Kearny Sells Freddie Securities

Kearny Financial Corp., Fairfield, N.J., has sold a portfolio of government agency notes and Freddie Mac common stock in a rebalancing of the bank holding company's securities portfolio.Kearny said it sold 131,088 shares of Freddie Mac stock, resulting in a pretax gain of $8.8 million. The company had sold 120,000 Freddie Mac shares at a gain of $7.6 million in 2005 due to concern about the future of government-sponsored enterprises. Kearny, which has also sold all its U.S. government agency notes, has now sold all its Freddie Mac stock. Kearny said that shifting assets to cash will allow it to earn a higher return based on short-term rates while decisions are made about how to reinvest the funds.