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Dec 31, 2023
Kearny Financial Q2 2024 Earnings Report
Reported a net loss due to non-recurring items, including losses from securities repositioning and BOLI restructuring. Strategic actions were taken to enhance the balance sheet and liquidity.
Key Takeaways
Kearny Financial Corp. reported a net loss of $9.0 million for the quarter ended December 31, 2023, compared to a net income of $9.8 million for the previous quarter. The results were impacted by non-recurring items, including a pre-tax loss of $18.1 million from the sale of investment securities and tax expense of $5.7 million related to the surrender of BOLI policies. The company executed strategies to enhance its balance sheet, liquidity, and asset quality.
Net loss of $9.0 million, or $0.14 per diluted share, compared to net income of $9.8 million, or $0.16 per diluted share, for the quarter ended September 30, 2023.
Executed the sale of $122.2 million of available-for-sale debt securities, resulting in a pre-tax net loss of $18.1 million.
Initiated a restructuring of its BOLI portfolio, resulting in tax expense of $5.7 million and exchange charges of $573 thousand.
Non-performing assets decreased $1.1 million to $49.8 million, or 0.63% of total assets.
Forward Guidance
The company remains focused on sustainable growth in core loan and deposit relationships and leveraging its digital banking platform.
Positive Outlook
- Laser-focused on sustainable growth in core loan and deposit relationships
- Continuing to further leverage our recently implemented, best-in-class, digital banking platform
- Enhance our balance sheet
- Enhance our liquidity position
- Enhance our risk profile and asset quality metrics
Challenges Ahead
- Earnings for the current quarter were adversely impacted by a number of non-recurring items
- Pre-tax net loss of $18.1 million
- Tax expense of $5.7 million
- Net charge-offs totaled $4.1 million
- Net interest margin contracted 16 basis point to 1.94%
Historical Earnings Impact
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Avg. Return Before/After Earnings
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