Kearny Financial Corp. Announces Fourth Quarter and Fiscal Year End 2025 Results and Declaration of $0.11 per Share Cash Dividend
Kearny Financial Corp. (NASDAQ GS: KRNY) reported Q4 2025 net income of $6.8 million ($0.11 per diluted share), up from $6.6 million in Q3 2025. For fiscal year 2025, net income was $26.1 million ($0.42 per diluted share), compared to a net loss of $86.7 million in FY2024. The Board declared a quarterly cash dividend of $0.11 per share.
Key Q4 highlights include a 10 basis point increase in net interest margin to 2.00%, 23% growth in pre-tax, pre-provision earnings per share, and negligible net charge-offs. Total assets reached $7.74 billion, with loans totaling $5.81 billion and deposits at $5.68 billion. Credit quality metrics remained strong with non-performing assets at 0.59% of total assets.
Kearny Financial Corp. (NASDAQ GS: KRNY) ha riportato un utile netto nel quarto trimestre 2025 di 6,8 milioni di dollari (0,11 dollari per azione diluita), in aumento rispetto ai 6,6 milioni di dollari del terzo trimestre 2025. Per l'anno fiscale 2025, l'utile netto è stato di 26,1 milioni di dollari (0,42 dollari per azione diluita), rispetto a una perdita netta di 86,7 milioni di dollari nell'anno fiscale 2024. Il Consiglio di Amministrazione ha dichiarato un dividendo trimestrale in contanti di 0,11 dollari per azione.
I principali risultati del quarto trimestre includono un aumento di 10 punti base nel margine di interesse netto, che ha raggiunto il 2,00%, una crescita del 23% degli utili per azione ante imposte e ante accantonamenti, e perdite nette su crediti trascurabili. Gli attivi totali hanno raggiunto 7,74 miliardi di dollari, con prestiti per 5,81 miliardi di dollari e depositi per 5,68 miliardi di dollari. Gli indicatori di qualità del credito sono rimasti solidi, con attività non performanti pari allo 0,59% del totale attivi.
Kearny Financial Corp. (NASDAQ GS: KRNY) reportó un ingreso neto en el cuarto trimestre de 2025 de 6,8 millones de dólares (0,11 dólares por acción diluida), aumentando desde los 6,6 millones de dólares en el tercer trimestre de 2025. Para el año fiscal 2025, el ingreso neto fue de 26,1 millones de dólares (0,42 dólares por acción diluida), en comparación con una pérdida neta de 86,7 millones de dólares en el año fiscal 2024. La Junta declaró un dividendo trimestral en efectivo de 0,11 dólares por acción.
Los aspectos destacados clave del cuarto trimestre incluyen un aumento de 10 puntos básicos en el margen de interés neto hasta el 2,00%, un crecimiento del 23% en las ganancias por acción antes de impuestos y provisiones, y cargos netos por incobrables insignificantes. Los activos totales alcanzaron 7,74 mil millones de dólares, con préstamos por un total de 5,81 mil millones y depósitos de 5,68 mil millones. Las métricas de calidad crediticia se mantuvieron sólidas, con activos no productivos en 0,59% del total de activos.
Kearny Financial Corp. (NASDAQ GS: KRNY)는 2025년 4분기 순이익이 680만 달러 (희석 주당 0.11달러)로, 2025년 3분기의 660만 달러에서 증가했다고 보고했습니다. 2025 회계연도 순이익은 2,610만 달러 (희석 주당 0.42달러)로, 2024 회계연도의 순손실 8,670만 달러와 비교됩니다. 이사회는 분기별 현금 배당금으로 주당 0.11달러를 선언했습니다.
4분기 주요 성과로는 순이자마진이 10베이시스 포인트 상승하여 2.00%를 기록했고, 세전 및 충당금 차감 전 주당순이익이 23% 성장했으며, 순대손상실익은 거의 없었습니다. 총자산은 77억 4천만 달러에 달했고, 대출금은 58억 1천만 달러, 예금은 56억 8천만 달러였습니다. 신용 품질 지표는 견고하게 유지되어 부실 자산이 총자산의 0.59%였습니다.
Kearny Financial Corp. (NASDAQ GS: KRNY) a annoncé un bénéfice net au quatrième trimestre 2025 de 6,8 millions de dollars (0,11 dollar par action diluée), en hausse par rapport à 6,6 millions de dollars au troisième trimestre 2025. Pour l'exercice 2025, le bénéfice net s'élève à 26,1 millions de dollars (0,42 dollar par action diluée), contre une perte nette de 86,7 millions de dollars en 2024. Le conseil d'administration a déclaré un dividende trimestriel en espèces de 0,11 dollar par action.
Les points clés du quatrième trimestre incluent une augmentation de 10 points de base de la marge d'intérêt nette à 2,00 %, une croissance de 23 % du bénéfice par action avant impôts et provisions, et des pertes nettes sur créances négligeables. Le total des actifs a atteint 7,74 milliards de dollars, avec des prêts totalisant 5,81 milliards et des dépôts à 5,68 milliards. Les indicateurs de qualité du crédit sont restés solides, avec des actifs non performants à 0,59 % du total des actifs.
Kearny Financial Corp. (NASDAQ GS: KRNY) meldete für das vierte Quartal 2025 einen Nettogewinn von 6,8 Millionen US-Dollar (0,11 US-Dollar je verwässerter Aktie), gegenüber 6,6 Millionen US-Dollar im dritten Quartal 2025. Für das Geschäftsjahr 2025 betrug der Nettogewinn 26,1 Millionen US-Dollar (0,42 US-Dollar je verwässerter Aktie), im Vergleich zu einem Nettoverlust von 86,7 Millionen US-Dollar im Geschäftsjahr 2024. Der Vorstand erklärte eine vierteljährliche Bardividende von 0,11 US-Dollar je Aktie.
Wesentliche Highlights des vierten Quartals umfassen eine Steigerung der Nettozinsmarge um 10 Basispunkte auf 2,00 %, ein Wachstum von 23 % beim Gewinn vor Steuern und Rückstellungen je Aktie sowie vernachlässigbare Nettoabschreibungen. Die Gesamtaktiva erreichten 7,74 Milliarden US-Dollar, mit Krediten in Höhe von 5,81 Milliarden und Einlagen von 5,68 Milliarden. Die Kreditqualität blieb stark, mit notleidenden Vermögenswerten von 0,59 % der Gesamtaktiva.
- None.
- Net income declined year-over-year from $28.2 million (adjusted) to $26.1 million
- Non-performing assets increased to 0.59% of total assets from 0.49% in previous quarter
- Net interest income decreased 5.4% year-over-year to $134.9 million
- Loans receivable decreased 0.6% quarter-over-quarter
Insights
Kearny Financial shows modest quarterly improvement with margin expansion, but annual performance still lags previous year's adjusted results.
Kearny Financial (KRNY) reported Q4 net income of
The net interest margin improved by 10 basis points to
Asset quality metrics show some deterioration with non-performing assets increasing to
The company's balance sheet shows little growth with total assets virtually unchanged at
The allowance for credit losses increased to
Management's commentary highlighted the 23% growth in pre-tax, pre-provision earnings per share and expressed confidence in continued margin expansion and earnings growth. The company also announced plans to consolidate three branch locations in October 2025, indicating ongoing efficiency efforts.
FAIRFIELD, N.J., July 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 June 30, 2025 of
For the fiscal year ended June 30, 2025, the Company reported net income of
The Company also announced that its Board of Directors declared a quarterly cash dividend of
Craig L. Montanaro, President and Chief Executive Officer, commented, “We are pleased to report
Mr. Montanaro continued, “These results reflect the successful execution of our strategy and the tailwinds provided by the natural repricing of our loan and time deposit portfolios. Looking ahead, we remain confident in our ability to deliver sustained earnings growth and continued margin expansion, creating long-term value for our shareholders.”
Fourth Quarter Highlights
- Net interest margin increased 10 basis points to
2.00% , while net interest income increased5.3% to$35.8 million . - Pre-tax, pre-provision earnings per share increased
23% to$0.16 per diluted share. - Net charge-offs were less than
0.01% of average loans, reflecting strong underwriting and exceptional credit quality. - Non-interest expense to average assets was
1.58% , reflecting disciplined expense management. - The Company received regulatory approval to consolidate three branch locations, scheduled to close in October 2025. These closures are expected to have minimal impact on the Company’s financial results.
Balance Sheet
- Total assets were
$7.74 billion at June 30, 2025, an increase of$7.3 million , or0.1% , from March 31, 2025 and an increase of$57.0 million , or0.7% , from June 30, 2024. - Investment securities totaled
$1.13 billion at June 30, 2025, an increase of$4.9 million , or0.4% , from March 31, 2025 and a decrease of$75.4 million , or6.2% , from June 30, 2024. - Loans receivable totaled
$5.81 billion at June 30, 2025, a decrease of$33.2 million , or0.6% , from March 31, 2025 and an increase of$80.2 million , or1.4% , from June 30, 2024. - Deposits were
$5.68 billion at June 30, 2025, a decrease of$32.1 million , or0.6% , from March 31, 2025 and an increase of$517.1 million , or10.0% , from June 30, 2024. The decrease from March 31, 2025 was primarily driven by a decline in interest bearing demand deposits, partially offset by an increase in certificates of deposits (“CDs”). The increase from June 30, 2024 was primarily driven by a reallocation from Federal Home Loan Bank (“FHLB”) advances into brokered CDs, reflecting more favorable funding costs, and growth in deposits from our branch network and digital channels. - Borrowings were
$1.26 billion at June 30, 2025, an increase of$42.5 million , or3.5% , from March 31, 2025 and a decrease of$453.3 million , or26.5% , from June 30, 2024. - At June 30, 2025, the Company maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of
$2.22 billion , representing28.7% of total assets.
Earnings
Net Interest Income and Net Interest Margin
- Net interest margin increased by 10 basis points to
2.00% for the quarter ended June 30, 2025 and declined six basis points to1.88% for the year ended June 30, 2025. The quarterly improvement was driven by higher yields and average balances on loans receivable, a reduction in interest-bearing deposits, and broad-based declines in deposit rates. The year-over-year decline reflected higher costs on interest-bearing liabilities and a lower average balance of interest-earning assets, partially offset by improved asset yields and a reduction in the average balance of interest-bearing liabilities. - For the quarter ended June 30, 2025, net interest income increased
$1.8 million , or5.3% , to$35.8 million from$34.0 million for the quarter ended March 31, 2025. Included in net interest income for the quarters ended June 30, 2025 and March 31, 2025, was purchase accounting accretion of$511,000 in each period and loan prepayment penalty income of$217,000 and$226,000 , respectively. - For the year ended June 30, 2025, net interest income decreased
$7.7 million , or5.4% , to$134.9 million from$142.6 million for the year ended June 30, 2024. Included in net interest income for the years ended June 30, 2025 and 2024, respectively, was purchase accounting accretion of$2.4 million and$2.6 million and loan prepayment penalty income of$783,000 and$879,000.
Non-Interest Income
- For the quarter ended June 30, 2025, non-interest income increased
$429,000 , or9.4% , to$5.0 million from$4.6 million for the quarter ended March 31, 2025, primarily driven by increases in income from bank owned life insurance (“BOLI”), gain on sale of loans and electronic banking fees and charges. - Income from BOLI increased
$252,000 t o$2.9 million for the quarter ended June 30, 2025 from$2.6 million for the quarter ended March 31, 2025, primarily driven by$223,000 in non-recurring payments on two life insurance policies in the current period. No such non-recurring items were recorded in the prior period. - Gain on sale of loans increased
$78,000 t o$190,000 for the quarter ended June 30, 2025 from$112,000 for the quarter ended March 31, 2025. - For the year ended June 30, 2025, non-interest income increased
$21.0 million to$19.1 million from a loss of$2.0 million for the year ended June 30, 2024. The increase was primarily attributable to the absence of an$18.1 million pre-tax loss related to the investment securities portfolio repositioning executed during December 2023 and the absence of a non-recurring pre-tax loss of$884,000 attributable to the sale of three related nonperforming commercial real estate loans held-for-sale in the year ended June 30, 2024. No such losses were recorded during the year ended June 30, 2025.
Non-Interest Expense
- For the quarter ended June 30, 2025, non-interest expense increased
$503,000 , or1.7% , to$30.9 million from$30.4 million for the quarter ended March 31, 2025, primarily driven by increases in salary and benefits and other expenses, partially offset by a decrease in net occupancy expense. - Salary and benefits expense increased
$393,000 t o$18.1 million for the quarter ended June 30, 2025 from$17.7 million for the quarter ended March 31, 2025, primarily driven by the absence of a$427,000 non-recurring decrease in stock-based compensation recorded in the prior period. - Net occupancy expense of premises decreased
$255,000 t o$2.8 million for the quarter ended June 30, 2025 from$3.1 million for the quarter ended March 31, 2025, primarily driven by lower snow removal expenses recorded in the current period. - Other expense increased
$324,000 t o$3.6 million for the quarter ended June 30, 2025 from$3.3 million for the quarter ended March 31, 2025, primarily due to a non-recurring increase in professional fees incurred during the period. The remaining changes in the other components of non-interest expense between comparative periods generally reflected normal operating fluctuations within those line items. - For the year ended June 30, 2025, non-interest expense decreased
$94.5 million , or43.9% , to$120.6 million from$215.2 million for the year ended June 30, 2024, primarily reflecting the absence of a non-cash goodwill impairment recognized in the prior year period. Excluding the goodwill impairment, adjusted non-interest expense for the year ended June 30, 2025 increased$2.8 million , or2.4% , from$117.8 million in the prior year period. The increase was primarily attributable to an increase in salary and benefits expense attributable to annual merit increases and higher incentive compensation.
Income Taxes
- Income tax expense totaled
$1.4 million for the quarter ended June 30, 2025 compared to$1.2 million for the quarter ended March 31, 2025, resulting in an effective tax rate of17.0% and15.3% , respectively. - Income tax expense totaled
$4.9 million for the year ended June 30, 2025 compared to$5.9 million for the year ended June 30, 2024. The decrease in income tax expense was primarily driven by the absence of a$5.7 million tax expense related to the surrender of BOLI policies in the prior year period, partially offset by higher pre-tax income in the current year period.
Asset Quality
- The balance of non-performing assets increased
$7.9 million to$45.6 million , or0.59% of total assets, at June 30, 2025, from$37.7 million , or0.49% of total assets, at March 31, 2025. The balance of non-performing assets was$39.9 million , or0.52% of total assets, at June 30, 2024. The increase from March 31, 2025 was primarily driven by two multifamily relationships totaling$6.1 million that were placed on non-accrual status. - Net charge-offs totaled
$49,000 , or less than0.01% of average loans, on an annualized basis, for the quarter ended June 30, 2025, compared to$368,000 , or0.03% of average loans, on an annualized basis, for the quarter ended March 31, 2025. For the year ended June 30, 2025, net charge-offs totaled$1.1 million , or0.02% of average loans, compared to$10.0 million , or0.17% of average loans, for the year ended June 30, 2024. - For the quarter ended June 30, 2025, the Company recorded a provision for credit losses of
$1.8 million , compared to$366,000 for the quarter ended March 31, 2025. The provision for credit losses for the quarter ended June 30, 2025 was driven by an$805,000 reserve related to a non-performing wholesale commercial and industrial (“C&I”) loan, representing the final wholesale C&I loan in the portfolio. Additionally, the current quarter’s provision included a$1.1 million increase in reserves on individually evaluated loans. For the years ended June 30, 2025 and June 30, 2024, the Company recorded a provision for credit losses of$2.4 million and$6.2 million , respectively. - The allowance for credit losses (“ACL”) was
$46.2 million , or0.79% of total loans, at June 30, 2025, an increase of$1.7 million from$44.5 million , or0.76% of total loans, at March 31, 2025. The ACL was$44.9 million , or0.78% of total loans, at June 30, 2024.
Capital
- For the quarter ended June 30, 2025, book value per share and tangible book value per share decreased
$0.03 , or0.3% , to$11.55 and$9.77 , respectively, compared to the prior period. - At June 30, 2025, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of
$79.6 million , partially offset by after-tax unrealized gains on derivatives of$6.9 million . After-tax net unrecognized losses on securities held to maturity of$9.6 million were not reflected in total stockholders’ equity. - At June 30, 2025, 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 Q4 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.
Non-GAAP Measures
This earnings release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as a reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measures provide useful information that is important to an understanding of the results of the Company’s core business as well as provide information standard in the financial institution industry. Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company.
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) | June 30, 2025 | March 31, 2025 | Variance or Change | Variance or Change Pct. | ||||||||
| Assets | ||||||||||||
| Cash and cash equivalents | $ | 167,269 | $ | 126,095 | $ | 41,174 | 32.7 | % | ||||
| Securities available for sale | 1,012,969 | 1,003,393 | 9,576 | 1.0 | % | |||||||
| Securities held to maturity | 120,217 | 124,859 | (4,642 | ) | -3.7 | % | ||||||
| Loans held-for-sale | 5,931 | 6,187 | (256 | ) | -4.1 | % | ||||||
| Loans receivable | 5,812,937 | 5,846,175 | (33,238 | ) | -0.6 | % | ||||||
| Less: allowance for credit losses on loans | (46,191 | ) | (44,455 | ) | 1,736 | 3.9 | % | |||||
| Net loans receivable | 5,766,746 | 5,801,720 | (34,974 | ) | -0.6 | % | ||||||
| Premises and equipment | 43,897 | 44,192 | (295 | ) | -0.7 | % | ||||||
| Federal Home Loan Bank stock | 64,261 | 62,261 | 2,000 | 3.2 | % | |||||||
| Accrued interest receivable | 28,098 | 28,521 | (423 | ) | -1.5 | % | ||||||
| Goodwill | 113,525 | 113,525 | — | — | % | |||||||
| Core deposit intangible | 1,436 | 1,554 | (118 | ) | -7.6 | % | ||||||
| Bank owned life insurance | 304,717 | 303,629 | 1,088 | 0.4 | % | |||||||
| Deferred income taxes, net | 55,203 | 52,913 | 2,290 | 4.3 | % | |||||||
| Other assets | 56,181 | 64,292 | (8,111 | ) | -12.6 | % | ||||||
| Total assets | $ | 7,740,450 | $ | 7,733,141 | $ | 7,309 | 0.1 | % | ||||
| Liabilities | ||||||||||||
| Deposits: | ||||||||||||
| Non-interest-bearing | $ | 582,045 | $ | 587,118 | $ | (5,073 | ) | -0.9 | % | |||
| Interest-bearing | 5,093,172 | 5,120,230 | (27,058 | ) | -0.5 | % | ||||||
| Total deposits | 5,675,217 | 5,707,348 | (32,131 | ) | -0.6 | % | ||||||
| Borrowings | 1,256,491 | 1,213,976 | 42,515 | 3.5 | % | |||||||
| Advance payments by borrowers for taxes | 19,317 | 19,981 | (664 | ) | -3.3 | % | ||||||
| Other liabilities | 43,463 | 43,723 | (260 | ) | -0.6 | % | ||||||
| Total liabilities | 6,994,488 | 6,985,028 | 9,460 | 0.1 | % | |||||||
| Stockholders' Equity | ||||||||||||
| Common stock | 646 | 646 | — | — | % | |||||||
| Paid-in capital | 494,546 | 494,131 | 415 | 0.1 | % | |||||||
| Retained earnings | 341,744 | 341,921 | (177 | ) | -0.1 | % | ||||||
| Unearned ESOP shares | (18,970 | ) | (19,457 | ) | 487 | 2.5 | % | |||||
| Accumulated other comprehensive loss | (72,004 | ) | (69,128 | ) | (2,876 | ) | -4.2 | % | ||||
| Total stockholders' equity | 745,962 | 748,113 | (2,151 | ) | -0.3 | % | ||||||
| Total liabilities and stockholders' equity | $ | 7,740,450 | $ | 7,733,141 | $ | 7,309 | 0.1 | % | ||||
| Consolidated capital ratios | ||||||||||||
| Equity to assets | 9.64 | % | 9.67 | % | -0.03 | % | ||||||
| Tangible equity to tangible assets(1) | 8.27 | % | 8.31 | % | -0.04 | % | ||||||
| Share data | ||||||||||||
| Outstanding shares | 64,577 | 64,580 | (3 | ) | -0.0 | % | ||||||
| Book value per share | $ | 11.55 | $ | 11.58 | $ | (0.03 | ) | -0.3 | % | |||
| Tangible book value per share(2) | $ | 9.77 | $ | 9.80 | $ | (0.03 | ) | -0.3 | % | |||
_________________________
| (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 Ended | Variance or Change | Variance or Change Pct. | |||||||||
| June 30, 2025 | March 31, 2025 | |||||||||||
| Interest income | ||||||||||||
| Loans | $ | 66,485 | $ | 64,768 | $ | 1,717 | 2.7 | % | ||||
| Taxable investment securities | 12,322 | 12,738 | (416 | ) | -3.3 | % | ||||||
| Tax-exempt investment securities | 49 | 55 | (6 | ) | -10.9 | % | ||||||
| Other interest-earning assets | 1,549 | 1,773 | (224 | ) | -12.6 | % | ||||||
| Total interest income | 80,405 | 79,334 | 1,071 | 1.3 | % | |||||||
| Interest expense | ||||||||||||
| Deposits | 33,607 | 34,912 | (1,305 | ) | -3.7 | % | ||||||
| Borrowings | 10,955 | 10,380 | 575 | 5.5 | % | |||||||
| Total interest expense | 44,562 | 45,292 | (730 | ) | -1.6 | % | ||||||
| Net interest income | 35,843 | 34,042 | 1,801 | 5.3 | % | |||||||
| Provision for credit losses | 1,785 | 366 | 1,419 | 387.7 | % | |||||||
| Net interest income after provision for credit losses | 34,058 | 33,676 | 382 | 1.1 | % | |||||||
| Non-interest income | ||||||||||||
| Fees and service charges | 655 | 573 | 82 | 14.3 | % | |||||||
| Gain on sale of loans | 190 | 112 | 78 | 69.6 | % | |||||||
| Income from bank owned life insurance | 2,869 | 2,617 | 252 | 9.6 | % | |||||||
| Electronic banking fees and charges | 442 | 391 | 51 | 13.0 | % | |||||||
| Other income | 835 | 869 | (34 | ) | -3.9 | % | ||||||
| Total non-interest income | 4,991 | 4,562 | 429 | 9.4 | % | |||||||
| Non-interest expense | ||||||||||||
| Salaries and employee benefits | 18,093 | 17,700 | 393 | 2.2 | % | |||||||
| Net occupancy expense of premises | 2,820 | 3,075 | (255 | ) | -8.3 | % | ||||||
| Equipment and systems | 4,030 | 3,921 | 109 | 2.8 | % | |||||||
| Advertising and marketing | 615 | 609 | 6 | 1.0 | % | |||||||
| Federal deposit insurance premium | 1,395 | 1,450 | (55 | ) | -3.8 | % | ||||||
| Directors' compensation | 307 | 326 | (19 | ) | -5.8 | % | ||||||
| Other expense | 3,633 | 3,309 | 324 | 9.8 | % | |||||||
| Total non-interest expense | 30,893 | 30,390 | 503 | 1.7 | % | |||||||
| Income before income taxes | 8,156 | 7,848 | 308 | 3.9 | % | |||||||
| Income taxes | 1,387 | 1,200 | 187 | 15.6 | % | |||||||
| Net income | $ | 6,769 | $ | 6,648 | $ | 121 | 1.8 | % | ||||
| Net income per common share (EPS) | ||||||||||||
| Basic | $ | 0.11 | $ | 0.11 | $ | — | ||||||
| Diluted | $ | 0.11 | $ | 0.11 | $ | — | ||||||
| Dividends declared | ||||||||||||
| Cash dividends declared per common share | $ | 0.11 | $ | 0.11 | $ | — | ||||||
| Cash dividends declared | $ | 6,946 | $ | 6,933 | $ | 13 | ||||||
| Dividend payout ratio | 102.6 | % | 104.3 | % | -1.7 | % | ||||||
| Weighted average number of common shares outstanding | ||||||||||||
| Basic | 62,597 | 62,548 | 49 | |||||||||
| Diluted | 62,755 | 62,713 | 42 | |||||||||
| Kearny Financial Corp. Average Balance Sheet Data (Unaudited) | ||||||||||||
| (Dollars in Thousands) | Three Months Ended | Variance or Change | Variance or Change Pct. | |||||||||
| June 30, 2025 | March 31, 2025 | |||||||||||
| Assets | ||||||||||||
| Interest-earning assets: | ||||||||||||
| Loans receivable, including loans held for sale | $ | 5,830,421 | $ | 5,805,045 | $ | 25,376 | 0.4 | % | ||||
| Taxable investment securities | 1,227,825 | 1,251,612 | (23,787 | ) | -1.9 | % | ||||||
| Tax-exempt investment securities | 8,039 | 9,135 | (1,096 | ) | -12.0 | % | ||||||
| Other interest-earning assets | 117,622 | 110,736 | 6,886 | 6.2 | % | |||||||
| Total interest-earning assets | 7,183,907 | 7,176,528 | 7,379 | 0.1 | % | |||||||
| Non-interest-earning assets | 454,975 | 457,206 | (2,231 | ) | -0.5 | % | ||||||
| Total assets | $ | 7,638,882 | $ | 7,633,734 | $ | 5,148 | 0.1 | % | ||||
| Liabilities and Stockholders' Equity | ||||||||||||
| Interest-bearing liabilities: | ||||||||||||
| Deposits: | ||||||||||||
| Interest-bearing demand | $ | 2,342,523 | $ | 2,405,974 | $ | (63,451 | ) | -2.6 | % | |||
| Savings | 754,192 | 751,243 | 2,949 | 0.4 | % | |||||||
| Certificates of deposit (retail) | 1,215,661 | 1,215,767 | (106 | ) | -0.0 | % | ||||||
| Certificates of deposit (brokered) | 744,345 | 730,612 | 13,733 | 1.9 | % | |||||||
| Total interest-bearing deposits | 5,056,721 | 5,103,596 | (46,875 | ) | -0.9 | % | ||||||
| Borrowings: | ||||||||||||
| Federal Home Loan Bank advances | 1,083,902 | 1,028,958 | 54,944 | 5.3 | % | |||||||
| Other borrowings | 107,582 | 93,389 | 14,193 | 15.2 | % | |||||||
| Total borrowings | 1,191,484 | 1,122,347 | 69,137 | 6.2 | % | |||||||
| Total interest-bearing liabilities | 6,248,205 | 6,225,943 | 22,262 | 0.4 | % | |||||||
| Non-interest-bearing liabilities: | ||||||||||||
| Non-interest-bearing deposits | 582,085 | 602,647 | (20,562 | ) | -3.4 | % | ||||||
| Other non-interest-bearing liabilities | 64,405 | 59,919 | 4,486 | 7.5 | % | |||||||
| Total non-interest-bearing liabilities | 646,490 | 662,566 | (16,076 | ) | -2.4 | % | ||||||
| Total liabilities | 6,894,695 | 6,888,509 | 6,186 | 0.1 | % | |||||||
| Stockholders' equity | 744,187 | 745,225 | (1,038 | ) | -0.1 | % | ||||||
| Total liabilities and stockholders' equity | $ | 7,638,882 | $ | 7,633,734 | $ | 5,148 | 0.1 | % | ||||
| Average interest-earning assets to average interest-bearing liabilities | 114.98 | % | 115.27 | % | -0.29 | % | -0.3 | % | ||||
| Kearny Financial Corp. Performance Ratio Highlights (Unaudited) | |||||||||
| Three Months Ended | Variance or Change | ||||||||
| June 30, 2025 | March 31, 2025 | ||||||||
| Average yield on interest-earning assets: | |||||||||
| Loans receivable, including loans held for sale | 4.56 | % | 4.46 | % | 0.10 | % | |||
| Taxable investment securities | 4.01 | % | 4.07 | % | -0.06 | % | |||
| Tax-exempt investment securities(1) | 2.43 | % | 2.43 | % | — | % | |||
| Other interest-earning assets | 5.27 | % | 6.40 | % | -1.13 | % | |||
| Total interest-earning assets | 4.48 | % | 4.42 | % | 0.06 | % | |||
| Average cost of interest-bearing liabilities: | |||||||||
| Deposits: | |||||||||
| Interest-bearing demand | 2.63 | % | 2.73 | % | -0.10 | % | |||
| Savings | 1.33 | % | 1.30 | % | 0.03 | % | |||
| Certificates of deposit (retail) | 3.56 | % | 3.73 | % | -0.17 | % | |||
| Certificates of deposit (brokered) | 2.62 | % | 2.58 | % | 0.04 | % | |||
| Total interest-bearing deposits | 2.66 | % | 2.74 | % | -0.08 | % | |||
| Borrowings: | |||||||||
| Federal Home Loan Bank advances | 3.60 | % | 3.63 | % | -0.03 | % | |||
| Other borrowings | 4.45 | % | 4.41 | % | 0.04 | % | |||
| Total borrowings | 3.68 | % | 3.70 | % | -0.02 | % | |||
| Total interest-bearing liabilities | 2.85 | % | 2.91 | % | -0.06 | % | |||
| Interest rate spread(2) | 1.62 | % | 1.51 | % | 0.11 | % | |||
| Net interest margin(3) | 2.00 | % | 1.90 | % | 0.10 | % | |||
| Non-interest income to average assets (annualized) | 0.26 | % | 0.24 | % | 0.02 | % | |||
| Non-interest expense to average assets (annualized) | 1.62 | % | 1.59 | % | 0.03 | % | |||
| Efficiency ratio(4) | 75.66 | % | 78.72 | % | -3.06 | % | |||
| Return on average assets (annualized) | 0.35 | % | 0.35 | % | — | % | |||
| Return on average equity (annualized) | 3.64 | % | 3.57 | % | 0.07 | % | |||
| Return on average tangible equity (annualized)(5) | 4.36 | % | 4.28 | % | 0.08 | % | |||
_________________________
| (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. |
| Year-to-Year Comparative Financial Analysis |
| Kearny Financial Corp. Consolidated Balance Sheets | ||||||||||||
| (Dollars and Shares in Thousands, Except Per Share Data) | June 30, 2025 | June 30, 2024 | Variance or Change | Variance or Change Pct. | ||||||||
| (Unaudited) | (Audited) | |||||||||||
| Assets | ||||||||||||
| Cash and cash equivalents | $ | 167,269 | $ | 63,864 | $ | 103,405 | 161.9 | % | ||||
| Securities available for sale | 1,012,969 | 1,072,833 | (59,864 | ) | -5.6 | % | ||||||
| Securities held to maturity | 120,217 | 135,742 | (15,525 | ) | -11.4 | % | ||||||
| Loans held-for-sale | 5,931 | 6,036 | (105 | ) | -1.7 | % | ||||||
| Loans receivable | 5,812,937 | 5,732,787 | 80,150 | 1.4 | % | |||||||
| Less: allowance for credit losses on loans | (46,191 | ) | (44,939 | ) | 1,252 | 2.8 | % | |||||
| Net loans receivable | 5,766,746 | 5,687,848 | 78,898 | 1.4 | % | |||||||
| Premises and equipment | 43,897 | 44,940 | (1,043 | ) | -2.3 | % | ||||||
| Federal Home Loan Bank of New York stock | 64,261 | 80,300 | (16,039 | ) | -20.0 | % | ||||||
| Accrued interest receivable | 28,098 | 29,521 | (1,423 | ) | -4.8 | % | ||||||
| Goodwill | 113,525 | 113,525 | — | — | % | |||||||
| Core deposit intangible | 1,436 | 1,931 | (495 | ) | -25.6 | % | ||||||
| Bank owned life insurance | 304,717 | 297,874 | 6,843 | 2.3 | % | |||||||
| Deferred income tax assets, net | 55,203 | 50,339 | 4,864 | 9.7 | % | |||||||
| Other assets | 56,181 | 98,708 | (42,527 | ) | -43.1 | % | ||||||
| Total assets | $ | 7,740,450 | $ | 7,683,461 | $ | 56,989 | 0.7 | % | ||||
| Liabilities | ||||||||||||
| Deposits: | ||||||||||||
| Non-interest-bearing | $ | 582,045 | $ | 598,366 | $ | (16,321 | ) | -2.7 | % | |||
| Interest-bearing | 5,093,172 | 4,559,757 | 533,415 | 11.7 | % | |||||||
| Total deposits | 5,675,217 | 5,158,123 | 517,094 | 10.0 | % | |||||||
| Borrowings | 1,256,491 | 1,709,789 | (453,298 | ) | -26.5 | % | ||||||
| Advance payments by borrowers for taxes | 19,317 | 17,409 | 1,908 | 11.0 | % | |||||||
| Other liabilities | 43,463 | 44,569 | (1,106 | ) | -2.5 | % | ||||||
| Total liabilities | 6,994,488 | 6,929,890 | 64,598 | 0.9 | % | |||||||
| Stockholders' Equity | ||||||||||||
| Common stock | $ | 646 | $ | 644 | $ | 2 | 0.3 | % | ||||
| Paid-in capital | 494,546 | 493,680 | 866 | 0.2 | % | |||||||
| Retained earnings | 341,744 | 343,326 | (1,582 | ) | -0.5 | % | ||||||
| Unearned ESOP shares | (18,970 | ) | (20,916 | ) | 1,946 | 9.3 | % | |||||
| Accumulated other comprehensive loss | (72,004 | ) | (63,163 | ) | (8,841 | ) | -14.0 | % | ||||
| Total stockholders' equity | 745,962 | 753,571 | (7,609 | ) | -1.0 | % | ||||||
| Total liabilities and stockholders' equity | $ | 7,740,450 | $ | 7,683,461 | $ | 56,989 | 0.7 | % | ||||
| Consolidated capital ratios | ||||||||||||
| Equity to assets | 9.64 | % | 9.81 | % | -0.17 | % | ||||||
| Tangible equity to tangible assets(1) | 8.27 | % | 8.43 | % | -0.16 | % | ||||||
| Share data | ||||||||||||
| Outstanding shares | 64,577 | 64,434 | 143 | 0.2 | % | |||||||
| Book value per share | $ | 11.55 | $ | 11.70 | $ | (0.15 | ) | -1.3 | % | |||
| Tangible book value per share(2) | $ | 9.77 | $ | 9.90 | $ | (0.13 | ) | -1.3 | % | |||
_________________________
| (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 | ||||||||||||
| Year Ended | ||||||||||||
| (Dollars and Shares in Thousands, Except Per Share Data) | June 30, 2025 | June 30, 2024 | Variance or Change | Variance or Change Pct. | ||||||||
| (Unaudited) | (Audited) | |||||||||||
| Interest income | ||||||||||||
| Loans | $ | 262,992 | $ | 256,007 | $ | 6,985 | 2.7 | % | ||||
| Taxable investment securities | 53,247 | 63,313 | (10,066 | ) | -15.9 | % | ||||||
| Tax-exempt investment securities | 234 | 336 | (102 | ) | -30.4 | % | ||||||
| Other interest-earning assets | 8,003 | 9,212 | (1,209 | ) | -13.1 | % | ||||||
| Total Interest Income | 324,476 | 328,868 | (4,392 | ) | -1.3 | % | ||||||
| Interest expense | ||||||||||||
| Deposits | 140,258 | 122,414 | 17,844 | 14.6 | % | |||||||
| Borrowings | 49,275 | 63,860 | (14,585 | ) | -22.8 | % | ||||||
| Total interest expense | 189,533 | 186,274 | 3,259 | 1.7 | % | |||||||
| Net interest income | 134,943 | 142,594 | (7,651 | ) | -5.4 | % | ||||||
| Provision for credit losses | 2,366 | 6,226 | (3,860 | ) | -62.0 | % | ||||||
| Net interest income after provision for credit losses | 132,577 | 136,368 | (3,791 | ) | -2.8 | % | ||||||
| Non-interest income | ||||||||||||
| Fees and service charges | 2,490 | 2,609 | (119 | ) | -4.6 | % | ||||||
| Loss on sale and call of securities | — | (18,135 | ) | 18,135 | 100.0 | % | ||||||
| Gain (loss) on sale of loans | 806 | (282 | ) | 1,088 | 385.8 | % | ||||||
| Loss on sale of real estate owned | — | (974 | ) | 974 | 100.0 | % | ||||||
| Income from bank owned life insurance | 10,672 | 9,076 | 1,596 | 17.6 | % | |||||||
| Electronic banking fees and charges | 1,717 | 2,357 | (640 | ) | -27.2 | % | ||||||
| Other income | 3,367 | 3,356 | 11 | 0.3 | % | |||||||
| Total non-interest income | 19,052 | (1,993 | ) | 21,045 | 1,055.9 | % | ||||||
| Non-interest expense | ||||||||||||
| Salaries and employee benefits | 70,870 | 69,220 | 1,650 | 2.4 | % | |||||||
| Net occupancy expense of premises | 11,524 | 11,033 | 491 | 4.5 | % | |||||||
| Equipment and systems | 15,703 | 15,223 | 480 | 3.2 | % | |||||||
| Advertising and marketing | 1,877 | 1,396 | 481 | 34.5 | % | |||||||
| Federal deposit insurance premium | 5,911 | 5,980 | (69 | ) | -1.2 | % | ||||||
| Directors' compensation | 1,355 | 1,506 | (151 | ) | -10.0 | % | ||||||
| Goodwill Impairment | — | 97,370 | (97,370 | ) | -100.0 | % | ||||||
| Other expense | 13,390 | 13,423 | (33 | ) | -0.2 | % | ||||||
| Total non-interest expense | 120,630 | 215,151 | (94,521 | ) | -43.9 | % | ||||||
| Income (loss) before income taxes | 30,999 | (80,776 | ) | 111,775 | 138.4 | % | ||||||
| Income taxes | 4,924 | 5,891 | (967 | ) | -16.4 | % | ||||||
| Net income (loss) | $ | 26,075 | $ | (86,667 | ) | $ | 112,742 | 130.1 | % | |||
| Net income (loss) per common share (EPS) | ||||||||||||
| Basic | $ | 0.42 | $ | (1.39 | ) | $ | 1.81 | |||||
| Diluted | $ | 0.42 | $ | (1.39 | ) | $ | 1.81 | |||||
| Dividends declared | ||||||||||||
| Cash dividends declared per common share | $ | 0.44 | $ | 0.44 | $ | — | ||||||
| Cash dividends declared | $ | 27,657 | $ | 27,618 | $ | 39 | ||||||
| Dividend payout ratio | 106.1 | % | -31.9 | % | 138 | % | ||||||
| Weighted average number of common shares outstanding | ||||||||||||
| Basic | 62,508 | 62,444 | 64 | |||||||||
| Diluted | 62,716 | 62,444 | 272 | |||||||||
| Kearny Financial Corp. Average Balance Sheet Data (Unaudited) | ||||||||||||
| Year Ended | ||||||||||||
| (Dollars in Thousands) | June 30, 2025 | June 30, 2024 | Variance or Change | Variance or Change Pct. | ||||||||
| Assets | ||||||||||||
| Interest-earning assets: | ||||||||||||
| Loans receivable, including loans held for sale | $ | 5,789,583 | $ | 5,752,496 | $ | 37,087 | 0.6 | % | ||||
| Taxable investment securities | 1,270,262 | 1,438,200 | (167,938 | ) | -11.7 | % | ||||||
| Tax-exempt investment securities | 9,791 | 14,718 | (4,927 | ) | -33.5 | % | ||||||
| Other interest-earning assets | 119,224 | 131,019 | (11,795 | ) | -9.0 | % | ||||||
| Total interest-earning assets | 7,188,860 | 7,336,433 | (147,573 | ) | -2.0 | % | ||||||
| Non-interest-earning assets | 459,986 | 541,859 | (81,873 | ) | -15.1 | % | ||||||
| Total assets | $ | 7,648,846 | $ | 7,878,292 | $ | (229,446 | ) | -2.9 | % | |||
| Liabilities and Stockholders' Equity | ||||||||||||
| Interest-bearing liabilities: | ||||||||||||
| Deposits: | ||||||||||||
| Interest-bearing demand | $ | 2,335,972 | $ | 2,308,893 | $ | 27,079 | 1.2 | % | ||||
| Savings | 721,115 | 662,981 | 58,134 | 8.8 | % | |||||||
| Certificates of deposit (retail) | 1,213,015 | 1,278,535 | (65,520 | ) | -5.1 | % | ||||||
| Certificates of deposit (brokered) | 689,011 | 500,147 | 188,864 | 37.8 | % | |||||||
| Total interest-bearing deposits | 4,959,113 | 4,750,556 | 208,557 | 4.4 | % | |||||||
| Borrowings: | ||||||||||||
| Federal Home Loan Bank Advances | 1,131,662 | 1,458,941 | (327,279 | ) | -22.4 | % | ||||||
| Other borrowings | 149,041 | 184,768 | (35,727 | ) | -19.3 | % | ||||||
| Total borrowings | 1,280,703 | 1,643,709 | (363,006 | ) | -22.1 | % | ||||||
| Total interest-bearing liabilities | 6,239,816 | 6,394,265 | (154,449 | ) | -2.4 | % | ||||||
| Non-interest-bearing liabilities: | ||||||||||||
| Non-interest-bearing deposits | 597,197 | 595,266 | 1,931 | 0.3 | % | |||||||
| Other non-interest-bearing liabilities | 64,831 | 64,444 | 387 | 0.6 | % | |||||||
| Total non-interest-bearing liabilities | 662,028 | 659,710 | 2,318 | 0.4 | % | |||||||
| Total liabilities | 6,901,844 | 7,053,975 | (152,131 | ) | -2.2 | % | ||||||
| Stockholders' equity | 747,002 | 824,317 | (77,315 | ) | -9.4 | % | ||||||
| Total liabilities and stockholders' equity | $ | 7,648,846 | $ | 7,878,292 | $ | (229,446 | ) | -2.9 | % | |||
| Average interest-earning assets to average interest-bearing liabilities | 115.21 | % | 114.73 | % | 0.48 | % | 0.4 | % | ||||
| Kearny Financial Corp. Performance Ratio Highlights (Unaudited) | |||||||||
| Year Ended | |||||||||
| June 30, 2025 | June 30, 2024 | Variance or Change | |||||||
| Average yield on interest-earning assets: | |||||||||
| Loans receivable, including loans held for sale | 4.54 | % | 4.45 | % | 0.09 | % | |||
| Taxable investment securities | 4.19 | % | 4.40 | % | -0.21 | % | |||
| Tax-exempt investment securities(1) | 2.39 | % | 2.28 | % | 0.11 | % | |||
| Other interest-earning assets | 6.71 | % | 7.03 | % | -0.32 | % | |||
| Total interest-earning assets | 4.51 | % | 4.48 | % | 0.03 | % | |||
| Average cost of interest-bearing liabilities: | |||||||||
| Deposits: | |||||||||
| Interest-bearing demand | 2.86 | % | 2.91 | % | -0.05 | % | |||
| Savings | 1.25 | % | 0.50 | % | 0.75 | % | |||
| Certificates of deposit (retail) | 3.87 | % | 3.27 | % | 0.60 | % | |||
| Certificates of deposit (brokered) | 2.54 | % | 2.03 | % | 0.51 | % | |||
| Total interest-bearing deposits | 2.83 | % | 2.58 | % | 0.25 | % | |||
| Borrowings: | |||||||||
| Federal Home Loan Bank Advances | 3.71 | % | 3.70 | % | 0.01 | % | |||
| Other borrowings | 4.87 | % | 5.36 | % | -0.49 | % | |||
| Total borrowings | 3.85 | % | 3.89 | % | -0.04 | % | |||
| Total interest-bearing liabilities | 3.04 | % | 2.91 | % | 0.13 | % | |||
| Interest rate spread(2) | 1.47 | % | 1.57 | % | -0.10 | % | |||
| Net interest margin(3) | 1.88 | % | 1.94 | % | -0.06 | % | |||
| Non-interest income to average assets | 0.25 | % | -0.03 | % | 0.28 | % | |||
| Non-interest expense to average assets | 1.58 | % | 2.73 | % | -1.15 | % | |||
| Efficiency ratio(4) | 78.33 | % | 153.02 | % | -74.69 | % | |||
| Return on average assets | 0.34 | % | -1.10 | % | 1.44 | % | |||
| Return on average equity | 3.49 | % | -10.51 | % | 14.00 | % | |||
| Return on average tangible equity(5) | 4.18 | % | -13.64 | % | 17.82 | % | |||
_________________________
| (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) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | ||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||
| Assets | |||||||||||||||
| Cash and cash equivalents | $ | 167,269 | $ | 126,095 | $ | 141,554 | $ | 155,574 | $ | 63,864 | |||||
| Securities available for sale | 1,012,969 | 1,003,393 | 1,018,279 | 1,070,811 | 1,072,833 | ||||||||||
| Securities held to maturity | 120,217 | 124,859 | 127,266 | 132,256 | 135,742 | ||||||||||
| Loans held-for-sale | 5,931 | 6,187 | 5,695 | 8,866 | 6,036 | ||||||||||
| Loans receivable | 5,812,937 | 5,846,175 | 5,791,758 | 5,784,246 | 5,732,787 | ||||||||||
| Less: allowance for credit losses on loans | (46,191 | ) | (44,455 | ) | (44,457 | ) | (44,923 | ) | (44,939 | ) | |||||
| Net loans receivable | 5,766,746 | 5,801,720 | 5,747,301 | 5,739,323 | 5,687,848 | ||||||||||
| Premises and equipment | 43,897 | 44,192 | 45,127 | 45,189 | 44,940 | ||||||||||
| Federal Home Loan Bank stock | 64,261 | 62,261 | 64,443 | 57,706 | 80,300 | ||||||||||
| Accrued interest receivable | 28,098 | 28,521 | 27,772 | 29,467 | 29,521 | ||||||||||
| Goodwill | 113,525 | 113,525 | 113,525 | 113,525 | 113,525 | ||||||||||
| Core deposit intangible | 1,436 | 1,554 | 1,679 | 1,805 | 1,931 | ||||||||||
| Bank owned life insurance | 304,717 | 303,629 | 301,339 | 300,186 | 297,874 | ||||||||||
| Deferred income taxes, net | 55,203 | 52,913 | 53,325 | 50,131 | 50,339 | ||||||||||
| Other assets | 56,181 | 64,292 | 84,080 | 67,540 | 98,708 | ||||||||||
| Total assets | $ | 7,740,450 | $ | 7,733,141 | $ | 7,731,385 | $ | 7,772,379 | $ | 7,683,461 | |||||
| Liabilities | |||||||||||||||
| Deposits: | |||||||||||||||
| Non-interest-bearing | $ | 582,045 | $ | 587,118 | $ | 601,510 | $ | 592,099 | $ | 598,366 | |||||
| Interest-bearing | 5,093,172 | 5,120,230 | 5,069,550 | 4,878,413 | 4,559,757 | ||||||||||
| Total deposits | 5,675,217 | 5,707,348 | 5,671,060 | 5,470,512 | 5,158,123 | ||||||||||
| Borrowings | 1,256,491 | 1,213,976 | 1,258,949 | 1,479,888 | 1,709,789 | ||||||||||
| Advance payments by borrowers for taxes | 19,317 | 19,981 | 17,986 | 17,824 | 17,409 | ||||||||||
| Other liabilities | 43,463 | 43,723 | 38,537 | 52,618 | 44,569 | ||||||||||
| Total liabilities | 6,994,488 | 6,985,028 | 6,986,532 | 7,020,842 | 6,929,890 | ||||||||||
| Stockholders' Equity | |||||||||||||||
| Common stock | 646 | 646 | 646 | 646 | 644 | ||||||||||
| Paid-in capital | 494,546 | 494,131 | 494,092 | 493,523 | 493,680 | ||||||||||
| Retained earnings | 341,744 | 341,921 | 342,155 | 342,522 | 343,326 | ||||||||||
| Unearned ESOP shares | (18,970 | ) | (19,457 | ) | (19,943 | ) | (20,430 | ) | (20,916 | ) | |||||
| Accumulated other comprehensive loss | (72,004 | ) | (69,128 | ) | (72,097 | ) | (64,724 | ) | (63,163 | ) | |||||
| Total stockholders' equity | 745,962 | 748,113 | 744,853 | 751,537 | 753,571 | ||||||||||
| Total liabilities and stockholders' equity | $ | 7,740,450 | $ | 7,733,141 | $ | 7,731,385 | $ | 7,772,379 | $ | 7,683,461 | |||||
| Consolidated capital ratios | |||||||||||||||
| Equity to assets | 9.64 | % | 9.67 | % | 9.63 | % | 9.67 | % | 9.81 | % | |||||
| Tangible equity to tangible assets(1) | 8.27 | % | 8.31 | % | 8.27 | % | 8.31 | % | 8.43 | % | |||||
| Share data | |||||||||||||||
| Outstanding shares | 64,577 | 64,580 | 64,580 | 64,580 | 64,434 | ||||||||||
| Book value per share | $ | 11.55 | $ | 11.58 | $ | 11.53 | $ | 11.64 | $ | 11.70 | |||||
| Tangible book value per share(2) | $ | 9.77 | $ | 9.80 | $ | 9.75 | $ | 9.85 | $ | 9.90 | |||||
_________________________
| (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) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | ||||||||||
| Loan portfolio composition: | |||||||||||||||
| Commercial loans: | |||||||||||||||
| Multi-family mortgage | $ | 2,709,654 | $ | 2,733,406 | $ | 2,722,623 | $ | 2,646,187 | $ | 2,645,851 | |||||
| Nonresidential mortgage | 986,556 | 988,074 | 950,194 | 950,771 | 948,075 | ||||||||||
| Commercial business | 138,755 | 140,224 | 135,740 | 145,984 | 142,747 | ||||||||||
| Construction | 177,713 | 174,722 | 176,704 | 227,327 | 209,237 | ||||||||||
| Total commercial loans | 4,012,678 | 4,036,426 | 3,985,261 | 3,970,269 | 3,945,910 | ||||||||||
| One- to four-family residential mortgage | 1,748,591 | 1,761,465 | 1,765,160 | 1,768,230 | 1,756,051 | ||||||||||
| Consumer loans: | |||||||||||||||
| Home equity loans | 50,737 | 49,699 | 47,101 | 44,741 | 44,104 | ||||||||||
| Other consumer | 2,533 | 2,859 | 2,778 | 2,965 | 2,685 | ||||||||||
| Total consumer loans | 53,270 | 52,558 | 49,879 | 47,706 | 46,789 | ||||||||||
| Total loans, excluding yield adjustments | 5,814,539 | 5,850,449 | 5,800,300 | 5,786,205 | 5,748,750 | ||||||||||
| Unaccreted yield adjustments | (1,602 | ) | (4,274 | ) | (8,542 | ) | (1,959 | ) | (15,963 | ) | |||||
| Loans receivable, net of yield adjustments | 5,812,937 | 5,846,175 | 5,791,758 | 5,784,246 | 5,732,787 | ||||||||||
| Less: allowance for credit losses on loans | (46,191 | ) | (44,455 | ) | (44,457 | ) | (44,923 | ) | (44,939 | ) | |||||
| Net loans receivable | $ | 5,766,746 | $ | 5,801,720 | $ | 5,747,301 | $ | 5,739,323 | $ | 5,687,848 | |||||
| Asset quality: | |||||||||||||||
| Nonperforming assets: | |||||||||||||||
| Accruing loans - 90 days and over past due | $ | — | $ | — | $ | — | $ | — | $ | — | |||||
| Nonaccrual loans | 45,597 | 37,683 | 37,697 | 39,854 | 39,882 | ||||||||||
| Total nonperforming loans | 45,597 | 37,683 | 37,697 | 39,854 | 39,882 | ||||||||||
| Nonaccrual loans held-for-sale | — | — | — | — | — | ||||||||||
| Other real estate owned | — | — | — | — | — | ||||||||||
| Total nonperforming assets | $ | 45,597 | $ | 37,683 | $ | 37,697 | $ | 39,854 | $ | 39,882 | |||||
| Nonperforming loans (% total loans) | 0.78 | % | 0.64 | % | 0.65 | % | 0.69 | % | 0.70 | % | |||||
| Nonperforming assets (% total assets) | 0.59 | % | 0.49 | % | 0.49 | % | 0.51 | % | 0.52 | % | |||||
| Classified loans | $ | 133,451 | $ | 125,790 | $ | 132,216 | $ | 119,534 | $ | 118,700 | |||||
| Allowance for credit losses on loans (ACL): | |||||||||||||||
| ACL to total loans | 0.79 | % | 0.76 | % | 0.77 | % | 0.78 | % | 0.78 | % | |||||
| ACL to nonperforming loans | 101.30 | % | 117.97 | % | 117.93 | % | 112.72 | % | 112.68 | % | |||||
| Net charge-offs | $ | 49 | $ | 368 | $ | 573 | $ | 124 | $ | 3,518 | |||||
| Average net charge-off rate (annualized) | 0.00 | % | 0.03 | % | 0.04 | % | 0.01 | % | 0.25 | % | |||||
| Kearny Financial Corp. Supplemental Balance Sheet Highlights (Unaudited) | |||||||||||||||
| (Dollars in Thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | ||||||||||
| Funding composition: | |||||||||||||||
| Deposits: | |||||||||||||||
| Non-interest-bearing deposits | $ | 582,045 | $ | 587,118 | $ | 601,510 | $ | 592,099 | $ | 598,367 | |||||
| Interest-bearing demand | 2,362,222 | 2,410,925 | 2,380,408 | 2,247,685 | 2,308,915 | ||||||||||
| Savings | 754,376 | 758,239 | 742,266 | 681,709 | 643,481 | ||||||||||
| Certificates of deposit (retail) | 1,218,920 | 1,218,479 | 1,213,887 | 1,215,746 | 1,199,127 | ||||||||||
| Certificates of deposit (brokered) | 757,654 | 732,587 | 732,989 | 733,273 | 408,234 | ||||||||||
| Interest-bearing deposits | 5,093,172 | 5,120,230 | 5,069,550 | 4,878,413 | 4,559,757 | ||||||||||
| Total deposits | 5,675,217 | 5,707,348 | 5,671,060 | 5,470,512 | 5,158,124 | ||||||||||
| Borrowings: | |||||||||||||||
| Federal Home Loan Bank advances | 1,106,491 | 1,028,976 | 1,028,949 | 1,209,888 | 1,534,789 | ||||||||||
| Overnight borrowings | 150,000 | 185,000 | 230,000 | 270,000 | 175,000 | ||||||||||
| Total borrowings | 1,256,491 | 1,213,976 | 1,258,949 | 1,479,888 | 1,709,789 | ||||||||||
| Total funding | $ | 6,931,708 | $ | 6,921,324 | $ | 6,930,009 | $ | 6,950,400 | $ | 6,867,913 | |||||
| Loans as a % of deposits | 101.7 | % | 101.8 | % | 101.4 | % | 105.1 | % | 110.4 | % | |||||
| Deposits as a % of total funding | 81.9 | % | 82.5 | % | 81.8 | % | 78.7 | % | 75.1 | % | |||||
| Borrowings as a % of total funding | 18.1 | % | 17.5 | % | 18.2 | % | 21.3 | % | 24.9 | % | |||||
| Uninsured deposits: | |||||||||||||||
| Uninsured deposits (reported)(1) | $ | 1,989,095 | $ | 1,959,070 | $ | 1,935,607 | $ | 1,799,726 | $ | 1,772,623 | |||||
| Uninsured deposits (adjusted)(2) | $ | 813,780 | $ | 799,238 | $ | 797,721 | $ | 773,375 | $ | 764,447 | |||||
________________________
| (1) | Uninsured deposits of Kearny Bank. | |
| (2) | Uninsured deposits of Kearny Bank adjusted to exclude deposits of its wholly-owned subsidiary and its 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) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | ||||||||||
| Interest income | |||||||||||||||
| Loans | $ | 66,485 | $ | 64,768 | $ | 65,408 | $ | 66,331 | $ | 65,819 | |||||
| Taxable investment securities | 12,322 | 12,738 | 13,803 | 14,384 | 14,802 | ||||||||||
| Tax-exempt investment securities | 49 | 55 | 59 | 71 | 80 | ||||||||||
| Other interest-earning assets | 1,549 | 1,773 | 2,215 | 2,466 | 2,289 | ||||||||||
| Total interest income | 80,405 | 79,334 | 81,485 | 83,252 | 82,990 | ||||||||||
| Interest expense | |||||||||||||||
| Deposits | 33,607 | 34,912 | 36,721 | 35,018 | 32,187 | ||||||||||
| Borrowings | 10,955 | 10,380 | 12,152 | 15,788 | 17,527 | ||||||||||
| Total interest expense | 44,562 | 45,292 | 48,873 | 50,806 | 49,714 | ||||||||||
| Net interest income | 35,843 | 34,042 | 32,612 | 32,446 | 33,276 | ||||||||||
| Provision for credit losses | 1,785 | 366 | 107 | 108 | 3,527 | ||||||||||
| Net interest income after provision for credit losses | 34,058 | 33,676 | 32,505 | 32,338 | 29,749 | ||||||||||
| Non-interest income | |||||||||||||||
| Fees and service charges | 655 | 573 | 627 | 635 | 580 | ||||||||||
| Gain on sale of loans | 190 | 112 | 304 | 200 | 111 | ||||||||||
| Income from bank owned life insurance | 2,869 | 2,617 | 2,619 | 2,567 | 3,209 | ||||||||||
| Electronic banking fees and charges | 442 | 391 | 493 | 391 | 1,130 | ||||||||||
| Other income | 835 | 869 | 830 | 833 | 776 | ||||||||||
| Total non-interest income | 4,991 | 4,562 | 4,873 | 4,626 | 5,806 | ||||||||||
| Non-interest expense | |||||||||||||||
| Salaries and employee benefits | 18,093 | 17,700 | 17,579 | 17,498 | 17,266 | ||||||||||
| Net occupancy expense of premises | 2,820 | 3,075 | 2,831 | 2,798 | 2,738 | ||||||||||
| Equipment and systems | 4,030 | 3,921 | 3,892 | 3,860 | 3,785 | ||||||||||
| Advertising and marketing | 615 | 609 | 311 | 342 | 480 | ||||||||||
| Federal deposit insurance premium | 1,395 | 1,450 | 1,503 | 1,563 | 1,532 | ||||||||||
| Directors' compensation | 307 | 326 | 361 | 361 | 360 | ||||||||||
| Goodwill impairment | — | — | — | — | 97,370 | ||||||||||
| Other expense | 3,633 | 3,309 | 3,084 | 3,364 | 3,020 | ||||||||||
| Total non-interest expense | 30,893 | 30,390 | 29,561 | 29,786 | 126,551 | ||||||||||
| Income (loss) before income taxes | 8,156 | 7,848 | 7,817 | 7,178 | (90,996 | ) | |||||||||
| Income taxes | 1,387 | 1,200 | 1,251 | 1,086 | (917 | ) | |||||||||
| Net income (loss) | $ | 6,769 | $ | 6,648 | $ | 6,566 | $ | 6,092 | $ | (90,079 | ) | ||||
| Net income (loss) per common share (EPS) | |||||||||||||||
| Basic | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.10 | $ | (1.45 | ) | ||||
| Diluted | $ | 0.11 | $ | 0.11 | $ | 0.10 | $ | 0.10 | $ | (1.45 | ) | ||||
| Dividends declared | |||||||||||||||
| Cash dividends declared per common share | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.11 | |||||
| Cash dividends declared | $ | 6,946 | $ | 6,933 | $ | 6,933 | $ | 6,896 | $ | 6,903 | |||||
| Dividend payout ratio | 102.6 | % | 104.3 | % | 105.6 | % | 113.2 | % | -7.7 | % | |||||
| Weighted average number of common shares outstanding | |||||||||||||||
| Basic | 62,597 | 62,548 | 62,443 | 62,389 | 62,254 | ||||||||||
| Diluted | 62,755 | 62,713 | 62,576 | 62,420 | 62,330 | ||||||||||
| Kearny Financial Corp. Average Balance Sheet Data (Unaudited) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| (Dollars in Thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | ||||||||||
| Assets | |||||||||||||||
| Interest-earning assets: | |||||||||||||||
| Loans receivable, including loans held-for-sale | $ | 5,830,421 | $ | 5,805,045 | $ | 5,762,053 | $ | 5,761,593 | $ | 5,743,008 | |||||
| Taxable investment securities | 1,227,825 | 1,251,612 | 1,285,800 | 1,314,945 | 1,343,541 | ||||||||||
| Tax-exempt investment securities | 8,039 | 9,135 | 9,711 | 12,244 | 13,737 | ||||||||||
| Other interest-earning assets | 117,622 | 110,736 | 116,354 | 131,981 | 128,257 | ||||||||||
| Total interest-earning assets | 7,183,907 | 7,176,528 | 7,173,918 | 7,220,763 | 7,228,543 | ||||||||||
| Non-interest-earning assets | 454,975 | 457,206 | 459,982 | 467,670 | 466,537 | ||||||||||
| Total assets | $ | 7,638,882 | $ | 7,633,734 | $ | 7,633,900 | $ | 7,688,433 | $ | 7,695,080 | |||||
| Liabilities and Stockholders' Equity | |||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||
| Deposits: | |||||||||||||||
| Interest-bearing demand | $ | 2,342,523 | $ | 2,405,974 | $ | 2,314,378 | $ | 2,282,608 | $ | 2,310,521 | |||||
| Savings | 754,192 | 751,243 | 711,801 | 668,240 | 631,622 | ||||||||||
| Certificates of deposit (retail) | 1,215,661 | 1,215,767 | 1,216,948 | 1,203,770 | 1,208,101 | ||||||||||
| Certificates of deposit (brokered) | 744,345 | 730,612 | 730,773 | 551,819 | 405,697 | ||||||||||
| Total interest-bearing deposits | 5,056,721 | 5,103,596 | 4,973,900 | 4,706,437 | 4,555,941 | ||||||||||
| Borrowings: | |||||||||||||||
| Federal Home Loan Bank advances | 1,083,902 | 1,028,958 | 1,085,455 | 1,325,583 | 1,507,192 | ||||||||||
| Other borrowings | 107,582 | 93,389 | 156,522 | 237,011 | 228,461 | ||||||||||
| Total borrowings | 1,191,484 | 1,122,347 | 1,241,977 | 1,562,594 | 1,735,653 | ||||||||||
| Total interest-bearing liabilities | 6,248,205 | 6,225,943 | 6,215,877 | 6,269,031 | 6,291,594 | ||||||||||
| Non-interest-bearing liabilities: | |||||||||||||||
| Non-interest-bearing deposits | 582,085 | 602,647 | 604,915 | 599,095 | 589,438 | ||||||||||
| Other non-interest-bearing liabilities | 64,405 | 59,919 | 65,258 | 69,629 | 62,978 | ||||||||||
| Total non-interest-bearing liabilities | 646,490 | 662,566 | 670,173 | 668,724 | 652,416 | ||||||||||
| Total liabilities | 6,894,695 | 6,888,509 | 6,886,050 | 6,937,755 | 6,944,010 | ||||||||||
| Stockholders' equity | 744,187 | 745,225 | 747,850 | 750,678 | 751,070 | ||||||||||
| Total liabilities and stockholders' equity | $ | 7,638,882 | $ | 7,633,734 | $ | 7,633,900 | $ | 7,688,433 | $ | 7,695,080 | |||||
| Average interest-earning assets to average interest-bearing liabilities | 114.98 | % | 115.27 | % | 115.41 | % | 115.18 | % | 114.89 | % | |||||
| Kearny Financial Corp. Performance Ratio Highlights | |||||||||||||||
| Three Months Ended | |||||||||||||||
| June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||||||||
| Average yield on interest-earning assets: | |||||||||||||||
| Loans receivable, including loans held-for-sale | 4.56 | % | 4.46 | % | 4.54 | % | 4.61 | % | 4.58 | % | |||||
| Taxable investment securities | 4.01 | % | 4.07 | % | 4.29 | % | 4.38 | % | 4.41 | % | |||||
| Tax-exempt investment securities(1) | 2.43 | % | 2.43 | % | 2.42 | % | 2.32 | % | 2.32 | % | |||||
| Other interest-earning assets | 5.27 | % | 6.40 | % | 7.62 | % | 7.47 | % | 7.14 | % | |||||
| Total interest-earning assets | 4.48 | % | 4.42 | % | 4.54 | % | 4.61 | % | 4.59 | % | |||||
| Average cost of interest-bearing liabilities: | |||||||||||||||
| Deposits: | |||||||||||||||
| Interest-bearing demand | 2.63 | % | 2.73 | % | 2.96 | % | 3.13 | % | 3.06 | % | |||||
| Savings | 1.33 | % | 1.30 | % | 1.29 | % | 1.05 | % | 0.63 | % | |||||
| Certificates of deposit (retail) | 3.56 | % | 3.73 | % | 4.06 | % | 4.12 | % | 3.95 | % | |||||
| Certificates of deposit (brokered) | 2.62 | % | 2.58 | % | 2.70 | % | 2.18 | % | 1.59 | % | |||||
| Total interest-bearing deposits | 2.66 | % | 2.74 | % | 2.95 | % | 2.98 | % | 2.83 | % | |||||
| Borrowings: | |||||||||||||||
| Federal Home Loan Bank advances | 3.60 | % | 3.63 | % | 3.78 | % | 3.82 | % | 3.86 | % | |||||
| Other borrowings | 4.45 | % | 4.41 | % | 4.88 | % | 5.28 | % | 5.24 | % | |||||
| Total borrowings | 3.68 | % | 3.70 | % | 3.91 | % | 4.04 | % | 4.04 | % | |||||
| Total interest-bearing liabilities | 2.85 | % | 2.91 | % | 3.15 | % | 3.24 | % | 3.16 | % | |||||
| Interest rate spread(2) | 1.62 | % | 1.51 | % | 1.39 | % | 1.37 | % | 1.43 | % | |||||
| Net interest margin(3) | 2.00 | % | 1.90 | % | 1.82 | % | 1.80 | % | 1.84 | % | |||||
| Non-interest income to average assets (annualized) | 0.26 | % | 0.24 | % | 0.26 | % | 0.24 | % | 0.30 | % | |||||
| Non-interest expense to average assets (annualized) | 1.62 | % | 1.59 | % | 1.55 | % | 1.55 | % | 6.58 | % | |||||
| Efficiency ratio(4) | 75.66 | % | 78.72 | % | 78.86 | % | 80.35 | % | 323.81 | % | |||||
| Return on average assets (annualized) | 0.35 | % | 0.35 | % | 0.34 | % | 0.32 | % | -4.68 | % | |||||
| Return on average equity (annualized) | 3.64 | % | 3.57 | % | 3.51 | % | 3.25 | % | -47.97 | % | |||||
| Return on average tangible equity (annualized)(5) | 4.36 | % | 4.28 | % | 4.21 | % | 3.89 | % | 3.33 | % | |||||
_________________________
| (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) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | ||||||||||
| Adjusted net income: | |||||||||||||||
| Net income (loss) (GAAP) | $ | 6,769 | $ | 6,648 | $ | 6,566 | $ | 6,092 | $ | (90,079 | ) | ||||
| Non-recurring transactions - net of tax: | |||||||||||||||
| Net effect of bank-owned life insurance restructure | — | — | — | — | 392 | ||||||||||
| Goodwill impairment | — | — | — | — | 95,283 | ||||||||||
| Adjusted net income | $ | 6,769 | $ | 6,648 | $ | 6,566 | $ | 6,092 | $ | 5,596 | |||||
| Calculation of pre-tax, pre-provision net revenue: | |||||||||||||||
| Net income (loss) (GAAP) | $ | 6,769 | $ | 6,648 | $ | 6,566 | $ | 6,092 | $ | (90,079 | ) | ||||
| Adjustments to net income (GAAP): | |||||||||||||||
| Provision for income taxes | 1,387 | 1,200 | 1,251 | 1,086 | (917 | ) | |||||||||
| Provision for credit losses | 1,785 | 366 | 107 | 108 | 3,527 | ||||||||||
| Pre-tax, pre-provision net revenue (non-GAAP) | $ | 9,941 | $ | 8,214 | $ | 7,924 | $ | 7,286 | $ | (87,469 | ) | ||||
| Adjusted earnings per share: | |||||||||||||||
| Weighted average common shares - basic | 62,597 | 62,548 | 62,443 | 62,389 | 62,254 | ||||||||||
| Weighted average common shares - diluted | 62,755 | 62,713 | 62,576 | 62,420 | 62,330 | ||||||||||
| Earnings per share - basic (GAAP) | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.10 | $ | (1.45 | ) | ||||
| Earnings per share - diluted (GAAP) | $ | 0.11 | $ | 0.11 | $ | 0.10 | $ | 0.10 | $ | (1.45 | ) | ||||
| Adjusted earnings per share - basic (non-GAAP) | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.10 | $ | 0.09 | |||||
| Adjusted earnings per share - diluted (non-GAAP) | $ | 0.11 | $ | 0.11 | $ | 0.10 | $ | 0.10 | $ | 0.09 | |||||
| Pre-tax, pre-provision net revenue per share: | |||||||||||||||
| Pre-tax, pre-provision net revenue per share - basic (non-GAAP) | $ | 0.16 | $ | 0.13 | $ | 0.13 | $ | 0.12 | $ | (1.41 | ) | ||||
| Pre-tax, pre-provision net revenue per share - diluted (non-GAAP) | $ | 0.16 | $ | 0.13 | $ | 0.13 | $ | 0.12 | $ | (1.41 | ) | ||||
| Adjusted return on average assets: | |||||||||||||||
| Total average assets | $ | 7,638,882 | $ | 7,633,734 | $ | 7,633,900 | $ | 7,688,433 | $ | 7,695,080 | |||||
| Return on average assets (GAAP) | 0.35 | % | 0.35 | % | 0.34 | % | 0.32 | % | -4.68 | % | |||||
| Adjusted return on average assets (non-GAAP) | 0.35 | % | 0.35 | % | 0.34 | % | 0.32 | % | 0.29 | % | |||||
| Adjusted return on average equity: | |||||||||||||||
| Total average equity | $ | 744,187 | $ | 745,225 | $ | 747,850 | $ | 750,678 | $ | 751,070 | |||||
| Return on average equity (GAAP) | 3.64 | % | 3.57 | % | 3.51 | % | 3.25 | % | -47.97 | % | |||||
| Adjusted return on average equity (non-GAAP) | 3.64 | % | 3.57 | % | 3.51 | % | 3.25 | % | 2.98 | % | |||||
| Kearny Financial Corp. Reconciliation of GAAP to Non-GAAP (Unaudited) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| (Dollars and Shares in Thousands, Except Per Share Data) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | ||||||||||
| Adjusted return on average tangible equity: | |||||||||||||||
| Total average equity | $ | 744,187 | $ | 745,225 | $ | 747,850 | $ | 750,678 | $ | 751,070 | |||||
| Less: average goodwill | (113,525 | ) | (113,525 | ) | (113,525 | ) | (113,525 | ) | (113,525 | ) | |||||
| Less: average other intangible assets | (1,513 | ) | (1,636 | ) | (1,761 | ) | (1,886 | ) | (2,006 | ) | |||||
| Total average tangible equity | $ | 629,149 | $ | 630,064 | $ | 632,564 | $ | 635,267 | $ | 635,539 | |||||
| Return on average tangible equity (non-GAAP) | 4.36 | % | 4.28 | % | 4.21 | % | 3.89 | % | 3.33 | % | |||||
| Adjusted return on average tangible equity (non-GAAP) | 4.36 | % | 4.28 | % | 4.21 | % | 3.89 | % | 3.58 | % | |||||
| Adjusted non-interest expense ratio: | |||||||||||||||
| Non-interest expense (GAAP) | $ | 30,893 | $ | 30,390 | $ | 29,561 | $ | 29,786 | $ | 126,551 | |||||
| Non-recurring transactions: | |||||||||||||||
| Goodwill impairment | — | — | — | — | (97,370 | ) | |||||||||
| Non-interest expense (non-GAAP) | $ | 30,893 | $ | 30,390 | $ | 29,561 | $ | 29,786 | $ | 29,181 | |||||
| Non-interest expense ratio (GAAP) | 1.62 | % | 1.59 | % | 1.55 | % | 1.55 | % | 6.58 | % | |||||
| Adjusted non-interest expense ratio (non-GAAP) | 1.62 | % | 1.59 | % | 1.55 | % | 1.55 | % | 1.52 | % | |||||
| Adjusted efficiency ratio: | |||||||||||||||
| Non-interest expense (non-GAAP) | $ | 30,893 | $ | 30,390 | $ | 29,561 | $ | 29,786 | $ | 29,181 | |||||
| Net interest income (GAAP) | $ | 35,843 | $ | 34,042 | $ | 32,612 | $ | 32,446 | $ | 33,276 | |||||
| Total non-interest income (GAAP) | 4,991 | 4,562 | 4,873 | 4,626 | 5,806 | ||||||||||
| Non-recurring transactions: | |||||||||||||||
| Net effect of bank-owned life insurance restructure | — | — | — | — | 392 | ||||||||||
| Total revenue (non-GAAP) | $ | 40,834 | $ | 38,604 | $ | 37,485 | $ | 37,072 | $ | 39,474 | |||||
| Efficiency ratio (GAAP) | 75.66 | % | 78.72 | % | 78.86 | % | 80.35 | % | 323.81 | % | |||||
| Adjusted efficiency ratio (non-GAAP) | 75.66 | % | 78.72 | % | 78.86 | % | 80.35 | % | 73.92 | % | |||||
| Kearny Financial Corp. Reconciliation of GAAP to Non-GAAP (Unaudited) | |||||||
| Year Ended | |||||||
| (Dollars and Shares in Thousands, Except Per Share Data) | June 30, 2025 | June 30, 2024 | |||||
| Adjusted net income: | |||||||
| Net income (loss) (GAAP) | $ | 26,075 | $ | (86,667 | ) | ||
| Non-recurring transactions - net of tax: | |||||||
| Net effect of sale and call of securities | — | 12,876 | |||||
| Net effect of bank-owned life insurance contract restructure | — | 6,678 | |||||
| Goodwill impairment | — | 95,283 | |||||
| Adjusted net income | $ | 26,075 | $ | 28,170 | |||
| Calculation of pre-tax, pre-provision net revenue: | |||||||
| Net income (loss) (GAAP) | $ | 26,075 | $ | (86,667 | ) | ||
| Adjustments to net income (GAAP): | |||||||
| Provision for income taxes | 4,924 | 5,891 | |||||
| Provision for credit losses | 2,366 | 6,226 | |||||
| Pre-tax, pre-provision net revenue (non-GAAP) | $ | 33,365 | $ | (74,550 | ) | ||
| Adjusted earnings per share: | |||||||
| Weighted average common shares - basic | 62,508 | 62,444 | |||||
| Weighted average common shares - diluted | 62,716 | 62,444 | |||||
| Earnings per share - basic (GAAP) | $ | 0.42 | $ | (1.39 | ) | ||
| Earnings per share - diluted (GAAP) | $ | 0.42 | $ | (1.39 | ) | ||
| Adjusted earnings per share - basic (non-GAAP) | $ | 0.42 | $ | 0.45 | |||
| Adjusted earnings per share - diluted (non-GAAP) | $ | 0.42 | $ | 0.45 | |||
| Pre-tax, pre-provision net revenue per share: | |||||||
| Pre-tax, pre-provision net revenue per share - basic (non-GAAP) | $ | 0.53 | $ | (1.19 | ) | ||
| Pre-tax, pre-provision net revenue per share - diluted (non-GAAP) | $ | 0.53 | $ | (1.19 | ) | ||
| Adjusted return on average assets: | |||||||
| Total average assets | $ | 7,648,846 | $ | 7,878,292 | |||
| Return on average assets (GAAP) | 0.34 | % | -1.10 | % | |||
| Adjusted return on average assets (non-GAAP) | 0.34 | % | 0.36 | % | |||
| Adjusted return on average equity: | |||||||
| Total average equity | $ | 747,002 | $ | 824,317 | |||
| Return on average equity (GAAP) | 3.49 | % | -10.51 | % | |||
| Adjusted return on average equity (non-GAAP) | 3.49 | % | 3.42 | % | |||
| Adjusted return on average tangible equity: | |||||||
| Total average equity | $ | 747,002 | $ | 824,317 | |||
| Less: average goodwill | (113,525 | ) | (186,685 | ) | |||
| Less: average other intangible assets | (1,700 | ) | (2,209 | ) | |||
| Total average tangible equity | $ | 631,777 | $ | 635,423 | |||
| Return on average tangible equity (non-GAAP) | 4.18 | % | -13.64 | % | |||
| Adjusted return on average tangible equity (non-GAAP) | 4.18 | % | 4.43 | % | |||
| Kearny Financial Corp. Reconciliation of GAAP to Non-GAAP (Unaudited) | |||||||
| Year Ended | |||||||
| (Dollars in Thousands) | June 30, 2025 | June 30, 2024 | |||||
| Adjusted non-interest expense ratio: | |||||||
| Non-interest expense (GAAP) | $ | 120,630 | $ | 215,151 | |||
| Non-routine transactions: | |||||||
| Goodwill impairment | — | (97,370 | ) | ||||
| Non-interest expense (non-GAAP) | $ | 120,630 | $ | 117,781 | |||
| Non-interest expense ratio (GAAP) | 1.58 | % | 2.73 | % | |||
| Adjusted non-interest expense ratio (non-GAAP) | 1.58 | % | 1.50 | % | |||
| Adjusted efficiency ratio: | |||||||
| Non-interest expense (non-GAAP) | $ | 120,630 | $ | 117,781 | |||
| Net interest income (GAAP) | $ | 134,943 | $ | 142,594 | |||
| Total non-interest income (GAAP) | 19,052 | (1,993 | ) | ||||
| Non-routine transactions: | |||||||
| Net effect of sale and call of securities | — | 18,135 | |||||
| Net effect of bank-owned life insurance contract restructure | — | 965 | |||||
| Total revenue (non-GAAP) | $ | 153,995 | $ | 159,701 | |||
| Efficiency ratio (GAAP) | 78.33 | % | 153.02 | % | |||
| Adjusted efficiency ratio (non-GAAP) | 78.33 | % | 73.75 | % | |||
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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