Kearny Financial Corp. reports steady earnings, dividend declared

FAIRFIELD, N.J. - Kearny Financial Corp. (NASDAQ GS: KRNY), the parent company of Kearny Bank, has reported a consistent net income of $6.6 million, or $0.11 per diluted share, for the quarter ending March 31, 2025. This performance mirrors the previous quarter’s results which also posted a net income of $6.6 million, but at $0.10 per diluted share. According to InvestingPro data, analysts expect the company to maintain profitability throughout the year, with projected earnings per share of $0.45 for fiscal year 2025.

The company’s Board of Directors has declared a quarterly cash dividend of $0.11 per share, scheduled for payment on May 21, 2025, to shareholders on record as of May 7, 2025. With a current dividend yield of 7.14% and an 11-year track record of consistent dividend payments, Kearny Financial stands out among dividend-paying stocks. InvestingPro analysis reveals several additional insights about the company’s financial health and future prospects.

President and CEO Craig L. Montanaro highlighted the growth in net interest income by $1.4 million, resulting in an eight basis points net interest margin expansion. The increase was attributed to a rise in net loans and deposits, along with a 24 basis point decrease in the cost of funds. Montanaro expressed confidence in the company’s continued margin expansion into the next quarter.

Despite fluctuations in the broader market, Kearny’s core business remains robust, with total assets slightly increasing to $7.73 billion as of March 31, 2025. The bank saw a modest uptick in loans receivable, reaching $5.85 billion, and deposits grew to $5.71 billion. Borrowings decreased by $45.0 million due to a reduction in Federal Home Loan Bank overnight borrowings. Trading at $6.16 per share with a market capitalization of $385 million, InvestingPro’s Fair Value analysis suggests the stock is currently undervalued, with analyst price targets ranging from $7.25 to $8.00.

On the earnings front, net interest margin expanded to 1.90% for the quarter, driven by lower cost deposits and reduced deposit rates. Non-interest income, however, decreased by 6.4% to $4.6 million, mainly due to lower gains on loan sales and electronic banking fees. Non-interest expense saw an increase of 2.8% to $30.4 million, primarily due to higher salaries and benefits, net occupancy, advertising, and other expenses.

The company’s asset quality remained stable, with non-performing assets holding at 0.49% of total assets. Net charge-offs were down to 0.03% of average loans on an annualized basis.

Book value per share increased modestly to $11.58, and tangible book value per share to $9.80. The company’s tangible equity to tangible assets ratio stood at 8.31%, and regulatory capital ratios exceeded the levels required to be classified as "well-capitalized." With a price-to-book ratio of 0.52, the stock trades at a significant discount to its book value. For deeper insights into Kearny Financial’s valuation metrics and growth potential, investors can access comprehensive analysis through InvestingPro, which offers exclusive financial health scores and detailed metrics.

Kearny Financial Corp. bases this financial analysis on a press release statement.

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