Kearny Financial : Third Quarter Fiscal 2025 Results Press Release for Kearny Financial Corp. Announces Third Quarter Fiscal 2025 Results and Declaration of Cash Dividend

Published: 2025-04-24 08:36:06 ET KRNY

FOR IMMEDIATE RELEASE

April 24, 2025

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

KEARNY FINANCIAL CORP. ANNOUNCES THIRD QUARTER FISCAL 2025 RESULTS

AND DECLARATION OF CASH DIVIDEND

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

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

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

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

Balance Sheet

Earnings

Net Interest Income and Net Interest Margin

Non-Interest Income

Non-Interest Expense

Income Taxes

Asset Quality

Capital

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

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

Category: Earnings

Linked-Quarter Comparative Financial Analysis

Kearny Financial Corp.

Consolidated Balance Sheets

(Unaudited)

(Dollars and Shares in Thousands,

March 31,

December 31,

Variance

Except Per Share Data)

2025

2024

or Change

or Change Pct.

Assets

Cash and cash equivalents Securities available for sale Securities held to maturity Loans held-for-sale Loans receivable

Less: allowance for credit losses on loans Net loans receivable

Premises and equipment Federal Home Loan Bank stock Accrued interest receivable Goodwill

Core deposit intangible Bank owned life insurance Deferred income taxes, net Other assets

Total assets

Liabilities

Deposits: Non-interest-bearing Interest-bearing

Total deposits Borrowings

Advance payments by borrowers for taxes Other liabilities

Total liabilities

Stockholders' Equity

Common stock Paid-in capital Retained earnings Unearned ESOP shares

Accumulated other comprehensive loss Total stockholders' equity

Total liabilities and stockholders' equity

Consolidated capital ratios

Equity to assets

Tangible equity to tangible assets (1)

Share data

Outstanding shares Book value per share Tangible book value per share (2)

126,095

141,554

(15,459)

-10.9%

1,003,393

1,018,279

(14,886)

-1.5%

124,859

127,266

(2,407)

-1.9%

6,187

5,695

492

8.6%

5,846,175

5,791,758

54,417

0.9%

(44,455)

(44,457)

(2)

-0.0%

5,801,720

5,747,301

54,419

0.9%

44,192

45,127

(935)

-2.1%

62,261

64,443

(2,182)

-3.4%

28,521

27,772

749

2.7%

113,525

1,554

1,679

(125)

-7.4%

303,629

301,339

2,290

0.8%

52,913

53,325

(412)

-0.8%

64,292

84,080

(19,788)

-23.5%

7,733,141

7,731,385

1,756

0.0%

587,118

601,510

(14,392)

-2.4%

5,120,230

5,069,550

50,680

1.0%

5,707,348

5,671,060

36,288

0.6%

1,213,976

1,258,949

(44,973)

-3.6%

19,981

17,986

1,995

11.1%

43,723

38,537

5,186

13.5%

6,985,028

6,986,532

(1,504)

-0.0%

646

494,131

494,092

0.0%

341,921

342,155

(234)

-0.1%

(19,457)

(19,943)

486

2.4%

(69,128)

(72,097)

2,969

4.1%

748,113

744,853

3,260

0.4%

7,733,141

7,731,385

1,756

0.0%

9.67 %

9.63 %

0.04%

8.31 %

8.27 %

0.04%

64,580

11.58

11.53

0.05

0.4%

9.80

9.75

0.05

0.5%

_________________________

Kearny Financial Corp.

Consolidated Statements of Income

(Unaudited)

Three Months Ended

(Dollars and Shares in Thousands,

March 31,

December 31,

Variance

Except Per Share Data)

2025

2024

or Change

or Change Pct.

Interest income

Loans

64,768

65,408

(640)

-1.0%

Taxable investment securities

12,738

13,803

(1,065)

-7.7%

Tax-exempt investment securities

(4)

-6.8%

Other interest-earning assets

1,773

2,215

(442)

-20.0%

Total interest income

79,334

81,485

(2,151)

-2.6%

Interest expense

Deposits

34,912

36,721

(1,809)

-4.9%

Borrowings

10,380

12,152

(1,772)

-14.6%

Total interest expense

45,292

48,873

(3,581)

-7.3%

Net interest income

34,042

32,612

1,430

4.4%

Provision for credit losses

366

107

259

242.1%

Net interest income after provision for credit losses

33,676

32,505

1,171

3.6%

Non-interest income

Fees and service charges

573

627

(54)

-8.6%

Gain on sale of loans

112

304

(192)

-63.2%

Income from bank owned life insurance

2,617

2,619

(2)

-0.1%

Electronic banking fees and charges

391

493

(102)

-20.7%

Other income

869

830

4.7%

Total non-interest income

4,562

4,873

(311)

-6.4%

Non-interest expense

Salaries and employee benefits

17,700

17,579

121

0.7%

Net occupancy expense of premises

3,075

2,831

244

8.6%

Equipment and systems

3,921

3,892

0.7%

Advertising and marketing

609

311

298

95.8%

Federal deposit insurance premium

1,450

1,503

(53)

-3.5%

Directors' compensation

326

361

(35)

-9.7%

Other expense

3,309

3,084

225

7.3%

Total non-interest expense

30,390

29,561

829

2.8%

Income before income taxes

7,848

7,817

0.4%

Income taxes

1,200

1,251

(51)

-4.1%

Net income

6,648

6,566

1.2%

Net income per common share (EPS)

Basic

0.11

Diluted

0.11

0.10

0.01

Dividends declared

Cash dividends declared per common share

0.11

Cash dividends declared

6,933

Dividend payout ratio

104.3%

105.6%

-1.3%

Weighted average number of common shares outstanding

Basic

62,548

62,443

105

Diluted

62,713

62,576

137

Kearny Financial Corp.

Average Balance Sheet Data

(Unaudited)

Three Months Ended

(Dollars in Thousands)

March 31,

December 31,

Variance

2025

2024

or Change

or Change Pct.

Assets

Interest-earning assets:

Loans receivable, including loans held for sale

5,805,045

5,762,053

42,992

0.7%

Taxable investment securities

1,251,612

1,285,800

(34,188)

-2.7%

Tax-exempt investment securities

9,135

9,711

(576)

-5.9%

Other interest-earning assets

110,736

116,354

(5,618)

-4.8%

Total interest-earning assets

7,176,528

7,173,918

2,610

0.0%

Non-interest-earning assets

457,206

459,982

(2,776)

-0.6%

Total assets

7,633,734

7,633,900

(166)

-0.0%

Liabilities and Stockholders' Equity

Interest-bearing liabilities:

Deposits:

Interest-bearing demand

2,405,974

2,314,378

91,596

4.0%

Savings

751,243

711,801

39,442

5.5%

Certificates of deposit (retail)

1,215,767

1,216,948

(1,181)

-0.1%

Certificates of deposit (brokered)

730,612

730,773

(161)

-0.0%

Total interest-bearing deposits

5,103,596

4,973,900

129,696

2.6%

Borrowings:

Federal Home Loan Bank advances

1,028,958

1,085,455

(56,497)

-5.2%

Other borrowings

93,389

156,522

(63,133)

-40.3%

Total borrowings

1,122,347

1,241,977

(119,630)

-9.6%

Total interest-bearing liabilities

6,225,943

6,215,877

10,066

0.2%

Non-interest-bearing liabilities:

Non-interest-bearing deposits

602,647

604,915

(2,268)

-0.4%

Other non-interest-bearing liabilities

59,919

65,258

(5,339)

-8.2%

Total non-interest-bearing liabilities

662,566

670,173

(7,607)

-1.1%

Total liabilities

6,888,509

6,886,050

2,459

0.0%

Stockholders' equity

745,225

747,850

(2,625)

-0.4%

Total liabilities and stockholders' equity

7,633,734

7,633,900

(166)

-0.0%

Average interest-earning assets to average interest-bearing liabilities

115.27%

115.41%

-0.14%

-0.1%

Kearny Financial Corp.

Performance Ratio Highlights

(Unaudited)

Three Months Ended

March 31,

December 31,

Variance

2025

2024

or Change

Average yield on interest-earning assets:

Loans receivable, including loans held for sale

4.46%

4.54%

-0.08%

Taxable investment securities

4.07%

4.29%

-0.22%

Tax-exempt investment securities (1)

2.43%

2.42%

0.01%

Other interest-earning assets

6.40%

7.62%

-1.22%

Total interest-earning assets

4.42%

4.54%

-0.12%

Average cost of interest-bearing liabilities:

Deposits:

Interest-bearing demand

2.73%

2.96%

-0.23%

Savings

1.30%

1.29%

0.01%

Certificates of deposit (retail)

3.73%

4.06%

-0.33%

Certificates of deposit (brokered)

2.58%

2.70%

-0.12%

Total interest-bearing deposits

2.74%

2.95%

-0.21%

Borrowings:

Federal Home Loan Bank advances

3.63%

3.78%

-0.15%

Other borrowings

4.41%

4.88%

-0.47%

Total borrowings

3.70%

3.91%

-0.21%

Total interest-bearing liabilities

2.91%

3.15%

-0.24%

Interest rate spread (2)

1.51%

1.39%

0.12%

Net interest margin (3)

1.90%

1.82%

0.08%

Non-interest income to average assets (annualized)

0.24%

0.26%

-0.02%

Non-interest expense to average assets (annualized)

1.59%

1.55%

0.04%

Efficiency ratio (4)

78.72%

78.86%

-0.14%

Return on average assets (annualized)

0.35%

0.34%

0.01%

Return on average equity (annualized)

3.57%

3.51%

0.06%

Return on average tangible equity (annualized) (5)

4.28%

4.21%

0.07%

_________________________

Five-Quarter Financial Trend Analysis

Kearny Financial Corp.

Consolidated Balance Sheets

(Dollars and Shares in Thousands,

March 31,

December 31,

September 30,

June 30,

March 31,

Except Per Share Data)

2025

2024

(Unaudited)

(Audited)

(Unaudited)

Assets

Cash and cash equivalents

126,095

141,554

155,574

63,864

71,027

Securities available for sale

1,003,393

1,018,279

1,070,811

1,072,833

1,098,655

Securities held to maturity

124,859

127,266

132,256

135,742

139,643

Loans held-for-sale

6,187

5,695

8,866

6,036

4,117

Loans receivable

5,846,175

5,791,758

5,784,246

5,732,787

5,758,336

Less: allowance for credit losses on loans

(44,455)

(44,457)

(44,923)

(44,939)

(44,930)

Net loans receivable

5,801,720

5,747,301

5,739,323

5,687,848

5,713,406

Premises and equipment

44,192

45,127

45,189

44,940

45,053

Federal Home Loan Bank stock

62,261

64,443

57,706

80,300

81,347

Accrued interest receivable

28,521

27,772

29,467

29,521

31,065

Goodwill

113,525

210,895

Core deposit intangible

1,554

1,679

1,805

1,931

2,057

Bank owned life insurance

303,629

301,339

300,186

297,874

296,493

Deferred income taxes, net

52,913

53,325

50,131

50,339

47,225

Other assets

64,292

84,080

67,540

98,708

100,989

Total assets

7,733,141

7,731,385

7,772,379

7,683,461

7,841,972

Liabilities

Deposits:

Non-interest-bearing

587,118

601,510

592,099

598,366

586,089

Interest-bearing

5,120,230

5,069,550

4,878,413

4,559,757

4,622,961

Total deposits

5,707,348

5,671,060

5,470,512

5,158,123

5,209,050

Borrowings

1,213,976

1,258,949

1,479,888

1,709,789

1,722,178

Advance payments by borrowers for taxes

19,981

17,986

17,824

17,409

17,387

Other liabilities

43,723

38,537

52,618

44,569

44,279

Total liabilities

6,985,028

6,986,532

7,020,842

6,929,890

6,992,894

Stockholders' Equity

Common stock

646

644

Paid-in capital

494,131

494,092

493,523

493,680

493,187

Retained earnings

341,921

342,155

342,522

343,326

440,308

Unearned ESOP shares

(19,457)

(19,943)

(20,430)

(20,916)

(21,402)

Accumulated other comprehensive loss

(69,128)

(72,097)

(64,724)

(63,163)

(63,659)

Total stockholders' equity

748,113

744,853

751,537

753,571

849,078

Total liabilities and stockholders' equity

7,733,141

7,731,385

7,772,379

7,683,461

7,841,972

Consolidated capital ratios

Equity to assets

9.67%

9.63%

9.67%

9.81%

10.83%

Tangible equity to tangible assets (1)

8.31%

8.27%

8.31%

8.43%

8.34%

Share data

Outstanding shares

64,580

64,434

64,437

Book value per share

11.58

11.53

11.64

11.70

13.18

Tangible book value per share (2)

9.80

9.75

9.85

9.90

9.87

_________________________

Kearny Financial Corp.

Supplemental Balance Sheet Highlights

(Unaudited)

(Dollars in Thousands)

March 31,

December 31,

September 30,

June 30,

March 31,

2025

2024

Loan portfolio composition:

Commercial loans:

Multi-family mortgage

2,733,406

2,722,623

2,646,187

2,645,851

2,645,195

Nonresidential mortgage

988,074

950,194

950,771

948,075

965,539

Commercial business

140,224

135,740

145,984

142,747

147,326

Construction

174,722

176,704

227,327

209,237

229,457

Total commercial loans

4,036,426

3,985,261

3,970,269

3,945,910

3,987,517

One- to four-family residential mortgage

1,761,465

1,765,160

1,768,230

1,756,051

1,741,644

Consumer loans:

Home equity loans

49,699

47,101

44,741

44,104

42,731

Other consumer

2,859

2,778

2,965

2,685

3,198

Total consumer loans

52,558

49,879

47,706

46,789

45,929

Total loans, excluding yield adjustments

5,850,449

5,800,300

5,786,205

5,748,750

5,775,090

Unaccreted yield adjustments

(4,274)

(8,542)

(1,959)

(15,963)

(16,754)

Loans receivable, net of yield adjustments

5,846,175

5,791,758

5,784,246

5,732,787

5,758,336

Less: allowance for credit losses on loans

(44,455)

(44,457)

(44,923)

(44,939)

(44,930)

Net loans receivable

5,801,720

5,747,301

5,739,323

5,687,848

5,713,406

Asset quality:

Nonperforming assets:

Accruing loans - 90 days and over past due

Nonaccrual loans

37,683

37,697

39,854

39,882

39,546

Total nonperforming loans

37,683

37,697

39,854

39,882

39,546

Nonaccrual loans held-for-sale

Other real estate owned

Total nonperforming assets

37,683

37,697

39,854

39,882

39,546

Nonperforming loans (% total loans)

0.64%

0.65%

0.69%

0.70%

0.69%

Nonperforming assets (% total assets)

0.49%

0.51%

0.52%

0.50%

Classified loans

125,790

132,216

119,534

118,700

115,772

Allowance for credit losses on loans (ACL):

ACL to total loans

0.76%

0.77%

0.78%

ACL to nonperforming loans

117.97%

117.93%

112.72%

112.68%

113.61%

Net charge-offs

368

573

124

3,518

286

Average net charge-off rate (annualized)

0.03%

0.04%

0.01%

0.25%

0.02%

Kearny Financial Corp.

Supplemental Balance Sheet Highlights

(Unaudited)

(Dollars in Thousands)

March 31,

December 31,

September 30,

June 30,

March 31,

2025

2024

Funding composition:

Deposits:

Non-interest-bearing deposits

587,118

601,510

592,099

598,367

586,089

Interest-bearing demand

2,410,925

2,380,408

2,247,685

2,308,915

2,349,032

Savings

758,239

742,266

681,709

643,481

630,456

Certificates of deposit (retail)

1,218,479

1,213,887

1,215,746

1,199,127

1,235,261

Certificates of deposit (brokered)

732,587

732,989

733,273

408,234

408,212

Interest-bearing deposits

5,120,230

5,069,550

4,878,413

4,559,757

4,622,961

Total deposits

5,707,348

5,671,060

5,470,512

5,158,124

5,209,050

Borrowings:

Federal Home Loan Bank advances

1,028,976

1,028,949

1,209,888

1,534,789

1,457,178

Overnight borrowings

185,000

230,000

270,000

175,000

265,000

Total borrowings

1,213,976

1,258,949

1,479,888

1,709,789

1,722,178

Total funding

6,921,324

6,930,009

6,950,400

6,867,913

6,931,228

Loans as a % of deposits

101.8%

101.4%

105.1%

110.4%

109.8%

Deposits as a % of total funding

82.5%

81.8%

78.7%

75.1%

75.2%

Borrowings as a % of total funding

17.5%

18.2%

21.3%

24.9%

24.8%

Uninsured deposits:

Uninsured deposits (reported) (1)

1,959,070

1,935,607

1,799,726

1,772,623

1,760,740

Uninsured deposits (adjusted) (2)

799,238

797,721

773,375

764,447

718,026

_________________________

Disclaimer

Kearny Financial Corporation published this content on April 24, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 24, 2025 at 12:35 UTC.