SEC Company Response from Kearny Financial Corp. (CIK 0001295664) — Dec 1, 2004
Kearny Financial Corp. (CIK 0001295664)
Date: Dec. 1, 2004 · CIK: 0001295664 · Accession: 0000946275-04-001128
AI Filing Summary & Sentiment
Letter
Re: Kearny Financial Corp.
Radics & Co., LLC
Fax Memo To: Kevin Vaughn - United States Securities and Exchange Commission [1-202-942-9530] From: Alan Molin Pages: 6 CC: Barry Morgan, Files Date: November 24, 2004
--------------------------------------------------------------------------------
Attached are the consolidated financial statements (w/o notes) as revised based upon the conference call discussion on Monday, November 22nd.
Summary of Changes ------------------
Statements of Financial Condition - Minority Interest removed; Equity now reflects historical amounts. Shares outstanding (see separate discussion below) adjusted at prior year end to include West Essex shares.
Statements of Income - All references to Minority Interest removed; EPS and average shares outstanding include shares of West Essex and Pulaski (see separate discussion below).
Statements of Changes in Stockholders' Equity - Revised to include equity accounts of West Essex and Pulaski on a historical basis.
Statement of Cash Flows - Net income revised to exclude minority income adjustment (consistent with income statement) and last element in operating activities revised to include only ESOP and Incentive Plan expenses (which are separately disclosed in change in equity statement). Small rounding differences ($3 or less) were corrected.
Page 1 <PAGE>
Kevin Vaughn - United States Securities and Exchange Commission 2.
Shares of Common Stock of West Essex and Pulaski - The shares of common stock (outstanding, in treasury, weighted averages, etc.) of West Essex and Pulaski have been adjusted to a comparable basis with existing Kearny shares (as if a stock for stock transaction) based on book value per share. The conversion rates to one share of Kearny stock were approximately 2,816 shares of West Essex stock and 1,797 shares of Pulaski stock.
Please review the above and the attached and provide your thoughts thereon. Once the basic financial statements are straightened away, we can revise to note disclosure accordingly. Thank you for your attention and assistance.
/s/Alan Molin Alan Molin
<PAGE>
<TABLE> <CAPTION> June 30, ----------------------------------- Notes 2004 2003 ------------------ ----------------- ---------------- (In Thousands) <S> <C> <C> <C> Assets ------
Cash and amounts due from depository institutions $ 21,008 $ 25,291 Interest-bearing deposits in other banks 18,480 89,366 Federal funds sold - 11,000 Securities purchased under agreements to resell - 200,000 ----------- ----------- Cash and cash equivalents 1, 3 and 17 39,488 325,657
Securities available for sale 1, 4 and 17 41,564 37,840 Investment securities held to maturity 1, 5, 12 and 17 435,870 287,321 Loans receivable, including net deferred loan costs of $758 and $1,927 1, 6 and 17 510,938 514,341 Less: Allowance for loan losses 1 and 6 (5,144) (5,180) ----------- ----------- Net loans receivable 505,794 509,161 ----------- ----------- Mortgage-backed securities held to maturity 1, 7 and 17 771,353 681,619 Premises and equipment 1 and 8 26,649 19,884 Federal Home Loan Bank of New York stock ("FHLB") 12 11,392 13,787 Interest receivable 1, 9 and 17 9,861 8,479 Goodwill and other intangible assets 1, 2 and 10 82,263 31,746 Deposit for acquisition of West Essex Bancorp, Inc. 2 - 67,853 Other assets 15 and 19 12,284 13,135 ----------- -----------
Total assets $ 1,936,518 $ 1,996,482 =========== ===========
Liabilities and stockholder's equity ------------------------------------
Liabilities -----------
Deposits: 1, 11 and 17 Non-interest bearing 55,377 48,229 Interest bearing 1,482,133 1,565,455 ----------- -----------
Total deposits 1,537,510 1,613,684
Advances from FHLB 12 and 17 94,234 75,749 Advance payments by borrowers for taxes 4,224 4,213 Other liabilities 1, 13 and 15 7,045 7,167 ----------- ----------- Total liabilities 1,643,013 1,700,813 ----------- ----------- Commitments and contingencies 1, 16 and 17
Stockholders' equity 1, 2, 14, 15 and 18 --------------------
Preferred stock $0.10 par value, 25,000,000 shares authorized; none issued and outstanding - - Common stock $0.10 par value, 75,000,000 shares authorized; 10,000 shares and 11,737 shares issued and outstanding 1 1 Paid in capital 499 19,066 Retained earnings - substantially restricted 282,959 273,970 Unearned Employee Stock Ownership Plan ("ESOP") shares - (663) Unearned Incentive Plan shares - (193) Treasury stock, at cost; 126 shares at June 30, 2003 - (4,283) Accumulated other comprehensive income 10,046 7,771 ----------- ----------- Total stockholders' equity 293,505 295,669 ----------- ----------- Total liabilities and stockholders' equity $ 1,936,518 $ 1,996,482 =========== ===========
</TABLE> F-2 <PAGE>
<TABLE> <CAPTION> Year Ended June 30, --------------------------------------------- Notes 2004 2003 2002 --------------- --------------------------------------------- (In Thousands, Except Share and Per Share Data) <S> <C> <C> <C> <C> Interest income: Loans 1 and 5 $ 28,919 $ 36,673 $ 43,258 Mortgage-backed securities 1 33,980 47,764 50,225 Investment and available for sale securities 1 14,426 9,133 9,927 Other interest earning assets 1,329 2,922 2,752 -------- -------- -------- Total interest income 78,654 96,492 106,162 -------- -------- -------- Interest expense: Deposits 11 28,082 39,908 49,069 Borrowings 4,018 4,787 5,374 -------- -------- -------- Total interest expense 32,100 44,695 54,443 -------- -------- -------- Net interest income 46,554 51,797 51,719
Provision for loan losses 1 and 5 - - 3 -------- -------- -------- Net interest income after provision for loan losses 46,554 51,797 51,716 -------- -------- -------- Non-interest income: Fees and service charges 681 1,002 1,057 Trading account income - - 62 Miscellaneous 879 845 646 -------- -------- -------- Total non-interest income 1,560 1,847 1,765 -------- -------- -------- Non-interest expenses: Salaries and employee benefits 1 and 13 16,522 16,962 15,468 Net occupancy expense of premises 1 and 8 2,523 2,376 1,968 Equipment 1 3,453 3,142 2,945 Advertising 861 861 642 Federal insurance premium 587 620 542 Amortization of goodwill and intangible assets 1, 2 and 10 636 636 2,947 Directors' fees 827 818 383 Merger related expenses 2 592 14,921 619 Miscellaneous 3,471 4,016 3,551 -------- -------- -------- Total non-interest expenses 29,472 44,352 29,065 -------- -------- -------- Income before income taxes 18,642 9,292 24,416 Income taxes 1 and 15 5,745 5,237 7,926 -------- -------- -------- Net income $ 12,897 $ 4,055 $ 16,490 ======== ======= ========
Net income per common share: Basic $1,289.70 $337.53 $1,294.02 Diluted 1,289.70 336.06 1,287.13
Show Raw Text
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.txt
<TEXT>
Radics & Co., LLC
Fax Memo
To: Kevin Vaughn - United States Securities and Exchange Commission
[1-202-942-9530]
From: Alan Molin
Pages: 6
CC: Barry Morgan, Files
Date: November 24, 2004
Re: Kearny Financial Corp.
--------------------------------------------------------------------------------
Attached are the consolidated financial statements (w/o notes) as revised based
upon the conference call discussion on Monday, November 22nd.
Summary of Changes
------------------
Statements of Financial Condition - Minority Interest removed; Equity now
reflects historical amounts. Shares outstanding (see separate discussion
below) adjusted at prior year end to include West Essex shares.
Statements of Income - All references to Minority Interest removed; EPS and
average shares outstanding include shares of West Essex and Pulaski (see
separate discussion below).
Statements of Changes in Stockholders' Equity - Revised to include equity
accounts of West Essex and Pulaski on a historical basis.
Statement of Cash Flows - Net income revised to exclude minority income
adjustment (consistent with income statement) and last element in operating
activities revised to include only ESOP and Incentive Plan expenses (which
are separately disclosed in change in equity statement). Small rounding
differences ($3 or less) were corrected.
Page 1
<PAGE>
Kevin Vaughn - United States Securities and Exchange Commission 2.
Shares of Common Stock of West Essex and Pulaski - The shares of common
stock (outstanding, in treasury, weighted averages, etc.) of West Essex and
Pulaski have been adjusted to a comparable basis with existing Kearny
shares (as if a stock for stock transaction) based on book value per share.
The conversion rates to one share of Kearny stock were approximately 2,816
shares of West Essex stock and 1,797 shares of Pulaski stock.
Please review the above and the attached and provide your thoughts thereon. Once
the basic financial statements are straightened away, we can revise to note
disclosure accordingly. Thank you for your attention and assistance.
/s/Alan Molin
Alan Molin
<PAGE>
<TABLE>
<CAPTION>
June 30,
-----------------------------------
Notes 2004 2003
------------------ ----------------- ----------------
(In Thousands)
<S> <C> <C> <C>
Assets
------
Cash and amounts due from depository institutions $ 21,008 $ 25,291
Interest-bearing deposits in other banks 18,480 89,366
Federal funds sold - 11,000
Securities purchased under agreements to resell - 200,000
----------- -----------
Cash and cash equivalents 1, 3 and 17 39,488 325,657
Securities available for sale 1, 4 and 17 41,564 37,840
Investment securities held to maturity 1, 5, 12 and 17 435,870 287,321
Loans receivable, including net deferred loan costs of $758 and $1,927 1, 6 and 17 510,938 514,341
Less: Allowance for loan losses 1 and 6 (5,144) (5,180)
----------- -----------
Net loans receivable 505,794 509,161
----------- -----------
Mortgage-backed securities held to maturity 1, 7 and 17 771,353 681,619
Premises and equipment 1 and 8 26,649 19,884
Federal Home Loan Bank of New York stock ("FHLB") 12 11,392 13,787
Interest receivable 1, 9 and 17 9,861 8,479
Goodwill and other intangible assets 1, 2 and 10 82,263 31,746
Deposit for acquisition of West Essex Bancorp, Inc. 2 - 67,853
Other assets 15 and 19 12,284 13,135
----------- -----------
Total assets $ 1,936,518 $ 1,996,482
=========== ===========
Liabilities and stockholder's equity
------------------------------------
Liabilities
-----------
Deposits: 1, 11 and 17
Non-interest bearing 55,377 48,229
Interest bearing 1,482,133 1,565,455
----------- -----------
Total deposits 1,537,510 1,613,684
Advances from FHLB 12 and 17 94,234 75,749
Advance payments by borrowers for taxes 4,224 4,213
Other liabilities 1, 13 and 15 7,045 7,167
----------- -----------
Total liabilities 1,643,013 1,700,813
----------- -----------
Commitments and contingencies 1, 16 and 17
Stockholders' equity 1, 2, 14, 15 and 18
--------------------
Preferred stock $0.10 par value, 25,000,000 shares authorized;
none issued and outstanding - -
Common stock $0.10 par value, 75,000,000 shares authorized;
10,000 shares and 11,737 shares issued and outstanding 1 1
Paid in capital 499 19,066
Retained earnings - substantially restricted 282,959 273,970
Unearned Employee Stock Ownership Plan ("ESOP") shares - (663)
Unearned Incentive Plan shares - (193)
Treasury stock, at cost; 126 shares at June 30, 2003 - (4,283)
Accumulated other comprehensive income 10,046 7,771
----------- -----------
Total stockholders' equity 293,505 295,669
----------- -----------
Total liabilities and stockholders' equity $ 1,936,518 $ 1,996,482
=========== ===========
</TABLE>
F-2
<PAGE>
<TABLE>
<CAPTION>
Year Ended June 30,
---------------------------------------------
Notes 2004 2003 2002
--------------- ---------------------------------------------
(In Thousands, Except Share and Per Share Data)
<S> <C> <C> <C> <C>
Interest income:
Loans 1 and 5 $ 28,919 $ 36,673 $ 43,258
Mortgage-backed securities 1 33,980 47,764 50,225
Investment and available for sale securities 1 14,426 9,133 9,927
Other interest earning assets 1,329 2,922 2,752
-------- -------- --------
Total interest income 78,654 96,492 106,162
-------- -------- --------
Interest expense:
Deposits 11 28,082 39,908 49,069
Borrowings 4,018 4,787 5,374
-------- -------- --------
Total interest expense 32,100 44,695 54,443
-------- -------- --------
Net interest income 46,554 51,797 51,719
Provision for loan losses 1 and 5 - - 3
-------- -------- --------
Net interest income after provision for loan losses 46,554 51,797 51,716
-------- -------- --------
Non-interest income:
Fees and service charges 681 1,002 1,057
Trading account income - - 62
Miscellaneous 879 845 646
-------- -------- --------
Total non-interest income 1,560 1,847 1,765
-------- -------- --------
Non-interest expenses:
Salaries and employee benefits 1 and 13 16,522 16,962 15,468
Net occupancy expense of premises 1 and 8 2,523 2,376 1,968
Equipment 1 3,453 3,142 2,945
Advertising 861 861 642
Federal insurance premium 587 620 542
Amortization of goodwill and intangible assets 1, 2 and 10 636 636 2,947
Directors' fees 827 818 383
Merger related expenses 2 592 14,921 619
Miscellaneous 3,471 4,016 3,551
-------- -------- --------
Total non-interest expenses 29,472 44,352 29,065
-------- -------- --------
Income before income taxes 18,642 9,292 24,416
Income taxes 1 and 15 5,745 5,237 7,926
-------- -------- --------
Net income $ 12,897 $ 4,055 $ 16,490
======== ======= ========
Net income per common share:
Basic $1,289.70 $337.53 $1,294.02
Diluted 1,289.70 336.06 1,287.13