FAIRFIELD, N.J., April 24, 2025 (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, 2025 of $6.6 million, or $0.11 per diluted share, compared to $6.6 million, or $0.10 per diluted share, for the quarter ended December 31, 2024.
The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on May 21, 2025, to stockholders of record as of May 7, 2025.
Craig L. Montanaro, President and Chief Executive Officer, commented, "Quarter over quarter net interest income grew by $1.4 million, resulting in eight basis points of net interest margin expansion. Contributing to this expansion was growth in net loans and deposits, coupled with a 24 basis point decrease in our cost of funds. We anticipate continued strong margin expansion into the June quarter, the final of our 2025 fiscal year.”
Mr. Montanaro continued, "Despite recent fluctuations in US Treasury rates and broader market indices, our core business continues to perform exceedingly well and we are confident in our ability to sustain and enhance our performance in spite of the volatile environment.”
Balance Sheet
- Total assets were $7.73 billion at March 31, 2025, a increase of $1.8 million from December 31, 2024.
- Investment securities totaled $1.13 billion at March 31, 2025, a decrease of $17.3 million, or 1.5%, from December 31, 2024.
- Loans receivable totaled $5.85 billion at March 31, 2025, an increase of $54.4 million, or 0.9%, from December 31, 2024, primarily reflecting growth in non-residential mortgage loans.
- Deposits were $5.71 billion at March 31, 2025, an increase of $36.3 million, or 0.6%, from December 31, 2024. This increase was primarily driven by increases in interest bearing demand deposits and consumer savings deposits, partially offset by a decrease in non-interest bearing demand deposits. The decrease in non-interest bearing deposits was primarily attributable to a $29.3 million outflow from a single depositor who used the funds to finance the construction of a building. Excluding this single account, non-interest bearing deposits increased $14.9 million, or 2.5%.
- Borrowings were $1.21 billion at March 31, 2025, a decrease of $45.0 million, or 3.6%, from December 31, 2024, reflecting reductions in Federal Home Loan Bank ("FHLB”) overnight borrowings.
- At March 31, 2025, the Company maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.42 billion, representing 31.3% of total assets.
Net Interest Income and Net Interest Margin
- Net interest margin expanded eight basis points from the quarter ended December 31, 2024 to 1.90% for the quarter ended March 31, 2025. The increase for the quarter was driven by the paydown of borrowings resulting from growth in lower cost deposits and broad based decreases in deposit rates, partially offset by reduced yields on interest-earning assets.
- For the quarter ended March 31, 2025, net interest income increased $1.4 million to $34.0 million from $32.6 million for the quarter ended December 31, 2024. Included in net interest income for the quarters ended March 31, 2025 and December 31, 2024, respectively, was purchase accounting accretion of $511,000 and $685,000, and loan prepayment penalty income of $226,000 and $288,000.
- For the quarter ended March 31, 2025, non-interest income decreased $311,000, or 6.4%, to $4.6 million from $4.9 million for the quarter ended December 31, 2024, primarily driven by decreases in gain on sale of loans and electronic banking fees and charges.
- Gain on sale of loans decreased $192,000 to $112,000 for the quarter ended March 31, 2025 from $304,000 for the quarter ended December 31, 2024. The decrease largely reflected a seasonal decrease in the volume of residential mortgage loans sold during the period.
- Electronic banking fees and charges decreased $102,000 to $391,000 for the quarter March 31, 2025 from $493,000 for the quarter ended December 31, 2024. The decrease largely reflected the absence of a non-recurring increase recorded in the prior period.
- For the quarter ended March 31, 2025, non-interest expense increased $829,000, or 2.8%, to $30.4 million from $29.6 million for the quarter ended December 31, 2024, primarily driven by increases in salary and benefits, net occupancy, advertising, and other expense.
- Salary and benefits expense increased $121,000 to $17.7 million primarily driven by an increase of $546,000 in payroll taxes and employee benefits associated with the start of a new calendar year, partially offset by a $427,000 non-recurring decrease in stock-based compensation.
- Net occupancy expense of premises increased $244,000 to $3.1 million primarily driven by seasonally higher snow removal expenses, partially offset by a decrease in repairs and other maintenance expenses.
- Advertising and marketing expense increased $298,000 to $609,000. This increase was primarily due to higher advertising expenses across various formats, driven by marketing campaigns supporting our loan and deposit growth initiatives.
- Other expense increased $225,000 primarily driven by a $37,000 provision for credit losses related to off balance sheet commitments compared to a reversal for credit losses on off balance sheet commitments of $116,000 recorded in the prior comparative period. The remaining changes in the other components of non-interest expense between comparative periods generally reflected normal operating fluctuations within those line items.
- Income tax expense totaled $1.2 million for the quarter ended March 31, 2025 compared to $1.3 million for the quarter ended December 31, 2024, resulting in an effective tax rate of 15.3% and 16.0%, respectively.
- The balance of non-performing assets remained steady at $37.7 million, or 0.49% of total assets, at March 31, 2025 and December 31, 2024, respectively.
- Net charge-offs totaled $368,000, or 0.03% of average loans, on an annualized basis, for the quarter ended March 31, 2025, compared to $573,000, or 0.04% of average loans, on an annualized basis, for the quarter ended December 31, 2024.
- For the quarter ended March 31, 2025, the Company recorded a provision for credit losses of $366,000, compared to $107,000 for the quarter ended December 31, 2024. The provision for credit loss expense for the quarter ended March 31, 2025 was primarily driven by the charge-offs described above.
- The ACL was $44.5 million, or 0.76% of total loans, at March 31, 2025, a decrease of $2,000 from $44.5 million, or 0.77% of total loans, at December 31, 2024.
- For the quarter ended March 31, 2025, book value per share increased $0.05, or 0.4%, to $11.58 while tangible book value per share increased $0.05, or 0.5%, to $9.80.
- At March 31, 2025, total stockholders' equity included after-tax net unrealized losses on securities available for sale of $80.1 million, partially offset by after-tax unrealized gains on derivatives of $10.7 million. After-tax net unrecognized losses on securities held to maturity of $9.9 million were not reflected in total stockholders' equity.
- At March 31, 2025, the Company's tangible equity to tangible assets ratio equaled 8.31% 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.
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, 2025 | December 31, 2024 | Variance
or Change | Variance or Change Pct. | |||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 126,095 | $ | 141,554 | $ | (15,459 | ) | -10.9 | % | ||
| Securities available for sale | 1,003,393 | 1,018,279 | (14,886 | ) | -1.5 | % | |||||
| Securities held to maturity | 124,859 | 127,266 | (2,407 | ) | -1.9 | % | |||||
| Loans held-for-sale | 6,187 | 5,695 | 492 | 8.6 | % | ||||||
| Loans receivable | 5,846,175 | 5,791,758 | 54,417 | 0.9 | % | ||||||
| Less: allowance for credit losses on loans | (44,455 | ) | (44,457 | ) | (2 | ) | -0.0 | % | |||
| Net loans receivable | 5,801,720 | 5,747,301 | 54,419 | 0.9 | % | ||||||
| Premises and equipment | 44,192 | 45,127 | (935 | ) | -2.1 | % | |||||
| Federal Home Loan Bank stock | 62,261 | 64,443 | (2,182 | ) | -3.4 | % | |||||
| Accrued interest receivable | 28,521 | 27,772 | 749 | 2.7 | % | ||||||
| Goodwill | 113,525 | 113,525 | - | - | % | ||||||
| Core deposit intangible | 1,554 | 1,679 | (125 | ) | -7.4 | % | |||||
| Bank owned life insurance | 303,629 | 301,339 | 2,290 | 0.8 | % | ||||||
| Deferred income taxes, net | 52,913 | 53,325 | (412 | ) | -0.8 | % | |||||
| Other assets | 64,292 | 84,080 | (19,788 | ) | -23.5 | % | |||||
| Total assets | $ | 7,733,141 | $ | 7,731,385 | $ | 1,756 | 0.0 | % | |||
| Liabilities | |||||||||||
| Deposits: | |||||||||||
| Non-interest-bearing | $ | 587,118 | $ | 601,510 | $ | (14,392 | ) | -2.4 | % | ||
| Interest-bearing | 5,120,230 | 5,069,550 | 50,680 | 1.0 | % | ||||||
| Total deposits | 5,707,348 | 5,671,060 | 36,288 | 0.6 | % | ||||||
| Borrowings | 1,213,976 | 1,258,949 | (44,973 | ) | -3.6 | % | |||||
| Advance payments by borrowers for taxes | 19,981 | 17,986 | 1,995 | 11.1 | % | ||||||
| Other liabilities | 43,723 | 38,537 | 5,186 | 13.5 | % | ||||||
| Total liabilities | 6,985,028 | 6,986,532 | (1,504 | ) | -0.0 | % | |||||
| Stockholders' Equity | |||||||||||
| Common stock | 646 | 646 | - | - | % | ||||||
| Paid-in capital | 494,131 | 494,092 | 39 | 0.0 | % | ||||||
| Retained earnings | 341,921 | 342,155 | (234 | ) | -0.1 | % | |||||
| Unearned ESOP shares | (19,457 | ) | (19,943 | ) | 486 | 2.4 | % | ||||
| Accumulated other comprehensive loss | (69,128 | ) | (72,097 | ) | 2,969 | 4.1 | % | ||||
| Total stockholders' equity | 748,113 | 744,853 | 3,260 | 0.4 | % | ||||||
| Total liabilities and stockholders' equity | $ | 7,733,141 | $ | 7,731,385 | $ | 1,756 | 0.0 | % | |||
| Consolidated capital ratios | |||||||||||
| Equity to assets | 9.67 | % | 9.63 | % | 0.04 | % | |||||
| Tangible equity to tangible assets(1) | 8.31 | % | 8.27 | % | 0.04 | % | |||||
| Share data | |||||||||||
| Outstanding shares | 64,580 | 64,580 | - | - | % | ||||||
| Book value per share | $ | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
| |||||||||