KRNY Kearny Financial Corporation

Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), reported net income for the quarter ended December 31, 2024 of $6.6 million, compared to $6.1 million for the quarter ended September 30, 2024.

Earnings per basic and diluted share were $0.11 and $0.10, respectively, for the quarter ended December 31, 2024. This compares to earnings per basic and diluted share of $0.10 for the quarter ended September 30, 2024.

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on February 26, 2025, to stockholders of record as of February 12, 2025.

Craig L. Montanaro, President and Chief Executive Officer, commented, “As anticipated, this quarter reflected the early stages of growth in net interest income and expansion of net interest margin. We are pleased to report growth in deposits of 3.7% from September 30, 2024, reflecting robust performance from our branch network, digital channels and commercial lending relationships. This growth allowed us to shrink the balance of outstanding borrowings while reducing our cost of funds by nine basis points quarter-over-quarter.”

Mr. Montanaro continued, “Although market expectations for fed funds rate cuts have moderated, the continuation of positive deposit trends coupled with the reinvestment of low-coupon cash flows from our loan and securities portfolio should serve as earnings tailwinds in the coming quarters.”

Balance Sheet

• Total assets were $7.73 billion at December 31, 2024, a decrease of $41.0 million, or 0.5%, from September 30, 2024.
• Investment securities totaled $1.15 billion at December 31, 2024, a decrease of $57.5 million, or 4.8%, from September 30, 2024.
• Loans receivable totaled $5.79 billion at December 31, 2024, an increase of $7.5 million, or 0.1%, from September 30, 2024.
• Deposits were $5.67 billion at December 31, 2024, an increase of $200.5 million, or 3.7%, from September 30, 2024. This increase was primarily driven by increases in interest and non-interest bearing demand deposits of $142.1 million, and an increase of $60.6 million in consumer savings deposits.
• Borrowings were $1.26 billion at December 31, 2024, a decrease of $220.9 million, or 14.9%, from September 30, 2024, reflecting reductions in Federal Home Loan Bank (“FHLB”) and other borrowings.
• At December 31, 2024, the Company maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.32 billion, an increase of $256.0 million from September 30, 2024, representing 30.0% of total assets.

Earnings

Net Interest Income and Net Interest Margin

• Net interest margin expanded two basis points from the quarter ended September 30, 2024 to 1.82% for the quarter ended December 31, 2024. The increase for the quarter was driven by the replacement of borrowings with relatively lower cost deposits and broad based decreases in deposit rates, partially offset by higher costs and average balances of brokered certificates of deposit (“CDs”), along with reduced average balances and yields on interest-earning assets.
• For the quarter ended December 31, 2024, net interest income increased $166,000 to $32.6 million from $32.4 million for the quarter ended September 30, 2024. Included in net interest income for the quarters ended December 31, 2024 and September 30, 2024, respectively, was purchase accounting accretion of $685,000 and $649,000, and loan prepayment penalty income of $288,000 and $52,000.

Non-Interest Income

• Non-interest income increased $247,000 to $4.9 million for the quarter ended December 31, 2024, from $4.6 million for the quarter ended September 30, 2024. This increase was primarily driven by a $104,000 larger gain on the sale of loans held-for-sale compared to the prior comparative period and a $102,000 increase in electronic banking fees and charges.

Non-Interest Expense

• For the quarter ended December 31, 2024, non-interest expense decreased $225,000, or 0.8%, to $29.6 million from $29.8 million for the quarter ended September 30, 2024. This decrease was primarily driven by a decrease in other expense, partially offset by an increase in salary and benefits expense.
• Salary and benefits expense increased $81,000 primarily driven by the absence of a non-recurring decrease in stock-based compensation recorded in the prior comparative period, partially offset by a decrease in payroll taxes.
• Other expense decreased $280,000 primarily driven by a reversal of $116,000 for credit losses related to off balance sheet commitments compared to a provision for credit losses on off balance sheet commitments of $274,000 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 $1.3 million for the quarter ended December 31, 2024 compared to $1.1 million for the quarter ended September 30, 2024, resulting in an effective tax rate of 16.0% and 15.1%, respectively. The increase in income tax expense was primarily due to higher pre-tax income in the current quarter.

Asset Quality

• The balance of non-performing assets decreased $2.2 million to $37.7 million, or 0.49% of total assets, at December 31, 2024, from $39.9 million, or 0.51% of total assets, at September 30, 2024, respectively.
• Net charge-offs totaled $573,000, or 0.04% of average loans, on an annualized basis, for the quarter ended December 31, 2024, compared to $124,000, or 0.01% of average loans, on an annualized basis, for the quarter ended September 30, 2024. The net charge-offs recorded for the quarter ended December 31, 2024 had previously been individually reserved for within the allowance for credit losses (“ACL”).
• For the quarter ended December 31, 2024, the Company recorded a provision for credit losses of $107,000, compared to $108,000 for the quarter ended September 30, 2024. The provision for credit loss expense for the quarter ended December 31, 2024 was primarily driven by loan growth.
• The ACL was $44.5 million, or 0.77% of total loans, at December 31, 2024, a decrease of $466,000 from $44.9 million, or 0.78% of total loans, at September 30, 2024. The decrease in the ACL from September 30, 2024 was largely attributable to a reduction in reserves for individually evaluated loans, resulting from the charge-offs noted above.

Capital

• For the quarter ended December 31, 2024, book value per share decreased $0.11, or 0.9%, to $11.53 while tangible book value per share decreased $0.10, or 1.0%, to $9.75. These decreases were driven by a $7.4 million larger accumulated other comprehensive loss due primarily to a decrease in the fair value of the Company’s available for sale securities, partially offset by an increase in the fair value of the Company’s derivatives portfolio.
• At December 31, 2024, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $89.8 million, partially offset by after-tax unrealized gains on derivatives of $17.4 million. After-tax net unrecognized losses on securities held to maturity of $11.3 million were not reflected in total stockholders’ equity.
• At December 31, 2024, the Company’s tangible equity to tangible assets ratio equaled 8.27% and the regulatory capital ratios of both the Company and the Bank were in excess of the levels required by federal banking regulators to be classified as “well-capitalized” under regulatory guidelines.

This earnings release should be read in conjunction with Kearny Financial Corp.’s Q2 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

For further information contact:Keith Suchodolski, Senior Executive Vice President and Chief Operating Officer, orSean Byrnes, Executive Vice President and Chief Financial OfficerKearny Financial Corp.(973) 244-4500

Linked-Quarter Comparative Financial Analysis

Kearny Financial Corp.Consolidated Balance Sheets(Unaudited)
(Dollars and Shares in Thousands,Except Per Share Data)	December 31,2024			September 30,2024			Variance or Change			Variance or Change Pct.
Assets
Cash and cash equivalents	$	141,554		$	155,574		$	(14,020	)	-9.0	%
Securities available for sale		1,018,279			1,070,811			(52,532	)	-4.9	%
Securities held to maturity		127,266			132,256			(4,990	)	-3.8	%
Loans held-for-sale		5,695			8,866			(3,171	)	-35.8	%
Loans receivable		5,791,758			5,784,246			7,512		0.1	%
Less: allowance for credit losses on loans		(44,457	)		(44,923	)		(466	)	-1.0	%
Net loans receivable		5,747,301			5,739,323			7,978		0.1	%
Premises and equipment		45,127			45,189			(62	)	-0.1	%
Federal Home Loan Bank stock		64,443			57,706			6,737		11.7	%
Accrued interest receivable		27,772			29,467			(1,695	)	-5.8	%
Goodwill		113,525			113,525			—		—	%
Core deposit intangible		1,679			1,805			(126	)	-7.0	%
Bank owned life insurance		301,339			300,186			1,153		0.4	%
Deferred income taxes, net		53,325			50,131			3,194		6.4	%
Other assets		84,080			67,540			16,540		24.5	%
Total assets	$	7,731,385		$	7,772,379		$	(40,994	)	-0.5	%
Liabilities
Deposits:
Non-interest-bearing	$	601,510		$	592,099		$	9,411		1.6	%
Interest-bearing		5,069,550			4,878,413			191,137		3.9	%
Total deposits		5,671,060			5,470,512			200,548		3.7	%
Borrowings		1,258,949			1,479,888			(220,939	)	-14.9	%
Advance payments by borrowers for taxes		17,986			17,824			162		0.9	%
Other liabilities		38,537			52,618			(14,081	)	-26.8	%
Total liabilities		6,986,532			7,020,842			(34,310	)	-0.5	%
Stockholders' Equity
Common stock		646			646			—		—	%
Paid-in capital		494,092			493,523			569		0.1	%
Retained earnings		342,155			342,522			(367	)	-0.1	%
Unearned ESOP shares		(19,943	)		(20,430	)		487		2.4	%
Accumulated other comprehensive loss		(72,097	)		(64,724	)		(7,373	)	-11.4	%
Total stockholders' equity		744,853			751,537			(6,684	)	-0.9	%
Total liabilities and stockholders' equity	$	7,731,385		$	7,772,379		$	(40,994	)	-0.5	%
Consolidated capital ratios
Equity to assets		9.63	%		9.67	%		-0.04	%
Tangible equity to tangible assets (1)		8.27	%		8.31	%		-0.04	%
Share data
Outstanding shares		64,580			64,580			—		—	%
Book value per share	$	11.53		$	11.64		$	(0.11	)	-0.9	%
Tangible book value per share (2)	$	9.75		$	9.85		$	(0.10	)	-1.0	%

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

Kearny Financial Corp.Consolidated Statements of Income(Unaudited)
(Dollars and Shares in Thousands,Except Per Share Data)	Three Months Ended						Variance or Change			Variance or Change Pct.
	December 31,2024			September 30,2024
Interest income
Loans	$	65,408		$	66,331		$	(923	)	-1.4	%
Taxable investment securities		13,803			14,384			(581	)	-4.0	%
Tax-exempt investment securities		59			71			(12	)	-16.9	%
Other interest-earning assets		2,215			2,466			(251	)	-10.2	%
Total interest income		81,485			83,252			(1,767	)	-2.1	%
Interest expense
Deposits		36,721			35,018			1,703		4.9	%
Borrowings		12,152			15,788			(3,636	)	-23.0	%
Total interest expense		48,873			50,806			(1,933	)	-3.8	%
Net interest income		32,612			32,446			166		0.5	%
Provision for credit losses		107			108			(1	)	-0.9	%
Net interest income after provision for credit losses		32,505			32,338			167		0.5	%
Non-interest income
Fees and service charges		627			635			(8	)	-1.3	%
Gain on sale of loans		304			200			104		52.0	%
Income from bank owned life insurance		2,619			2,567			52		2.0	%
Electronic banking fees and charges		493			391			102		26.1	%
Other income		830			833			(3	)	-0.4	%
Total non-interest income		4,873			4,626			247		5.3	%
Non-interest expense
Salaries and employee benefits		17,579			17,498			81		0.5	%
Net occupancy expense of premises		2,831			2,798			33		1.2	%
Equipment and systems		3,892			3,860			32		0.8	%
Advertising and marketing		311			342			(31	)	-9.1	%
Federal deposit insurance premium		1,503			1,563			(60	)	-3.8	%
Directors' compensation		361			361			—		—	%
Other expense		3,084			3,364			(280	)	-8.3	%
Total non-interest expense		29,561			29,786			(225	)	-0.8	%
Income before income taxes		7,817			7,178			639		8.9	%
Income taxes		1,251			1,086			165		15.2	%
Net income	$	6,566		$	6,092		$	474		7.8	%
Net income per common share (EPS)
Basic	$	0.11		$	0.10		$	0.01
Diluted	$	0.10		$	0.10		$	—
Dividends declared
Cash dividends declared per common share	$	0.11		$	0.11		$	—
Cash dividends declared	$	6,933		$	6,896		$	37
Dividend payout ratio		105.6	%		113.2	%		-7.6	%
Weighted average number of common shares outstanding
Basic		62,443			62,389			54
Diluted		62,576			62,420			156

Kearny Financial Corp.Average Balance Sheet Data(Unaudited)
(Dollars in Thousands)	Three Months Ended						Variance or Change			Variance or Change Pct.
	December 31,2024			September 30,2024
Assets
Interest-earning assets:
Loans receivable, including loans held for sale	$	5,762,053		$	5,761,593		$	460		—	%
Taxable investment securities		1,285,800			1,314,945			(29,145	)	-2.2	%
Tax-exempt investment securities		9,711			12,244			(2,533	)	-20.7	%
Other interest-earning assets		116,354			131,981			(15,627	)	-11.8	%
Total interest-earning assets		7,173,918			7,220,763			(46,845	)	-0.6	%
Non-interest-earning assets		459,982			467,670			(7,688	)	-1.6	%
Total assets	$	7,633,900		$	7,688,433		$	(54,533	)	-0.7	%
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand	$	2,314,378		$	2,282,608		$	31,770		1.4	%
Savings		711,801			668,240			43,561		6.5	%
Certificates of deposit (retail)		1,211,985			1,203,770			8,215		0.7	%
Certificates of deposit (brokered and listing service)		735,736			551,819			183,917		33.3	%
Total interest-bearing deposits		4,973,900			4,706,437			267,463		5.7	%
Borrowings:
Federal Home Loan Bank advances		1,085,455			1,325,583			(240,128	)	-18.1	%
Other borrowings		156,522			237,011			(80,489	)	-34.0	%
Total borrowings		1,241,977			1,562,594			(320,617	)	-20.5	%
Total interest-bearing liabilities		6,215,877			6,269,031			(53,154	)	-0.8	%
Non-interest-bearing liabilities:
Non-interest-bearing deposits		604,915			599,095			5,820		1.0	%
Other non-interest-bearing liabilities		65,258			69,629			(4,371	)	-6.3	%
Total non-interest-bearing liabilities		670,173			668,724			1,449		0.2	%
Total liabilities		6,886,050			6,937,755			(51,705	)	-0.7	%
Stockholders' equity		747,850			750,678			(2,828	)	-0.4	%
Total liabilities and stockholders' equity	$	7,633,900		$	7,688,433		$	(54,533	)	-0.7	%
Average interest-earning assets to average interest-bearing liabilities		115.41	%		115.18	%		0.23	%	0.2	%

Kearny Financial Corp.Performance Ratio Highlights(Unaudited)
	Three Months Ended				Variance or Change
	December 31,2024		September 30,2024
Average yield on interest-earning assets:
Loans receivable, including loans held for sale	4.54	%	4.61	%	-0.07	%
Taxable investment securities	4.29	%	4.38	%	-0.09	%
Tax-exempt investment securities (1)	2.42	%	2.32	%	0.10	%
Other interest-earning assets	7.62	%	7.47	%	0.15	%
Total interest-earning assets	4.54	%	4.61	%	-0.07	%
Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand	2.96	%	3.13	%	-0.17	%
Savings	1.29	%	1.05	%	0.24	%
Certificates of deposit (retail)	4.06	%	4.12	%	-0.06	%
Certificates of deposit (brokered and listing service)	2.71	%	2.18	%	0.53	%
Total interest-bearing deposits	2.95	%	2.98	%	-0.03	%
Borrowings:
Federal Home Loan Bank advances	3.78	%	3.82	%	-0.04	%
Other borrowings	4.88	%	5.28	%	-0.40	%
Total borrowings	3.91	%	4.04	%	-0.13	%
Total interest-bearing liabilities	3.15	%	3.24	%	-0.09	%
Interest rate spread (2)	1.39	%	1.37	%	0.02	%
Net interest margin (3)	1.82	%	1.80	%	0.02	%
Non-interest income to average assets (annualized)	0.26	%	0.24	%	0.02	%
Non-interest expense to average assets (annualized)	1.55	%	1.55	%	—	%
Efficiency ratio (4)	78.86	%	80.35	%	-1.49	%
Return on average assets (annualized)	0.34	%	0.32	%	0.02	%
Return on average equity (annualized)	3.51	%	3.25	%	0.26	%
Return on average tangible equity (annualized) (5)	4.21	%	3.89	%	0.32	%

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(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)	December 31,2024			September 30,2024			June 30,2024			March 31,2024			December 31,2023
	(Unaudited)			(Unaudited)						(Unaudited)			(Unaudited)
Assets
Cash and cash equivalents	$	141,554		$	155,574		$	63,864		$	71,027		$	73,860
Securities available for sale		1,018,279			1,070,811			1,072,833			1,098,655			1,144,175
Securities held to maturity		127,266			132,256			135,742			139,643			141,959
Loans held-for-sale		5,695			8,866			6,036			4,117			14,030
Loans receivable		5,791,758			5,784,246			5,732,787			5,758,336			5,745,629
Less: allowance for credit losses on loans		(44,457	)		(44,923	)		(44,939	)		(44,930	)		(44,867	)
Net loans receivable		5,747,301			5,739,323			5,687,848			5,713,406			5,700,762
Premises and equipment		45,127			45,189			44,940			45,053			45,928
Federal Home Loan Bank stock		64,443			57,706			80,300			81,347			83,372
Accrued interest receivable		27,772			29,467			29,521			31,065			30,258
Goodwill		113,525			113,525			113,525			210,895			210,895
Core deposit intangible		1,679			1,805			1,931			2,057			2,189
Bank owned life insurance		301,339			300,186			297,874			296,493			256,064
Deferred income taxes, net		53,325			50,131			50,339			47,225			46,116
Other real estate owned		—			—			—			—			11,982
Other assets		84,080			67,540			98,708			100,989			136,242
Total assets	$	7,731,385		$	7,772,379		$	7,683,461		$	7,841,972		$	7,897,832
Liabilities
Deposits:
Non-interest-bearing	$	601,510		$	592,099		$	598,366		$	586,089		$	584,130
Interest-bearing		5,069,550			4,878,413			4,559,757			4,622,961			4,735,500
Total deposits		5,671,060			5,470,512			5,158,123			5,209,050			5,319,630
Borrowings		1,258,949			1,479,888			1,709,789			1,722,178			1,667,055
Advance payments by borrowers for taxes		17,986			17,824			17,409			17,387			16,742
Other liabilities		38,537			52,618			44,569			44,279			46,427
Total liabilities		6,986,532			7,020,842			6,929,890			6,992,894			7,049,854
Stockholders' Equity
Common stock		646			646			644			644			645
Paid-in capital		494,092			493,523			493,680			493,187			493,297
Retained earnings		342,155			342,522			343,326			440,308			439,755
Unearned ESOP shares		(19,943	)		(20,430	)		(20,916	)		(21,402	)		(21,889	)
Accumulated other comprehensive loss		(72,097	)		(64,724	)		(63,163	)		(63,659	)		(63,830	)
Total stockholders' equity		744,853			751,537			753,571			849,078			847,978
Total liabilities and stockholders' equity	$	7,731,385		$	7,772,379		$	7,683,461		$	7,841,972		$	7,897,832
Consolidated capital ratios
Equity to assets		9.63	%		9.67	%		9.81	%		10.83	%		10.74	%
Tangible equity to tangible assets (1)		8.27	%		8.31	%		8.43	%		8.34	%		8.26	%
Share data
Outstanding shares		64,580			64,580			64,434			64,437			64,445
Book value per share	$	11.53		$	11.64		$	11.70		$	13.18		$	13.16
Tangible book value per share (2)	$	9.75		$	9.85		$	9.90		$	9.87		$	9.85

_________________________

(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)	December 31,2024			September 30,2024			June 30,2024			March 31,2024			December 31,2023
Loan portfolio composition:
Commercial loans:
Multi-family mortgage	$	2,722,623		$	2,646,187		$	2,645,851		$	2,645,195		$	2,651,274
Nonresidential mortgage		950,194			950,771			948,075			965,539			947,287
Commercial business		135,740			145,984			142,747			147,326			144,134
Construction		176,704			227,327			209,237			229,457			221,933
Total commercial loans		3,985,261			3,970,269			3,945,910			3,987,517			3,964,628
One- to four-family residential mortgage		1,765,160			1,768,230			1,756,051			1,741,644			1,746,065
Consumer loans:
Home equity loans		47,101			44,741			44,104			42,731			43,517
Other consumer		2,778			2,965			2,685			3,198			2,728
Total consumer loans		49,879			47,706			46,789			45,929			46,245
Total loans, excluding yield adjustments		5,800,300			5,786,205			5,748,750			5,775,090			5,756,938
Unaccreted yield adjustments		(8,542	)		(1,959	)		(15,963	)		(16,754	)		(11,309	)
Loans receivable, net of yield adjustments		5,791,758			5,784,246			5,732,787			5,758,336			5,745,629
Less: allowance for credit losses on loans		(44,457	)		(44,923	)		(44,939	)		(44,930	)		(44,867	)
Net loans receivable	$	5,747,301		$	5,739,323		$	5,687,848		$	5,713,406		$	5,700,762
Asset quality:
Nonperforming assets:
Accruing loans - 90 days and over past due	$	—		$	—		$	—		$	—		$	—
Nonaccrual loans		37,697			39,854			39,882			39,546			28,089
Total nonperforming loans		37,697			39,854			39,882			39,546			28,089
Nonaccrual loans held-for-sale		—			—			—			—			9,700
Other real estate owned		—			—			—			—			11,982
Total nonperforming assets	$	37,697		$	39,854		$	39,882		$	39,546		$	49,771
Nonperforming loans (% total loans)		0.65	%		0.69	%		0.70	%		0.69	%		0.49	%
Nonperforming assets (% total assets)		0.49	%		0.51	%		0.52	%		0.50	%		0.63	%
Classified loans	$	132,216		$	119,534		$	118,700		$	115,772		$	94,676
Allowance for credit losses on loans (ACL):
ACL to total loans		0.77	%		0.78	%		0.78	%		0.78	%		0.78	%
ACL to nonperforming loans		117.93	%		112.72	%		112.68	%		113.61	%		159.73	%
Net charge-offs	$	573		$	124		$	3,518		$	286		$	4,110
Average net charge-off rate (annualized)		0.04	%		0.01	%		0.25	%		0.02	%		0.29	%

Kearny Financial Corp.Supplemental Balance Sheet Highlights(Unaudited)
(Dollars in Thousands)	December 31,2024			September 30,2024			June 30,2024			March 31,2024			December 31,2023
Funding composition:
Deposits:
Non-interest-bearing deposits	$	601,510		$	592,099		$	598,367		$	586,089		$	584,130
Interest-bearing demand		2,380,408			2,247,685			2,308,915			2,349,032			2,347,262
Savings		742,266			681,709			643,481			630,456			646,182
Certificates of deposit (retail)		1,194,865			1,215,746			1,199,127			1,235,261			1,283,676
Certificates of deposit (brokered and listing service)		752,011			733,273			408,234			408,212			458,380
Interest-bearing deposits		5,069,550			4,878,413			4,559,757			4,622,961			4,735,500
Total deposits		5,671,060			5,470,512			5,158,124			5,209,050			5,319,630
Borrowings:
Federal Home Loan Bank advances		1,028,949			1,209,888			1,534,789			1,457,178			1,432,055
Overnight borrowings		230,000			270,000			175,000			265,000			235,000
Total borrowings		1,258,949			1,479,888			1,709,789			1,722,178			1,667,055
Total funding	$	6,930,009		$	6,950,400		$	6,867,913		$	6,931,228		$	6,986,685
Loans as a % of deposits		101.4	%		105.1	%		110.4	%		109.8	%		107.4	%
Deposits as a % of total funding		81.8	%		78.7	%		75.1	%		75.2	%		76.1	%
Borrowings as a % of total funding		18.2	%		21.3	%		24.9	%		24.8	%		23.9	%
Uninsured deposits:
Uninsured deposits (reported) (1)	$	1,935,607		$	1,799,726		$	1,772,623		$	1,760,740		$	1,813,122
Uninsured deposits (adjusted) (2)	$	797,721		$	773,375		$	764,447		$	718,026		$	694,510

_________________________

(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)	December 31,2024			September 30,2024			June 30,2024			March 31,2024			December 31,2023
Interest income
Loans	$	65,408		$	66,331		$	65,819		$	64,035		$	63,384
Taxable investment securities		13,803			14,384			14,802			15,490			16,756
Tax-exempt investment securities		59			71			80			85			84
Other interest-earning assets		2,215			2,466			2,289			2,475			2,401
Total interest income		81,485			83,252			82,990			82,085			82,625
Interest expense
Deposits		36,721			35,018			32,187			32,320			30,340
Borrowings		12,152			15,788			17,527			15,446			16,446
Total interest expense		48,873			50,806			49,714			47,766			46,786
Net interest income		32,612			32,446			33,276			34,319			35,839
Provision for credit losses		107			108			3,527			349			2,105
Net interest income after provision for credit losses		32,505			32,338			29,749			33,970			33,734
Non-interest income
Fees and service charges		627			635			580			657			624
Loss on sale and call of securities		—			—			—			—			(18,135	)
Gain (loss) on sale of loans		304			200			111			(712	)		104
Loss on sale of other real estate owned		—			—			—			—			(974	)
Income from bank owned life insurance		2,619			2,567			3,209			3,039			1,162
Electronic banking fees and charges		493			391			1,130			464			396
Other income		830			833			776			755			811
Total non-interest income		4,873			4,626			5,806			4,203			(16,012	)
Non-interest expense
Salaries and employee benefits		17,579			17,498			17,266			16,911			17,282
Net occupancy expense of premises		2,831			2,798			2,738			2,863			2,674
Equipment and systems		3,892			3,860			3,785			3,823			3,814
Advertising and marketing		311			342			480			387			301
Federal deposit insurance premium		1,503			1,563			1,532			1,429			1,495
Directors' compensation		361			361			360			360			393
Goodwill impairment		—			—			97,370			—			—
Other expense		3,084			3,364			3,020			3,286			3,808
Total non-interest expense		29,561			29,786			126,551			29,059			29,767
Income (loss) before income taxes		7,817			7,178			(90,996	)		9,114			(12,045	)
Income taxes		1,251			1,086			(917	)		1,717			1,782
Net income (loss)	$	6,566		$	6,092		$	(90,079	)	$	7,397		$	(13,827	)
Net income (loss) per common share (EPS)
Basic	$	0.11		$	0.10		$	(1.45	)	$	0.12		$	(0.22	)
Diluted	$	0.10		$	0.10		$	(1.45	)	$	0.12		$	(0.22	)
Dividends declared
Cash dividends declared per common share	$	0.11		$	0.11		$	0.11		$	0.11		$	0.11
Cash dividends declared	$	6,933		$	6,896		$	6,903		$	6,844		$	6,882
Dividend payout ratio		105.6	%		113.2	%		-7.7	%		92.5	%		-49.8	%
Weighted average number of common shares outstanding
Basic		62,443			62,389			62,254			62,205			62,299
Diluted		62,576			62,420			62,254			62,211			62,299

Kearny Financial Corp.Average Balance Sheet Data(Unaudited)
	Three Months Ended
(Dollars in Thousands)	December 31,2024			September 30,2024			June 30,2024			March 31,2024			December 31,2023
Assets
Interest-earning assets:
Loans receivable, including loans held-for-sale	$	5,762,053		$	5,761,593		$	5,743,008		$	5,752,477		$	5,726,321
Taxable investment securities		1,285,800			1,314,945			1,343,541			1,382,064			1,509,165
Tax-exempt investment securities		9,711			12,244			13,737			14,614			15,025
Other interest-earning assets		116,354			131,981			128,257			125,155			139,740
Total interest-earning assets		7,173,918			7,220,763			7,228,543			7,274,310			7,390,251
Non-interest-earning assets		459,982			467,670			466,537			577,411			554,335
Total assets	$	7,633,900		$	7,688,433		$	7,695,080		$	7,851,721		$	7,944,586
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand	$	2,314,378		$	2,282,608		$	2,310,521		$	2,378,831		$	2,301,169
Savings		711,801			668,240			631,622			635,226			664,926
Certificates of deposit (retail)		1,211,985			1,203,770			1,208,101			1,257,362			1,292,837
Certificates of deposit (brokered and listing service)		735,736			551,819			405,697			448,151			531,479
Total interest-bearing deposits		4,973,900			4,706,437			4,555,941			4,719,570			4,790,411
Borrowings:
Federal Home Loan Bank advances		1,085,455			1,325,583			1,507,192			1,428,801			1,513,497
Other borrowings		156,522			237,011			228,461			210,989			142,283
Total borrowings		1,241,977			1,562,594			1,735,653			1,639,790			1,655,780
Total interest-bearing liabilities		6,215,877			6,269,031			6,291,594			6,359,360			6,446,191
Non-interest-bearing liabilities:
Non-interest-bearing deposits		604,915			599,095			589,438			581,870			597,294
Other non-interest-bearing liabilities		65,258			69,629			62,978			65,709			62,387
Total non-interest-bearing liabilities		670,173			668,724			652,416			647,579			659,681
Total liabilities		6,886,050			6,937,755			6,944,010			7,006,939			7,105,872
Stockholders' equity		747,850			750,678			751,070			844,782			838,714
Total liabilities and stockholders' equity	$	7,633,900		$	7,688,433		$	7,695,080		$	7,851,721		$	7,944,586
Average interest-earning assets to average interest-bearing liabilities		115.41	%		115.18	%		114.89	%		114.39	%		114.65	%

Kearny Financial Corp.Performance Ratio Highlights
	Three Months Ended
	December 31,2024		September 30,2024		June 30,2024		March 31,2024		December 31,2023
Average yield on interest-earning assets:
Loans receivable, including loans held-for-sale	4.54	%	4.61	%	4.58	%	4.45	%	4.43	%
Taxable investment securities	4.29	%	4.38	%	4.41	%	4.48	%	4.44	%
Tax-exempt investment securities (1)	2.42	%	2.32	%	2.32	%	2.32	%	2.25	%
Other interest-earning assets	7.62	%	7.47	%	7.14	%	7.91	%	6.87	%
Total interest-earning assets	4.54	%	4.61	%	4.59	%	4.51	%	4.47	%
Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand	2.96	%	3.13	%	3.06	%	3.08	%	2.91	%
Savings	1.29	%	1.05	%	0.63	%	0.46	%	0.44	%
Certificates of deposit (retail)	4.06	%	4.12	%	3.95	%	3.52	%	3.06	%
Certificates of deposit (brokered and listing service)	2.71	%	2.18	%	1.59	%	1.97	%	2.24	%
Total interest-bearing deposits	2.95	%	2.98	%	2.83	%	2.74	%	2.53	%
Borrowings:
Federal Home Loan Bank advances	3.78	%	3.82	%	3.86	%	3.55	%	3.82	%
Other borrowings	4.88	%	5.28	%	5.24	%	5.22	%	5.65	%
Total borrowings	3.91	%	4.04	%	4.04	%	3.77	%	3.97	%
Total interest-bearing liabilities	3.15	%	3.24	%	3.16	%	3.00	%	2.90	%
Interest rate spread (2)	1.39	%	1.37	%	1.43	%	1.51	%	1.57	%
Net interest margin (3)	1.82	%	1.80	%	1.84	%	1.89	%	1.94	%
Non-interest income to average assets (annualized)	0.26	%	0.24	%	0.30	%	0.21	%	-0.81	%
Non-interest expense to average assets (annualized)	1.55	%	1.55	%	6.58	%	1.48	%	1.50	%
Efficiency ratio (4)	78.86	%	80.35	%	323.81	%	75.43	%	150.13	%
Return on average assets (annualized)	0.34	%	0.32	%	-4.68	%	0.38	%	-0.70	%
Return on average equity (annualized)	3.51	%	3.25	%	-47.97	%	3.50	%	-6.59	%
Return on average tangible equity (annualized) (5)	4.21	%	3.89	%	3.33	%	4.68	%	-8.84	%

_________________________

(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)	December 31,2024			September 30,2024			June 30,2024			March 31,2024			December 31,2023
Adjusted net income:
Net income (loss) (GAAP)	$	6,566		$	6,092		$	(90,079	)	$	7,397		$	(13,827	)
Non-recurring transactions - net of tax:
Net effect of sale and call of securities		—			—			—			—			12,876
Net effect of bank-owned life insurance restructure		—			—			392			—			6,286
Goodwill impairment		—			—			95,283			—			—
Adjusted net income	$	6,566		$	6,092		$	5,596		$	7,397		$	5,335
Calculation of pre-tax, pre-provision net revenue:
Net income (loss) (GAAP)	$	6,566		$	6,092		$	(90,079	)	$	7,397		$	(13,827	)
Adjustments to net income (GAAP):
Provision for income taxes		1,251			1,086			(917	)		1,717			1,782
Provision for credit losses		107			108			3,527			349			2,105
Pre-tax, pre-provision net revenue (non-GAAP)	$	7,924		$	7,286		$	(87,469	)	$	9,463		$	(9,940	)
Adjusted earnings per share:
Weighted average common shares - basic		62,443			62,389			62,254			62,205			62,299
Weighted average common shares - diluted		62,576			62,420			62,330			62,211			62,367
Earnings per share - basic (GAAP)	$	0.11		$	0.10		$	(1.45	)	$	0.12		$	(0.22	)
Earnings per share - diluted (GAAP)	$	0.10		$	0.10		$	(1.45	)	$	0.12		$	(0.22	)
Adjusted earnings per share - basic (non-GAAP)	$	0.11		$	0.10		$	0.09		$	0.12		$	0.09
Adjusted earnings per share - diluted (non-GAAP)	$	0.10		$	0.10		$	0.09		$	0.12		$	0.09
Pre-tax, pre-provision net revenue per share:
Pre-tax, pre-provision net revenue per share - basic (non-GAAP)	$	0.13		$	0.12		$	(1.41	)	$	0.15		$	(0.16	)
Pre-tax, pre-provision net revenue per share - diluted (non-GAAP)	$	0.13		$	0.12		$	(1.41	)	$	0.15		$	(0.16	)
Adjusted return on average assets:
Total average assets	$	7,633,900		$	7,688,433		$	7,695,080		$	7,851,721		$	7,944,586
Return on average assets (GAAP)		0.34	%		0.32	%		-4.68	%		0.38	%		-0.70	%
Adjusted return on average assets (non-GAAP)		0.34	%		0.32	%		0.29	%		0.38	%		0.27	%
Adjusted return on average equity:
Total average equity	$	747,850		$	750,678		$	751,070		$	844,782		$	838,714
Return on average equity (GAAP)		3.51	%		3.25	%		-47.97	%		3.50	%		-6.59	%
Adjusted return on average equity (non-GAAP)		3.51	%		3.25	%		2.98	%		3.50	%		2.54	%

Kearny Financial Corp.Reconciliation of GAAP to Non-GAAP(Unaudited)
	Three Months Ended
(Dollars and Shares in Thousands,Except Per Share Data)	December 31,2024			September 30,2024			June 30,2024			March 31,2024			December 31,2023
Adjusted return on average tangible equity:
Total average equity	$	747,850		$	750,678		$	751,070		$	844,782		$	838,714
Less: average goodwill		(113,525	)		(113,525	)		(113,525	)		(210,895	)		(210,895	)
Less: average other intangible assets		(1,761	)		(1,886	)		(2,006	)		(2,138	)		(2,277	)
Total average tangible equity	$	632,564		$	635,267		$	635,539		$	631,749		$	625,542
Return on average tangible equity (non-GAAP)		4.21	%		3.89	%		3.33	%		4.68	%		-8.84	%
Adjusted return on average tangible equity (non-GAAP)		4.21	%		3.89	%		3.58	%		4.68	%		3.41	%
Adjusted non-interest expense ratio:
Non-interest expense (GAAP)	$	29,561		$	29,786		$	126,551		$	29,059		$	29,767
Non-recurring transactions:
Goodwill impairment		—			—			(97,370	)		—			—
Non-interest expense (non-GAAP)	$	29,561		$	29,786		$	29,181		$	29,059		$	29,767
Non-interest expense ratio (GAAP)		1.55	%		1.55	%		6.58	%		1.48	%		1.50	%
Adjusted non-interest expense ratio (non-GAAP)		1.55	%		1.55	%		1.52	%		1.48	%		1.50	%
Adjusted efficiency ratio:
Non-interest expense (non-GAAP)	$	29,561		$	29,786		$	29,181		$	29,059		$	29,767
Net interest income (GAAP)	$	32,612		$	32,446		$	33,276		$	34,319		$	35,839
Total non-interest income (GAAP)		4,873			4,626			5,806			4,203			(16,012	)
Non-recurring transactions:
Net effect of sale and call of securities		—			—			—			—			18,135
Net effect of bank-owned life insurance restructure		—			—			392			—			573
Total revenue (non-GAAP)	$	37,485		$	37,072		$	39,474		$	38,522		$	38,535
Efficiency ratio (GAAP)		78.86	%		80.35	%		323.81	%		75.43	%		150.13	%
Adjusted efficiency ratio (non-GAAP)		78.86	%		80.35	%		73.92	%		75.43	%		77.25	%