(By Balaseshan) Kearny Financial Corp. (NASDAQ: KRNY) reported a 150.4% jump in quarterly earnings on higher non-interest income due to sale of mortgage-backed securities. However, net interest income fell 8.2% due to lower interest income.
Earnings for the second quarter were $1.18 million or $0.02 per share, up from $470,000 or $0.01 per share in the same period last year.
Net interest income declined 8.2% to $15.99 million, due to lower interest-earning assets.
Total non-interest income was $2.29 million, compared to a loss of $761,000 last year. The latest quarter results reflected net gains on sale of securities totaling $1.1 million attributable to the sale of mortgage-backed securities totaling about $70.8 million during the quarter.
Provision for loan losses for the second quarter rose to $1.39 million from $1.32 million.
Cash and cash equivalents, which consist primarily of interest-earning and non-interest-earning deposits in other banks, decreased to $187.0 million at December 31, 2012 from $188.1 million at September 30, 2012.
The outstanding balance of loans receivable, excluding deferred fees and costs and the allowance for loan losses, increased to $1.30 billion at December 31, 2012 from $1.29 billion for the quarter ended September 30, 2012.
The balance of total deposits decreased to $2.14 billion at December 31, 2012 from $2.15 billion at September 30, 2012, primarily reflected a decline in the balance of interest-bearing deposits of $6.6 million. The company reported a net decrease in borrowings of $8.1 million to $242.1 million at December 31, 2012.
KRNY is trading down 0.79% at $10.09 on Thursday. The stock has been trading between $8.66 and $10.22 for the past 52 weeks.