Kearny Financial Corp. reported unaudited earnings results for the first quarter ended September 30, 2009. The company reported net income for the quarter ended September 30, 2009 of $1,095,000, or $0.02 per diluted share. The results represent a decrease of $18,000 compared to net income of $1,113,000, or $0.02 per diluted share, for the quarter ended June 30, 2009 and a decrease of $641,000 compared to net income of $1,736,000, or $0.03 per diluted share, for the quarter ended September 30, 2008. The company attributed the decrease in net income between linked quarters to two primary factors including an increase in the provision for loan loss and, to a lesser extent, a decrease in net interest income. Partially offsetting these factors were a decrease in noninterest expense and an increase in noninterest income that resulted, in part, from a reduction in losses on investment securities. In total, these factors resulted in an overall decrease in pre-tax income and the provision for income taxes. The decrease in net income between the quarters ended September 30, 2009 and 2008 resulted primarily from increases in the provision for loan loss and noninterest expense which were partly offset by an increase in noninterest income and, to a lesser extent, an increase in net interest income. The net increase in noninterest income reflected a reduction in losses on investment securities partly offset by a reduction in other noninterest income. In total, these factors resulted in an overall decrease in pre-tax income and the provision for income taxes. Net interest income during the quarter ended September 30, 2009 was $13.25 million, a decrease of $67,000 compared to net interest income of $13.32 million during the quarter ended June 30, 2009 and an increase of $10,000 compared to net interest income of $13.24 million during the quarter ended September 30, 2008. The decline in net interest income and net interest margin between linked quarters resulted from a decrease in interest income that outpaced the concurrent decrease in interest expense. More specifically, interest income decreased $427,000 to $23.2 million during the quarter ended September 30, 2009 compared to $23.6 million during the quarter ended June 30, 2009 and decreased $2.0 million compared to $25.2 million during the quarter ended September 30, 2008. Income before taxes was $1.9 million against $2.9 million for the same period a year ago. Book value per share as on September 30, 2009 was $6.97 against $6.74 as on Sep. 30, 2008. Return on average assets was 0.20% against 0.34% for the same period a year ago. Return on average equity was 0.92% against 1.48% for the same period a year ago.

On October 22, 2009, Kearny Financial Corp. appointed Eric B. Heyer 1st Vice President and Chief Accounting Officer. Mr. Heyer served as Senior Vice President, Treasurer and Chief Financial Officer of American Bancorp of New Jersey, Inc. from 1997 until its acquisition by Investors Bancorp, Inc. in May 2009.

On October 1, 2009, Kearny Financial Corp. was notified that the auditors, Beard Miller Company LLP, had combined with Parente Randolph, LLC to form ParenteBeard, LLC, which succeeded to Beard Miller's audit practice, and Beard Miller resigned as the company's auditors. The audit committee of the board of directors has approved ParenteBeard, LLC to act as the company's auditors for the fiscal year ended June 30, 2010.