Kearny Financial : Third Quarter Fiscal 2025 Results Presentation for Third Quarter Fiscal 2025 Results
KRNY
I N V E S T O R P R E S E N T A T I O N
T H I R D Q UA R T E R F I S C A L 2 0 2 5
APRIL 24, 2025
Kearny Financial Corp.
Company Overview
NASDAQ:
KRNY
Founded:
1884
Assets:
$7.7 billion
Loans
$5.8 billion
Deposits
$5.7 billion
TBV Per Share:
$9.80
Market Cap:
$404.3 million1
Company Profile
Ranked among the top 10 New Jersey-based financial institutions by assets and deposits.
Operates 43 full-service branches across 12 counties in New Jersey
and New York City.
Active acquirer, having completed seven whole-bank acquisitions since 1999.
Focus is on helping our clients achieve their financial goals for today
and aspirations for tomorrow - creating communities that thrive.
1 As of June 30, 2024
2 As of June 30, 20243 Source: S&P Global Market Intelligence & Company Filings
Branch/Office Footprint
Source: Company Filings
3
1 As of March 31, 2025.
141 Years: Franchise
Milestones
"Serving our
Communities and
Clients"
Founded
Kearny, NJ
1884
West Essex Bank
Acquired
2004
Formed the KearnyBank foundation funded with $10M
2015
MSB Financial Corp.
Acquired
2020
Obtained Federal
Charter
1941
Completed First-Step
Mutual Conversion
& IPO of $218.2M
2005
Completed Second-Step
Conversion and $717.5M
Stock Offering
2015
Introduced Private Client
Services
2021
4
4
South Bergen Savings
Bank Acquired
1999
Central Jersey Bancorp
Acquired
2011
Converted to NJ State - Chartered Savings Bank
2017
Established Kearny Investment Services
2022
Pulaski Bancorp Acquired
2003
Atlas Bank Acquired
2014
Clifton Bancorp Acquired
2018
3Q25 Financial Highlights
Net Income: Reported net income for 3Q 2025 was $6.6 million, or $0.11 per diluted share.
Net Interest Margin: Expanded by eight basis points to 1.90% in 3Q 2025, driven by growth in loans and deposits, coupled with broad- based decreases in deposit rates.
Total Assets and Deposits: Deposit growth continued during the quarter increasing by $36.3 million to $5.7 billion, driven by growth in interest-bearing demand deposits and consumer savings deposits.
Asset Quality and Charge-offs: Asset quality remained very strong, with non-performing assets at 0.49% and nominal net charge-offs totaling 0.03% of average loans.
Net Income
GAAP
Adjusted1
$6.6 million
$6.6 million
Basic/Diluted EPS
GAAP
Adjusted1
$0.11
$0.11
Net Interest
CET-1 Ratio
Income
$34.0 million
14.48%
Total Assets
$7.7 billion
Total Deposits
Total Loans2
$5.7 billion
$5.8 billion
1 GAAP to Adjusted reconciliation on page 19. No adjustments for this quarter.
2 Excludes Yield Adjustments.
5
Source: Company Filings.
Capital Strength
Equity Capitalization Level
10.83%
9.81% 9.67% 9.63% 9.67%
8.34%
8.43%
8.31%
8.27%
8.31%
3Q24
4Q24 2
1Q25
2Q25
3Q25
Tangible Common Equity / Tangible Assets
Equity / Assets
Regulatory Capital Ratios1,2
15.32%
14.48% 14.48%
10.00%
9.22%
8.00%
6.50%
5.00%
Tier 1
Common Equity
Tier 1 Risk-Based
Total Risk-Based
Leverage
Tier 1
Capital
Capital
KRNY Well Capitalized Regulatory Minimum
1 Kearny Financial Corp. (NASDAQ: KRNY) Regulatory Capital Ratios as of March 31, 2025 are preliminary.
2 Equity to Asset ratio, for June 30, 2024 going forward, was impacted by previously disclosed goodwill impairment.
6
Source: Company Filings.
Track Record of Strong Credit Performance
Net Charge-offs to Average Total Loans
Global
Hurricane
Sandy
Cumulative charge-offs for KRNY between 2006 and 3Q25 were minimal, totaling $39.7 million.
COVID-19 Pandemic
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
3Q25
Commercial Banks (not among top 100)
KRNY
Between 2006 and 2024, including the periods of the Global Financial Crisis and the COVID-19 Pandemic, KRNY maintained an average annual net charge-off rate of 9 basis points, significantly lower than the 48 basis points average for all commercial banks (US Banks not among the top 100)1.
1 Data provided by Federal Reserve Bank of St. Louis.
7
Source: Company Filings.
Diversified Loan Portfolio
Loan Trend
($ millions)
$5,775
$5,749
$5,786
$5,800
$5,850
$988
$950
$966
$948
$951
Loan Composition1
Construction C&I
3.0% 2.4%
CRE
1-4 Family
16.9%
30.1%
QTD Yield on
Loans 4.46%
$2,645
$2,646
$2,646
$2,723
$2,733
Multi-family
46.7%
Home
Equity
0.9%
$1,742
$1,756
$1,768
$1,765
$1,761
3Q24
4Q24
1Q25
2Q25
3Q25
1-4 Family
Home Equity
Multi-family
CRE
Construction
C&I
Geographic Distribution1
Other
4.9%New York
33.4%
Pennsylvania
6.1%
LTV
60.8%
New Jersey
55.5%
1 As of March 31, 2025.
8
Source: S&P Global Market Intelligence & Company Filings.
Multifamily Loan Portfolio
Multifamily Loan Portfolio Composition1
Outside NYC
Fully NYC Rent
55.0%
Regulated
2.0%
Total MF
Majority NYC
Rent Regulated
$2.7B
3.0%
Majority NYC
Free Market
40.1%
Observations
Outstanding Asset Quality: Exceptional asset quality across multiple credit cycles.
Diversified Portfolio: Less than half of the Multifamily portfolio is in NYC, with only 5% rent-regulated.
Upcoming Loan Maturities: 11% of NYC Multifamily loans maturing or repricing in 2025.
New York City ("NYC") Multifamily1
NYC Multifamily Portfolio:
$1.2 billion
Average Loan Balance:
$3.47 million
Weighted Average LTV:
61.8%
Nonperforming Loans / Total MF Loans:
0.99%
Calendar Year 2025 Maturity & Repricing:
$137.8 million
NYC Multifamily Loan Portfolio by Location
$ in millions
Loan Value
%
Brooklyn
$813
64.1%
Queens
170
13.4%
Manhattan
140
11.1%
Bronx
144
11.4%
Total NYC MF Loan Portfolio
$1,268
100.0%
Source: Company Filings
9
1 As of March 31, 2025.
CRE Loan Detail
CRE Portfolio by Collateral Type1
Medical
Retail
4.1%
29.6%
Specialty & Other
10.3%
Total CRE
$988M
Industrial
18.7%
Mixed Use
24.7%
Office 12.6%
CRE Loan Geographic Distribution1
New York (Ex.
Pennsylvania
4.3%
Brooklyn)
26.9%
Other
4.4%
LTV
Brooklyn50.8%
9.2%
New Jersey
55.2%
Source: Company Filings.
10
1 As of March 31, 2025.
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 12:51 UTC.