• Kearny Financial Corp. Announces Fourth Quarter and Fiscal Year End 2024 Results and Declaration of $0.11 Per Share Cash Dividend

    Источник: Nasdaq GlobeNewswire / 25 июл 2024 08:30:03   America/New_York

    FAIRFIELD, N.J., July 25, 2024 (GLOBE NEWSWIRE) -- Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), reported a GAAP net loss for the quarter ended June 30, 2024 of $90.1 million, or $1.45 per diluted share, attributable to a non-cash, after-tax, goodwill impairment of $95.3 million. Excluding the impact of the goodwill impairment and other non-recurring transactions, adjusted net income for the quarter ended June 30, 2024 was $5.6 million, or $0.09 per diluted share, as compared to net income of $7.4 million, or $0.12 per diluted share, for the quarter ended March 31, 2024.

    “Goodwill impairment in no way affects our ongoing strategy or our ability to serve the banking needs of our clients,” said Craig L. Montanaro, President & Chief Executive Officer. “It also has no impact on our financial condition, robust liquidity position, or peer-leading regulatory capital ratios. This impairment simply reflects the impact of the current interest rate environment on bank stock prices, including our own.”

    For the fiscal year ended June 30, 2024, the Company reported a GAAP net loss of $86.7 million, or $1.39 per diluted share, compared to GAAP net income of $40.8 million, or $0.63 per diluted share, for the fiscal year ended June 30, 2023, primarily attributable to the non-cash goodwill impairment mentioned above. Excluding the impact of the goodwill impairment and other non-recurring transactions, adjusted net income for the fiscal year ended June 30, 2024 was $28.2 million, or $0.45 per diluted share, as compared to adjusted net income of $50.6 million, or $0.78 per diluted share, for the fiscal year ended June 30, 2023.

    The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on August 26, 2024, to stockholders of record as of August 12, 2024.

    “Despite the challenging interest rate environment we have plenty of positive news to report this quarter,” Mr. Montanaro said. “The performance of our commercial real estate and multifamily portfolios continues to be outstanding, with non-performing assets having improved by $15.7 million, or 0.17% of assets, from June 30, 2023. Our deposit origination efforts, including those via our digital channel, have continued to gain traction with non interest-bearing deposits growing $12.3 million, or 2.1%, quarter-over-quarter. In addition, we now anticipate a net interest margin inflection in the near-term, as our retail time deposit portfolio has repriced above 4.00% and non-maturity deposit disintermediation has meaningfully slowed.”

    Mr. Montanaro concluded by noting, “As described in greater detail later in this release, we fully charged-off a $3.3 million non-performing commercial & industrial lending relationship this quarter. We do not view this charge-off as a reflection of any broader weakness in our loan portfolio, but rather a borrower-specific event.”

    Balance Sheet

    • Total assets were $7.68 billion at June 30, 2024, a decrease of $158.5 million, or 2.0%, from March 31, 2024 and a decrease of $381.4 million, or 4.7%, from June 30, 2023.
    • Investment securities totaled $1.21 billion at June 30, 2024, a decrease of $29.7 million, or 2.4%, from March 31, 2024 and a decrease of $165.6 million, or 12.1%, from June 30, 2023. The decrease for the year was largely driven by the sale of available-for-sale securities, which was part of the investment securities portfolio repositioning executed in December 2023.
    • Loans receivable totaled $5.73 billion at June 30, 2024, a decrease of $25.5 million, or 0.4%, from March 31, 2024 and a decrease of $96.6 million, or 1.7%, from June 30, 2023. The decrease for the year was largely driven by multi-family and nonresidential mortgage loans.
    • Deposits were $5.16 billion at June 30, 2024, a decrease of $50.9 million, or 1.0%, from March 31, 2024 and a decrease of $471.1 million, or 8.4%, from June 30, 2023. The decrease from March 31, 2024 was driven by a $40.1 million decline in interest bearing government deposits and a $36.1 million decline in retail certificates of deposits (“CDs”), partially offset by growth in non-interest bearing and consumer savings deposits. Excluding brokered CDs, deposits decreased $238.8 million, or 4.8%, from June 30, 2023, driven by a $177.9 million decline in retail CDs and a $105.2 million decline in consumer savings deposits, partially offset by growth in other deposit categories.
    • Borrowings were $1.71 billion at June 30, 2024, a decrease of $12.4 million, or 0.7%, from March 31, 2024 and an increase of $203.0 million, or 13.5%, from June 30, 2023.
    • At June 30, 2024, the Company maintained available secured borrowing capacity of $1.82 billion, of which $1.44 billion was immediately accessible via in-place collateral and $381.4 million represented the market value of unpledged securities.
    • Goodwill was $113.5 million at June 30, 2024, a decrease of $97.4 million, or 46.2%, from March 31, 2024 and June 30, 2023. The Company recognized a non-cash goodwill impairment, as noted above.

    Earnings

    Net Interest Income and Net Interest Margin

    • Net interest margin contracted five basis points to 1.84% for the quarter ended June 30, 2024 and 40 basis points to 1.94% for the year ended June 30, 2024. The decreases for the quarter and the year were driven by increases in the cost of interest-bearing liabilities, increases in the average balances of interest-bearing borrowings and decreases in the average balances of interest-earning assets, partially offset by higher yields on interest-earning assets and decreases in the average balances of interest-bearing deposits.
    • For the quarter ended June 30, 2024, net interest income decreased $1.0 million to $33.3 million from $34.3 million for the quarter ended March 31, 2024. Included in net interest income for the quarters ended June 30, 2024 and March 31, 2024, respectively, was purchase accounting accretion of $612,000 and $734,000, and loan prepayment penalty income of $366,000 and $61,000.
    • For the year ended June 30, 2024, net interest income decreased $33.3 million to $142.6 million from $175.9 million for the year ended June 30, 2023. Included in net interest income for the years ended June 30, 2024 and 2023, respectively, was purchase accounting accretion of $2.6 million and $5.3 million, and loan prepayment penalty income of $879,000 and $895,000.

    Non-Interest Income

    • For the quarter ended June 30, 2024, non-interest income increased $1.6 million to income of $5.8 million from income of $4.2 million for the quarter ended March 31, 2024. Non-interest income for the quarter ended June 30, 2024 included a contract renewal bonus of $750,000 related to a licensing agreement with a third-party vendor. Included in other income for the quarter ended March 31, 2024 was an $884,000 non-recurring loss attributable to the sale of three related nonperforming commercial real estate loans held-for-sale. No such losses were recorded during the quarter ended June 30, 2024.
    • Income from BOLI increased $170,000 to $3.2 million for the quarter ended June 30, 2024 from $3.0 million for the quarter ended March 31, 2024. BOLI income included a total of $1.1 million in non-recurring payments on two life insurance policies in the current period, partially offset by a $392,000 non-recurring exchange charge related to the December 2023 BOLI restructure. For the quarter ended March 31, 2024, BOLI income included a $631,000 non-recurring payment on one life insurance policy.
    • For the year ended June 30, 2024, non-interest income decreased $4.7 million to a loss of $2.0 million. The decrease was primarily attributable to a pre-tax loss of $18.1 million related to the investment securities portfolio repositioning executed during December 2023 compared to a pre-tax loss of $15.2 million on the sale of securities in the prior year period. Included in other income for the year ended June 30, 2023 was a nonrecurring gain of $2.9 million attributable to the sale of a former branch location. No such gains were recorded during the year ended June 30, 2024.

    Non-Interest Expense

    • For the quarter ended June 30, 2024, non-interest expense increased $97.5 million, or 335.5%, to $126.6 million from $29.1 million for the quarter ended March 31, 2024, driven by a non-cash goodwill impairment recognized in the current quarter. Excluding the goodwill impairment, adjusted non-interest expense increased $122,000, or 0.4%, to $29.2 million from $29.1 million in the prior quarter, driven primarily by a nonrecurring increase in post-retirement benefits expense.
    • For the year ended June 30, 2024, non-interest expense increased $91.4 million, or 73.9%, to $215.2 million from $123.8 million for the year ended June 30, 2023, driven by non-cash goodwill impairment, as noted above. Excluding the goodwill impairment, adjusted non-interest expense decreased $4.4 million, or 3.6%, to $117.8 million from $122.2 million in the prior year period. The decrease was primarily attributable to decreases in salary and employee benefits expenses, occupancy, advertising and other expenses, which resulted from a continued execution of the company-wide operating efficiency initiative previously announced in December 2022.
    • Salaries and employee benefits decreased $6.4 million, or 8.4%, for the year ended June 30, 2024 reflecting lower average headcount and a decrease in incentive payments tied to origination volume, partially offset by annual merit increases. Included in salaries and employee benefits for the year ended June 30, 2023 was $757,000 of severance expense from a workforce realignment.
    • For the year ended June 30, 2023, the Company recorded $800,000 in branch consolidation expense, of which $250,000 was recorded in occupancy expense and $550,000 was recorded in other expense. No such expenses were recorded during the year ended June 30, 2024.

    Income Taxes

    • Income tax expense was reduced by $917,000 for the quarter ended June 30, 2024 compared to an expense of $1.7 million for the quarter ended March 31, 2024. The decrease in income tax expense for the quarter was mainly attributable to a partial reversal of the deferred tax liability associated with the goodwill impairment, as discussed above.
    • Income tax expense totaled $5.9 million for the fiscal year ended June 30, 2024 compared to $11.6 million for the fiscal year ended June 30, 2023. The decrease in income tax expense was due to lower pre-tax income, partially offset by $5.7 million of tax expense related to the surrender of BOLI policies during the fiscal year ended June 30, 2024.

    Asset Quality

    • The balance of non-performing assets increased $336,000 to $39.9 million, or 0.52% of total assets, at June 30, 2024, from $39.5 million, or 0.50% of total assets, at March 31, 2024. The balance of non-performing assets was $55.6 million, or 0.69% of total assets, at June 30, 2023. The decrease from June 30, 2023 was primarily driven by the January 2024 sales of three related non-performing commercial real estate loans held-for-sale and the Company’s sole Other Real Estate Owned asset.
    • Net charge-offs totaled $3.5 million, or 0.25% of average loans, on an annualized basis, for the quarter ended June 30, 2024, compared to $286,000, or 0.02% of average loans, on an annualized basis, for the quarter ended March 31, 2024. For the year ended June 30, 2024, net charge-offs totaled $10.0 million, or 0.17% of average loans, compared to $810,000, or 0.01% of average loans, for the year ended June 30, 2023.
    • The charge-offs recorded during the quarter ended June 30, 2024 were primarily driven by a $3.3 million non-performing commercial and industrial loan relationship with a masonry and concrete business (the “borrower”). This relationship was originated in 2021 and is secured by the borrower’s business assets and receivables, as well as the personal guarantee of the principal. The borrower had made consistent and timely payments on these loans until recently, when the business ceased operations due to operating losses and litigation. The Company is currently pursuing all available remedies against the borrower and guarantor.
    • For the quarter ended June 30, 2024, the Company recorded a provision for credit losses of $3.5 million, compared to $349,000 for the quarter ended March 31, 2024. The provision for credit loss expense for the quarter ended June 30, 2024 was primarily driven by the charge-offs described above. For the years ended June 30, 2024 and 2023, the Company recorded a provision for credit losses of $6.2 million and $2.5 million, respectively.
    • The allowance for credit losses (“ACL”) was $44.9 million, or 0.78% of total loans, at June 30, 2024, unchanged from March 31, 2024, and a decrease of $3.8 million from $48.7 million, or 0.83% of total loans, at June 30, 2023. The decrease in the ACL from June 30, 2023 was largely attributable to a reduction in reserves for individually evaluated loans, resulting from the charge-offs noted above.

    Capital

    • At June 30, 2024 the Company's tangible equity to tangible assets ratio increased to 8.43% while the Company's Common Equity Tier 1 Capital Ratio increased to 14.79%. All of the Company's capital ratios remained strong and were significantly in excess of regulatory well-capitalized standards.
    • At June 30, 2024, book value per share totaled $11.70 while tangible book value per share totaled $9.90.
    • At June 30, 2024, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $93.0 million, partially offset by after-tax unrealized gains on derivatives of $29.6 million. After-tax net unrecognized losses on securities held to maturity of $11.7 million were not reflected in total stockholders’ equity.

    This earnings release should be read in conjunction with Kearny Financial Corp.’s Q4 2024 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.

    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

    Category: Earnings

    Linked-Quarter Comparative Financial Analysis

    Kearny Financial Corp.
    Consolidated Balance Sheets
    (Unaudited)

    (Dollars and Shares in Thousands,
    Except Per Share Data)    		June 30,
    2024    		March 31,
    2024    		Variance
    or Change    		Variance
    or Change Pct.
    Assets    
    Cash and cash equivalents$63,864 $71,027 $(7,163)-10.1%
    Securities available for sale 1,072,833  1,098,655  (25,822)-2.4%
    Securities held to maturity 135,742  139,643  (3,901)-2.8%
    Loans held-for-sale 6,036  4,117  1,919 46.6%
    Loans receivable 5,732,787  5,758,336  (25,549)-0.4%
    Less: allowance for credit losses on loans (44,939) (44,930) 9 —%
    Net loans receivable 5,687,848  5,713,406  (25,558)-0.4%
    Premises and equipment 44,940  45,053  (113)-0.3%
    Federal Home Loan Bank stock 80,300  81,347  (1,047)-1.3%
    Accrued interest receivable 29,521  31,065  (1,544)-5.0%
    Goodwill 113,525  210,895  (97,370)-46.2%
    Core deposit intangible 1,931  2,057  (126)-6.1%
    Bank owned life insurance 297,874  296,493  1,381 0.5%
    Deferred income taxes, net 50,339  47,225  3,114 6.6%
    Other assets 98,708  100,989  (2,281)-2.3%
    Total assets$7,683,461 $7,841,972 $(158,511)-2.0%
         
    Liabilities    
    Deposits:    
    Non-interest-bearing$598,366 $586,089 $12,277 2.1%
    Interest-bearing 4,559,757  4,622,961  (63,204)-1.4%
    Total deposits 5,158,123  5,209,050  (50,927)-1.0%
    Borrowings 1,709,789  1,722,178  (12,389)-0.7%
    Advance payments by borrowers for taxes 17,409  17,387  22 0.1%
    Other liabilities 44,569  44,279  290 0.7%
    Total liabilities 6,929,890  6,992,894  (63,004)-0.9%
         
    Stockholders' Equity    
    Common stock 644  644  — —%
    Paid-in capital 493,680  493,187  493 0.1%
    Retained earnings 343,326  440,308  (96,982)-22.0%
    Unearned ESOP shares (20,916) (21,402) 486 2.3%
    Accumulated other comprehensive loss (63,163) (63,659) 496 0.8%
    Total stockholders' equity 753,571  849,078  (95,507)-11.2%
    Total liabilities and stockholders' equity$7,683,461 $7,841,972 $(158,511)-2.0%
         
    Consolidated capital ratios    
    Equity to assets 9.81% 10.83% -1.02% 
    Tangible equity to tangible assets(1) 8.43% 8.34% 0.09% 
         
    Share data    
    Outstanding shares 64,434  64,437  (3)—%
    Book value per share$11.70 $13.18 $(1.48)-11.2%
    Tangible book value per share(2)$9.90 $9.87 $0.03 0.3%
                

    _________________________

    (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 (Loss)
    (Unaudited)

    (Dollars and Shares in Thousands,
    Except Per Share Data)
    		Three Months EndedVariance
    or Change
    		Variance
    or Change Pct.
    June 30,
    2024    		March 31,
    2024
    Interest income    
    Loans$65,819 $64,035 $1,784 2.8%
    Taxable investment securities 14,802  15,490  (688)-4.4%
    Tax-exempt investment securities 80  85  (5)-5.9%
    Other interest-earning assets 2,289  2,475  (186)-7.5%
    Total interest income 82,990  82,085  905 1.1%
         
    Interest expense    
    Deposits 32,187  32,320  (133)-0.4%
    Borrowings 17,527  15,446  2,081 13.5%
    Total interest expense 49,714  47,766  1,948 4.1%
    Net interest income 33,276  34,319  (1,043)-3.0%
    Provision for credit losses 3,527  349  3,178 910.6%
    Net interest income after provision for credit losses 29,749  33,970  (4,221)-12.4%
         
    Non-interest income    
    Fees and service charges 580  657  (77)-11.7%
    Gain (loss) on sale of loans 111  (712) 823 -115.6%
    Income from bank owned life insurance 3,209  3,039  170 5.6%
    Electronic banking fees and charges 1,130  464  666 143.5%
    Other income 776  755  21 2.8%
    Total non-interest income 5,806  4,203  1,603 -38.1%
         
    Non-interest expense    
    Salaries and employee benefits 17,266  16,911  355 2.1%
    Net occupancy expense of premises 2,738  2,863  (125)-4.4%
    Equipment and systems 3,785  3,823  (38)-1.0%
    Advertising and marketing 480  387  93 24.0%
    Federal deposit insurance premium 1,532  1,429  103 7.2%
    Directors' compensation 360  360  — —%
    Goodwill impairment 97,370  —  97,370 —%
    Other expense 3,020  3,286  (266)-8.1%
    Total non-interest expense 126,551  29,059  97,492 335.5%
    (Loss) income before income taxes (90,996) 9,114  (100,110)1098.4%
    Income taxes (917) 1,717  (2,634)-153.4%
    Net (loss) income $(90,079)$7,397 $(97,476)1317.8%
         
    Net (loss) income per common share (EPS)    
    Basic$(1.45)$0.12 $(1.57) 
    Diluted$(1.45)$0.12 $(1.57) 
         
    Dividends declared    
    Cash dividends declared per common share$0.11 $0.11 $—  
    Cash dividends declared$6,903 $6,844 $59  
    Dividend payout ratio -7.7% 92.5% -100.2% 
         
    Weighted average number of common shares outstanding    
    Basic 62,254  62,205  49  
    Diluted 62,254  62,211  43  
               

    Kearny Financial Corp.
    Average Balance Sheet Data
    (Unaudited)

    (Dollars in Thousands)
    		Three Months EndedVariance
    or Change
    		Variance
    or Change Pct.
    June 30,
    2024    		March 31,
    2024
    Assets    
    Interest-earning assets:    
    Loans receivable, including loans held for sale$5,743,008 $5,752,477 $(9,469)-0.2%
    Taxable investment securities 1,343,541  1,382,064  (38,523)-2.8%
    Tax-exempt investment securities 13,737  14,614  (877)-6.0%
    Other interest-earning assets 128,257  125,155  3,102 2.5%
    Total interest-earning assets 7,228,543  7,274,310  (45,767)-0.6%
    Non-interest-earning assets 466,537  577,411  (110,874)-19.2%
    Total assets$7,695,080 $7,851,721 $(156,641)-2.0%
         
    Liabilities and Stockholders' Equity    
    Interest-bearing liabilities:    
    Deposits:    
    Interest-bearing demand$2,310,521 $2,378,831 $(68,310)-2.9%
    Savings 631,622  635,226  (3,604)-0.6%
    Certificates of deposit 1,613,798  1,705,513  (91,715)-5.4%
    Total interest-bearing deposits 4,555,941  4,719,570  (163,629)-3.5%
    Borrowings:    
    Federal Home Loan Bank advances 1,507,192  1,428,801  78,391 5.5%
    Other borrowings 228,461  210,989  17,472 8.3%
    Total borrowings 1,735,653  1,639,790  95,863 5.8%
    Total interest-bearing liabilities 6,291,594  6,359,360  (67,766)-1.1%
    Non-interest-bearing liabilities:    
    Non-interest-bearing deposits 589,438  581,870  7,568 1.3%
    Other non-interest-bearing liabilities 62,978  65,709  (2,731)-4.2%
    Total non-interest-bearing liabilities 652,416  647,579  4,837 0.7%
    Total liabilities 6,944,010  7,006,939  (62,929)-0.9%
    Stockholders' equity 751,070  844,782  (93,712)-11.1%
    Total liabilities and stockholders' equity$7,695,080 $7,851,721 $(156,641)-2.0%
         
    Average interest-earning assets to average interest-bearing liabilities 114.89% 114.39% 0.50%0.4%
                

    Kearny Financial Corp.
    Performance Ratio Highlights
    (Unaudited)

     Three Months EndedVariance
    or Change
     June 30,
    2024    		March 31,
    2024
    Average yield on interest-earning assets:   
    Loans receivable, including loans held for sale4.58%4.45%0.13%
    Taxable investment securities4.41%4.48%-0.07%
    Tax-exempt investment securities (1)2.32%2.32%—%
    Other interest-earning assets7.14%7.91%-0.77%
    Total interest-earning assets4.59%4.51%0.08%
        
    Average cost of interest-bearing liabilities:   
    Deposits:   
    Interest-bearing demand3.06%3.08%-0.02%
    Savings0.63%0.46%0.17%
    Certificates of deposit3.35%3.11%0.24%
    Total interest-bearing deposits2.83%2.74%0.09%
    Borrowings:   
    Federal Home Loan Bank advances3.86%3.55%0.31%
    Other borrowings5.24%5.22%0.02%
    Total borrowings4.04%3.77%0.27%
    Total interest-bearing liabilities3.16%3.00%0.16%
        
    Interest rate spread (2)1.43%1.51%-0.08%
    Net interest margin (3)1.84%1.89%-0.05%
        
    Non-interest income to average assets (annualized)0.30%0.21%0.09%
    Non-interest expense to average assets (annualized)6.58%1.48%5.10%
        
    Efficiency ratio (4)323.81%75.43%248.38%
        
    Return on average assets (annualized)-4.68%0.38%-5.06%
    Return on average equity (annualized)-47.97%3.50%-51.47%
    Return on average tangible equity (annualized) (5)-56.69%4.68%-61.37%
           

    _________________________

    (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.
      


    Year-to-Year Comparative Financial Analysis

    Kearny Financial Corp.
    Consolidated Balance Sheets

    (Dollars and Shares in Thousands,
    Except Per Share Data)    		June 30,
    2024    		June 30,
    2023    		Variance
    or Change    		Variance
    or Change Pct.
     (Unaudited)(Audited)  
    Assets    
    Cash and cash equivalents$63,864 $70,515 $(6,651)-9.4%
    Securities available for sale 1,072,833  1,227,729  (154,896)-12.6%
    Securities held to maturity 135,742  146,465  (10,723)-7.3%
    Loans held-for-sale 6,036  9,591  (3,555)-37.1%
    Loans receivable 5,732,787  5,829,421  (96,634)-1.7%
    Less: allowance for credit losses on loans (44,939) (48,734) (3,795)-7.8%
    Net loans receivable 5,687,848  5,780,687  (92,839)-1.6%
    Premises and equipment 44,940  48,309  (3,369)-7.0%
    Federal Home Loan Bank of New York stock 80,300  71,734  8,566 11.9%
    Accrued interest receivable 29,521  28,133  1,388 4.9%
    Goodwill 113,525  210,895  (97,370)-46.2%
    Core deposit intangible 1,931  2,457  (526)-21.4%
    Bank owned life insurance 297,874  292,825  5,049 1.7%
    Deferred income tax assets, net 50,339  51,973  (1,634)-3.1%
    Other real estate owned —  12,956  (12,956)-100.0%
    Other assets 98,708  110,546  (11,838)-10.7%
    Total assets$7,683,461 $8,064,815 $(381,354)-4.7%
         
    Liabilities    
    Deposits:    
    Non-interest-bearing$598,366 $609,999 $(11,633)-1.9%
    Interest-bearing 4,559,757  5,019,184  (459,427)-9.2%
    Total deposits 5,158,123  5,629,183  (471,060)-8.4%
    Borrowings 1,709,789  1,506,812  202,977 13.5%
    Advance payments by borrowers for taxes 17,409  18,338  (929)(5.1)%
    Other liabilities 44,569  41,198  3,371 8.2%
    Total liabilities 6,929,890  7,195,531  (265,641)(3.7)%
         
    Stockholders' Equity    
    Common stock 644  659  (15)-2.3%
    Paid-in capital 493,680  503,332  (9,652)-1.9%
    Retained earnings 343,326  457,611  (114,285)-25.0%
    Unearned ESOP shares (20,916) (22,862) 1,946 -8.5%
    Accumulated other comprehensive loss (63,163) (69,456) 6,293 -9.1%
    Total stockholders' equity 753,571  869,284  (115,713)-13.3%
    Total liabilities and stockholders' equity$7,683,461 $8,064,815 $(381,354)-4.7%
         
    Consolidated capital ratios    
    Equity to assets 9.81% 10.78% -0.97% 
    Tangible equity to tangible assets(1) 8.43% 8.35% 0.08% 
         
    Share data    
    Outstanding shares 64,434  65,864  (1,430)-2.2%
    Book value per share$11.70 $13.20 $(1.50)-11.4%
    Tangible book value per share(2)$9.90 $9.96 $(0.06)-0.6%

    _________________________

    (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

     Year Ended  
    (Dollars and Shares in Thousands,
    Except Per Share Data)    		June 30,
    2024    		June 30,
    2023    		Variance
    or Change    		Variance
    or Change Pct.
     (Unaudited)(Audited)  
    Interest income    
    Loans$256,007 $233,147 $22,860 9.8%
    Taxable investment securities 63,313  54,855  8,458 15.4%
    Tax-exempt investment securities 336  694  (358)-51.6%
    Other interest-earning assets 9,212  5,028  4,184 83.2%
    Total interest income 328,868  293,724  35,144 12.0%
         
    Interest expense    
    Deposits 122,414  78,163  44,251 56.6%
    Borrowings 63,860  39,696  24,164 60.9%
    Total interest expense 186,274  117,859  68,415 58.0%
    Net interest income 142,594  175,865  (33,271)-18.9%
    Provision for credit losses 6,226  2,486  3,740 150.4%
    Net interest income after provision for credit losses 136,368  173,379  (37,011)-21.3%
         
    Non-interest income    
    Fees and service charges 2,609  3,106  (497)-16.0%
    Loss on sale and call of securities (18,135) (15,227) (2,908)19.1%
    Loss on sale of loans (282) (1,645) 1,363 -82.9%
    Loss on sale of real estate owned (974) (139) (835)600.7%
    Income from bank owned life insurance 9,076  8,645  431 5.0%
    Electronic banking fees and charges 2,357  1,759  598 34.0%
    Other income 3,356  6,252  (2,896)-46.3%
    Total non-interest income (1,993) 2,751  (4,744)-172.4%
         
    Non-interest expense    
    Salaries and employee benefits 69,220  75,589  (6,369)-8.4%
    Net occupancy expense of premises 11,033  12,036  (1,003)-8.3%
    Equipment and systems 15,223  14,577  646 4.4%
    Advertising and marketing 1,396  2,122  (726)-34.2%
    Federal deposit insurance premium 5,980  5,133  847 16.5%
    Directors' compensation 1,506  1,364  142 10.4%
    Goodwill impairment 97,370  —  97,370 —%
    Other expense 13,423  12,930  493 3.8%
    Total non-interest expense 215,151  123,751  91,400 73.9%
    (Loss) income before income taxes (80,776) 52,379  (133,155)-254.2%
    Income taxes 5,891  11,568  (5,677)-49.1%
    Net (loss) income$(86,667)$40,811 $(127,478)-312.4%
         
    Net (loss) income per common share (EPS)    
    Basic$(1.39)$0.63 $(2.02) 
    Diluted$(1.39)$0.63 $(2.02) 
         
    Dividends declared    
    Cash dividends declared per common share$0.44 $0.44 $—  
    Cash dividends declared$27,618 $28,651 $(1,033) 
    Dividend payout ratio(31.9)% 70.2%(102.1)% 
         
    Weighted average number of common shares outstanding    
    Basic 62,444  64,804  (2,360) 
    Diluted 62,444  64,804  (2,360) 
               

    Kearny Financial Corp.
    Average Balance Sheet Data
    (Unaudited)

     Year Ended  
    (Dollars in Thousands)June 30,
    2024    		June 30,
    2023    		Variance
    or Change    		Variance
    or Change Pct.
    Assets    
    Interest-earning assets:    
    Loans receivable, including loans held for sale$5,752,496 $5,827,123 $(74,627)-1.3%
    Taxable investment securities 1,438,200  1,532,961  (94,761)-6.2%
    Tax-exempt investment securities 14,718  30,332  (15,614)-51.5%
    Other interest-earning assets 131,019  115,390  15,629 13.5%
    Total interest-earning assets 7,336,433  7,505,806  (169,373)-2.3%
    Non-interest-earning assets 541,859  563,131  (21,272)-3.8%
    Total assets$7,878,292 $8,068,937 $(190,645)-2.4%
         
    Liabilities and Stockholders' Equity    
    Interest-bearing liabilities:    
    Deposits:    
    Interest-bearing demand$2,308,893 $2,349,802 $(40,909)-1.7%
    Savings 662,981  896,651  (233,670)-26.1%
    Certificates of deposit 1,778,682  2,083,864  (305,182)-14.6%
    Total interest-bearing deposits 4,750,556  5,330,317  (579,761)-10.9%
    Borrowings:    
    Federal Home Loan Bank Advances 1,458,941  1,101,658  357,283 32.4%
    Other borrowings 184,768  57,468  127,300 221.5%
    Total borrowings 1,643,709  1,159,126  484,583 41.8%
    Total interest-bearing liabilities 6,394,265  6,489,443  (95,178)-1.5%
    Non-interest-bearing liabilities:    
    Non-interest-bearing deposits 595,266  644,543  (49,277)-7.6%
    Other non-interest-bearing liabilities 64,444  59,593  4,851 8.1%
    Total non-interest-bearing liabilities 659,710  704,136  (44,426)-6.3%
    Total liabilities 7,053,975  7,193,579  (139,604)-1.9%
    Stockholders' equity 824,317  875,358  (51,041)-5.8%
    Total liabilities and stockholders' equity$7,878,292 $8,068,937 $(190,645)-2.4%
         
    Average interest-earning assets to average interest-bearing liabilities 114.73% 115.66%(0.93)%-0.8%
              

    Kearny Financial Corp.
    Performance Ratio Highlights
    (Unaudited)

     Year Ended 
     June 30,
    2024    		June 30,
    2023    		Variance
    or Change
    Average yield on interest-earning assets:   
    Loans receivable, including loans held for sale4.45%4.00%0.45%
    Taxable investment securities4.40%3.58%0.82%
    Tax-exempt investment securities (1)2.28%2.29%-0.01%
    Other interest-earning assets7.03%4.36%2.67%
    Total interest-earning assets4.48%3.91%0.57%
        
    Average cost of interest-bearing liabilities:   
    Deposits:   
    Interest-bearing demand2.91%1.73%1.18%
    Savings0.50%0.37%0.13%
    Certificates of deposit2.92%1.64%1.28%
    Total interest-bearing deposits2.58%1.47%1.11%
    Borrowings:   
    Federal Home Loan Bank Advances3.70%3.43%0.27%
    Other borrowings5.36%3.41%1.95%
    Total borrowings3.89%3.42%0.47%
    Total interest-bearing liabilities2.91%1.82%1.09%
        
    Interest rate spread (2)1.57%2.09%-0.52%
    Net interest margin (3)1.94%2.34%-0.40%
        
    Non-interest income to average assets(0.03)%0.03%-0.06%
    Non-interest expense to average assets2.73%1.53%1.20%
        
    Efficiency ratio (4)153.02%69.28%83.74%
        
    Return on average assets(1.10)%0.51%-1.61%
    Return on average equity(10.51)%4.66%-15.17%
    Return on average tangible equity (5)(13.64)%6.17%-19.81%
          

    _________________________

    (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)    		June 30,
    2024    		March 31,
    2024    		December 31,
    2023    		September 30,
    2023    		June 30,
    2023
     (Unaudited)(Unaudited)(Unaudited)(Unaudited)(Audited)
    Assets     
    Cash and cash equivalents$63,864 $71,027 $73,860 $57,219 $70,515 
    Securities available for sale 1,072,833  1,098,655  1,144,175  1,215,633  1,227,729 
    Securities held to maturity 135,742  139,643  141,959  143,730  146,465 
    Loans held-for-sale 6,036  4,117  14,030  3,934  9,591 
    Loans receivable 5,732,787  5,758,336  5,745,629  5,736,049  5,829,421 
    Less: allowance for credit losses on loans (44,939) (44,930) (44,867) (46,872) (48,734)
    Net loans receivable 5,687,848  5,713,406  5,700,762  5,689,177  5,780,687 
    Premises and equipment 44,940  45,053  45,928  46,868  48,309 
    Federal Home Loan Bank stock 80,300  81,347  83,372  81,509  71,734 
    Accrued interest receivable 29,521  31,065  30,258  29,766  28,133 
    Goodwill 113,525  210,895  210,895  210,895  210,895 
    Core deposit intangible 1,931  2,057  2,189  2,323  2,457 
    Bank owned life insurance 297,874  296,493  256,064  294,491  292,825 
    Deferred income taxes, net 50,339  47,225  46,116  56,500  51,973 
    Other real estate owned —  —  11,982  12,956  12,956 
    Other assets 98,708  100,989  136,242  129,865  110,546 
    Total assets$7,683,461 $7,841,972 $7,897,832 $7,974,866 $8,064,815 
          
    Liabilities     
    Deposits:     
    Non-interest-bearing$598,366 $586,089 $584,130 $595,141 $609,999 
    Interest-bearing 4,559,757  4,622,961  4,735,500  4,839,027  5,019,184 
    Total deposits 5,158,123  5,209,050  5,319,630  5,434,168  5,629,183 
    Borrowings 1,709,789  1,722,178  1,667,055  1,626,933  1,506,812 
    Advance payments by borrowers for taxes 17,409  17,387  16,742  16,907  18,338 
    Other liabilities 44,569  44,279  46,427  47,324  41,198 
    Total liabilities 6,929,890  6,992,894  7,049,854  7,125,332  7,195,531 
          
    Stockholders' Equity     
    Common stock 644  644  645  652  659 
    Paid-in capital 493,680  493,187  493,297  497,269  503,332 
    Retained earnings 343,326  440,308  439,755  460,464  457,611 
    Unearned ESOP shares (20,916) (21,402) (21,889) (22,375) (22,862)
    Accumulated other comprehensive loss (63,163) (63,659) (63,830) (86,476) (69,456)
    Total stockholders' equity 753,571  849,078  847,978  849,534  869,284 
    Total liabilities and stockholders' equity$7,683,461 $7,841,972 $7,897,832 $7,974,866 $8,064,815 
          
    Consolidated capital ratios     
    Equity to assets 9.81% 10.83% 10.74% 10.65% 10.78%
    Tangible equity to tangible assets(1) 8.43% 8.34% 8.26% 8.20% 8.35%
          
    Share data     
    Outstanding shares 64,434  64,437  64,445  65,132  65,864 
    Book value per share$11.70 $13.18 $13.16 $13.04 $13.20 
    Tangible book value per share(2)$9.90 $9.87 $9.85 $9.77 $9.96 
                    

    _________________________

    (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)June 30,
    2024    		March 31,
    2024    		December 31,
    2023    		September 30,
    2023    		June 30,
    2023
    Loan portfolio composition:     
    Commercial loans:     
    Multi-family mortgage$2,645,851 $2,645,195 $2,651,274 $2,699,151 $2,761,775 
    Nonresidential mortgage 948,075  965,539  947,287  946,801  968,574 
    Commercial business 142,747  147,326  144,134  149,229  146,861 
    Construction 209,237  229,457  221,933  230,703  226,609 
    Total commercial loans 3,945,910  3,987,517  3,964,628  4,025,884  4,103,819 
    One- to four-family residential mortgage 1,756,051  1,741,644  1,746,065  1,689,051  1,700,559 
    Consumer loans:     
    Home equity loans 44,104  42,731  43,517  42,896  43,549 
    Other consumer 2,685  3,198  2,728  2,644  2,549 
    Total consumer loans 46,789  45,929  46,245  45,540  46,098 
    Total loans, excluding yield adjustments 5,748,750  5,775,090  5,756,938  5,760,475  5,850,476 
    Unaccreted yield adjustments (15,963) (16,754) (11,309) (24,426) (21,055)
    Loans receivable, net of yield adjustments 5,732,787  5,758,336  5,745,629  5,736,049  5,829,421 
    Less: allowance for credit losses on loans (44,939) (44,930) (44,867) (46,872) (48,734)
    Net loans receivable$5,687,848 $5,713,406 $5,700,762 $5,689,177 $5,780,687 
          
    Asset quality:     
    Nonperforming assets:     
    Accruing loans - 90 days and over past due$— $— $— $— $— 
    Nonaccrual loans 39,882  39,546  28,089  37,912  42,627 
    Total nonperforming loans 39,882  39,546  28,089  37,912  42,627 
    Nonaccrual loans held-for-sale —  —  9,700  —  — 
    Other real estate owned —  —  11,982  12,956  12,956 
    Total nonperforming assets$39,882 $39,546 $49,771 $50,868 $55,583 
          
    Nonperforming loans (% total loans) 0.70% 0.69% 0.49% 0.66% 0.73%
    Nonperforming assets (% total assets) 0.52% 0.50% 0.63% 0.64% 0.69%
          
    Classified loans$118,700 $115,772 $94,676 $98,616 $93,526 
          
    Allowance for credit losses on loans (ACL):     
    ACL to total loans 0.78% 0.78% 0.78% 0.81% 0.83%
    ACL to nonperforming loans 112.68% 113.61% 159.73% 123.63% 114.33%
    Net charge-offs$3,518 $286 $4,110 $2,107 $82 
    Average net charge-off rate (annualized) 0.25% 0.02% 0.29% 0.15% 0.01%
                    

    Kearny Financial Corp.
    Supplemental Balance Sheet Highlights
    (Unaudited)

    (Dollars in Thousands)June 30,
    2024    		March 31,
    2024    		December 31,
    2023    		September 30,
    2023    		June 30,
    2023
    Funding composition:     
    Deposits:     
    Non-interest-bearing deposits$598,367 $586,089 $584,130 $595,141 $609,999 
    Interest-bearing demand 2,308,915  2,349,032  2,347,262  2,236,573  2,252,912 
    Savings 643,481  630,456  646,182  689,163  748,721 
    Certificates of deposit (retail) 1,199,127  1,235,261  1,283,676  1,300,382  1,377,028 
    Certificates of deposit (brokered and listing service) 408,234  408,212  458,380  612,909  640,523 
    Interest-bearing deposits 4,559,757  4,622,961  4,735,500  4,839,027  5,019,184 
    Total deposits 5,158,124  5,209,050  5,319,630  5,434,168  5,629,183 
          
    Borrowings:     
    Federal Home Loan Bank advances 1,534,789  1,457,178  1,432,055  1,456,933  1,281,812 
    Overnight borrowings 175,000  265,000  235,000  170,000  225,000 
    Total borrowings 1,709,789  1,722,178  1,667,055  1,626,933  1,506,812 
          
    Total funding$6,867,913 $6,931,228 $6,986,685 $7,061,101 $7,135,995 
          
    Loans as a % of deposits 110.4% 109.8% 107.4% 104.8% 102.9%
    Deposits as a % of total funding 75.1% 75.2% 76.1% 77.0% 78.9%
    Borrowings as a % of total funding 24.9% 24.8% 23.9% 23.0% 21.1%
          
    Uninsured deposits:     
    Uninsured deposits (reported)(1)$1,772,623 $1,760,740 $1,813,122 $1,734,288 $1,771,416 
    Uninsured deposits (adjusted)(2)$764,447 $718,026 $694,510 $683,265 $710,377 
                    

    _________________________

    (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)    		June 30,
    2024    		March 31,
    2024    		December 31,
    2023    		September 30,
    2023    		June 30,
    2023
    Interest income     
    Loans$65,819 $64,035 $63,384 $62,769 $62,044 
    Taxable investment securities 14,802  15,490  16,756  16,265  15,736 
    Tax-exempt investment securities 80  85  84  87  91 
    Other interest-earning assets 2,289  2,475  2,401  2,047  1,821 
    Total interest income 82,990  82,085  82,625  81,168  79,692 
          
    Interest expense     
    Deposits 32,187  32,320  30,340  27,567  26,226 
    Borrowings 17,527  15,446  16,446  14,441  13,286 
    Total interest expense 49,714  47,766  46,786  42,008  39,512 
    Net interest income 33,276  34,319  35,839  39,160  40,180 
    Provision for (reversal of) credit losses 3,527  349  2,105  245  (306)
    Net interest income after provision for (reversal of) credit losses 29,749  33,970  33,734  38,915  40,486 
          
    Non-interest income     
    Fees and service charges 580  657  624  748  699 
    Loss on sale and call of securities —  —  (18,135) —  — 
    Gain (loss) on sale of loans 111  (712) 104  215  199 
    Loss on sale of other real estate owned —  —  (974) —  (139)
    Income from bank owned life insurance 3,209  3,039  1,162  1,666  1,605 
    Electronic banking fees and charges 1,130  464  396  367  399 
    Other income 776  755  811  1,014  903 
    Total non-interest income 5,806  4,203  (16,012) 4,010  3,666 
          
    Non-interest expense     
    Salaries and employee benefits 17,266  16,911  17,282  17,761  17,315 
    Net occupancy expense of premises 2,738  2,863  2,674  2,758  2,862 
    Equipment and systems 3,785  3,823  3,814  3,801  3,511 
    Advertising and marketing 480  387  301  228  231 
    Federal deposit insurance premium 1,532  1,429  1,495  1,524  1,455 
    Directors' compensation 360  360  393  393  345 
    Goodwill impairment 97,370  —  —  —  — 
    Other expense 3,020  3,286  3,808  3,309  3,042 
    Total non-interest expense 126,551  29,059  29,767  29,774  28,761 
    (Loss) income before income taxes (90,996) 9,114  (12,045) 13,151  15,391 
    Income taxes (917) 1,717  1,782  3,309  3,378 
    Net (loss) income $(90,079)$7,397 $(13,827)$9,842 $12,013 
          
    Net (loss) income per common share (EPS)     
    Basic$(1.45)$0.12 $(0.22)$0.16 $0.19 
    Diluted$(1.45)$0.12 $(0.22)$0.16 $0.19 
          
    Dividends declared     
    Cash dividends declared per common share$0.11 $0.11 $0.11 $0.11 $0.11 
    Cash dividends declared$6,903 $6,844 $6,882 $6,989 $7,007 
    Dividend payout ratio -7.7% 92.5% -49.8% 71.0% 58.3%
          
    Weighted average number of common shares outstanding     
    Basic 62,254  62,205  62,299  63,014  63,667 
    Diluted 62,254  62,211  62,299  63,061  63,667 
                    

    Kearny Financial Corp.
    Average Balance Sheet Data
    (Unaudited)

     Three Months Ended
    (Dollars in Thousands)June 30,
    2024    		March 31,
    2024    		December 31,
    2023    		September 30,
    2023    		June 30,
    2023
    Assets     
    Interest-earning assets:     
    Loans receivable, including loans held-for-sale$5,743,008 $5,752,477 $5,726,321 $5,788,074 $5,932,541 
    Taxable investment securities 1,343,541  1,382,064  1,509,165  1,516,393  1,529,582 
    Tax-exempt investment securities 13,737  14,614  15,025  15,483  16,346 
    Other interest-earning assets 128,257  125,155  139,740  130,829  128,158 
    Total interest-earning assets 7,228,543  7,274,310  7,390,251  7,450,779  7,606,627 
    Non-interest-earning assets 466,537  577,411  554,335  568,723  556,962 
    Total assets$7,695,080 $7,851,721 $7,944,586 $8,019,502 $8,163,589 
          
    Liabilities and Stockholders' Equity     
    Interest-bearing liabilities:     
    Deposits:     
    Interest-bearing demand$2,310,521 $2,378,831 $2,301,169 $2,245,831 $2,321,120 
    Savings 631,622  635,226  664,926  719,508  774,854 
    Certificates of deposit 1,613,798  1,705,513  1,824,316  1,968,512  2,057,818 
    Total interest-bearing deposits 4,555,941  4,719,570  4,790,411  4,933,851  5,153,792 
    Borrowings:     
    Federal Home Loan Bank advances 1,507,192  1,428,801  1,513,497  1,386,473  1,374,316 
    Other borrowings 228,461  210,989  142,283  158,098  100,055 
    Total borrowings 1,735,653  1,639,790  1,655,780  1,544,571  1,474,371 
    Total interest-bearing liabilities 6,291,594  6,359,360  6,446,191  6,478,422  6,628,163 
    Non-interest-bearing liabilities:     
    Non-interest-bearing deposits 589,438  581,870  597,294  612,251  608,765 
    Other non-interest-bearing liabilities 62,978  65,709  62,387  66,701  64,970 
    Total non-interest-bearing liabilities 652,416  647,579  659,681  678,952  673,735 
    Total liabilities 6,944,010  7,006,939  7,105,872  7,157,374  7,301,898 
    Stockholders' equity 751,070  844,782  838,714  862,128  861,691 
    Total liabilities and stockholders' equity$7,695,080 $7,851,721 $7,944,586 $8,019,502 $8,163,589 
          
    Average interest-earning assets to average
    interest-bearing liabilities    		 114.89% 114.39% 114.65% 115.01% 114.76%
                    

    Kearny Financial Corp.
    Performance Ratio Highlights

     Three Months Ended
     June 30,
    2024    		March 31,
    2024    		December 31,
    2023    		September 30,
    2023    		June 30,
    2023
    Average yield on interest-earning assets:     
    Loans receivable, including loans held-for-sale4.58%4.45%4.43%4.34%4.18%
    Taxable investment securities4.41%4.48%4.44%4.29%4.12%
    Tax-exempt investment securities (1)2.32%2.32%2.25%2.25%2.23%
    Other interest-earning assets7.14%7.91%6.87%6.26%5.68%
    Total interest-earning assets4.59%4.51%4.47%4.36%4.19%
          
    Average cost of interest-bearing liabilities:     
    Deposits:     
    Interest-bearing demand3.06%3.08%2.91%2.58%2.38%
    Savings0.63%0.46%0.44%0.47%0.48%
    Certificates of deposit3.35%3.11%2.82%2.49%2.24%
    Total interest-bearing deposits2.83%2.74%2.53%2.23%2.04%
    Borrowings:     
    Federal Home Loan Bank advances3.86%3.55%3.82%3.54%3.51%
    Other borrowings5.24%5.22%5.65%5.46%4.89%
    Total borrowings4.04%3.77%3.97%3.74%3.60%
    Total interest-bearing liabilities3.16%3.00%2.90%2.59%2.38%
          
    Interest rate spread (2)1.43%1.51%1.57%1.77%1.81%
    Net interest margin (3)1.84%1.89%1.94%2.10%2.11%
          
    Non-interest income to average assets (annualized)0.30%0.21%-0.81%0.20%0.18%
    Non-interest expense to average assets (annualized)6.58%1.48%1.50%1.49%1.41%
          
    Efficiency ratio (4)323.81%75.43%150.13%68.97%65.60%
          
    Return on average assets (annualized)-4.68%0.38%-0.70%0.49%0.59%
    Return on average equity (annualized)-47.97%3.50%-6.59%4.57%5.58%
    Return on average tangible equity (annualized) (5)-56.69%4.68%-8.84%6.07%7.41%
               

    _________________________

    (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)    		June 30,
    2024    		March 31,
    2024    		December 31,
    2023    		September 30,
    2023    		June 30,
    2023
    Adjusted net income:     
    Net (loss) income (GAAP)$(90,079)$7,397 $(13,827)$9,842 $12,013 
    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$5,596 $7,397 $5,335 $9,842 $12,013 
          
    Calculation of pre-tax, pre-provision net revenue:     
    Net (loss) income (GAAP)$(90,079)$7,397 $(13,827)$9,842 $12,013 
    Adjustments to net income (GAAP):     
    Provision for income taxes (917) 1,717  1,782  3,309  3,378 
    Provision for (reversal of) credit losses 3,527  349  2,105  245  (306)
    Pre-tax, pre-provision net revenue (non-GAAP)$(87,469)$9,463 $(9,940)$13,396 $15,085 
          
    Adjusted earnings per share:     
    Weighted average common shares - basic 62,254  62,205  62,299  63,014  63,667 
    Weighted average common shares - diluted 62,330  62,211  62,367  63,061  63,667 
          
    Earnings per share - basic (GAAP)$(1.45)$0.12 $(0.22)$0.16 $0.19 
    Earnings per share - diluted (GAAP)$(1.45)$0.12 $(0.22)$0.16 $0.19 
          
    Adjusted earnings per share - basic (non-GAAP)$0.09 $0.12 $0.09 $0.16 $0.19 
    Adjusted earnings per share - diluted (non-GAAP)$0.09 $0.12 $0.09 $0.16 $0.19 
          
    Pre-tax, pre-provision net revenue per share:     
    Pre-tax, pre-provision net revenue per share - basic
    (non-GAAP)    		$(1.41)$0.15 $(0.16)$0.21 $0.24 
    Pre-tax, pre-provision net revenue per share - diluted
    (non-GAAP)    		$(1.41)$0.15 $(0.16)$0.21 $0.24 
          
    Adjusted return on average assets:     
    Total average assets$7,695,080 $7,851,721 $7,944,586 $8,019,502 $8,163,589 
          
    Return on average assets (GAAP) -4.68% 0.38% -0.70% 0.49% 0.59%
    Adjusted return on average assets (non-GAAP) 0.29% 0.38% 0.27% 0.49% 0.59%
          
    Adjusted return on average equity:     
    Total average equity$751,070 $844,782 $838,714 $862,128 $861,691 
          
    Return on average equity (GAAP) -47.97% 3.50% -6.59% 4.57% 5.58%
    Adjusted return on average equity (non-GAAP) 2.98% 3.50% 2.54% 4.57% 5.58%
                    

    Kearny Financial Corp.
    Reconciliation of GAAP to Non-GAAP
    (Unaudited)

     Three Months Ended
    (Dollars and Shares in Thousands,
    Except Per Share Data)    		June 30,
    2024    		March 31,
    2024    		December 31,
    2023    		September 30,
    2023    		June 30,
    2023
    Adjusted return on average tangible equity:     
    Total average equity$751,070 $844,782 $838,714 $862,128 $861,691 
    Less: average goodwill (113,525) (210,895) (210,895) (210,895) (210,895)
    Less: average other intangible assets (2,006) (2,138) (2,277) (2,411) (2,544)
    Total average tangible equity$635,539 $631,749 $625,542 $648,822 $648,252 
          
    Return on average tangible equity (non-GAAP) -56.69% 4.68% -8.84% 6.07% 7.41%
    Adjusted return on average tangible equity (non-GAAP) 3.52% 4.68% 3.41% 6.07% 7.41%
          
    Adjusted non-interest expense ratio:     
    Non-interest expense (GAAP)$126,551 $29,059 $29,767 $29,774 $28,761 
    Non-recurring transactions:     
    Goodwill impairment (97,370) —  —  —  — 
    Non-interest expense (non-GAAP)$29,181 $29,059 $29,767 $29,774 $28,761 
          
    Non-interest expense ratio (GAAP) 6.58% 1.48% 1.50% 1.49% 1.41%
    Adjusted non-interest expense ratio (non-GAAP) 1.52% 1.48% 1.50% 1.49% 1.41%
          
    Adjusted efficiency ratio:     
    Non-interest expense (non-GAAP)$29,181 $29,059 $29,767 $29,774 $28,761 
          
    Net interest income (GAAP)$33,276 $34,319 $35,839 $39,160 $40,180 
    Total non-interest income (GAAP) 5,806  4,203  (16,012) 4,010  3,666 
    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)$39,474 $38,522 $38,535 $43,170 $43,846 
          
    Efficiency ratio (GAAP) 323.81% 75.43% 150.13% 68.97% 65.60%
    Adjusted efficiency ratio (non-GAAP) 73.92% 75.43% 77.25% 68.97% 65.60%
                    

    Kearny Financial Corp.
    Reconciliation of GAAP to Non-GAAP
    (Unaudited)

     Year Ended
    (Dollars and Shares in Thousands,
    Except Per Share Data)    		June 30,
    2024    		 June 30,
    2023
    Adjusted net income:   
    Net (loss) income (GAAP)$(86,667) $40,811 
    Non-recurring transactions - net of tax:   
    Branch consolidation expenses and impairment charges —   568 
    Net effect of sale and call of securities 12,876   10,811 
    Net effect of sale of other assets —   (2,081)
    Severance expense from workforce realignment —   538 
    Net effect of bank-owned life insurance contract restructure 6,678   — 
    Goodwill impairment 95,283   — 
    Adjusted net income$28,170  $50,647 
        
    Calculation of pre-tax, pre-provision net revenue:   
    Net (loss) income (GAAP) (86,667)  40,811 
    Adjustments to net income (GAAP):   
    Provision for income taxes$5,891  $11,568 
    Provision for (reversal of) credit losses 6,226   2,486 
    Pre-tax, pre-provision net revenue (non-GAAP) (74,550)  54,865 
        
    Adjusted earnings per share:   
    Weighted average common shares - basic 62,444   64,804 
    Weighted average common shares - diluted 62,444   64,804 
        
    Earnings per share - basic (GAAP)$(1.39) $0.63 
    Earnings per share - diluted (GAAP)$(1.39) $0.63 
        
    Adjusted earnings per share - basic (non-GAAP)$0.45  $0.78 
    Adjusted earnings per share - diluted (non-GAAP)$0.45  $0.78 
        
    Pre-tax, pre-provision net revenue per share:   
    Pre-tax, pre-provision net revenue per share - basic (non-GAAP)$(1.19) $0.85 
    Pre-tax, pre-provision net revenue per share - diluted (non-GAAP)$(1.19) $0.85 
        
    Adjusted return on average assets:   
    Total average assets$7,878,292  $8,068,937 
        
    Return on average assets (GAAP) -1.10%  0.51%
    Adjusted return on average assets (non-GAAP) 0.36%  0.63%
        
    Adjusted return on average equity:   
    Total average equity$824,317  $875,358 
        
    Return on average equity (GAAP) -10.51%  4.66%
    Adjusted return on average equity (non-GAAP) 3.42%  5.79%
        
    Adjusted return on average tangible equity:   
    Total average equity$824,317  $875,358 
    Less: average goodwill (186,685)  (210,895)
    Less: average other intangible assets (2,209)  (2,757)
    Total average tangible equity$635,423  $661,706 
        
    Return on average tangible equity (non-GAAP) -13.64%  6.17%
    Adjusted return on average tangible equity (non-GAAP) 4.43%  7.65%
            

    Kearny Financial Corp.
    Reconciliation of GAAP to Non-GAAP
    (Unaudited)

     Year Ended
    (Dollars in Thousands)June 30,
    2024    		 June 30,
    2023
    Adjusted non-interest expense ratio:   
    Non-interest expense (GAAP)$215,151  $123,751 
    Non-routine transactions:   
    Branch consolidation expenses and impairment charges —   (800)
    Severance expense from workforce realignment —   (757)
    Goodwill impairment (97,370)  — 
    Non-interest expense (non-GAAP)$117,781  $122,194 
        
    Non-interest expense ratio (GAAP) 2.73%  1.53%
    Adjusted non-interest expense ratio (non-GAAP) 1.50%  1.51%
        
    Adjusted efficiency ratio:   
    Non-interest expense (non-GAAP)$117,781  $122,194 
        
    Net interest income (GAAP)$142,594  $175,865 
    Total non-interest income (GAAP) (1,993)  2,751 
    Non-routine transactions:   
    Net effect of sale and call of securities 18,135   15,227 
    Net effect of sale of other assets —   (2,931)
    Net effect of bank-owned life insurance contract restructure 965   — 
    Total revenue (non-GAAP)$159,701  $190,912 
        
    Efficiency ratio (GAAP) 153.02%  69.28%
    Adjusted efficiency ratio (non-GAAP) 73.75%  64.01%

    Primary Logo

Опубликовать