Kearny Financial Q1 net income rises, helped by loan growth

By Reuters News


Overview

  • U.S. regional bank's fiscal Q1 net income rose 40% from prior quarter, EPS at $0.16

  • Company grew loans and deposits while reducing non-interest expense

  • Board declared quarterly dividend of $0.11 per share, unchanged from prior quarter


Outlook

  • Company expects ongoing loan repricing and balance sheet remixing to support margin expansion

  • Kearny Financial says strategic transformation will focus on expanding commercial and construction lending

  • Company aims to diversify funding with new Nonprofit and Independent Education Banking team


Result Drivers

  • LOAN AND DEPOSIT GROWTH - Co said higher loan balances and deposit growth contributed to results

  • EXPENSE REDUCTIONS - Lower salary, advertising, equipment and other expenses reduced non-interest expense

  • MARGIN PRESSURE - Net interest margin declined due to lower prepayment-related income and repricing of COVID-era funding


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 EPS

$0.16

Q1 Net Income

$10.04 mln

Q1 Net Interest Income

$40.08 mln

Q1 Dividend

$0.11


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy"

  • Wall Street's median 12-month price target for Kearny Financial Corp is $10.50, about 15.9% above its October 21 closing price of $9.06

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago


Reuters Recommended Reads

  • Oct 19 - ServisFirst Bancshares Q3 profit jumps on loan growth, wider interest margin

  • Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality

  • Oct 22 - United Bankshares Q3 EPS beats estimates, helped by loan growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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