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Jun 30, 2024
Kearny Financial Q4 2024 Earnings Report
Reported a GAAP net loss due to a non-cash goodwill impairment, but deposit origination efforts gained traction.
Key Takeaways
Kearny Financial Corp. reported a GAAP net loss for Q4 2024 of $90.1 million, or $1.45 per diluted share, primarily due to a $95.3 million non-cash goodwill impairment. Excluding the impact of the goodwill impairment and other non-recurring transactions, adjusted net income for the quarter was $5.6 million, or $0.09 per diluted share. Deposit origination efforts have continued to gain traction with non interest-bearing deposits growing $12.3 million, or 2.1%, quarter-over-quarter.
GAAP net loss of $90.1 million, or $1.45 per diluted share, attributable to a non-cash goodwill impairment of $95.3 million.
Adjusted net income of $5.6 million, or $0.09 per diluted share, excluding the goodwill impairment and other non-recurring transactions.
Non-performing assets in commercial real estate and multifamily portfolios improved by $15.7 million, or 0.17% of assets, from June 30, 2023.
Non-interest bearing deposits grew $12.3 million, or 2.1%, quarter-over-quarter.
Kearny Financial
Kearny Financial
Forward Guidance
Kearny Financial anticipates a net interest margin inflection in the near-term, as its retail time deposit portfolio has repriced above 4.00% and non-maturity deposit disintermediation has meaningfully slowed.
Positive Outlook
- Net interest margin inflection anticipated in the near-term.
- Retail time deposit portfolio has repriced above 4.00%.
- Non-maturity deposit disintermediation has meaningfully slowed.
- The performance of commercial real estate and multifamily portfolios continues to be outstanding.
- Deposit origination efforts, including those via our digital channel, have continued to gain traction
Challenges Ahead
- The Company reported a GAAP net loss for the quarter ended June 30, 2024 of $90.1 million.
- Total assets were $7.68 billion at June 30, 2024, a decrease of $158.5 million, or 2.0%, from March 31, 2024.
- Loans receivable totaled $5.73 billion at June 30, 2024, a decrease of $25.5 million, or 0.4%, from March 31, 2024.
- Deposits were $5.16 billion at June 30, 2024, a decrease of $50.9 million, or 1.0%, from March 31, 2024.
- Net interest income decreased $1.0 million to $33.3 million for the quarter ended June 30, 2024 from $34.3 million for the quarter ended March 31, 2024.