Kearny Financial (KRNY) investor relations material

Executive summary

• Net income rose 40.0% QoQ to $10.0M, or $0.16 per diluted share; adjusted pre-tax, pre-provision net revenue was $13.496M, up 14% YoY.

• Loan and deposit growth, lower expenses and balance-sheet remixing toward commercial and construction lending supported stronger core earnings; multifamily exposure continued to decline.

Financial highlights

• Net interest income was $40.1M, down $294,000 QoQ; excluding prepayment penalty income and purchase accounting accretion, it increased $132,000.

• Total interest income rose 2.7% QoQ to $84.2M, while interest expense increased 6.1% to $44.2M.

• Non-interest expense fell 6.1% QoQ to $31.8M; income before taxes rose 15.0% to $12.7M.

• Non-interest income decreased 2.1% QoQ to $5.2M, including a non-recurring $122,000 OREO property write-down.

Outlook and guidance

• $722M of multifamily and CRE loans are scheduled to mature or reprice in 2027, offering potential yield improvement subject to rates, borrower behavior, credit discipline and replacement opportunities.

• Loan repricing and balance-sheet remixing are expected to support NIM expansion; strategy targets commercial relationships, relationship-based deposits, lower retail delivery costs and improved efficiency.