FAIRFIELD, N.J., Jan. 30, 2025 (GLOBE NEWSWIRE) -- Kearny Financial Corp. (NASDAQ GS: KRNY) (the "Company"), the holding company of Kearny Bank (the "Bank"), reported net income for the quarter ended 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, or
Sean Byrnes, Executive Vice President and Chief Financial Officer
Kearny 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 | % | ||
_________________________
(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 | % |
_________________________
(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 | % | |||||
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