Company Overview - Kearny Financial Corp (KRNY) has total assets of $7.7 billion[19], total loans of $5.8 billion[19], total deposits of $5.7 billion[19], and total capital of $0.7 billion[19] - The company's market capitalization is $425.3 million[19] and the tangible book value (TBV) per share is $9.77[19] - The company operates 43 full-service branches across 12 counties in New Jersey and the New York metro area, with plans to consolidate three branches to 40 by October 2025[23] Financial Performance - The company experienced growth in net interest income throughout fiscal year 2025, increasing from $32.446 million in Q1 to $35.843 million in Q4[33] - Net income also increased from $6.092 million in Q1 to $9.941 million in Q4[35] - The net interest margin improved from 1.80% in Q1 to 2.00% in Q4[33] Credit Risk Management - The company's cumulative charge-offs between 2006 and 2025 totaled $39.8 million[38] - The company maintained an average annual net charge-off rate of nine basis points between 2006 and 2025, compared to 48 basis points for all commercial banks (US banks not among the top 100)[38] Strategic Initiatives - The company aims to deepen client relationships through personalized cross-selling and targeted digital outreach[41] - The company intends to build a stable, low-cost funding base to reduce reliance on higher-cost alternatives[43] - The company plans to expand into new and adjacent markets to diversify lending opportunities[45] Operational Efficiency - The company is deploying real-time KPI dashboards for advanced performance tracking[49] - The company is automating workflows with RPA and AI and unifying processes via top automation platforms[53] Kearny Investment Services - Kearny Investment Services has generated $8.7 million in gross revenue since inception[55] - The investment services team manages $369 million in assets under administration[55]

Core Insights - Kearny Financial Corp. has announced a strategic partnership with The Lab Consulting to enhance operational efficiency and client experience while delivering value to shareholders through cost optimization and scalable growth [1][2]. Company Overview - Kearny Financial Corp. operates Kearny Bank with approximately $7.7 billion in total assets as of June 30, 2025, and has 43 retail branch offices in northern and central New Jersey, as well as Brooklyn and Staten Island, New York [6]. Partnership Objectives - The partnership aims to streamline operations, empower teams, and improve returns for stakeholders through a multi-phase innovation methodology tailored for financial institutions [3][4]. - The program is expected to yield operational improvements within the first year, including reduced operating expenses and increased capacity for revenue-generating opportunities [4]. Implementation Strategies - Key strategies include implementing Robotic Process Automation (RPA) and AI-enabled document processing to eliminate manual tasks, integrating processes across departments, and redesigning client-facing processes for better satisfaction [8]. - The Lab Consulting will provide knowledge transfer and best practices to ensure long-term adoption and continuous improvement [8].

Loan and Credit Losses - The allowance for credit losses (ACL) totaled $46.2 million at June 30, 2025, representing 0.79% of total loans, an increase from $44.9 million or 0.78% at June 30, 2024[67]. - Total loans outstanding were $5.81 billion at June 30, 2025, compared to $5.75 billion at June 30, 2024[63]. - The annualized net charge-off rate for the year ended June 30, 2025, was 0.02%, a decrease of 15 basis points from 0.17% for the year ended June 30, 2024[64]. - The ACL allocated to multi-family mortgage loans was $24.9 million, accounting for 46.60% of total loans as of June 30, 2025[67]. Investment Securities - The investment securities portfolio was $1.13 billion at June 30, 2025, down from $1.21 billion at June 30, 2024, reflecting a year-over-year net decrease of $75.4 million[70]. - The carrying value of mortgage-backed securities was $602.8 million at June 30, 2025, comprising 53.2% of total investments and 7.8% of total assets[74]. - The carrying value of corporate bonds was $140.1 million at June 30, 2025, representing 12.4% of total investments and 1.8% of total assets[78]. - The outstanding balance of collateralized loan obligations was $323.2 million at June 30, 2025, comprising 28.5% of total investments[77]. - The fair value of available for sale securities had a carrying value of $1.01 billion, or 89.4% of total securities, as of June 30, 2025[80]. - As of June 30, 2025, total securities available for sale amounted to $1,012.97 million, a decrease of 5.57% from $1,072.83 million in 2024[83]. - The carrying value of debt securities available for sale was $522.86 million, down 13.06% from $601.78 million in 2024[83]. - Total mortgage-backed securities available for sale increased to $490.11 million, up 4.05% from $471.05 million in 2024[83]. - At June 30, 2025, the total carrying value of securities held to maturity was $120.22 million, a decrease of 11.43% from $135.74 million in 2024[83]. Deposits and Funding - Retail deposits as of June 30, 2025, totaled $5.56 billion, with a weighted average nominal interest rate of 2.53%, compared to $5.35 billion and 2.29% in 2024[95]. - Certificates of deposit maturing within one year were $1.91 billion in 2025, an increase from $1.49 billion in 2024[91]. - At June 30, 2025, 76.0% of certificates of deposit were $100,000 or more, compared to 68.2% in 2024[92]. - Brokered certificates of deposit totaled approximately $757.7 million, representing 13.4% of total deposits as of June 30, 2025[93]. - The weighted average yield on total securities was 4.04% as of June 30, 2025[85]. - The company utilizes wholesale funding, including borrowings from the Federal Home Loan Bank, to manage interest rate and liquidity risks[96]. - As of June 30, 2025, Kearny Financial Corp had $1.11 billion in FHLB advances outstanding, down from $1.54 billion in the previous year, with a weighted average interest rate decrease from 5.07% to 4.36%[98]. - The maturity schedule for FHLB advances shows $906.5 million maturing in less than one year and $200 million maturing in two to three years as of June 30, 2025[99]. - Kearny Financial Corp is eligible to borrow an additional $695 million from the FHLB based on the market value of collateral posted as of June 30, 2025[100]. - The company has the capacity to borrow an additional $845 million via unsecured overnight borrowings and $1.19 billion from the FRB without additional collateral[101]. Risk Management - At June 30, 2025, Kearny Financial Corp's derivative instruments included interest rate swaps, caps, and a floor with a total notional amount of $3.08 billion to manage interest rate exposure[103]. - Interest rate risk is a significant market risk for Kearny Financial, managed through an Asset/Liability Management program overseen by the Board of Directors[308][309]. - As of June 30, 2025, a 300 basis point increase in interest rates would decrease the Economic Value of Equity (EVE) by 37.02%[313]. - The projected net interest income (NII) would decrease by 6.79% with a 300 basis point increase in interest rates over a 1 to 12 month period[313]. Employment and Benefits - Kearny Bank employed 504 full-time and 53 part-time employees as of June 30, 2025, with an average tenure of 8.4 years[106]. - The company offers a comprehensive benefits package, including a 401(k) plan with a competitive company match and an Employee Stock Ownership Plan (ESOP) fully funded by the company[110]. Regulatory Compliance - Kearny Bank's deposits are insured by the FDIC, with a maximum deposit insurance amount of $250,000 per depositor per account ownership category[119]. - As of June 30, 2025, Kearny Bank has exercised the opt-out election regarding the treatment of Accumulated Other Comprehensive Income, affecting its regulatory capital calculations[125]. - Regulatory capital requirements mandate a common equity Tier 1 capital ratio of 4.5%, with Kearny Bank needing to comply with these standards to maintain its operations[123]. - As of June 30, 2025, Kearny Bank exceeded all regulatory capital requirements and was classified as well capitalized[134]. - Kearny Bank did not opt into the community bank leverage ratio framework, which requires a leverage ratio of greater than 9.0%[129]. - The FDIC defines a well-capitalized institution as having a total risk-based capital ratio of 10.0% or greater and a Tier 1 risk-based capital ratio of 8.0% or greater[131]. - Kearny Bank must file notice with the Federal Reserve Board at least thirty days before paying a dividend, which may be disapproved under certain conditions[135]. - New Jersey law prohibits dividend payments that would impair the capital stock of the savings bank[136]. - Kearny Bank received a satisfactory rating under the Community Reinvestment Act (CRA) in its most recent evaluation[140]. - The bank's total reported loans for construction, land development, and other land represent 100% or more of its capital[143]. - Kearny Bank is a member of the Federal Home Loan Bank of New York, which provides loans to its members[144]. - The Federal Reserve Board has enforcement authority over Kearny Financial, allowing it to restrict activities posing risks to Kearny Bank[150]. - Kearny Financial is required to obtain regulatory approval from the Federal Reserve Board before engaging in certain transactions, such as mergers[149]. - Kearny Financial must obtain Federal Reserve Board approval for acquiring more than 5% of voting stock in another savings institution[153]. - As of June 30, 2025, Kearny Financial was compliant with capital requirements, maintaining a capital conservation buffer[154]. - The source of strength doctrine requires holding companies to support their subsidiary depository institutions during financial distress[155]. - Kearny Bank met the qualified thrift lender test as of June 30, 2025, maintaining at least 65% of its portfolio in qualified thrift investments[156]. Corporate Governance - The company adopted a clawback policy in October 2023 in compliance with NASDAQ standards[159]. - Kearny Financial's ability to pay dividends may be restricted if a subsidiary becomes undercapitalized[155]. - Future interest rates and their effects on net interest income are unpredictable and based on numerous assumptions[315].

I N V E S T O R P R E S E N T A T I O N F O U R T H Q U A R T E R F I S C A L 2 0 2 5 July 24, 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, ...

Exhibit 99.1 FOR IMMEDIATE RELEASE July 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 FOURTH QUARTER AND FISCAL YEAR END 2025 RESULTS AND DECLARATION OF $0.11 PER SHARE CASH DIVIDEND Fairfield, N.J., July 24, 2025 – Kearny Financial Corp. (NASDAQ GS: KRNY) (the "Company"), the holding company of ...

Core Points - Kearny Financial Corp. reported a net income of $6.8 million, or $0.11 per diluted share, for the quarter ended June 30, 2025, showing a slight increase from $6.6 million in the previous quarter [1][2] - For the fiscal year ended June 30, 2025, the company reported a net income of $26.1 million, a significant recovery from a net loss of $86.7 million in the prior year [2] - The Board of Directors declared a quarterly cash dividend of $0.11 per share, payable on August 26, 2025 [3] Financial Performance - The company achieved a 23% growth in pre-tax, pre-provision earnings per share this quarter, attributed to a 10 basis points expansion in net interest margin [4] - Net interest income increased by 5.3% to $35.8 million for the quarter ended June 30, 2025, compared to $34.0 million for the previous quarter [8] - Non-interest income rose by 9.4% to $5.0 million for the quarter ended June 30, 2025, driven by increases in income from bank-owned life insurance and gains on the sale of loans [12] Balance Sheet Highlights - Total assets were $7.74 billion at June 30, 2025, reflecting a 0.1% increase from the previous quarter [8] - Loans receivable totaled $5.81 billion, a decrease of 0.6% from the previous quarter but an increase of 1.4% year-over-year [8] - Deposits were $5.68 billion, a decrease of 0.6% from the previous quarter but an increase of 10.0% from the same period last year [8] Asset Quality - The balance of non-performing assets increased to $45.6 million, or 0.59% of total assets, as of June 30, 2025, up from $37.7 million in the previous quarter [18] - Net charge-offs were less than 0.01% of average loans for the quarter ended June 30, 2025, compared to 0.03% in the previous quarter [18] - The allowance for credit losses was $46.2 million, or 0.79% of total loans, at June 30, 2025, an increase from $44.5 million in the previous quarter [18] Capital and Equity - The company's tangible equity to tangible assets ratio was 8.27% at June 30, 2025, with regulatory capital ratios exceeding the levels required to be classified as "well-capitalized" [18] - Book value per share decreased by 0.3% to $11.55, while tangible book value per share also decreased by 0.3% to $9.77 [18]

[PART I—FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) This section presents the company's unaudited consolidated financial statements and management's analysis [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Kearny Financial Corp.'s unaudited consolidated financial statements and detailed notes [Consolidated Statements of Financial Condition](index=3&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) This statement details assets, liabilities, and equity, showing increased total assets and deposits | Date | Amount (in Thousands) | | :--- | :--- | | March 31, 2025 | $7,733,141 | | June 30, 2024 | $7,683,461 | | Date | Amount (in Thousands) | | :--- | :--- | | March 31, 2025 | $6,985,028 | | June 30, 2024 | $6,929,890 | | Date | Amount (in Thousands) | | :--- | :--- | | March 31, 2025 | $748,113 | | June 30, 2024 | $753,571 | - Key Asset Changes (March 31, 2025 vs. June 30, 2024): - Cash and cash equivalents: Increased from **$63.9 million** to **$126.1 million**[10](index=10&type=chunk) - Net loans receivable: Increased from **$5.69 billion** to **$5.80 billion**[10](index=10&type=chunk) - Investment securities available for sale: Decreased from **$1.07 billion** to **$1.00 billion**[10](index=10&type=chunk) - Key Liability Changes (March 31, 2025 vs. June 30, 2024): - Total deposits: Increased from **$5.16 billion** to **$5.71 billion**[10](index=10&type=chunk) - Borrowings: Decreased from **$1.71 billion** to **$1.21 billion**[10](index=10&type=chunk) [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) This statement presents financial performance, showing increased nine-month net income **Net Income (Three Months Ended March 31):** | Year | Amount (in Thousands) | | :--- | :--- | | 2025 | $6,648 | | 2024 | $7,397 | **Net Income (Nine Months Ended March 31):** | Year | Amount (in Thousands) | | :--- | :--- | | 2025 | $19,306 | | 2024 | $3,412 | **Basic EPS (Three Months Ended March 31):** | Year | EPS | | :--- | :--- | | 2025 | $0.11 | | 2024 | $0.12 | **Basic EPS (Nine Months Ended March 31):** | Year | EPS | | :--- | :--- | | 2025 | $0.31 | | 2024 | $0.06 | **Total Non-Interest Income (Nine Months Ended March 31):** | Year | Amount (in Thousands) | | :--- | :--- | | 2025 | $14,061 | | 2024 | $(7,799) | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This statement details net income and other comprehensive income components, showing an increase **Total Comprehensive Income (Three Months Ended March 31):** | Year | Amount (in Thousands) | | :--- | :--- | | 2025 | $9,617 | | 2024 | $7,568 | **Total Comprehensive Income (Nine Months Ended March 31):** | Year | Amount (in Thousands) | | :--- | :--- | | 2025 | $13,341 | | 2024 | $9,209 | **Net unrealized gain (loss) on securities available for sale (Three Months Ended March 31):** | Year | Amount (in Thousands) | | :--- | :--- | | 2025 | $9,701 | | 2024 | $(6,449) | **Fair value adjustments on derivatives (Nine Months Ended March 31):** | Year | Amount (in Thousands) | | :--- | :--- | | 2025 | $(18,881) | | 2024 | $(10,206) | [Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) This statement illustrates changes in stockholders' equity, showing a slight decrease for the nine-month period - Total Stockholders' Equity (March 31, 2025): **$748.1 million**[18](index=18&type=chunk) - Total Stockholders' Equity (June 30, 2024): **$753.6 million**[18](index=18&type=chunk) - Cash dividends declared (Nine Months Ended March 31, 2025): **$(20.7) million**[18](index=18&type=chunk) - Net income (Nine Months Ended March 31, 2025): **$19.3 million**[18](index=18&type=chunk) - Other comprehensive loss, net of income tax (Nine Months Ended March 31, 2025): **$(6.0) million**[18](index=18&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This statement categorizes cash movements, showing a significant net increase from financing activities **Net Cash Provided by Operating Activities (Nine Months Ended March 31):** | Year | Amount (in Thousands) | | :--- | :--- | | 2025 | $16,683 | | 2024 | $36,713 | **Net Cash Provided by Investing Activities (Nine Months Ended March 31):** | Year | Amount (in Thousands) | | :--- | :--- | | 2025 | $10,824 | | 2024 | $202,278 | **Net Cash Provided by (Used in) Financing Activities (Nine Months Ended March 31):** | Year | Amount (in Thousands) | | :--- | :--- | | 2025 | $34,724 | | 2024 | $(238,479) | **Net Increase in Cash and Cash Equivalents (Nine Months Ended March 31):** | Year | Amount (in Thousands) | | :--- | :--- | | 2025 | $62,231 | | 2024 | $512 | **Cash and Cash Equivalents - Ending (Nine Months Ended March 31):** | Year | Amount (in Thousands) | | :--- | :--- | | 2025 | $126,095 | | 2024 | $71,027 | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures for financial statements, covering policies, events, and instruments [Note 1. Summary of Significant Accounting Policies](index=10&type=section&id=1.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines consolidation principles and presentation basis, confirming GAAP adherence - The unaudited consolidated financial statements include Kearny Financial Corp., its wholly-owned subsidiary Kearny Bank, and the Bank's wholly-owned subsidiaries[25](index=25&type=chunk) - Statements are prepared in conformity with GAAP and instructions for Form 10-Q, with all necessary adjustments included[26](index=26&type=chunk) - No material changes to the Company's significant accounting policies since June 30, 2024[28](index=28&type=chunk) [Note 2. Subsequent Events](index=10&type=section&id=2.%20SUBSEQUENT%20EVENTS) This note details subsequent events, including a declared quarterly cash dividend of $0.11 per share - On April 23, 2025, the Company declared a quarterly cash dividend of **$0.11 per share**[29](index=29&type=chunk) - The dividend is payable on May 21, 2025, to stockholders of record as of May 7, 2025[29](index=29&type=chunk) [Note 3. Recent Accounting Pronouncements](index=10&type=section&id=3.%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS) This note discusses recent ASUs, with most not materially impacting financials, but one is under evaluation - ASU 2023-07 (Segment Reporting): Not expected to have a material effect as the Company has one reportable segment[30](index=30&type=chunk) - ASU 2023-09 (Income Taxes): Not expected to have a material effect[31](index=31&type=chunk) - ASU 2024-01 (Compensation-Stock Compensation): Not expected to have an impact[32](index=32&type=chunk) - ASU 2024-03 (Expense Disaggregation Disclosures): The Company is currently evaluating the impact[33](index=33&type=chunk) [Note 4. Securities](index=11&type=section&id=4.%20SECURITIES) This note details the securities portfolio, with AFS securities at $1.00 billion fair value and HTM at $124.9 million **Total Securities Available for Sale (March 31, 2025):** | Metric | Amount (in Thousands) | | :--- | :--- | | Amortized Cost | $1,116,087 | | Gross Unrealized Gains | $2,230 | | Gross Unrealized Losses | $114,924 | | Fair Value | $1,003,393 | **Total Securities Held to Maturity (March 31, 2025):** | Metric | Amount (in Thousands) | | :--- | :--- | | Amortized Cost | $124,859 | | Gross Unrecognized Gains | $47 | | Gross Unrecognized Losses | $14,056 | | Fair Value | $110,850 | - Securities Pledged (March 31, 2025): **$888.0 million**[42](index=42&type=chunk) - Management believes unrealized losses on securities are due to market interest rates and credit spreads, not changes in credit quality[43](index=43&type=chunk) - No allowance for credit losses was recorded for available for sale or held to maturity securities at March 31, 2025[43](index=43&type=chunk)[45](index=45&type=chunk) [Note 5. Loans Receivable](index=15&type=section&id=5.%20LOANS%20RECEIVABLE) This note details the loan portfolio, which increased to $5.85 billion, with nonperforming loans decreasing - Total Loans (March 31, 2025): **$5.85 billion**[47](index=47&type=chunk) **Loan Portfolio Composition (March 31, 2025):** | Loan Type | Amount (in Thousands) | | :--- | :--- | | Multi-family mortgage | $2,733,406 | | Nonresidential mortgage | $988,074 | | Commercial business | $140,224 | | Construction | $174,722 | | One- to four-family residential mortgage | $1,761,465 | | Home equity loans | $49,699 | | Other consumer | $2,859 | - Total Past Due Loans (March 31, 2025): **$40.9 million**[49](index=49&type=chunk) - Total Nonperforming Loans (March 31, 2025): **$37.7 million**[51](index=51&type=chunk) - Loan Modifications (Nine Months Ended March 31, 2025): Totaled **$34.0 million**, primarily multi-family mortgages (**$33.8 million**)[53](index=53&type=chunk) - Mortgage Loans in Foreclosure (March 31, 2025): One residential mortgage loan with a carrying value of **$558.1 thousand** and five commercial mortgage loans with aggregate carrying values totaling **$15.1 million**[67](index=67&type=chunk) [Note 6. Allowance for Credit Losses](index=23&type=section&id=6.%20ALLOWANCE%20FOR%20CREDIT%20LOSSES) This note details the ACL on loans, which decreased slightly to $44.5 million, driven by lower loss rates - Total Allowance for Credit Losses on Loans (March 31, 2025): **$44.5 million**[69](index=69&type=chunk) - Total Allowance for Credit Losses on Loans (June 30, 2024): **$44.9 million**[70](index=70&type=chunk) **Provision for credit losses (Nine Months Ended March 31):** | Year | Amount (in Thousands) | | :--- | :--- | | 2025 | $581 | | 2024 | $2,699 | - The decrease in ACL was primarily due to a decrease in the quantitative reserve on one- to four-family residential mortgage loans due to lower assumed loss rates and a decrease in individually analyzed reserves on nonresidential mortgage loans[74](index=74&type=chunk) - Allowance for Credit Losses on Off Balance Sheet Commitments (March 31, 2025): **$990 thousand**[75](index=75&type=chunk) [Note 7. Deposits](index=26&type=section&id=7.%20DEPOSITS) This note breaks down deposits by type, showing a significant increase to $5.71 billion - Total Deposits (March 31, 2025): **$5.71 billion**[76](index=76&type=chunk) - Total Deposits (June 30, 2024): **$5.16 billion**[76](index=76&type=chunk) **Deposit Composition (March 31, 2025):** | Deposit Type | Amount (in Thousands) | | :--- | :--- | | Non-interest-bearing demand | $587,118 | | Interest-bearing demand | $2,410,925 | | Savings | $758,239 | | Certificates of deposits | $1,951,066 | [Note 8. Borrowings](index=26&type=section&id=8.%20BORROWINGS) This note details borrowings, which decreased to $1.21 billion due to reduced FHLB advances - Total Borrowings (March 31, 2025): **$1.21 billion**[77](index=77&type=chunk) - Total Borrowings (June 30, 2024): **$1.71 billion**[77](index=77&type=chunk) - FHLB advances (March 31, 2025): **$1.03 billion**[77](index=77&type=chunk) - Federal Reserve Bank Term Funding Program ("BTFP") borrowings (March 31, 2025): **$0**[77](index=77&type=chunk) - FHLB advances and overnight line of credit borrowings were collateralized by FHLB capital stock and mortgage loans totaling approximately **$3.29 billion** at March 31, 2025[79](index=79&type=chunk) [Note 9. Derivative Instruments and Hedging Activities](index=27&type=section&id=9.%20DERIVATIVE%20INSTRUMENTS%20AND%20HEDGING%20ACTIVITIES) This note details derivative instruments used for interest rate risk management, with asset derivatives' fair value decreasing - Fair Value of Asset Derivatives (March 31, 2025): **$23.4 million**[82](index=82&type=chunk) - Fair Value of Asset Derivatives (June 30, 2024): **$54.4 million**[82](index=82&type=chunk) - Fair Value of Liability Derivatives (March 31, 2025): **$3.9 million**[82](index=82&type=chunk) - As of March 31, 2025, the Company had **16 interest rate swaps, caps, and collars** with a notional amount of **$1.83 billion** hedging specific wholesale funding, and **five interest rate floors** with a notional amount of **$550.0 million** hedging floating-rate available for sale securities[83](index=83&type=chunk) - For cash flow hedges on wholesale funding, an estimated **$14.2 million** will be reclassified as a reduction in interest expense in the next twelve months[85](index=85&type=chunk) - As of March 31, 2025, the Company had **five interest rate swaps** with a notional amount of **$775.0 million** hedging fixed-rate residential mortgage loans[88](index=88&type=chunk) [Note 10. Benefit Plans](index=30&type=section&id=10.%20BENEFIT%20PLANS) This note outlines benefit plan expenses and details the granting of restricted stock units **Net periodic benefit cost (Three Months Ended March 31):** | Year | Amount (in Thousands) | | :--- | :--- | | 2025 | $66 | | 2024 | $75 | **Net periodic benefit cost (Nine Months Ended March 31):** | Year | Amount (in Thousands) | | :--- | :--- | | 2025 | $183 | | 2024 | $221 | - During the nine months ended March 31, 2025, the Company granted **380,007 restricted stock units (RSUs)**, consisting of **278,530 service-based RSUs** and **101,477 performance-based RSUs**[96](index=96&type=chunk) [Note 11. Income Taxes](index=31&type=section&id=11.%20INCOME%20TAXES) This note reconciles income taxes, showing a decreased effective tax rate due to lower pre-tax income **Total Income Tax Expense (Three Months Ended March 31):** | Year | Amount (in Thousands) | | :--- | :--- | | 2025 | $1,200 | | 2024 | $1,717 | **Total Income Tax Expense (Nine Months Ended March 31):** | Year | Amount (in Thousands) | | :--- | :--- | | 2025 | $3,537 | | 2024 | $6,808 | **Effective Income Tax Rate (Three Months Ended March 31):** | Year | Rate | | :--- | :--- | | 2025 | 15.29% | | 2024 | 18.84% | **Effective Income Tax Rate (Nine Months Ended March 31):** | Year | Rate | | :--- | :--- | | 2025 | 15.48% | | 2024 | 66.61% | [Note 12. Fair Value of Financial Instruments](index=31&type=section&id=12.%20FAIR%20VALUE%20OF%20FINANCIAL%20INSTRUMENTS) This note explains fair value estimation for financial instruments, categorizing inputs and presenting measurements - Total Securities Available for Sale (March 31, 2025): **$1.00 billion** (Level 2)[103](index=103&type=chunk) - Interest Rate Contracts (Assets, March 31, 2025): **$23.4 million** (Level 2)[103](index=103&type=chunk) - Collateral Dependent Loans (March 31, 2025): **$7.8 million** (Level 3)[106](index=106&type=chunk) - At March 31, 2025, collateral dependent loans valued using Level 3 inputs comprised loans with principal balances totaling **$7.8 million** and a valuation allowance of **$8 thousand**[109](index=109&type=chunk) - The fair value of collateral dependent loans is generally determined based on an independent appraisal of the underlying collateral, adjusted for estimated selling costs[107](index=107&type=chunk)[108](index=108&type=chunk) [Note 13. Comprehensive Income (Loss)](index=37&type=section&id=13.%20COMPREHENSIVE%20INCOME%20(LOSS)) This note details AOCL components, which increased to $(69.1) million, driven by derivative fair value adjustments - Total Accumulated Other Comprehensive Loss (March 31, 2025): **$(69.1) million**[118](index=118&type=chunk) - Total Accumulated Other Comprehensive Loss (June 30, 2024): **$(63.2) million**[118](index=118&type=chunk) - Net unrealized loss on securities available for sale (March 31, 2025): **$(80.1) million** (net of tax)[118](index=118&type=chunk) - Fair value adjustments on derivatives (March 31, 2025): **$10.7 million** (net of tax)[118](index=118&type=chunk) **Total Other Comprehensive Income (Loss) (Nine Months Ended March 31):** | Year | Amount (in Thousands) | | :--- | :--- | | 2025 | $(5,965) | | 2024 | $5,797 | [Note 14. Net Income Per Common Share ("EPS")](index=38&type=section&id=14.%20NET%20INCOME%20PER%20COMMON%20SHARE%20(%22EPS%22)) This note presents basic and diluted EPS calculations, showing a significant increase in diluted EPS **Basic EPS (Nine Months Ended March 31):** | Year | EPS | | :--- | :--- | | 2025 | $0.31 | | 2024 | $0.06 | **Diluted EPS (Nine Months Ended March 31):** | Year | EPS | | :--- | :--- | | 2025 | $0.31 | | 2024 | $0.06 | - Weighted average number of common shares outstanding - diluted (Nine Months Ended March 31, 2025): **62,705 thousand**[120](index=120&type=chunk) - Stock options for **2,751,902 shares** and **444,202 RSUs** were anti-dilutive for the nine months ended March 31, 2025[120](index=120&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of financial condition and operating results, covering policies and performance [Forward-Looking Statements](index=39&type=section&id=Forward-Looking%20Statements) This section contains cautionary statements about forward-looking information, noting potential material differences - Forward-looking statements are based on current management expectations and may differ materially from actual results[123](index=123&type=chunk) - Factors influencing actual results include general economic and geopolitical conditions, legislative and regulatory changes, interest rates, inflation, and competition[123](index=123&type=chunk) - The Company disclaims any obligation to publicly release revisions to forward-looking statements[123](index=123&type=chunk) [Critical Accounting Policies](index=39&type=section&id=Critical%20Accounting%20Policies) This section highlights critical accounting policies requiring significant judgment, with no material changes - Accounting policies requiring significant judgment or discretion are considered critical[124](index=124&type=chunk) - No material changes to critical accounting policies since June 30, 2024[124](index=124&type=chunk) [Comparison of Financial Condition at March 31, 2025 and June 30, 2024](index=39&type=section&id=Comparison%20of%20Financial%20Condition%20at%20March%2031%2C%202025%20and%20June%2030%2C%202024) Total assets increased by $49.7 million to $7.73 billion, while deposits rose and borrowings fell - Total Assets: Increased **$49.7 million** to **$7.73 billion** at March 31, 2025, from **$7.68 billion** at June 30, 2024[125](index=125&type=chunk) - Investment Securities Available for Sale: Decreased **$69.4 million** to **$1.00 billion**, due to principal repayments of **$146.8 million**, partially offset by purchases of **$58.9 million** and an **$18.0 million** increase in fair value[126](index=126&type=chunk) - Net Loans Receivable: Increased **$113.9 million**, or **2.0%**, to **$5.80 billion**[129](index=129&type=chunk) - Total Deposits: Increased **$549.2 million**, or **10.6%**, to **$5.71 billion**, driven by a reallocation from FHLB advances into brokered certificates of deposits and growth in deposits from branch network and digital channels[138](index=138&type=chunk) - Borrowings: Decreased **$495.8 million** to **$1.21 billion**, primarily reflecting a decrease in FHLB and other borrowings[139](index=139&type=chunk) - Stockholders' Equity: Decreased **$5.5 million** to **$748.1 million**, largely reflected cash dividends of **$20.7 million** and an other comprehensive loss of **$6.0 million**, partially offset by net income of **$19.3 million**[142](index=142&type=chunk) [Comparison of Operating Results for the Quarter Ended March 31, 2025 and March 31, 2024](index=42&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Quarter%20Ended%20March%2031%2C%202025%20and%20March%2031%2C%202024) Quarterly net income decreased to $6.6 million ($0.11 diluted EPS) due to higher non-interest expense - Net Income (Q1 2025): **$6.6 million**, or **$0.11 per diluted share**[144](index=144&type=chunk) - Net Income (Q1 2024): **$7.4 million**, or **$0.12 per diluted share**[144](index=144&type=chunk) - Net Interest Income: Decreased by **$277 thousand** to **$34.0 million**[145](index=145&type=chunk) - Net Interest Margin: Increased **one basis point** to **1.90%**[146](index=146&type=chunk) - Non-Interest Income: Increased **$359 thousand** to **$4.6 million**, with a gain on sale of loans of **$112 thousand** compared to a loss of **$712 thousand** in the prior year period[154](index=154&type=chunk)[155](index=155&type=chunk) - Non-Interest Expense: Increased **$1.3 million** to **$30.4 million**, driven by higher salaries and employee benefits (**$789 thousand**), net occupancy expense (**$212 thousand**), equipment and systems (**$98 thousand**), and advertising and marketing (**$222 thousand**)[157](index=157&type=chunk)[158](index=158&type=chunk)[159](index=159&type=chunk) - Provision for Income Taxes: Decreased **$517 thousand** to **$1.2 million**, reflecting a lower level of pre-tax income[160](index=160&type=chunk) [Comparison of Operating Results for the Nine Months Ended March 31, 2025 and March 31, 2024](index=44&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Nine%20Months%20Ended%20March%2031%2C%202025%20and%20March%2031%2C%202024) Nine-month net income significantly increased to $19.3 million ($0.31 diluted EPS) due to higher non-interest income - Net Income (9M 2025): **$19.3 million**, or **$0.31 per diluted share**[161](index=161&type=chunk) - Net Income (9M 2024): **$3.4 million**, or **$0.06 per diluted share**[161](index=161&type=chunk) - Net Interest Income: Decreased by **$10.2 million** to **$99.1 million**[162](index=162&type=chunk) - Net Interest Margin: Decreased **14 basis points** to **1.84%**[163](index=163&type=chunk) - Non-Interest Income: Increased **$21.9 million** to **$14.1 million**, primarily due to the absence of an **$18.1 million** loss on sale of securities in the prior year and improved income from bank owned life insurance[170](index=170&type=chunk)[171](index=171&type=chunk)[174](index=174&type=chunk) - Provision for Credit Losses: Decreased **$2.1 million** to **$581 thousand**[169](index=169&type=chunk) - Non-Interest Expense: Increased **$1.1 million** to **$89.7 million**, driven by higher salaries and employee benefits (**$823 thousand**), net occupancy expense (**$409 thousand**), equipment and systems (**$235 thousand**), and advertising and marketing (**$346 thousand**)[176](index=176&type=chunk)[177](index=177&type=chunk) - Provision for Income Taxes: Decreased **$3.3 million** to **$3.5 million**, reflecting the absence of **$5.7 million** of discrete tax cost associated with the BOLI restructure in the prior year period[179](index=179&type=chunk)[180](index=180&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $126.1 million cash and $1.00 billion AFS securities, exceeding capital requirements - Liquidity (March 31, 2025): **$126.1 million** of short-term cash and cash equivalents and **$1.00 billion** of investment securities available for sale[183](index=183&type=chunk) - Available Secured Borrowing Capacity (March 31, 2025): **$2.34 billion** from the Federal Reserve discount window and the FHLBNY without pledging additional collateral[183](index=183&type=chunk) - Outstanding Commitments to Originate and Purchase Loans (March 31, 2025): **$37.0 million**[184](index=184&type=chunk) **Bank Capital Ratios (March 31, 2025):** | Ratio | Actual | Minimum for Adequacy | Minimum for Well Capitalized | | :--- | :--- | :--- | :--- | | Total capital (to risk-weighted assets) | 14.41% | 8.00% | 10.00% | | Tier 1 capital (to risk-weighted assets) | 13.57% | 6.00% | 8.00% | | Common equity tier 1 capital (to risk-weighted assets) | 13.57% | 4.50% | 6.50% | | Tier 1 capital (to adjusted total assets) | 8.65% | 4.00% | 5.00% | - The Bank actively seeks to maintain its status as a well-capitalized institution in accordance with regulatory standards[187](index=187&type=chunk) [Off-Balance Sheet Arrangements](index=50&type=section&id=Off-Balance%20Sheet%20Arrangements) The company uses off-balance sheet arrangements primarily for credit commitments, with no significant capital expenditures - No significant off-balance sheet commitments for capital expenditures as of March 31, 2025[189](index=189&type=chunk) - Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract[186](index=186&type=chunk) - Construction loans in process and unused lines of credit were **$93.9 million** and **$164.8 million**, respectively, at March 31, 2025[185](index=185&type=chunk) [Recent Accounting Pronouncements](index=50&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to Note 3 for discussion on the impact of recent accounting pronouncements - Refer to Note 3 to the unaudited consolidated financial statements for a discussion of the expected impact of recently issued accounting pronouncements[190](index=190&type=chunk) [Item 3. Quantitative and Qualitative Disclosure About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) The company manages interest rate risk via its ALM program, analyzing NII and EVE sensitivity to rate changes - Interest rate risk is a significant form of market risk managed through an Asset/Liability Management ("ALM") program[191](index=191&type=chunk) - Quantitative analysis measures the sensitivity of projected Net Interest Income (NII) over a one-year period and the Economic Value of Equity (EVE) to movements in interest rates[192](index=192&type=chunk)[193](index=193&type=chunk) - EVE Sensitivity (March 31, 2025, 0 bps change): **$635.4 million**[195](index=195&type=chunk) - NII Sensitivity (March 31, 2025, 1 to 12 Months, 0 bps change): **$158.8 million**[195](index=195&type=chunk) - The model measures changes throughout a series of interest rate scenarios representing immediate and permanent, parallel shifts in the yield curve up and down **100, 200 and 300 basis points**[194](index=194&type=chunk) [Item 4. Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control - The Company's disclosure controls and procedures were evaluated and concluded to be effective as of March 31, 2025[199](index=199&type=chunk) - No material changes in the Company's internal control over financial reporting occurred during the quarter ended March 31, 2025[200](index=200&type=chunk) [PART II—OTHER INFORMATION](index=53&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) This section provides other information, including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) Neither the Company nor the Bank were involved in material legal proceedings as of March 31, 2025 - Neither the Company nor the Bank were involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business[203](index=203&type=chunk) - Amounts involved in legal proceedings are in the aggregate believed by management to be immaterial to the financial condition of the Company and the Bank[203](index=203&type=chunk) [Item 1A. Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the Annual Report on Form 10-K - No material changes to the Risk Factors previously disclosed under Item 1A of the Company's Annual Report on Form 10-K for the year ended June 30, 2024[204](index=204&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company did not repurchase any common stock shares during the three months ended March 31, 2025 - The Company did not repurchase any shares of its common stock during the three month period ended March 31, 2025[205](index=205&type=chunk) [Item 3. Defaults Upon Senior Securities](index=53&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the Company for the current reporting period - Not applicable[206](index=206&type=chunk) [Item 4. Mine Safety Disclosures](index=53&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company for the current reporting period - Not applicable[207](index=207&type=chunk) [Item 5. Other Information](index=53&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during the quarter - During the three months ended March 31, 2025, none of the Company's directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of the Company's securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any "non-Rule 10b5-1 trading arrangement"[208](index=208&type=chunk) [Item 6. Exhibits](index=54&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including corporate documents, certifications, and XBRL financial statements - Exhibits include Articles of Incorporation, Amended and Restated Bylaws, and Form of Common Stock Certificate[209](index=209&type=chunk) - Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are filed[209](index=209&type=chunk) - The Consolidated Statements of Financial Condition, Income, Comprehensive Income, Changes in Stockholder's Equity, Cash Flows, and Notes to Consolidated Financial Statements are formatted in Inline XBRL[209](index=209&type=chunk) [SIGNATURES](index=55&type=section&id=SIGNATURES) The report is duly signed by the President and CEO, and Executive Vice President and CFO, on May 7, 2025 [Signatures](index=55&type=section&id=SIGNATURES) The report is signed by the President and CEO, and Executive Vice President and CFO, on May 7, 2025 - The report is signed by Craig L. Montanaro, President and Chief Executive Officer, and Sean Byrnes, Executive Vice President and Chief Financial Officer[213](index=213&type=chunk) - The signing date for the report is May 7, 2025[213](index=213&type=chunk)

[Executive Summary & Dividend Declaration](index=1&type=section&id=1.%20Executive%20Summary%20%26%20Dividend%20Declaration) This section summarizes the company's third-quarter fiscal 2025 results, dividend declaration, and CEO commentary [Third Quarter Fiscal 2025 Results](index=1&type=section&id=1.1%20Third%20Quarter%20Fiscal%202025%20Results) Kearny Financial Corp. reported stable net income for the third quarter of fiscal 2025 compared to the previous quarter, with a slight increase in diluted earnings per share Net Income and EPS (QoQ) | Metric | Quarter Ended March 31, 2025 | Quarter Ended December 31, 2024 | | :------------------- | :--------------------------- | :------------------------------ | | Net Income | $6.6 million | $6.6 million | | Diluted EPS | $0.11 | $0.10 | [Dividend Declaration](index=1&type=section&id=1.2%20Dividend%20Declaration) The Board of Directors declared a quarterly cash dividend of $0.11 per share, consistent with the previous quarter - A quarterly cash dividend of **$0.11 per share** was declared, payable on May 21, 2025, to stockholders of record as of May 7, 2025[2](index=2&type=chunk) [CEO Commentary](index=1&type=section&id=1.3%20CEO%20Commentary) President and CEO Craig L. Montanaro highlighted a $1.4 million quarter-over-quarter growth in net interest income and an 8 basis point expansion in net interest margin, driven by loan and deposit growth and a decrease in the cost of funds. He expressed confidence in sustaining performance despite market volatility - Net interest income grew by **$1.4 million** quarter over quarter, leading to an **eight basis point** net interest margin expansion[3](index=3&type=chunk) - Margin expansion was attributed to growth in net loans and deposits, coupled with a **24 basis point** decrease in the cost of funds[3](index=3&type=chunk) - The Company anticipates continued strong margin expansion into the June quarter and is confident in its ability to sustain performance despite volatile market conditions[3](index=3&type=chunk) [Financial Performance Highlights](index=1&type=section&id=2.%20Financial%20Performance%20Highlights) This section details the company's financial performance, including balance sheet, earnings, asset quality, and capital [Balance Sheet Highlights](index=1&type=section&id=2.1%20Balance%20Sheet%20Highlights) As of March 31, 2025, total assets slightly increased, driven by growth in loans receivable and deposits, while investment securities and borrowings decreased Key Balance Sheet Changes (QoQ) | Metric | March 31, 2025 | December 31, 2024 | Change ($M) | Change (%) | | :--------------------- | :------------- | :---------------- | :---------- | :--------- | | Total Assets | $7.73 billion | $7.73 billion | $1.8 | 0.0% | | Investment Securities | $1.13 billion | $1.15 billion | ($17.3) | -1.5% | | Loans Receivable | $5.85 billion | $5.79 billion | $54.4 | 0.9% | | Deposits | $5.71 billion | $5.67 billion | $36.3 | 0.6% | | Borrowings | $1.21 billion | $1.26 billion | ($45.0) | -3.6% | - Growth in loans receivable was primarily due to **non-residential mortgage loans**[5](index=5&type=chunk) - Deposit increase was driven by **interest-bearing demand and consumer savings deposits**, partially offset by a decrease in non-interest-bearing demand deposits (excluding a single large outflow, non-interest bearing deposits increased **2.5%**)[5](index=5&type=chunk) - Borrowings decreased due to reductions in **Federal Home Loan Bank (FHLB) overnight borrowings**[5](index=5&type=chunk) [Earnings Overview](index=2&type=section&id=2.2%20Earnings%20Overview) The Company experienced an increase in net interest income and a decrease in non-interest income, while non-interest expenses rose, leading to a slight increase in net income [Net Interest Income and Net Interest Margin](index=2&type=section&id=2.2.1%20Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income increased by $1.4 million, and net interest margin expanded by eight basis points to 1.90%, primarily due to lower cost deposits and reduced borrowings Net Interest Income and Margin (QoQ) | Metric | Quarter Ended March 31, 2025 | Quarter Ended December 31, 2024 | Change ($M) | Change (bps) | | :----------------- | :--------------------------- | :------------------------------ | :---------- | :----------- | | Net Interest Income| $34.0 million | $32.6 million | $1.4 | - | | Net Interest Margin| 1.90% | 1.82% | - | 8 | - The increase in net interest margin was driven by the paydown of borrowings resulting from growth in **lower cost deposits** and **broad-based decreases in deposit rates**, partially offset by reduced yields on interest-earning assets[10](index=10&type=chunk) [Non-Interest Income](index=2&type=section&id=2.2.2%20Non-Interest%20Income) Non-interest income decreased by $311,000, or 6.4%, primarily due to lower gains on sale of loans and electronic banking fees Non-Interest Income Changes (QoQ) | Metric | Quarter Ended March 31, 2025 | Quarter Ended December 31, 2024 | Change ($) | Change (%) | | :-------------------------- | :--------------------------- | :------------------------------ | :--------- | :--------- | | Total Non-Interest Income | $4.6 million | $4.9 million | ($311,000) | -6.4% | | Gain on Sale of Loans | $112,000 | $304,000 | ($192,000) | -63.2% | | Electronic Banking Fees | $391,000 | $493,000 | ($102,000) | -20.7% | - The decrease in gain on sale of loans largely reflected a **seasonal decrease in residential mortgage loans sold**[10](index=10&type=chunk) - The decrease in electronic banking fees and charges largely reflected the **absence of a non-recurring increase** recorded in the prior period[10](index=10&type=chunk) [Non-Interest Expense](index=2&type=section&id=2.2.3%20Non-Interest%20Expense) Non-interest expense increased by $829,000, or 2.8%, driven by higher salary and benefits, net occupancy, advertising, and other expenses Non-Interest Expense Changes (QoQ) | Metric | Quarter Ended March 31, 2025 | Quarter Ended December 31, 2024 | Change ($) | Change (%) | | :-------------------------- | :--------------------------- | :------------------------------ | :--------- | :--------- | | Total Non-Interest Expense | $30.4 million | $29.6 million | $829,000 | 2.8% | | Salary and Benefits | $17.7 million | $17.6 million | $121,000 | 0.7% | | Net Occupancy Expense | $3.1 million | $2.8 million | $244,000 | 8.6% | | Advertising and Marketing | $609,000 | $311,000 | $298,000 | 95.8% | | Other Expense | $3.3 million | $3.1 million | $225,000 | 7.3% | - Salary and benefits increased primarily due to **higher payroll taxes and employee benefits** associated with the start of a new calendar year, partially offset by a non-recurring decrease in stock-based compensation[10](index=10&type=chunk) - Net occupancy expense increased due to **seasonally higher snow removal expenses**[10](index=10&type=chunk) - Advertising and marketing expense increased due to **marketing campaigns supporting loan and deposit growth initiatives**[10](index=10&type=chunk) [Income Taxes](index=2&type=section&id=2.2.4%20Income%20Taxes) Income tax expense slightly decreased, resulting in a lower effective tax rate for the quarter Income Tax Expense and Effective Rate (QoQ) | Metric | Quarter Ended March 31, 2025 | Quarter Ended December 31, 2024 | | :-------------------- | :--------------------------- | :------------------------------ | | Income Tax Expense | $1.2 million | $1.3 million | | Effective Tax Rate | 15.3% | 16.0% | [Asset Quality](index=3&type=section&id=2.3%20Asset%20Quality) Asset quality remained stable with non-performing assets consistent quarter-over-quarter. Net charge-offs decreased, but the provision for credit losses increased Asset Quality Metrics (QoQ) | Metric | March 31, 2025 | December 31, 2024 | | :----------------------------------- | :------------- | :---------------- | | Non-performing Assets | $37.7 million | $37.7 million | | Non-performing Assets (% of total assets) | 0.49% | 0.49% | | Net Charge-offs | $368,000 | $573,000 | | Net Charge-off Rate (annualized) | 0.03% | 0.04% | | Provision for Credit Losses | $366,000 | $107,000 | | ACL | $44.5 million | $44.5 million | | ACL (% of total loans) | 0.76% | 0.77% | - The provision for credit loss expense for the quarter ended March 31, 2025, was primarily driven by the **charge-offs**[15](index=15&type=chunk) [Capital](index=3&type=section&id=2.4%20Capital) The Company's capital position remained strong, with increases in both book value and tangible book value per share, and regulatory capital ratios exceeding 'well-capitalized' levels Capital Metrics (QoQ) | Metric | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :-------------------------- | :------------- | :---------------- | :--------- | :--------- | | Book Value Per Share | $11.58 | $11.53 | $0.05 | 0.4% | | Tangible Book Value Per Share | $9.80 | $9.75 | $0.05 | 0.5% | | Tangible Equity to Tangible Assets Ratio | 8.31% | - | - | - | - Total stockholders' equity included after-tax net unrealized losses on securities available for sale of **$80.1 million**, partially offset by after-tax unrealized gains on derivatives of **$10.7 million**[15](index=15&type=chunk) - The Company and the Bank maintained regulatory capital ratios in excess of the levels required to be classified as **'well-capitalized'**[15](index=15&type=chunk) [Comparative Financial Analysis - Linked-Quarter](index=4&type=section&id=3.%20Comparative%20Financial%20Analysis%20-%20Linked-Quarter) This section provides a detailed quarter-over-quarter comparison of consolidated financial statements and performance ratios [Consolidated Balance Sheets (Linked-Quarter)](index=4&type=section&id=3.1%20Consolidated%20Balance%20Sheets%20%28Linked-Quarter%29) This section provides a detailed comparison of the Company's consolidated balance sheets for the quarters ended March 31, 2025, and December 31, 2024, highlighting changes in assets, liabilities, and stockholders' equity Consolidated Balance Sheets (QoQ) | (Dollars in Thousands) | March 31, 2025 | December 31, 2024 | Variance or Change | Variance or Change Pct. | | :--------------------- | :------------- | :---------------- | :----------------- | :---------------------- | | Cash and cash equivalents | $126,095 | $141,554 | ($15,459) | -10.9 % | | Securities available for sale | $1,003,393 | $1,018,279 | ($14,886) | -1.5 % | | Loans receivable | $5,846,175 | $5,791,758 | $54,417 | 0.9 % | | Total assets | $7,733,141 | $7,731,385 | $1,756 | 0.0 % | | Non-interest-bearing deposits | $587,118 | $601,510 | ($14,392) | -2.4 % | | Interest-bearing deposits | $5,120,230 | $5,069,550 | $50,680 | 1.0 % | | Total deposits | $5,707,348 | $5,671,060 | $36,288 | 0.6 % | | Borrowings | $1,213,976 | $1,258,949 | ($44,973) | -3.6 % | | Total liabilities | $6,985,028 | $6,986,532 | ($1,504) | -0.0 % | | Total stockholders' equity | $748,113 | $744,853 | $3,260 | 0.4 % | | Equity to assets | 9.67 % | 9.63 % | 0.04 % | - | | Book value per share | $11.58 | $11.53 | $0.05 | 0.4 % | [Consolidated Statements of Income (Linked-Quarter)](index=5&type=section&id=3.2%20Consolidated%20Statements%20of%20Income%20%28Linked-Quarter%29) This section presents a comparative analysis of the Company's consolidated statements of income for the quarters ended March 31, 2025, and December 31, 2024, detailing changes in interest income, interest expense, non-interest income, and non-interest expense Consolidated Statements of Income (QoQ) | (Dollars in Thousands) | March 31, 2025 | December 31, 2024 | Variance or Change | Variance or Change Pct. | | :--------------------- | :------------- | :---------------- | :----------------- | :---------------------- | | Total interest income | $79,334 | $81,485 | ($2,151) | -2.6 % | | 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 % | | Total non-interest income | $4,562 | $4,873 | ($311) | -6.4 % | | Total non-interest expense | $30,390 | $29,561 | $829 | 2.8 % | | Income before income taxes | $7,848 | $7,817 | $31 | 0.4 % | | Income taxes | $1,200 | $1,251 | ($51) | -4.1 % | | Net income | $6,648 | $6,566 | $82 | 1.2 % | | Diluted EPS | $0.11 | $0.10 | $0.01 | - | | Cash dividends declared per common share | $0.11 | $0.11 | — | - | [Average Balance Sheet Data (Linked-Quarter)](index=6&type=section&id=3.3%20Average%20Balance%20Sheet%20Data%20%28Linked-Quarter%29) This section provides average balance sheet data for the quarters ended March 31, 2025, and December 31, 2024, detailing average interest-earning assets, interest-bearing liabilities, and their respective components Average Balance Sheet Data (QoQ) | (Dollars in Thousands) | March 31, 2025 | December 31, 2024 | Variance or Change | Variance or Change Pct. | | :--------------------- | :------------- | :---------------- | :----------------- | :---------------------- | | Total interest-earning assets | $7,176,528 | $7,173,918 | $2,610 | 0.0 % | | Loans receivable, including loans held for sale | $5,805,045 | $5,762,053 | $42,992 | 0.7 % | | Total interest-bearing deposits | $5,103,596 | $4,973,900 | $129,696 | 2.6 % | | 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 % | | Total assets | $7,633,734 | $7,633,900 | ($166) | -0.0 % | | Stockholders' equity | $745,225 | $747,850 | ($2,625) | -0.4 % | [Performance Ratio Highlights (Linked-Quarter)](index=7&type=section&id=3.4%20Performance%20Ratio%20Highlights%20%28Linked-Quarter%29) This section highlights key performance ratios for the quarters ended March 31, 2025, and December 31, 2024, including yields on assets, costs of liabilities, interest rate spread, net interest margin, and profitability ratios Performance Ratio Highlights (QoQ) | Metric | March 31, 2025 | December 31, 2024 | Variance or Change | | :----------------------------------- | :------------- | :---------------- | :----------------- | | Average yield on total interest-earning assets | 4.42 % | 4.54 % | -0.12 % | | Average cost of total interest-bearing liabilities | 2.91 % | 3.15 % | -0.24 % | | Interest rate spread | 1.51 % | 1.39 % | 0.12 % | | Net interest margin | 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 | 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) | 4.28 % | 4.21 % | 0.07 % | [Five-Quarter Financial Trend Analysis](index=8&type=section&id=4.%20Five-Quarter%20Financial%20Trend%20Analysis) This section offers a comprehensive five-quarter trend analysis of financial statements, loan portfolio, funding, and key ratios [Consolidated Balance Sheets (Five-Quarter Trend)](index=8&type=section&id=4.1%20Consolidated%20Balance%20Sheets%20%28Five-Quarter%20Trend%29) This section provides a five-quarter trend analysis of the Company's consolidated balance sheets, offering a broader perspective on asset, liability, and equity movements from March 2024 to March 2025 Consolidated Balance Sheets (Five-Quarter Trend) | (Dollars in Thousands) | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :--------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Total assets | $7,733,141 | $7,731,385 | $7,772,379 | $7,683,461 | $7,841,972 | | Loans receivable | $5,846,175 | $5,791,758 | $5,784,246 | $5,732,787 | $5,758,336 | | 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 | | Total stockholders' equity | $748,113 | $744,853 | $751,537 | $753,571 | $849,078 | | Equity to assets | 9.67 % | 9.63 % | 9.67 % | 9.81 % | 10.83 % | | Book value per share | $11.58 | $11.53 | $11.64 | $11.70 | $13.18 | [Supplemental Balance Sheet Highlights - Loan Portfolio & Asset Quality (Five-Quarter Trend)](index=9&type=section&id=4.2%20Supplemental%20Balance%20Sheet%20Highlights%20-%20Loan%20Portfolio%20%26%20Asset%20Quality%20%28Five-Quarter%20Trend%29) This section details the composition of the loan portfolio and key asset quality metrics over the past five quarters, showing trends in commercial, residential, and consumer loans, as well as non-performing assets and credit loss allowances Loan Portfolio Composition (Five-Quarter Trend) | (Dollars in Thousands) | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :--------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | 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 | | 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 | Asset Quality Metrics (Five-Quarter Trend) | Metric | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Total nonperforming assets | $37,683 | $37,697 | $39,854 | $39,882 | $39,546 | | Nonperforming assets (% total assets) | 0.49 % | 0.49 % | 0.51 % | 0.52 % | 0.50 % | | ACL to total loans | 0.76 % | 0.77 % | 0.78 % | 0.78 % | 0.78 % | | Net charge-offs | $368 | $573 | $124 | $3,518 | $286 | [Supplemental Balance Sheet Highlights - Funding Composition (Five-Quarter Trend)](index=10&type=section&id=4.3%20Supplemental%20Balance%20Sheet%20Highlights%20-%20Funding%20Composition%20%28Five-Quarter%20Trend%29) This section provides a five-quarter overview of the Company's funding composition, including trends in various deposit types, borrowings, and the proportion of uninsured deposits Funding Composition (Five-Quarter Trend) | (Dollars in Thousands) | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :--------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Non-interest-bearing deposits | $587,118 | $601,510 | $592,099 | $598,367 | $586,089 | | 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 | | Total borrowings | $1,213,976 | $1,258,949 | $1,479,888 | $1,709,789 | $1,722,178 | | 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 (reported) | $1,959,070 | $1,935,607 | $1,799,726 | $1,772,623 | $1,760,740 | [Consolidated Statements of Income (Loss) (Five-Quarter Trend)](index=11&type=section&id=4.4%20Consolidated%20Statements%20of%20Income%20%28Loss%29%20%28Five-Quarter%20Trend%29) This section provides a five-quarter trend analysis of the Company's consolidated statements of income (loss), illustrating the evolution of interest income, interest expense, non-interest income, non-interest expense, and net income Consolidated Statements of Income (Loss) (Five-Quarter Trend) | (Dollars in Thousands) | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :--------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Total interest income | $79,334 | $81,485 | $83,252 | $82,990 | $82,085 | | Total interest expense | $45,292 | $48,873 | $50,806 | $49,714 | $47,766 | | Net interest income | $34,042 | $32,612 | $32,446 | $33,276 | $34,319 | | Provision for credit losses | $366 | $107 | $108 | $3,527 | $349 | | Total non-interest income | $4,562 | $4,873 | $4,626 | $5,806 | $4,203 | | Total non-interest expense | $30,390 | $29,561 | $29,786 | $126,551 | $29,059 | | Net income (loss) | $6,648 | $6,566 | $6,092 | ($90,079) | $7,397 | | Diluted EPS | $0.11 | $0.10 | $0.10 | ($1.45) | $0.12 | | Dividend payout ratio | 104.3 % | 105.6 % | 113.2 % | -7.7 % | 92.5 % | [Average Balance Sheet Data (Five-Quarter Trend)](index=12&type=section&id=4.5%20Average%20Balance%20Sheet%20Data%20%28Five-Quarter%20Trend%29) This section provides average balance sheet data over five quarters, offering insights into the trends of average interest-earning assets, interest-bearing liabilities, and their components Average Balance Sheet Data (Five-Quarter Trend) | (Dollars in Thousands) | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :--------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Total interest-earning assets | $7,176,528 | $7,173,918 | $7,220,763 | $7,228,543 | $7,274,310 | | Loans receivable, including loans held-for-sale | $5,805,045 | $5,762,053 | $5,761,593 | $5,743,008 | $5,752,477 | | Total interest-bearing deposits | $5,103,596 | $4,973,900 | $4,706,437 | $4,555,941 | $4,719,570 | | Total borrowings | $1,122,347 | $1,241,977 | $1,562,594 | $1,735,653 | $1,639,790 | | Total assets | $7,633,734 | $7,633,900 | $7,688,433 | $7,695,080 | $7,851,721 | | Stockholders' equity | $745,225 | $747,850 | $750,678 | $751,070 | $844,782 | [Performance Ratio Highlights (Five-Quarter Trend)](index=13&type=section&id=4.6%20Performance%20Ratio%20Highlights%20%28Five-Quarter%20Trend%29) This section presents a five-quarter trend analysis of key performance ratios, including average yields, costs, interest rate spread, net interest margin, and profitability metrics, providing a historical view of the Company's operational efficiency and financial health Performance Ratio Highlights (Five-Quarter Trend) | Metric | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Average yield on total interest-earning assets | 4.42 % | 4.54 % | 4.61 % | 4.59 % | 4.51 % | | Average cost of total interest-bearing liabilities | 2.91 % | 3.15 % | 3.24 % | 3.16 % | 3.00 % | | Interest rate spread | 1.51 % | 1.39 % | 1.37 % | 1.43 % | 1.51 % | | Net interest margin | 1.90 % | 1.82 % | 1.80 % | 1.84 % | 1.89 % | | Efficiency ratio | 78.72 % | 78.86 % | 80.35 % | 323.81 % | 75.43 % | | Return on average assets (annualized) | 0.35 % | 0.34 % | 0.32 % | -4.68 % | 0.38 % | | Return on average equity (annualized) | 3.57 % | 3.51 % | 3.25 % | -47.97 % | 3.50 % | [Reconciliation of GAAP to Non-GAAP Measures](index=14&type=section&id=5.%20Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section reconciles GAAP financial metrics to non-GAAP adjusted measures for core performance analysis [Adjusted Net Income and Pre-tax, Pre-provision Net Revenue](index=14&type=section&id=5.1%20Adjusted%20Net%20Income%20and%20Pre-tax%2C%20Pre-provision%20Net%20Revenue) This section reconciles GAAP net income to adjusted net income and calculates pre-tax, pre-provision net revenue by adjusting for non-recurring transactions like goodwill impairment and the net effect of bank-owned life insurance restructure Adjusted Net Income and Pre-tax, Pre-provision Net Revenue (Five-Quarter Trend) | (Dollars in Thousands) | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :--------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Net income (loss) (GAAP) | $6,648 | $6,566 | $6,092 | ($90,079) | $7,397 | | Adjusted net income | $6,648 | $6,566 | $6,092 | $5,596 | $7,397 | | Pre-tax, pre-provision net revenue (non-GAAP) | $8,214 | $7,924 | $7,286 | ($87,469) | $9,463 | [Adjusted Earnings Per Share](index=14&type=section&id=5.2%20Adjusted%20Earnings%20Per%20Share) This section provides the reconciliation of GAAP earnings per share to adjusted earnings per share, reflecting the impact of non-recurring items on per-share metrics Adjusted Earnings Per Share (Five-Quarter Trend) | Metric | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :----------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Earnings per share - basic (GAAP) | $0.11 | $0.11 | $0.10 | ($1.45) | $0.12 | | Adjusted earnings per share - basic (non-GAAP) | $0.11 | $0.11 | $0.10 | $0.09 | $0.12 | | Earnings per share - diluted (GAAP) | $0.11 | $0.10 | $0.10 | ($1.45) | $0.12 | | Adjusted earnings per share - diluted (non-GAAP) | $0.11 | $0.10 | $0.10 | $0.09 | $0.12 | [Adjusted Return on Average Assets and Equity](index=15&type=section&id=5.3%20Adjusted%20Return%20on%20Average%20Assets%20and%20Equity) This section reconciles GAAP return on average assets and equity to their adjusted non-GAAP counterparts, providing a clearer view of core profitability by excluding the effects of non-recurring items Adjusted Return on Average Assets and Equity (Five-Quarter Trend) | Metric | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Return on average assets (GAAP) | 0.35 % | 0.34 % | 0.32 % | -4.68 % | 0.38 % | | Adjusted return on average assets (non-GAAP) | 0.35 % | 0.34 % | 0.32 % | 0.29 % | 0.38 % | | Return on average equity (GAAP) | 3.57 % | 3.51 % | 3.25 % | -47.97 % | 3.50 % | | Adjusted return on average equity (non-GAAP) | 3.57 % | 3.51 % | 3.25 % | 2.98 % | 3.50 % | | Return on average tangible equity (non-GAAP) | 4.28 % | 4.21 % | 3.89 % | 3.33 % | 4.68 % | | Adjusted return on average tangible equity (non-GAAP) | 4.28 % | 4.21 % | 3.89 % | 3.58 % | 4.68 % | [Adjusted Non-Interest Expense Ratio and Efficiency Ratio](index=15&type=section&id=5.4%20Adjusted%20Non-Interest%20Expense%20Ratio%20and%20Efficiency%20Ratio) This section provides the reconciliation of GAAP non-interest expense ratio and efficiency ratio to their adjusted non-GAAP equivalents, offering a normalized view of operational efficiency by excluding specific non-recurring expenses Adjusted Non-Interest Expense Ratio and Efficiency Ratio (Five-Quarter Trend) | Metric | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Non-interest expense (GAAP) | $30,390 | $29,561 | $29,786 | $126,551 | $29,059 | | Non-interest expense (non-GAAP) | $30,390 | $29,561 | $29,786 | $29,181 | $29,059 | | Non-interest expense ratio (GAAP) | 1.59 % | 1.55 % | 1.55 % | 6.58 % | 1.48 % | | Adjusted non-interest expense ratio (non-GAAP) | 1.59 % | 1.55 % | 1.55 % | 1.52 % | 1.48 % | | Efficiency ratio (GAAP) | 78.72 % | 78.86 % | 80.35 % | 323.81 % | 75.43 % | | Adjusted efficiency ratio (non-GAAP) | 78.72 % | 78.86 % | 80.35 % | 73.92 % | 75.43 % |

Core Points - Kearny Financial Corp. reported a net income of $6.6 million for the quarter ended March 31, 2025, which is an increase from $6.6 million for the previous quarter, with diluted earnings per share rising from $0.10 to $0.11 [1][21][24] - The Board of Directors declared a quarterly cash dividend of $0.11 per share, payable on May 21, 2025 [2] - The company experienced a quarter-over-quarter net interest income growth of $1.4 million, leading to an expansion of net interest margin by eight basis points [3][5] Financial Performance - Total assets increased to $7.73 billion, up by $1.8 million from the previous quarter [7] - Loans receivable rose to $5.85 billion, reflecting a growth of $54.4 million or 0.9%, primarily due to non-residential mortgage loans [7] - Deposits increased to $5.71 billion, a rise of $36.3 million or 0.6%, driven by interest-bearing demand deposits and consumer savings deposits [7] - Non-interest income decreased by $311,000 or 6.4% to $4.6 million, mainly due to lower gains on loan sales and electronic banking fees [6][8][24] Expense and Taxation - Non-interest expenses increased by $829,000 or 2.8% to $30.4 million, primarily due to higher salaries and benefits, net occupancy, and advertising expenses [9][13] - Income tax expense totaled $1.2 million, resulting in an effective tax rate of 15.3% for the quarter [10] Asset Quality and Capital - Non-performing assets remained stable at $37.7 million, representing 0.49% of total assets [14] - The allowance for credit losses was $44.5 million, or 0.76% of total loans, showing a slight decrease from the previous quarter [14] - Book value per share increased by $0.05 to $11.58, while tangible book value per share also rose by $0.05 to $9.80 [14]

Financial Position - Total assets increased by $47.9 million to $7.73 billion at December 31, 2024, from $7.68 billion at June 30, 2024[118] - Total deposits increased by $512.9 million, or 9.9%, to $5.67 billion at December 31, 2024, from $5.16 billion at June 30, 2024[130] - Total assets decreased to $7.66 billion as of December 31, 2024, from $7.98 billion a year earlier[1] - Total investment securities available for sale decreased by $54.6 million to $1.02 billion at December 31, 2024[119] - Uninsured deposits totaled $1.96 billion as of December 31, 2024, compared to $1.77 billion as of June 30, 2024[130] Loan and Credit Quality - Net loans receivable rose by $59.5 million, or 1.0%, to $5.75 billion at December 31, 2024, compared to $5.69 billion at June 30, 2024[122] - Nonperforming assets decreased by $2.2 million to $37.7 million, or 0.49% of total assets, at December 31, 2024[125] - The allowance for credit losses totaled $44.5 million, or 0.77% of total loans, at December 31, 2024[127] - Provision for credit losses decreased $2.0 million to $107,000 for the quarter ended December 31, 2024, compared to $2.1 million for the same quarter in 2023[144] - Provision for credit losses decreased by $2.1 million to $215,000 for the six months ended December 31, 2024, driven primarily by loan growth[2] Income and Expenses - Net income for the quarter ended December 31, 2024 was $6.6 million, or $0.10 per diluted share, compared to a net loss of $13.8 million, or $0.22 per diluted share, for the same period in 2023[136] - Net income for the six months ended December 31, 2024 was $12.7 million, or $0.20 per diluted share, compared to a net loss of $4.0 million, or $0.06 per diluted share, for the same period in 2023[154] - Net interest income decreased by $3.2 million to $32.6 million for the quarter ended December 31, 2024, down from $35.8 million in the prior year[137] - Net interest income for the six months ended December 31, 2024 decreased by $9.9 million to $65.1 million compared to $75.0 million for the same period in 2023[155] - Total non-interest income increased $20.9 million to $4.9 million for the quarter ended December 31, 2024, compared to a loss of $16.0 million for the same period in 2023[145] - Total non-interest income increased by $21.5 million to $9.5 million for the six months ended December 31, 2024, compared to a loss of $12.0 million in the prior year[3] - Total non-interest expense decreased $206,000 to $29.6 million for the quarter ending December 31, 2024, compared to $29.8 million in the prior year[149] - Income from BOLI increased $1.5 million to $2.6 million for the quarter ended December 31, 2024, primarily due to improved income from the BOLI restructure[148] Capital and Ratios - Stockholders' equity decreased by $8.7 million to $744.9 million at December 31, 2024, primarily due to cash dividends of $13.8 million[134] - Book value per share decreased by $0.16 to $11.53 at December 31, 2024[135] - Total capital to risk-weighted assets at December 31, 2024, was $699,334, representing a ratio of 14.49%, exceeding the minimum requirement of 8.00%[178] - Tier 1 capital to risk-weighted assets at December 31, 2024, was $658,410, with a ratio of 13.64%, above the minimum requirement of 6.00%[178] - Common equity tier 1 capital to risk-weighted assets at December 31, 2024, was $658,410, with a ratio of 13.64%, surpassing the minimum requirement of 4.50%[178] Interest Rate Risk - Economic Value of Equity (EVE) decreased by 39.08% to $346,622 under a +300 basis points interest rate scenario as of December 31, 2024[187] - Net interest income (NII) decreased by 8.72% to $136,617 under a +300 basis points interest rate scenario as of December 31, 2024[187] - Interest rate risk is managed through an Asset/Liability Management program overseen by the Board of Directors, with sensitivity analyses conducted for both earnings and capital[183][184] - The sensitivity of EVE and NII to interest rate changes is influenced by the composition and allocation of the balance sheet and the use of off-balance sheet instruments[188] - Future interest rates and their impact on net interest income are unpredictable and based on numerous assumptions, including market interest rates and borrower behavior[189] Other Financial Metrics - Total interest-earning assets were $7.20 billion with an average yield of 4.58% for the six months ended December 31, 2024, compared to $7.42 billion and 4.41% in 2023[1] - Total interest-bearing liabilities were $6.24 billion with an average cost of 3.19% for the six months ended December 31, 2024, compared to $6.46 billion and 2.75% in 2023[1] - Commitments to originate and purchase loans totaled $94.8 million as of December 31, 2024, up from $47.9 million at June 30, 2024[4] - Effective tax rate for the quarter ended December 31, 2024 was 16.0%, compared to (14.8)% for the same period in 2023[153] - Effective tax rate decreased to 15.6% for the six months ended December 31, 2024, from 460.3% in the prior year[4] - Equipment and systems expense increased by $137,000 to $7.8 million for the quarter ended December 31, 2024, due to ongoing digital banking initiatives[4]