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KRNY Nasdaq· Kearny Financial Corporation
Earnings report Q4 2023

Kearny Financial Corp. Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

Kearny Financial Corp. experienced robust revenue growth across its various segments in the latest quarter. The company's interest income totaled $82.63 million, with loans contributing $63.38 million, taxable investment securities contributing $16.76 million, tax-exempt investment securities contributing $0.08 million, and other interest-earning assets contributing $2.40 million.

Strengths

Kearny Financial Corp.'s strong revenue performance can be attributed to the significant increase in interest income compared to the same quarter last year. The company's interest income grew by approximately $10.18 million, or 14.1%, driven by higher interest rates and an expanded loan portfolio. The growth in loans, which contributed the majority of interest income, indicates the company's ability to attract borrowers and generate interest income from lending activities. Management has emphasized the importance of maintaining a diversified loan portfolio to mitigate risks and capitalize on market opportunities.

Challenges

Despite the overall positive revenue growth, Kearny Financial Corp. faced challenges in its non-interest income segment. The company reported a loss on the sale and call of securities amounting to $18.14 million, which negatively impacted its non-interest income. This loss can be attributed to market conditions and management's decision to divest certain securities. It is important for the company to carefully manage its investment portfolio to minimize potential losses and optimize non-interest income.

Noteworthy

Kearny Financial Corp. experienced a notable increase in its net interest income after provision for credit losses. The company's net interest income after provision for credit losses amounted to $33.73 million, reflecting a decrease of $9.38 million compared to the same quarter last year. This decrease can be attributed to the higher provision for credit losses, which indicates management's cautious approach in recognizing potential credit risks and ensuring adequate reserves.

Summary

Kearny Financial Corp. delivered a strong performance in terms of revenue growth in the latest quarter. The company experienced significant growth in interest income, primarily driven by an increase in loans and higher interest rates. However, challenges were observed in the non-interest income segment due to a loss on the sale and call of securities. Overall, Kearny Financial Corp. demonstrated its ability to generate revenue from lending activities and maintain a diversified loan portfolio. The company's cautious approach in managing credit risks and maintaining adequate reserves is commendable.

Source documents

Form 10-Q  filed on Feb 08, 2024
85 pages scanned

Reference data

Company financials Q4 revenue 17.7M
Analyst estimates Q4 EPS missed by -18.52%
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