• Kearny Financial Corp. Announces Second Quarter Fiscal 2025 Results and Declaration of Cash Dividend

    المصدر: Nasdaq GlobeNewswire / 30 يناير 2025 08:30:01   America/New_York

    FAIRFIELD, N.J., Jan. 30, 2025 (GLOBE NEWSWIRE) -- Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), reported net income for the quarter ended December 31, 2024 of $6.6 million, compared to $6.1 million for the quarter ended September 30, 2024.

    Earnings per basic and diluted share were $0.11 and $0.10, respectively, for the quarter ended December 31, 2024. This compares to earnings per basic and diluted share of $0.10 for the quarter ended September 30, 2024.

    The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on February 26, 2025, to stockholders of record as of February 12, 2025.

    Craig L. Montanaro, President and Chief Executive Officer, commented, “As anticipated, this quarter reflected the early stages of growth in net interest income and expansion of net interest margin. We are pleased to report growth in deposits of 3.7% from September 30, 2024, reflecting robust performance from our branch network, digital channels and commercial lending relationships. This growth allowed us to shrink the balance of outstanding borrowings while reducing our cost of funds by nine basis points quarter-over-quarter.”

    Mr. Montanaro continued, “Although market expectations for fed funds rate cuts have moderated, the continuation of positive deposit trends coupled with the reinvestment of low-coupon cash flows from our loan and securities portfolio should serve as earnings tailwinds in the coming quarters.”

    Balance Sheet

    • Total assets were $7.73 billion at December 31, 2024, a decrease of $41.0 million, or 0.5%, from September 30, 2024.
    • Investment securities totaled $1.15 billion at December 31, 2024, a decrease of $57.5 million, or 4.8%, from September 30, 2024.
    • Loans receivable totaled $5.79 billion at December 31, 2024, an increase of $7.5 million, or 0.1%, from September 30, 2024.
    • Deposits were $5.67 billion at December 31, 2024, an increase of $200.5 million, or 3.7%, from September 30, 2024. This increase was primarily driven by increases in interest and non-interest bearing demand deposits of $142.1 million, and an increase of $60.6 million in consumer savings deposits.
    • Borrowings were $1.26 billion at December 31, 2024, a decrease of $220.9 million, or 14.9%, from September 30, 2024, reflecting reductions in Federal Home Loan Bank (“FHLB”) and other borrowings.
    • At December 31, 2024, the Company maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.32 billion, an increase of $256.0 million from September 30, 2024, representing 30.0% of total assets.

    Earnings

    Net Interest Income and Net Interest Margin

    • Net interest margin expanded two basis points from the quarter ended September 30, 2024 to 1.82% for the quarter ended December 31, 2024. The increase for the quarter was driven by the replacement of borrowings with relatively lower cost deposits and broad based decreases in deposit rates, partially offset by higher costs and average balances of brokered certificates of deposit (“CDs”), along with reduced average balances and yields on interest-earning assets.
    • For the quarter ended December 31, 2024, net interest income increased $166,000 to $32.6 million from $32.4 million for the quarter ended September 30, 2024. Included in net interest income for the quarters ended December 31, 2024 and September 30, 2024, respectively, was purchase accounting accretion of $685,000 and $649,000, and loan prepayment penalty income of $288,000 and $52,000.

    Non-Interest Income

    • Non-interest income increased $247,000 to $4.9 million for the quarter ended December 31, 2024, from $4.6 million for the quarter ended September 30, 2024. This increase was primarily driven by a $104,000 larger gain on the sale of loans held-for-sale compared to the prior comparative period and a $102,000 increase in electronic banking fees and charges.

    Non-Interest Expense

    • For the quarter ended December 31, 2024, non-interest expense decreased $225,000, or 0.8%, to $29.6 million from $29.8 million for the quarter ended September 30, 2024. This decrease was primarily driven by a decrease in other expense, partially offset by an increase in salary and benefits expense.
    • Salary and benefits expense increased $81,000 primarily driven by the absence of a non-recurring decrease in stock-based compensation recorded in the prior comparative period, partially offset by a decrease in payroll taxes.
    • Other expense decreased $280,000 primarily driven by a reversal of $116,000 for credit losses related to off balance sheet commitments compared to a provision for credit losses on off balance sheet commitments of $274,000 recorded in the prior comparative period. The remaining changes in the other components of non-interest expense between comparative periods generally reflected normal operating fluctuations within those line items.

    Income Taxes

    • Income tax expense totaled $1.3 million for the quarter ended December 31, 2024 compared to $1.1 million for the quarter ended September 30, 2024, resulting in an effective tax rate of 16.0% and 15.1%, respectively. The increase in income tax expense was primarily due to higher pre-tax income in the current quarter.

    Asset Quality

    • The balance of non-performing assets decreased $2.2 million to $37.7 million, or 0.49% of total assets, at December 31, 2024, from $39.9 million, or 0.51% of total assets, at September 30, 2024, respectively.
    • Net charge-offs totaled $573,000, or 0.04% of average loans, on an annualized basis, for the quarter ended December 31, 2024, compared to $124,000, or 0.01% of average loans, on an annualized basis, for the quarter ended September 30, 2024. The net charge-offs recorded for the quarter ended December 31, 2024 had previously been individually reserved for within the allowance for credit losses (“ACL”).
    • For the quarter ended December 31, 2024, the Company recorded a provision for credit losses of $107,000, compared to $108,000 for the quarter ended September 30, 2024. The provision for credit loss expense for the quarter ended December 31, 2024 was primarily driven by loan growth.
    • The ACL was $44.5 million, or 0.77% of total loans, at December 31, 2024, a decrease of $466,000 from $44.9 million, or 0.78% of total loans, at September 30, 2024. The decrease in the ACL from September 30, 2024 was largely attributable to a reduction in reserves for individually evaluated loans, resulting from the charge-offs noted above.

    Capital

    • For the quarter ended December 31, 2024, book value per share decreased $0.11, or 0.9%, to $11.53 while tangible book value per share decreased $0.10, or 1.0%, to $9.75. These decreases were driven by a $7.4 million larger accumulated other comprehensive loss due primarily to a decrease in the fair value of the Company’s available for sale securities, partially offset by an increase in the fair value of the Company’s derivatives portfolio.
    • At December 31, 2024, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $89.8 million, partially offset by after-tax unrealized gains on derivatives of $17.4 million. After-tax net unrecognized losses on securities held to maturity of $11.3 million were not reflected in total stockholders’ equity.
    • At December 31, 2024, the Company’s tangible equity to tangible assets ratio equaled 8.27% and the regulatory capital ratios of both the Company and the Bank were in excess of the levels required by federal banking regulators to be classified as “well-capitalized” under regulatory guidelines.

    This earnings release should be read in conjunction with Kearny Financial Corp.’s Q2 2025 Investor Presentation, a copy of which is available through the Investor Relations link located at the bottom of the page of our website at www.kearnybank.com and via a Current Report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov.

    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.

    Category: Earnings

    For further information contact:
    Keith Suchodolski, Senior Executive Vice President and Chief Operating Officer, or
    Sean Byrnes, Executive Vice President and Chief Financial Officer
    Kearny Financial Corp.
    (973) 244-4500


    Linked-Quarter Comparative Financial Analysis


         
    Kearny Financial Corp.
    Consolidated Balance Sheets
    (Unaudited)
         
    (Dollars and Shares in Thousands,
    Except Per Share Data)    		December 31,
    2024    		September 30,
    2024    		Variance
    or Change    		Variance
    or Change Pct.
    Assets    
    Cash and cash equivalents$141,554 $155,574 $(14,020)-9.0%
    Securities available for sale 1,018,279  1,070,811  (52,532)-4.9%
    Securities held to maturity 127,266  132,256  (4,990)-3.8%
    Loans held-for-sale 5,695  8,866  (3,171)-35.8%
    Loans receivable 5,791,758  5,784,246  7,512 0.1%
    Less: allowance for credit losses on loans (44,457) (44,923) (466)-1.0%
    Net loans receivable 5,747,301  5,739,323  7,978 0.1%
    Premises and equipment 45,127  45,189  (62)-0.1%
    Federal Home Loan Bank stock 64,443  57,706  6,737 11.7%
    Accrued interest receivable 27,772  29,467  (1,695)-5.8%
    Goodwill 113,525  113,525  — —%
    Core deposit intangible 1,679  1,805  (126)-7.0%
    Bank owned life insurance 301,339  300,186  1,153 0.4%
    Deferred income taxes, net 53,325  50,131  3,194 6.4%
    Other assets 84,080  67,540  16,540 24.5%
    Total assets$7,731,385 $7,772,379 $(40,994)-0.5%
         
    Liabilities    
    Deposits:    
    Non-interest-bearing$601,510 $592,099 $9,411 1.6%
    Interest-bearing 5,069,550  4,878,413  191,137 3.9%
    Total deposits 5,671,060  5,470,512  200,548 3.7%
    Borrowings 1,258,949  1,479,888  (220,939)-14.9%
    Advance payments by borrowers for taxes 17,986  17,824  162 0.9%
    Other liabilities 38,537  52,618  (14,081)-26.8%
    Total liabilities 6,986,532  7,020,842  (34,310)-0.5%
         
    Stockholders' Equity    
    Common stock 646  646  — —%
    Paid-in capital 494,092  493,523  569 0.1%
    Retained earnings 342,155  342,522  (367)-0.1%
    Unearned ESOP shares (19,943) (20,430) 487 2.4%
    Accumulated other comprehensive loss (72,097) (64,724) (7,373)-11.4%
    Total stockholders' equity 744,853  751,537  (6,684)-0.9%
    Total liabilities and stockholders' equity$7,731,385 $7,772,379 $(40,994)-0.5%
         
    Consolidated capital ratios    
    Equity to assets 9.63% 9.67% -0.04% 
    Tangible equity to tangible assets (1) 8.27% 8.31% -0.04% 
         
    Share data    
    Outstanding shares 64,580  64,580  — —%
    Book value per share$11.53 $11.64 $(0.11)-0.9%
    Tangible book value per share (2)$9.75 $9.85 $(0.10)-1.0%

    _________________________

    (1)   Tangible equity equals total stockholders' equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.
    (2)   Tangible book value equals total stockholders' equity reduced by goodwill and core deposit intangible assets.

        
    Kearny Financial Corp.
    Consolidated Statements of Income
    (Unaudited)
        
    (Dollars and Shares in Thousands,
    Except Per Share Data)
    		Three Months EndedVariance
    or Change
    		Variance
    or Change Pct.
    December 31,
    2024    		September 30,
    2024
    Interest income    
    Loans$65,408 $66,331 $(923)-1.4%
    Taxable investment securities 13,803  14,384  (581)-4.0%
    Tax-exempt investment securities 59  71  (12)-16.9%
    Other interest-earning assets 2,215  2,466  (251)-10.2%
    Total interest income 81,485  83,252  (1,767)-2.1%
         
    Interest expense    
    Deposits 36,721  35,018  1,703 4.9%
    Borrowings 12,152  15,788  (3,636)-23.0%
    Total interest expense 48,873  50,806  (1,933)-3.8%
    Net interest income 32,612  32,446  166 0.5%
    Provision for credit losses 107  108  (1)-0.9%
    Net interest income after provision for credit losses 32,505  32,338  167 0.5%
         
    Non-interest income    
    Fees and service charges 627  635  (8)-1.3%
    Gain on sale of loans 304  200  104 52.0%
    Income from bank owned life insurance 2,619  2,567  52 2.0%
    Electronic banking fees and charges 493  391  102 26.1%
    Other income 830  833  (3)-0.4%
    Total non-interest income 4,873  4,626  247 5.3%
         
    Non-interest expense    
    Salaries and employee benefits 17,579  17,498  81 0.5%
    Net occupancy expense of premises 2,831  2,798  33 1.2%
    Equipment and systems 3,892  3,860  32 0.8%
    Advertising and marketing 311  342  (31)-9.1%
    Federal deposit insurance premium 1,503  1,563  (60)-3.8%
    Directors' compensation 361  361  — —%
    Other expense 3,084  3,364  (280)-8.3%
    Total non-interest expense 29,561  29,786  (225)-0.8%
    Income before income taxes 7,817  7,178  639 8.9%
    Income taxes 1,251  1,086  165 15.2%
    Net income$6,566 $6,092 $474 7.8%
         
    Net income per common share (EPS)    
    Basic$0.11 $0.10 $0.01  
    Diluted$0.10 $0.10 $—  
         
    Dividends declared    
    Cash dividends declared per common share$0.11 $0.11 $—  
    Cash dividends declared$6,933 $6,896 $37  
    Dividend payout ratio 105.6% 113.2% -7.6% 
         
    Weighted average number of common shares outstanding    
    Basic 62,443  62,389  54  
    Diluted 62,576  62,420  156  
               


        
    Kearny Financial Corp.
    Average Balance Sheet Data
    (Unaudited)
        
    (Dollars in Thousands)
    		Three Months EndedVariance
    or Change
    		Variance
    or Change Pct.
    December 31,
    2024    		September 30,
    2024
    Assets    
    Interest-earning assets:    
    Loans receivable, including loans held for sale$5,762,053 $5,761,593 $460 —%
    Taxable investment securities 1,285,800  1,314,945  (29,145)-2.2%
    Tax-exempt investment securities 9,711  12,244  (2,533)-20.7%
    Other interest-earning assets 116,354  131,981  (15,627)-11.8%
    Total interest-earning assets 7,173,918  7,220,763  (46,845)-0.6%
    Non-interest-earning assets 459,982  467,670  (7,688)-1.6%
    Total assets$7,633,900 $7,688,433 $(54,533)-0.7%
         
    Liabilities and Stockholders' Equity    
    Interest-bearing liabilities:    
    Deposits:    
    Interest-bearing demand$2,314,378 $2,282,608 $31,770 1.4%
    Savings 711,801  668,240  43,561 6.5%
    Certificates of deposit (retail) 1,211,985  1,203,770  8,215 0.7%
    Certificates of deposit (brokered and listing service) 735,736  551,819  183,917 33.3%
    Total interest-bearing deposits 4,973,900  4,706,437  267,463 5.7%
    Borrowings:    
    Federal Home Loan Bank advances 1,085,455  1,325,583  (240,128)-18.1%
    Other borrowings 156,522  237,011  (80,489)-34.0%
    Total borrowings 1,241,977  1,562,594  (320,617)-20.5%
    Total interest-bearing liabilities 6,215,877  6,269,031  (53,154)-0.8%
    Non-interest-bearing liabilities:    
    Non-interest-bearing deposits 604,915  599,095  5,820 1.0%
    Other non-interest-bearing liabilities 65,258  69,629  (4,371)-6.3%
    Total non-interest-bearing liabilities 670,173  668,724  1,449 0.2%
    Total liabilities 6,886,050  6,937,755  (51,705)-0.7%
    Stockholders' equity 747,850  750,678  (2,828)-0.4%
    Total liabilities and stockholders' equity$7,633,900 $7,688,433 $(54,533)-0.7%
         
    Average interest-earning assets to average interest-bearing liabilities 115.41% 115.18% 0.23%0.2%
                


       
    Kearny Financial Corp.
    Performance Ratio Highlights
    (Unaudited)
       
     Three Months EndedVariance
    or Change
     December 31,
    2024    		September 30,
    2024
    Average yield on interest-earning assets:   
    Loans receivable, including loans held for sale4.54%4.61%-0.07%
    Taxable investment securities4.29%4.38%-0.09%
    Tax-exempt investment securities (1)2.42%2.32%0.10%
    Other interest-earning assets7.62%7.47%0.15%
    Total interest-earning assets4.54%4.61%-0.07%
        
    Average cost of interest-bearing liabilities:   
    Deposits:   
    Interest-bearing demand2.96%3.13%-0.17%
    Savings1.29%1.05%0.24%
    Certificates of deposit (retail)4.06%4.12%-0.06%
    Certificates of deposit (brokered and listing service)2.71%2.18%0.53%
    Total interest-bearing deposits2.95%2.98%-0.03%
    Borrowings:   
    Federal Home Loan Bank advances3.78%3.82%-0.04%
    Other borrowings4.88%5.28%-0.40%
    Total borrowings3.91%4.04%-0.13%
    Total interest-bearing liabilities3.15%3.24%-0.09%
        
    Interest rate spread (2)1.39%1.37%0.02%
    Net interest margin (3)1.82%1.80%0.02%
        
    Non-interest income to average assets (annualized)0.26%0.24%0.02%
    Non-interest expense to average assets (annualized)1.55%1.55%—%
        
    Efficiency ratio (4)78.86%80.35%-1.49%
        
    Return on average assets (annualized)0.34%0.32%0.02%
    Return on average equity (annualized)3.51%3.25%0.26%
    Return on average tangible equity (annualized) (5)4.21%3.89%0.32%

    _________________________

    (1)   The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.
    (2)   Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.
    (3)   Net interest income divided by average interest-earning assets.
    (4)   Non-interest expense divided by the sum of net interest income and non-interest income.
    (5)   Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets.

    Five-Quarter Financial Trend Analysis


          
    Kearny Financial Corp.
    Consolidated Balance Sheets
          
    (Dollars and Shares in Thousands,
    Except Per Share Data)    		December 31,
    2024    		September 30,
    2024    		June 30,
    2024    		March 31,
    2024    		December 31,
    2023
     (Unaudited)(Unaudited) (Unaudited)(Unaudited)
    Assets     
    Cash and cash equivalents$141,554 $155,574 $63,864 $71,027 $73,860 
    Securities available for sale 1,018,279  1,070,811  1,072,833  1,098,655  1,144,175 
    Securities held to maturity 127,266  132,256  135,742  139,643  141,959 
    Loans held-for-sale 5,695  8,866  6,036  4,117  14,030 
    Loans receivable 5,791,758  5,784,246  5,732,787  5,758,336  5,745,629 
    Less: allowance for credit losses on loans (44,457) (44,923) (44,939) (44,930) (44,867)
    Net loans receivable 5,747,301  5,739,323  5,687,848  5,713,406  5,700,762 
    Premises and equipment 45,127  45,189  44,940  45,053  45,928 
    Federal Home Loan Bank stock 64,443  57,706  80,300  81,347  83,372 
    Accrued interest receivable 27,772  29,467  29,521  31,065  30,258 
    Goodwill 113,525  113,525  113,525  210,895  210,895 
    Core deposit intangible 1,679  1,805  1,931  2,057  2,189 
    Bank owned life insurance 301,339  300,186  297,874  296,493  256,064 
    Deferred income taxes, net 53,325  50,131  50,339  47,225  46,116 
    Other real estate owned —  —  —  —  11,982 
    Other assets 84,080  67,540  98,708  100,989  136,242 
    Total assets$7,731,385 $7,772,379 $7,683,461 $7,841,972 $7,897,832 
          
    Liabilities     
    Deposits:     
    Non-interest-bearing$601,510 $592,099 $598,366 $586,089 $584,130 
    Interest-bearing 5,069,550  4,878,413  4,559,757  4,622,961  4,735,500 
    Total deposits 5,671,060  5,470,512  5,158,123  5,209,050  5,319,630 
    Borrowings 1,258,949  1,479,888  1,709,789  1,722,178  1,667,055 
    Advance payments by borrowers for taxes 17,986  17,824  17,409  17,387  16,742 
    Other liabilities 38,537  52,618  44,569  44,279  46,427 
    Total liabilities 6,986,532  7,020,842  6,929,890  6,992,894  7,049,854 
          
    Stockholders' Equity     
    Common stock 646  646  644  644  645 
    Paid-in capital 494,092  493,523  493,680  493,187  493,297 
    Retained earnings 342,155  342,522  343,326  440,308  439,755 
    Unearned ESOP shares (19,943) (20,430) (20,916) (21,402) (21,889)
    Accumulated other comprehensive loss (72,097) (64,724) (63,163) (63,659) (63,830)
    Total stockholders' equity 744,853  751,537  753,571  849,078  847,978 
    Total liabilities and stockholders' equity$7,731,385 $7,772,379 $7,683,461 $7,841,972 $7,897,832 
          
    Consolidated capital ratios     
    Equity to assets 9.63% 9.67% 9.81% 10.83% 10.74%
    Tangible equity to tangible assets (1) 8.27% 8.31% 8.43% 8.34% 8.26%
          
    Share data     
    Outstanding shares 64,580  64,580  64,434  64,437  64,445 
    Book value per share$11.53 $11.64 $11.70 $13.18 $13.16 
    Tangible book value per share (2)$9.75 $9.85 $9.90 $9.87 $9.85 

    _________________________

    (1)   Tangible equity equals total stockholders' equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.
    (2)   Tangible book value equals total stockholders' equity reduced by goodwill and core deposit intangible assets.

          
    Kearny Financial Corp.
    Supplemental Balance Sheet Highlights
    (Unaudited)
          
    (Dollars in Thousands)December 31,
    2024    		September 30,
    2024    		June 30,
    2024    		March 31,
    2024    		December 31,
    2023
    Loan portfolio composition:     
    Commercial loans:     
    Multi-family mortgage$2,722,623 $2,646,187 $2,645,851 $2,645,195 $2,651,274 
    Nonresidential mortgage 950,194  950,771  948,075  965,539  947,287 
    Commercial business 135,740  145,984  142,747  147,326  144,134 
    Construction 176,704  227,327  209,237  229,457  221,933 
    Total commercial loans 3,985,261  3,970,269  3,945,910  3,987,517  3,964,628 
    One- to four-family residential mortgage 1,765,160  1,768,230  1,756,051  1,741,644  1,746,065 
    Consumer loans:     
    Home equity loans 47,101  44,741  44,104  42,731  43,517 
    Other consumer 2,778  2,965  2,685  3,198  2,728 
    Total consumer loans 49,879  47,706  46,789  45,929  46,245 
    Total loans, excluding yield adjustments 5,800,300  5,786,205  5,748,750  5,775,090  5,756,938 
    Unaccreted yield adjustments (8,542) (1,959) (15,963) (16,754) (11,309)
    Loans receivable, net of yield adjustments 5,791,758  5,784,246  5,732,787  5,758,336  5,745,629 
    Less: allowance for credit losses on loans (44,457) (44,923) (44,939) (44,930) (44,867)
    Net loans receivable$5,747,301 $5,739,323 $5,687,848 $5,713,406 $5,700,762 
          
    Asset quality:     
    Nonperforming assets:     
    Accruing loans - 90 days and over past due$— $— $— $— $— 
    Nonaccrual loans 37,697  39,854  39,882  39,546  28,089 
    Total nonperforming loans 37,697  39,854  39,882  39,546  28,089 
    Nonaccrual loans held-for-sale —  —  —  —  9,700 
    Other real estate owned —  —  —  —  11,982 
    Total nonperforming assets$37,697 $39,854 $39,882 $39,546 $49,771 
          
    Nonperforming loans (% total loans) 0.65% 0.69% 0.70% 0.69% 0.49%
    Nonperforming assets (% total assets) 0.49% 0.51% 0.52% 0.50% 0.63%
          
    Classified loans$132,216 $119,534 $118,700 $115,772 $94,676 
          
    Allowance for credit losses on loans (ACL):     
    ACL to total loans 0.77% 0.78% 0.78% 0.78% 0.78%
    ACL to nonperforming loans 117.93% 112.72% 112.68% 113.61% 159.73%
    Net charge-offs$573 $124 $3,518 $286 $4,110 
    Average net charge-off rate (annualized) 0.04% 0.01% 0.25% 0.02% 0.29%
                    


          
    Kearny Financial Corp.
    Supplemental Balance Sheet Highlights
    (Unaudited)
          
    (Dollars in Thousands)December 31,
    2024    		September 30,
    2024    		June 30,
    2024    		March 31,
    2024    		December 31,
    2023
    Funding composition:     
    Deposits:     
    Non-interest-bearing deposits$601,510 $592,099 $598,367 $586,089 $584,130 
    Interest-bearing demand 2,380,408  2,247,685  2,308,915  2,349,032  2,347,262 
    Savings 742,266  681,709  643,481  630,456  646,182 
    Certificates of deposit (retail) 1,194,865  1,215,746  1,199,127  1,235,261  1,283,676 
    Certificates of deposit (brokered and listing service) 752,011  733,273  408,234  408,212  458,380 
    Interest-bearing deposits 5,069,550  4,878,413  4,559,757  4,622,961  4,735,500 
    Total deposits 5,671,060  5,470,512  5,158,124  5,209,050  5,319,630 
          
    Borrowings:     
    Federal Home Loan Bank advances 1,028,949  1,209,888  1,534,789  1,457,178  1,432,055 
    Overnight borrowings 230,000  270,000  175,000  265,000  235,000 
    Total borrowings 1,258,949  1,479,888  1,709,789  1,722,178  1,667,055 
          
      Total funding$6,930,009 $6,950,400 $6,867,913 $6,931,228 $6,986,685 
          
    Loans as a % of deposits 101.4% 105.1% 110.4% 109.8% 107.4%
    Deposits as a % of total funding 81.8% 78.7% 75.1% 75.2% 76.1%
    Borrowings as a % of total funding 18.2% 21.3% 24.9% 24.8% 23.9%
          
    Uninsured deposits:     
    Uninsured deposits (reported) (1)$1,935,607 $1,799,726 $1,772,623 $1,760,740 $1,813,122 
    Uninsured deposits (adjusted) (2)$797,721 $773,375 $764,447 $718,026 $694,510 

    _________________________

    (1)   Uninsured deposits of Kearny Bank.
    (2)   Uninsured deposits of Kearny Bank adjusted to exclude deposits of its wholly-owned subsidiary and holding company and collateralized deposits of state and local governments.

      
    Kearny Financial Corp.
    Consolidated Statements of Income (Loss)
    (Unaudited)
      
     Three Months Ended
    (Dollars and Shares in Thousands,
    Except Per Share Data)    		December 31,
    2024    		September 30,
    2024    		June 30,
    2024    		March 31,
    2024    		December 31,
    2023
    Interest income     
    Loans$65,408 $66,331 $65,819 $64,035 $63,384 
    Taxable investment securities 13,803  14,384  14,802  15,490  16,756 
    Tax-exempt investment securities 59  71  80  85  84 
    Other interest-earning assets 2,215  2,466  2,289  2,475  2,401 
    Total interest income 81,485  83,252  82,990  82,085  82,625 
          
    Interest expense     
    Deposits 36,721  35,018  32,187  32,320  30,340 
    Borrowings 12,152  15,788  17,527  15,446  16,446 
    Total interest expense 48,873  50,806  49,714  47,766  46,786 
    Net interest income 32,612  32,446  33,276  34,319  35,839 
    Provision for credit losses 107  108  3,527  349  2,105 
    Net interest income after provision for credit losses 32,505  32,338  29,749  33,970  33,734 
          
    Non-interest income     
    Fees and service charges 627  635  580  657  624 
    Loss on sale and call of securities —  —  —  —  (18,135)
    Gain (loss) on sale of loans 304  200  111  (712) 104 
    Loss on sale of other real estate owned —  —  —  —  (974)
    Income from bank owned life insurance 2,619  2,567  3,209  3,039  1,162 
    Electronic banking fees and charges 493  391  1,130  464  396 
    Other income 830  833  776  755  811 
    Total non-interest income 4,873  4,626  5,806  4,203  (16,012)
          
    Non-interest expense     
    Salaries and employee benefits 17,579  17,498  17,266  16,911  17,282 
    Net occupancy expense of premises 2,831  2,798  2,738  2,863  2,674 
    Equipment and systems 3,892  3,860  3,785  3,823  3,814 
    Advertising and marketing 311  342  480  387  301 
    Federal deposit insurance premium 1,503  1,563  1,532  1,429  1,495 
    Directors' compensation 361  361  360  360  393 
    Goodwill impairment —  —  97,370  —  — 
    Other expense 3,084  3,364  3,020  3,286  3,808 
    Total non-interest expense 29,561  29,786  126,551  29,059  29,767 
    Income (loss) before income taxes 7,817  7,178  (90,996) 9,114  (12,045)
    Income taxes 1,251  1,086  (917) 1,717  1,782 
    Net income (loss)$6,566 $6,092 $(90,079)$7,397 $(13,827)
          
    Net income (loss) per common share (EPS)     
    Basic$0.11 $0.10 $(1.45)$0.12 $(0.22)
    Diluted$0.10 $0.10 $(1.45)$0.12 $(0.22)
          
    Dividends declared     
    Cash dividends declared per common share$0.11 $0.11 $0.11 $0.11 $0.11 
    Cash dividends declared$6,933 $6,896 $6,903 $6,844 $6,882 
    Dividend payout ratio 105.6% 113.2% -7.7% 92.5% -49.8%
          
    Weighted average number of common shares outstanding     
    Basic 62,443  62,389  62,254  62,205  62,299 
    Diluted 62,576  62,420  62,254  62,211  62,299 
                    


      
    Kearny Financial Corp.
    Average Balance Sheet Data
    (Unaudited)
      
     Three Months Ended
    (Dollars in Thousands)December 31,
    2024    		September 30,
    2024    		June 30,
    2024    		March 31,
    2024    		December 31,
    2023
    Assets     
    Interest-earning assets:     
    Loans receivable, including loans held-for-sale$5,762,053 $5,761,593 $5,743,008 $5,752,477 $5,726,321 
    Taxable investment securities 1,285,800  1,314,945  1,343,541  1,382,064  1,509,165 
    Tax-exempt investment securities 9,711  12,244  13,737  14,614  15,025 
    Other interest-earning assets 116,354  131,981  128,257  125,155  139,740 
    Total interest-earning assets 7,173,918  7,220,763  7,228,543  7,274,310  7,390,251 
    Non-interest-earning assets 459,982  467,670  466,537  577,411  554,335 
    Total assets$7,633,900 $7,688,433 $7,695,080 $7,851,721 $7,944,586 
          
    Liabilities and Stockholders' Equity     
    Interest-bearing liabilities:     
    Deposits:     
    Interest-bearing demand$2,314,378 $2,282,608 $2,310,521 $2,378,831 $2,301,169 
    Savings 711,801  668,240  631,622  635,226  664,926 
    Certificates of deposit (retail) 1,211,985  1,203,770  1,208,101  1,257,362  1,292,837 
    Certificates of deposit (brokered and listing service) 735,736  551,819  405,697  448,151  531,479 
    Total interest-bearing deposits 4,973,900  4,706,437  4,555,941  4,719,570  4,790,411 
    Borrowings:     
    Federal Home Loan Bank advances 1,085,455  1,325,583  1,507,192  1,428,801  1,513,497 
    Other borrowings 156,522  237,011  228,461  210,989  142,283 
    Total borrowings 1,241,977  1,562,594  1,735,653  1,639,790  1,655,780 
    Total interest-bearing liabilities 6,215,877  6,269,031  6,291,594  6,359,360  6,446,191 
    Non-interest-bearing liabilities:     
    Non-interest-bearing deposits 604,915  599,095  589,438  581,870  597,294 
    Other non-interest-bearing liabilities 65,258  69,629  62,978  65,709  62,387 
    Total non-interest-bearing liabilities 670,173  668,724  652,416  647,579  659,681 
    Total liabilities 6,886,050  6,937,755  6,944,010  7,006,939  7,105,872 
    Stockholders' equity 747,850  750,678  751,070  844,782  838,714 
    Total liabilities and stockholders' equity$7,633,900 $7,688,433 $7,695,080 $7,851,721 $7,944,586 
          
    Average interest-earning assets to average interest-bearing liabilities 115.41% 115.18% 114.89% 114.39% 114.65%
                    


      
    Kearny Financial Corp.
    Performance Ratio Highlights
      
     Three Months Ended
     December 31,
    2024    		September 30,
    2024    		June 30,
    2024    		March 31,
    2024    		December 31,
    2023
    Average yield on interest-earning assets:     
    Loans receivable, including loans held-for-sale4.54%4.61%4.58%4.45%4.43%
    Taxable investment securities4.29%4.38%4.41%4.48%4.44%
    Tax-exempt investment securities (1)2.42%2.32%2.32%2.32%2.25%
    Other interest-earning assets7.62%7.47%7.14%7.91%6.87%
    Total interest-earning assets4.54%4.61%4.59%4.51%4.47%
          
    Average cost of interest-bearing liabilities:     
    Deposits:     
    Interest-bearing demand2.96%3.13%3.06%3.08%2.91%
    Savings1.29%1.05%0.63%0.46%0.44%
    Certificates of deposit (retail)4.06%4.12%3.95%3.52%3.06%
    Certificates of deposit (brokered and listing service)2.71%2.18%1.59%1.97%2.24%
    Total interest-bearing deposits2.95%2.98%2.83%2.74%2.53%
    Borrowings:     
    Federal Home Loan Bank advances3.78%3.82%3.86%3.55%3.82%
    Other borrowings4.88%5.28%5.24%5.22%5.65%
    Total borrowings3.91%4.04%4.04%3.77%3.97%
    Total interest-bearing liabilities3.15%3.24%3.16%3.00%2.90%
          
    Interest rate spread (2)1.39%1.37%1.43%1.51%1.57%
    Net interest margin (3)1.82%1.80%1.84%1.89%1.94%
          
    Non-interest income to average assets (annualized)0.26%0.24%0.30%0.21%-0.81%
    Non-interest expense to average assets (annualized)1.55%1.55%6.58%1.48%1.50%
          
    Efficiency ratio (4)78.86%80.35%323.81%75.43%150.13%
          
    Return on average assets (annualized)0.34%0.32%-4.68%0.38%-0.70%
    Return on average equity (annualized)3.51%3.25%-47.97%3.50%-6.59%
    Return on average tangible equity (annualized) (5)4.21%3.89%3.33%4.68%-8.84%

    _________________________

    (1)   The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.
    (2)   Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.
    (3)   Net interest income divided by average interest-earning assets.
    (4)   Non-interest expense divided by the sum of net interest income and non-interest income.
    (5)   Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets.

    The following tables provide a reconciliation of certain financial measures calculated in accordance with Generally Accepted Accounting Principles (“GAAP”) (as reported) and non-GAAP measures. These non-GAAP measures provide additional information which allow readers to evaluate the ongoing performance of the Company. They are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. In all cases, it should be understood that non-GAAP per share measures do not depict amounts that accrue directly to the benefit of shareholders.

      
    Kearny Financial Corp.
    Reconciliation of GAAP to Non-GAAP
    (Unaudited)
      
     Three Months Ended
    (Dollars and Shares in Thousands,
    Except Per Share Data)    		December 31,
    2024    		September 30,
    2024    		June 30,
    2024    		March 31,
    2024    		December 31,
    2023
    Adjusted net income:     
    Net income (loss) (GAAP)$6,566 $6,092 $(90,079)$7,397 $(13,827)
    Non-recurring transactions - net of tax:     
    Net effect of sale and call of securities —  —  —  —  12,876 
    Net effect of bank-owned life insurance restructure —  —  392  —  6,286 
    Goodwill impairment —  —  95,283  —  — 
    Adjusted net income$6,566 $6,092 $5,596 $7,397 $5,335 
          
    Calculation of pre-tax, pre-provision net revenue:     
    Net income (loss) (GAAP)$6,566 $6,092 $(90,079)$7,397 $(13,827)
    Adjustments to net income (GAAP):     
    Provision for income taxes 1,251  1,086  (917) 1,717  1,782 
    Provision for credit losses 107  108  3,527  349  2,105 
    Pre-tax, pre-provision net revenue (non-GAAP)$7,924 $7,286 $(87,469)$9,463 $(9,940)
          
    Adjusted earnings per share:     
    Weighted average common shares - basic 62,443  62,389  62,254  62,205  62,299 
    Weighted average common shares - diluted 62,576  62,420  62,330  62,211  62,367 
          
    Earnings per share - basic (GAAP)$0.11 $0.10 $(1.45)$0.12 $(0.22)
    Earnings per share - diluted (GAAP)$0.10 $0.10 $(1.45)$0.12 $(0.22)
          
    Adjusted earnings per share - basic (non-GAAP)$0.11 $0.10 $0.09 $0.12 $0.09 
    Adjusted earnings per share - diluted (non-GAAP)$0.10 $0.10 $0.09 $0.12 $0.09 
          
    Pre-tax, pre-provision net revenue per share:     
    Pre-tax, pre-provision net revenue per share - basic (non-GAAP)$0.13 $0.12 $(1.41)$0.15 $(0.16)
    Pre-tax, pre-provision net revenue per share - diluted (non-GAAP)$0.13 $0.12 $(1.41)$0.15 $(0.16)
          
    Adjusted return on average assets:     
    Total average assets$7,633,900 $7,688,433 $7,695,080 $7,851,721 $7,944,586 
          
    Return on average assets (GAAP) 0.34% 0.32% -4.68% 0.38% -0.70%
    Adjusted return on average assets (non-GAAP) 0.34% 0.32% 0.29% 0.38% 0.27%
          
    Adjusted return on average equity:     
    Total average equity$747,850 $750,678 $751,070 $844,782 $838,714 
          
    Return on average equity (GAAP) 3.51% 3.25% -47.97% 3.50% -6.59%
    Adjusted return on average equity (non-GAAP) 3.51% 3.25% 2.98% 3.50% 2.54%
                    


      
    Kearny Financial Corp.
    Reconciliation of GAAP to Non-GAAP
    (Unaudited)
      
     Three Months Ended
    (Dollars and Shares in Thousands,
    Except Per Share Data)    		December 31,
    2024    		September 30,
    2024    		June 30,
    2024    		March 31,
    2024    		December 31,
    2023
    Adjusted return on average tangible equity:     
    Total average equity$747,850 $750,678 $751,070 $844,782 $838,714 
    Less: average goodwill (113,525) (113,525) (113,525) (210,895) (210,895)
    Less: average other intangible assets (1,761) (1,886) (2,006) (2,138) (2,277)
    Total average tangible equity$632,564 $635,267 $635,539 $631,749 $625,542 
          
    Return on average tangible equity (non-GAAP) 4.21% 3.89% 3.33% 4.68% -8.84%
    Adjusted return on average tangible equity (non-GAAP) 4.21% 3.89% 3.58% 4.68% 3.41%
          
    Adjusted non-interest expense ratio:     
    Non-interest expense (GAAP)$29,561 $29,786 $126,551 $29,059 $29,767 
    Non-recurring transactions:     
    Goodwill impairment —  —  (97,370) —  — 
    Non-interest expense (non-GAAP)$29,561 $29,786 $29,181 $29,059 $29,767 
          
    Non-interest expense ratio (GAAP) 1.55% 1.55% 6.58% 1.48% 1.50%
    Adjusted non-interest expense ratio (non-GAAP) 1.55% 1.55% 1.52% 1.48% 1.50%
          
    Adjusted efficiency ratio:     
    Non-interest expense (non-GAAP)$29,561 $29,786 $29,181 $29,059 $29,767 
          
    Net interest income (GAAP)$32,612 $32,446 $33,276 $34,319 $35,839 
    Total non-interest income (GAAP) 4,873  4,626  5,806  4,203  (16,012)
    Non-recurring transactions:     
    Net effect of sale and call of securities —  —  —  —  18,135 
    Net effect of bank-owned life insurance restructure —  —  392  —  573 
    Total revenue (non-GAAP)$37,485 $37,072 $39,474 $38,522 $38,535 
          
    Efficiency ratio (GAAP) 78.86% 80.35% 323.81% 75.43% 150.13%
    Adjusted efficiency ratio (non-GAAP) 78.86% 80.35% 73.92% 75.43% 77.25%
                    

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