FAIRFIELD, N.J. - Kearny Financial Corp. (NASDAQ GS: NASDAQ:KRNY), the parent company of Kearny Bank, has announced key executive promotions set to take effect from July 1, 2024. Keith Suchodolski, who has been with the company since 2013 and served as Chief Financial Officer since July 2018, is being promoted to Senior Executive Vice President and Chief Operating Officer.
His expanded role will cover strategic oversight of various departments including retail and business banking, human resources, marketing, corporate finance, and corporate administration.
Concurrently, Sean Byrnes will step up to the role of Executive Vice President and Chief Financial Officer. Byrnes, a Certified Public Accountant and CFA charterholder, has been with Kearny Bank since September 2020, initially as Chief Accounting Officer before becoming Deputy Chief Financial Officer. His promotion will see him take on all corporate finance responsibilities and work alongside the senior leadership team to achieve the company's strategic objectives.
Craig L. Montanaro, President and Chief Executive Officer of Kearny Financial Corp., expressed confidence in the appointed leaders, citing Suchodolski's proven leadership and success within the company, and anticipating his significant contribution to the company's strategic vision. Montanaro also congratulated Byrnes on his promotion, recognizing the depth of talent within the company to fill these critical roles.
Kearny Financial Corp., headquartered in Fairfield, New Jersey, operates 43 retail branch offices across northern and central New Jersey, as well as Brooklyn and Staten Island, New York. As of March 31, 2024, the company reported approximately $7.8 billion in total assets.
The information in this article is based on a press release statement from Kearny Financial Corp. and reflects the company's current leadership changes and financial standing. The forward-looking statements in the press release are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The company does not commit to updating any forward-looking statements that may be revised in the future.
In other recent news, Kearny Financial Corp has been under the financial microscope with Keefe, Bruyette & Woods adjusting its outlook on the company. The firm has reduced Kearny Financial's price target to $6.00 from the previous $6.75 while maintaining a Market Perform rating.
This revision was prompted by Kearny Financial's recent earnings report, which displayed a modest earnings per share (EPS) beat, driven by a lower provision and slightly improved core pre-provision net revenue.
Still, Keefe, Bruyette & Woods anticipates Kearny Financial's net interest margin to compress in the upcoming quarters due to rising certificate of deposit costs. Consequently, the firm has lowered its EPS forecast for fiscal year 2025, expecting Kearny Financial's profitability to remain subdued until more sustainable margin improvements emerge in the second half of that fiscal year.
In terms of return on tangible common equity, the firm projects a 4% figure for both fiscal years 2024 and 2025. The analysts also expect Kearny Financial's shares to hover around their current valuation, which is 0.6 times tangible book value. These recent developments reflect a careful analysis of Kearny Financial's current and projected financial standing.
InvestingPro Insights
As Kearny Financial Corp. (NASDAQ GS: KRNY) gears up for a strategic shift in leadership, the company's financial health and market performance are of particular interest to investors.
According to InvestingPro data, Kearny Financial Corp. currently has a market capitalization of $346 million, with a trailing twelve-month price-to-earnings (P/E) ratio of 23.08, suggesting a valuation that might interest value-focused investors. Notably, the firm's price-to-book ratio as of the last twelve months stands at a relatively low 0.41, which could indicate that the stock is undervalued compared to its book value.
One of the InvestingPro Tips highlights that Kearny Financial is trading at a low Price/Book multiple, which could be a signal for value investors to take a closer look at the company's stock, especially in light of the recent executive promotions.
Moreover, the bank has been consistent in returning value to shareholders, maintaining dividend payments for 10 consecutive years, with a substantial dividend yield of 7.91% as of the latest available data. This commitment to shareholder returns could be reassuring to income-focused investors considering the company's stock.
While the bank has demonstrated a strong track record of dividend payments, analysts are forecasting a sales decline in the current year, and a potential drop in net income. These concerns are reflected in the revenue growth metrics, which show a decrease of 21.4% over the last twelve months. Despite these challenges, Kearny Financial remains profitable over the same period, and analysts predict the company will maintain profitability this year.
Investors interested in a deeper analysis of Kearny Financial Corp., including additional InvestingPro Tips, can explore further by visiting https://www.investing.com/pro/KRNY. There are 9 additional tips available on InvestingPro, providing a comprehensive understanding of the bank's financial health and market position. For those considering an InvestingPro subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. This exclusive offer can provide valuable insights for making informed investment decisions.
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