			3,863,185
Total stockholders’ equity		618,330			615,752			628,548			641,757			667,689
Total liabilities and stockholders’ equity	$	5,367,029		$	5,147,294		$	4,810,964		$	4,601,943		$	4,530,874

	Annualized Yield Trend – Quarters Ended
	March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022

Interest-earning assets:
Investment securities ⁽¹⁾		2.18	%		2.09	%		2.00	%		1.92	%		1.75	%
Other interest-earning assets		5.13	%		3.34	%		2.05	%		0.81	%		0.16	%
Loans held for sale		6.41	%		5.93	%		5.33	%		4.51	%		3.59	%
Commercial loans ⁽²⁾⁽³⁾		5.15	%		4.92	%		4.45	%		4.25	%		3.91	%
Residential real estate loans ⁽³⁾		3.85	%		3.64	%		3.50	%		3.37	%		3.37	%
Consumer loans ⁽³⁾		5.80	%		5.50	%		4.99	%		4.71	%		4.59	%
Total loans		4.69	%		4.47	%		4.11	%		3.96	%		3.75	%
Total interest-earning assets		4.51	%		4.27	%		3.93	%		3.73	%		3.43	%

Interest-bearing liabilities:
Savings accounts		1.51	%		1.01	%		0.37	%		0.20	%		0.13	%
NOW accounts		0.05	%		0.05	%		0.05	%		0.05	%		0.05	%
Money market accounts		2.58	%		1.50	%		0.61	%		0.30	%		0.14	%
Certificates of deposit		1.97	%		0.86	%		0.64	%		0.55	%		0.57	%
Brokered deposits		3.08	%		1.32	%		0.27	%		0.20	%		0.76	%
Total interest-bearing deposits		1.87	%		1.05	%		0.45	%		0.27	%		0.22	%
FHLB advances		4.62	%		3.74	%		2.45	%		1.36	%		1.37	%
Subordinated debentures		6.18	%		6.07	%		6.07	%		6.14	%		6.21	%
Total borrowings		4.73	%		3.93	%		2.99	%		3.74	%		3.21	%
Total interest-bearing liabilities		2.23	%		1.39	%		0.63	%		0.34	%		0.31	%

⁽¹⁾ Includes securities available for sale and securities held to maturity.
⁽²⁾ Includes industrial revenue bonds for the quarters ended March 31, 2023 and December 31, 2022. Interest income from tax exempt loans is computed on a taxable equivalent basis using a rate of 21% for the quarters presented. The yield on commercial loans before tax equivalent adjustment at March 31, 2023 and December 31, 2022 was 5.12% and 4.90%, respectively.
⁽³⁾ Includes nonaccruing loan balances and interest received on such loans.


HarborOne Bancorp, Inc. Selected Financial Highlights (Unaudited)

	Quarters Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
Performance Ratios (annualized):	2023			2022			2022			2022			2022
(dollars in thousands)

Return on average assets (ROAA)		0.54	%		0.74	%		1.14	%		0.87	%		1.08	%

Return on average equity (ROAE)		4.72	%		6.22	%		8.76	%		6.22	%		7.35	%

Total noninterest expense	$	31,509		$	34,644		$	34,473		$	34,954		$	34,835
Less: Amortization of other intangible assets		189			189			235			235			235
Total adjusted noninterest expense	$	31,320		$	34,455		$	34,238		$	34,719		$	34,600

Net interest and dividend income	$	34,398		$	39,189		$	39,332		$	37,195		$	33,270
Total noninterest income		8,690			9,900			14,245			14,103			19,061
Total revenue	$	43,088		$	49,089		$	53,577		$	51,298		$	52,331

Efficiency ratio ⁽¹⁾		72.69	%		70.19	%		63.90	%		67.68	%		66.12	%

⁽¹⁾ This non-GAAP measure represents adjusted noninterest expense divided by total revenue


	At or for the Quarters Ended
	March 31,				December 31,			September 30,				June 30,				March 31,
Asset Quality	2023				2022			2022				2022				2022
(dollars in thousands)

Total nonperforming assets	$	12,300			$	14,840		$	23,367			$	24,441			$	26,109

Nonperforming assets to total assets		0.22		%		0.28	%		0.47		%		0.52		%		0.57	%

Allowance for credit losses on loans to total loans		1.02		%		0.99	%		1.06		%		1.11		%		1.12	%

Net charge-offs (recoveries)	$	(11	)		$	2,067		$	(799	)		$	(504	)		$	2,730

Annualized net charge-offs (recoveries)/average loans		—		%		0.19	%		(0.08	)	%		(0.05	)	%		0.30	%

Allowance for credit losses on loans to nonperforming loans		383.50		%		305.93	%		191.60		%		178.41		%		159.96	%


HarborOne Bancorp, Inc. Selected Financial Highlights (Unaudited)

	Quarters Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
Capital and Share Related	2023			2022			2022			2022			2022
(dollars in thousands, except share data)

Common stock outstanding		47,063,087			48,961,452			49,202,660			49,989,007			51,257,696

Book value per share	$	12.74		$	12.60		$	12.43		$	12.49		$	12.66

Tangible common equity:
Total stockholders’ equity	$	599,794		$	616,976		$	611,370		$	624,478		$	649,065
Less: Goodwill		69,802			69,802			69,802			69,802			69,802
Less: Other intangible assets⁽¹⁾		2,082			2,272			2,461			2,695			2,930
Tangible common equity	$	527,910		$	544,902		$	539,107		$	551,981		$	576,333

Tangible book value per share ⁽²⁾	$	11.22		$	11.13		$	10.96		$	11.04		$	11.24

Tangible assets:
Total assets	$	5,572,858		$	5,359,545		$	4,987,643		$	4,704,044		$	4,591,325
Less: Goodwill		69,802			69,802			69,802			69,802			69,802
Less: Other intangible assets		2,082			2,272			2,461			2,695			2,930
Tangible assets	$	5,500,974		$	5,287,471		$	4,915,380		$	4,631,547		$	4,518,593

Tangible common equity / tangible assets ⁽³⁾		9.60	%		10.31	%		10.97	%		11.92	%		12.75	%

⁽¹⁾ Other intangible assets are core deposit intangibles.
⁽²⁾ This non-GAAP ratio is total stockholders’ equity less goodwill and intangible assets divided by common stock outstanding.
⁽³⁾ This non-GAAP ratio is total stockholders’ equity less goodwill and intangible assets to total assets less goodwill and intangible assets.


HarborOne Bancorp, Inc. Segments Statements of Net Income (Unaudited)

	HarborOne Mortgage								HarborOne Bank
	For the Quarter Ended								For the Quarter Ended
	March 31,			December 31,			March 31,		March 31,			December 31,			March 31,
	2023			2022			2022		2023			2022			2022
	(in thousands)

Net interest and dividend income	$	327		$	419		$	350	$	34,562		$	39,258		$	33,424
Provision (benefit) for credit losses		—			—			—		1,866			2,108			338
Net interest and dividend income, after provision for loan losses		327			419			350		32,696			37,150			33,086
Mortgage banking income:
Gain on sale of mortgage loans		2,224			2,301			5,322		—			—			—
Intersegment gain (loss)		454			553			837		(348	)		(997	)		(608	)
Changes in mortgage servicing rights fair value		(1,556	)		(2,368	)		4,695		(136	)		(263	)		590
Other		2,015			2,122			2,325		201			203			233
Total mortgage banking income (loss)		3,137			2,608			13,179		(283	)		(1,057	)		215
Other noninterest income (loss)		—			126			9		5,942			7,779			5,887
Total noninterest income		3,137			2,734			13,188		5,659			6,722			6,102
Noninterest expense		5,322			5,452			7,761		26,190			28,744			26,825
(Loss) income before income taxes		(1,858	)		(2,299	)		5,777		12,165			15,128			12,363
Provision for income taxes		(565	)		—			1,541		3,115			2,817			3,557
Net (loss) income	$	(1,293	)	$	(2,299	)	$	4,236	$	9,050		$	12,311		$	8,806

Category: Earnings

View source version on businesswire.com: https://www.businesswire.com/news/home/20230427005228/en/

Linda Simmons, EVP, CFO (508) 895-1379

KEYWORDS: Massachusetts United States North America

INDUSTRY KEYWORDS: Banking Accounting Professional Services Finance

MEDIA:

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April 27, 2023 10:11 am

Reborn Coffee to Attend EF Hutton Inaugural Global Conference on May 11, 2023

BREA, Calif., April 27, 2023 (GLOBE NEWSWIRE) — Reborn Coffee, Inc. (NASDAQ: REBN) (“Reborn” or the “Company”), a California-based retailer of specialty coffee, today announced it will attend the at the EF Hutton Inaugural Global Conference being held at The Plaza Hotel in New York City May 10-11, 2023.

Reborn Chief Executive Officer Jay Kim and Chief Financial Officer Stephan Kim will conduct in-person one-on-one meetings on May 11, 2023.

EF Hutton Inaugural Global Conference

Date: May 10-11, 2023
Location: New York City
Format: In-person 1×1’s
Speakers: Chief Executive Officer Jay Kim, Chief Financial Officer Stephan Kim
Conference Website: Click here

For more information on the EF Hutton Inaugural Global Conference, or to schedule a one-on-one meeting with Reborn management, please contact your conference representative or you may also email your request to [email protected] or call Chris Tyson at (949) 491-8235.

About Reborn Coffee

Reborn Coffee, Inc. (NASDAQ: REBN) is focused on serving high quality, specialty-roasted coffee at retail locations, kiosks, and cafes. Reborn is an innovative company that strives for constant improvement in the coffee experience through exploration of new technology and premier service, guided by traditional brewing techniques. Reborn believes they differentiate themselves from other coffee roasters through innovative techniques, including sourcing, washing, roasting, and brewing their coffee beans with a balance of precision and craft. For more information, please visit www.reborncoffee.com.

Forward-Looking Statements

All statements in this release that are not based on historical fact are “forward-looking statements.” While management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors section of our recently filed Registration Statement on Form S-1, as amended, and in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of our recently filed Quarterly Report on Form 10-Q, which can be found on the SEC’s website at www.sec.gov. Such risks, uncertainties, and other factors include, but are not limited to, the Company’s ability to successfully open the additional locations described herein as planned or at all, the Company’s ability to expand its business both within and outside of California (including as it relates to increasing sales and growing Average Unit Volumes at our existing stores), the degree of customer loyalty to our stores and products, the impact of COVID-19 on consumer traffic and costs, the fluctuation of economic conditions, competition and inflation. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Contacts

Investor Relations Contact:

Chris Tyson
Executive Vice President
MZ North America
[email protected]
949-491-8235

Company Contact:

Reborn Coffee, Inc.
[email protected]

April 27, 2023 10:10 am

OSS to Host First Quarter 2023 Conference Call on Thursday, May 11, 2023 at 5:00 p.m. ET

ESCONDIDO, Calif., April 27, 2023 (GLOBE NEWSWIRE) — One Stop Systems, Inc. (Nasdaq: OSS), a leader in AI Transportable compute and storage solutions at the edge, will hold a conference call on Thursday, May 11, 2023 at 5:00 p.m. Eastern time to discuss its results for the first quarter ended March 31, 2023. The financial results will be issued in a press release prior to the call.

OSS management will host the conference call followed by a question and answer period.

Date: Thursday, May 11, 2023
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Toll-free dial-in number: 1-888-886-7786
International dial-in number: 1-416-764-8658
Conference ID: 88940744
Webcast: here (live and replay)

The webcast will include a slide presentation viewable via the webcast link above.

Approximately two hours after the Q&A session, an archived version of the webcast will be available in the Investors section of the company’s website at onestopsystems.com. OSS regularly uses its website to disclose material and non-material information to investors, customers, employees and others interested in the company.

Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact CMA at 1-949-432-7566.

A replay of the call will be available after 8:00 p.m. Eastern time on the same day and through May 25, 2023.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 88940744

About One Stop Systems

One Stop Systems, Inc. (Nasdaq: OSS) is a global leader in AI Transportable solutions for the demanding ‘edge.’ It designs and manufactures the highest performance compute and storage products that enable rugged AI and autonomous capabilities without compromise. These hardware and software platforms bring the latest data center performance to the harsh and challenging applications, whether they are on land, sea or in the air.

OSS products include ruggedized servers, compute accelerators, flash storage arrays, and storage acceleration software. These specialized compact products are used across multiple industries and applications, including autonomous trucking and farming, as well as aircraft, drones, ships and vehicles within the defense industry.

OSS solutions address the entire AI workflow, from high-speed data acquisition to deep learning, training and large-scale inference, and have delivered many industry firsts for industrial OEM and government customers.

As the fastest growing segment of the multi-billion-dollar edge computing market, AI Transportables require—and OSS delivers—the highest level of performance in the most challenging environments without compromise.

OSS products are available directly or through global distributors. For more information, go to www.onestopsystems.com. You can also follow OSS on Twitter, YouTube, and LinkedIn.

Media Contacts:

Katie Rivera
One Stop Systems, Inc.
Tel (760) 745-9883
Email contact

Tim Randall
CMA Media Relations
Tel (949) 432-7572
Email Contact

Investor Relations:

Ronald Both or Grant Stude
CMA Investor Relations
Tel (949) 432-7557
Email contact

April 27, 2023 10:09 am

Flux Power to Host Fiscal Third Quarter 2023 Results Conference Call on Thursday, May 11, 2023 at 4:30 p.m. Eastern Time

Flux Power to Host Fiscal Third Quarter 2023 Results Conference Call on Thursday, May 11, 2023 at 4:30 p.m. Eastern Time

VISTA, Calif.–(BUSINESS WIRE)–Flux Power Holdings, Inc. (NASDAQ: FLUX), a developer of advanced lithium-ion energy storage solutions for electrification of commercial and industrial equipment, will hold a conference call on Thursday, May 11, 2023 at 4:30 p.m. Eastern Time to discuss its results for the fiscal third quarter ended March 31, 2023. A press release detailing these results will be issued prior to the call.

Flux Power CEO Ron Dutt and CFO Chuck Scheiwe will host the conference call, followed by a question-and-answer session. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed via the investor relations section of the Company’s website here.

To access the call, please use the following information:

Date:	Thursday, May 11, 2023
Time:	4:30 p.m. Eastern Time, 1:30 p.m. Pacific Time
Toll-free dial-in number:	1-877-407-4018
International dial-in number:	1-201-689-8471
Conference ID:	13738000

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact MZ Group at 1-949-491-8235.

The conference call will be broadcast live and available for replay at https://viavid.webcasts.com/starthere.jsp?ei=1609226&tp_key=dff562cf20 and via the investor relations section of the Company’s website here.

A replay of the webcast will be available after 7:30 p.m. Eastern Time through August 11, 2023.

Toll-free replay number:	1-844-512-2921
International replay number:	1-412-317-6671
Replay ID:	13738000

About Flux Power Holdings, Inc.

Flux Power (NASDAQ: FLUX) designs, manufactures, and sells advanced lithium-ion energy storage solutions for electrification of a range of industrial and commercial sectors including material handling, airport ground support equipment (GSE), and stationary energy storage. Flux Power’s lithium-ion battery packs, including the proprietary battery management system (BMS) and telemetry, provide customers with a better performing, lower cost of ownership, and more environmentally friendly alternative, in many instances, to traditional lead acid and propane-based solutions. Lithium-ion battery packs reduce CO2 emissions and help improve sustainability and ESG metrics for fleets. For more information, please visit www.fluxpower.com.

Forward-Looking Statements

This release contains projections and other “forward-looking statements” relating to Flux Power’s business, that are often identified using “believes,” “expects” or similar expressions. Forward-looking statements involve several estimates, assumptions, risks, and other uncertainties that may cause actual results to be materially different from those anticipated, believed, estimated, expected, etc. Such forward-looking statements include impact of COVID-19 on Flux Power’s business, results and financial condition; Flux Power’s ability to obtain raw materials and other supplies for its products at competitive prices and on a timely basis, particularly in light of the potential impact of the COVID-19 pandemic on its suppliers and supply chain; the development and success of new products, projected sales, deferral of shipments, Flux Power’s ability to fulfill backlog orders or realize profit from the contracts reflected in backlog sale; Flux Power’s ability to fulfill backlog orders due to changes in orders reflected in backlog sales, Flux Power’s ability to timely obtain UL Listing for its products, Flux Power’s ability to fund its operations, distribution partnerships and business opportunities and the uncertainties of customer acceptance and purchase of current and new products. Actual results could differ from those projected due to numerous factors and uncertainties. Although Flux Power believes that the expectations, opinions, projections, and comments reflected in these forward-looking statements are reasonable, they can give no assurance that such statements will prove to be correct, and that the Flux Power’s actual results of ‎operations, financial condition and performance will not differ materially from the ‎results of operations, financial condition and performance reflected or implied by these forward-‎looking statements. Undue reliance should not be placed on the forward-looking statements and Investors should refer to the risk factors outlined in our Form 10-K, 10-Q and other reports filed with the SEC and available at www.sec.gov/edgar. These forward-looking statements are made as of the date of this news release, and Flux Power assumes no obligation to update these statements or the reasons why actual results could differ from those projected.

Flux, Flux Power, and associated logos are trademarks of Flux Power Holdings, Inc. All other third-party brands, products, trademarks, or registered marks are the property of and used to identify the products or services of their respective owners.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20230427005015/en/

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MZ Group – MZ North America

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KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Other Energy Technology Manufacturing Batteries Energy Other Manufacturing

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April 27, 2023 10:09 am

Avenue Therapeutics to Present at Aegis Capital Virtual Conference

MIAMI, April 27, 2023 (GLOBE NEWSWIRE) — Avenue Therapeutics, Inc. (Nasdaq: ATXI) (“Avenue” or the “Company”), a specialty pharmaceutical company focused on the development and commercialization of therapies for the treatment of neurologic diseases, today announced that Alexandra MacLean, M.D., Chief Executive Officer, will present a corporate update at the Aegis Capital Virtual Conference taking place on Thursday, May 4, 2023, at 4:00 p.m. EDT.

The zoom link for the meeting will be available on the Events page of Avenue’s website: www.avenuetx.com for approximately 30 days following the meeting.

About Avenue Therapeutics

Avenue Therapeutics, Inc. (Nasdaq: ATXI) is a specialty pharmaceutical company focused on the development and commercialization of therapies for the treatment of neurologic diseases. It is currently developing three assets including AJ201, a first-in-class asset for spinal and bulbar muscular atrophy, BAER-101, an oral small molecule selective GABA-A α2/3 receptor positive allosteric modulator for CNS diseases, and IV Tramadol, which is in Phase 3 clinical development for the management of moderate-to-moderately-severe pain in adults in a medically supervised healthcare setting. Avenue is headquartered in Miami, FL and was founded by Fortress Biotech, Inc. (Nasdaq: FBIO). For more information, visit www.avenuetx.com.

Forward-Looking Statements

This press release contains predictive or “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of current or historical fact contained in this press release, including statements that express our intentions, plans, objectives, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “will,” “should,” “would” and similar expressions are intended to identify forward-looking statements. These statements are based on current expectations, estimates and projections made by management about our business, our industry and other conditions affecting our financial condition, results of operations or business prospects. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in, or implied by, the forward-looking statements due to numerous risks and uncertainties. Factors that could cause such outcomes and results to differ include, but are not limited to, risks and uncertainties arising from: expectations for increases or decreases in expenses; expectations for the clinical and pre-clinical development, manufacturing, regulatory approval, and commercialization of our pharmaceutical product candidate or any other products we may acquire or in-license; our use of clinical research centers and other contractors; expectations for incurring capital expenditures to expand our research and development and manufacturing capabilities; expectations for generating revenue or becoming profitable on a sustained basis; expectations or ability to enter into marketing and other partnership agreements; expectations or ability to enter into product acquisition and in-licensing transactions; expectations or ability to build our own commercial infrastructure to manufacture, market and sell our product candidates; acceptance of our products by doctors, patients or payors; our ability to compete against other companies and research institutions; our ability to secure adequate protection for our intellectual property; our ability to attract and retain key personnel; availability of reimbursement for our products; estimates of the sufficiency of our existing cash and cash equivalents and investments to finance our operating requirements, including expectations regarding the value and liquidity of our investments; the volatility of our stock price; expected losses; expectations for future capital requirements; and those risks discussed in our filings which we make with the SEC. Any forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this press release, except as required by applicable law. Investors should evaluate any statements made by us in light of these important factors.

Contact:

Jaclyn Jaffe
Avenue Therapeutics, Inc.
(781) 652-4500
[email protected]

April 27, 2023 10:08 am

Prelude Therapeutics to Participate in Three Healthcare Investor Conferences in May

WILMINGTON, Del., April 27, 2023 (GLOBE NEWSWIRE) — Prelude Therapeutics Incorporated (Nasdaq: PRLD), a clinical-stage precision oncology company, today announced that company executives will participate in three upcoming healthcare investment conferences.

Details are as follows:

H. C. Wainwright BioConnect Investor Conference at Nasdaq

Kris Vaddi, Ph.D., Chief Executive Officer will participate in a fireside chat on Tuesday, May 2, at 1:30 p.m. ET. The live webcast is available here. The Company will also host one-on-one investor meetings during the day.

Bank of America Securities 2023 Healthcare Conference

Jane Huang, MD, President and Chief Medical Officer and Laurent Chardonnet, Chief Financial Officer, will conduct one-on-one meetings on Wednesday, May 10 and Thursday May 11. Dr. Huang will participate in a fireside chat on May 10 at 4:20 p.m. PT/7:20 p.m. ET. The live webcast will be available here, and will be available for replay until August 11, 2023.

JMP Securities Life Sciences Conference
Dr. Vaddi and Mr. Chardonnet will conduct one-on-one meetings on Monday, May 15 and Tuesday May 16 and Dr. Vaddi will participate in a fireside chat at 12 noon ET, on May 15. The live webcast is available here and will be available for replay for 90 days.

About Prelude Therapeutics
Prelude Therapeutics is a clinical-stage precision oncology company developing innovative drug candidates targeting critical cancer cell pathways. The Company’s diverse pipeline is comprised of highly differentiated, potentially best-in-class or first-in-class proprietary small molecule compounds aimed at addressing clinically validated pathways for cancers with selectable underserved patients. Prelude’s pipeline includes four candidates currently in clinical development: PRT1419, a potent, selective inhibitor of MCL1, PRT2527, a potent and highly selective CDK9 inhibitor, PRT3645, a next generation CDK4/6 inhibitor, and PRT3789, an IV administered, potent and highly selective SMARCA2 degrader.

For more information, visit our website and follow us on LinkedIn and Twitter.

Investor Contact:
Lindsey Trickett
Vice President, Investor Relations
240.543.7970
[email protected]

Media Contact:
Helen Shik
Shik Communications
617.510.4373
[email protected]

April 27, 2023 10:08 am

ReShape Lifesciences® to Present Data on its Proprietary Diabetes Bloc-Stim Neuromodulation™ Device at the Keystone Symposia on Type 2 Diabetes

SAN CLEMENTE, Calif., April 27, 2023 (GLOBE NEWSWIRE) — ReShape Lifesciences™ (Nasdaq: RSLS), the premier physician-led weight loss and metabolic health solutions company, today announced it will present data on its proprietary Diabetes Bloc-Stim Neuromodulation™ (DBSN™) device in a poster at the Keystone Symposia on Type 2 Diabetes: Understanding its Early Drivers and the Road to Therapeutics, being held in Palm Springs, CA, May 1 – 4, 2023.

“Neuromodulation has demonstrated utility for the treatment of multiple diseases, representing a potential, unique treatment option for type 2 diabetes mellitus (T2DM), and we have demonstrated increased glycemic control in Zucker rodent and swine models of T2DM by utilizing sub-diaphragmatic vagus nerve neuromodulation with our DBSN™ device,” stated Jonathan Waataja, Director of Research at ReShape Lifesciences. “That said, there remains a need for treatments for T2DM in early- or pre-stage diabetes, a time that offers greater potential for strategies to delay or reverse diabetic progression. While lifestyle changes are often recommended to patients at this stage, there is a high degree of non-compliance. To this end, we tested two groups of swine that had attributes consistent of pre- and early-stage diabetes and determined that DBSN™ increased glycemic control in both groups. Hypothesizing that a barrier to utilizing this therapy, for diabetic patients, would be the willingness to have a device implanted. We surveyed 182 type 2 diabetics and found that 82% pursuing lifestyle modification would consider a device such as the DBSN.”

Poster Details:

Poster Title:
Targeted Dual Sub-Diaphragmatic Vagus Nerve Neuromodulation Increased Performance on Oral Glucose Tolerance Tests and Reversed Fasting Plasma Glucose from Pre-Diabetic to Non-Diabetic Levels in Alloxan Treated Swine with Mild Glucose Intolerance
Poster Number: 2004
Authors: Jonathan J Waataja, ReShape Lifesciences Inc.; Maneesh Shrivastav, Medtronic, Inc.; Charles J Billington, Veterans’ Administration Medical Center, Minneapolis, MN
Session: Poster Session 2
Date: Wednesday, May 3, 2023
Time: 7:30 pm PT

Increased glycemic control was demonstrated in a Zucker rodent model of T2DM by utilizing sub-diaphragmatic vagus nerve dual neuromodulation, utilizing reversible high frequency alternating current (at 5000 Hz) induced conduction block of the hepatic branch of the vagus nerve (innervating the liver), with simultaneous stimulation of the celiac branch of the vagus nerve (innervating the pancreas). The dual neuromodulation was found to be superior to standalone block or stimulation. These results were replicated in a chronic study in glucose intolerant alloxan treated swine. In both experiments, the animals demonstrated high fasting plasma glucose (FPG) and significant glucose intolerance, characteristics of an overt diabetic state. Subsequently, dual neuromodulation was tested on swine that had attributes consistent of pre- and early-stage diabetes, including non-alloxan and alloxan treated with mild glucose intolerance. Dual neuromodulation increased glycemic control in both groups which was demonstrated by increased performance on oral glucose tolerance tests (OGTTs) and also induced long lasting decreases in FPG. Following applications of block and stimulation (two days of separation), FPG decreased from an average of 102±8 mg/dL (considered prediabetic) to 74±2 mg/dL (considered non-diabetic).

“The compelling data on our proprietary DBSN™ device, presented at the Keystone Symposia on Type 2 Diabetes, further validates the market potential of this technology,” stated Paul F. Hickey, President and Chief Executive Officer of ReShape Lifesciences. “Backed by a strong intellectual property portfolio, the DBSN™ device’s dual vagus nerve neuromodulation selectively modulates vagal block and stimulation to the liver and pancreas, respectively, to manage insulin and blood glucose levels, which may be able to reduce patients’ dependence on medications in a very individualized manner. We will continue to collaborate with leading researchers and industry-leading strategic corporate partners, all while seeking additional NIH grant support for this program. If approved for commercial use, the DBSN™ device will further enhance our differentiated medical device offerings.”

About Diabetes Bloc-Stim Neuromodulation™ Device

The Diabetes Bloc-Stim Neuromodulation™ (DBSN™) system is a novel therapeutic concept that is implanted minimally invasively and delivers bio-electronic neuromodulation of vagus nerve branches that are innervating organs which regulate plasma glucose. The DBSN™ system stimulates vagus celiac fibers of the pancreas to release insulin during stimulation, while electrically blocking the hepatic vagal branch, innervating the liver, to decrease glucose release and decrease insulin resistance following nerve blockade. The DBSN™ system utilizes a proprietary, reversable and adjustable electrical blockade felt to be key to the future of personalized medicine. The DBSN™ system is superior to both standalone stimulation of the vagus nerve that has shown mixed results, and vagus nerve ligation that has undesirable effects.

About ReShape Lifesciences™

ReShape Lifesciences^® is America’s premier weight loss and metabolic health-solutions company, offering an integrated portfolio of proven products and services that manage and treat obesity and metabolic disease. The FDA-approved Lap-Band^® System provides minimally invasive, long-term treatment of obesity and is an alternative to more invasive surgical stapling procedures such as the gastric bypass or sleeve gastrectomy. ReShapeCare™ is a virtual weight-management program that supports lifestyle changes for all weight loss patients led by board-certified health coaches to help them keep the weight off over time. The recently launched ReShape Marketplace™ is an online collection of quality wellness products curated for all consumers to help them achieve their health goals. The investigational Diabetes Bloc-Stim Neuromodulation™ (DBSN™) system utilizes a proprietary vagus nerve block and stimulation technology platform for the treatment of Type 2 diabetes and metabolic disorders. The Obalon^® balloon technology is a non-surgical, swallowable, gas-filled intra-gastric balloon that is designed to provide long-lasting weight loss. For more information, please visit www.reshapelifesciences.com.

Forward-Looking Safe Harbor Statement

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those discussed due to known and unknown risks, uncertainties, and other factors. These forward-looking statements generally can be identified by the use of words such as “expect,” “plan,” “anticipate,” “could,” “may,” “intend,” “will,” “continue,” “future,” other words of similar meaning and the use of future dates. Forward-looking statements in this press release include statements about our the DBSN™ system’s potential treatment of T2DM. These and additional risks and uncertainties are described more fully in the company’s filings with the Securities and Exchange Commission, including those factors identified as “risk factors” in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. We are providing this information as of the date of this press release and do not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise, except as required by law.

CONTACTS

ReShape Lifesciences Investor Contact:

Thomas Stankovich
Chief Financial Officer
949-276-6042
[email protected]

Investor Relations Contact:

Rx Communications Group
Michael Miller
(917)-633-6086
[email protected]

April 27, 2023 10:07 am

Kearny Financial Corp. Announces Third Quarter Fiscal 2023 Results and Declaration of Cash Dividend

FAIRFIELD, N.J., April 27, 2023 (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, 2023 of $10.3 million, or $0.16 per diluted share, compared to $2.0 million, or $0.03 per diluted share, for the quarter ended December 31, 2022. Net income for the quarters ended March 31, 2023 and December 31, 2022 was impacted by various non-recurring items, as described in further detail below.

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on May 24, 2023 to stockholders of record as of May 10, 2023.

Craig L. Montanaro, President and Chief Executive Officer, commented, “While my comments in recent quarters have featured the terms ‘risk’ and ‘uncertainty’, the past few weeks have brought fresh challenges to the banking sector, and the economy at large. Despite the sudden failure of two large regional banks, the voluntary wind-down of a third and pressure on the industry as a whole, I am pleased to report that Kearny remains on solid footing. Our highly-diversified deposit base, conservative risk culture and abundance of available liquidity allows us to navigate these uncertain times, as we have throughout our 139 years in operation.”

Mr. Montanaro further noted, “Looking to this quarter’s earnings, the rate of our net interest margin compression has begun to slow, while our previously announced operating efficiency initiative has gotten off to a strong start. Non-interest expense, excluding non-recurring items, declined 7.3% quarter-over-quarter and will be further supported by the June 2023 consolidation of two branch locations.”

Liquidity & Funding

Deposits decreased $168.0 million, or 2.8%, to $5.80 billion at March 31, 2023, from $5.97 billion at December 31, 2022. Details regarding the change in deposit balances are presented in the table below. The decrease in deposits was largely concentrated in three products: consumer savings, commercial non-interest checking and government deposits. The decline in consumer savings reflected the continuation of a multi-quarter trend resulting from the migration of low-rate savings balances into higher-rate money market and time deposit products. The reduction in non-interest checking deposits was a combination of outflow and the migration of non-interest bearing commercial deposits into interest-bearing products. The decrease in government deposits was largely attributable to seasonal outflows resulting from expected tax and pension payments.

(Dollars in Thousands)	March 31, 2023		December 31, 2022		Variance or Change			Variance or Change Pct.
Government deposits	$	607,925	$	677,923	$	(69,998	)	(10.3	)%
Excluding government deposits:
Non-interest-bearing		615,696		649,044		(33,348	)	(5.1	)%
Interest-bearing demand		1,699,407		1,663,302		36,105		2.2	%
Savings		795,310		881,837		(86,527	)	(9.8	)%
Certificates of deposit		2,085,066		2,099,265		(14,199	)	(0.7	)%
Total deposits	$	5,803,404	$	5,971,371	$	(167,967	)	(2.8	)%

The aggregate amount of uninsured deposits was $1.68 billion at March 31, 2023. Excluding collateralized deposits of state and local governments, and deposits of the Bank’s wholly-owned subsidiary and holding company, the aggregate amount of uninsured deposits was $705.7 million, or 12.2% of total deposits.
Borrowings increased $228.1 million to $1.61 billion, or 19.3% of total assets, at March 31, 2023, from $1.38 billion, or 16.7% of total assets, at December 31, 2022. At March 31, 2023, borrowings were comprised of $1.54 billion of advances from the Federal Home Loan Bank of New York and $70.0 million from unsecured fed funds lines of credit. There were no borrowings outstanding from the Federal Reserve Bank at, or during the quarter ended, March 31, 2023.
At March 31, 2023, the Company maintained available secured borrowing capacity of $2.37 billion, of which $1.88 billion was immediately accessible via in-place collateral and $493.2 million represented the market value of unpledged securities.

Assets

Total assets increased $60.0 million, or 0.7%, to $8.35 billion at March 31, 2023, from $8.29 billion at December 31, 2022.
Cash and cash equivalents increased $118.9 million, or 157.2%, to $194.6 million at March 31, 2023, from $75.7 million at December 31, 2022. The increase was driven by the Company’s decision to hold excess cash on its balance sheet due to external market conditions.
Loans receivable decreased $17.8 million, or 0.3%, to $5.97 billion at March 31, 2023, from $5.98 billion at December 31, 2022.
Investment securities decreased $23.3 million to $1.42 billion, or 17.0% of total assets, at March 31, 2023, from $1.44 billion, or 17.4% of total assets, at December 31, 2022. The decrease was driven by paydowns, partially offset by a $9.7 million improvement in unrealized losses on securities available for sale during the quarter ended March 31, 2023.

Earnings

Performance Highlights

Return on average assets was 0.50% for the quarter ended March 31, 2023 compared to 0.10% for the quarter ended December 31, 2022.
Return on average equity was 4.69% and 0.90% for the quarters ended March 31, 2023 and December 31, 2022, respectively. Return on average tangible equity was 6.20% and 1.20% for those same comparative periods.

Net Interest Income and Net Interest Margin

Net interest margin contracted 18 basis points to 2.20% for the quarter ended March 31, 2023, from 2.38% for the quarter ended December 31, 2022. Excluding purchase accounting accretion and loan prepayment penalty income, net interest margin contracted 11 basis points.
Net interest income decreased $2.4 million to $42.4 million for the quarter ended March 31, 2023, from $44.8 million for the quarter ended December 31, 2022. Included in net interest income for the quarters ended March 31, 2023 and December 31, 2022, respectively, was purchase accounting accretion of $711,000 and $1.9 million, and loan prepayment penalty income of $103,000 and $166,000.

Non-Interest Income

Non-interest income increased $10.1 million to income of $1.6 million for the quarter ended March 31, 2023, from a loss of $8.5 million for the quarter ended December 31, 2022. The increase was primarily attributable to a loss of $15.2 million on the sale of securities during the prior comparative period.
Loss on sale of loans was $2.4 million for the quarter ended March 31, 2023 compared to a gain on sale of loans of $134,000 for the quarter ended December 31, 2022. The loss in the current period was the result of the sale of a non-performing multi-family mortgage loan held-for-sale located in Queens, NY. The loan was acquired in 2018 and had been classified as held-for-sale since June 30, 2022.
Other income decreased $2.7 million to $1.1 million for the quarter ended March 31, 2023, primarily due to a non-recurring gain of $2.9 million attributable to the sale of a former branch location recognized during the prior comparative period.

Non-Interest Expense

Non-interest expense decreased $2.3 million to $30.4 million for the quarter ended March 31, 2023, from $32.7 million for the quarter ended December 31, 2022. Excluding $800,000 of branch consolidation expense, of which $250,000 was recorded in occupancy expense and $550,000 was recorded in other expense, non-interest expense for the quarter ended March 31, 2023 was $29.6 million.
Salaries and benefits expense decreased $1.9 million to $18.0 million for the quarter ended March 31, 2023. This decrease was driven by lower salary expense as a result of reduced headcount and a decrease in incentive payments tied to loan origination volume.
The efficiency and non-interest expense ratios were 68.96% and 1.47%, respectively, for the quarter ended March 31, 2023, as compared to 89.93% and 1.62%, respectively, for the quarter ended December 31, 2022.

Income Taxes

Income tax expense totaled $2.9 million for the quarter ended March 31, 2023 compared to $33,000 for the quarter ended December 31, 2022, resulting in an effective tax rate of 22.0% and 1.7%, respectively. The effective tax rate, for the prior comparative period, was impacted by the loss on the sale of securities.

Asset Quality

The balance of non-performing assets decreased $5.2 million to $57.4 million, or 0.69% of total assets, at March 31, 2023, from $62.6 million, or 0.76% of total assets, at December 31, 2022. The decrease in non-performing assets was primarily attributable to the sale of a non-performing multi-family mortgage loan held-for-sale, as previously noted.
Net charge-offs totaled $206,000, or 0.01% of average loans, on an annualized basis, for the quarter ended March 31, 2023, compared to $407,000, or 0.03% of average loans, on an annualized basis, for the quarter ended December 31, 2022.
For the quarter ended March 31, 2023, the Company recorded a provision for credit losses of $451,000, compared to $1.7 million for the quarter ended December 31, 2022. The provision for the quarter ended March 31, 2023 was largely driven by a slower prepayment rate assumption, partially offset by a net reduction in reserves on loans individually analyzed for impairment.
The allowance for credit losses was $49.1 million, or 0.82% of total loans, at March 31, 2023, compared to $48.9 million, or 0.81% of total loans, at December 31, 2022.

Capital

For the quarter ended March 31, 2023, book value per share increased $0.04, or 0.3%, to $12.99 and tangible book value per share increased $0.01, or 0.1%, to $9.79.
During the quarter ended March 31, 2023, the Company repurchased 698,286 shares of common stock at a cost of $6.6 million, or $9.50 per share.
At March 31, 2023, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $100.4 million, partially offset by after-tax unrealized gains on derivatives of $27.5 million. Pre-tax net unrecognized losses on securities held to maturity of $13.6 million were not reflected in total stockholders’ equity.
At March 31, 2023, the Company’s tangible equity to tangible assets ratio equaled 8.02% and 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.

This earnings release should be read in conjunction with Kearny Financial Corp.’s Q3 Fiscal 2023 Investor Presentation, a copy of which is available through the Investor Relations link located at the bottom of the page of our website at www.kearnybank.com and via a Current Report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov.

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.

Category: Earnings

Linked-Quarter Comparative Financial Analysis


Kearny Financial Corp. Consolidated Balance Sheets (Unaudited)

(Dollars and Shares in Thousands, Except Per Share Data)	March 31, 2023			December 31, 2022			Variance or Change			Variance or Change Pct.
Assets
Cash and cash equivalents	$	194,568		$	75,660		$	118,908		157.2	%
Securities available for sale		1,267,066			1,286,354			(19,288	)	-1.5	%
Securities held to maturity		149,764			153,786			(4,022	)	-2.6	%
Loans held-for-sale		5,401			12,940			(7,539	)	-58.3	%
Loans receivable		5,966,325			5,984,133			(17,808	)	-0.3	%
Less: allowance for credit losses on loans		(49,122	)		(48,877	)		245		0.5	%
Net loans receivable		5,917,203			5,935,256			(18,053	)	-0.3	%
Premises and equipment		49,589			50,953			(1,364	)	-2.7	%
Federal Home Loan Bank stock		76,319			69,022			7,297		10.6	%
Accrued interest receivable		28,794			27,368			1,426		5.2	%
Goodwill		210,895			210,895			—		—	%
Core deposit intangible		2,590			2,732			(142	)	-5.2	%
Bank owned life insurance		291,220			289,673			1,547		0.5	%
Deferred income taxes, net		53,151			51,107			2,044		4.0	%
Other real estate owned		13,410			13,410			—		—	%
Other assets		89,366			110,162			(20,796	)	-18.9	%
Total assets	$	8,349,336		$	8,289,318		$	60,018		0.7	%

Liabilities
Deposits:
Non-interest-bearing	$	617,778		$	650,950		$	(33,172	)	-5.1	%
Interest-bearing		5,185,626			5,320,421			(134,795	)	-2.5	%
Total deposits		5,803,404			5,971,371			(167,967	)	-2.8	%
Borrowings		1,611,692			1,383,573			228,119		16.5	%
Advance payments by borrowers for taxes		18,706			17,307			1,399		8.1	%
Other liabilities		49,304			44,427			4,877		11.0	%
Total liabilities		7,483,106			7,416,678			66,428		0.9	%

Stockholders’ Equity
Common stock		667			674			(7	)	-1.0	%
Paid-in capital		509,359			515,332			(5,973	)	-1.2	%
Retained earnings		452,605			449,489			3,116		0.7	%
Unearned ESOP shares		(23,348	)		(23,834	)		486		2.0	%
Accumulated other comprehensive loss		(73,053	)		(69,021	)		(4,032	)	-5.8	%
Total stockholders’ equity		866,230			872,640			(6,410	)	-0.7	%
Total liabilities and stockholders’ equity	$	8,349,336		$	8,289,318		$	60,018		0.7	%

Consolidated capital ratios
Equity to assets		10.37	%		10.53	%		-0.16	%
Tangible equity to tangible assets ⁽¹⁾		8.02	%		8.16	%		-0.14	%

Share data
Outstanding shares		66,680			67,388			(708	)	-1.1	%
Book value per share	$	12.99		$	12.95		$	0.04		0.3	%
Tangible book value per share ⁽²⁾	$	9.79		$	9.78		$	0.01		0.1	%

_________________________

(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)

(Dollars and Shares in Thousands, Except Per Share Data)	Three Months Ended						Variance or Change			Variance or Change Pct.
(Dollars and Shares in Thousands, Except Per Share Data)	March 31, 2023			December 31, 2022			Variance or Change			Variance or Change Pct.
Interest income
Loans	$	60,172		$	57,996		$	2,176		3.8	%
Taxable investment securities		15,459			13,221			2,238		16.9	%
Tax-exempt investment securities		99			219			(120	)	-54.8	%
Other interest-earning assets		1,441			1,005			436		43.4	%
Total interest income		77,171			72,441			4,730		6.5	%

Interest expense
Deposits		22,246			18,822			3,424		18.2	%
Borrowings		12,554			8,836			3,718		42.1	%
Total interest expense		34,800			27,658			7,142		25.8	%
Net interest income		42,371			44,783			(2,412	)	-5.4	%
Provision for credit losses		451			1,671			(1,220	)	-73.0	%
Net interest income after provision for credit losses		41,920			43,112			(1,192	)	-2.8	%

Non-interest income
Fees and service charges		910			734			176		24.0	%
Loss on sale and call of securities		—			(15,227	)		15,227		100.0	%
(Loss) gain on sale of loans		(2,373	)		134			(2,507	)	-1870.9	%
Income from bank owned life insurance		1,581			1,761			(180	)	-10.2	%
Electronic banking fees and charges		457			397			60		15.1	%
Other income		1,071			3,723			(2,652	)	-71.2	%
Total non-interest income		1,646			(8,478	)		10,124		-119.4	%

Non-interest expense
Salaries and employee benefits		18,005			19,921			(1,916	)	-9.6	%
Net occupancy expense of premises		3,097			2,987			110		3.7	%
Equipment and systems		3,537			3,867			(330	)	-8.5	%
Advertising and marketing		413			731			(318	)	-43.5	%
Federal deposit insurance premium		1,546			1,226			320		26.1	%
Directors’ compensation		340			339			1		0.3	%
Other expense		3,414			3,579			(165	)	-4.6	%
Total non-interest expense		30,352			32,650			(2,298	)	-7.0	%
Income before income taxes		13,214			1,984			11,230		566.0	%
Income taxes		2,902			33			2,869		8693.9	%
Net income	$	10,312		$	1,951		$	8,361		428.5	%

Net income per common share (EPS)
Basic	$	0.16		$	0.03		$	0.13
Diluted	$	0.16		$	0.03		$	0.13

Dividends declared
Cash dividends declared per common share	$	0.11		$	0.11		$	—
Cash dividends declared	$	7,196		$	7,172		$	24
Dividend payout ratio		69.8	%		367.6	%	(297.8		)%

Weighted average number of common shares outstanding
Basic		64,769			65,030			(261	)
Diluted		64,783			65,038			(255	)


Kearny Financial Corp. Average Balance Sheet Data (Unaudited)

(Dollars in Thousands)	Three Months Ended						Variance or Change			Variance or Change Pct.
(Dollars in Thousands)	March 31, 2023			December 31, 2022			Variance or Change			Variance or Change Pct.
Assets
Interest-earning assets:
Loans receivable, including loans held for sale	$	5,986,669		$	5,839,903		$	146,766		2.5	%
Taxable investment securities		1,558,222			1,527,578			30,644		2.0	%
Tax-exempt investment securities		17,663			37,917			(20,254	)	-53.4	%
Other interest-earning assets		131,682			114,175			17,507		15.3	%
Total interest-earning assets		7,694,236			7,519,573			174,663		2.3	%
Non-interest-earning assets		575,009			550,519			24,490		4.4	%
Total assets	$	8,269,245		$	8,070,092		$	199,153		2.5	%

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand	$	2,363,762		$	2,359,977		$	3,785		0.2	%
Savings		858,673			931,584			(72,911	)	-7.8	%
Certificates of deposit		2,069,396			2,192,722			(123,326	)	-5.6	%
Total interest-bearing deposits		5,291,831			5,484,283			(192,452	)	-3.5	%
Borrowings:
Federal Home Loan Bank advances		1,402,269			997,148			405,121		40.6	%
Other borrowings		1,611			—			1,611		—	%
Total borrowings		1,403,880			997,148			406,732		40.8	%
Total interest-bearing liabilities		6,695,711			6,481,431			214,280		3.3	%
Non-interest-bearing liabilities:
Non-interest-bearing deposits		634,324			666,846			(32,522	)	-4.9	%
Other non-interest-bearing liabilities		60,327			56,721			3,606		6.4	%
Total non-interest-bearing liabilities		694,651			723,567			(28,916	)	-4.0	%
Total liabilities		7,390,362			7,204,998			185,364		2.6	%
Stockholders’ equity		878,883			865,094			13,789		1.6	%
Total liabilities and stockholders’ equity	$	8,269,245		$	8,070,092		$	199,153		2.5	%

Average interest-earning assets to average interest-bearing liabilities		114.91	%		116.02	%		-1.11	%	-1.0	%


Kearny Financial Corp. Performance Ratio Highlights (Unaudited)

	Three Months Ended				Variance or Change
	March 31, 2023		December 31, 2022		Variance or Change
Average yield on interest-earning assets:
Loans receivable, including loans held for sale	4.02	%	3.97	%	0.05	%
Taxable investment securities	3.97	%	3.46	%	0.51	%
Tax-exempt investment securities ⁽¹⁾	2.23	%	2.32	%	-0.09	%
Other interest-earning assets	4.38	%	3.52	%	0.86	%
Total interest-earning assets	4.01	%	3.85	%	0.16	%

Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand	2.01	%	1.63	%	0.38	%
Savings	0.41	%	0.41	%	—	%
Certificates of deposit	1.84	%	1.50	%	0.34	%
Total interest-bearing deposits	1.68	%	1.37	%	0.31	%
Borrowings:
Federal Home Loan Bank advances	3.58	%	3.54	%	0.04	%
Other borrowings	5.15	%	—	%	5.15	%
Total borrowings	3.58	%	3.54	%	0.04	%
Total interest-bearing liabilities	2.08	%	1.71	%	0.37	%

Interest rate spread ⁽²⁾	1.93	%	2.14	%	-0.21	%
Net interest margin ⁽³⁾	2.20	%	2.38	%	-0.18	%

Non-interest income to average assets (annualized)	0.08	%	-0.42	%	0.50	%
Non-interest expense to average assets (annualized)	1.47	%	1.62	%	-0.15	%

Efficiency ratio ⁽⁴⁾	68.96	%	89.93	%	-20.97	%

Return on average assets (annualized)	0.50	%	0.10	%	0.40	%
Return on average equity (annualized)	4.69	%	0.90	%	3.79	%
Return on average tangible equity (annualized) ⁽⁵⁾	6.20	%	1.20	%	5.00	%

_________________________

(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.
(5)		Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets.


Five-Quarter Financial Trend Analysis


Kearny Financial Corp. Consolidated Balance Sheets

(Dollars and Shares in Thousands, Except Per Share Data)	March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022
	(Unaudited)			(Unaudited)			(Unaudited)			(Audited)			(Unaudited)
Assets
Cash and cash equivalents	$	194,568		$	75,660		$	96,076		$	101,615		$	62,379
Securities available for sale		1,267,066			1,286,354			1,263,176			1,344,093			1,526,086
Securities held to maturity		149,764			153,786			115,943			118,291			121,853
Loans held-for-sale		5,401			12,940			12,936			28,874			2,822
Loans receivable		5,966,325			5,984,133			5,656,370			5,417,845			5,003,201
Less: allowance for credit losses on loans		(49,122	)		(48,877	)		(47,613	)		(47,058	)		(43,860	)
Net loans receivable		5,917,203			5,935,256			5,608,757			5,370,787			4,959,341
Premises and equipment		49,589			50,953			52,642			53,281			53,727
Federal Home Loan Bank stock		76,319			69,022			44,957			47,144			30,997
Accrued interest receivable		28,794			27,368			23,817			20,466			19,517
Goodwill		210,895			210,895			210,895			210,895			210,895
Core deposit intangible		2,590			2,732			2,876			3,020			3,166
Bank owned life insurance		291,220			289,673			289,690			289,177			287,644
Deferred income taxes, net		53,151			51,107			54,278			49,350			34,349
Other real estate owned		13,410			13,410			178			178			401
Other assets		89,366			110,162			113,369			82,712			76,714
Total assets	$	8,349,336		$	8,289,318		$	7,889,590		$	7,719,883		$	7,389,891

Liabilities
Deposits:
Non-interest-bearing	$	617,778		$	650,950		$	683,406		$	653,899		$	621,954
Interest-bearing		5,185,626			5,320,421			5,424,872			5,208,357			4,906,708
Total deposits		5,803,404			5,971,371			6,108,278			5,862,256			5,528,662
Borrowings		1,611,692			1,383,573			851,454			901,337			851,220
Advance payments by borrowers for taxes		18,706			17,307			16,555			16,746			16,979
Other liabilities		49,304			44,427			38,329			45,544			37,861
Total liabilities		7,483,106			7,416,678			7,014,616			6,825,883			6,434,722

Stockholders’ Equity
Common stock		667			674			680			687			714
Paid-in capital		509,359			515,332			520,245			528,396			561,176
Retained earnings		452,605			449,489			454,710			445,451			441,522
Unearned ESOP shares		(23,348	)		(23,834	)		(24,321	)		(24,807	)		(25,294	)
Accumulated other comprehensive loss		(73,053	)		(69,021	)		(76,340	)		(55,727	)		(22,949	)
Total stockholders’ equity		866,230			872,640			874,974			894,000			955,169
Total liabilities and stockholders’ equity	$	8,349,336		$	8,289,318		$	7,889,590		$	7,719,883		$	7,389,891

Consolidated capital ratios
Equity to assets		10.37	%		10.53	%		11.09	%		11.58	%		12.93	%
Tangible equity to tangible assets ⁽¹⁾		8.02	%		8.16	%		8.61	%		9.06	%		10.33	%

Share data
Outstanding shares		66,680			67,388			67,938			68,666			71,424
Book value per share	$	12.99		$	12.95		$	12.88		$	13.02		$	13.37
Tangible book value per share ⁽²⁾	$	9.79		$	9.78		$	9.73		$	9.90		$	10.38

_________________________

(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. Supplemental Balance Sheet Highlights (Unaudited)

(Dollars in Thousands)	March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022
Loan portfolio composition:
Commercial loans:
Multi-family mortgage	$	2,835,852		$	2,851,721		$	2,570,297		$	2,409,090		$	2,076,003
Nonresidential mortgage		1,002,643			1,017,341			1,040,688			1,019,838			1,085,988
Commercial business		162,038			177,530			186,361			176,807			169,551
Construction		215,524			186,663			166,052			140,131			121,137
Total commercial loans		4,216,057			4,233,255			3,963,398			3,745,866			3,452,679
One- to four-family residential mortgage		1,713,343			1,719,514			1,666,730			1,645,816			1,527,980
Consumer loans:
Home equity loans		44,376			45,690			43,269			42,028			41,501
Other consumer		2,592			2,648			2,869			2,866			2,755
Total consumer loans		46,968			48,338			46,138			44,894			44,256
Total loans, excluding yield adjustments		5,976,368			6,001,107			5,676,266			5,436,576			5,024,915
Unaccreted yield adjustments		(10,043	)		(16,974	)		(19,896	)		(18,731	)		(21,714	)
Loans receivable, net of yield adjustments		5,966,325			5,984,133			5,656,370			5,417,845			5,003,201
Less: allowance for credit losses on loans		(49,122	)		(48,877	)		(47,613	)		(47,058	)		(43,860	)
Net loans receivable	$	5,917,203		$	5,935,256		$	5,608,757		$	5,370,787		$	4,959,341

Asset quality:
Nonperforming assets:
Accruing loans – 90 days and over past due	$	—		$	—		$	—		$	—		$	—
Nonaccrual loans		44,026			40,549			68,574			70,321			80,595
Total nonperforming loans		44,026			40,549			68,574			70,321			80,595
Nonaccrual loans held-for-sale		—			8,650			8,650			21,745			—
Other real estate owned		13,410			13,410			178			178			401
Total nonperforming assets	$	57,436		$	62,609		$	77,402		$	92,244		$	80,996

Nonperforming loans (% total loans)		0.74	%		0.68	%		1.21	%		1.30	%		1.61	%
Nonperforming assets (% total assets)		0.69	%		0.76	%		0.98	%		1.19	%		1.10	%

Classified loans	$	103,461		$	86,069		$	92,610		$	94,555		$	163,621

Allowance for credit losses on loans (ACL):
ACL to total loans		0.82	%		0.81	%		0.84	%		0.87	%		0.87	%
ACL to nonperforming loans		111.57	%		120.54	%		69.43	%		66.92	%		54.42	%
Net charge-offs	$	206		$	407		$	115		$	1,024		$	436
Average net charge-off rate (annualized)		0.01	%		0.03	%		0.01	%		0.08	%		0.04	%


Kearny Financial Corp. Supplemental Balance Sheet Highlights (Unaudited)

(Dollars in Thousands)	March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022
Funding composition:
Deposits:
Non-interest-bearing deposits	$	617,778		$	650,950		$	683,406		$	653,899		$	621,954
Interest-bearing demand		2,285,799			2,316,485			2,382,411			2,265,597			2,154,488
Savings		811,483			901,514			982,916			1,053,198			1,088,974
Certificates of deposit (retail)		1,327,343			1,354,907			1,263,124			1,116,035			1,122,228
Certificates of deposit (brokered and listing service)		761,001			747,515			796,421			773,527			541,018
Interest-bearing deposits		5,185,626			5,320,421			5,424,872			5,208,357			4,906,708
Total deposits		5,803,404			5,971,371			6,108,278			5,862,256			5,528,662

Borrowings:
Federal Home Loan Bank advances		1,156,692			1,256,573			796,454			651,337			541,220
Overnight borrowings		455,000			127,000			55,000			250,000			310,000
Total borrowings		1,611,692			1,383,573			851,454			901,337			851,220

Total funding	$	7,415,096		$	7,354,944		$	6,959,732		$	6,763,593		$	6,379,882

Loans as a % of deposits		102.1	%		99.6	%		92.0	%		92.1	%		89.8	%
Deposits as a % of total funding		78.3	%		81.2	%		87.8	%		86.7	%		86.7	%
Borrowings as a % of total funding		21.7	%		18.8	%		12.2	%		13.3	%		13.3	%

Uninsured deposits:
Uninsured deposits (reported) ⁽¹⁾	$	1,678,051		$	1,815,854		$	1,771,851		$	1,525,940		$	1,427,658
Uninsured deposits (adjusted) ⁽²⁾	$	705,727		$	794,407		$	883,351		$	792,067		$	749,141

_________________________

(1)		Uninsured deposits of Kearny Bank.
(2)		Uninsured deposits of Kearny Bank adjusted to exclude deposits of its wholly-owned subsidiary and holding company and collateralized deposits of state and local governments.


Kearny Financial Corp. Consolidated Statements of Income (Unaudited)

	Three Months Ended
(Dollars and Shares in Thousands, Except Per Share Data)	March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022
Interest income
Loans	$	60,172		$	57,996		$	52,935		$	48,869		$	45,846
Taxable investment securities		15,459			13,221			10,439			8,915			8,024
Tax-exempt investment securities		99			219			285			297			316
Other interest-earning assets		1,441			1,005			761			472			415
Total interest income		77,171			72,441			64,420			58,553			54,601

Interest expense
Deposits		22,246			18,822			10,869			3,915			3,565
Borrowings		12,554			8,836			5,020			4,039			3,309
Total interest expense		34,800			27,658			15,889			7,954			6,874
Net interest income		42,371			44,783			48,531			50,599			47,727
Provision for (reversal of) credit losses		451			1,671			670			4,222			(3,920	)
Net interest income after provision for (reversal of) credit losses		41,920			43,112			47,861			46,377			51,647

Non-interest income
Fees and service charges		910			734			763			658			617
(Loss) gain on sale and call of securities		—			(15,227	)		—			(563	)		3
(Loss) gain on sale of loans		(2,373	)		134			395			187			376
(Loss) gain on sale of other real estate owned		—			—			—			(9	)		14
Income from bank owned life insurance		1,581			1,761			3,698			1,533			1,511
Electronic banking fees and charges		457			397			506			366			432
Other income		1,071			3,723			555			638			238
Total non-interest income		1,646			(8,478	)		5,917			2,810			3,191

Non-interest expense
Salaries and employee benefits		18,005			19,921			20,348			20,367			19,184
Net occupancy expense of premises		3,097			2,987			3,090			3,188			3,223
Equipment and systems		3,537			3,867			3,662			4,516			3,822
Advertising and marketing		413			731			747			703			516
Federal deposit insurance premium		1,546			1,226			906			762			480
Directors’ compensation		340			339			340			340			340
Other expense		3,414			3,579			2,895			3,736			3,058
Total non-interest expense		30,352			32,650			31,988			33,612			30,623
Income before income taxes		13,214			1,984			21,790			15,575			24,215
Income taxes		2,902			33			5,255			4,205			6,522
Net income	$	10,312		$	1,951		$	16,535		$	11,370		$	17,693

Net income per common share (EPS)
Basic	$	0.16		$	0.03		$	0.25		$	0.17		$	0.25
Diluted	$	0.16		$	0.03		$	0.25		$	0.17		$	0.25

Dividends declared
Cash dividends declared per common share	$	0.11		$	0.11		$	0.11		$	0.11		$	0.11
Cash dividends declared	$	7,196		$	7,172		$	7,276		$	7,441		$	7,720
Dividend payout ratio		69.8	%		367.6	%		44.0	%		65.4	%		43.6	%

Weighted average number of common shares outstanding
Basic		64,769			65,030			65,737			67,240			69,790
Diluted		64,783			65,038			65,756			67,276			69,817


Kearny Financial Corp. Average Balance Sheet Data (Unaudited)

	Three Months Ended
(Dollars in Thousands)	March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022
Assets
Interest-earning assets:
Loans receivable, including loans held-for-sale	$	5,986,669		$	5,839,903		$	5,553,996		$	5,181,983		$	4,850,236
Taxable investment securities		1,558,222			1,527,578			1,516,974			1,608,372			1,620,996
Tax-exempt investment securities		17,663			37,917			48,973			51,672			55,390
Other interest-earning assets		131,682			114,175			88,038			87,990			79,644
Total interest-earning assets		7,694,236			7,519,573			7,207,981			6,930,017			6,606,266
Non-interest-earning assets		575,009			550,519			570,225			564,734			601,684
Total assets	$	8,269,245		$	8,070,092		$	7,778,206		$	7,494,751		$	7,207,950

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand	$	2,363,762		$	2,359,977		$	2,354,340		$	2,155,946		$	2,133,977
Savings		858,673			931,584			1,019,343			1,077,631			1,088,351
Certificates of deposit		2,069,396			2,192,722			2,014,922			1,701,725			1,650,048
Total interest-bearing deposits		5,291,831			5,484,283			5,388,605			4,935,302			4,872,376
Borrowings:
Federal Home Loan Bank advances		1,402,269			997,148			642,399			752,579			632,811
Other borrowings		1,611			—			127,456			185,901			51,667
Total borrowings		1,403,880			997,148			769,855			938,480			684,478
Total interest-bearing liabilities		6,695,711			6,481,431			6,158,460			5,873,782			5,556,854
Non-interest-bearing liabilities:
Non-interest-bearing deposits		634,324			666,846			667,624			640,200			624,152
Other non-interest-bearing liabilities		60,327			56,721			56,431			56,636			49,455
Total non-interest-bearing liabilities		694,651			723,567			724,055			696,836			673,607
Total liabilities		7,390,362			7,204,998			6,882,515			6,570,618			6,230,461
Stockholders’ equity		878,883			865,094			895,691			924,133			977,489
Total liabilities and stockholders’ equity	$	8,269,245		$	8,070,092		$	7,778,206		$	7,494,751		$	7,207,950

Average interest-earning assets to average interest-bearing liabilities		114.91	%		116.02	%		117.04	%		117.98	%		118.89	%


Kearny Financial Corp. Performance Ratio Highlights

	Three Months Ended
	March 31, 2023		December 31, 2022		September 30, 2022		June 30, 2022		March 31, 2022
Average yield on interest-earning assets:
Loans receivable, including loans held-for-sale	4.02	%	3.97	%	3.81	%	3.77	%	3.78	%
Taxable investment securities	3.97	%	3.46	%	2.75	%	2.22	%	1.98	%
Tax-exempt investment securities ⁽¹⁾	2.23	%	2.32	%	2.33	%	2.30	%	2.28	%
Other interest-earning assets	4.38	%	3.52	%	3.46	%	2.15	%	2.08	%
Total interest-earning assets	4.01	%	3.85	%	3.57	%	3.38	%	3.31	%

Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand	2.01	%	1.63	%	0.92	%	0.31	%	0.22	%
Savings	0.41	%	0.41	%	0.23	%	0.11	%	0.10	%
Certificates of deposit	1.84	%	1.50	%	0.97	%	0.46	%	0.52	%
Total interest-bearing deposits	1.68	%	1.37	%	0.81	%	0.32	%	0.29	%
Borrowings:
Federal Home Loan Bank advances	3.58	%	3.54	%	2.68	%	1.96	%	2.08	%
Other borrowings	5.15	%	—	%	2.26	%	0.77	%	0.17	%
Total borrowings	3.58	%	3.54	%	2.61	%	1.72	%	1.93	%
Total interest-bearing liabilities	2.08	%	1.71	%	1.03	%	0.54	%	0.49	%

Interest rate spread ⁽²⁾	1.93	%	2.14	%	2.54	%	2.84	%	2.82	%
Net interest margin ⁽³⁾	2.20	%	2.38	%	2.69	%	2.92	%	2.89	%

Non-interest income to average assets (annualized)	0.08	%	-0.42	%	0.30	%	0.15	%	0.18	%
Non-interest expense to average assets (annualized)	1.47	%	1.62	%	1.65	%	1.79	%	1.70	%

Efficiency ratio ⁽⁴⁾	68.96	%	89.93	%	58.75	%	62.93	%	60.14	%

Return on average assets (annualized)	0.50	%	0.10	%	0.85	%	0.61	%	0.98	%
Return on average equity (annualized)	4.69	%	0.90	%	7.38	%	4.92	%	7.24	%
Return on average tangible equity (annualized) ⁽⁵⁾	6.20	%	1.20	%	9.70	%	6.40	%	9.27	%

_________________________

(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.

The following tables provide a reconciliation of certain financial measures calculated in accordance with Generally Accepted Accounting Principles (“GAAP”) (as reported) and non-GAAP measures. These non-GAAP measures provide additional information which allow readers to evaluate the ongoing performance of the Company. They are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. In all cases, it should be understood that non-GAAP per share measures do not depict amounts that accrue directly to the benefit of shareholders.


Kearny Financial Corp. Reconciliation of GAAP to Non-GAAP (Unaudited)

	Three Months Ended
(Dollars and Shares in Thousands, Except Per Share Data)	March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022
Adjusted net income:
Net income (GAAP)	$	10,312		$	1,951		$	16,535		$	11,370		$	17,693
Non-recurring transactions – net of tax:
Branch consolidation expenses		568			—			—			—			—
Net effect of sale and call of securities		—			10,811			—			400			(2	)
Net effect of sale of other assets		—			(2,081	)		—			—			—
Severance expense from workforce realignment		—			538			—			—			—
Early contract termination		—			—			—			568			—
Adjusted net income	$	10,880		$	11,219		$	16,535		$	12,338		$	17,691

Calculation of pre-tax, pre-provision net revenue:
Net income (GAAP)	$	10,312		$	1,951		$	16,535		$	11,370		$	17,693
Adjustments to net income (GAAP):
Provision for income taxes		2,902			33			5,255			4,205			6,522
Provision for (reversal of) credit losses		451			1,671			670			4,222			(3,920	)
Pre-tax, pre-provision net revenue (non-GAAP)	$	13,665		$	3,655		$	22,460		$	19,797		$	20,295

Adjusted earnings per share:
Weighted average common shares – basic		64,769			65,030			65,737			67,240			69,790
Weighted average common shares – diluted		64,783			65,038			65,756			67,276			69,817

Earnings per share – basic (GAAP)	$	0.16		$	0.03		$	0.25		$	0.17		$	0.25
Earnings per share – diluted (GAAP)	$	0.16		$	0.03		$	0.25		$	0.17		$	0.25

Adjusted earnings per share – basic (non-GAAP)	$	0.17		$	0.17		$	0.25		$	0.18		$	0.25
Adjusted earnings per share – diluted (non-GAAP)	$	0.17		$	0.17		$	0.25		$	0.18		$	0.25

Pre-tax, pre-provision net revenue per share:
Pre-tax, pre-provision net revenue per share – basic (non-GAAP)	$	0.21		$	0.06		$	0.34		$	0.29		$	0.29
Pre-tax, pre-provision net revenue per share – diluted (non-GAAP)	$	0.21		$	0.06		$	0.34		$	0.29		$	0.29

Adjusted return on average assets:
Total average assets	$	8,269,245		$	8,070,092		$	7,778,206		$	7,494,751		$	7,207,950

Return on average assets (GAAP)		0.50	%		0.10	%		0.85	%		0.61	%		0.98	%
Adjusted return on average assets (non-GAAP)		0.53	%		0.56	%		0.85	%		0.66	%		0.98	%

Adjusted return on average equity:
Total average equity	$	878,883		$	865,094		$	895,691		$	924,133		$	977,489

Return on average equity (GAAP)		4.69	%		0.90	%		7.38	%		4.92	%		7.24	%
Adjusted return on average equity (non-GAAP)		4.95	%		5.19	%		7.38	%		5.34	%		7.24	%


Kearny Financial Corp. Reconciliation of GAAP to Non-GAAP (Unaudited)

	Three Months Ended
(Dollars and Shares in Thousands, Except Per Share Data)	March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022
Adjusted return on average tangible equity:
Total average equity	$	878,883		$	865,094		$	895,691		$	924,133		$	977,489
Less: average goodwill		(210,895	)		(210,895	)		(210,895	)		(210,895	)		(210,895	)
Less: average other intangible assets		(2,683	)		(2,826	)		(2,971	)		(3,116	)		(3,282	)
Total average tangible equity	$	665,305		$	651,373		$	681,825		$	710,122		$	763,312

Return on average tangible equity (non-GAAP)		6.20	%		1.20	%		9.70	%		6.40	%		9.27	%
Adjusted return on average tangible equity (non-GAAP)		6.54	%		6.89	%		9.70	%		6.95	%		9.27	%

Adjusted non-interest expense ratio:
Non-interest expense (GAAP)	$	30,352		$	32,650		$	31,988		$	33,612		$	30,623
Non-recurring transactions:
Branch consolidation expenses		(800	)		—			—			—			—
Severance expense from workforce realignment		—			(757	)		—			—			—
Early contract termination		—			—			—			(800	)		—
Non-interest expense (non-GAAP)	$	29,552		$	31,893		$	31,988		$	32,812		$	30,623

Non-interest expense ratio (GAAP)		1.47	%		1.62	%		1.65	%		1.79	%		1.70	%
Adjusted non-interest expense ratio (non-GAAP)		1.43	%		1.58	%		1.65	%		1.75	%		1.70	%

Adjusted efficiency ratio:
Non-interest expense (non-GAAP)	$	29,552		$	31,893		$	31,988		$	32,812		$	30,623

Net interest income (GAAP)	$	42,371		$	44,783		$	48,531		$	50,599		$	47,727
Total non-interest income (GAAP)		1,646			(8,478	)		5,917			2,810			3,191
Non-recurring transactions:
Net effect of sale and call of securities		—			15,227			—			563			(3	)
Net effect of sale of other assets		—			(2,931	)		—			—			—
Total revenue (non-GAAP)	$	44,017		$	48,601		$	54,448		$	53,972		$	50,915

Efficiency ratio (GAAP)		68.96	%		89.93	%		58.75	%		62.93	%		60.14	%
Adjusted efficiency ratio (non-GAAP)		67.14	%		65.62	%		58.75	%		60.79	%		60.15	%

For further information contact:
Craig L. Montanaro, President and Chief Executive Officer, or
Keith Suchodolski, Senior Executive Vice President and Chief Financial Officer
Kearny Financial Corp.
(973) 244-4500

April 27, 2023 10:06 am

Hanmi Financial Declares Cash Dividend of $0.25 per share

LOS ANGELES, April 27, 2023 (GLOBE NEWSWIRE) — Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today announced that its Board of Directors declared a cash dividend on its common stock for the 2023 second quarter of $0.25 per share. The dividend will be paid on May 24, 2023, to stockholders of record as of the close of business on May 8, 2023.

About Hanmi Financial Corporation

Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 35 full-service branches and eight loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com.

Investor Contacts:

Romolo (Ron) Santarosa
Senior Executive Vice President & Chief Financial Officer
213-427-5636

Larry Clark, CFA
Investor Relations
Financial Profiles, Inc.
[email protected]
310-622-8223

April 27, 2023 10:06 am

Eaton Partners Serves as Exclusive Global Placement Agent to Solum Partners

Solum Partners Fund II Closes Oversubscribed With $850 Million in Capital Commitments to Pursue Food and Agriculture Investments

STAMFORD, Conn., April 27, 2023 (GLOBE NEWSWIRE) — Eaton Partners (“Eaton”), one of the largest placement agents and financial advisory firms and a wholly owned subsidiary of Stifel Financial Corp. (NYSE: SF), is pleased to announce that it served as exclusive global placement agent for Solum Partners (“Solum”) and its Solum Partners Fund II, L.P. (“Fund II”). The Fund closed oversubscribed with approximately $850 million in capital commitments.

Solum is a leading alternative asset manager investing in the food and agriculture industry utilizing a proven, hands-on approach anchored in the deep industry knowledge of its team. Solum focuses on forming strong local partnerships with the objective of achieving operational excellence and continuous improvement across all of its portfolio companies.

“As the global agriculture and food production industry continues to evolve, businesses have needed to adapt and meaningfully scale operations to keep pace,” said Uli Flores, Head of Real Assets at Eaton Partners. “Solum’s approach to the food and agriculture sector is highly differentiated, which allowed us to secure a diverse, yet like-minded, investor base, and we are proud to have been a part of the outstanding fundraising efforts.”

“We appreciate the work of Eaton Partners and are encouraged by the strong demand and enthusiasm shown by our investors, especially when considering the current geopolitical and macroeconomic landscape,” noted Colin Butterfield, CEO of Solum Partners. “Through our unique owner-operator approach, we are proud to partner with farmers and industry leaders to not only provide capital but also foster operational improvements and leverage vertical integration to ensure they are positioned for continued and accelerated success. It is a privilege to be entrusted with this capital, and we look forward to continuing to identify and manage sustainable food and agriculture assets in the pursuit of attractive risk-adjusted returns.”

Fund II is the second vehicle managed by Solum Partners since its spinout from Harvard Management Company in October 2020. The firm has approximately $2 billion of assets under management.

About Eaton Partners

Eaton Partners, is one of the world’s largest capital placement agents and fund advisory firms, having raised more than $130 billion for over 175 highly differentiated alternative investment funds and offerings. Eaton Partners is a division of Stifel, Nicolaus & Company, Incorporated, Member SIPC and NYSE. For more information, please visit https://eaton-partners.com/.

About Stifel

Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri, that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel’s broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated, including its Eaton Partners business division; Keefe, Bruyette & Woods, Inc.; Miller Buckfire & Co., LLC; and Stifel Independent Advisors, LLC. The Company’s broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank and Stifel Bank & Trust offer a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. and Stifel Trust Company Delaware, N.A. offer trust and related services. To learn more about Stifel, please visit the Company’s website at www.stifel.com. For global disclosures, please visit https://www.stifel.com/investor-relations/press-releases.

About Solum Partners

Solum Partners, headquartered in Boston, Massachusetts, manages approximately $2 billion in assets within the agriculture and food production industry as of March 31, 2023. The firm utilizes its hands-on approach and industry knowledge to enhance the value of its investments and deliver attractive risk-adjusted returns for investors. The firm’s strategy is driven by a focus on strong partnerships, operational excellence, and continuous improvement and is underpinned by a comprehensive approach to ESG. For more information, please visit https://solumpartners.com/ or contact [email protected].

Media Contact

Neil Shapiro, +1 (212) 271-3447
[email protected]