NASDAQ$KRNY

Kearny Financial Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Kearny Financial's first quarter results for fiscal year 2022 were reported, featuring record earnings and an increased cash dividend.

Kearny Financial Corp. reported a strong start to fiscal year 2022 with record earnings driven by net interest margin expansion and growth in non-interest-bearing deposits. The company's net income increased, and the board declared a 10% increase in the quarterly cash dividend. Loan balances were impacted by commercial loan repayments despite strong origination volume.

  • Net income for the quarter ended September 30, 2021, was $19.7 million, or $0.26 per diluted share, compared to $18.5 million, or $0.24 per diluted share, for the quarter ended June 30, 2021.
  • The Board of Directors declared a quarterly cash dividend of $0.11 per share, representing a 10% increase from the prior quarter.
  • Non-interest-bearing deposits increased by 6.3% from June 30, 2021.
  • Net interest margin expanded seven basis points to 2.99% for the quarter ended September 30, 2021.

Headline financials

Total Revenue

$53.4M

Previous: $51.9M+2.9%
EPS (adj)

$0.28

Previous: $0.17+64.7%
Efficiency Ratio

59.6%

No prior period
ROA (annualized)

1.1%

No prior period
Net Interest Margin

3.0%

Previous: 2.7%+12.4%
ROE (annualized)

7.7%

No prior period
Tangible Equity Ratio

11.5%

Previous: 12.8%-10.4%
Capital Expenditures

-$400K

Previous: -$1.37M+70.7%
Free Cash Flow

$19.3M

Previous: $10M+92.9%
Net Income

$19.7M

Previous: $11.4M+73.3%
Operating Income

$39.4M

Previous: $25.7M+53.1%
Gross Profit

$53.4M

Previous: $51.9M+2.9%
Cash & Equivalents

$54.1M

Previous: $146M-62.9%
Total Assets

$7.18B

Previous: $7.31B-1.7%
Stock-Based Comp

$2.04M

Previous: $1.86M+9.6%

Revenue & EPS history

Kearny Financial · Revenue · Quarterly

$53.4M

Q1 2022+2.9%vs Q1 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Kearny Financial · $58.3M total across 4 segments · Q3 2021

  • Loans
    $49.3M
  • Taxable Inv. Securities
    $7.89M
  • Other Int. Assets
    $705K
  • Tax-Exempt Inv. Securities
    $410K

Forward guidance

While no specific forward guidance was provided, the report highlights optimism regarding the commercial loan pipeline and a commitment to capital management strategies.

Tailwinds

  • Commercial loan pipeline stands at a historically high level heading into the second quarter of the fiscal year.
  • Authorization of a new 10% share repurchase plan.
  • Increase in the quarterly cash dividend.
  • Commitment to returning excess capital to shareholders.
  • Sufficient capital to take advantage of strategic capital deployment opportunities.

Headwinds

  • Loan balances for the quarter were negatively impacted by record levels of commercial loan repayment activity.
  • Deposits decreased $90.2 million due to the controlled run-off of time deposits.
  • Loans receivable decreased $62.1 million due to record levels of repayment activity.
  • Investment securities decreased $26.3 million.
  • COVID-19 pandemic could have an adverse impact on the Company, its clients and the communities it serves.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.1%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+0.1%

Avg return

30 days after

55%

35 / 64 earnings

Positive

+11.8%

Q3 2020

Best reaction

-8.4%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+2.5%+4.8%+4.1%
Q2 2026-1.8%-0.5%-7.9%
Q1 2026-2.2%-2.2%-0.9%
Q3 2025+4.7%+2.3%-2.6%
Q2 2025-5.5%-4.1%-4.0%
Q1 2025-6.2%-2.2%+14.4%
Q4 2024+0.4%+0.7%-3.5%
Q3 2024-4.8%-10.1%-5.7%
Q2 2024-6.8%-7.2%-21.9%
Q1 2024+3.8%+4.7%+20.2%
Q4 2023+6.8%+2.9%-9.9%
Q3 2023+3.7%-1.3%-4.9%
Q2 2023-8.4%-9.2%-3.6%
Q1 2023-4.3%-11.1%-14.3%
Q4 2022-0.8%+1.4%-0.4%
Q3 2022-2.6%-3.4%+1.8%
Q2 2022-1.1%-0.5%+1.2%
Q1 2022+1.1%+2.1%-2.5%
Q4 2021-0.6%+2.8%+9.4%
Q3 2021+1.5%+3.2%+4.1%
Q2 2021+2.5%+3.1%+12.4%
Q1 2021-1.8%+4.8%+19.5%
Q4 2020+2.9%-3.1%+1.0%
Q3 2020+11.8%+6.6%+3.0%
Q2 2020-5.1%-6.8%-16.2%
Q1 2020+1.7%+2.8%+2.2%
Q4 2019-3.0%-4.7%-8.4%
Q3 2019+3.4%+3.9%-0.2%
Q2 2019-2.8%-0.8%+3.2%
Q1 2019-1.2%-1.6%+1.3%
Q4 2018+7.9%+3.8%+2.3%
Q3 2018+4.9%+4.9%+7.1%
Q2 2018+1.5%-0.7%-4.4%
Q1 2018-2.9%-4.5%-2.6%
Q4 2017-0.7%-1.4%-3.1%
Q3 2017-4.9%-6.2%-8.8%
Q2 2017+5.5%+5.5%+6.2%
Q1 2017+0.0%-1.8%+9.7%
Q4 2016+0.5%+1.9%+5.6%
Q3 2015-2.3%
Q3 2016+0.4%
Q2 2016-3.7%
Q1 2016+0.8%
Q1 2015+0.8%
Q4 2015+0.8%
Q4 2014+0.8%
Q4 2013+0.8%
Q2 2015+0.8%
Q1 2014+0.8%
Q2 2014+0.8%
Q3 2014+0.8%
Q3 2013-1.2%
Q2 2013+3.2%
Q1 2013-0.7%
Q4 2012+0.3%
Q3 2012+2.4%
Q2 2012+1.0%
Q1 2012-3.3%
Q4 2011+0.9%
Q3 2011+1.7%
Q2 2010+1.9%
Q1 2010-0.8%
Q4 2010-1.2%
Q3 2010-0.7%

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