Kearny Financial Corp. Announces Authorization of New 10% Stock Repurchase Plan

Rhea-AI Summary

Kearny Financial Corp. (NASDAQ: KRNY) announced a new stock repurchase plan to buy back up to 7.6 million shares, about 10% of its outstanding common stock. Purchases will occur periodically in the open market or through negotiated transactions, depending on market conditions and the company's financial performance. This plan has no expiration date and can be modified or terminated based on various factors. As of June 30, 2021, Kearny Financial reported assets of approximately $7.3 billion.

Positive

• Authorization of a stock repurchase plan for up to 7.6 million shares, enhancing shareholder value.
• Repurchases at management's discretion may signal confidence in the company’s financial health.

Negative

• The repurchase program does not obligate the company to purchase a specific number of shares.
• Potential adverse impacts from the COVID-19 pandemic could affect business performance.

FAIRFIELD, N.J., Sept. 22, 2021 (GLOBE NEWSWIRE) -- Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company for Kearny Bank, announced today that the Board of Directors has authorized a new stock repurchase plan to acquire up to 7,602,021 shares, or approximately 10% of the Company’s outstanding common stock.

Repurchases will be made from time to time in the open market, through block trades, in privately negotiated stock purchases or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission. Such repurchases will be made at management’s discretion at prices management considers to be attractive and in the best interests of both the Company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance. Open market purchases will be conducted in accordance with the limitations set forth in Rule 10b-18 of the Securities and Exchange Commission and other applicable legal requirements.

The repurchase program has no expiration date and may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. The stock repurchase program does not obligate the Company to purchase any particular number of shares, and there is no guarantee as to the exact number of shares to be repurchased by the Company.

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 48 retail branch offices located throughout northern and central New Jersey and Brooklyn and Staten Island, New York. At June 30, 2021, Kearny Financial Corp. had approximately $7.3 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.

In addition, the COVID-19 pandemic has had, and may continue to have, an adverse impact on the Company, its clients and the communities it serves. Given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 pandemic on our business. The extent of such impact will depend on future developments, which are highly uncertain, including whether the coronavirus can continue to be controlled and abated and if the economy is able to remain open. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations: the demand for our products and services may decline, making it difficult to grow assets and income; if the economy is unable to substantially remain open, 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; as the result of the decline in the Federal Reserve Board’s target federal funds rate to near 0%, the yield on our assets may decline to a greater extent than the decline in our cost of interest-bearing liabilities, reducing our net interest margin and spread and reducing net income; due to a decline in our stock price or other factors, goodwill may become impaired and be required to be written down; and our cyber security risks are increased as the result of an increase in the number of employees working remotely.

For further information contact:
Craig L. Montanaro, President and Chief Executive Officer, or
Keith Suchodolski, Executive Vice President and Chief Financial Officer
Kearny Financial Corp.
(973) 244-4500

FAQ

What is the new stock buyback plan for Kearny Financial Corp. (KRNY)?

Kearny Financial Corp. has authorized a stock repurchase plan to buy back up to 7.6 million shares, about 10% of its outstanding stock.

When will Kearny Financial conduct share repurchases?

The share repurchases will occur at management's discretion, depending on market conditions and financial performance.

Is there an expiration date for the stock repurchase plan at KRNY?

No, the stock repurchase program does not have an expiration date and may be suspended or modified at any time.

How might the stock buyback impact KRNY's stock price?

The stock buyback could potentially increase shareholder value by reducing the number of shares outstanding, which may positively affect stock price.

What challenges could Kearny Financial face during the stock repurchase?

Challenges include market conditions and ongoing impacts from the COVID-19 pandemic, which may affect financial performance.