Kearny Financial Corp. Announces Investment Securities Repositioning
December 20 2023 - 8:30AM
Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the
holding company of Kearny Bank (the “Bank”), announced the
repositioning of a portion of its investment securities portfolio.
As part of the Company’s ongoing strategy to
realign its balance sheet for the prevailing economic and interest
rate environment, the Company executed the sale of $122.2 million
of its available-for-sale debt securities, yielding 3.22%, with a
weighted average remaining life of 8.2 years. The sale resulted in
an estimated after-tax loss of $12.9 million and is expected to
have a nominal impact on tangible book value, as the loss was
previously reflected in capital via accumulated other comprehensive
loss.
Proceeds from the sale were utilized to retire
higher-cost wholesale funding and to reinvest into loans yielding
current market rates. The transaction is expected to be immediately
accretive to net interest income.
In executing this transaction the Company has
achieved a number of strategic objectives, including:
- The retirement of
higher-cost wholesale funding, which provides for additional
liquidity and balance sheet flexibility;
- The liquidation of
$78.9 million of COVID-era investment securities, yielding 1.75%,
which are expected to underperform alternative assets in a variety
of interest rate scenarios; and
- The liquidation of
$37.1 million of floating-rate investment securities, reducing
balance sheet sensitivity to the short end of the yield curve.
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 43 retail branch offices located throughout
northern and central New Jersey and Brooklyn and Staten Island, New
York. At September 30, 2023, Kearny Financial Corp. had
approximately $8.0 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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