Kearny Financial Corp. Announces Wholesale Restructuring and Adoption of Operating Efficiency Initiative
December 08 2022 - 8:30AM
Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the
holding company of Kearny Bank (the “Bank”), announced today the
completion of a wholesale restructuring related to its investment
securities portfolio. In addition, the Company announced the
adoption of a company-wide operating efficiency initiative.
Wholesale Restructuring
The Company executed the sale of $121.4 million
of its lower-yielding available-for-sale debt securities for an
estimated after-tax loss of approximately $11.0 million. Proceeds
from the sale were reinvested in debt securities currently
yielding, on average, 440 basis points higher than the securities
that were sold. In addition, the Company purchased approximately
$100.0 million of debt securities, funded by wholesale borrowings,
which will produce an average spread of 216 basis points. The loss
on sale of securities is expected to have a nominal impact on
tangible book value, as such loss was previously reflected in
capital through accumulated other comprehensive loss.
Operating Efficiency
Initiative
Given the prevailing economic and interest rate
environment, the Company has also embarked upon a company-wide
operating efficiency initiative, targeting an annualized reduction
in operating expense of five to ten percent. The goal of this
initiative is to improve the Company’s cost structure through
cost-reduction and cost-containment initiatives. These include
actions surrounding the optimization and reduction of vendor spend,
the automation or outsourcing of routine activities, and the
realignment of the Company’s workforce.
About Kearny Financial
Corp.
Kearny Financial Corp. is the parent company of Kearny Bank
which operates from its administrative headquarters in Fairfield,
New Jersey, and a total of 45 retail branch offices located
throughout northern and central New Jersey and Brooklyn and Staten
Island, New York. At September 30, 2022, Kearny Financial Corp. had
approximately $7.9 billion in total assets.
Statements contained in this news release that
are not historical facts are forward-looking statements as that
term is defined in the Private Securities Litigation Reform Act of
1995. Such forward-looking statements are subject to risks and
uncertainties which could cause actual results to differ materially
from those currently anticipated due to a number of factors, which
include, but are not limited to, factors discussed in documents
filed by the Company with the Securities and Exchange Commission
from time to time. The Company does not undertake and specifically
disclaims any obligation to update any forward-looking statement,
whether written or oral, that may be made from time to time by or
on behalf of the Company.
For further information contact:Craig L.
Montanaro, President and Chief Executive Officer, orKeith
Suchodolski, Senior Executive Vice President and Chief Financial
OfficerKearny Financial Corp.(973) 244-4500
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