Kearny Financial Corp. Announces Fourth Quarter and Fiscal Year End 2025 Results and Declaration of $0.11 per Share Cash Dividend

Core Points - Kearny Financial Corp. reported a net income of $6.8 million, or $0.11 per diluted share, for the quarter ended June 30, 2025, showing a slight increase from $6.6 million in the previous quarter [1][2] - For the fiscal year ended June 30, 2025, the company reported a net income of $26.1 million, a significant recovery from a net loss of $86.7 million in the prior year [2] - The Board of Directors declared a quarterly cash dividend of $0.11 per share, payable on August 26, 2025 [3] Financial Performance - The company achieved a 23% growth in pre-tax, pre-provision earnings per share this quarter, attributed to a 10 basis points expansion in net interest margin [4] - Net interest income increased by 5.3% to $35.8 million for the quarter ended June 30, 2025, compared to $34.0 million for the previous quarter [8] - Non-interest income rose by 9.4% to $5.0 million for the quarter ended June 30, 2025, driven by increases in income from bank-owned life insurance and gains on the sale of loans [12] Balance Sheet Highlights - Total assets were $7.74 billion at June 30, 2025, reflecting a 0.1% increase from the previous quarter [8] - Loans receivable totaled $5.81 billion, a decrease of 0.6% from the previous quarter but an increase of 1.4% year-over-year [8] - Deposits were $5.68 billion, a decrease of 0.6% from the previous quarter but an increase of 10.0% from the same period last year [8] Asset Quality - The balance of non-performing assets increased to $45.6 million, or 0.59% of total assets, as of June 30, 2025, up from $37.7 million in the previous quarter [18] - Net charge-offs were less than 0.01% of average loans for the quarter ended June 30, 2025, compared to 0.03% in the previous quarter [18] - The allowance for credit losses was $46.2 million, or 0.79% of total loans, at June 30, 2025, an increase from $44.5 million in the previous quarter [18] Capital and Equity - The company's tangible equity to tangible assets ratio was 8.27% at June 30, 2025, with regulatory capital ratios exceeding the levels required to be classified as "well-capitalized" [18] - Book value per share decreased by 0.3% to $11.55, while tangible book value per share also decreased by 0.3% to $9.77 [18]