Credit Losses and Loan Performance - The allowance for credit losses (ACL) totaled $44.9 million at June 30, 2024, representing 0.78% of total loans, down from $48.7 million or 0.83% at June 30, 2023, a decrease of $3.8 million [51]. - The annualized net charge-off rate increased to 0.17% for the year ended June 30, 2024, up from 0.01% for the year ended June 30, 2023, reflecting a rise of 16 basis points [48]. - The total non-performing loans were $39.9 million at June 30, 2024, down from $42.6 million at June 30, 2023 [51]. - The ACL allocated to multi-family mortgage loans was $24.1 million, representing 46.02% of total loans in that category as of June 30, 2024 [51]. Loan and Securities Portfolio - Total loans outstanding were $5.75 billion at June 30, 2024, compared to $5.85 billion at June 30, 2023, indicating a reduction in loan volume [51]. - The investment securities portfolio decreased to $1.21 billion at June 30, 2024, from $1.37 billion at June 30, 2023, a year-over-year decline of $165.6 million [54]. - Total securities available for sale decreased from $1,227,729 thousand in 2023 to $1,072,833 thousand in 2024, a decline of approximately 12.7% [67]. - Total debt securities available for sale amounted to $601,780 thousand in 2024, down from $648,184 thousand in 2023, representing a decrease of about 7.1% [67]. - The carrying value of residential pass-through securities available for sale dropped from $436,151 thousand in 2023 to $337,264 thousand in 2024, a reduction of approximately 22.7% [67]. - The total carrying value of mortgage-backed securities available for sale fell from $579,545 thousand in 2023 to $471,053 thousand in 2024, a decrease of approximately 18.7% [67]. Deposits and Funding - Certificates of deposit maturing within one year were $1.49 billion in 2024, down from $1.90 billion in 2023, indicating a decrease of about 21.6% [75]. - As of June 30, 2024, 68.2% of certificates of deposit were $100,000 or more, compared to 70.6% in 2023, showing a decline in higher balance deposits [76]. - The total average deposits decreased from $5,974,860 thousand in 2023 to $5,345,822 thousand in 2024, reflecting a decline of about 10.5% [79]. - The total amount of brokered certificates of deposit was approximately $408.2 million, accounting for 7.9% of total deposits as of June 30, 2024 [77]. - Wholesale funding amounted to $2.12 billion, representing approximately 27.6% of total assets as of June 30, 2024 [172]. - Public funds deposits from local government entities totaled $531.5 million, accounting for 10.3% of total deposits as of June 30, 2024 [174]. Interest Rate and Risk Management - The weighted average nominal interest rate for total average deposits increased to 2.29% in 2024 from 1.31% in 2023 [79]. - The weighted average interest rate on FHLB advances increased to 5.07% in 2024 from 4.92% in 2023 [82]. - Kearny Bank utilized interest rate derivatives with a total notional amount of $2.75 billion to manage interest rate exposure [86]. - The company’s interest rate risk analysis measures the sensitivity of projected net interest income (NII) over a one-year period, utilizing a static balance sheet assumption [270]. - The Economic Value of Equity (EVE) is calculated to assess the impact of interest rate movements on the present value of expected cash flows from assets and liabilities [271]. - The company acknowledges that future interest rates and their effects on net interest income are unpredictable and based on numerous assumptions [276]. Regulatory and Compliance - Kearny Bank's regulatory capital requirements include a common equity Tier 1 capital ratio of 4.5%, a Tier 1 capital ratio of 6.0%, and a total capital ratio of 8.0% [103]. - As of June 30, 2024, Kearny Bank exceeded all regulatory capital requirements and was classified as "well capitalized" with a total risk-based capital ratio of 10.0% or greater [110]. - Kearny Financial must comply with consolidated capital requirements applicable to savings and loan holding companies with $3 billion or more in consolidated assets, and was in compliance as of June 30, 2024 [136]. - Kearny Bank did not opt into the community bank leverage ratio framework, which requires maintaining a leverage ratio of greater than 9.0% [109]. - 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 [113]. Economic and Operational Risks - Economic conditions, including inflation, could negatively impact the company's results of operations and financial condition [166]. - The company faces risks associated with system failures and cyber-security threats that could disrupt operations and negatively affect earnings [176][177]. - Severe weather events and natural disasters could lead to increased loan delinquencies and reduced demand for products and services, adversely impacting financial performance [167]. - Increased competition from financial services technology companies may pressure the company to lower interest rates or fees, affecting profitability [170]. - Changes in tax laws and regulations could adversely affect the company’s financial condition and results of operations, potentially increasing regulatory compliance costs [184]. Human Resources and Corporate Governance - Kearny Bank employed 552 employees as of June 30, 2024, with approximately 60% identifying as female [90]. - The company’s ability to attract and retain key personnel is crucial for executing its business strategy and maintaining client relationships [193]. - The company’s Board of Directors oversees the Asset/Liability Management (ALM) program to manage interest rate risk, which is operationally managed by the Asset/Liability Management Committee (ALCO) [269]. - The company’s Board of Directors actively engages in cybersecurity oversight, with the Risk Committee responsible for monitoring the information security program [197]. Investment Strategy and Performance - Kearny Financial's investment strategy includes actively managing its investment securities portfolio, which may lead to realized losses affecting net income [148]. - The company may incur impairment charges if the fair value of investment securities declines below their carrying value, impacting financial results [158]. - Gains from the sale of residential mortgage loans totaled $602,000 for the year ended June 30, 2024, a decline of 20.8% from $760,000 in the previous year [156]. - As of June 30, 2024, the company had investment securities with fair values of approximately $1.19 billion, including $150.1 million in gross unrealized losses [160].

Financial Performance - Kearny Financial Corp. reported a GAAP net loss of $90.1 million, or $1.45 per diluted share, for Q4 2024, primarily due to a non-cash goodwill impairment of $95.3 million[1]. - For the fiscal year ended June 30, 2024, the company reported a GAAP net loss of $86.7 million, or $1.39 per diluted share, compared to a net income of $40.8 million, or $0.63 per diluted share, for the previous year[2]. - Adjusted net income for Q4 2024 was $5.6 million, or $0.09 per diluted share, down from $7.4 million, or $0.12 per diluted share, in Q1 2024[1]. - The net loss for the quarter was $90.1 million, compared to a net income of $7.4 million in the previous quarter[21]. - Net loss for the year was $(86,667,000) in 2024, a significant decline from net income of $40,811,000 in 2023, representing a 312.4% change[32]. - Basic and diluted net loss per common share was $(1.39) in 2024, compared to earnings of $0.63 per share in 2023[32]. - The company reported a net loss of $90,079 thousand compared to a net income of $7,397 thousand in the previous quarter[51]. - Basic and diluted net loss per common share was $(1.45), compared to earnings of $0.12 in the previous quarter[51]. Asset and Equity Changes - Total assets decreased by $158.5 million, or 2.0%, to $7.68 billion from March 31, 2024, and by $381.4 million, or 4.7%, from June 30, 2023[6]. - Total stockholders' equity decreased by 11.2% to $753.6 million from $849.1 million[18]. - Book value per share fell by 11.2% to $11.70, while tangible book value per share increased slightly by 0.3% to $9.90[18]. - Total assets decreased by 2.4% to $7,878,292,000 in 2024 from $8,068,937,000 in 2023[35]. - Stockholders' equity decreased by $93,712, or 11.1%, from $844,782 to $751,070[23]. - Total stockholders' equity decreased to $753,571 thousand, down from $849,078 thousand, a decline of 11.3%[41]. Income and Expense Analysis - Non-interest expense increased by $97.5 million, or 335.5%, to $126.6 million for Q4 2024, primarily due to the goodwill impairment[12]. - Net interest income after provision for credit losses dropped by 12.4% to $29.7 million[21]. - Provision for credit losses surged by 910.6% to $3.5 million, indicating increased risk[21]. - Non-interest income increased by 38.1% to $5.8 million, driven by gains in electronic banking fees[21]. - Total non-interest expense skyrocketed by 335.5% to $126.6 million, primarily due to a goodwill impairment of $97.4 million[21]. - Total non-interest expense rose by 73.9% to $215,151,000 in 2024 from $123,751,000 in 2023, largely due to a goodwill impairment of $97,370,000[32]. - Non-interest income turned negative at $(1,993,000) in 2024, a decline of 172.4% from $2,751,000 in 2023[32]. Asset Quality and Loan Performance - Non-performing assets increased to $39.9 million, or 0.52% of total assets, from $39.5 million, or 0.50% of total assets, at March 31, 2024[12]. - Net charge-offs for Q4 2024 totaled $3.5 million, or 0.25% of average loans, compared to $286,000, or 0.02% of average loans, in Q1 2024[12]. - Nonperforming loans increased to $39,882 thousand, representing 0.70% of total loans, compared to 0.69% in the previous quarter[45]. - The allowance for credit losses on loans was $44,939 thousand, maintaining a ratio of 0.78% to total loans[45]. Dividend and Capital Ratios - The company declared a quarterly cash dividend of $0.11 per share, payable on August 26, 2024[3]. - Cash dividends declared remained stable at $0.11 per common share, with a dividend payout ratio of -7.7%[21]. - As of June 30, 2024, the tangible equity to tangible assets ratio increased to 8.43%, and the Common Equity Tier 1 Capital Ratio rose to 14.79%[16]. Interest Income and Yield - Total interest income increased by 12.0% to $328,868,000 in 2024 from $293,724,000 in 2023[32]. - Average yield on interest-earning assets increased by 0.08% from 4.51% to 4.59%[25]. - Average yield on interest-earning assets increased to 4.48% in 2024 from 3.91% in 2023[36]. - Average yield on loans receivable increased to 4.58% for the quarter ended June 30, 2024, compared to 4.45% in the prior quarter, reflecting a rise of 2.92%[57]. Efficiency and Operational Metrics - The efficiency ratio significantly increased to 323.81% for the quarter ended June 30, 2024, compared to 75.43% in the previous quarter, indicating a substantial rise in operational costs relative to income[57]. - Return on average assets (annualized) was -4.68% for the quarter ended June 30, 2024, down from 0.38% in the prior quarter, showing a decline in profitability[57]. - Non-interest expense (GAAP) for the quarter was $126,551 thousand, significantly higher than $29,059 thousand in the previous quarter due to non-recurring transactions[64]. - The adjusted efficiency ratio (non-GAAP) improved to 73.92% from 75.43% in the previous quarter, indicating better cost management[64].

FAIRFIELD, N.J., July 25, 2024 (GLOBE NEWSWIRE) -- Kearny Financial Corp. (NASDAQ GS: KRNY) (the "Company"), the holding company of Kearny Bank (the "Bank"), reported a GAAP net loss for the quarter ended June 30, 2024 of $90.1 million, or $1.45 per diluted share, attributable to a non-cash, after-tax, goodwill impairment of $95.3 million. Excluding the impact of the goodwill impairment and other non-recurring transactions, adjusted net income for the quarter ended June 30, 2024 was $5.6 million, or $0.09 p ...

Company Overview - Kearny Financial Corp. is the parent company of Kearny Bank, headquartered in Fairfield, New Jersey, with 43 retail branch offices in northern and central New Jersey, as well as Brooklyn and Staten Island, New York [1] - As of March 31, 2024, Kearny Financial Corp. reported total assets of approximately $7.8 billion [1] Leadership Changes - Keith Suchodolski has been promoted to Senior Executive Vice President and Chief Operating Officer, effective July 1, 2024, having served in various leadership roles since 2013, including Chief Financial Officer since July 2018 [2][4] - Sean Byrnes has been promoted to Executive Vice President and Chief Financial Officer, also effective July 1, 2024. He joined the Bank in September 2020 and has held the position of Deputy Chief Financial Officer [4] Strategic Vision - Craig L. Montanaro, President and CEO, emphasized that Suchodolski's leadership and experience will be crucial in shaping and implementing the Company's strategic vision moving forward [3][5] - Byrnes will be responsible for all aspects of corporate finance and will collaborate with the senior leadership team to achieve the Company's strategic goals [4]

FAIRFIELD, N.J., June 20, 2024 (GLOBE NEWSWIRE) -- Kearny Financial Corp. (NASDAQ GS: KRNY) (the "Company"), the holding company for Kearny Bank (the "Bank"), announced today that the Board of Directors promoted Keith Suchodolski to Senior Executive Vice President and Chief Operating Officer, effective July 1, 2024. Mr. Suchodolski has held progressive leadership roles within the Company since 2013, most recently serving as Chief Financial Officer since July 2018. In his new role, Mr. Suchodolski's range of ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________ FORM 10-Q __________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________to Commission File Number 001-37399 __________ ...

For further information contact: Craig L. Montanaro, President and Chief Executive Officer, or Keith Suchodolski, Senior Executive Vice President and Chief Financial Officer Kearny Financial Corp. (973) 244-4500 KEARNY FINANCIAL CORP. ANNOUNCES THIRD QUARTER FISCAL 2024 RESULTS AND DECLARATION OF CASH DIVIDEND FOR IMMEDIATE RELEASE April 25, 2024 Fairfield, N.J., April 25, 2024 – Kearny Financial Corp. (NASDAQ GS: KRNY) (the "Company"), the holding company of Kearny Bank (the "Bank"), reported net income fo ...

FAIRFIELD, N.J., April 25, 2024 (GLOBE NEWSWIRE) -- Kearny Financial Corp. (NASDAQ GS: KRNY) (the "Company"), the holding company of Kearny Bank (the "Bank"), reported net income for the quarter ended March 31, 2024 of $7.4 million, or $0.12 per diluted share, compared to a net loss of $13.8 million, or $0.22 per diluted share, for the quarter ended December 31, 2023. The net loss for the quarter ended December 31, 2023 was impacted by various non-recurring items, as previously disclosed. The Company also a ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________ FORM 10-Q __________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________to Commission File Number 001-37399 _______ ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________ FORM 10-Q __________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________to Commission File Number 001-37399 ______ ...