Kearny Financial Corp. Announces Third Quarter Fiscal 2025 Results and Declaration of Cash Dividend
Kearny Financial Corp. (NASDAQ: KRNY) reported Q3 fiscal 2025 net income of $6.6 million, or $0.11 per diluted share, matching the previous quarter's $6.6 million but improving from $0.10 per share. The company declared a quarterly cash dividend of $0.11 per share, payable May 21, 2025.
Key financial metrics include:
- Net interest margin expanded 8 basis points to 1.90%
- Net interest income increased $1.4 million to $34.0 million
- Total assets reached $7.73 billion, up $1.8 million
- Loans receivable grew by $54.4 million to $5.85 billion
- Deposits increased by $36.3 million to $5.71 billion
The bank maintained strong asset quality with non-performing assets at 0.49% of total assets and a tangible equity to tangible assets ratio of 8.31%. Book value per share increased $0.05 to $11.58, while tangible book value per share rose to $9.80.
Kearny Financial Corp. (NASDAQ: KRNY) ha riportato un utile netto di 6,6 milioni di dollari nel terzo trimestre fiscale 2025, pari a 0,11 dollari per azione diluita, confermando i 6,6 milioni del trimestre precedente ma migliorando da 0,10 dollari per azione. La società ha dichiarato un dividendo trimestrale in contanti di 0,11 dollari per azione, pagabile il 21 maggio 2025.
I principali indicatori finanziari includono:
- Il margine di interesse netto è aumentato di 8 punti base raggiungendo l'1,90%
- Il reddito da interessi netto è cresciuto di 1,4 milioni di dollari arrivando a 34,0 milioni
- Gli attivi totali hanno raggiunto 7,73 miliardi di dollari, in aumento di 1,8 milioni
- I prestiti in essere sono aumentati di 54,4 milioni arrivando a 5,85 miliardi
- I depositi sono cresciuti di 36,3 milioni raggiungendo 5,71 miliardi
La banca ha mantenuto una solida qualità degli attivi con attività non performanti pari allo 0,49% del totale attivi e un rapporto tra patrimonio tangibile e attivi tangibili dell'8,31%. Il valore contabile per azione è aumentato di 0,05 dollari a 11,58 dollari, mentre il valore contabile tangibile per azione è salito a 9,80 dollari.
Kearny Financial Corp. (NASDAQ: KRNY) reportó una utilidad neta de 6,6 millones de dólares en el tercer trimestre fiscal de 2025, o 0,11 dólares por acción diluida, igualando los 6,6 millones del trimestre anterior pero mejorando desde 0,10 dólares por acción. La compañía declaró un dividendo trimestral en efectivo de 0,11 dólares por acción, pagadero el 21 de mayo de 2025.
Las métricas financieras clave incluyen:
- El margen neto de interés se amplió 8 puntos básicos hasta 1,90%
- Los ingresos netos por intereses aumentaron 1,4 millones de dólares hasta 34,0 millones
- Los activos totales alcanzaron 7,73 mil millones, un aumento de 1,8 millones
- Los préstamos por cobrar crecieron 54,4 millones hasta 5,85 mil millones
- Los depósitos aumentaron 36,3 millones hasta 5,71 mil millones
El banco mantuvo una sólida calidad de activos con activos no productivos en 0,49% del total de activos y una proporción de capital tangible a activos tangibles del 8,31%. El valor en libros por acción aumentó 0,05 dólares a 11,58 dólares, mientras que el valor tangible en libros por acción subió a 9,80 dólares.
Kearny Financial Corp. (NASDAQ: KRNY)는 2025 회계연도 3분기 순이익으로 660만 달러, 희석 주당 0.11달러를 보고했으며, 이는 이전 분기의 660만 달러와 동일하지만 주당 0.10달러에서 개선된 수치입니다. 회사는 2025년 5월 21일 지급 예정인 주당 0.11달러의 분기 현금 배당금을 선언했습니다.
주요 재무 지표는 다음과 같습니다:
- 순이자마진이 8 베이시스 포인트 상승하여 1.90% 기록
- 순이자수익이 140만 달러 증가하여 3400만 달러 달성
- 총 자산은 77억 3천만 달러로 180만 달러 증가
- 대출채권은 5440만 달러 증가하여 58억 5천만 달러 도달
- 예금은 3630만 달러 증가하여 57억 1천만 달러 기록
은행은 총자산 대비 부실자산 비율 0.49%와 유형자산 대비 유형자본 비율 8.31%로 견고한 자산 건전성을 유지했습니다. 주당 장부 가치는 0.05달러 상승한 11.58달러이며, 주당 유형 장부 가치는 9.80달러로 올랐습니다.
Kearny Financial Corp. (NASDAQ : KRNY) a annoncé un bénéfice net de 6,6 millions de dollars pour le troisième trimestre fiscal 2025, soit 0,11 dollar par action diluée, égalant les 6,6 millions du trimestre précédent mais en hausse par rapport à 0,10 dollar par action. La société a déclaré un dividende trimestriel en espèces de 0,11 dollar par action, payable le 21 mai 2025.
Les principaux indicateurs financiers comprennent :
- La marge nette d’intérêt s’est accrue de 8 points de base pour atteindre 1,90 %
- Le revenu net d’intérêts a augmenté de 1,4 million pour atteindre 34,0 millions
- Le total des actifs a atteint 7,73 milliards, en hausse de 1,8 million
- Les prêts à recevoir ont augmenté de 54,4 millions pour atteindre 5,85 milliards
- Les dépôts ont progressé de 36,3 millions pour atteindre 5,71 milliards
La banque a maintenu une solide qualité d’actifs avec des actifs non performants représentant 0,49 % du total des actifs et un ratio de capitaux tangibles sur actifs tangibles de 8,31 %. La valeur comptable par action a augmenté de 0,05 dollar pour atteindre 11,58 dollars, tandis que la valeur comptable tangible par action a progressé à 9,80 dollars.
Kearny Financial Corp. (NASDAQ: KRNY) meldete im dritten Quartal des Geschäftsjahres 2025 einen Nettogewinn von 6,6 Millionen US-Dollar bzw. 0,11 US-Dollar je verwässerter Aktie, was dem Vorquartal mit 6,6 Millionen entspricht, sich jedoch von 0,10 US-Dollar je Aktie verbessert hat. Das Unternehmen erklärte eine vierteljährliche Bardividende von 0,11 US-Dollar je Aktie, zahlbar am 21. Mai 2025.
Wichtige Finanzkennzahlen umfassen:
- Die Nettozinsmarge stieg um 8 Basispunkte auf 1,90 %
- Der Nettozinsertrag erhöhte sich um 1,4 Millionen auf 34,0 Millionen
- Die Gesamtaktiva erreichten 7,73 Milliarden US-Dollar, ein Anstieg um 1,8 Millionen
- Die ausstehenden Kredite wuchsen um 54,4 Millionen auf 5,85 Milliarden
- Die Einlagen stiegen um 36,3 Millionen auf 5,71 Milliarden
Die Bank hielt eine starke Vermögensqualität mit notleidenden Vermögenswerten von 0,49 % der Gesamtaktiva und einem Verhältnis von materiellen Eigenkapital zu materiellen Vermögenswerten von 8,31 %. Der Buchwert je Aktie stieg um 0,05 US-Dollar auf 11,58 US-Dollar, während der materielle Buchwert je Aktie auf 9,80 US-Dollar zunahm.
- Net interest margin expanded 8 basis points to 1.90%
- Net interest income increased by $1.4 million to $34.0 million
- Loan portfolio grew by $54.4 million (0.9%)
- Deposits increased by $36.3 million (0.6%)
- Book value per share increased $0.05 to $11.58
- Non-interest income decreased by $311,000 (6.4%)
- Non-interest expenses increased by $829,000 (2.8%)
- Provision for credit losses increased to $366,000 from $107,000
- Non-interest bearing deposits decreased by $14.4 million
Insights
Kearny reports stable quarterly earnings with improving interest margin, though dividend payout exceeds current earnings level.
Kearny Financial Corp's Q3 fiscal 2025 results demonstrate modest positive momentum in core banking metrics despite a volatile rate environment. The bank reported net income of $6.6 million ($0.11 per diluted share), matching the prior quarter's income while improving EPS from $0.10 previously.
The most significant positive development was the 8 basis point expansion in net interest margin to 1.90%, driven by deposit growth and a 24 basis point reduction in cost of funds. This improvement generated a $1.4 million increase in net interest income to $34.0 million quarter-over-quarter.
Balance sheet trends showed measured growth with loans increasing 0.9% to $5.85 billion and deposits growing 0.6% to $5.71 billion. This deposit growth enabled a 3.6% reduction in borrowings, effectively replacing higher-cost wholesale funding with more favorable deposit funding.
Asset quality metrics remained stable with non-performing assets holding steady at 0.49% of total assets. The allowance for credit losses was $44.5 million (0.76% of total loans), while net charge-offs were minimal at 0.03% of average loans (annualized).
A notable concern is the dividend payout ratio of 104.3%, indicating the bank is currently distributing more in dividends than it's earning. While manageable short-term given the bank's capital position, this level is mathematically unsustainable long-term without earnings growth.
The bank maintains substantial liquidity with available secured borrowing capacity of $2.42 billion (31.3% of total assets), providing financial flexibility. Book value increased slightly to $11.58 per share, while tangible book value rose to $9.80.
Management's expectation of "continued strong margin expansion" in the upcoming quarter will be crucial for improving earnings to support the current dividend level.
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
The Company also announced that its Board of Directors has declared a quarterly cash dividend of
Craig L. Montanaro, President and Chief Executive Officer, commented, “Quarter over quarter net interest income grew by
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 , or1.5% , from December 31, 2024. - Loans receivable totaled
$5.85 billion at March 31, 2025, an increase of$54.4 million , or0.9% , 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 , or0.6% , 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 , or2.5% . - Borrowings were
$1.21 billion at March 31, 2025, a decrease of$45.0 million , or3.6% , 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 , representing31.3% 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 , or6.4% , 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 t o$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 t o$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 , or2.8% , 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 t o$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 t o$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 t o$609,000. T his 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 of15.3% and16.0% , respectively.
Asset Quality
- The balance of non-performing assets remained steady at
$37.7 million , or0.49% of total assets, at March 31, 2025 and December 31, 2024, respectively. - Net charge-offs totaled
$368,000 , or0.03% of average loans, on an annualized basis, for the quarter ended March 31, 2025, compared to$573,000 , or0.04% 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 , or0.76% of total loans, at March 31, 2025, a decrease of$2,000 from$44.5 million , or0.77% of total loans, at December 31, 2024.
Capital
- For the quarter ended March 31, 2025, book value per share increased
$0.05 , or0.4% , to$11.58 while tangible book value per share increased$0.05 , or0.5% , 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 sale | 4.46 | % | 4.54 | % | -0.08 | % |
| Taxable investment securities | 4.07 | % | 4.29 | % | -0.22 | % |
| Tax-exempt investment securities(1) | 2.43 | % | 2.42 | % | 0.01 | % |
| Other interest-earning assets | 6.40 | % | 7.62 | % | -1.22 | % |
| Total interest-earning assets | 4.42 | % | 4.54 | % | -0.12 | % |
| Average cost of interest-bearing liabilities: | ||||||
| Deposits: | ||||||
| Interest-bearing demand | 2.73 | % | 2.96 | % | -0.23 | % |
| Savings | 1.30 | % | 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 deposits | 2.74 | % | 2.95 | % | -0.21 | % |
| Borrowings: | ||||||
| Federal Home Loan Bank advances | 3.63 | % | 3.78 | % | -0.15 | % |
| Other borrowings | 4.41 | % | 4.88 | % | -0.47 | % |
| Total borrowings | 3.70 | % | 3.91 | % | -0.21 | % |
| Total interest-bearing liabilities | 2.91 | % | 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-sale | 4.46 | % | 4.54 | % | 4.61 | % | 4.58 | % | 4.45 | % |
| Taxable investment securities | 4.07 | % | 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 assets | 6.40 | % | 7.62 | % | 7.47 | % | 7.14 | % | 7.91 | % |
| Total interest-earning assets | 4.42 | % | 4.54 | % | 4.61 | % | 4.59 | % | 4.51 | % |
| Average cost of interest-bearing liabilities: | ||||||||||
| Deposits: | ||||||||||
| Interest-bearing demand | 2.73 | % | 2.96 | % | 3.13 | % | 3.06 | % | 3.08 | % |
| Savings | 1.30 | % | 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 deposits | 2.74 | % | 2.95 | % | 2.98 | % | 2.83 | % | 2.74 | % |
| Borrowings: | ||||||||||
| Federal Home Loan Bank advances | 3.63 | % | 3.78 | % | 3.82 | % | 3.86 | % | 3.55 | % |
| Other borrowings | 4.41 | % | 4.88 | % | 5.28 | % | 5.24 | % | 5.22 | % |
| Total borrowings | 3.70 | % | 3.91 | % | 4.04 | % | 4.04 | % | 3.77 | % |
| Total interest-bearing liabilities | 2.91 | % | 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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