Kearny Financial Q4 net income rises to $6.8 mln

Overview

• Kearny Financial Q4 net income rises to $6.8 mln from $6.6 mln in Q3

• Fiscal year net income at $26.1 mln, recovering from prior year's net loss

• Pre-tax, pre-provision EPS grows 23%, driven by net interest margin expansion

Outlook

• Kearny Financial expects sustained earnings growth and margin expansion

• Company confident in delivering long-term value for shareholders

Result Drivers

• NET INTEREST MARGIN - Expansion of 10 basis points to 2.00% driven by higher yields and average balances on loans receivable

• CREDIT QUALITY - Exceptional credit quality with negligible net charge-offs, reflecting strong underwriting

• EXPENSE MANAGEMENT - Disciplined expense management reflected in non-interest expense to average assets ratio of 1.58%

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "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 $7.25, about 9.8% above its July 23 closing price of $6.54

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNXtqlPm