Kearny Financial(KRNY) - 2025 FY - Earnings Call Transcript

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