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

FAIRFIELD, N.J., April 24, 2025 (GLOBE NEWSWIRE) -- Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), reported net income for the quarter ended March 31, 2025 of $6.6 million, or $0.11 per diluted share, compared to $6.6 million, or $0.10 per diluted share, for the quarter ended December 31, 2024.

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

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

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

Balance Sheet

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

Earnings

Net Interest Income and Net Interest Margin

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

Non-Interest Income

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

Non-Interest Expense

For the quarter ended March 31, 2025, non-interest expense increased $829,000, or 2.8%, to $30.4 million from $29.6 million for the quarter ended December 31, 2024, primarily driven by increases in salary and benefits, net occupancy, advertising, and other expense.
Salary and benefits expense increased $121,000 to $17.7 million primarily driven by an increase of $546,000 in payroll taxes and employee benefits associated with the start of a new calendar year, partially offset by a $427,000 non-recurring decrease in stock-based compensation.
Net occupancy expense of premises increased $244,000 to $3.1 million primarily driven by seasonally higher snow removal expenses, partially offset by a decrease in repairs and other maintenance expenses.
Advertising and marketing expense increased $298,000 to $609,000. This increase was primarily due to higher advertising expenses across various formats, driven by marketing campaigns supporting our loan and deposit growth initiatives.
Other expense increased $225,000 primarily driven by a $37,000 provision for credit losses related to off balance sheet commitments compared to a reversal for credit losses on off balance sheet commitments of $116,000 recorded in the prior comparative period. The remaining changes in the other components of non-interest expense between comparative periods generally reflected normal operating fluctuations within those line items.

Income Taxes

Income tax expense totaled $1.2 million for the quarter ended March 31, 2025 compared to $1.3 million for the quarter ended December 31, 2024, resulting in an effective tax rate of 15.3% and 16.0%, respectively.

Asset Quality

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

Capital

For the quarter ended March 31, 2025, book value per share increased $0.05, or 0.4%, to $11.58 while tangible book value per share increased $0.05, or 0.5%, to $9.80.
At March 31, 2025, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $80.1 million, partially offset by after-tax unrealized gains on derivatives of $10.7 million. After-tax net unrecognized losses on securities held to maturity of $9.9 million were not reflected in total stockholders’ equity.
At March 31, 2025, the Company’s tangible equity to tangible assets ratio equaled 8.31% and the regulatory capital ratios of both the Company and the Bank were in excess of the levels required by federal banking regulators to be classified as “well-capitalized” under regulatory guidelines.

This earnings release should be read in conjunction with Kearny Financial Corp.’s Q3 2025 Investor Presentation, a copy of which is available through the Investor Relations link located at the bottom of the page of our website at www.kearnybank.com and via a Current Report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov.

Statements contained in this news release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company does not undertake and specifically disclaims any obligation to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.

Category: Earnings

Linked-Quarter Comparative Financial Analysis

Kearny Financial Corp. Consolidated Balance Sheets (Unaudited)

(Dollars and Shares in Thousands, Except Per Share Data)	March 31, 2025			December 31, 2024			Variance or Change			Variance or Change Pct.
Assets
Cash and cash equivalents	$	126,095		$	141,554		$	(15,459	)	-10.9	%
Securities available for sale		1,003,393			1,018,279			(14,886	)	-1.5	%
Securities held to maturity		124,859			127,266			(2,407	)	-1.9	%
Loans held-for-sale		6,187			5,695			492		8.6	%
Loans receivable		5,846,175			5,791,758			54,417		0.9	%
Less: allowance for credit losses on loans		(44,455	)		(44,457	)		(2	)	-0.0	%
Net loans receivable		5,801,720			5,747,301			54,419		0.9	%
Premises and equipment		44,192			45,127			(935	)	-2.1	%
Federal Home Loan Bank stock		62,261			64,443			(2,182	)	-3.4	%
Accrued interest receivable		28,521			27,772			749		2.7	%
Goodwill		113,525			113,525			—		—	%
Core deposit intangible		1,554			1,679			(125	)	-7.4	%
Bank owned life insurance		303,629			301,339			2,290		0.8	%
Deferred income taxes, net		52,913			53,325			(412	)	-0.8	%
Other assets		64,292			84,080			(19,788	)	-23.5	%
Total assets	$	7,733,141		$	7,731,385		$	1,756		0.0	%

Liabilities
Deposits:
Non-interest-bearing	$	587,118		$	601,510		$	(14,392	)	-2.4	%
Interest-bearing		5,120,230			5,069,550			50,680		1.0	%
Total deposits		5,707,348			5,671,060			36,288		0.6	%
Borrowings		1,213,976			1,258,949			(44,973	)	-3.6	%
Advance payments by borrowers for taxes		19,981			17,986			1,995		11.1	%
Other liabilities		43,723			38,537			5,186		13.5	%
Total liabilities		6,985,028			6,986,532			(1,504	)	-0.0	%

Stockholders' Equity
Common stock		646			646			—		—	%
Paid-in capital		494,131			494,092			39		0.0	%
Retained earnings		341,921			342,155			(234	)	-0.1	%
Unearned ESOP shares		(19,457	)		(19,943	)		486		2.4	%
Accumulated other comprehensive loss		(69,128	)		(72,097	)		2,969		4.1	%
Total stockholders' equity		748,113			744,853			3,260		0.4	%
Total liabilities and stockholders' equity	$	7,733,141		$	7,731,385		$	1,756		0.0	%

Consolidated capital ratios
Equity to assets		9.67	%		9.63	%		0.04	%
Tangible equity to tangible assets⁽¹⁾		8.31	%		8.27	%		0.04	%

Share data
Outstanding shares		64,580			64,580			—		—	%
Book value per share	$	11.58		$	11.53		$	0.05		0.4	%
Tangible book value per share⁽²⁾	$	9.80		$	9.75		$	0.05		0.5	%

_________________________

(1)	Tangible equity equals total stockholders' equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.
(2)	Tangible book value equals total stockholders' equity reduced by goodwill and core deposit intangible assets.


Kearny Financial Corp. Consolidated Statements of Income (Unaudited)

	Three Months Ended
(Dollars and Shares in Thousands, Except Per Share Data)	March 31, 2025			December 31, 2024			Variance or Change			Variance or Change Pct.
Interest income
Loans	$	64,768		$	65,408		$	(640	)	-1.0	%
Taxable investment securities		12,738			13,803			(1,065	)	-7.7	%
Tax-exempt investment securities		55			59			(4	)	-6.8	%
Other interest-earning assets		1,773			2,215			(442	)	-20.0	%
Total interest income		79,334			81,485			(2,151	)	-2.6	%

Interest expense
Deposits		34,912			36,721			(1,809	)	-4.9	%
Borrowings		10,380			12,152			(1,772	)	-14.6	%
Total interest expense		45,292			48,873			(3,581	)	-7.3	%
Net interest income		34,042			32,612			1,430		4.4	%
Provision for credit losses		366			107			259		242.1	%
Net interest income after provision for credit losses		33,676			32,505			1,171		3.6	%

Non-interest income
Fees and service charges		573			627			(54	)	-8.6	%
Gain on sale of loans		112			304			(192	)	-63.2	%
Income from bank owned life insurance		2,617			2,619			(2	)	-0.1	%
Electronic banking fees and charges		391			493			(102	)	-20.7	%
Other income		869			830			39		4.7	%
Total non-interest income		4,562			4,873			(311	)	-6.4	%

Non-interest expense
Salaries and employee benefits		17,700			17,579			121		0.7	%
Net occupancy expense of premises		3,075			2,831			244		8.6	%
Equipment and systems		3,921			3,892			29		0.7	%
Advertising and marketing		609			311			298		95.8	%
Federal deposit insurance premium		1,450			1,503			(53	)	-3.5	%
Directors' compensation		326			361			(35	)	-9.7	%
Other expense		3,309			3,084			225		7.3	%
Total non-interest expense		30,390			29,561			829		2.8	%
Income before income taxes		7,848			7,817			31		0.4	%
Income taxes		1,200			1,251			(51	)	-4.1	%
Net income	$	6,648		$	6,566		$	82		1.2	%

Net income per common share (EPS)
Basic	$	0.11		$	0.11		$	—
Diluted	$	0.11		$	0.10		$	0.01

Dividends declared
Cash dividends declared per common share	$	0.11		$	0.11		$	—
Cash dividends declared	$	6,933		$	6,933		$	—
Dividend payout ratio		104.3	%		105.6	%		-1.3	%

Weighted average number of common shares outstanding
Basic		62,548			62,443			105
Diluted		62,713			62,576			137

Kearny Financial Corp. Average Balance Sheet Data (Unaudited)

	Three Months Ended
(Dollars in Thousands)	March 31, 2025			December 31, 2024			Variance or Change			Variance or Change Pct.
Assets
Interest-earning assets:
Loans receivable, including loans held for sale	$	5,805,045		$	5,762,053		$	42,992		0.7	%
Taxable investment securities		1,251,612			1,285,800			(34,188	)	-2.7	%
Tax-exempt investment securities		9,135			9,711			(576	)	-5.9	%
Other interest-earning assets		110,736			116,354			(5,618	)	-4.8	%
Total interest-earning assets		7,176,528			7,173,918			2,610		0.0	%
Non-interest-earning assets		457,206			459,982			(2,776	)	-0.6	%
Total assets	$	7,633,734		$	7,633,900		$	(166	)	-0.0	%

Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand	$	2,405,974		$	2,314,378		$	91,596		4.0	%
Savings		751,243			711,801			39,442		5.5	%
Certificates of deposit (retail)		1,215,767			1,216,948			(1,181	)	-0.1	%
Certificates of deposit (brokered)		730,612			730,773			(161	)	-0.0	%
Total interest-bearing deposits		5,103,596			4,973,900			129,696		2.6	%
Borrowings:
Federal Home Loan Bank advances		1,028,958			1,085,455			(56,497	)	-5.2	%
Other borrowings		93,389			156,522			(63,133	)	-40.3	%
Total borrowings		1,122,347			1,241,977			(119,630	)	-9.6	%
Total interest-bearing liabilities		6,225,943			6,215,877			10,066		0.2	%
Non-interest-bearing liabilities:
Non-interest-bearing deposits		602,647			604,915			(2,268	)	-0.4	%
Other non-interest-bearing liabilities		59,919			65,258			(5,339	)	-8.2	%
Total non-interest-bearing liabilities		662,566			670,173			(7,607	)	-1.1	%
Total liabilities		6,888,509			6,886,050			2,459		0.0	%
Stockholders' equity		745,225			747,850			(2,625	)	-0.4	%
Total liabilities and stockholders' equity	$	7,633,734		$	7,633,900		$	(166	)	-0.0	%

Average interest-earning assets to average interest-bearing liabilities		115.27	%		115.41	%		-0.14	%	-0.1	%

Kearny Financial Corp. Performance Ratio Highlights (Unaudited)

	Three Months Ended
	March 31, 2025		December 31, 2024		Variance or Change
Average yield on interest-earning assets:
Loans receivable, including loans held for 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