Kearny Financial Corp. reported its financial results for the three months ended September 30, 2024, revealing a decline in net income to $6.1 million, or $0.10 per diluted share, compared to $9.8 million, or $0.16 per diluted share, for the same period in 2023. This decrease in profitability was primarily attributed to a significant drop in net interest income, which fell to $32.4 million from $39.2 million year-over-year. The decline in net interest income was driven by an increase in interest expense, which rose by $8.8 million to $50.8 million, while interest income only increased by $2.1 million to $83.3 million.
Total non-interest income, however, saw an increase to $4.6 million from $4.0 million, bolstered by a $901,000 rise in income from bank-owned life insurance (BOLI) due to a restructure initiated in December 2023. The provision for credit losses decreased to $108,000 from $245,000 in the prior year, reflecting improved credit quality.
Total assets increased by $88.9 million to $7.77 billion, driven by a rise in cash and cash equivalents, which surged to $155.6 million from $63.9 million. Total deposits also rose significantly, increasing by $312.4 million to $5.47 billion, with brokered time deposits climbing to $733.3 million from $408.2 million. Conversely, borrowings decreased by $229.9 million to $1.48 billion, primarily due to a reduction in Federal Home Loan Bank (FHLB) borrowings.
The company’s stockholders’ equity decreased slightly to $751.5 million from $753.6 million, impacted by cash dividends of $6.9 million and an other comprehensive loss of $1.6 million, partially offset by net income. The book value per share fell to $11.64, while tangible book value per share decreased to $9.85.
Kearny Financial's loan portfolio showed modest growth, with total loans increasing to $5.79 billion, up from $5.75 billion. Commercial loans rose to $3.97 billion, while consumer loans also saw an uptick. Nonperforming assets remained stable at $39.9 million, representing 0.51% of total assets.
The company continues to maintain a strong liquidity position, with $155.6 million in cash and cash equivalents and $1.07 billion in investment securities available for sale. Kearny Financial has the capacity to borrow an additional $2.06 billion without pledging additional collateral, ensuring it is well-positioned to navigate market conditions.
About Kearny Financial Corp.
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