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Goodwill impairment leads to big 2Q loss at Kearny in N.J.

Kearny Financial in Fairfield, N.J., reported a quarterly loss after recording a $95.3 million goodwill impairment charge.

The $7.7 billion-asset company said in a press release that it lost $90.1 million in the second quarter. Kearny said the impairment reflects the impact of the current interest rate environment on bank stock prices.

“Goodwill impairment in no way affects our ongoing strategy or our ability to serve the banking needs of our clients,” Craig Montanaro, Kearny’s president and CEO, said in the release. “It also has no impact on our financial condition, robust liquidity position, or peer-leading regulatory capital ratios.”

Kearny also disclosed that it charged off a $3.3 million nonperforming commercial-and-industrial lending relationship.

“We do not view this charge-off as a reflection of any broader weakness in our loan portfolio, but rather a borrower-specific event,” Montanaro said.

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