Kearny Financial(US:KRNY)2025-11-05 18:41Financial Position - Total assets decreased by $92.4 million to $7.65 billion at September 30, 2025, from $7.74 billion at June 30, 2025[115] - Net loans receivable decreased by $44.4 million, or 0.8%, to $5.72 billion at September 30, 2025, from $5.77 billion at June 30, 2025[119] - Nonperforming assets increased by $19.0 million to $64.6 million, or 0.84% of total assets, at September 30, 2025[123] - Total deposits decreased by $43.3 million, or 0.8%, to $5.63 billion at September 30, 2025, from $5.68 billion at June 30, 2025[127] - Stockholders' equity increased by $7.2 million to $753.2 million at September 30, 2025, driven by net income of $9.5 million[132] Income Statement - Net income for the quarter ended September 30, 2025, was $9.5 million, or $0.15 per diluted share, compared to $6.1 million, or $0.10 per diluted share, for the same quarter in 2024[134] - Net interest income increased by $5.3 million to $37.7 million for the quarter ended September 30, 2025, compared to $32.4 million for the same quarter in 2024[135] - Net interest margin increased by 30 basis points to 2.10% for the quarter ended September 30, 2025, from 1.80% for the same quarter in 2024[136] - Total non-interest income increased by $1.2 million to $5.8 million for the quarter ended September 30, 2025, compared to $4.6 million for the same quarter in 2024[144] - Provision for credit losses recorded a reversal of $82,000 for the quarter ended September 30, 2025, compared to a provision of $108,000 for the same quarter in 2024[143] - Total non-interest expense increased by $1.9 million to $31.7 million for the quarter ended September 30, 2025, compared to $29.8 million for the same quarter in 2024[146] - Salaries and employee benefits increased by $1.2 million to $18.7 million for the quarter ended September 30, 2025, from $17.5 million for the same quarter in 2024[147] Liquidity and Capital - Liquidity included $130.1 million of short-term cash and cash equivalents and $1.02 billion of investment securities available for sale as of September 30, 2025[154] - Commitments to originate and purchase loans totaled $72.1 million as of September 30, 2025, compared to $26.4 million at June 30, 2025[155] - As of September 30, 2025, the total capital to risk-weighted assets ratio was 14.66%, exceeding the minimum regulatory requirement of 8.00%[158] - The Tier 1 capital to risk-weighted assets ratio was 13.70% as of September 30, 2025, above the minimum requirement of 6.00%[158] - Common equity tier 1 capital to risk-weighted assets ratio stood at 13.70% on September 30, 2025, surpassing the minimum of 4.50%[158] - The total capital to risk-weighted assets ratio increased from 14.49% on June 30, 2025, to 14.66% on September 30, 2025[158] - The Tier 1 capital to adjusted total assets ratio was 8.73% as of September 30, 2025, exceeding the minimum requirement of 4.00%[158] Interest Rate Sensitivity - The Economic Value of Equity (EVE) decreased by 34.77% to $437,413 under a +300 basis points interest rate scenario as of September 30, 2025[166] - Net interest income (NII) decreased by 9.61% to $140,548 under a +300 basis points interest rate scenario as of September 30, 2025[166] - The company maintains an Asset/Liability Management program to manage interest rate risk, overseen by the Board of Directors[162] - The sensitivity of projected NII is calculated using a static balance sheet assumption, with adjustments for product pricing and prepayment speeds[163] Loan Activity - Commercial loan origination volume for the three months ended September 30, 2025, totaled $61.4 million[119] - Construction loans in process were $137.4 million at September 30, 2025, compared to $115.7 million at June 30, 2025[156]