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Sep 30, 2021
Kearny Financial Q1 2022 Earnings Report
Kearny Financial's first quarter results for fiscal year 2022 were reported, featuring record earnings and an increased cash dividend.
Key Takeaways
Kearny Financial Corp. reported a strong start to fiscal year 2022 with record earnings driven by net interest margin expansion and growth in non-interest-bearing deposits. The company's net income increased, and the board declared a 10% increase in the quarterly cash dividend. Loan balances were impacted by commercial loan repayments despite strong origination volume.
Net income for the quarter ended September 30, 2021, was $19.7 million, or $0.26 per diluted share, compared to $18.5 million, or $0.24 per diluted share, for the quarter ended June 30, 2021.
The Board of Directors declared a quarterly cash dividend of $0.11 per share, representing a 10% increase from the prior quarter.
Non-interest-bearing deposits increased by 6.3% from June 30, 2021.
Net interest margin expanded seven basis points to 2.99% for the quarter ended September 30, 2021.
Kearny Financial
Kearny Financial
Forward Guidance
While no specific forward guidance was provided, the report highlights optimism regarding the commercial loan pipeline and a commitment to capital management strategies.
Positive Outlook
- Commercial loan pipeline stands at a historically high level heading into the second quarter of the fiscal year.
- Authorization of a new 10% share repurchase plan.
- Increase in the quarterly cash dividend.
- Commitment to returning excess capital to shareholders.
- Sufficient capital to take advantage of strategic capital deployment opportunities.
Challenges Ahead
- Loan balances for the quarter were negatively impacted by record levels of commercial loan repayment activity.
- Deposits decreased $90.2 million due to the controlled run-off of time deposits.
- Loans receivable decreased $62.1 million due to record levels of repayment activity.
- Investment securities decreased $26.3 million.
- COVID-19 pandemic could have an adverse impact on the Company, its clients and the communities it serves.