Kearny Financial Corp. Reports Asset Growth to $7.73 Billion and Decline in Net Income for Quarter Ended March 31, 2025

Kearny Financial Corp. reported a modest increase in total assets, rising to $7.73 billion as of March 31, 2025, up from $7.68 billion at the end of the previous fiscal year. This growth was primarily driven by an increase in cash and cash equivalents, as well as net loans receivable, which rose by $113.9 million to $5.80 billion. However, the company experienced a decrease in investment securities available for sale, which fell by $69.4 million to $1.00 billion, largely due to principal repayments and a net unrealized loss in the portfolio.

The company’s net income for the quarter ended March 31, 2025, was $6.6 million, or $0.11 per diluted share, compared to $7.4 million, or $0.12 per diluted share, for the same period in 2024. The decline in net income was attributed to increased non-interest expenses and a decrease in net interest income, which fell to $34.0 million from $34.3 million year-over-year. The net interest margin slightly improved to 1.90%, reflecting a decrease in the average balance of interest-bearing borrowings.

Kearny Financial's non-interest income increased to $4.6 million for the quarter, up from $4.2 million in the prior year, driven by a gain on the sale of loans, which totaled $112,000 compared to a loss of $712,000 in the previous year. The company also reported a decrease in the provision for credit losses, which was $366,000 for the quarter, compared to $349,000 in the same quarter last year. The allowance for credit losses stood at $44.5 million, representing 0.76% of total loans.

In terms of operational metrics, total deposits increased by $549.2 million, or 10.6%, to $5.71 billion, reflecting growth in both retail and brokered time deposits. The company’s borrowings decreased significantly by $495.8 million to $1.21 billion, primarily due to the shift from Federal Home Loan Bank advances to brokered certificates of deposits. Kearny Financial's stockholders' equity decreased to $748.1 million, impacted by cash dividends and other comprehensive losses, despite net income contributions.

Looking ahead, Kearny Financial Corp. remains focused on maintaining its capital position and managing interest rate risk, with a strong emphasis on leveraging its branch network and digital channels for deposit growth. The company continues to monitor market conditions and adjust its strategies accordingly to enhance profitability and shareholder value.