Kearny Financial(US:KRNY)2025-02-06 15:29Financial Position - Total assets increased by $47.9 million to $7.73 billion at December 31, 2024, from $7.68 billion at June 30, 2024[118] - Total deposits increased by $512.9 million, or 9.9%, to $5.67 billion at December 31, 2024, from $5.16 billion at June 30, 2024[130] - Total assets decreased to $7.66 billion as of December 31, 2024, from $7.98 billion a year earlier[1] - Total investment securities available for sale decreased by $54.6 million to $1.02 billion at December 31, 2024[119] - Uninsured deposits totaled $1.96 billion as of December 31, 2024, compared to $1.77 billion as of June 30, 2024[130] Loan and Credit Quality - Net loans receivable rose by $59.5 million, or 1.0%, to $5.75 billion at December 31, 2024, compared to $5.69 billion at June 30, 2024[122] - Nonperforming assets decreased by $2.2 million to $37.7 million, or 0.49% of total assets, at December 31, 2024[125] - The allowance for credit losses totaled $44.5 million, or 0.77% of total loans, at December 31, 2024[127] - Provision for credit losses decreased $2.0 million to $107,000 for the quarter ended December 31, 2024, compared to $2.1 million for the same quarter in 2023[144] - Provision for credit losses decreased by $2.1 million to $215,000 for the six months ended December 31, 2024, driven primarily by loan growth[2] Income and Expenses - Net income for the quarter ended December 31, 2024 was $6.6 million, or $0.10 per diluted share, compared to a net loss of $13.8 million, or $0.22 per diluted share, for the same period in 2023[136] - Net income for the six months ended December 31, 2024 was $12.7 million, or $0.20 per diluted share, compared to a net loss of $4.0 million, or $0.06 per diluted share, for the same period in 2023[154] - Net interest income decreased by $3.2 million to $32.6 million for the quarter ended December 31, 2024, down from $35.8 million in the prior year[137] - Net interest income for the six months ended December 31, 2024 decreased by $9.9 million to $65.1 million compared to $75.0 million for the same period in 2023[155] - Total non-interest income increased $20.9 million to $4.9 million for the quarter ended December 31, 2024, compared to a loss of $16.0 million for the same period in 2023[145] - Total non-interest income increased by $21.5 million to $9.5 million for the six months ended December 31, 2024, compared to a loss of $12.0 million in the prior year[3] - Total non-interest expense decreased $206,000 to $29.6 million for the quarter ending December 31, 2024, compared to $29.8 million in the prior year[149] - Income from BOLI increased $1.5 million to $2.6 million for the quarter ended December 31, 2024, primarily due to improved income from the BOLI restructure[148] Capital and Ratios - Stockholders' equity decreased by $8.7 million to $744.9 million at December 31, 2024, primarily due to cash dividends of $13.8 million[134] - Book value per share decreased by $0.16 to $11.53 at December 31, 2024[135] - Total capital to risk-weighted assets at December 31, 2024, was $699,334, representing a ratio of 14.49%, exceeding the minimum requirement of 8.00%[178] - Tier 1 capital to risk-weighted assets at December 31, 2024, was $658,410, with a ratio of 13.64%, above the minimum requirement of 6.00%[178] - Common equity tier 1 capital to risk-weighted assets at December 31, 2024, was $658,410, with a ratio of 13.64%, surpassing the minimum requirement of 4.50%[178] Interest Rate Risk - Economic Value of Equity (EVE) decreased by 39.08% to $346,622 under a +300 basis points interest rate scenario as of December 31, 2024[187] - Net interest income (NII) decreased by 8.72% to $136,617 under a +300 basis points interest rate scenario as of December 31, 2024[187] - Interest rate risk is managed through an Asset/Liability Management program overseen by the Board of Directors, with sensitivity analyses conducted for both earnings and capital[183][184] - The sensitivity of EVE and NII to interest rate changes is influenced by the composition and allocation of the balance sheet and the use of off-balance sheet instruments[188] - Future interest rates and their impact on net interest income are unpredictable and based on numerous assumptions, including market interest rates and borrower behavior[189] Other Financial Metrics - Total interest-earning assets were $7.20 billion with an average yield of 4.58% for the six months ended December 31, 2024, compared to $7.42 billion and 4.41% in 2023[1] - Total interest-bearing liabilities were $6.24 billion with an average cost of 3.19% for the six months ended December 31, 2024, compared to $6.46 billion and 2.75% in 2023[1] - Commitments to originate and purchase loans totaled $94.8 million as of December 31, 2024, up from $47.9 million at June 30, 2024[4] - Effective tax rate for the quarter ended December 31, 2024 was 16.0%, compared to (14.8)% for the same period in 2023[153] - Effective tax rate decreased to 15.6% for the six months ended December 31, 2024, from 460.3% in the prior year[4] - Equipment and systems expense increased by $137,000 to $7.8 million for the quarter ended December 31, 2024, due to ongoing digital banking initiatives[4]