Financial Performance - Kearny Financial Corp. reported a GAAP net loss of $90.1 million, or $1.45 per diluted share, for Q4 2024, primarily due to a non-cash goodwill impairment of $95.3 million[1]. - For the fiscal year ended June 30, 2024, the company reported a GAAP net loss of $86.7 million, or $1.39 per diluted share, compared to a net income of $40.8 million, or $0.63 per diluted share, for the previous year[2]. - Adjusted net income for Q4 2024 was $5.6 million, or $0.09 per diluted share, down from $7.4 million, or $0.12 per diluted share, in Q1 2024[1]. - The net loss for the quarter was $90.1 million, compared to a net income of $7.4 million in the previous quarter[21]. - Net loss for the year was $(86,667,000) in 2024, a significant decline from net income of $40,811,000 in 2023, representing a 312.4% change[32]. - Basic and diluted net loss per common share was $(1.39) in 2024, compared to earnings of $0.63 per share in 2023[32]. - The company reported a net loss of $90,079 thousand compared to a net income of $7,397 thousand in the previous quarter[51]. - Basic and diluted net loss per common share was $(1.45), compared to earnings of $0.12 in the previous quarter[51]. Asset and Equity Changes - Total assets decreased by $158.5 million, or 2.0%, to $7.68 billion from March 31, 2024, and by $381.4 million, or 4.7%, from June 30, 2023[6]. - Total stockholders' equity decreased by 11.2% to $753.6 million from $849.1 million[18]. - Book value per share fell by 11.2% to $11.70, while tangible book value per share increased slightly by 0.3% to $9.90[18]. - Total assets decreased by 2.4% to $7,878,292,000 in 2024 from $8,068,937,000 in 2023[35]. - Stockholders' equity decreased by $93,712, or 11.1%, from $844,782 to $751,070[23]. - Total stockholders' equity decreased to $753,571 thousand, down from $849,078 thousand, a decline of 11.3%[41]. Income and Expense Analysis - Non-interest expense increased by $97.5 million, or 335.5%, to $126.6 million for Q4 2024, primarily due to the goodwill impairment[12]. - Net interest income after provision for credit losses dropped by 12.4% to $29.7 million[21]. - Provision for credit losses surged by 910.6% to $3.5 million, indicating increased risk[21]. - Non-interest income increased by 38.1% to $5.8 million, driven by gains in electronic banking fees[21]. - Total non-interest expense skyrocketed by 335.5% to $126.6 million, primarily due to a goodwill impairment of $97.4 million[21]. - Total non-interest expense rose by 73.9% to $215,151,000 in 2024 from $123,751,000 in 2023, largely due to a goodwill impairment of $97,370,000[32]. - Non-interest income turned negative at $(1,993,000) in 2024, a decline of 172.4% from $2,751,000 in 2023[32]. Asset Quality and Loan Performance - Non-performing assets increased to $39.9 million, or 0.52% of total assets, from $39.5 million, or 0.50% of total assets, at March 31, 2024[12]. - Net charge-offs for Q4 2024 totaled $3.5 million, or 0.25% of average loans, compared to $286,000, or 0.02% of average loans, in Q1 2024[12]. - Nonperforming loans increased to $39,882 thousand, representing 0.70% of total loans, compared to 0.69% in the previous quarter[45]. - The allowance for credit losses on loans was $44,939 thousand, maintaining a ratio of 0.78% to total loans[45]. Dividend and Capital Ratios - The company declared a quarterly cash dividend of $0.11 per share, payable on August 26, 2024[3]. - Cash dividends declared remained stable at $0.11 per common share, with a dividend payout ratio of -7.7%[21]. - As of June 30, 2024, the tangible equity to tangible assets ratio increased to 8.43%, and the Common Equity Tier 1 Capital Ratio rose to 14.79%[16]. Interest Income and Yield - Total interest income increased by 12.0% to $328,868,000 in 2024 from $293,724,000 in 2023[32]. - Average yield on interest-earning assets increased by 0.08% from 4.51% to 4.59%[25]. - Average yield on interest-earning assets increased to 4.48% in 2024 from 3.91% in 2023[36]. - Average yield on loans receivable increased to 4.58% for the quarter ended June 30, 2024, compared to 4.45% in the prior quarter, reflecting a rise of 2.92%[57]. Efficiency and Operational Metrics - The efficiency ratio significantly increased to 323.81% for the quarter ended June 30, 2024, compared to 75.43% in the previous quarter, indicating a substantial rise in operational costs relative to income[57]. - Return on average assets (annualized) was -4.68% for the quarter ended June 30, 2024, down from 0.38% in the prior quarter, showing a decline in profitability[57]. - Non-interest expense (GAAP) for the quarter was $126,551 thousand, significantly higher than $29,059 thousand in the previous quarter due to non-recurring transactions[64]. - The adjusted efficiency ratio (non-GAAP) improved to 73.92% from 75.43% in the previous quarter, indicating better cost management[64].
Kearny Financial(KRNY) - 2024 Q4 - Annual Results