Kearny Financial Corp. reported net income of $6.1 million, or $0.10 per diluted share, for the first quarter ended September 30, 2024. This represents a significant improvement compared to a GAAP net loss of $90.1 million, or $1.45 per diluted share, for the prior quarter ended June 30, 2024, which included a $95.3 million goodwill impairment. Excluding this non-recurring item, adjusted net income for the quarter ended June 30, 2024, was $5.6 million.
The company's net interest margin contracted by four basis points to 1.80% for the quarter ended September 30, 2024, though it showed monthly improvement throughout the period. Total assets increased by $88.9 million, or 1.2%, to $7.77 billion from June 30, 2024, driven by a $51.5 million, or 0.9%, increase in loans receivable to $5.78 billion. Total deposits grew by $312.4 million, or 6.1%, to $5.47 billion, largely due to a strategic reallocation from Federal Home Loan Bank advances into brokered certificates of deposits.
Kearny Financial Corp. also announced a quarterly cash dividend of $0.11 per share, payable on November 20, 2024. President and CEO Craig L. Montanaro noted that the net interest margin had reached an inflection point and was beginning to ascend, with anticipated fed funds rate reductions expected to benefit the company's liability-sensitive balance sheet. Asset quality remained strong, with non-performing assets at 0.51% of total assets and minimal exposure to New York City rent-regulated multifamily and office real estate.
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