On October 26, 2023, Kearny Financial Corp (KRNY, Financial) announced its first quarter fiscal 2024 results. The company reported a net income of $9.8 million, or $0.16 per diluted share, compared to $12.0 million, or $0.19 per diluted share, for the quarter ended June 30, 2023. Additionally, the Board of Directors declared a quarterly cash dividend of $0.11 per share, payable on November 22, 2023.
Company Performance and Strategies
Despite industry-wide macro-economic headwinds, Kearny Financial Corp (KRNY, Financial) continues to execute strategies to mitigate risk, manage operating expenses, and support the long-term franchise value of the Company. The company de-levered its balance sheet by an additional $90 million, slowed net interest margin compression, and focused on building high-value loan and deposit relationships. Furthermore, the company launched an enhanced digital banking platform to expand its client-facing online and mobile capabilities.
Balance Sheet Highlights
As of September 30, 2023, the company's total assets stood at $7.97 billion, marking a decrease of 1.1% from June 30, 2023. Loans receivable totaled $5.74 billion, a decrease of 1.6% from the previous quarter. Deposits were $5.43 billion, a decrease of 3.5% from June 30, 2023. The company's borrowings increased by 8.0% to $1.63 billion.
Earnings Performance Highlights
The return on average assets was 0.49% and the return on average equity was 4.57% for the quarter ended September 30, 2023. Net interest margin contracted one basis point to 2.10% for the quarter ended September 30, 2023. Non-interest income for the quarter ended September 30, 2023, increased to $4.0 million, up from $3.66 million in the previous quarter.
Asset Quality and Capital
The balance of non-performing assets decreased to $50.9 million, or 0.64% of total assets, at September 30, 2023. The company recorded a provision for credit losses of $245,000 for the quarter ended September 30, 2023. The company's tangible equity to tangible assets ratio equaled 8.20% at September 30, 2023.
The company's full earnings report can be found on the Securities and Exchange Commission website.
Explore the complete 8-K earnings release (here) from Kearny Financial Corp for further details.