Financial Position - Total assets decreased by $92.4 million to $7.65 billion at September 30, 2025, from $7.74 billion at June 30, 2025[115] - Net loans receivable decreased by $44.4 million, or 0.8%, to $5.72 billion at September 30, 2025, from $5.77 billion at June 30, 2025[119] - Nonperforming assets increased by $19.0 million to $64.6 million, or 0.84% of total assets, at September 30, 2025[123] - Total deposits decreased by $43.3 million, or 0.8%, to $5.63 billion at September 30, 2025, from $5.68 billion at June 30, 2025[127] - Stockholders' equity increased by $7.2 million to $753.2 million at September 30, 2025, driven by net income of $9.5 million[132] Income Statement - Net income for the quarter ended September 30, 2025, was $9.5 million, or $0.15 per diluted share, compared to $6.1 million, or $0.10 per diluted share, for the same quarter in 2024[134] - Net interest income increased by $5.3 million to $37.7 million for the quarter ended September 30, 2025, compared to $32.4 million for the same quarter in 2024[135] - Net interest margin increased by 30 basis points to 2.10% for the quarter ended September 30, 2025, from 1.80% for the same quarter in 2024[136] - Total non-interest income increased by $1.2 million to $5.8 million for the quarter ended September 30, 2025, compared to $4.6 million for the same quarter in 2024[144] - Provision for credit losses recorded a reversal of $82,000 for the quarter ended September 30, 2025, compared to a provision of $108,000 for the same quarter in 2024[143] - Total non-interest expense increased by $1.9 million to $31.7 million for the quarter ended September 30, 2025, compared to $29.8 million for the same quarter in 2024[146] - Salaries and employee benefits increased by $1.2 million to $18.7 million for the quarter ended September 30, 2025, from $17.5 million for the same quarter in 2024[147] Liquidity and Capital - Liquidity included $130.1 million of short-term cash and cash equivalents and $1.02 billion of investment securities available for sale as of September 30, 2025[154] - Commitments to originate and purchase loans totaled $72.1 million as of September 30, 2025, compared to $26.4 million at June 30, 2025[155] - As of September 30, 2025, the total capital to risk-weighted assets ratio was 14.66%, exceeding the minimum regulatory requirement of 8.00%[158] - The Tier 1 capital to risk-weighted assets ratio was 13.70% as of September 30, 2025, above the minimum requirement of 6.00%[158] - Common equity tier 1 capital to risk-weighted assets ratio stood at 13.70% on September 30, 2025, surpassing the minimum of 4.50%[158] - The total capital to risk-weighted assets ratio increased from 14.49% on June 30, 2025, to 14.66% on September 30, 2025[158] - The Tier 1 capital to adjusted total assets ratio was 8.73% as of September 30, 2025, exceeding the minimum requirement of 4.00%[158] Interest Rate Sensitivity - The Economic Value of Equity (EVE) decreased by 34.77% to $437,413 under a +300 basis points interest rate scenario as of September 30, 2025[166] - Net interest income (NII) decreased by 9.61% to $140,548 under a +300 basis points interest rate scenario as of September 30, 2025[166] - The company maintains an Asset/Liability Management program to manage interest rate risk, overseen by the Board of Directors[162] - The sensitivity of projected NII is calculated using a static balance sheet assumption, with adjustments for product pricing and prepayment speeds[163] Loan Activity - Commercial loan origination volume for the three months ended September 30, 2025, totaled $61.4 million[119] - Construction loans in process were $137.4 million at September 30, 2025, compared to $115.7 million at June 30, 2025[156]

Financial Performance - Net income for Q1 FY 2026 was $9.5 million, or $0.15 per diluted share, a 39.7% increase from $6.8 million, or $0.11 per diluted share, in the previous quarter[1] - Earnings per share increased by 36.4% quarter-over-quarter, while pre-tax, pre-provision earnings per share rose by 18.8% to $0.19[6] - Net income increased by $2,737, or 40.4%, from $6,769 to $9,506[22] - Net income for Q3 2025 reached $9,506,000, representing a 40.7% increase from $6,769,000 in Q2 2025[37] - Adjusted net income for the same period was $9,152,000, compared to $6,769,000 in the prior quarter[46] Interest Income and Margin - Net interest margin expanded by 10 basis points to 2.10%, with net interest income increasing by 5.2% to $37.7 million[6] - Net interest income rose by $1,861, or 5.2%, from $35,843 to $37,704[22] - Net interest income after provision for credit losses rose to $37,786,000, up 10.1% from $34,058,000 in the previous quarter[37] - Average yield on interest-earning assets increased to 4.61% in September 2025 from 4.48% in June 2025, a change of 0.13%[26] - Net interest margin improved to 2.10% in September 2025, up from 2.00% in June 2025, reflecting a 0.10% increase[26] Asset and Liability Management - Total assets decreased by $92.4 million, or 1.2%, to $7.65 billion, while loans receivable decreased by $45.5 million, or 0.8%, to $5.77 billion[6] - Total assets decreased to $7,648,010 thousand in September 2025 from $7,740,450 thousand in June 2025, a decline of $92,440 thousand[29] - Total liabilities decreased by $99,682, or 1.4%, from $6,994,488 to $6,894,806[19] - Total liabilities were $6,874,176,000, a decrease from $6,894,695,000 in Q2 2025[39] Deposits and Loans - Deposits were $5.63 billion, down $43.3 million, or 0.8%, primarily due to declines in interest-bearing demand deposits and CDs[6] - Total deposits decreased to $5,631,882 thousand in September 2025 from $5,675,217 thousand in June 2025, a decrease of $43,335 thousand[29] - Total loans, excluding yield adjustments, decreased to $5,767,601 thousand from $5,814,539 thousand, a decline of 0.8% quarter-over-quarter[32] - Loans as a percentage of deposits remained stable at 101.7% for the current quarter[34] Non-Interest Income and Expense - Non-interest income increased by 17.2% to $5.8 million, driven by a non-recurring pre-tax gain of $749,000 on the sale of property[12] - Non-interest income increased to $5,847,000, a 17.2% rise compared to $4,991,000 in Q2 2025[37] - Non-interest expense rose by 2.5% to $31.7 million, mainly due to increases in salary and benefits and net occupancy costs[12] - Non-interest expense (GAAP) for the quarter was $31,666,000, an increase from $30,893,000 in the previous quarter[48] Asset Quality - The balance of non-performing assets increased to $64.6 million, or 0.84% of total assets, from $45.6 million, or 0.59%, in the previous quarter[17] - Nonperforming loans increased to $64,579 thousand, representing 1.12% of total loans, up from 0.78% in the previous quarter[32] - Total nonperforming assets increased to $64,579 thousand, up from $45,597 thousand in the previous quarter[32] - The allowance for credit losses on loans (ACL) to total loans ratio was 0.78%, slightly down from 0.79% in the previous quarter[32] Efficiency and Returns - Efficiency ratio improved to 72.71% in September 2025 from 75.66% in June 2025, a reduction of 2.95%[26] - Return on average assets (annualized) rose to 0.50% in September 2025, compared to 0.35% in June 2025, an increase of 0.15%[26] - Return on average assets (annualized) improved to 0.50% from 0.35% in the previous quarter[46] - Return on average equity (annualized) increased to 5.10% from 3.64% in the previous quarter[46] Shareholder Information - The dividend payout ratio improved by 29.4% from 102.6% to 73.2%[22] - The dividend payout ratio for Q3 2025 was 73.2%, down from 102.6% in Q2 2025[37] - Outstanding shares increased by 162, or 0.3%, from 64,577 to 64,739[19] - Book value per share increased by $0.08, or 0.7%, from $11.55 to $11.63[19] - Tangible book value per share rose to $9.86 in September 2025 from $9.77 in June 2025[29]

Core Insights - Kearny Financial Corp. reported a net income of $9.5 million for Q3 2025, an increase from $6.8 million in Q2 2025, translating to earnings per diluted share of $0.15 compared to $0.11 [1][3][22] - The company declared a quarterly cash dividend of $0.11 per share, payable on November 19, 2025 [2] Financial Performance - Net interest margin expanded by 10 basis points to 2.10%, with net interest income increasing by 5.2% to $37.7 million [6][10] - Earnings per share increased by 36.4% quarter-over-quarter, driven by net interest margin expansion and controlled expenses [3][6] - Non-interest income rose by 17.2% to $5.8 million, primarily due to a non-recurring pre-tax gain on property sale [10][22] Balance Sheet Highlights - Total assets decreased by $92.4 million, or 1.2%, to $7.65 billion as of September 30, 2025 [6][18] - Loans receivable totaled $5.77 billion, a decrease of $45.5 million, or 0.8%, primarily due to a decline in multifamily mortgage loans [6][18] - Deposits were $5.63 billion, down $43.3 million, or 0.8%, driven by declines in interest-bearing demand deposits and CDs [6][18] Asset Quality - Non-performing assets increased to $64.6 million, or 0.84% of total assets, from $45.6 million, or 0.59% of total assets, primarily due to a single construction loan [16] - Net charge-offs totaled $1.0 million, or 0.07% of average loans, compared to $49,000 in the previous quarter [16] Capital and Equity - Book value per share increased by $0.08, or 0.7%, to $11.63, while tangible book value per share rose by $0.09, or 0.9%, to $9.86 [16][19] - The company's tangible equity to tangible assets ratio was 8.47%, with regulatory capital ratios exceeding the levels required to be classified as "well-capitalized" [16][18]

I N V E S T O R P R E S E N T A T I O N F I R S T Q U A R T E R F I S C A L 2 0 2 6 October 23, 2025 Forward Looking Statements & Financial Measures This presentation may include certain "forward-looking statements," which are made in good faith by Kearny Financial Corp. (the "Company") pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties, such as statements of the Company's plans, objectives ...

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Points - The Annual Meeting of Stockholders of Kearny Financial Corp. is being conducted virtually, with participation from the Board of Directors and executive team [1][2][3] - Craig Montanaro serves as the President, CEO, and Chairperson of the meeting, welcoming attendees and expressing appreciation for their participation [2][3] - The meeting includes a formal acknowledgment of key personnel, including the Corporate Secretary and representatives from various firms [4] Meeting Conduct - Attendees are instructed to follow rules of conduct available on the meeting portal, with a Q&A feature for submitting written questions related to business matters [5]

Financial Data and Key Metrics Changes - As of September 30, 2025, the company reported a market capitalization of $425 million, total assets of $7.7 billion, loans of $5.8 billion, deposits of $5.7 billion, and capital of $700 million [9] - The tangible book value per share was reported at $9.77 [9] - Net interest income (NII) increased from $32 million to nearly $36 million, with net interest margin growing from 1.8% to 2% [12][10] - Pre-tax, pre-provision net revenue rose from approximately $7.2 million in the first quarter to $9.9 million by the fourth quarter, while pre-tax, pre-provision EPS per share increased from $0.12 to $0.16 [13] Business Line Data and Key Metrics Changes - The company is focusing on organic growth and cross-selling within its existing client base, aiming to deepen wallet share [15] - The investment services group has generated total sales of $486 million and gross revenue of $8.7 million, with assets under management at $369 million [20] Market Data and Key Metrics Changes - The company operates 43 branches across 12 counties in New Jersey and New York, with plans to close three branches, resulting in a network of 40 branches [9][10] - The company is positioned to benefit from a declining cost of funds and a more favorable yield curve, which is expected to enhance overall net income [10][17] Company Strategy and Development Direction - The company is shifting from a defensive posture to an offensive strategy focused on organic expansion and technology integration [10] - There is a strong emphasis on operational efficiency through technology, including the launch of an AI chatbot and a new HR timekeeping application for small and medium-sized businesses [11][12] - The company aims to strengthen core deposits and improve profitability through disciplined cost management and technology adoption [16][18] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges posed by an inverted yield curve and high Fed Funds rates but expressed optimism about returning to growth [10] - The focus will be on relationship banking, optimizing loan portfolio performance, and enhancing community engagement [15][16] - The company is well-positioned for earnings growth in a declining rate environment due to its liability-sensitive structure [17] Other Important Information - The company has a strong track record of credit performance, with cumulative charge-offs of $39.8 million over nearly 20 years [14] - The company has been recognized for its investment services, ranking in the top 4% nationwide in gross revenue among peer institutions [21] Q&A Session Summary Question: Qualifications of elected directors - The qualifications of the directors being elected were addressed, with details available in the proxy statement [7][8] Question: Future growth strategies - Management discussed the focus on organic growth, technology integration, and enhancing client engagement as key strategies moving forward [15][16]

Financial Data and Key Metrics Changes - As of September 30, 2025, the company reported a market capitalization of $425 million, total assets of $7.7 billion, loans of $5.8 billion, deposits of $5.7 billion, and capital of $700 million [9] - The tangible book value per share was reported at $9.77 [9] - Net interest income (NII) increased from $32 million to nearly $36 million, with net interest margin growing from 1.8% to 2% [12][10] Business Line Data and Key Metrics Changes - The company is focusing on organic growth and has launched several technology initiatives, including an AI chatbot and a virtual agent for client transactions [11][12] - The investment services group has generated total sales of $486 million and gross revenue of $8.7 million, with assets under management at $369 million [20][21] Market Data and Key Metrics Changes - The company operates 43 branches across 12 counties in New Jersey and New York, with plans to close three branches, resulting in a network of 40 branches [9][10] - Kearny Financial is ranked as the 10th largest financial institution in the state in terms of deposits [9] Company Strategy and Development Direction - The company is shifting from a defensive posture to an offensive strategy focused on organic expansion and deepening client relationships [10][15] - There is a strong emphasis on technology to improve operational efficiency and client service, with ongoing investments in AI and automation [18][19] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges posed by an inverted yield curve and high Fed Funds rates but expressed optimism about improved margins and net income as conditions normalize [10][11] - The focus will be on strengthening core deposits and enhancing operational efficiency through technology [16][17] Other Important Information - The company has a disciplined approach to mergers and acquisitions, having completed seven successful transactions since 1999 [10] - The company has maintained strong credit performance with minimal charge-offs over the years [14] Q&A Session Summary Question: Qualifications of elected directors - The qualifications of the directors were outlined in the proxy statement, confirming their suitability for election [7][8] Question: Future growth strategies - Management discussed the focus on organic growth, cross-selling, and enhancing client engagement through technology [15][16]

Financial Data and Key Metrics Changes - The company's market capitalization as of September 30, 2025, was $425 million, with total assets of $7.7 billion, loans amounting to $5.8 billion, deposits of $5.7 billion, and capital of $700 million [12][13] - The tangible book value per share was reported at $9.77 [12] - Net interest margin increased from 1.8% at the beginning of 2025 to approximately 2%, with net interest income rising from $32 million to nearly $36 million [19] Business Line Data and Key Metrics Changes - The company is focusing on organic growth and enhancing client relationships, aiming to deepen wallet share and optimize loan portfolio performance [23][24] - The investment services group has generated total sales of $486 million and gross revenue of $8.7 million, with assets under management at $369 million [33] Market Data and Key Metrics Changes - The company ranks as the tenth largest financial institution in terms of deposits in its operating states, New Jersey and New York [14] - The company has a minimal exposure to New York City office and rent-regulated multifamily properties, which is a fraction of its portfolio [26] Company Strategy and Development Direction - The company is shifting from a defensive posture to an offensive strategy focused on organic expansion and technology integration [16][24] - There is an emphasis on operational efficiency through technology, including the launch of an AI chatbot and a new HR timekeeping application [17][24][28] - The company plans to continue diversifying its lending and optimizing branch operations while enhancing community engagement [25] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges posed by the inverted yield curve and high Fed fund rates but expressed optimism about improved margins and net income as conditions normalize [16][26] - The focus will be on strengthening core deposits and acquiring deposit-gathering teams to support growth [24] Other Important Information - The company has successfully completed seven M&A transactions since 1999, demonstrating a disciplined acquisition strategy [14] - The company has received advisory approval for its executive compensation and ratified the appointment of Crow LLP as its independent auditor for the fiscal year ending June 30, 2026 [36][37] Q&A Session Summary Question: Qualifications of elected directors - The qualifications and bios of the elected directors were referenced in the proxy statement, specifically on page seven [10]

Financial Data and Key Metrics Changes - As of September 30, 2025, the company reported a market capitalization of $425 million, total assets of $7.7 billion, loans of $5.8 billion, deposits of $5.7 billion, and capital of $700 million [9] - The tangible value per share was reported at $9.77, with net interest income (NII) growing from $32 million to nearly $36 million over the fiscal year [12][10] - The net interest margin increased from 1.8% to approximately 2%, reflecting a positive trend in earnings growth [12] Business Line Data and Key Metrics Changes - The company is focusing on organic growth and has launched several technology initiatives, including an AI chatbot and a virtual agent for client transactions [11][12] - The investment services group has generated total sales of $486 million and gross revenue of $8.7 million, with assets under management at $369 million [19][20] Market Data and Key Metrics Changes - The company operates 43 branches across 12 counties in New Jersey and New York, with plans to close three branches, resulting in a network of 40 branches [9][10] - Kearny Financial is ranked as the 10th largest financial institution in the state by deposits, indicating a strong market presence [9] Company Strategy and Development Direction - The company is shifting from a defensive posture to an offensive strategy focused on organic expansion and enhancing client relationships [10][15] - There is a strong emphasis on technology to improve operational efficiency and client service, with ongoing investments in automation and AI [17][18] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges posed by an inverted yield curve and high Fed Funds rates but expressed optimism about improved margins and net income as conditions normalize [10][16] - The focus will be on strengthening core deposits and optimizing loan portfolio performance, with a commitment to relationship banking [15][16] Other Important Information - The company has a disciplined approach to mergers and acquisitions, having completed seven successful transactions since 1999 [10] - The advisory non-binding proposal to approve executive compensation received majority approval, indicating shareholder support for management [22] Q&A Session Summary Question: Qualifications of elected directors - The qualifications of the directors were outlined in the proxy statement, confirming their suitability for election [6][7]