Kearny Financial Corp. Announces First Quarter Fiscal 2025 Results and Declaration of Cash Dividend

Core Viewpoint - Kearny Financial Corp. reported a net income of $6.1 million for Q3 2024, a significant recovery from a net loss of $90.1 million in Q2 2024, primarily due to a prior goodwill impairment of $95.3 million [1][12]. Financial Performance - Net interest income decreased by $830,000 to $32.4 million in Q3 2024 from $33.3 million in Q2 2024, with a net interest margin of 1.80%, down four basis points [3][12]. - Non-interest income fell by $1.2 million to $4.6 million in Q3 2024, influenced by the absence of non-recurring items that were present in the previous quarter [4][12]. - Non-interest expense decreased dramatically by $96.8 million, or 76.5%, to $29.8 million, largely due to the prior quarter's goodwill impairment [5][12]. Balance Sheet Highlights - Total assets increased by $88.9 million, or 1.2%, to $7.77 billion as of September 30, 2024 [2][19]. - Loans receivable rose by $51.5 million, or 0.9%, to $5.78 billion, driven by growth in residential mortgage and construction loans [2][19]. - Deposits increased by $312.4 million, or 6.1%, to $5.47 billion, attributed to a shift from FHLB advances to brokered certificates of deposits [2][19]. Asset Quality - Non-performing assets remained stable at $39.9 million, or 0.51% of total assets, with net charge-offs significantly reduced to $124,000, or 0.01% of average loans [7][12]. - The allowance for credit losses was $44.9 million, unchanged from the previous quarter, reflecting a stable asset quality [7][12]. Capital Position - Book value per share decreased by $0.06, or 0.5%, to $11.64, while tangible book value per share also decreased by $0.05, or 0.5%, to $9.85 [8][12]. - The Company maintained a tangible equity to tangible assets ratio of 8.31%, with regulatory capital ratios exceeding the "well-capitalized" requirements [8][12]. Dividend Declaration - The Board of Directors declared a quarterly cash dividend of $0.11 per share, payable on November 20, 2024, to stockholders of record as of November 6, 2024 [1].