NASDAQ$KRNY

Kearny Financial Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Kearny Financial's net income was $16.4 million, with earnings per diluted share of $0.20, driven by margin expansion and controlled operating expenses.

Kearny Financial Corp. reported a net income of $16.4 million, or $0.20 per diluted share, for the quarter ended March 31, 2021. The company experienced double-digit margin expansion due to a decrease in the cost of interest-bearing liabilities. Asset quality remained solid despite an increase in reserves on individually evaluated loans.

  • Net income for the quarter was $16.4 million, or $0.20 per diluted share.
  • Deposits increased by $61.8 million to $5.37 billion, reflecting growth in core non-maturity deposits.
  • Net interest income increased by $3.1 million to $47.6 million.
  • The Company repurchased 3,026,564 shares of common stock at a cost of $34.9 million, or $11.52 per share.

Headline financials

Total Revenue

$53.1M

Previous: $43.8M+21.2%
EPS (adj)

$0.20

Previous: $0.09+122.2%
Efficiency Ratio

56.1%

Previous: 64.1%-12.4%
ROA (annualized)

0.9%

No prior period
Net Interest Margin

2.8%

Previous: 2.5%+15.0%
ROE (annualized)

6.1%

No prior period
Tangible Equity Ratio

11.9%

No prior period
ACL to Total Loans

1.3%

No prior period
ACL to NPLs

89.3%

No prior period
Capital Expenditures

-$2.89M

Previous: -$6.27M+53.9%
Free Cash Flow

$13.5M

Previous: $2.98M+353.9%
Net Income

$16.4M

Previous: $9.25M+77.5%
Operating Income

$30.1M

Previous: $15.3M+97.0%
Gross Profit

$53.1M

Previous: $43.8M+21.2%
Cash & Equivalents

$109M

Previous: $59.5M+83.3%
Total Assets

$7.36B

Previous: $6.77B+8.6%
Stock-Based Comp

$1.95M

Previous: $2.07M-5.7%

Revenue & EPS history

Kearny Financial · Revenue · Quarterly

$53.1M

Q3 2021+21.2%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
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

The COVID-19 pandemic is having an adverse impact on the Company, its customers and the communities it serves. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and when and how the economy may be reopened or remain open.

Headwinds

  • The demand for our products and services may decline, making it difficult to grow assets and income.
  • If the economy is unable to substantially reopen or remain open, and high levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income.
  • Collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase.
  • Our allowance for credit losses may increase if borrowers experience financial difficulties, which will adversely affect our net income.
  • The net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us.

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 Q3 2021

Historical avgQ3 2021

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro