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Dec 31, 2024
Kearny Financial Q2 2025 Earnings Report
Reported net income and earnings per share increased, deposit grew, and net interest margin expanded.
Key Takeaways
Kearny Financial Corp. reported a net income of $6.6 million for the quarter ended December 31, 2024, compared to $6.1 million for the previous quarter. Earnings per share were $0.11 basic and $0.10 diluted. Deposits increased by 3.7% and the net interest margin expanded by two basis points to 1.82%.
Net income increased to $6.6 million, compared to $6.1 million for the quarter ended September 30, 2024.
Earnings per basic share were $0.11, and diluted share were $0.10 for the quarter ended December 31, 2024.
Deposits grew by 3.7% from September 30, 2024, driven by branch network, digital channels, and commercial lending relationships.
Net interest margin expanded two basis points to 1.82% for the quarter ended December 31, 2024.
Kearny Financial
Kearny Financial
Forward Guidance
The continuation of positive deposit trends coupled with the reinvestment of low-coupon cash flows from our loan and securities portfolio should serve as earnings tailwinds in the coming quarters.
Positive Outlook
- Positive deposit trends
- Reinvestment of low-coupon cash flows
- Balance of outstanding borrowings while reducing our cost of funds
- maintaining available secured borrowing capacity with the FHLB
- The regulatory capital ratios of both the Company and the Bank were in excess of the levels required by federal banking regulators
Challenges Ahead
- Market expectations for fed funds rate cuts have moderated
- Higher costs and average balances of brokered certificates of deposit
- Reduced average balances and yields on interest-earning assets
- Decrease in the fair value of the Company’s available for sale securities
- Net charge-offs totaled $573,000, or 0.04% of average loans