Wed, May 7, 3:54 PM (4 days ago)
**Kearny Financial Corp. (KRNY) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Total revenue for Q1 2025 was $79.3 million, down from $82.1 million in Q1 2024. - **Profit Margins:** Net income was $6.6 million, or $0.11 per diluted share, compared to $7.4 million, or $0.12 per diluted share, in Q1 2024. - **Cash Flow:** Net cash provided by operating activities was $16.7 million, down from $36.7 million in Q1 2024. - **Earnings Changes:** Net income for the nine months ended March 31, 2025 was $19.3 million, compared to $3.4 million in the same period of 2024. **Quarterly Performance Discussion:** - **Net Interest Income:** Decreased by $277,000 to $34.0 million, due to a decrease in interest income and an increase in interest expense. - **Non-Interest Income:** Increased by $359,000 to $4.6 million, driven by a gain on sale of loans and improved income from bank-owned life insurance. - **Non-Interest Expense:** Increased by $1.3 million to $30.4 million, primarily due to higher salaries, employee benefits, and marketing expenses. - **Provision for Credit Losses:** Increased by $17,000 to $366,000, driven by loan charge-offs. - **Income Tax Expense:** Decreased by $517,000 to $1.2 million, reflecting a lower level of pre-tax income. **Trends & Uncertainties:** - **Loan Growth:** Net loans receivable increased by $113.9 million, or 2.0%, driven by commercial and residential mortgage loan originations. - **Deposit Growth:** Total deposits increased by $549.2 million, or 10.6%, driven by a reallocation from FHLB advances into brokered certificates of deposits. - **Capital Position:** The company maintained a strong capital position, with total capital to risk-weighted assets at 14.41%. - **Liquidity:** The company had $126.1 million in short-term cash and cash equivalents and $1.00 billion in investment securities available for sale. **Future Operations Impact:** - The company's strategic initiatives, including deposit growth and digital banking, are expected to drive future revenue and earnings growth. - The company's strong capital position and liquidity provide a solid foundation for future operations. - The company's exposure to interest rate risk and credit risk will continue to be managed through its ALM program and credit policies.