Kearny Financial Corp (KRNY) reported Q4 2024 revenue of $88.796 million, up about 102.5% year over year, signaling a meaningful top-line rebound versus the prior year. However, the quarter delivered a net loss of $90.08 million, driven almost entirely by a large negative totalOtherIncomeExpensesNet of $90.996 million and elevated interest-related costs, which more than offset the $7.906 million of operating income (margin ~8.9% of revenue). The combination yielded an overall negative net income despite a solid operating performance, underscoring a material non-operating headwind masking underlying core profitability.
On the balance sheet, KRNY shows a liquidity-rich but leverage-leaning profile. Cash and cash equivalents plus short-term investments stood at approximately $1.137 billion at quarter-end, with total assets near $7.70 billion and total liabilities of about $6.95 billion. Equity totaled ~$0.754 billion, producing a tangible discount to book value (price-to-book ~0.50). The company maintains a modest operating cash flow (CFO) of roughly $7.26 million and free cash flow of about $6.23 million in the period, but financing activities were markedly negative (~$70.27 million), reflecting strategic capital management or balance-sheet actions during the quarter.
The earnings profile remains constrained by profitability headwinds rather than business model decay. Operating income contributed a positive result, while the bottom line was dragged down by sizable non-operating charges and a large impairment/reflection of investment-related items. The stock trades at a meaningful discount to book value, implying potential value if KRNY can stabilize earnings, shrink the non-operating drag, and sustain a healthier net interest and fee-based income mix going forward. Absent explicit management guidance in the data, investors should tether expectations to ongoing investment portfolio performance, credit quality in KRNY’s regional footprint, deposit mobilization, and efficiency improvements.