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FALSE000161724200016172422024-04-252024-04-25

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________________________
FORM 8-K
_____________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 25, 2024
_____________________________
KEARNY FINANCIAL CORP.
(Exact name of Registrant as Specified in Its Charter)
_____________________________
Maryland 001-37399 30-0870244
(State or Other Jurisdiction
of Incorporation)
 (Commission File Number)
(IRS Employer
Identification No.)
120 Passaic Avenue Fairfield, New Jersey
07004
(Address of Principal Executive Offices)
 (Zip Code)
Registrant’s Telephone Number, Including Area Code: (973) 244-4500
(Former Name or Former Address, if Changed Since Last Report)
_____________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $0.01 par value KRNY The NASDAQ Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02    Results of Operation and Financial Condition
On April 25, 2024, Kearny Financial Corp. (the “Company”), the holding company for Kearny Bank, issued a press release reporting its financial results for the period ended March 31, 2024.
A copy of the press release announcing the results is included as Exhibit 99.1 to this Current Report on Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
Item 7.01    Regulation FD Disclosure
On April 25, 2024, the Company released a slide presentation that will be used in upcoming meetings with potential investors and current shareholders of the Company.
A copy of the slide presentation that will be used in the Company’s presentation is filed as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference. The information included in this Current Report pursuant to this Item 7.01 is being furnished to, and not filed with, the Securities and Exchange Commission.
Item 8.01    Other Events
On April 25, 2024, the Company’s Board of Directors announced a quarterly cash dividend of $0.11 per share, payable on May 22, 2024 to stockholders of record as of May 8, 2024.
Item 9.01    Financial Statements and Exhibits
(a)Financial Statements of Business Acquired. Not applicable.
(b)Pro Forma Financial Information. Not applicable.
(c)Shell Company Transaction. Not applicable.
(d)Exhibits.
Exhibit Number Description
99.1
99.2
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
KEARNY FINANCIAL CORP.
Date: April 25, 2024
 By: /s/ Keith Suchodolski
Keith Suchodolski
Senior Executive Vice President and Chief Financial Officer

EX-99.1 2 krny-20240425xexx991.htm EX-99.1 Document

Exhibit 99.1
FOR IMMEDIATE RELEASE
April 25, 2024
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

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 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 announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on May 22, 2024, to stockholders of record as of May 8, 2024.

Craig L. Montanaro, President and Chief Executive Officer, commented, “Once again uncertainty remains on the forefront of conversations taking place on Main Street and on Wall Street. As a company we manage through such challenging periods by staying true to our guiding principles, which have endured since our founding 140 years ago this month: prudent risk management, conservative posturing and an unwavering commitment to our depositors, borrowers, employees and communities.”

Mr. Montanaro continued, “Despite the media speculation surrounding commercial real estate lending in general, and multifamily lending specifically, we maintain a low loan-to-value, low-vacancy, well-diversified commercial loan portfolio with a long history of outstanding credit performance. We subject each loan to intense scrutiny at underwriting, and on an ongoing basis, and maintain peer-leading levels of commercial loan allowance coverage and regulatory capital, as represented by our 14.7% Common Equity Tier 1 capital ratio.”

Balance Sheet
•Total assets were $7.84 billion at March 31, 2024, a decrease of $55.9 million, or 0.7%, from December 31, 2023.
•Investment securities totaled $1.24 billion at March 31, 2024, a decrease of $47.8 million, or 3.7%, from December 31, 2023.
•Loans receivable totaled $5.76 billion at March 31, 2024, an increase of $12.7 million, or 0.2%, from December 31, 2023.
•Bank-owned life insurance (“BOLI”) totaled $296.5 million at March 31, 2024, an increase of $40.4 million, or 15.8%, from December 31, 2023. The increase for the quarter was largely attributable to the completion of the BOLI restructure initiated in the prior comparative period.
•Deposits were $5.21 billion at March 31, 2024, a decrease of $110.6 million, or 2.1%, from December 31, 2023. Excluding a decrease of $50.2 million in brokered certificates of deposits, deposits decreased $60.4 million, or 1.2%, from December 31, 2023. This decrease in non-brokered deposits was driven by a $48.4 million decline in retail certificates of deposits and a $15.7 million decline in consumer savings deposits, partially offset by growth in other deposit categories.
•Borrowings were $1.72 billion at March 31, 2024, an increase of $55.1 million, or 3.3%, from December 31, 2023.
•At March 31, 2024, the Company maintained available secured borrowing capacity of $1.81 billion, of which $1.47 billion was immediately accessible via in-place collateral and $336.7 million represented the market value of unpledged securities.
1

Earnings
Net Interest Income and Net Interest Margin
•Net interest margin contracted 5 basis point to 1.89% for the quarter ended March 31, 2024. The decrease for the quarter was driven by an increase in the cost of interest-bearing deposits and a decrease in the average balance of interest-earning assets, partially offset by a higher yield on interest-earning assets and a decrease in the cost of interest-bearing borrowings.
•For the quarter ended March 31, 2024, net interest income decreased $1.5 million to $34.3 million from $35.8 million for the quarter ended December 31, 2023. Included in net interest income for the quarters ended March 31, 2024 and December 31, 2023, respectively, was purchase accounting accretion of $734,000 and $640,000, and loan prepayment penalty income of $61,000 and $185,000.
Non-Interest Income
•Non-interest income increased $20.2 million to income of $4.2 million for the quarter ended March 31, 2024, from a loss of $16.0 million for the quarter ended December 31, 2023. The increase was primarily attributable to a pre-tax loss of $18.1 million related to the investment securities portfolio repositioning executed during the prior comparative period.
•Income from BOLI increased $1.8 million to $3.0 million for the quarter ended March 31, 2024 from $1.2 million for the quarter ended December 31, 2023. BOLI income included a $631,000 non-recurring payment on one life insurance policy in the current period, while BOLI income was reduced by non-recurring exchange charges of $573,000 in the prior comparative period. Excluding these non-recurring items, BOLI income improved by $673,000 resulting from the previously mentioned BOLI restructure.
•Loss on sale of loans was $712,000 for the quarter ended March 31, 2024 compared to a gain on sale of loans of $104,000 for the quarter ended December 31, 2023. The loss in the current period was the result of the sale of three related nonperforming commercial real estate loans held-for-sale.
Non-Interest Expense
•For the quarter ended March 31, 2024, non-interest expense decreased $708,000, or 2.4%, to $29.1 million from $29.8 million for the quarter ended December 31, 2023, primarily driven by a decrease in salary and benefits expense and other expense.
•Salary and benefits expense decreased $371,000 primarily attributable to a non-recurring decrease of $679,000 in stock-based compensation, partially offset by an increase of $374,000 in payroll taxes associated with the start of the new calendar year.
•Other expense decreased $522,000 primarily driven by a $637,000 decrease in OREO expense following the sale of the Company’s sole OREO asset, partially offset by an increase of $288,000 in the provision for credit losses on off balance sheet commitments.
Income Taxes
•Income tax expense totaled $1.7 million for the quarter ended March 31, 2024 compared to $1.8 million for the quarter ended December 31, 2023. The decrease in income tax expense was largely due to the discrete tax expense associated with the BOLI restructure recognized in the prior comparative period, partially offset by higher pre-tax income, due primarily to realized losses on the sale of securities in the prior comparative period.
2

Asset Quality
•The balance of non-performing assets decreased $10.2 million to $39.5 million, or 0.50% of total assets, at March 31, 2024, from $49.8 million, or 0.63% of total assets, at December 31, 2023. This decrease was driven by the January 2024 sale of three related non-performing commercial real estate loans held-for-sale and the Company’s sole OREO asset.
•Net charge-offs totaled $286,000, or 0.02% of average loans, on an annualized basis, for the quarter ended March 31, 2024, compared to $4.1 million, or 0.29% of average loans, on an annualized basis, for the quarter ended December 31, 2023.
•For the quarter ended March 31, 2024, the Company recorded a provision for credit losses of $349,000, compared to $2.1 million for the quarter ended December 31, 2023. The provision for credit loss expense for the quarter ended March 31, 2024 was primarily driven by loan growth.
•The allowance for credit losses (“ACL”) was $44.9 million, or 0.78% of total loans, at March 31, 2024 and unchanged from December 31, 2023.
Capital
•For the quarter ended March 31, 2024, book value per share increased $0.02, or 0.2%, to $13.18 while tangible book value per share increased $0.02, or 0.2%, to $9.87.
•At March 31, 2024, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $95.0 million, partially offset by after-tax unrealized gains on derivatives of $31.3 million. After-tax net unrecognized losses on securities held to maturity of $11.4 million were not reflected in total stockholders’ equity.
•At March 31, 2024, the Company’s tangible equity to tangible assets ratio equaled 8.34% 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 Q3 2024 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)		 March 31,
2024		 December 31,
2023		 Variance
or Change		 Variance
or Change Pct.
Assets
Cash and cash equivalents $ 71,027  $ 73,860  $ (2,833) -3.8  %
Securities available for sale 1,098,655  1,144,175  (45,520) -4.0  %
Securities held to maturity 139,643  141,959  (2,316) -1.6  %
Loans held-for-sale 4,117  14,030  (9,913) -70.7  %
Loans receivable 5,758,336  5,745,629  12,707  0.2  %
Less: allowance for credit losses on loans (44,930) (44,867) 63  0.1  %
Net loans receivable 5,713,406  5,700,762  12,644  0.2  %
Premises and equipment 45,053  45,928  (875) -1.9  %
Federal Home Loan Bank stock 81,347  83,372  (2,025) -2.4  %
Accrued interest receivable 31,065  30,258  807  2.7  %
Goodwill 210,895  210,895  —  —  %
Core deposit intangible 2,057  2,189  (132) -6.0  %
Bank owned life insurance 296,493  256,064  40,429  15.8  %
Deferred income taxes, net 47,225  46,116  1,109  2.4  %
Other real estate owned —  11,982  (11,982) -100.0  %
Other assets 100,989  136,242  (35,253) -25.9  %
Total assets $ 7,841,972  $ 7,897,832  $ (55,860) -0.7  %
Liabilities
Deposits:
Non-interest-bearing $ 586,089  $ 584,130  $ 1,959  0.3  %
Interest-bearing 4,622,961  4,735,500  (112,539) -2.4  %
Total deposits 5,209,050  5,319,630  (110,580) -2.1  %
Borrowings 1,722,178  1,667,055  55,123  3.3  %
Advance payments by borrowers for taxes 17,387  16,742  645  3.9  %
Other liabilities 44,279  46,427  (2,148) -4.6  %
Total liabilities 6,992,894  7,049,854  (56,960) -0.8  %
Stockholders' Equity
Common stock 644  645  (1) -0.2  %
Paid-in capital 493,187  493,297  (110) —  %
Retained earnings 440,308  439,755  553  0.1  %
Unearned ESOP shares (21,402) (21,889) 487  2.2  %
Accumulated other comprehensive loss (63,659) (63,830) 171  0.3  %
Total stockholders' equity 849,078  847,978  1,100  0.1  %
Total liabilities and stockholders' equity $ 7,841,972  $ 7,897,832  $ (55,860) -0.7  %
Consolidated capital ratios
Equity to assets 10.83  % 10.74  % 0.09  %
Tangible equity to tangible assets (1)
 8.34  % 8.26  % 0.08  %
Share data
Outstanding shares 64,437 64,445 (8) —  %
Book value per share $ 13.18  $ 13.16  $ 0.02  0.2  %
Tangible book value per share (2)
 $ 9.87  $ 9.85  $ 0.02  0.2  %
_________________________
(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.
March 31,
2024		 December 31,
2023
Interest income
Loans $ 64,035  $ 63,384  $ 651  1.0  %
Taxable investment securities 15,490  16,756  (1,266) -7.6  %
Tax-exempt investment securities 85  84  1  1.2  %
Other interest-earning assets 2,475  2,401  74  3.1  %
Total interest income 82,085  82,625  (540) -0.7  %
Interest expense
Deposits 32,320  30,340  1,980  6.5  %
Borrowings 15,446  16,446  (1,000) -6.1  %
Total interest expense 47,766  46,786  980  2.1  %
Net interest income 34,319  35,839  (1,520) -4.2  %
Provision for credit losses 349  2,105  (1,756) -83.4  %
Net interest income after provision for credit losses 33,970  33,734  236  0.7  %
Non-interest income
Fees and service charges 657  624  33  5.3  %
Loss on sale and call of securities —  (18,135) 18,135  100.0  %
(Loss) gain on sale of loans (712) 104  (816) -784.6  %
Loss on other real estate owned —  (974) 974  100.0  %
Income from bank owned life insurance 3,039  1,162  1,877  161.5  %
Electronic banking fees and charges 464  396  68  17.2  %
Other income 755  811  (56) -6.9  %
Total non-interest income 4,203  (16,012) 20,215  126.2  %
Non-interest expense
Salaries and employee benefits 16,911  17,282  (371) -2.1  %
Net occupancy expense of premises 2,863  2,674  189  7.1  %
Equipment and systems 3,823  3,814  9  0.2  %
Advertising and marketing 387  301  86  28.6  %
Federal deposit insurance premium 1,429  1,495  (66) -4.4  %
Directors' compensation 360  393  (33) -8.4  %
Other expense 3,286  3,808  (522) -13.7  %
Total non-interest expense 29,059  29,767  (708) -2.4  %
Income (loss) before income taxes 9,114  (12,045) 21,159  175.7  %
Income taxes 1,717  1,782  (65) -3.6  %
Net income (loss) $ 7,397  $ (13,827) $ 21,224  153.5  %
Net income (loss) per common share (EPS)
Basic $ 0.12  $ (0.22) $ 0.34 
Diluted $ 0.12  $ (0.22) $ 0.34 
Dividends declared
Cash dividends declared per common share $ 0.11  $ 0.11  $ — 
Cash dividends declared $ 6,844  $ 6,882  $ (38)
Dividend payout ratio 92.5  % -49.8  % 142.3  %
Weighted average number of common shares outstanding
Basic 62,205 62,299 (94)
Diluted 62,211 62,367 (156)
5

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)
(Dollars in Thousands) Three Months Ended Variance
or Change		 Variance
or Change Pct.
March 31,
2024		 December 31,
2023
Assets
Interest-earning assets:
Loans receivable, including loans held for sale $ 5,752,477  $ 5,726,321  $ 26,156  0.5  %
Taxable investment securities 1,382,064  1,509,165  (127,101) -8.4  %
Tax-exempt investment securities 14,614  15,025  (411) -2.7  %
Other interest-earning assets 125,155  139,740  (14,585) -10.4  %
Total interest-earning assets 7,274,310  7,390,251  (115,941) -1.6  %
Non-interest-earning assets 577,411  554,335  23,076  4.2  %
Total assets $ 7,851,721  $ 7,944,586  $ (92,865) -1.2  %
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand $ 2,378,831  $ 2,301,169  $ 77,662  3.4  %
Savings 635,226  664,926  (29,700) -4.5  %
Certificates of deposit 1,705,513  1,824,316  (118,803) -6.5  %
Total interest-bearing deposits 4,719,570  4,790,411  (70,841) -1.5  %
Borrowings:
Federal Home Loan Bank advances 1,428,801  1,513,497  (84,696) -5.6  %
Other borrowings 210,989  142,283  68,706  48.3  %
Total borrowings 1,639,790  1,655,780  (15,990) -1.0  %
Total interest-bearing liabilities 6,359,360  6,446,191  (86,831) -1.3  %
Non-interest-bearing liabilities:
Non-interest-bearing deposits 581,870  597,294  (15,424) -2.6  %
Other non-interest-bearing liabilities 65,709  62,387  3,322  5.3  %
Total non-interest-bearing liabilities 647,579  659,681  (12,102) -1.8  %
Total liabilities 7,006,939  7,105,872  (98,933) -1.4  %
Stockholders' equity 844,782  838,714  6,068  0.7  %
Total liabilities and stockholders' equity $ 7,851,721  $ 7,944,586  $ (92,865) -1.2  %
Average interest-earning assets to average interest-bearing liabilities 114.39  % 114.65  % -0.26  % -0.2  %
6

Kearny Financial Corp.
Performance Ratio Highlights
(Unaudited)
Three Months Ended Variance
or Change
March 31,
2024		 December 31,
2023
Average yield on interest-earning assets:
Loans receivable, including loans held for sale 4.45  % 4.43  % 0.02  %
Taxable investment securities 4.48  % 4.44  % 0.04  %
Tax-exempt investment securities (1)
 2.32  % 2.25  % 0.07  %
Other interest-earning assets 7.91  % 6.87  % 1.04  %
Total interest-earning assets 4.51  % 4.47  % 0.04  %
Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand 3.08  % 2.91  % 0.17  %
Savings 0.46  % 0.44  % 0.02  %
Certificates of deposit 3.11  % 2.82  % 0.29  %
Total interest-bearing deposits 2.74  % 2.53  % 0.21  %
Borrowings:
Federal Home Loan Bank advances 3.55  % 3.82  % -0.27  %
Other borrowings 5.22  % 5.65  % -0.43  %
Total borrowings 3.77  % 3.97  % -0.20  %
Total interest-bearing liabilities 3.00  % 2.90  % 0.10  %
Interest rate spread (2)
 1.51  % 1.57  % -0.06  %
Net interest margin (3)
 1.89  % 1.94  % -0.05  %
Non-interest income to average assets (annualized) 0.21  % -0.81  % 1.02  %
Non-interest expense to average assets (annualized) 1.48  % 1.50  % -0.02  %
Efficiency ratio (4)
 75.43  % 150.13  % -74.70  %
Return on average assets (annualized) 0.38  % -0.70  % 1.08  %
Return on average equity (annualized) 3.50  % -6.59  % 10.09  %
Return on average tangible equity (annualized) (5)
 4.68  % -8.84  % 13.52  %
_________________________
(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)		 March 31,
2024		 December 31,
2023		 September 30,
2023		 June 30,
2023		 March 31,
2023
(Unaudited) (Unaudited) (Unaudited) (Audited) (Unaudited)
Assets
Cash and cash equivalents $ 71,027  $ 73,860  $ 57,219  $ 70,515  $ 194,568 
Securities available for sale 1,098,655  1,144,175  1,215,633  1,227,729  1,267,066 
Securities held to maturity 139,643  141,959  143,730  146,465  149,764 
Loans held-for-sale 4,117  14,030  3,934  9,591  5,401 
Loans receivable 5,758,336  5,745,629  5,736,049  5,829,421  5,966,325 
Less: allowance for credit losses on loans (44,930) (44,867) (46,872) (48,734) (49,122)
Net loans receivable 5,713,406  5,700,762  5,689,177  5,780,687  5,917,203 
Premises and equipment 45,053  45,928  46,868  48,309  49,589 
Federal Home Loan Bank stock 81,347  83,372  81,509  71,734  76,319 
Accrued interest receivable 31,065  30,258  29,766  28,133  28,794 
Goodwill 210,895  210,895  210,895  210,895  210,895 
Core deposit intangible 2,057  2,189  2,323  2,457  2,590 
Bank owned life insurance 296,493  256,064  294,491  292,825  291,220 
Deferred income taxes, net 47,225  46,116  56,500  51,973  53,151 
Other real estate owned —  11,982  12,956  12,956  13,410 
Other assets 100,989  136,242  129,865  110,546  89,366 
Total assets $ 7,841,972  $ 7,897,832  $ 7,974,866  $ 8,064,815  $ 8,349,336 
Liabilities
Deposits:
Non-interest-bearing $ 586,089  $ 584,130  $ 595,141  $ 609,999  $ 617,778 
Interest-bearing 4,622,961  4,735,500  4,839,027  5,019,184  5,185,626 
Total deposits 5,209,050  5,319,630  5,434,168  5,629,183  5,803,404 
Borrowings 1,722,178  1,667,055  1,626,933  1,506,812  1,611,692 
Advance payments by borrowers for taxes 17,387  16,742  16,907  18,338  18,706 
Other liabilities 44,279  46,427  47,324  41,198  49,304 
Total liabilities 6,992,894  7,049,854  7,125,332  7,195,531  7,483,106 
Stockholders' Equity
Common stock 644  645  652  659  667 
Paid-in capital 493,187  493,297  497,269  503,332  509,359 
Retained earnings 440,308  439,755  460,464  457,611  452,605 
Unearned ESOP shares (21,402) (21,889) (22,375) (22,862) (23,348)
Accumulated other comprehensive loss (63,659) (63,830) (86,476) (69,456) (73,053)
Total stockholders' equity 849,078  847,978  849,534  869,284  866,230 
Total liabilities and stockholders' equity $ 7,841,972  $ 7,897,832  $ 7,974,866  $ 8,064,815  $ 8,349,336 
Consolidated capital ratios
Equity to assets 10.83  % 10.74  % 10.65  % 10.78  % 10.37  %
Tangible equity to tangible assets (1)
 8.34  % 8.26  % 8.20  % 8.35  % 8.02  %
Share data
Outstanding shares 64,437 64,445 65,132 65,864 66,680
Book value per share $ 13.18  $ 13.16  $ 13.04  $ 13.20  $ 12.99 
Tangible book value per share (2)
 $ 9.87  $ 9.85  $ 9.77  $ 9.96  $ 9.79 
_________________________
(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) March 31,
2024		 December 31,
2023		 September 30,
2023		 June 30,
2023		 March 31,
2023
Loan portfolio composition:
Commercial loans:
Multi-family mortgage $ 2,645,195  $ 2,651,274  $ 2,699,151  $ 2,761,775  $ 2,835,852 
Nonresidential mortgage 965,539  947,287  946,801  968,574  1,002,643 
Commercial business 147,326  144,134  149,229  146,861  162,038 
Construction 229,457  221,933  230,703  226,609  215,524 
Total commercial loans 3,987,517  3,964,628  4,025,884  4,103,819  4,216,057 
One- to four-family residential mortgage 1,741,644  1,746,065  1,689,051  1,700,559  1,713,343 
Consumer loans:
Home equity loans 42,731  43,517  42,896  43,549  44,376 
Other consumer 3,198  2,728  2,644  2,549  2,592 
Total consumer loans 45,929  46,245  45,540  46,098  46,968 
Total loans, excluding yield adjustments 5,775,090  5,756,938  5,760,475  5,850,476  5,976,368 
Unaccreted yield adjustments (16,754) (11,309) (24,426) (21,055) (10,043)
Loans receivable, net of yield adjustments 5,758,336  5,745,629  5,736,049  5,829,421  5,966,325 
Less: allowance for credit losses on loans (44,930) (44,867) (46,872) (48,734) (49,122)
Net loans receivable $ 5,713,406  $ 5,700,762  $ 5,689,177  $ 5,780,687  $ 5,917,203 
Asset quality:
Nonperforming assets:
Accruing loans - 90 days and over past due $ —  $ —  $ —  $ —  $ — 
Nonaccrual loans 39,546  28,089  37,912  42,627  44,026 
Total nonperforming loans 39,546  28,089  37,912  42,627  44,026 
Nonaccrual loans held-for-sale —  9,700  —  —  — 
Other real estate owned —  11,982  12,956  12,956  13,410 
Total nonperforming assets $ 39,546  $ 49,771  $ 50,868  $ 55,583  $ 57,436 
Nonperforming loans (% total loans) 0.69  % 0.49  % 0.66  % 0.73  % 0.74  %
Nonperforming assets (% total assets) 0.50  % 0.63  % 0.64  % 0.69  % 0.69  %
Classified loans $ 115,772  $ 94,676  $ 98,616  $ 93,526  $ 103,461 
Allowance for credit losses on loans (ACL):
ACL to total loans 0.78  % 0.78  % 0.81  % 0.83  % 0.82  %
ACL to nonperforming loans 113.61  % 159.73  % 123.63  % 114.33  % 111.57  %
Net charge-offs $ 286  $ 4,110  $ 2,107  $ 82  $ 206 
Average net charge-off rate (annualized) 0.02  % 0.29  % 0.15  % 0.01  % 0.01  %

9

Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)
(Dollars in Thousands) March 31,
2024		 December 31,
2023		 September 30,
2023		 June 30,
2023		 March 31,
2023
Funding composition:
Deposits:
Non-interest-bearing deposits $ 586,089  $ 584,130  $ 595,141  $ 609,999  $ 617,778 
Interest-bearing demand 2,349,032  2,347,262  2,236,573  2,252,912  2,285,799 
Savings 630,456  646,182  689,163  748,721  811,483 
Certificates of deposit (retail) 1,235,261  1,283,676  1,300,382  1,377,028  1,327,343 
Certificates of deposit (brokered and listing service) 408,212  458,380  612,909  640,523  761,001 
Interest-bearing deposits 4,622,961  4,735,500  4,839,027  5,019,184  5,185,626 
Total deposits 5,209,050  5,319,630  5,434,168  5,629,183  5,803,404 
Borrowings:
Federal Home Loan Bank advances 1,357,178  1,432,055  1,456,933  1,281,812  1,156,692 
Other borrowings 365,000  235,000  170,000  225,000  455,000 
Total borrowings 1,722,178  1,667,055  1,626,933  1,506,812  1,611,692 
Total funding $ 6,931,228  $ 6,986,685  $ 7,061,101  $ 7,135,995  $ 7,415,096 
Loans as a % of deposits 109.8  % 107.4  % 104.8  % 102.9  % 102.1  %
Deposits as a % of total funding 75.2  % 76.1  % 77.0  % 78.9  % 78.3  %
Borrowings as a % of total funding 24.8  % 23.9  % 23.0  % 21.1  % 21.7  %
Uninsured deposits:
Uninsured deposits (reported) (1)
 $ 1,760,740  $ 1,813,122  $ 1,734,288  $ 1,771,416  $ 1,678,051 
Uninsured deposits (adjusted) (2)
 $ 718,026  $ 694,510  $ 683,265  $ 710,377  $ 705,727 
_________________________
(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)		 March 31,
2024		 December 31,
2023		 September 30,
2023		 June 30,
2023		 March 31,
2023
Interest income
Loans $ 64,035  $ 63,384  $ 62,769  $ 62,044  $ 60,172 
Taxable investment securities 15,490  16,756  16,265  15,736  15,459 
Tax-exempt investment securities 85  84  87  91  99 
Other interest-earning assets 2,475  2,401  2,047  1,821  1,441 
Total interest income 82,085  82,625  81,168  79,692  77,171 
Interest expense
Deposits 32,320  30,340  27,567  26,226  22,246 
Borrowings 15,446  16,446  14,441  13,286  12,554 
Total interest expense 47,766  46,786  42,008  39,512  34,800 
Net interest income 34,319  35,839  39,160  40,180  42,371 
Provision for (reversal of) credit losses 349  2,105  245  (306) 451 
Net interest income after provision for (reversal of) credit losses 33,970  33,734  38,915  40,486  41,920 
Non-interest income
Fees and service charges 657  624  748  699  910 
Loss on sale and call of securities —  (18,135) —  —  — 
Gain (loss) on sale of loans (712) 104  215  199  (2,373)
Loss on sale of other real estate owned —  (974) —  (139) — 
Income from bank owned life insurance 3,039  1,162  1,666  1,605  1,581 
Electronic banking fees and charges 464  396  367  399  457 
Other income 755  811  1,014  903  1,071 
Total non-interest income 4,203  (16,012) 4,010  3,666  1,646 
Non-interest expense
Salaries and employee benefits 16,911  17,282  17,761  17,315  18,005 
Net occupancy expense of premises 2,863  2,674  2,758  2,862  3,097 
Equipment and systems 3,823  3,814  3,801  3,511  3,537 
Advertising and marketing 387  301  228  231  413 
Federal deposit insurance premium 1,429  1,495  1,524  1,455  1,546 
Directors' compensation 360  393  393  345  340 
Other expense 3,286  3,808  3,309  3,042  3,414 
Total non-interest expense 29,059  29,767  29,774  28,761  30,352 
Income (loss) before income taxes 9,114  (12,045) 13,151  15,391  13,214 
Income taxes 1,717  1,782  3,309  3,378  2,902 
Net income (loss) $ 7,397  $ (13,827) $ 9,842  $ 12,013  $ 10,312 
Net income (loss) per common share (EPS)
Basic $ 0.12  $ (0.22) $ 0.16  $ 0.19  $ 0.16 
Diluted $ 0.12  $ (0.22) $ 0.16  $ 0.19  $ 0.16 
Dividends declared
Cash dividends declared per common share $ 0.11  $ 0.11  $ 0.11  $ 0.11  $ 0.11 
Cash dividends declared $ 6,844  $ 6,882  $ 6,989  $ 7,007  $ 7,196 
Dividend payout ratio 92.5  % -49.8  % 71.0  % 58.3  % 69.8  %
Weighted average number of common shares outstanding
Basic 62,205 62,299 63,014 63,667 64,769
Diluted 62,211 62,367 63,061 63,667 64,783
11

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)
Three Months Ended
(Dollars in Thousands) March 31,
2024		 December 31,
2023		 September 30,
2023		 June 30,
2023		 March 31,
2023
Assets
Interest-earning assets:
Loans receivable, including loans held-for-sale $ 5,752,477  $ 5,726,321  $ 5,788,074  $ 5,932,541  $ 5,986,669 
Taxable investment securities 1,382,064  1,509,165  1,516,393  1,529,582  1,558,222 
Tax-exempt investment securities 14,614  15,025  15,483  16,346  17,663 
Other interest-earning assets 125,155  139,740  130,829  128,158  131,682 
Total interest-earning assets 7,274,310  7,390,251  7,450,779  7,606,627  7,694,236 
Non-interest-earning assets 577,411  554,335  568,723  556,962  575,009 
Total assets $ 7,851,721  $ 7,944,586  $ 8,019,502  $ 8,163,589  $ 8,269,245 
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand $ 2,378,831  $ 2,301,169  $ 2,245,831  $ 2,321,120  $ 2,363,762 
Savings 635,226  664,926  719,508  774,854  858,673 
Certificates of deposit 1,705,513  1,824,316  1,968,512  2,057,818  2,069,396 
Total interest-bearing deposits 4,719,570  4,790,411  4,933,851  5,153,792  5,291,831 
Borrowings:
Federal Home Loan Bank advances 1,428,801  1,513,497  1,386,473  1,374,316  1,402,269 
Other borrowings 210,989  142,283  158,098  100,055  1,611 
Total borrowings 1,639,790  1,655,780  1,544,571  1,474,371  1,403,880 
Total interest-bearing liabilities 6,359,360  6,446,191  6,478,422  6,628,163  6,695,711 
Non-interest-bearing liabilities:
Non-interest-bearing deposits 581,870  597,294  612,251  608,765  634,324 
Other non-interest-bearing liabilities 65,709  62,387  66,701  64,970  60,327 
Total non-interest-bearing liabilities 647,579  659,681  678,952  673,735  694,651 
Total liabilities 7,006,939  7,105,872  7,157,374  7,301,898  7,390,362 
Stockholders' equity 844,782  838,714  862,128  861,691  878,883 
Total liabilities and stockholders' equity $ 7,851,721  $ 7,944,586  $ 8,019,502  $ 8,163,589  $ 8,269,245 
Average interest-earning assets to average
 interest-bearing liabilities
 114.39  % 114.65  % 115.01  % 114.76  % 114.91  %
12

Kearny Financial Corp.
Performance Ratio Highlights
Three Months Ended
March 31,
2024		 December 31,
2023		 September 30,
2023		 June 30,
2023		 March 31,
2023
Average yield on interest-earning assets:
Loans receivable, including loans held-for-sale 4.45  % 4.43  % 4.34  % 4.18  % 4.02  %
Taxable investment securities 4.48  % 4.44  % 4.29  % 4.12  % 3.97  %
Tax-exempt investment securities (1)
 2.32  % 2.25  % 2.25  % 2.23  % 2.23  %
Other interest-earning assets 7.91  % 6.87  % 6.26  % 5.68  % 4.38  %
Total interest-earning assets 4.51  % 4.47  % 4.36  % 4.19  % 4.01  %
Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand 3.08  % 2.91  % 2.58  % 2.38  % 2.01  %
Savings 0.46  % 0.44  % 0.47  % 0.48  % 0.41  %
Certificates of deposit 3.11  % 2.82  % 2.49  % 2.24  % 1.84  %
Total interest-bearing deposits 2.74  % 2.53  % 2.23  % 2.04  % 1.68  %
Borrowings:
Federal Home Loan Bank advances 3.55  % 3.82  % 3.54  % 3.51  % 3.58  %
Other borrowings 5.22  % 5.65  % 5.46  % 4.89  % 5.15  %
Total borrowings 3.77  % 3.97  % 3.74  % 3.60  % 3.58  %
Total interest-bearing liabilities 3.00  % 2.90  % 2.59  % 2.38  % 2.08  %
Interest rate spread (2)
 1.51  % 1.57  % 1.77  % 1.81  % 1.93  %
Net interest margin (3)
 1.89  % 1.94  % 2.10  % 2.11  % 2.20  %
Non-interest income to average assets (annualized) 0.21  % -0.81  % 0.20  % 0.18  % 0.08  %
Non-interest expense to average assets (annualized) 1.48  % 1.50  % 1.49  % 1.41  % 1.47  %
Efficiency ratio (4)
 75.43  % 150.13  % 68.97  % 65.60  % 68.96  %
Return on average assets (annualized) 0.38  % -0.70  % 0.49  % 0.59  % 0.50  %
Return on average equity (annualized) 3.50  % -6.59  % 4.57  % 5.58  % 4.69  %
Return on average tangible equity (annualized) (5)
 4.68  % -8.84  % 6.07  % 7.41  % 6.20  %
_________________________
(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)		 March 31,
2024		 December 31,
2023		 September 30,
2023		 June 30,
2023		 March 31,
2023
Adjusted net income:
Net income (loss) (GAAP) $ 7,397  $ (13,827) $ 9,842  $ 12,013  $ 10,312 
Non-recurring transactions - net of tax:
Branch consolidation expenses —  —  —  —  568 
Net effect of sale and call of securities —  12,876  —  —  — 
Net effect of bank-owned life insurance restructure —  6,286  —  —  — 
Adjusted net income $ 7,397  $ 5,335  $ 9,842  $ 12,013  $ 10,880 
Calculation of pre-tax, pre-provision net revenue:
Net income (loss) (GAAP) $ 7,397  $ (13,827) $ 9,842  $ 12,013  $ 10,312 
Adjustments to net income (GAAP):
Provision for income taxes 1,717  1,782  3,309  3,378  2,902 
Provision for (reversal of) credit losses 349  2,105  245  (306) 451 
Pre-tax, pre-provision net revenue (non-GAAP) $ 9,463  $ (9,940) $ 13,396  $ 15,085  $ 13,665 
Adjusted earnings per share:
Weighted average common shares - basic 62,205 62,299 63,014 63,667 64,769
Weighted average common shares - diluted 62,211 62,367 63,061 63,667 64,783
Earnings per share - basic (GAAP) $ 0.12  $ (0.22) $ 0.16  $ 0.19  $ 0.16 
Earnings per share - diluted (GAAP) $ 0.12  $ (0.22) $ 0.16  $ 0.19  $ 0.16 
Adjusted earnings per share - basic (non-GAAP) $ 0.12  $ 0.09  $ 0.16  $ 0.19  $ 0.17 
Adjusted earnings per share - diluted (non-GAAP) $ 0.12  $ 0.09  $ 0.16  $ 0.19  $ 0.17 
Pre-tax, pre-provision net revenue per share:
Pre-tax, pre-provision net revenue per share - basic
  (non-GAAP)
 $ 0.15  $ (0.16) $ 0.21  $ 0.24  $ 0.21 
Pre-tax, pre-provision net revenue per share - diluted
  (non-GAAP)
 $ 0.15  $ (0.16) $ 0.21  $ 0.24  $ 0.21 
Adjusted return on average assets:
Total average assets $ 7,851,721  $ 7,944,586  $ 8,019,502  $ 8,163,589  $ 8,269,245 
Return on average assets (GAAP) 0.38  % -0.70  % 0.49  % 0.59  % 0.50  %
Adjusted return on average assets (non-GAAP) 0.38  % 0.27  % 0.49  % 0.59  % 0.53  %
Adjusted return on average equity:
Total average equity $ 844,782  $ 838,714  $ 862,128  $ 861,691  $ 878,883 
Return on average equity (GAAP) 3.50  % -6.59  % 4.57  % 5.58  % 4.69  %
Adjusted return on average equity (non-GAAP) 3.50  % 2.54  % 4.57  % 5.58  % 4.95  %
14

Kearny Financial Corp.
Reconciliation of GAAP to Non-GAAP
(Unaudited)
Three Months Ended
(Dollars and Shares in Thousands,
Except Per Share Data)		 March 31,
2024		 December 31,
2023		 September 30,
2023		 June 30,
2023		 March 31,
2023
Adjusted return on average tangible equity:
Total average equity $ 844,782  $ 838,714  $ 862,128  $ 861,691  $ 878,883 
Less: average goodwill (210,895) (210,895) (210,895) (210,895) (210,895)
Less: average other intangible assets (2,138) (2,277) (2,411) (2,544) (2,683)
Total average tangible equity $ 631,749  $ 625,542  $ 648,822  $ 648,252  $ 665,305 
Return on average tangible equity (non-GAAP) 4.68  % -8.84  % 6.07  % 7.41  % 6.20  %
Adjusted return on average tangible equity (non-GAAP) 4.68  % 3.41  % 6.07  % 7.41  % 6.54  %
Adjusted non-interest expense ratio:
Non-interest expense (GAAP) $ 29,059  $ 29,767  $ 29,774  $ 28,761  $ 30,352 
Non-recurring transactions:
Branch consolidation expenses —  —  —  —  (800)
Non-interest expense (non-GAAP) $ 29,059  $ 29,767  $ 29,774  $ 28,761  $ 29,552 
Non-interest expense ratio (GAAP) 1.48  % 1.50  % 1.49  % 1.41  % 1.47  %
Adjusted non-interest expense ratio (non-GAAP) 1.48  % 1.50  % 1.49  % 1.41  % 1.43  %
Adjusted efficiency ratio:
Non-interest expense (non-GAAP) $ 29,059  $ 29,767  $ 29,774  $ 28,761  $ 29,552 
Net interest income (GAAP) $ 34,319  $ 35,839  $ 39,160  $ 40,180  $ 42,371 
Total non-interest income (GAAP) 4,203  (16,012) 4,010  3,666  1,646 
Non-recurring transactions:
Net effect of sale and call of securities —  18,135  —  —  — 
Net effect of bank-owned life insurance restructure —  573  —  —  — 
Total revenue (non-GAAP) $ 38,522  $ 38,535  $ 43,170  $ 43,846  $ 44,017 
Efficiency ratio (GAAP) 75.43  % 150.13  % 68.97  % 65.60  % 68.96  %
Adjusted efficiency ratio (non-GAAP) 75.43  % 77.25  % 68.97  % 65.60  % 67.14  %

15
EX-99.2 3 krny-20240425xexx992xfin.htm EX-99.2 krny-20240425xexx992xfin
APRIL 25, 2024 I N V E S T O R P R E S E N T A T I O N T H I R D Q U A R T E R F I S C A L 2 0 2 4 EXHIBIT 99.2

 
Forward Looking Statements & Financial Measures 2 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, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Company’s control). In addition to the factors described under Item 1A. Risk Factors in the Company’s Annual Report on Form 10-K, and subsequent filings with the Securities and Exchange Commission, the following factors, among others, could cause the Company’s financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: • the strength of the United States economy in general and the strength of the local economy in which the Company conducts operations, • the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, interest rates, market and monetary fluctuations, • the impact of changes in laws, regulations and government policies regarding financial institutions (including laws concerning taxation, banking, securities and insurance), • changes in accounting policies and practices, as may be adopted by regulatory agencies, the Financial Accounting Standards Board (“FASB”) or the Public Company Accounting Oversight Board, • technological changes, • competition among financial services providers, and • the success of the Company at managing the risks involved in the foregoing and managing its business. The Company cautions that the foregoing list of important factors is not exhaustive. Readers should not place any undue reliance on any forward looking statements, which speak only as of the date made. The Company does not undertake 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.

 
Kearny Financial Corp. NASDAQ: KRNY Headquartered in Fairfield, NJ 43 full-service branches1 in New Jersey and New York City Active acquirer, having completed 7 whole-bank acquisitions since 1999 1 As of March 31, 2024. Source: S&P Global Market Intelligence & Company Filings. 3

 
140 Years of Serving our Communities and Clients 4

 
3Q24 Financial Highlights 1 Excludes Yield Adjustments. Source: Company Filings. 5 3Q24 Highlights: Net Interest Margin - Compression slowed, declining five basis points from the prior quarter BOLI Restructure – Excluding non-recurring items, run-rate BOLI earnings improved by $673,000 compared to the prior quarter Non-performing assets improved to 0.50% in 3Q24 compared to 0.63% in 2Q24 Net Income Total Assets $7.8 billion Net Interest Income Diluted EPS $7.4 million $34.3 million $0.12 Total Loans1 Total Deposits $5.8 billion $5.2 billion

 
Capital Strength Equity Capitalization Level 1 Kearny Financial Corp. (NASDAQ: KRNY) Regulatory Capital Ratios as of March 31, 2024 are preliminary. 2 S&P U.S. Small Cap Banks Index comprised of 243 constituents, based on December 31, 2023 results. Source: Company Filings. 6 Regulatory Capital Ratios1,2 8.02% 8.35% 8.20% 8.26% 8.34% 10.37% 10.78% 10.65% 10.74% 10.83% 3Q23 4Q23 1Q24 2Q24 3Q24 Tangible Common Equity / Tangible Assets Equity / Assets 9.07% 14.68% 14.68% 15.45% 9.65% 11.53% 11.73% 14.16% Tier 1 Leverage Common Equity Tier 1 Tier 1 Risk-Based Capital Total Risk-Based Capital KRNY S&P US Small Cap Banks

 
7 Conservative Underwriting Culture Comprehensive CRE / Multifamily Underwriting Highly disciplined LTV and DSCR standards Interest rates stressed a minimum of +300bps at origination DSCR based on in-place rents, not projections, with conservative allowances for vacancy NOI underwritten to include forecasted expense increases and full taxes (where a tax abatement exists) Approval Authority & Underwriting Consistency Lending authority aggregated by borrower/group of related borrowers Technology ensures consistent and efficient underwriting and risk rating process Multi-faceted Loan Review & Stress Testing Semi-annual third-party loan-level stress testing and annual capital-based stress testing Quarterly third-party portfolio loan review with 65% of total portfolio reviewed on an annual basis Annual internal loan reviews on all commercial loans with balances of $2.5 million or greater Proactive Workout Process Dedicated team of portfolio managers and loan workout specialists Weekly meetings comprised of loan officers, credit personnel and special assets group to pre-emptively address delinquencies or problem credits Philosophy of aggressively addressing impaired assets in a timely fashion Senior Credit Officer Approval Management Loan Committee Approval Board Loan Committee Approval

 
Track Record of Strong Credit Performance 1 Data provided by Federal Reserve Bank of St. Louis. Source: Company Filings. 8 From 2006 to 2023, inclusive of the Global Financial Crisis and the COVID -19 Pandemic, KRNY’s NCO to average total loans totaled 9 bps per year compared to 50 bps for all Commercial Banks (US Banks not among the top 100)1. Net Charge-offs to Average Total Loans 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 3Q24 Commercial Banks (not among top 100) KRNY Global Financial Crisis COVID-19 Pandemic Cumulative charge-offs for KRNY between 2006 and 3Q24 were minimal, totaling $35.1 million.

 
Diversified Loan Portfolio Loan Composition1 Geographic Distribution2Loan Trend 1 For the quarter ended March 31, 2024. 2 As of March 31, 2024. Source: S&P Global Market Intelligence & Company Filings. 9 ($ millions) 1-4 Family 30.2% Home Equity 0.7% Multi-family 45.8% CRE 16.7% Construction 4.0% C&I 2.6% QTD Yield on Loans 4.45% $1,713 $1,701 $1,689 $1,746 $1,742 $2,836 $2,762 $2,699 $2,651 $2,645 $1,003 $969 $947 $947 $966 $5,976 $5,850 $5,760 $5,757 $5,775 3Q23 4Q23 1Q24 2Q24 3Q24 1-4 Family Home Equity Multi-family CRE Construction C&I New York 34.4% New Jersey 54.9% Pennsylvania 5.9% Other 4.8% LTV 61.3%

 
Multifamily Loan Portfolio Multifamily Loan Portfolio Composition1 New York City (“NYC”) Multifamily1 Source: Company Filings 1 As of March 31, 2024. 10 Less than half of our Multifamily portfolio is collateralized by properties in NYC Only 8% of our Multifamily portfolio is collateralized by majority or fully rent-regulated NYC properties There are limited levels of maturing or repricing NYC Multifamily loans in calendar 2024 and 2025 Outstanding asset quality over multiple credit cycles NYC Multifamily Portfolio: $1.2 billion Average Loan Balance: $3.45 million Weighted Average LTV: 62.7% Nonperforming Loans / Total MF Loans: 0.4% Apr to Dec 2024 Maturity & Repricing: $27.9 million Calendar Year 2025 Maturity & Repricing: $120.7 million Majority NYC Free Market 39.3% Outside NYC 52.9% 100% NYC Rent Regulated 3.7% Majority NYC Rent Regulated 4.1% Total MF $2.6B

 
NYC Multifamily Loan Portfolio 1 As of March 31, 2024. 2 Source: “New York City Multifamily In Review Report 2023” by Ariel Property Advisors; https://arielpa.nyc/investor-relations/research-reports 3 “New York City Multifamily In Review Report 2023” by Ariel Property Advisors; https://arielpa.nyc/insights/240206-how-low-can-it-go-finding-value-in-new-york-city-apartment-building-sales [arielpa.nyc] 11 Independent Market Research Report Data Industry Market Reports indicate that real estate prices in Brooklyn outperformed the other boroughs of NYC 66.5% of the Company’s NYC Multifamily portfolio is located in Brooklyn, NY Brooklyn 66.5% Queens 12.8% Manhattan 10.8% Bronx 9.5% Staten Island 0.4% Total NYC MF $1.2 B LTV 62.7% Rent Stabilized Location Building Value Change Bronx (29%) Brooklyn (7%) Manhattan (below 96th St) (37%) Northern Manhattan (above 96th St) (51%) Queens (22%) NYC Average (18%) Free Market Location Building Value Change Bronx 1% Brooklyn 1% Manhattan (below 96th St) (31%) Northern Manhattan (above 96th St) (25%) Queens 6% NYC Average (11%) Pricing Drop from Peak Pricing2 Free Market - Pricing Drop from Peak Pricing3

 
CRE Loan Detail Source: Company Filings. 1 As of March 31, 2024. 12 CRE Portfolio by Collateral Type1 CRE Loan Geographic Distribution1 Retail 36.3% Mixed Use 26.1% Office 15.1% Industrial 16.7% Specialty & Other 2.0% Medical 3.8% New Jersey 56.2% Brooklyn 9.9% New York (Ex. Brooklyn) 26.5% Pennsylvania 4.8% Other 2.6% Total CRE $1.0 B LTV 52%

 
Office Portfolio 1 As of March 31, 2024. Source: Company Filings. 13 Office Portfolio by Contractual Maturity1 Office Loan Geographic Distribution1 Office Portfolio Profile 15.7% of total CRE portfolio or $146 million Average loan size of $1.7 million Classified office loans comprised of 0.7% of total office loans ($ millions) ($ millions) $6 $5 $17 $49 $22 $10 $37 $- $10 $20 $30 $40 $50 $60 2024 2025 2026 2027 2028 2029 2030+ Other 3.1% Manhattan 22.4% New York (Ex. Manhattan) 4.5% New Jersey 70.0% Total Office $146 M LTV 48.4% DSCR 1.8x

 
Asset Quality Metrics Non-Performing Assets / Total Assets Non-Performing Loans1 Allowance for Credit Losses 1 As of March 31, 2024; amounts shown in millions. Source: S&P Global Market Intelligence & Company Filings. 14 NPL's $39.5 MM 0.69% 0.69% 0.64% 0.63% 0.50% 0.25% 0.50% 0.75% 1.00% 3Q23 4Q23 1Q24 2Q24 3Q24 Multi-family $25.2 CRE $4.5 C&I $4.2 1-4 Family $5.6 NPL's $39.5 MM $46.6 $45.3 $45.0 $44.7 $44.7 $2.5 $3.4 $1.9 $0.2 $0.2 0.82% 0.83% 0.81% 0.78% 0.78% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 3Q23 4Q23 1Q24 2Q24 3Q24 ACL Balance - Individually Analyzed ACL Balance - Collectively Evaluated ACL to Total Loans Receivable Net Charge-Offs / Average Loans 0.01% 0.01% 0.15% 0.29% 0.02% -0.10% 0.00% 0.10% 0.20% 0.30% 0.40% 3Q23 4Q23 1Q24 2Q24 3Q24 Increase driven by a single commercial real estate relationship

 
Granular Deposit Franchise 1 For the quarter ended March 31, 2024. 2 As of March 31,2024; excludes Wholesale and state & local government deposits. Source: S&P Global Market Intelligence & Company Filings. 15 Deposit Composition1 Deposit Trend Deposit Segmentation2Non-Maturity Deposit Mix Retail CDs 23.7% Wholesale CDs 7.8% Savings 12.1% Interest Bearing DDA 45.1% Non-interest Bearing DDA 11.3% ($ millions) $1,327 $1,377 $1,300 $1,284 $1,235 $761 $640 $613 $458 $408 $811 $749 $689 $646 $630 $2,286 $2,253 $2,237 $2,348 $2,349 $618 $610 $595 $584 $586 $5,803 $5,629 $5,434 $5,320 $5,209 3Q23 4Q23 1Q24 2Q24 3Q24 Retail CDs Wholesale CDs Savings Interest Bearing DDA Non-interest Bearing DDA Consumer 62.8% Commercial 21.4% Government 15.8% Product # of Accounts Balance ($ millions) Average Balance per Account Checking 53,349 $ 2,379 $ 44,594 Savings 32,098 623 19,419 CD 26,242 1,640 62,502 Total Retail Deposits 111,689 $ 4,642 $ 41,557 QTD Cost of Deposits 2.74%

 
Liquidity Available for Uninsured Deposits Estimated Uninsured Deposits Analysis2 1 Estimated amount of uninsured deposits reported in March 31, 2024 Call Report. 2 As of March 31, 2024. 16 Available liquidity is 2.5x greater than estimated uninsured deposits (excluding items above) Liquidity Capacity2 Estimated Uninsured Deposit Analysis ($ millions) Estimated Uninsured Deposits 1,761$ Less: Collateralized State & Local Government Deposits (552) Less: Bank's wholly-owned subsidiary & Holding Company Deposits (491) Estimated uninsured deposits excluding items above: 718$ Total Deposits 5,209$ Estimated uninsured deposits, excluding items above, as a % of Total Deposits 13.8% 1 Sources of Liquidity ($ millions) Liquidity Capacity Funding Utilized Available Capacity Internal Sources: Free Securities and other 337$ -$ 337$ External Sources: FRB 503 100 403 FHLB 2,690 1,623 1,067 Total Liquidity 3,530$ 1,723$ 1,807$

 
Investment Securities 1 As of March 31, 2024. 2 Comprised entirely of securitized federal education loans with 97% U.S. government guarantees. 3 Assumes 29% marginal tax rate. Source: S&P Global Market Intelligence & Company Filings. 17 Securities Composition1 Securities Average Balance & Yield TrendAFS/HTM & Effective Duration Total Effective Duration ≈ 3.2 years Floating rate securities ≈ 38.3% ($ millions) $1,576 $1,546 $1,532 $1,524 $1,397 3.95% 4.10% 4.27% 4.42% 4.46% 3Q23 4Q23 1Q24 2Q24 3Q24 Corporate Bonds 10.1% CLO 32.8% ABS Student Loans 7.0% Agency MBS 49.0% Municipal Bonds 1.1% 2 QTD Yield on Securities 4.46% AFS , 88.7% HTM , 11.3% At March 31, 2024, the after-tax net unrecognized loss on securities held-to-maturity was $11.4 million, or 1.79% of tangible equity3

 
Best-in-Class Operating Efficiency Source: S&P Global Market Intelligence & Company Filings. 18 Non-interest Expense to Average Assets $68 $74 $75 $96 $114 $130 $131 $121 1 21 41 61 81 101 121 2017 2018 2019 2020 2021 2022 2023 3Q24 ($ millions) Deposits per Branch 1.8x 2017 3Q24 1.76% 1.48% Core Non-interest Expense to Total Average Assets -28 bps 1.76% 1.86% 1.64% 1.61% 1.72% 1.73% 1.53% 1.48% 1.40% 1.50% 1.60% 1.70% 1.80% 1.90% 2.00% 2017 2018 2019 2020 2021 2022 2023 3Q24

 
Best-in-Class Technology Embedded Throughout the Organization 19