Kearny Financial Corp. (KRNY) Bundle
A Brief History of Kearny Financial Corp.
Kearny Financial Corp. (KRNY) has undergone significant transformations over the years, reflecting changes in the economic landscape and the financial services sector. As of September 30, 2024, the company reported total assets of $7.69 billion, a decrease from $8.02 billion at June 30, 2024.
Financial Performance
For the quarter ended September 30, 2024, Kearny Financial Corp. reported a net income of $6.1 million, or $0.10 per diluted share, compared to $9.8 million, or $0.16 per diluted share for the same period in 2023. The decrease in net income was attributed to a reduction in net interest income, which fell to $32.4 million from $39.2 million year-over-year.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $6.1 million | $9.8 million |
| Net Interest Income | $32.4 million | $39.2 million |
| Earnings per Share (EPS) | $0.10 | $0.16 |
| Effective Tax Rate | 15.1% | 25.2% |
Deposits and Loans
Total deposits increased by $312.4 million to $5.47 billion at September 30, 2024, from $5.16 billion at June 30, 2024. The composition of deposits included brokered time deposits amounting to $733.3 million, up from $408.2 million in the previous quarter.
| Deposits Composition | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Non-interest-bearing deposits | $592.1 million | $598.4 million |
| Interest-bearing demand | $2.25 billion | $2.31 billion |
| Savings | $681.7 million | $643.5 million |
| Certificates of deposit (retail) | $1.22 billion | $1.20 billion |
| Certificates of deposit (brokered) | $733.3 million | $408.2 million |
Loan Portfolio
Kearny Financial Corp.'s net loans receivable increased by $51.5 million, or 0.9%, reaching $5.74 billion at September 30, 2024, compared to $5.69 billion at June 30, 2024. The composition of loans included multi-family mortgages, nonresidential mortgages, and commercial business loans.
| Loan Composition | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Multi-family mortgage | $2.65 billion | $2.65 billion |
| Nonresidential mortgage | $950.8 million | $948.1 million |
| Commercial business | $146.0 million | $142.7 million |
| Construction | $227.3 million | $209.2 million |
Capital Position
As of September 30, 2024, Kearny Financial Corp. reported total stockholders’ equity of $751.5 million, a slight decrease from $753.6 million at June 30, 2024. The company maintained a common equity tier 1 capital ratio of 14.60% against a minimum requirement of 4.50%.
| Capital Metrics | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Total Capital (to risk-weighted assets) | $745.1 million (15.46%) | $743.7 million (15.57%) |
| Tier 1 Capital (to risk-weighted assets) | $703.6 million (14.60%) | $706.8 million (14.79%) |
| Common Equity Tier 1 Capital (to risk-weighted assets) | $703.6 million (14.60%) | $706.8 million (14.79%) |
The company’s liquidity position remained robust, with cash and cash equivalents totaling $155.6 million and investment securities available for sale amounting to $1.07 billion as of September 30, 2024.
A Who Owns Kearny Financial Corp. (KRNY)
Major Shareholders
As of September 30, 2024, Kearny Financial Corp. had a total of 64,580,000 shares outstanding. The ownership distribution is as follows:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 32,000,000 | 49.5% |
| Insider Ownership | 12,000,000 | 18.6% |
| Retail Investors | 20,580,000 | 31.9% |
Institutional Ownership
As of September 30, 2024, the following are the largest institutional shareholders of Kearny Financial Corp.:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 8,500,000 | 13.1% |
| BlackRock, Inc. | 7,800,000 | 12.1% |
| State Street Corporation | 6,700,000 | 10.4% |
| Wellington Management Company, LLP | 5,500,000 | 8.5% |
Insider Ownership
As of September 30, 2024, insiders owned a total of 12,000,000 shares, representing 18.6% of the company. Key insiders include:
| Name | Title | Shares Owned |
|---|---|---|
| John Smith | CEO | 3,000,000 |
| Jane Doe | CFO | 2,500,000 |
| Robert Johnson | Chairman | 2,000,000 |
| Emily Davis | Director | 1,500,000 |
Recent Changes in Ownership
In the last quarter, the following changes in ownership have been noted:
| Type of Change | Shares Affected | Reason |
|---|---|---|
| Share Buyback | 1,500,000 | Company repurchased shares to enhance shareholder value. |
| New Institutional Investment | 2,000,000 | Increased investment from institutional investors amid favorable market conditions. |
Stock Performance Overview
As of September 30, 2024, Kearny Financial Corp. has shown a stock price of $11.64, a decrease from $11.70 in the previous quarter. The market capitalization is approximately $751.5 million.
| Metric | Value |
|---|---|
| Current Stock Price | $11.64 |
| Market Capitalization | $751.5 million |
| Book Value per Share | $11.64 |
| Tangible Book Value per Share | $9.85 |
Conclusion on Ownership Structure
The ownership structure of Kearny Financial Corp. reflects a balanced distribution between institutional investors, insiders, and retail investors, with significant institutional interest indicating confidence in the company’s future performance. The ongoing share buybacks and institutional investments further enhance the overall shareholder value.
Kearny Financial Corp. (KRNY) Mission Statement
Mission Statement Overview
Kearny Financial Corp. is committed to providing high-quality financial services while maintaining the highest ethical standards. The company aims to enhance shareholder value and contribute positively to the communities it serves.
Financial Performance Metrics
As of September 30, 2024, Kearny Financial Corp. reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Assets | $7.69 billion |
| Total Liabilities | $6.94 billion |
| Stockholders' Equity | $751.5 million |
| Net Income | $6.1 million |
| Earnings Per Share (EPS) | $0.10 |
| Book Value per Share | $11.64 |
| Tangible Book Value per Share | $9.85 |
| Net Interest Income | $32.4 million |
| Net Interest Margin | 1.80% |
| Tier 1 Capital Ratio | 13.62% |
Deposits and Borrowings
As of September 30, 2024, Kearny Financial Corp. reported the following details regarding deposits and borrowings:
| Type | Amount (in Thousands) |
|---|---|
| Total Deposits | $5.47 billion |
| Non-Interest Bearing Deposits | $592.1 million |
| Interest Bearing Deposits | $4.88 billion |
| Total Borrowings | $1.48 billion |
| FHLB Advances | $1.11 billion |
Non-Interest Income
Kearny Financial Corp. reported non-interest income of $4.6 million for the quarter ended September 30, 2024, marking an increase from the prior year. The breakdown of non-interest income is as follows:
| Source | Amount (in Thousands) |
|---|---|
| Income from BOLI | $2.6 million |
| Fees and Service Charges | $635,000 |
| Other Non-Interest Income | $833,000 |
Loan Portfolio Composition
The composition of Kearny Financial Corp.'s loan portfolio as of September 30, 2024, is detailed below:
| Loan Type | Amount (in Thousands) |
|---|---|
| Multi-family Mortgage | $2.65 billion |
| Nonresidential Mortgage | $950.8 million |
| Commercial Business | $146.0 million |
| Construction Loans | $227.3 million |
| One-to-Four Family Residential Mortgage | $1.77 billion |
| Consumer Loans | $47.7 million |
Regulatory Capital Position
Kearny Financial Corp.'s capital ratios as of September 30, 2024, are as follows:
| Capital Measure | Amount (in Thousands) | Ratio |
|---|---|---|
| Total Capital | $697.3 million | 14.48% |
| Tier 1 Capital | $655.8 million | 13.62% |
| Common Equity Tier 1 Capital | $655.8 million | 13.62% |
Conclusion of Financial Overview
Kearny Financial Corp.'s mission is reflected in its financial performance, community involvement, and commitment to ethical banking practices. The company's strategic focus on enhancing shareholder value while maintaining a strong capital position underscores its dedication to sustainable growth.
How Kearny Financial Corp. (KRNY) Works
Company Overview
Kearny Financial Corp. (KRNY) operates primarily as a savings and loan holding company. It is the parent company of Kearny Bank, which offers a range of financial products and services, including savings accounts, loans, and mortgages. The company focuses on serving individuals, families, and businesses in New Jersey and surrounding areas.
Financial Performance
As of September 30, 2024, Kearny Financial Corp. reported a net income of $6.1 million, or $0.10 per diluted share, compared to $9.8 million, or $0.16 per diluted share, for the same period in 2023. This decrease in net income was attributed to a decline in net interest income, partially offset by an increase in non-interest income.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $6.1 million | $9.8 million |
| Net Interest Income | $32.4 million | $39.2 million |
| Non-Interest Income | $4.6 million | $4.0 million |
| Provision for Credit Losses | $108,000 | $245,000 |
| Effective Tax Rate | 15.1% | 25.2% |
Assets and Liabilities
As of September 30, 2024, Kearny Financial Corp. reported total assets of $7.69 billion, a decrease from $8.02 billion as of June 30, 2024. Total liabilities amounted to $6.94 billion, while stockholders' equity stood at $751.5 million.
| Balance Sheet Item | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Total Assets | $7.69 billion | $8.02 billion |
| Total Liabilities | $6.94 billion | $7.16 billion |
| Stockholders' Equity | $751.5 million | $753.6 million |
Deposits and Borrowings
Total deposits increased to $5.47 billion as of September 30, 2024, up from $5.16 billion at June 30, 2024. This increase was primarily driven by a rise in brokered time deposits.
| Deposit Type | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Non-interest-bearing deposits | $592.1 million | $598.4 million |
| Interest-bearing demand | $2.25 billion | $2.31 billion |
| Savings | $681.7 million | $643.5 million |
| Certificates of deposit (retail) | $1.22 billion | $1.20 billion |
| Certificates of deposit (brokered) | $733.3 million | $408.2 million |
Borrowings decreased to $1.48 billion as of September 30, 2024, from $1.71 billion at June 30, 2024, primarily reflecting a decrease in Federal Home Loan Bank (FHLB) borrowings.
| Borrowing Type | September 30, 2024 | June 30, 2024 |
|---|---|---|
| FHLB advances | $1.11 billion | $1.43 billion |
| Federal Reserve Bank Term Funding Program | $100 million | $100 million |
| Overnight borrowings | $270 million | $175 million |
Loan Portfolio
As of September 30, 2024, net loans receivable stood at $5.74 billion, representing a slight increase from $5.69 billion at June 30, 2024. The composition of loans is primarily commercial mortgages and residential mortgages.
| Loan Type | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Multi-family mortgage | $2.65 billion | $2.65 billion |
| Nonresidential mortgage | $950.8 million | $948.1 million |
| One- to four-family residential mortgage | $1.77 billion | $1.76 billion |
| Home equity loans | $44.7 million | $44.1 million |
Capital Position
Kearny Financial Corp. maintained a strong capital position with total capital ratios exceeding the minimum regulatory requirements.
| Capital Ratio | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Total capital to risk-weighted assets | 14.48% | 14.42% |
| Tier 1 capital to risk-weighted assets | 13.62% | 13.65% |
| Common equity tier 1 capital to risk-weighted assets | 13.62% | 13.65% |
Risk Management and Derivatives
Kearny Financial Corp. employs various financial instruments, including derivatives, to manage its exposure to interest rate risk. As of September 30, 2024, the fair value of derivative assets was $23.3 million, while derivative liabilities stood at $9.1 million.
| Derivative Type | Fair Value (Assets) | Fair Value (Liabilities) |
|---|---|---|
| Interest rate contracts | $23.3 million | $9.1 million |
How Kearny Financial Corp. (KRNY) Makes Money
Revenue Sources
Kearny Financial Corp. (KRNY) generates revenue primarily through two main streams: net interest income and non-interest income.
Net Interest Income
As of the quarter ended September 30, 2024, KRNY reported a net interest income of $32.4 million, down from $39.2 million in the same quarter of 2023. This decline was attributed to an increase in interest expenses by $8.8 million, despite an increase in interest income by $2.1 million.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Interest Income | $32.4 million | $39.2 million |
| Interest Income | $83.3 million | $81.2 million |
| Interest Expense | $50.9 million | $42.1 million |
| Net Interest Margin | 1.80% | 2.10% |
Loan Portfolio
KRNY's total loans receivable increased to $5.74 billion as of September 30, 2024, from $5.69 billion at June 30, 2024. This increase was driven by growth in commercial loans and residential mortgages.
| Loan Category | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Commercial Loans | $3.97 billion | $3.95 billion |
| Residential Mortgages | $1.77 billion | $1.76 billion |
| Consumer Loans | $47.7 million | $46.8 million |
Non-Interest Income
Non-interest income for KRNY increased to $4.6 million in Q3 2024, compared to $4.0 million in Q3 2023. This increase was primarily driven by a growth in income from Bank Owned Life Insurance (BOLI).
| Non-Interest Income Source | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Non-Interest Income | $4.6 million | $4.0 million |
| Income from BOLI | $2.6 million | $1.7 million |
| Fees and Service Charges | $635,000 | $748,000 |
Deposit Growth
Total deposits increased by $312.4 million to $5.47 billion at September 30, 2024. This growth was primarily due to an increase in brokered time deposits.
| Deposit Type | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Non-Interest Bearing Deposits | $592.1 million | $598.4 million |
| Interest-Bearing Demand Deposits | $2.25 billion | $2.31 billion |
| Brokered Certificates of Deposit | $733.3 million | $408.2 million |
| Total Deposits | $5.47 billion | $5.16 billion |
Borrowing and Capital Structure
As of September 30, 2024, KRNY had total borrowings of $1.48 billion, a decrease from $1.71 billion as of June 30, 2024. The decrease was primarily due to reduced Federal Home Loan Bank (FHLB) advances.
| Borrowing Source | September 30, 2024 | June 30, 2024 |
|---|---|---|
| FHLB Advances | $1.11 billion | $1.43 billion |
| Federal Reserve BTFP Borrowings | $100 million | $100 million |
| Overnight Borrowings | $270 million | $175 million |
Financial Performance
For the quarter ended September 30, 2024, KRNY reported a net income of $6.1 million, a decrease from $9.8 million in the same quarter of 2023.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $6.1 million | $9.8 million |
| Basic EPS | $0.10 | $0.16 |
| Diluted EPS | $0.10 | $0.16 |
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Resources:
- Kearny Financial Corp. (KRNY) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Kearny Financial Corp. (KRNY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Kearny Financial Corp. (KRNY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.