Kearny Financial(KRNY) - 2025 Q1 - Quarterly Report

Financial Performance - Net income for the three months ended September 30, 2024, was $6,092 thousand, a decline of 38.0% compared to $9,842 thousand in the same period of 2023[7]. - Basic and diluted earnings per share (EPS) decreased to $0.10 from $0.16, a drop of 37.5%[7]. - Net interest income after provision for credit losses was $32,338 thousand, down from $38,915 thousand, representing a decrease of 17.0%[7]. - Total non-interest income increased to $4,626 thousand, up from $4,010 thousand, marking a growth of 15.4%[7]. - Net cash provided by operating activities decreased to $2,539,000 for the three months ended September 30, 2024, compared to $12,284,000 for the same period in 2023[13]. - The company recognized a loss of $17.5 million in other comprehensive income for the three months ended September 30, 2024, compared to a gain of $14.1 million in the same period of 2023[75]. Assets and Liabilities - Total assets increased to $7,772,379 thousand as of September 30, 2024, compared to $7,683,461 thousand on June 30, 2024, reflecting a growth of 1.16%[4]. - Total liabilities increased to $7,020,842 thousand, up from $6,929,890 thousand, reflecting a growth of 1.32%[4]. - Total deposits increased to $5,470,512 thousand, a rise of 6.05% from $5,158,123 thousand[4]. - Cash and cash equivalents increased significantly to $155,574 thousand from $63,864 thousand, a growth of 143.5%[4]. - The total carrying value of pledged securities increased to $972,759 as of September 30, 2024, up from $671,181 on June 30, 2024[31]. Loans and Credit Quality - Net loans receivable rose to $5,739,323 thousand, up from $5,687,848 thousand, indicating an increase of 0.91%[4]. - The total past due loans as of September 30, 2024, were $28,935, compared to $36,885 as of June 30, 2024, showing a decrease of about 21.5%[38][40]. - The allowance for credit losses totaled $44.9 million, or 0.78% of total loans, at September 30, 2024[126]. - The provision for credit losses was $108 thousand, a decrease from $245 thousand, indicating improved credit quality[7]. - The company reported no allowance for credit losses on available for sale securities as of September 30, 2024, indicating stable credit quality[34]. Securities and Investments - Total available for sale securities amounted to $1,177,595, with a fair value of $1,070,811, reflecting gross unrealized losses of $110,112 as of September 30, 2024[25]. - The fair value of debt securities available for sale decreased from $601,780,000 on June 30, 2024, to $585,398,000 on September 30, 2024[96]. - The total fair value of held to maturity debt securities was $120,725, with an amortized cost of $135,742, reflecting gross unrecognized losses of $16,464[28]. - The company actively monitors the credit quality of its securities through ratings from various agencies[34]. - The unrealized losses on available for sale securities are attributed to changes in market interest rates and credit spreads, rather than changes in credit quality[34]. Capital and Equity - Stockholders' equity decreased by $2.0 million to $751.5 million at September 30, 2024, from $753.6 million at June 30, 2024[134]. - Total capital to risk-weighted assets was $697.3 million, representing a ratio of 14.48% as of September 30, 2024, exceeding the minimum regulatory requirement[153]. - Tier 1 capital to risk-weighted assets rose to $703,628, with a ratio of 14.60% as of September 30, 2024, up from 13.65%[155]. Dividends and Shareholder Returns - Cash dividends declared were $0.11 per common share, totaling $6,896,000 for the three months ended September 30, 2024[11]. - The company declared a quarterly cash dividend on October 24, 2024, payable on November 20, 2024[21]. Interest Rates and Economic Outlook - The weighted average interest rate for fixed rate advances from the FHLB was 4.71% as of September 30, 2024, compared to 5.07% as of June 30, 2024, indicating a decrease in borrowing costs[65]. - The company anticipates potential impacts from changes in interest rates, inflation, and competition affecting future results[115].