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

    Source: Nasdaq GlobeNewswire / 24 Apr 2025 07:30:01   America/Chicago

    FAIRFIELD, N.J., April 24, 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 March 31, 2025 of $6.6 million, or $0.11 per diluted share, compared to $6.6 million, or $0.10 per diluted share, for the quarter ended December 31, 2024.

    The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on May 21, 2025, to stockholders of record as of May 7, 2025.

    Craig L. Montanaro, President and Chief Executive Officer, commented, “Quarter over quarter net interest income grew by $1.4 million, resulting in eight basis points of net interest margin expansion. Contributing to this expansion was growth in net loans and deposits, coupled with a 24 basis point decrease in our cost of funds. We anticipate continued strong margin expansion into the June quarter, the final of our 2025 fiscal year.”

    Mr. Montanaro continued, “Despite recent fluctuations in US Treasury rates and broader market indices, our core business continues to perform exceedingly well and we are confident in our ability to sustain and enhance our performance in spite of the volatile environment.”

    Balance Sheet

    • Total assets were $7.73 billion at March 31, 2025, a increase of $1.8 million from December 31, 2024.
    • Investment securities totaled $1.13 billion at March 31, 2025, a decrease of $17.3 million, or 1.5%, from December 31, 2024.
    • Loans receivable totaled $5.85 billion at March 31, 2025, an increase of $54.4 million, or 0.9%, from December 31, 2024, primarily reflecting growth in non-residential mortgage loans.
    • Deposits were $5.71 billion at March 31, 2025, an increase of $36.3 million, or 0.6%, from December 31, 2024. This increase was primarily driven by increases in interest bearing demand deposits and consumer savings deposits, partially offset by a decrease in non-interest bearing demand deposits. The decrease in non-interest bearing deposits was primarily attributable to a $29.3 million outflow from a single depositor who used the funds to finance the construction of a building. Excluding this single account, non-interest bearing deposits increased $14.9 million, or 2.5%.
    • Borrowings were $1.21 billion at March 31, 2025, a decrease of $45.0 million, or 3.6%, from December 31, 2024, reflecting reductions in Federal Home Loan Bank (“FHLB”) overnight borrowings.
    • At March 31, 2025, the Company maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.42 billion, representing 31.3% of total assets.

    Earnings

    Net Interest Income and Net Interest Margin

    • Net interest margin expanded eight basis points from the quarter ended December 31, 2024 to 1.90% for the quarter ended March 31, 2025. The increase for the quarter was driven by the paydown of borrowings resulting from growth in lower cost deposits and broad based decreases in deposit rates, partially offset by reduced yields on interest-earning assets.
    • For the quarter ended March 31, 2025, net interest income increased $1.4 million to $34.0 million from $32.6 million for the quarter ended December 31, 2024. Included in net interest income for the quarters ended March 31, 2025 and December 31, 2024, respectively, was purchase accounting accretion of $511,000 and $685,000, and loan prepayment penalty income of $226,000 and $288,000.

    Non-Interest Income

    • For the quarter ended March 31, 2025, non-interest income decreased $311,000, or 6.4%, to $4.6 million from $4.9 million for the quarter ended December 31, 2024, primarily driven by decreases in gain on sale of loans and electronic banking fees and charges.
    • Gain on sale of loans decreased $192,000 to $112,000 for the quarter ended March 31, 2025 from $304,000 for the quarter ended December 31, 2024. The decrease largely reflected a seasonal decrease in the volume of residential mortgage loans sold during the period.
    • Electronic banking fees and charges decreased $102,000 to $391,000 for the quarter March 31, 2025 from $493,000 for the quarter ended December 31, 2024. The decrease largely reflected the absence of a non-recurring increase recorded in the prior period.

    Non-Interest Expense

    • For the quarter ended March 31, 2025, non-interest expense increased $829,000, or 2.8%, to $30.4 million from $29.6 million for the quarter ended December 31, 2024, primarily driven by increases in salary and benefits, net occupancy, advertising, and other expense.
    • Salary and benefits expense increased $121,000 to $17.7 million primarily driven by an increase of $546,000 in payroll taxes and employee benefits associated with the start of a new calendar year, partially offset by a $427,000 non-recurring decrease in stock-based compensation.
    • Net occupancy expense of premises increased $244,000 to $3.1 million primarily driven by seasonally higher snow removal expenses, partially offset by a decrease in repairs and other maintenance expenses.
    • Advertising and marketing expense increased $298,000 to $609,000. This increase was primarily due to higher advertising expenses across various formats, driven by marketing campaigns supporting our loan and deposit growth initiatives.
    • Other expense increased $225,000 primarily driven by a $37,000 provision for credit losses related to off balance sheet commitments compared to a reversal for credit losses on off balance sheet commitments of $116,000 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 $1.2 million for the quarter ended March 31, 2025 compared to $1.3 million for the quarter ended December 31, 2024, resulting in an effective tax rate of 15.3% and 16.0%, respectively.

    Asset Quality

    • The balance of non-performing assets remained steady at $37.7 million, or 0.49% of total assets, at March 31, 2025 and December 31, 2024, respectively.
    • Net charge-offs totaled $368,000, or 0.03% of average loans, on an annualized basis, for the quarter ended March 31, 2025, compared to $573,000, or 0.04% of average loans, on an annualized basis, for the quarter ended December 31, 2024.
    • For the quarter ended March 31, 2025, the Company recorded a provision for credit losses of $366,000, compared to $107,000 for the quarter ended December 31, 2024. The provision for credit loss expense for the quarter ended March 31, 2025 was primarily driven by the charge-offs described above.
    • The ACL was $44.5 million, or 0.76% of total loans, at March 31, 2025, a decrease of $2,000 from $44.5 million, or 0.77% of total loans, at December 31, 2024.

    Capital

    • For the quarter ended March 31, 2025, book value per share increased $0.05, or 0.4%, to $11.58 while tangible book value per share increased $0.05, or 0.5%, to $9.80.
    • At March 31, 2025, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $80.1 million, partially offset by after-tax unrealized gains on derivatives of $10.7 million. After-tax net unrecognized losses on securities held to maturity of $9.9 million were not reflected in total stockholders’ equity.
    • At March 31, 2025, the Company’s tangible equity to tangible assets ratio equaled 8.31% 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 Q3 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

    Linked-Quarter Comparative Financial Analysis


    Kearny Financial Corp.
    Consolidated Balance Sheets
    (Unaudited)
     
    (Dollars and Shares in Thousands,
    Except Per Share Data)    		March 31,
    2025    		December 31,
    2024    		Variance
    or Change    		Variance
    or Change Pct.
    Assets    
    Cash and cash equivalents$126,095 $141,554 $(15,459)-10.9%
    Securities available for sale 1,003,393  1,018,279  (14,886)-1.5%
    Securities held to maturity 124,859  127,266  (2,407)-1.9%
    Loans held-for-sale 6,187  5,695  492 8.6%
    Loans receivable 5,846,175  5,791,758  54,417 0.9%
    Less: allowance for credit losses on loans (44,455) (44,457) (2)-0.0%
    Net loans receivable 5,801,720  5,747,301  54,419 0.9%
    Premises and equipment 44,192  45,127  (935)-2.1%
    Federal Home Loan Bank stock 62,261  64,443  (2,182)-3.4%
    Accrued interest receivable 28,521  27,772  749 2.7%
    Goodwill 113,525  113,525  — —%
    Core deposit intangible 1,554  1,679  (125)-7.4%
    Bank owned life insurance 303,629  301,339  2,290 0.8%
    Deferred income taxes, net 52,913  53,325  (412)-0.8%
    Other assets 64,292  84,080  (19,788)-23.5%
    Total assets$7,733,141 $7,731,385 $1,756 0.0%
         
    Liabilities    
    Deposits:    
    Non-interest-bearing$587,118 $601,510 $(14,392)-2.4%
    Interest-bearing 5,120,230  5,069,550  50,680 1.0%
    Total deposits 5,707,348  5,671,060  36,288 0.6%
    Borrowings 1,213,976  1,258,949  (44,973)-3.6%
    Advance payments by borrowers for taxes 19,981  17,986  1,995 11.1%
    Other liabilities 43,723  38,537  5,186 13.5%
    Total liabilities 6,985,028  6,986,532  (1,504)-0.0%
         
    Stockholders' Equity    
    Common stock 646  646  — —%
    Paid-in capital 494,131  494,092  39 0.0%
    Retained earnings 341,921  342,155  (234)-0.1%
    Unearned ESOP shares (19,457) (19,943) 486 2.4%
    Accumulated other comprehensive loss (69,128) (72,097) 2,969 4.1%
    Total stockholders' equity 748,113  744,853  3,260 0.4%
    Total liabilities and stockholders' equity$7,733,141 $7,731,385 $1,756 0.0%
         
    Consolidated capital ratios    
    Equity to assets 9.67% 9.63% 0.04% 
    Tangible equity to tangible assets(1) 8.31% 8.27% 0.04% 
         
    Share data    
    Outstanding shares 64,580  64,580  — —%
    Book value per share$11.58 $11.53 $0.05 0.4%
    Tangible book value per share(2)$9.80 $9.75 $0.05 0.5%

    _________________________

    (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)
     
     Three Months Ended  
    (Dollars and Shares in Thousands, 
    Except Per Share Data)    		March 31,
    2025    		December 31,
    2024    		Variance 
    or Change          		Variance
    or Change Pct. 
    Interest income    
    Loans$64,768 $65,408 $(640)-1.0%
    Taxable investment securities 12,738  13,803  (1,065)-7.7%
    Tax-exempt investment securities 55  59  (4)-6.8%
    Other interest-earning assets 1,773  2,215  (442)-20.0%
    Total interest income 79,334  81,485  (2,151)-2.6%
         
    Interest expense    
    Deposits 34,912  36,721  (1,809)-4.9%
    Borrowings 10,380  12,152  (1,772)-14.6%
    Total interest expense 45,292  48,873  (3,581)-7.3%
    Net interest income 34,042  32,612  1,430 4.4%
    Provision for credit losses 366  107  259 242.1%
    Net interest income after provision for credit losses 33,676  32,505  1,171 3.6%
         
    Non-interest income    
    Fees and service charges 573  627  (54)-8.6%
    Gain on sale of loans 112  304  (192)-63.2%
    Income from bank owned life insurance 2,617  2,619  (2)-0.1%
    Electronic banking fees and charges 391  493  (102)-20.7%
    Other income 869  830  39 4.7%
    Total non-interest income 4,562  4,873  (311)-6.4%
         
    Non-interest expense    
    Salaries and employee benefits 17,700  17,579  121 0.7%
    Net occupancy expense of premises 3,075  2,831  244 8.6%
    Equipment and systems 3,921  3,892  29 0.7%
    Advertising and marketing 609  311  298 95.8%
    Federal deposit insurance premium 1,450  1,503  (53)-3.5%
    Directors' compensation 326  361  (35)-9.7%
    Other expense 3,309  3,084  225 7.3%
    Total non-interest expense 30,390  29,561  829 2.8%
    Income before income taxes 7,848  7,817  31 0.4%
    Income taxes 1,200  1,251  (51)-4.1%
    Net income$6,648 $6,566 $82 1.2%
         
    Net income per common share (EPS)    
    Basic$0.11 $0.11 $—  
    Diluted$0.11 $0.10 $0.01  
         
    Dividends declared    
    Cash dividends declared per common share$0.11 $0.11 $—  
    Cash dividends declared$6,933 $6,933 $—  
    Dividend payout ratio 104.3% 105.6% -1.3% 
         
    Weighted average number of common shares outstanding    
    Basic 62,548  62,443  105  
    Diluted 62,713  62,576  137  


    Kearny Financial Corp.
    Average Balance Sheet Data
    (Unaudited)
     
     Three Months Ended    
    (Dollars in Thousands) March 31,
    2025    		December 31,
    2024    		 Variance
    or Change         		Variance
    or Change Pct. 
    Assets    
    Interest-earning assets:    
    Loans receivable, including loans held for sale$5,805,045 $5,762,053 $42,992 0.7%
    Taxable investment securities 1,251,612  1,285,800  (34,188)-2.7%
    Tax-exempt investment securities 9,135  9,711  (576)-5.9%
    Other interest-earning assets 110,736  116,354  (5,618)-4.8%
    Total interest-earning assets 7,176,528  7,173,918  2,610 0.0%
    Non-interest-earning assets 457,206  459,982  (2,776)-0.6%
    Total assets$7,633,734 $7,633,900 $(166)-0.0%
         
    Liabilities and Stockholders' Equity    
    Interest-bearing liabilities:    
    Deposits:    
    Interest-bearing demand$2,405,974 $2,314,378 $91,596 4.0%
    Savings 751,243  711,801  39,442 5.5%
    Certificates of deposit (retail) 1,215,767  1,216,948  (1,181)-0.1%
    Certificates of deposit (brokered) 730,612  730,773  (161)-0.0%
    Total interest-bearing deposits 5,103,596  4,973,900  129,696 2.6%
    Borrowings:    
    Federal Home Loan Bank advances 1,028,958  1,085,455  (56,497)-5.2%
    Other borrowings 93,389  156,522  (63,133)-40.3%
    Total borrowings 1,122,347  1,241,977  (119,630)-9.6%
    Total interest-bearing liabilities 6,225,943  6,215,877  10,066 0.2%
    Non-interest-bearing liabilities:    
    Non-interest-bearing deposits 602,647  604,915  (2,268)-0.4%
    Other non-interest-bearing liabilities 59,919  65,258  (5,339)-8.2%
    Total non-interest-bearing liabilities 662,566  670,173  (7,607)-1.1%
    Total liabilities 6,888,509  6,886,050  2,459 0.0%
    Stockholders' equity 745,225  747,850  (2,625)-0.4%
    Total liabilities and stockholders' equity$7,633,734 $7,633,900 $(166)-0.0%
         
    Average interest-earning assets to average interest-bearing liabilities 115.27% 115.41% -0.14%-0.1%


    Kearny Financial Corp.
    Performance Ratio Highlights
    (Unaudited)
     
     Three Months Ended 
     March 31,
    2025    		December 31,
    2024    		Variance
    or Change     
    Average yield on interest-earning assets:   
    Loans receivable, including loans held for sale4.46%4.54%-0.08%
    Taxable investment securities4.07%4.29%-0.22%
    Tax-exempt investment securities(1)2.43%2.42%0.01%
    Other interest-earning assets6.40%7.62%-1.22%
    Total interest-earning assets4.42%4.54%-0.12%
        
    Average cost of interest-bearing liabilities:   
    Deposits:   
    Interest-bearing demand2.73%2.96%-0.23%
    Savings1.30%1.29%0.01%
    Certificates of deposit (retail)3.73%4.06%-0.33%
    Certificates of deposit (brokered)2.58%2.70%-0.12%
    Total interest-bearing deposits2.74%2.95%-0.21%
    Borrowings:   
    Federal Home Loan Bank advances3.63%3.78%-0.15%
    Other borrowings4.41%4.88%-0.47%
    Total borrowings3.70%3.91%-0.21%
    Total interest-bearing liabilities2.91%3.15%-0.24%
        
    Interest rate spread(2)1.51%1.39%0.12%
    Net interest margin(3)1.90%1.82%0.08%
        
    Non-interest income to average assets (annualized)0.24%0.26%-0.02%
    Non-interest expense to average assets (annualized)1.59%1.55%0.04%
        
    Efficiency ratio(4)78.72%78.86%-0.14%
        
    Return on average assets (annualized)0.35%0.34%0.01%
    Return on average equity (annualized)3.57%3.51%0.06%
    Return on average tangible equity (annualized)(5)4.28%4.21%0.07%

    _________________________

    (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)    		March 31,
    2025    		December 31,
    2024    		September 30,
    2024    		June 30,
    2024    		March 31,
    2024
     (Unaudited)(Unaudited)(Unaudited)(Audited)(Unaudited)
    Assets     
    Cash and cash equivalents$126,095 $141,554 $155,574 $63,864 $71,027 
    Securities available for sale 1,003,393  1,018,279  1,070,811  1,072,833  1,098,655 
    Securities held to maturity 124,859  127,266  132,256  135,742  139,643 
    Loans held-for-sale 6,187  5,695  8,866  6,036  4,117 
    Loans receivable 5,846,175  5,791,758  5,784,246  5,732,787  5,758,336 
    Less: allowance for credit losses on loans (44,455) (44,457) (44,923) (44,939) (44,930)
    Net loans receivable 5,801,720  5,747,301  5,739,323  5,687,848  5,713,406 
    Premises and equipment 44,192  45,127  45,189  44,940  45,053 
    Federal Home Loan Bank stock 62,261  64,443  57,706  80,300  81,347 
    Accrued interest receivable 28,521  27,772  29,467  29,521  31,065 
    Goodwill 113,525  113,525  113,525  113,525  210,895 
    Core deposit intangible 1,554  1,679  1,805  1,931  2,057 
    Bank owned life insurance 303,629  301,339  300,186  297,874  296,493 
    Deferred income taxes, net 52,913  53,325  50,131  50,339  47,225 
    Other assets 64,292  84,080  67,540  98,708  100,989 
    Total assets$7,733,141 $7,731,385 $7,772,379 $7,683,461 $7,841,972 
          
    Liabilities     
    Deposits:     
    Non-interest-bearing$587,118 $601,510 $592,099 $598,366 $586,089 
    Interest-bearing 5,120,230  5,069,550  4,878,413  4,559,757  4,622,961 
    Total deposits 5,707,348  5,671,060  5,470,512  5,158,123  5,209,050 
    Borrowings 1,213,976  1,258,949  1,479,888  1,709,789  1,722,178 
    Advance payments by borrowers for taxes 19,981  17,986  17,824  17,409  17,387 
    Other liabilities 43,723  38,537  52,618  44,569  44,279 
    Total liabilities 6,985,028  6,986,532  7,020,842  6,929,890  6,992,894 
          
    Stockholders' Equity     
    Common stock 646  646  646  644  644 
    Paid-in capital 494,131  494,092  493,523  493,680  493,187 
    Retained earnings 341,921  342,155  342,522  343,326  440,308 
    Unearned ESOP shares (19,457) (19,943) (20,430) (20,916) (21,402)
    Accumulated other comprehensive loss (69,128) (72,097) (64,724) (63,163) (63,659)
    Total stockholders' equity 748,113  744,853  751,537  753,571  849,078 
    Total liabilities and stockholders' equity$7,733,141 $7,731,385 $7,772,379 $7,683,461 $7,841,972 
          
    Consolidated capital ratios     
    Equity to assets 9.67% 9.63% 9.67% 9.81% 10.83%
    Tangible equity to tangible assets(1) 8.31% 8.27% 8.31% 8.43% 8.34%
          
    Share data     
    Outstanding shares 64,580  64,580  64,580  64,434  64,437 
    Book value per share$11.58 $11.53 $11.64 $11.70 $13.18 
    Tangible book value per share(2)$9.80 $9.75 $9.85 $9.90 $9.87 

    _________________________

    (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)March 31,
    2025    		December 31,
    2024    		September 30,
    2024    		June 30,
    2024    		March 31,
    2024
    Loan portfolio composition:     
    Commercial loans:     
    Multi-family mortgage$2,733,406 $2,722,623 $2,646,187 $2,645,851 $2,645,195 
    Nonresidential mortgage 988,074  950,194  950,771  948,075  965,539 
    Commercial business 140,224  135,740  145,984  142,747  147,326 
    Construction 174,722  176,704  227,327  209,237  229,457 
    Total commercial loans 4,036,426  3,985,261  3,970,269  3,945,910  3,987,517 
    One- to four-family residential mortgage 1,761,465  1,765,160  1,768,230  1,756,051  1,741,644 
    Consumer loans:     
    Home equity loans 49,699  47,101  44,741  44,104  42,731 
    Other consumer 2,859  2,778  2,965  2,685  3,198 
    Total consumer loans 52,558  49,879  47,706  46,789  45,929 
    Total loans, excluding yield adjustments 5,850,449  5,800,300  5,786,205  5,748,750  5,775,090 
    Unaccreted yield adjustments (4,274) (8,542) (1,959) (15,963) (16,754)
    Loans receivable, net of yield adjustments 5,846,175  5,791,758  5,784,246  5,732,787  5,758,336 
    Less: allowance for credit losses on loans (44,455) (44,457) (44,923) (44,939) (44,930)
    Net loans receivable$5,801,720 $5,747,301 $5,739,323 $5,687,848 $5,713,406 
          
    Asset quality:     
    Nonperforming assets:     
    Accruing loans - 90 days and over past due$— $— $— $— $— 
    Nonaccrual loans 37,683  37,697  39,854  39,882  39,546 
    Total nonperforming loans 37,683  37,697  39,854  39,882  39,546 
    Nonaccrual loans held-for-sale —  —  —  —  — 
    Other real estate owned —  —  —  —  — 
    Total nonperforming assets$37,683 $37,697 $39,854 $39,882 $39,546 
          
    Nonperforming loans (% total loans) 0.64% 0.65% 0.69% 0.70% 0.69%
    Nonperforming assets (% total assets) 0.49% 0.49% 0.51% 0.52% 0.50%
          
    Classified loans$125,790 $132,216 $119,534 $118,700 $115,772 
          
    Allowance for credit losses on loans (ACL):     
    ACL to total loans 0.76% 0.77% 0.78% 0.78% 0.78%
    ACL to nonperforming loans 117.97% 117.93% 112.72% 112.68% 113.61%
    Net charge-offs$368 $573 $124 $3,518 $286 
    Average net charge-off rate (annualized) 0.03% 0.04% 0.01% 0.25% 0.02%


    Kearny Financial Corp.
    Supplemental Balance Sheet Highlights
    (Unaudited)
     
    (Dollars in Thousands)March 31,
    2025    		December 31,
    2024    		September 30,
    2024    		June 30,
    2024    		March 31,
    2024
    Funding composition:     
    Deposits:     
    Non-interest-bearing deposits$587,118 $601,510 $592,099 $598,367 $586,089 
    Interest-bearing demand 2,410,925  2,380,408  2,247,685  2,308,915  2,349,032 
    Savings 758,239  742,266  681,709  643,481  630,456 
    Certificates of deposit (retail) 1,218,479  1,213,887  1,215,746  1,199,127  1,235,261 
    Certificates of deposit (brokered) 732,587  732,989  733,273  408,234  408,212 
    Interest-bearing deposits 5,120,230  5,069,550  4,878,413  4,559,757  4,622,961 
    Total deposits 5,707,348  5,671,060  5,470,512  5,158,124  5,209,050 
          
    Borrowings:     
    Federal Home Loan Bank advances 1,028,976  1,028,949  1,209,888  1,534,789  1,457,178 
    Overnight borrowings 185,000  230,000  270,000  175,000  265,000 
    Total borrowings 1,213,976  1,258,949  1,479,888  1,709,789  1,722,178 
          
    Total funding$6,921,324 $6,930,009 $6,950,400 $6,867,913 $6,931,228 
          
    Loans as a % of deposits 101.8% 101.4% 105.1% 110.4% 109.8%
    Deposits as a % of total funding 82.5% 81.8% 78.7% 75.1% 75.2%
    Borrowings as a % of total funding 17.5% 18.2% 21.3% 24.9% 24.8%
          
    Uninsured deposits:     
    Uninsured deposits (reported)(1)$1,959,070 $1,935,607 $1,799,726 $1,772,623 $1,760,740 
    Uninsured deposits (adjusted)(2)$799,238 $797,721 $773,375 $764,447 $718,026 

    _________________________

    (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)    		March 31,
    2025    		December 31,
    2024    		September 30,
    2024    		June 30,
    2024    		March 31,
    2024
    Interest income     
    Loans$64,768 $65,408 $66,331 $65,819 $64,035 
    Taxable investment securities 12,738  13,803  14,384  14,802  15,490 
    Tax-exempt investment securities 55  59  71  80  85 
    Other interest-earning assets 1,773  2,215  2,466  2,289  2,475 
    Total interest income 79,334  81,485  83,252  82,990  82,085 
          
    Interest expense     
    Deposits 34,912  36,721  35,018  32,187  32,320 
    Borrowings 10,380  12,152  15,788  17,527  15,446 
    Total interest expense 45,292  48,873  50,806  49,714  47,766 
    Net interest income 34,042  32,612  32,446  33,276  34,319 
    Provision for credit losses 366  107  108  3,527  349 
    Net interest income after provision for credit losses 33,676  32,505  32,338  29,749  33,970 
          
    Non-interest income     
    Fees and service charges 573  627  635  580  657 
    Gain (loss) on sale of loans 112  304  200  111  (712)
    Income from bank owned life insurance 2,617  2,619  2,567  3,209  3,039 
    Electronic banking fees and charges 391  493  391  1,130  464 
    Other income 869  830  833  776  755 
    Total non-interest income 4,562  4,873  4,626  5,806  4,203 
          
    Non-interest expense     
    Salaries and employee benefits 17,700  17,579  17,498  17,266  16,911 
    Net occupancy expense of premises 3,075  2,831  2,798  2,738  2,863 
    Equipment and systems 3,921  3,892  3,860  3,785  3,823 
    Advertising and marketing 609  311  342  480  387 
    Federal deposit insurance premium 1,450  1,503  1,563  1,532  1,429 
    Directors' compensation 326  361  361  360  360 
    Goodwill impairment —  —  —  97,370  — 
    Other expense 3,309  3,084  3,364  3,020  3,286 
    Total non-interest expense 30,390  29,561  29,786  126,551  29,059 
    Income (loss) before income taxes 7,848  7,817  7,178  (90,996) 9,114 
    Income taxes 1,200  1,251  1,086  (917) 1,717 
    Net income (loss)$6,648 $6,566 $6,092 $(90,079)$7,397 
          
    Net income (loss) per common share (EPS)     
    Basic$0.11 $0.11 $0.10 $(1.45)$0.12 
    Diluted$0.11 $0.10 $0.10 $(1.45)$0.12 
          
    Dividends declared     
    Cash dividends declared per common share$0.11 $0.11 $0.11 $0.11 $0.11 
    Cash dividends declared$6,933 $6,933 $6,896 $6,903 $6,844 
    Dividend payout ratio 104.3% 105.6% 113.2% -7.7% 92.5%
          
    Weighted average number of common shares outstanding     
    Basic 62,548  62,443  62,389  62,254  62,205 
    Diluted 62,713  62,576  62,420  62,330  62,211 


    Kearny Financial Corp.
    Average Balance Sheet Data
    (Unaudited)
     
     Three Months Ended
    (Dollars in Thousands)March 31,
    2025    		December 31,
    2024    		September 30,
    2024    		June 30,
    2024    		March 31,
    2024
    Assets     
    Interest-earning assets:     
    Loans receivable, including loans held-for-sale$5,805,045 $5,762,053 $5,761,593 $5,743,008 $5,752,477 
    Taxable investment securities 1,251,612  1,285,800  1,314,945  1,343,541  1,382,064 
    Tax-exempt investment securities 9,135  9,711  12,244  13,737  14,614 
    Other interest-earning assets 110,736  116,354  131,981  128,257  125,155 
    Total interest-earning assets 7,176,528  7,173,918  7,220,763  7,228,543  7,274,310 
    Non-interest-earning assets 457,206  459,982  467,670  466,537  577,411 
    Total assets$7,633,734 $7,633,900 $7,688,433 $7,695,080 $7,851,721 
          
    Liabilities and Stockholders' Equity     
    Interest-bearing liabilities:     
    Deposits:     
    Interest-bearing demand$2,405,974 $2,314,378 $2,282,608 $2,310,521 $2,378,831 
    Savings 751,243  711,801  668,240  631,622  635,226 
    Certificates of deposit (retail) 1,215,767  1,216,948  1,203,770  1,208,101  1,257,362 
    Certificates of deposit (brokered) 730,612  730,773  551,819  405,697  448,151 
    Total interest-bearing deposits 5,103,596  4,973,900  4,706,437  4,555,941  4,719,570 
    Borrowings:     
    Federal Home Loan Bank advances 1,028,958  1,085,455  1,325,583  1,507,192  1,428,801 
    Other borrowings 93,389  156,522  237,011  228,461  210,989 
    Total borrowings 1,122,347  1,241,977  1,562,594  1,735,653  1,639,790 
    Total interest-bearing liabilities 6,225,943  6,215,877  6,269,031  6,291,594  6,359,360 
    Non-interest-bearing liabilities:     
    Non-interest-bearing deposits 602,647  604,915  599,095  589,438  581,870 
    Other non-interest-bearing liabilities 59,919  65,258  69,629  62,978  65,709 
    Total non-interest-bearing liabilities 662,566  670,173  668,724  652,416  647,579 
    Total liabilities 6,888,509  6,886,050  6,937,755  6,944,010  7,006,939 
    Stockholders' equity 745,225  747,850  750,678  751,070  844,782 
    Total liabilities and stockholders' equity$7,633,734 $7,633,900 $7,688,433 $7,695,080 $7,851,721 
          
    Average interest-earning assets to average
    interest-bearing liabilities    		 115.27% 115.41% 115.18% 114.89% 114.39%


    Kearny Financial Corp.
    Performance Ratio Highlights
     
     Three Months Ended
     March 31,
    2025    		December 31,
    2024    		September 30,
    2024    		June 30,
    2024    		March 31,
    2024
    Average yield on interest-earning assets:     
    Loans receivable, including loans held-for-sale4.46%4.54%4.61%4.58%4.45%
    Taxable investment securities4.07%4.29%4.38%4.41%4.48%
    Tax-exempt investment securities(1)2.43%2.42%2.32%2.32%2.32%
    Other interest-earning assets6.40%7.62%7.47%7.14%7.91%
    Total interest-earning assets4.42%4.54%4.61%4.59%4.51%
          
    Average cost of interest-bearing liabilities:     
    Deposits:     
    Interest-bearing demand2.73%2.96%3.13%3.06%3.08%
    Savings1.30%1.29%1.05%0.63%0.46%
    Certificates of deposit (retail)3.73%4.06%4.12%3.95%3.52%
    Certificates of deposit (brokered)2.58%2.70%2.18%1.59%1.97%
    Total interest-bearing deposits2.74%2.95%2.98%2.83%2.74%
    Borrowings:     
    Federal Home Loan Bank advances3.63%3.78%3.82%3.86%3.55%
    Other borrowings4.41%4.88%5.28%5.24%5.22%
    Total borrowings3.70%3.91%4.04%4.04%3.77%
    Total interest-bearing liabilities2.91%3.15%3.24%3.16%3.00%
          
    Interest rate spread(2)1.51%1.39%1.37%1.43%1.51%
    Net interest margin(3)1.90%1.82%1.80%1.84%1.89%
          
    Non-interest income to average assets (annualized)0.24%0.26%0.24%0.30%0.21%
    Non-interest expense to average assets (annualized)1.59%1.55%1.55%6.58%1.48%
          
    Efficiency ratio(4)78.72%78.86%80.35%323.81%75.43%
          
    Return on average assets (annualized)0.35%0.34%0.32%-4.68%0.38%
    Return on average equity (annualized)3.57%3.51%3.25%-47.97%3.50%
    Return on average tangible equity (annualized)(5)4.28%4.21%3.89%3.33%4.68%

    _________________________

    (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)    		March 31,
    2025    		December 31,
    2024    		September 30,
    2024    		June 30,
    2024    		March 31,
    2024
    Adjusted net income:     
    Net income (loss) (GAAP)$6,648 $6,566 $6,092 $(90,079)$7,397 
    Non-recurring transactions - net of tax:     
    Net effect of bank-owned life insurance restructure —  —  —  392  — 
    Goodwill impairment —  —  —  95,283  — 
    Adjusted net income$6,648 $6,566 $6,092 $5,596 $7,397 
          
    Calculation of pre-tax, pre-provision net revenue:     
    Net income (loss) (GAAP)$6,648 $6,566 $6,092 $(90,079)$7,397 
    Adjustments to net income (GAAP):     
    Provision for income taxes 1,200  1,251  1,086  (917) 1,717 
    Provision for credit losses 366  107  108  3,527  349 
    Pre-tax, pre-provision net revenue (non-GAAP)$8,214 $7,924 $7,286 $(87,469)$9,463 
          
    Adjusted earnings per share:     
    Weighted average common shares - basic 62,548  62,443  62,389  62,254  62,205 
    Weighted average common shares - diluted 62,713  62,576  62,420  62,330  62,211 
          
    Earnings per share - basic (GAAP)$0.11 $0.11 $0.10 $(1.45)$0.12 
    Earnings per share - diluted (GAAP)$0.11 $0.10 $0.10 $(1.45)$0.12 
          
    Adjusted earnings per share - basic (non-GAAP)$0.11 $0.11 $0.10 $0.09 $0.12 
    Adjusted earnings per share - diluted (non-GAAP)$0.11 $0.10 $0.10 $0.09 $0.12 
          
    Pre-tax, pre-provision net revenue per share:     
    Pre-tax, pre-provision net revenue per share - basic
    (non-GAAP)    		$0.13 $0.13 $0.12 $(1.41)$0.15 
    Pre-tax, pre-provision net revenue per share - diluted
    (non-GAAP)    		$0.13 $0.13 $0.12 $(1.41)$0.15 
          
    Adjusted return on average assets:     
    Total average assets$7,633,734 $7,633,900 $7,688,433 $7,695,080 $7,851,721 
          
    Return on average assets (GAAP) 0.35% 0.34% 0.32% -4.68% 0.38%
    Adjusted return on average assets (non-GAAP) 0.35% 0.34% 0.32% 0.29% 0.38%
          
    Adjusted return on average equity:     
    Total average equity$745,225 $747,850 $750,678 $751,070 $844,782 
          
    Return on average equity (GAAP) 3.57% 3.51% 3.25% -47.97% 3.50%
    Adjusted return on average equity (non-GAAP) 3.57% 3.51% 3.25% 2.98% 3.50%


    Kearny Financial Corp.
    Reconciliation of GAAP to Non-GAAP
    (Unaudited)
     
     Three Months Ended
    (Dollars and Shares in Thousands,
    Except Per Share Data)    		March 31,
    2025    		December 31,
    2024    		September 30,
    2024    		June 30,
    2024    		March 31,
    2024
    Adjusted return on average tangible equity:     
    Total average equity$745,225 $747,850 $750,678 $751,070 $844,782 
    Less: average goodwill (113,525) (113,525) (113,525) (113,525) (210,895)
    Less: average other intangible assets (1,636) (1,761) (1,886) (2,006) (2,138)
    Total average tangible equity$630,064 $632,564 $635,267 $635,539 $631,749 
          
    Return on average tangible equity (non-GAAP) 4.28% 4.21% 3.89% 3.33% 4.68%
    Adjusted return on average tangible equity (non-GAAP) 4.28% 4.21% 3.89% 3.58% 4.68%
          
    Adjusted non-interest expense ratio:     
    Non-interest expense (GAAP)$30,390 $29,561 $29,786 $126,551 $29,059 
    Non-recurring transactions:     
    Goodwill impairment —  —  —  (97,370) — 
    Non-interest expense (non-GAAP)$30,390 $29,561 $29,786 $29,181 $29,059 
          
    Non-interest expense ratio (GAAP) 1.59% 1.55% 1.55% 6.58% 1.48%
    Adjusted non-interest expense ratio (non-GAAP) 1.59% 1.55% 1.55% 1.52% 1.48%
          
    Adjusted efficiency ratio:     
    Non-interest expense (non-GAAP)$30,390 $29,561 $29,786 $29,181 $29,059 
          
    Net interest income (GAAP)$34,042 $32,612 $32,446 $33,276 $34,319 
    Total non-interest income (GAAP) 4,562  4,873  4,626  5,806  4,203 
    Non-recurring transactions:     
    Net effect of bank-owned life insurance restructure —  —  —  392  — 
    Total revenue (non-GAAP)$38,604 $37,485 $37,072 $39,474 $38,522 
          
    Efficiency ratio (GAAP) 78.72% 78.86% 80.35% 323.81% 75.43%
    Adjusted efficiency ratio (non-GAAP) 78.72% 78.86% 80.35% 73.92% 75.43%


    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


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