Kearny Financial Q1 net income rises, helped by loan growth
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.)