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Jun 30, 2023
Kearny Financial Q4 2023 Earnings Report
Reported net income of $12.0 million, or $0.19 per diluted share.
Key Takeaways
Kearny Financial Corp. reported net income for the quarter ended June 30, 2023, of $12.0 million, or $0.19 per diluted share, compared to $10.3 million, or $0.16 per diluted share, for the quarter ended March 31, 2023.
Net interest margin compression slowed, declining nine basis points quarter-over-quarter.
Adjusted non-interest expense was down 2.7% from the prior quarter and 9.8% from the December 2022 run rate.
Tangible common equity increased by 33 basis points from the prior quarter.
Loan charge-off rate remains industry-leading, with full fiscal year 2023 net charge-offs of $810,000, or 0.01% of average loans.
Kearny Financial
Kearny Financial
Forward Guidance
The current operating environment for community banks remains challenging with near-term earnings headwinds. The company remains committed to serving its clients and communities while building franchise and shareholder value.
Positive Outlook
- The rate of net interest margin compression slowed.
- Operating efficiency initiative continues to gain traction.
- Improved capital position, increasing tangible common equity.
- Continued to reduce outstanding shares via repurchase program.
- Loan charge-off rate remains industry-leading.
Challenges Ahead
- An inverted yield curve presents near-term earnings headwinds.
- Intense competition for deposits presents near-term earnings headwinds.
- Slowing demand for loans presents near-term earnings headwinds.
- Total assets decreased by $284.5 million from March 31, 2023.
- Cash and cash equivalents decreased by $124.1 million from March 31, 2023.