Kearny Financial · NASDAQ:KRNY
Kearny Financial — Q3 2025 Earnings Presentation
19 slides from Kearny Financial's earnings presentation, Apr 24, 2025
Slide 1: Investor Presentation Third Quarter Fiscal 2025
I N V E S T O R P R E S E N TAT I O N THIRD QUARTER FISCAL 2025 AP R IL 24, 2025
Slide 2: Forward Looking Statements & Financial Measures
Forward Looking Statements & Financial Measures This presentation may include certain “forward-looking statements,” which are made in good faith by Kearny Financial Corp. (the “Company”) pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-l
Slide 3: Kearny Financial Corp. Company Overview
Kearny Financial Corp. Company Overview Branch/Office Footprint NASDAQ: KRNY Founded: 1884 Assets: $7.7 billion Loans $5.8 billion Deposits $5.7 billion TBV Per Share: $9.80 Market Cap: $404.3 million1 Company Profile Ranked among the top 10 New Jersey-based financial institutions by assets and depo
Slide 4: 141 Years: Franchise Milestones
Founded Obtained Federal South Bergen Savings Pulaski Bancorp Acquired Kearny, NJ Charter Bank Acquired 2003 1941 1999 1884 141 Years: Franchise Completed First-Step West Essex Bank Central Jersey Bancorp Mutual Conversion Atlas Bank Acquired Acquired Acquired & IPO of $218.2M 2014 Milestones 2004 2
Slide 5: 3Q25 Financial Highlights
3Q25 Financial Highlights Net Income: Reported net income for 3Q 2025 was $6.6 million, or Net Income $0.11 per diluted share. GAAP Adjusted1 $6.6 million $6.6 million Net Interest Margin: Expanded by eight basis points to 1.90% in 3Q Basic/Diluted EPS 2025, driven by growth in loans and deposits, c
Slide 6: Capital Strength
Capital Strength Equity Capitalization Level Regulatory Capital Ratios1,2 15.32% 10.83% 14.48% 14.48% 9.81% 9.67% 9.63% 9.67% 10.00% 9.22% 8.00% 6.50% 8.34% 8.43% 8.31% 8.27% 8.31% 5.00% 2 3Q24 4Q24 1Q25 2Q25 3Q25 Tier 1 Common Equity Tier 1 Risk-Based Total Risk-Based Leverage Tier 1 Capital Capita
Slide 7: Track Record of Strong Credit Performance
Track Record of Strong Credit Performance Net Charge-offs to Average Total Loans Global Hurricane COVID-19 Sandy Cumulative charge-offs for KRNY between Pandemic 2006 and 3Q25 were minimal, totaling $39.7 million. 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2
Slide 8: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Trend Loan Composition1 Construction C&I ($ millions) 3.0% 2.4% CRE 1-4 Family $5,775 $5,749 $5,786 $5,800 $5,850 16.9% 30.1% $951 $950 $988 QTD Yield on $966 $948 Loans 4.46% Home Equity 0.9% $2,645 $2,646 $2,646 $2,723 $2,733 Multi-family 46.7% Geographic Distributi
Slide 9: Multifamily Loan Portfolio
Multifamily Loan Portfolio Multifamily Loan Portfolio Composition1 New York City (“NYC”) Multifamily1 Outside NYC Fully NYC Rent 55.0% Regulated NYC Multifamily Portfolio: $1.2 billion 2.0% Average Loan Balance: $3.47 million Majority NYC Weighted Average LTV: 61.8% Total MF Rent Regulated $2.7B 3.0
Slide 10: CRE Loan Detail
CRE Loan Detail CRE Portfolio by Collateral Type1 CRE Loan Geographic Distribution1 Medical Pennsylvania Retail New York (Ex. 4.1% 4.3% 29.6% Brooklyn) 26.9% Other Specialty & Other 4.4% 10.3% Total CRE LTV Brooklyn $988M 50.8% 9.2% Industrial 18.7% Mixed Use 24.7% New Jersey 55.2% Office 12.6% Sour
Slide 11: Office Portfolio
Office Portfolio Office Loan Geographic Distribution1 Office Portfolio by Contractual Maturity1 ($ millions) $60 Other 2.4% $50 New Jersey 64.1% Manhattan 18.3% Total Office $40 $124M $30 $51 $20 LTV 49.9% New York (Excl. $35 Manhattan) DSCR 1.8x 15.2% $10 $17 $9 $9 12.6% of total CRE portfolio or $
Slide 12: Asset Quality Metrics
Asset Quality Metrics Net Charge-Offs / Average Loans Non-Performing Assets / Total Assets Increase driven by 0.25% a single C&I relationship 0.52% 0.51% 0.50% 0.49% 0.49% 0.04% 0.02% 0.01% 0.03% 3Q24 4Q24 1Q25 2Q25 3Q25 3Q24 4Q24 1Q25 2Q25 3Q25 Non-Performing Loans1 Allowance for Credit Losses $ in
Slide 13: Granular Deposit Franchise
Granular Deposit Franchise Deposit Growth Non-Maturity Deposit Mix1 Deposit ($ millions) Composition $5,671 $5,707 $5,470 $5,209 $587 10.3% $5,158 $602 Government $592 Commercial $586 14.4% $598 21.6% $2,380 $2,411 42.2% $2,248 $2,349 $2,309 $682 $742 $758 13.3% $630 $643 $733 $733 $733 12.8% $408 $
Slide 14: Retail Deposit Detail
Retail Deposit Detail Retail CDs Maturities1 Retail Deposit Segmentation2,3 ($ millions) 3.98% 3.83% Average 3.65% # of Balance Balance per 3.39% Product Accounts ($ millions) Account Checking 52,761 $ 2,457 $ 46,569 Savings 30,400 757 24,914 CDs 23,666 1,205 50,926 2.28% $384 Total Retail Deposits
Slide 15: Liquidity Available for Uninsured Deposits
Liquidity Available for Uninsured Deposits Estimated Uninsured Deposits Analysis1,2 Liquidity Capacity2 Estimated Uninsured Deposit Analysis ($ millions) Sources of Liquidity Liquidity Funding Available Estimated Uninsured Deposits $ 1,959 1 ($ millions) Capacity Utilized Capacity Less: Collateraliz
Slide 16: Investment Securities
Investment Securities Securities Composition1 Securities Average Balance & Yield Trend ($ millions) Agency MBS 52.8% 4.46% 4.39% 4.36% Municipal 4.28% 4.06% Bonds 0.8% Corporate Bonds 11.5% ABS Student Loans 2 CLO $1,397 6.2% $1,357 $1,327 $1,296 28.8% $1,261 AFS/HTM & Effective Duration HTM Total E
Slide 17: Best-in-Class Operating Efficiency
Best-in-Class Operating Efficiency Adjusted Non-interest Expense to Average Assets1 Deposits per Branch ($ millions) 1.9x $131 $133 1.76% $130 $120 $114 1.73% 1.69% $96 $74 $75 1.61% 1.62% $68 1.56% 1.55% 1.51% 1.50% 2017 2018 2019 2020 2021 2022 2023 2024 YTD 3Q25 2017 2018 2019 2020 2021 2022 2023
Slide 18: Conservative Underwriting Culture
Conservative Underwriting Culture Comprehensive CRE / Multifamily Underwriting Multi-faceted Loan Review & Stress Testing Semi-annual third-party loan-level stress testing and annual Highly disciplined LTV and DSCR standards capital-based stress testing Interest rates stressed at origination Quarter
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of GAAP to Non-GAAP For the quarter ended For the quarter ended For the quarter ended For the quarter ended For the quarter ended (Dollars and Shares in Thousands, March 31, December 31, September 30, June 30, March 31, Except Per Share Data) 2025 2024 2024 202