Kearny Financial · NASDAQ:KRNY
Kearny Financial — Q2 2025 Earnings Presentation
19 slides from Kearny Financial's earnings presentation, Jan 30, 2025
Slide 1: Investor Presentation Second Quarter Fiscal 2025
I N V E S T O R P R E S E N TAT I O N SECOND QUARTER FISCAL 2025 JANUAR Y 30, 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: $9.75 Market Cap: $457.2 million1 Company Profile Top 10 New Jersey-based financial institution by assets & deposits 43 full-service
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: 2Q25 Financial Highlights
2Q25 Financial Highlights EARNINGS BALANCE SHEET Net Income Reported net income of $6.6 million for Total assets were $7.7 billion at December the quarter ended December 31, 2024, 31, 2024, a decrease of $41.0 million, or compared to $6.1 million for the quarter GAAP Adjusted1 0.5%, from September 3
Slide 6: Capital Strength
Capital Strength Equity Capitalization Level Regulatory Capital Ratios1,2 10.74% 10.83% 15.43% 9.81% 9.67% 9.63% 14.59% 14.59% 10.00% 9.22% 8.00% 6.50% 8.26% 8.34% 8.43% 8.31% 8.27% 5.00% 2 2Q24 3Q24 4Q24 1Q25 2Q25 Tier 1 Common Equity Tier 1 Risk-Based Total Risk-Based Leverage Tier 1 Capital Capit
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 Financial Sandy Cumulative charge-offs for KRNY between Pandemic Crisis 2006 and 2Q25 were minimal, totaling $39.3 million. 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 8: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Trend Loan Composition1 ($ millions) CRE 16.4% $5,757 $5,775 $5,749 $5,786 $5,800 Multi-family Construction 46.9% 3.1% $947 $966 $948 $951 $950 QTD Yield on C&I 2.3% Loans 4.54% 1-4 Family 30.4% $2,651 $2,645 $2,646 $2,646 $2,723 Home Equity 0.8% Geographic Distributi
Slide 9: Multifamily Loan Portfolio
Multifamily Loan Portfolio Multifamily Loan Portfolio Composition1 New York City (“NYC”) Multifamily1 Outside NYC 55.1% NYC Multifamily Portfolio: $1.2 billion Fully NYC Rent Regulated Average Loan Balance: $3.46 million 2.0% Weighted Average LTV: 61.8% Total MF Majority NYC Rent Regulated Nonperfor
Slide 10: CRE Loan Detail
CRE Loan Detail CRE Portfolio by Collateral Type1 CRE Loan Geographic Distribution1 Medical 4.3% Retail Other 31.1% 4.6% Specialty & Other 6.7% Pennsylvania New Jersey 4.8% 56.7% Total CRE LTV Industrial $950M 19.5% 50.6% New York (Ex. Brooklyn) 24.9% Mixed Use 27.3% Office 11.1% Brooklyn 9.0% Sourc
Slide 11: Office Portfolio
Office Portfolio Office Loan Geographic Distribution1 Office Portfolio by Contractual Maturity1 ($ millions) Other 2.9% New Jersey 69.2% Total Office Manhattan 21.7% $106M $35 $32 New York (Excl. Manhattan) LTV 47.7% 6.1% $17 DSCR 1.9x $9 $9 $4 Office Portfolio Profile 2025 2026 2027 2028 2029 2030+
Slide 12: Asset Quality Metrics
Asset Quality Metrics Net Charge-Offs / Average Loans Non-Performing Assets / Total Assets Increase driven by a single Increase driven by commercial real estate a single C&I relationship relationship 0.29% 0.63% 0.25% 0.52% 0.51% 0.50% 0.49% 0.04% 0.02% 0.01% 2Q24 3Q24 4Q24 1Q25 2Q25 2Q24 3Q24 4Q24
Slide 13: Granular Deposit Franchise
Granular Deposit Franchise Deposit Trend Non-Maturity Deposit Mix1 Deposit ($ millions) Composition $5,671 $5,471 $5,320 $5,209 $5,158 $602 10.6% $592 $584 Commercial Government $586 $598 20.7% 14.8% $2,380 42.0% $2,248 $2,347 $2,349 $2,310 $682 $742 13.1% $646 $630 $643 $457 $733 $752 13.2% $408 $4
Slide 14: Retail Deposit Detail
Retail Deposit Detail Retail Time Deposit Maturities Retail Deposit Segmentation1,2 ($ millions) 4.26% 4.01% 3.93% Average 3.66% # of Balance Balance per Product Accounts ($ millions) Account Checking 52,784 $ 2,431 $ 46,063 2.94% Savings 30,802 741 24,070 CDs 24,346 1,192 48,948 $402 Total Retail D
Slide 15: Liquidity Available for Uninsured Deposits
Liquidity Available for Uninsured Deposits Estimated Uninsured Deposits Analysis1,2 Liquidity Capacity2 Estimated Uninsured Deposit Analysis ($ millions) Sources of Liquidity Liquidity Funding Available Estimated Uninsured Deposits 1 $ 1,936 ($ millions) Capacity Utilized Capacity Less: Collateraliz
Slide 16: Investment Securities
Investment Securities Securities Composition1 Securities Average Balance & Yield Trend ($ millions) Agency MBS 51.8% Municipal 4.42% 4.46% 4.39% 4.36% Bonds 4.28% 0.8% Corporate Bonds 12.0% ABS Student 2 Loans $1,524 6.3% CLO $1,397 $1,357 $1,327 $1,296 29.1% AFS/HTM & Effective Duration HTM Total E
Slide 17: Best-in-Class Operating Efficiency
Best-in-Class Operating Efficiency Adjusted Non-interest Expense to Average Assets1 Deposits per Branch ($ millions) 1.9x 1.73% 1.76% $130 $131 $132 1.69% $120 121 $114 1.62% 101 $96 1.61% 81 $75 $74 $68 61 1.55% 1.55% 1.51% 41 1.50% 21 1 2017 2018 2019 2020 2021 2022 2023 2024 2Q25 2017 2018 2019 2
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, December 31, September 30, June 30, March 31, December 31, Except Per Share Data) 2024 2024 2024