EX-99.1 2 krny-20241024xexx991.htm EX-99.1
Exhibit 99.1
FOR IMMEDIATE RELEASE
October 24, 2024
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 FIRST QUARTER FISCAL 2025 RESULTS
AND DECLARATION OF CASH DIVIDEND
Fairfield, N.J., October 24, 2024 – Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), reported net income for the quarter ended September 30, 2024 of $6.1 million, or $0.10 per diluted share, compared to a GAAP net loss of $90.1 million, or $1.45 per diluted share, for the quarter ended June 30, 2024. The net loss for the quarter ended June 30, 2024 included a goodwill impairment of $95.3 million, as previously disclosed. Excluding this item, net income for the quarter ended September 30, 2024 increased $496,000 from adjusted net income of $5.6 million for the quarter ended June 30, 2024.
The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on November 20, 2024, to stockholders of record as of November 6, 2024.
Craig L. Montanaro, President and Chief Executive Officer, commented, “I’m pleased to report that this quarter saw our net interest margin reach its inflection point and begin to ascend. Despite four basis points of quarterly compression, each successive month of the quarter reflected an increase in our net interest margin. The recent fed funds rate reduction of 50 basis points has already begun translating into a cost of funds benefit in October. Additional fed funds rate cuts, which the market is anticipating, will be a positive catalyst for our liability-sensitive balance sheet.”
Mr. Montanaro continued, “Regarding asset quality, our loan portfolio remains strong. Minimal exposure to New York City rent-regulated multifamily and office real estate, coupled with our robust commercial real estate ACL coverage ratios and peer-leading charge-off ratios, leaves us well-positioned in the current environment.”
Balance Sheet
•Total assets were $7.77 billion at September 30, 2024, an increase of $88.9 million, or 1.2%, from June 30, 2024.
•Investment securities totaled $1.20 billion at September 30, 2024, a decrease of $5.5 million, or 0.5%, from June 30, 2024.
•Loans receivable totaled $5.78 billion at September 30, 2024, an increase of $51.5 million, or 0.9%, from June 30, 2024, primarily reflecting growth in one- to four-family residential mortgage loans and construction loans.
•Deposits were $5.47 billion at September 30, 2024, an increase of $312.4 million, or 6.1%, from June 30, 2024. This increase was largely the result of a reallocation from Federal Home Loan Bank (“FHLB”) advances into brokered certificates of deposits, due to the relatively more favorable economics of brokered deposits compared to advances.
•Borrowings were $1.48 billion at September 30, 2024, a decrease of $229.9 million, or 13.4%, from June 30, 2024, primarily reflecting a decrease in FHLB borrowings offset by an increase in brokered certificates of deposits, as noted above.
•At September 30, 2024, the Company maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.06 billion, an increase of $240.0 million from June 30, 2024, and represents 26.5% of total assets.
1

Earnings
Net Interest Income and Net Interest Margin
•Net interest margin contracted four basis points to 1.80% for the quarter ended September 30, 2024. The decrease for the quarter was driven by increases in the cost and average balances of interest-bearing deposits and a decrease in the average balance of interest-earning assets, partially offset by decreases in the average balances of interest-bearing borrowings and higher yields on interest-earning assets.
•For the quarter ended September 30, 2024, net interest income decreased $830,000 to $32.4 million from $33.3 million for the quarter ended June 30, 2024. Included in net interest income for the quarters ended September 30, 2024 and June 30, 2024, respectively, was purchase accounting accretion of $649,000 and $612,000, and loan prepayment penalty income of $52,000 and $366,000.
Non-Interest Income
•Non-interest income decreased $1.2 million to income of $4.6 million for the quarter ended September 30, 2024, from $5.8 million for the quarter ended June 30, 2024. Included in non-interest income for the quarter ended June 30, 2024 was a non-recurring contract renewal bonus of $750,000 and $1.1 million in non-recurring payments on two life insurance policies, partially offset by a $392,000 non-recurring exchange charge related to the December 2023 Bank Owned Life Insurance (“BOLI”) restructure. No such non-recurring items were recorded during the quarter ended September 30, 2024.
•Income from BOLI decreased $642,000 to $2.6 million for the quarter ended September 30, 2024 from $3.2 million for the quarter ended June 30, 2024, primarily driven by the non-recurring items recorded for the quarter ended June 30, 2024, as disclosed above.
Non-Interest Expense
•For the quarter ended September 30, 2024, non-interest expense decreased $96.8 million, or 76.5%, to $29.8 million from $126.6 million for the quarter ended June 30, 2024, driven by a non-cash goodwill impairment recognized in the prior comparative period. Excluding the goodwill impairment, adjusted non-interest expense increased $605,000 from $29.2 million, primarily driven by increases in salary and benefits expense and other expense.
•Salary and benefits expense increased $232,000 primarily driven by annual merit increases and higher payroll taxes, partially offset by a non-recurring decrease in stock-based compensation.
•Other expense increased $344,000 primarily driven by an increase of $243,000 in the provision for credit losses on off balance sheet commitments.
Income Taxes
•Income tax expense totaled $1.1 million for the quarter ended September 30, 2024, compared to an income tax benefit of $917,000 for the quarter ended June 30, 2024. The increase in income tax expense was primarily due to higher pre-tax income in the current quarter, coupled with a partial reversal of the deferred tax liability associated with the previously recorded goodwill impairment in the prior quarter.
Asset Quality
•The balance of non-performing assets remained steady at $39.9 million, or 0.51% of total assets, at September 30, 2024, and $39.9 million, or 0.52% of total assets, at June 30, 2024, respectively.
•Net charge-offs totaled $124,000, or 0.01% of average loans, on an annualized basis, for the quarter ended September 30, 2024, compared to $3.5 million, or 0.25% of average loans, on an annualized basis, for the quarter ended June 30, 2024.
•For the quarter ended September 30, 2024, the Company recorded a provision for credit losses of $108,000, compared to $3.5 million for the quarter ended June 30, 2024. The provision for credit loss expense for the quarter ended September 30, 2024 was primarily driven by loan growth.
•The allowance for credit losses (“ACL”) was $44.9 million, or 0.78% of total loans, at September 30, 2024 and remained unchanged from June 30, 2024.
2

Capital
•For the quarter ended September 30, 2024, book value per share decreased $0.06, or 0.5%, to $11.64 while tangible book value per share decreased $0.05, or 0.5%, to $9.85.
•At September 30, 2024, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $76.0 million, partially offset by after-tax unrealized gains on derivatives of $11.0 million. After-tax net unrecognized losses on securities held to maturity of $8.2 million were not reflected in total stockholders’ equity.
•At September 30, 2024, the Company’s tangible equity to tangible assets ratio equaled 8.31% and the regulatory capital ratios of both the Company and the Bank were in excess of the levels required by federal banking regulators to be classified as “well-capitalized” under regulatory guidelines.
This earnings release should be read in conjunction with Kearny Financial Corp.’s Q1 2025 Investor Presentation, a copy of which is available through the Investor Relations link located at the bottom of the page of our website at www.kearnybank.com and via a Current Report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov.
Statements contained in this news release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company does not undertake and specifically disclaims any obligation to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.
Category: Earnings
3

Linked-Quarter Comparative Financial Analysis

Kearny Financial Corp.
Consolidated Balance Sheets
(Unaudited)

(Dollars and Shares in Thousands, Except Per Share Data) | September 30, 2024 | June 30, 2024 | Variance or Change | Variance or Change Pct.
Assets |  |  |  |
Cash and cash equivalents | $ | 155,574 |  | $ | 63,864 |  | $ | 91,710 |  | 143.6 | %
Securities available for sale | 1,070,811 |  | 1,072,833 |  | (2,022) |  | -0.2 | %
Securities held to maturity | 132,256 |  | 135,742 |  | (3,486) |  | -2.6 | %
Loans held-for-sale | 8,866 |  | 6,036 |  | 2,830 |  | 46.9 | %
Loans receivable | 5,784,246 |  | 5,732,787 |  | 51,459 |  | 0.9 | %
Less: allowance for credit losses on loans | (44,923) |  | (44,939) |  | (16) |  | — | %
Net loans receivable | 5,739,323 |  | 5,687,848 |  | 51,475 |  | 0.9 | %
Premises and equipment | 45,189 |  | 44,940 |  | 249 |  | 0.6 | %
Federal Home Loan Bank stock | 57,706 |  | 80,300 |  | (22,594) |  | -28.1 | %
Accrued interest receivable | 29,467 |  | 29,521 |  | (54) |  | -0.2 | %
Goodwill | 113,525 |  | 113,525 |  | — |  | — | %
Core deposit intangible | 1,805 |  | 1,931 |  | (126) |  | -6.5 | %
Bank owned life insurance | 300,186 |  | 297,874 |  | 2,312 |  | 0.8 | %
Deferred income taxes, net | 50,131 |  | 50,339 |  | (208) |  | -0.4 | %
Other assets | 67,540 |  | 98,708 |  | (31,168) |  | -31.6 | %
Total assets | $ | 7,772,379 |  | $ | 7,683,461 |  | $ | 88,918 |  | 1.2 | %
Liabilities |  |  |  |
Deposits: |  |  |  |
Non-interest-bearing | $ | 592,099 |  | $ | 598,366 |  | $ | (6,267) |  | -1.0 | %
Interest-bearing | 4,878,413 |  | 4,559,757 |  | 318,656 |  | 7.0 | %
Total deposits | 5,470,512 |  | 5,158,123 |  | 312,389 |  | 6.1 | %
Borrowings | 1,479,888 |  | 1,709,789 |  | (229,901) |  | -13.4 | %
Advance payments by borrowers for taxes | 17,824 |  | 17,409 |  | 415 |  | 2.4 | %
Other liabilities | 52,618 |  | 44,569 |  | 8,049 |  | 18.1 | %
Total liabilities | 7,020,842 |  | 6,929,890 |  | 90,952 |  | 1.3 | %
Stockholders' Equity |  |  |  |
Common stock | 646 |  | 644 |  | 2 |  | 0.3 | %
Paid-in capital | 493,523 |  | 493,680 |  | (157) |  | — | %
Retained earnings | 342,522 |  | 343,326 |  | (804) |  | -0.2 | %
Unearned ESOP shares | (20,430) |  | (20,916) |  | 486 |  | 2.3 | %
Accumulated other comprehensive loss | (64,724) |  | (63,163) |  | (1,561) |  | -2.5 | %
Total stockholders' equity | 751,537 |  | 753,571 |  | (2,034) |  | -0.3 | %
Total liabilities and stockholders' equity | $ | 7,772,379 |  | $ | 7,683,461 |  | $ | 88,918 |  | 1.2 | %
Consolidated capital ratios |  |  |  |
Equity to assets | 9.67 | % | 9.81 | % | -0.14 | % |
Tangible equity to tangible assets (1) | 8.31 | % | 8.43 | % | -0.12 | % |
Share data |  |  |  |
Outstanding shares | 64,580 | 64,434 | 146 | 0.2 | %
Book value per share | $ | 11.64 |  | $ | 11.70 |  | $ | (0.06) |  | -0.5 | %
Tangible book value per share (2) | $ | 9.85 |  | $ | 9.90 |  | $ | (0.05) |  | -0.5 | %

_________________________
(1)Tangible equity equals total stockholders' equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.
(2)Tangible book value equals total stockholders' equity reduced by goodwill and core deposit intangible assets.
4

Kearny Financial Corp.
Consolidated Statements of Income (Loss)
(Unaudited)

(Dollars and Shares in Thousands, Except Per Share Data) | Three Months Ended | Variance or Change | Variance or Change Pct. |
September 30, 2024 | June 30, 2024 |
Interest income |  |  |  |  |
Loans | $ | 66,331 |  | $ | 65,819 |  | $ | 512 |  | 0.8 | % |
Taxable investment securities | 14,384 |  | 14,802 |  | (418) |  | -2.8 | % |
Tax-exempt investment securities | 71 |  | 80 |  | (9) |  | -11.3 | % |
Other interest-earning assets | 2,466 |  | 2,289 |  | 177 |  | 7.7 | % |
Total interest income | 83,252 |  | 82,990 |  | 262 |  | 0.3 | % |
Interest expense |  |  |  |  |
Deposits | 35,018 |  | 32,187 |  | 2,831 |  | 8.8 | % |
Borrowings | 15,788 |  | 17,527 |  | (1,739) |  | -9.9 | % |
Total interest expense | 50,806 |  | 49,714 |  | 1,092 |  | 2.2 | % |
Net interest income | 32,446 |  | 33,276 |  | (830) |  | -2.5 | % |
Provision for credit losses | 108 |  | 3,527 |  | (3,419) |  | -96.9 | % |
Net interest income after provision for credit losses | 32,338 |  | 29,749 |  | 2,589 |  | 8.7 | % |
Non-interest income |  |  |  |  |
Fees and service charges | 635 |  | 580 |  | 55 |  | 9.5 | % |
Gain on sale of loans | 200 |  | 111 |  | 89 |  | 80.2 | % |
Income from bank owned life insurance | 2,567 |  | 3,209 |  | (642) |  | -20.0 | % |
Electronic banking fees and charges | 391 |  | 1,130 |  | (739) |  | -65.4 | % |
Other income | 833 |  | 776 |  | 57 |  | 7.3 | % |
Total non-interest income | 4,626 |  | 5,806 |  | (1,180) |  | -20.3 | % |
Non-interest expense |  |  |  |  |
Salaries and employee benefits | 17,498 |  | 17,266 |  | 232 |  | 1.3 | % |
Net occupancy expense of premises | 2,798 |  | 2,738 |  | 60 |  | 2.2 | % |
Equipment and systems | 3,860 |  | 3,785 |  | 75 |  | 2.0 | % |
Advertising and marketing | 342 |  | 480 |  | (138) |  | -28.8 | % |
Federal deposit insurance premium | 1,563 |  | 1,532 |  | 31 |  | 2.0 | % |
Directors' compensation | 361 |  | 360 |  | 1 |  | 0.3 | % |
Goodwill impairment | — |  | 97,370 |  | (97,370) |  | -100.0 | % |
Other expense | 3,364 |  | 3,020 |  | 344 |  | 11.4 | % |
Total non-interest expense | 29,786 |  | 126,551 |  | (96,765) |  | -76.5 | % |
Income (loss) before income taxes | 7,178 |  | (90,996) |  | 98,174 |  | 107.9 | % |
Income taxes | 1,086 |  | (917) |  | 2,003 |  | -218.4 | % |
Net income (loss) | $ | 6,092 |  | $ | (90,079) |  | $ | 96,171 |  | 106.8 | % |
Net income (loss) per common share (EPS) |  |  |  |  |
Basic | $ | 0.10 |  | $ | (1.45) |  | $ | 1.55 |  |  |
Diluted | $ | 0.10 |  | $ | (1.45) |  | $ | 1.55 |  |  |
Dividends declared |  |  |  |  |
Cash dividends declared per common share | $ | 0.11 |  | $ | 0.11 |  | $ | — |  |  |
Cash dividends declared | $ | 6,896 |  | $ | 6,903 |  | $ | (7) |  |  |
Dividend payout ratio | 113.2 | % | -7.7 | % | 120.9 | % |  |
Weighted average number of common shares outstanding |  |  |  |  |
Basic | 62,389 | 62,254 | 135 |  |
Diluted | 62,420 | 62,254 | 166 |  |

5

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)

(Dollars in Thousands) | Three Months Ended | Variance or Change | Variance or Change Pct.
September 30, 2024 | June 30, 2024
Assets |  |  |  |
Interest-earning assets: |  |  |  |
Loans receivable, including loans held for sale | $ | 5,761,593 |  | $ | 5,743,008 |  | $ | 18,585 |  | 0.3 | %
Taxable investment securities | 1,314,945 |  | 1,343,541 |  | (28,596) |  | -2.1 | %
Tax-exempt investment securities | 12,244 |  | 13,737 |  | (1,493) |  | -10.9 | %
Other interest-earning assets | 131,981 |  | 128,257 |  | 3,724 |  | 2.9 | %
Total interest-earning assets | 7,220,763 |  | 7,228,543 |  | (7,780) |  | -0.1 | %
Non-interest-earning assets | 467,670 |  | 466,537 |  | 1,133 |  | 0.2 | %
Total assets | $ | 7,688,433 |  | $ | 7,695,080 |  | $ | (6,647) |  | -0.1 | %
Liabilities and Stockholders' Equity |  |  |  |
Interest-bearing liabilities: |  |  |  |
Deposits: |  |  |  |
Interest-bearing demand | $ | 2,282,608 |  | $ | 2,310,521 |  | $ | (27,913) |  | -1.2 | %
Savings | 668,240 |  | 631,622 |  | 36,618 |  | 5.8 | %
Certificates of deposit | 1,755,589 |  | 1,613,798 |  | 141,791 |  | 8.8 | %
Total interest-bearing deposits | 4,706,437 |  | 4,555,941 |  | 150,496 |  | 3.3 | %
Borrowings: |  |  |  |
Federal Home Loan Bank advances | 1,325,583 |  | 1,507,192 |  | (181,609) |  | -12.0 | %
Other borrowings | 237,011 |  | 228,461 |  | 8,550 |  | 3.7 | %
Total borrowings | 1,562,594 |  | 1,735,653 |  | (173,059) |  | -10.0 | %
Total interest-bearing liabilities | 6,269,031 |  | 6,291,594 |  | (22,563) |  | -0.4 | %
Non-interest-bearing liabilities: |  |  |  |
Non-interest-bearing deposits | 599,095 |  | 589,438 |  | 9,657 |  | 1.6 | %
Other non-interest-bearing liabilities | 69,629 |  | 62,978 |  | 6,651 |  | 10.6 | %
Total non-interest-bearing liabilities | 668,724 |  | 652,416 |  | 16,308 |  | 2.5 | %
Total liabilities | 6,937,755 |  | 6,944,010 |  | (6,255) |  | -0.1 | %
Stockholders' equity | 750,678 |  | 751,070 |  | (392) |  | -0.1 | %
Total liabilities and stockholders' equity | $ | 7,688,433 |  | $ | 7,695,080 |  | $ | (6,647) |  | -0.1 | %
Average interest-earning assets to average interest-bearing liabilities | 115.18 | % | 114.89 | % | 0.29 | % | 0.3 | %

6

Kearny Financial Corp.
Performance Ratio Highlights
(Unaudited)

| Three Months Ended | Variance or Change
| September 30, 2024 | June 30, 2024
Average yield on interest-earning assets: |  |  |
Loans receivable, including loans held for sale | 4.61 | % | 4.58 | % | 0.03 | %
Taxable investment securities | 4.38 | % | 4.41 | % | -0.03 | %
Tax-exempt investment securities (1) | 2.32 | % | 2.32 | % | — | %
Other interest-earning assets | 7.47 | % | 7.14 | % | 0.33 | %
Total interest-earning assets | 4.61 | % | 4.59 | % | 0.02 | %
Average cost of interest-bearing liabilities: |  |  |
Deposits: |  |  |
Interest-bearing demand | 3.13 | % | 3.06 | % | 0.07 | %
Savings | 1.05 | % | 0.63 | % | 0.42 | %
Certificates of deposit | 3.51 | % | 3.35 | % | 0.16 | %
Total interest-bearing deposits | 2.98 | % | 2.83 | % | 0.15 | %
Borrowings: |  |  |
Federal Home Loan Bank advances | 3.82 | % | 3.86 | % | -0.04 | %
Other borrowings | 5.28 | % | 5.24 | % | 0.04 | %
Total borrowings | 4.04 | % | 4.04 | % | — | %
Total interest-bearing liabilities | 3.24 | % | 3.16 | % | 0.08 | %
Interest rate spread (2) | 1.37 | % | 1.43 | % | -0.06 | %
Net interest margin (3) | 1.80 | % | 1.84 | % | -0.04 | %
Non-interest income to average assets (annualized) | 0.24 | % | 0.30 | % | -0.06 | %
Non-interest expense to average assets (annualized) | 1.55 | % | 6.58 | % | -5.03 | %
Efficiency ratio (4) | 80.35 | % | 323.81 | % | -243.46 | %
Return on average assets (annualized) | 0.32 | % | -4.68 | % | 5.00 | %
Return on average equity (annualized) | 3.25 | % | -47.97 | % | 51.22 | %
Return on average tangible equity (annualized) (5) | 3.89 | % | 3.33 | % | 0.56 | %

_________________________
(1)The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.
(2)Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.
(3)Net interest income divided by average interest-earning assets.
(4)Non-interest expense divided by the sum of net interest income and non-interest income.
(5)Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets.
7

Five-Quarter Financial Trend Analysis

Kearny Financial Corp.
Consolidated Balance Sheets

(Dollars and Shares in Thousands, Except Per Share Data) | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023
| (Unaudited) | (Audited) | (Unaudited) | (Unaudited) | (Unaudited)
Assets |  |  |  |  |
Cash and cash equivalents | $ | 155,574 |  | $ | 63,864 |  | $ | 71,027 |  | $ | 73,860 |  | $ | 57,219 |
Securities available for sale | 1,070,811 |  | 1,072,833 |  | 1,098,655 |  | 1,144,175 |  | 1,215,633 |
Securities held to maturity | 132,256 |  | 135,742 |  | 139,643 |  | 141,959 |  | 143,730 |
Loans held-for-sale | 8,866 |  | 6,036 |  | 4,117 |  | 14,030 |  | 3,934 |
Loans receivable | 5,784,246 |  | 5,732,787 |  | 5,758,336 |  | 5,745,629 |  | 5,736,049 |
Less: allowance for credit losses on loans | (44,923) |  | (44,939) |  | (44,930) |  | (44,867) |  | (46,872) |
Net loans receivable | 5,739,323 |  | 5,687,848 |  | 5,713,406 |  | 5,700,762 |  | 5,689,177 |
Premises and equipment | 45,189 |  | 44,940 |  | 45,053 |  | 45,928 |  | 46,868 |
Federal Home Loan Bank stock | 57,706 |  | 80,300 |  | 81,347 |  | 83,372 |  | 81,509 |
Accrued interest receivable | 29,467 |  | 29,521 |  | 31,065 |  | 30,258 |  | 29,766 |
Goodwill | 113,525 |  | 113,525 |  | 210,895 |  | 210,895 |  | 210,895 |
Core deposit intangible | 1,805 |  | 1,931 |  | 2,057 |  | 2,189 |  | 2,323 |
Bank owned life insurance | 300,186 |  | 297,874 |  | 296,493 |  | 256,064 |  | 294,491 |
Deferred income taxes, net | 50,131 |  | 50,339 |  | 47,225 |  | 46,116 |  | 56,500 |
Other real estate owned | — |  | — |  | — |  | 11,982 |  | 12,956 |
Other assets | 67,540 |  | 98,708 |  | 100,989 |  | 136,242 |  | 129,865 |
Total assets | $ | 7,772,379 |  | $ | 7,683,461 |  | $ | 7,841,972 |  | $ | 7,897,832 |  | $ | 7,974,866 |
Liabilities |  |  |  |  |
Deposits: |  |  |  |  |
Non-interest-bearing | $ | 592,099 |  | $ | 598,366 |  | $ | 586,089 |  | $ | 584,130 |  | $ | 595,141 |
Interest-bearing | 4,878,413 |  | 4,559,757 |  | 4,622,961 |  | 4,735,500 |  | 4,839,027 |
Total deposits | 5,470,512 |  | 5,158,123 |  | 5,209,050 |  | 5,319,630 |  | 5,434,168 |
Borrowings | 1,479,888 |  | 1,709,789 |  | 1,722,178 |  | 1,667,055 |  | 1,626,933 |
Advance payments by borrowers for taxes | 17,824 |  | 17,409 |  | 17,387 |  | 16,742 |  | 16,907 |
Other liabilities | 52,618 |  | 44,569 |  | 44,279 |  | 46,427 |  | 47,324 |
Total liabilities | 7,020,842 |  | 6,929,890 |  | 6,992,894 |  | 7,049,854 |  | 7,125,332 |
Stockholders' Equity |  |  |  |  |
Common stock | 646 |  | 644 |  | 644 |  | 645 |  | 652 |
Paid-in capital | 493,523 |  | 493,680 |  | 493,187 |  | 493,297 |  | 497,269 |
Retained earnings | 342,522 |  | 343,326 |  | 440,308 |  | 439,755 |  | 460,464 |
Unearned ESOP shares | (20,430) |  | (20,916) |  | (21,402) |  | (21,889) |  | (22,375) |
Accumulated other comprehensive loss | (64,724) |  | (63,163) |  | (63,659) |  | (63,830) |  | (86,476) |
Total stockholders' equity | 751,537 |  | 753,571 |  | 849,078 |  | 847,978 |  | 849,534 |
Total liabilities and stockholders' equity | $ | 7,772,379 |  | $ | 7,683,461 |  | $ | 7,841,972 |  | $ | 7,897,832 |  | $ | 7,974,866 |
Consolidated capital ratios |  |  |  |  |
Equity to assets | 9.67 | % | 9.81 | % | 10.83 | % | 10.74 | % | 10.65 | %
Tangible equity to tangible assets (1) | 8.31 | % | 8.43 | % | 8.34 | % | 8.26 | % | 8.20 | %
Share data |  |  |  |  |
Outstanding shares | 64,580 | 64,434 | 64,437 | 64,445 | 65,132
Book value per share | $ | 11.64 |  | $ | 11.70 |  | $ | 13.18 |  | $ | 13.16 |  | $ | 13.04 |
Tangible book value per share (2) | $ | 9.85 |  | $ | 9.90 |  | $ | 9.87 |  | $ | 9.85 |  | $ | 9.77 |

_________________________
(1)Tangible equity equals total stockholders' equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.
(2)Tangible book value equals total stockholders' equity reduced by goodwill and core deposit intangible assets.
8

Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)

(Dollars in Thousands) | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023
Loan portfolio composition: |  |  |  |  |
Commercial loans: |  |  |  |  |
Multi-family mortgage | $ | 2,646,187 |  | $ | 2,645,851 |  | $ | 2,645,195 |  | $ | 2,651,274 |  | $ | 2,699,151 |
Nonresidential mortgage | 950,771 |  | 948,075 |  | 965,539 |  | 947,287 |  | 946,801 |
Commercial business | 145,984 |  | 142,747 |  | 147,326 |  | 144,134 |  | 149,229 |
Construction | 227,327 |  | 209,237 |  | 229,457 |  | 221,933 |  | 230,703 |
Total commercial loans | 3,970,269 |  | 3,945,910 |  | 3,987,517 |  | 3,964,628 |  | 4,025,884 |
One- to four-family residential mortgage | 1,768,230 |  | 1,756,051 |  | 1,741,644 |  | 1,746,065 |  | 1,689,051 |
Consumer loans: |  |  |  |  |
Home equity loans | 44,741 |  | 44,104 |  | 42,731 |  | 43,517 |  | 42,896 |
Other consumer | 2,965 |  | 2,685 |  | 3,198 |  | 2,728 |  | 2,644 |
Total consumer loans | 47,706 |  | 46,789 |  | 45,929 |  | 46,245 |  | 45,540 |
Total loans, excluding yield adjustments | 5,786,205 |  | 5,748,750 |  | 5,775,090 |  | 5,756,938 |  | 5,760,475 |
Unaccreted yield adjustments | (1,959) |  | (15,963) |  | (16,754) |  | (11,309) |  | (24,426) |
Loans receivable, net of yield adjustments | 5,784,246 |  | 5,732,787 |  | 5,758,336 |  | 5,745,629 |  | 5,736,049 |
Less: allowance for credit losses on loans | (44,923) |  | (44,939) |  | (44,930) |  | (44,867) |  | (46,872) |
Net loans receivable | $ | 5,739,323 |  | $ | 5,687,848 |  | $ | 5,713,406 |  | $ | 5,700,762 |  | $ | 5,689,177 |
Asset quality: |  |  |  |  |
Nonperforming assets: |  |  |  |  |
Accruing loans - 90 days and over past due | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
Nonaccrual loans | 39,854 |  | 39,882 |  | 39,546 |  | 28,089 |  | 37,912 |
Total nonperforming loans | 39,854 |  | 39,882 |  | 39,546 |  | 28,089 |  | 37,912 |
Nonaccrual loans held-for-sale | — |  | — |  | — |  | 9,700 |  | — |
Other real estate owned | — |  | — |  | — |  | 11,982 |  | 12,956 |
Total nonperforming assets | $ | 39,854 |  | $ | 39,882 |  | $ | 39,546 |  | $ | 49,771 |  | $ | 50,868 |
Nonperforming loans (% total loans) | 0.69 | % | 0.70 | % | 0.69 | % | 0.49 | % | 0.66 | %
Nonperforming assets (% total assets) | 0.51 | % | 0.52 | % | 0.50 | % | 0.63 | % | 0.64 | %
Classified loans | $ | 119,534 |  | $ | 118,700 |  | $ | 115,772 |  | $ | 94,676 |  | $ | 98,616 |
Allowance for credit losses on loans (ACL): |  |  |  |  |
ACL to total loans | 0.78 | % | 0.78 | % | 0.78 | % | 0.78 | % | 0.81 | %
ACL to nonperforming loans | 112.72 | % | 112.68 | % | 113.61 | % | 159.73 | % | 123.63 | %
Net charge-offs | $ | 124 |  | $ | 3,518 |  | $ | 286 |  | $ | 4,110 |  | $ | 2,107 |
Average net charge-off rate (annualized) | 0.01 | % | 0.25 | % | 0.02 | % | 0.29 | % | 0.15 | %

9

Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)

(Dollars in Thousands) | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023
Funding composition: |  |  |  |  |
Deposits: |  |  |  |  |
Non-interest-bearing deposits | $ | 592,099 |  | $ | 598,367 |  | $ | 586,089 |  | $ | 584,130 |  | $ | 595,141 |
Interest-bearing demand | 2,247,685 |  | 2,308,915 |  | 2,349,032 |  | 2,347,262 |  | 2,236,573 |
Savings | 681,709 |  | 643,481 |  | 630,456 |  | 646,182 |  | 689,163 |
Certificates of deposit (retail) | 1,215,746 |  | 1,199,127 |  | 1,235,261 |  | 1,283,676 |  | 1,300,382 |
Certificates of deposit (brokered and listing service) | 733,273 |  | 408,234 |  | 408,212 |  | 458,380 |  | 612,909 |
Interest-bearing deposits | 4,878,413 |  | 4,559,757 |  | 4,622,961 |  | 4,735,500 |  | 4,839,027 |
Total deposits | 5,470,512 |  | 5,158,124 |  | 5,209,050 |  | 5,319,630 |  | 5,434,168 |
Borrowings: |  |  |  |  |
Federal Home Loan Bank advances | 1,209,888 |  | 1,534,789 |  | 1,457,178 |  | 1,432,055 |  | 1,456,933 |
Overnight borrowings | 270,000 |  | 175,000 |  | 265,000 |  | 235,000 |  | 170,000 |
Total borrowings | 1,479,888 |  | 1,709,789 |  | 1,722,178 |  | 1,667,055 |  | 1,626,933 |
Total funding | $ | 6,950,400 |  | $ | 6,867,913 |  | $ | 6,931,228 |  | $ | 6,986,685 |  | $ | 7,061,101 |
Loans as a % of deposits | 105.1 | % | 110.4 | % | 109.8 | % | 107.4 | % | 104.8 | %
Deposits as a % of total funding | 78.7 | % | 75.1 | % | 75.2 | % | 76.1 | % | 77.0 | %
Borrowings as a % of total funding | 21.3 | % | 24.9 | % | 24.8 | % | 23.9 | % | 23.0 | %
Uninsured deposits: |  |  |  |  |
Uninsured deposits (reported) (1) | $ | 1,799,726 |  | $ | 1,772,623 |  | $ | 1,760,740 |  | $ | 1,813,122 |  | $ | 1,734,288 |
Uninsured deposits (adjusted) (2) | $ | 773,375 |  | $ | 764,447 |  | $ | 718,026 |  | $ | 694,510 |  | $ | 683,265 |

_________________________
(1)Uninsured deposits of Kearny Bank.
(2)Uninsured deposits of Kearny Bank adjusted to exclude deposits of its wholly-owned subsidiary and holding company and collateralized deposits of state and local governments.
10

Kearny Financial Corp.
Consolidated Statements of Income (Loss)
(Unaudited)

| Three Months Ended
(Dollars and Shares in Thousands, Except Per Share Data) | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023
Interest income |  |  |  |  |
Loans | $ | 66,331 |  | $ | 65,819 |  | $ | 64,035 |  | $ | 63,384 |  | $ | 62,769 |
Taxable investment securities | 14,384 |  | 14,802 |  | 15,490 |  | 16,756 |  | 16,265 |
Tax-exempt investment securities | 71 |  | 80 |  | 85 |  | 84 |  | 87 |
Other interest-earning assets | 2,466 |  | 2,289 |  | 2,475 |  | 2,401 |  | 2,047 |
Total interest income | 83,252 |  | 82,990 |  | 82,085 |  | 82,625 |  | 81,168 |
Interest expense |  |  |  |  |
Deposits | 35,018 |  | 32,187 |  | 32,320 |  | 30,340 |  | 27,567 |
Borrowings | 15,788 |  | 17,527 |  | 15,446 |  | 16,446 |  | 14,441 |
Total interest expense | 50,806 |  | 49,714 |  | 47,766 |  | 46,786 |  | 42,008 |
Net interest income | 32,446 |  | 33,276 |  | 34,319 |  | 35,839 |  | 39,160 |
Provision for credit losses | 108 |  | 3,527 |  | 349 |  | 2,105 |  | 245 |
Net interest income after provision for credit losses | 32,338 |  | 29,749 |  | 33,970 |  | 33,734 |  | 38,915 |
Non-interest income |  |  |  |  |
Fees and service charges | 635 |  | 580 |  | 657 |  | 624 |  | 748 |
Loss on sale and call of securities | — |  | — |  | — |  | (18,135) |  | — |
Gain (loss) on sale of loans | 200 |  | 111 |  | (712) |  | 104 |  | 215 |
Loss on sale of other real estate owned | — |  | — |  | — |  | (974) |  | — |
Income from bank owned life insurance | 2,567 |  | 3,209 |  | 3,039 |  | 1,162 |  | 1,666 |
Electronic banking fees and charges | 391 |  | 1,130 |  | 464 |  | 396 |  | 367 |
Other income | 833 |  | 776 |  | 755 |  | 811 |  | 1,014 |
Total non-interest income | 4,626 |  | 5,806 |  | 4,203 |  | (16,012) |  | 4,010 |
Non-interest expense |  |  |  |  |
Salaries and employee benefits | 17,498 |  | 17,266 |  | 16,911 |  | 17,282 |  | 17,761 |
Net occupancy expense of premises | 2,798 |  | 2,738 |  | 2,863 |  | 2,674 |  | 2,758 |
Equipment and systems | 3,860 |  | 3,785 |  | 3,823 |  | 3,814 |  | 3,801 |
Advertising and marketing | 342 |  | 480 |  | 387 |  | 301 |  | 228 |
Federal deposit insurance premium | 1,563 |  | 1,532 |  | 1,429 |  | 1,495 |  | 1,524 |
Directors' compensation | 361 |  | 360 |  | 360 |  | 393 |  | 393 |
Goodwill impairment | — |  | 97,370 |  | — |  | — |  | — |
Other expense | 3,364 |  | 3,020 |  | 3,286 |  | 3,808 |  | 3,309 |
Total non-interest expense | 29,786 |  | 126,551 |  | 29,059 |  | 29,767 |  | 29,774 |
Income (loss) before income taxes | 7,178 |  | (90,996) |  | 9,114 |  | (12,045) |  | 13,151 |
Income taxes | 1,086 |  | (917) |  | 1,717 |  | 1,782 |  | 3,309 |
Net income (loss) | $ | 6,092 |  | $ | (90,079) |  | $ | 7,397 |  | $ | (13,827) |  | $ | 9,842 |
Net income (loss) per common share (EPS) |  |  |  |  |
Basic | $ | 0.10 |  | $ | (1.45) |  | $ | 0.12 |  | $ | (0.22) |  | $ | 0.16 |
Diluted | $ | 0.10 |  | $ | (1.45) |  | $ | 0.12 |  | $ | (0.22) |  | $ | 0.16 |
Dividends declared |  |  |  |  |
Cash dividends declared per common share | $ | 0.11 |  | $ | 0.11 |  | $ | 0.11 |  | $ | 0.11 |  | $ | 0.11 |
Cash dividends declared | $ | 6,896 |  | $ | 6,903 |  | $ | 6,844 |  | $ | 6,882 |  | $ | 6,989 |
Dividend payout ratio | 113.2 | % | -7.7 | % | 92.5 | % | -49.8 | % | 71.0 | %
Weighted average number of common shares outstanding |  |  |  |  |
Basic | 62,389 | 62,254 | 62,205 | 62,299 | 63,014
Diluted | 62,420 | 62,254 | 62,211 | 62,299 | 63,061

11

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)

| Three Months Ended
(Dollars in Thousands) | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023
Assets |  |  |  |  |
Interest-earning assets: |  |  |  |  |
Loans receivable, including loans held-for-sale | $ | 5,761,593 |  | $ | 5,743,008 |  | $ | 5,752,477 |  | $ | 5,726,321 |  | $ | 5,788,074 |
Taxable investment securities | 1,314,945 |  | 1,343,541 |  | 1,382,064 |  | 1,509,165 |  | 1,516,393 |
Tax-exempt investment securities | 12,244 |  | 13,737 |  | 14,614 |  | 15,025 |  | 15,483 |
Other interest-earning assets | 131,981 |  | 128,257 |  | 125,155 |  | 139,740 |  | 130,829 |
Total interest-earning assets | 7,220,763 |  | 7,228,543 |  | 7,274,310 |  | 7,390,251 |  | 7,450,779 |
Non-interest-earning assets | 467,670 |  | 466,537 |  | 577,411 |  | 554,335 |  | 568,723 |
Total assets | $ | 7,688,433 |  | $ | 7,695,080 |  | $ | 7,851,721 |  | $ | 7,944,586 |  | $ | 8,019,502 |
Liabilities and Stockholders' Equity |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |
Deposits: |  |  |  |  |
Interest-bearing demand | $ | 2,282,608 |  | $ | 2,310,521 |  | $ | 2,378,831 |  | $ | 2,301,169 |  | $ | 2,245,831 |
Savings | 668,240 |  | 631,622 |  | 635,226 |  | 664,926 |  | 719,508 |
Certificates of deposit | 1,755,589 |  | 1,613,798 |  | 1,705,513 |  | 1,824,316 |  | 1,968,512 |
Total interest-bearing deposits | 4,706,437 |  | 4,555,941 |  | 4,719,570 |  | 4,790,411 |  | 4,933,851 |
Borrowings: |  |  |  |  |
Federal Home Loan Bank advances | 1,325,583 |  | 1,507,192 |  | 1,428,801 |  | 1,513,497 |  | 1,386,473 |
Other borrowings | 237,011 |  | 228,461 |  | 210,989 |  | 142,283 |  | 158,098 |
Total borrowings | 1,562,594 |  | 1,735,653 |  | 1,639,790 |  | 1,655,780 |  | 1,544,571 |
Total interest-bearing liabilities | 6,269,031 |  | 6,291,594 |  | 6,359,360 |  | 6,446,191 |  | 6,478,422 |
Non-interest-bearing liabilities: |  |  |  |  |
Non-interest-bearing deposits | 599,095 |  | 589,438 |  | 581,870 |  | 597,294 |  | 612,251 |
Other non-interest-bearing liabilities | 69,629 |  | 62,978 |  | 65,709 |  | 62,387 |  | 66,701 |
Total non-interest-bearing liabilities | 668,724 |  | 652,416 |  | 647,579 |  | 659,681 |  | 678,952 |
Total liabilities | 6,937,755 |  | 6,944,010 |  | 7,006,939 |  | 7,105,872 |  | 7,157,374 |
Stockholders' equity | 750,678 |  | 751,070 |  | 844,782 |  | 838,714 |  | 862,128 |
Total liabilities and stockholders' equity | $ | 7,688,433 |  | $ | 7,695,080 |  | $ | 7,851,721 |  | $ | 7,944,586 |  | $ | 8,019,502 |
Average interest-earning assets to average interest-bearing liabilities | 115.18 | % | 114.89 | % | 114.39 | % | 114.65 | % | 115.01 | %

12

Kearny Financial Corp.
Performance Ratio Highlights

| Three Months Ended
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023
Average yield on interest-earning assets: |  |  |  |  |
Loans receivable, including loans held-for-sale | 4.61 | % | 4.58 | % | 4.45 | % | 4.43 | % | 4.34 | %
Taxable investment securities | 4.38 | % | 4.41 | % | 4.48 | % | 4.44 | % | 4.29 | %
Tax-exempt investment securities (1) | 2.32 | % | 2.32 | % | 2.32 | % | 2.25 | % | 2.25 | %
Other interest-earning assets | 7.47 | % | 7.14 | % | 7.91 | % | 6.87 | % | 6.26 | %
Total interest-earning assets | 4.61 | % | 4.59 | % | 4.51 | % | 4.47 | % | 4.36 | %
Average cost of interest-bearing liabilities: |  |  |  |  |
Deposits: |  |  |  |  |
Interest-bearing demand | 3.13 | % | 3.06 | % | 3.08 | % | 2.91 | % | 2.58 | %
Savings | 1.05 | % | 0.63 | % | 0.46 | % | 0.44 | % | 0.47 | %
Certificates of deposit | 3.51 | % | 3.35 | % | 3.11 | % | 2.82 | % | 2.49 | %
Total interest-bearing deposits | 2.98 | % | 2.83 | % | 2.74 | % | 2.53 | % | 2.23 | %
Borrowings: |  |  |  |  |
Federal Home Loan Bank advances | 3.82 | % | 3.86 | % | 3.55 | % | 3.82 | % | 3.54 | %
Other borrowings | 5.28 | % | 5.24 | % | 5.22 | % | 5.65 | % | 5.46 | %
Total borrowings | 4.04 | % | 4.04 | % | 3.77 | % | 3.97 | % | 3.74 | %
Total interest-bearing liabilities | 3.24 | % | 3.16 | % | 3.00 | % | 2.90 | % | 2.59 | %
Interest rate spread (2) | 1.37 | % | 1.43 | % | 1.51 | % | 1.57 | % | 1.77 | %
Net interest margin (3) | 1.80 | % | 1.84 | % | 1.89 | % | 1.94 | % | 2.10 | %
Non-interest income to average assets (annualized) | 0.24 | % | 0.30 | % | 0.21 | % | -0.81 | % | 0.20 | %
Non-interest expense to average assets (annualized) | 1.55 | % | 6.58 | % | 1.48 | % | 1.50 | % | 1.49 | %
Efficiency ratio (4) | 80.35 | % | 323.81 | % | 75.43 | % | 150.13 | % | 68.97 | %
Return on average assets (annualized) | 0.32 | % | -4.68 | % | 0.38 | % | -0.70 | % | 0.49 | %
Return on average equity (annualized) | 3.25 | % | -47.97 | % | 3.50 | % | -6.59 | % | 4.57 | %
Return on average tangible equity (annualized) (5) | 3.89 | % | 3.33 | % | 4.68 | % | -8.84 | % | 6.07 | %

_________________________
(1)The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.
(2)Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.
(3)Net interest income divided by average interest-earning assets.
(4)Non-interest expense divided by the sum of net interest income and non-interest income.
(5)Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets.
13

The following tables provide a reconciliation of certain financial measures calculated in accordance with Generally Accepted Accounting Principles (“GAAP”) (as reported) and non-GAAP measures. These non-GAAP measures provide additional information which allow readers to evaluate the ongoing performance of the Company. They are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. In all cases, it should be understood that non-GAAP per share measures do not depict amounts that accrue directly to the benefit of shareholders.
Kearny Financial Corp.
Reconciliation of GAAP to Non-GAAP
(Unaudited)

| Three Months Ended
(Dollars and Shares in Thousands, Except Per Share Data) | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023
Adjusted net income: |  |  |  |  |
Net income (loss) (GAAP) | $ | 6,092 |  | $ | (90,079) |  | $ | 7,397 |  | $ | (13,827) |  | $ | 9,842 |
Non-recurring transactions - net of tax: |  |  |  |  |
Net effect of sale and call of securities | — |  | — |  | — |  | 12,876 |  | — |
Net effect of bank-owned life insurance restructure | — |  | 392 |  | — |  | 6,286 |  | — |
Goodwill impairment | — |  | 95,283 |  | — |  | — |  | — |
Adjusted net income | $ | 6,092 |  | $ | 5,596 |  | $ | 7,397 |  | $ | 5,335 |  | $ | 9,842 |
Calculation of pre-tax, pre-provision net revenue: |  |  |  |  |
Net income (loss) (GAAP) | $ | 6,092 |  | $ | (90,079) |  | $ | 7,397 |  | $ | (13,827) |  | $ | 9,842 |
Adjustments to net income (GAAP): |  |  |  |  |
Provision for income taxes | 1,086 |  | (917) |  | 1,717 |  | 1,782 |  | 3,309 |
Provision for credit losses | 108 |  | 3,527 |  | 349 |  | 2,105 |  | 245 |
Pre-tax, pre-provision net revenue (non-GAAP) | $ | 7,286 |  | $ | (87,469) |  | $ | 9,463 |  | $ | (9,940) |  | $ | 13,396 |
Adjusted earnings per share: |  |  |  |  |
Weighted average common shares - basic | 62,389 | 62,254 | 62,205 | 62,299 | 63,014
Weighted average common shares - diluted | 62,420 | 62,330 | 62,211 | 62,367 | 63,061
Earnings per share - basic (GAAP) | $ | 0.10 |  | $ | (1.45) |  | $ | 0.12 |  | $ | (0.22) |  | $ | 0.16 |
Earnings per share - diluted (GAAP) | $ | 0.10 |  | $ | (1.45) |  | $ | 0.12 |  | $ | (0.22) |  | $ | 0.16 |
Adjusted earnings per share - basic (non-GAAP) | $ | 0.10 |  | $ | 0.09 |  | $ | 0.12 |  | $ | 0.09 |  | $ | 0.16 |
Adjusted earnings per share - diluted (non-GAAP) | $ | 0.10 |  | $ | 0.09 |  | $ | 0.12 |  | $ | 0.09 |  | $ | 0.16 |
Pre-tax, pre-provision net revenue per share: |  |  |  |  |
Pre-tax, pre-provision net revenue per share - basic (non-GAAP) | $ | 0.12 |  | $ | (1.41) |  | $ | 0.15 |  | $ | (0.16) |  | $ | 0.21 |
Pre-tax, pre-provision net revenue per share - diluted (non-GAAP) | $ | 0.12 |  | $ | (1.40) |  | $ | 0.15 |  | $ | (0.16) |  | $ | 0.21 |
Adjusted return on average assets: |  |  |  |  |
Total average assets | $ | 7,688,433 |  | $ | 7,695,080 |  | $ | 7,851,721 |  | $ | 7,944,586 |  | $ | 8,019,502 |
Return on average assets (GAAP) | 0.32 | % | -4.68 | % | 0.38 | % | -0.70 | % | 0.49 | %
Adjusted return on average assets (non-GAAP) | 0.32 | % | 0.29 | % | 0.38 | % | 0.27 | % | 0.49 | %
Adjusted return on average equity: |  |  |  |  |
Total average equity | $ | 750,678 |  | $ | 751,070 |  | $ | 844,782 |  | $ | 838,714 |  | $ | 862,128 |
Return on average equity (GAAP) | 3.25 | % | -47.97 | % | 3.50 | % | -6.59 | % | 4.57 | %
Adjusted return on average equity (non-GAAP) | 3.25 | % | 2.98 | % | 3.50 | % | 2.54 | % | 4.57 | %

14

Kearny Financial Corp.
Reconciliation of GAAP to Non-GAAP
(Unaudited)

| Three Months Ended
(Dollars and Shares in Thousands, Except Per Share Data) | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023
Adjusted return on average tangible equity: |  |  |  |  |
Total average equity | $ | 750,678 |  | $ | 751,070 |  | $ | 844,782 |  | $ | 838,714 |  | $ | 862,128 |
Less: average goodwill | (113,525) |  | (113,525) |  | (210,895) |  | (210,895) |  | (210,895) |
Less: average other intangible assets | (1,886) |  | (2,006) |  | (2,138) |  | (2,277) |  | (2,411) |
Total average tangible equity | $ | 635,267 |  | $ | 635,539 |  | $ | 631,749 |  | $ | 625,542 |  | $ | 648,822 |
Return on average tangible equity (non-GAAP) | 3.89 | % | 3.33 | % | 4.68 | % | -8.84 | % | 6.07 | %
Adjusted return on average tangible equity (non-GAAP) | 3.89 | % | 3.58 | % | 4.68 | % | 3.41 | % | 6.07 | %
Adjusted non-interest expense ratio: |  |  |  |  |
Non-interest expense (GAAP) | $ | 29,786 |  | $ | 126,551 |  | $ | 29,059 |  | $ | 29,767 |  | $ | 29,774 |
Non-recurring transactions: |  |  |  |  |
Goodwill impairment | — |  | (97,370) |  | — |  | — |  | — |
Non-interest expense (non-GAAP) | $ | 29,786 |  | $ | 29,181 |  | $ | 29,059 |  | $ | 29,767 |  | $ | 29,774 |
Non-interest expense ratio (GAAP) | 1.55 | % | 6.58 | % | 1.48 | % | 1.50 | % | 1.49 | %
Adjusted non-interest expense ratio (non-GAAP) | 1.55 | % | 1.52 | % | 1.48 | % | 1.50 | % | 1.49 | %
Adjusted efficiency ratio: |  |  |  |  |
Non-interest expense (non-GAAP) | $ | 29,786 |  | $ | 29,181 |  | $ | 29,059 |  | $ | 29,767 |  | $ | 29,774 |
Net interest income (GAAP) | $ | 32,446 |  | $ | 33,276 |  | $ | 34,319 |  | $ | 35,839 |  | $ | 39,160 |
Total non-interest income (GAAP) | 4,626 |  | 5,806 |  | 4,203 |  | (16,012) |  | 4,010 |
Non-recurring transactions: |  |  |  |  |
Net effect of sale and call of securities | — |  | — |  | — |  | 18,135 |  | — |
Net effect of bank-owned life insurance restructure | — |  | 392 |  | — |  | 573 |  | — |
Total revenue (non-GAAP) | $ | 37,072 |  | $ | 39,474 |  | $ | 38,522 |  | $ | 38,535 |  | $ | 43,170 |
Efficiency ratio (GAAP) | 80.35 | % | 323.81 | % | 75.43 | % | 150.13 | % | 68.97 | %
Adjusted efficiency ratio (non-GAAP) | 80.35 | % | 73.92 | % | 75.43 | % | 77.25 | % | 68.97 | %

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