Overview

• U.S. regional bank's Q4 net income and EPS declined from prior quarter

• Adjusted EPS for Q4 fell, with results affected by non-recurring charges

• Q4 net interest income rose 2.9% sequentially on higher loan yields and balances

Outlook

• Company did not provide specific financial guidance for the current quarter or full year in the press release

Result Drivers

• NON-RECURRING CHARGES - Qtr results were affected by a $1.6 mln discrete tax charge, $745,000 in severance, and $262,000 in OREO acquisition expense

• HIGHER NET INTEREST INCOME - Net interest income rose 2.9% from prior qtr, driven by higher loan yields and balances and a reduction in interest-bearing deposits

• INCREASED NON-INTEREST EXPENSE - Non-interest expense rose 4.8% from prior qtr, mainly due to higher salary and benefit costs, severance, and OREO-related expenses

Company press release: ID:nGNX83Yn6L

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Adjusted EPS	Miss	$0.15	$0.17 (2 Analysts)
Q4 EPS		$0.11
Q4 Net Income		$7.17 mln
Q4 Net Interest Income		$40.37 mln
Q4 Dividend		$0.11

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 $10.50, about 10.8% above its July 22 closing price of $9.48

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

Reuters Recommended Reads

• July 22 - Parke Bancorp Q2 net interest income rises on higher loan yields

• July 21 - Metropolitan Bank Q2 EPS falls on credit loss provision and one-time expenses

• July 23 - Huntington Bancshares' quarterly profit rises on interest income boost

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