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FALSE000161724200016172422024-07-252024-07-25

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): July 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 July 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 June 30, 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 July 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. 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 and shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933.
Item 8.01    Other Events
On July 25, 2024, the Company’s Board of Directors announced a quarterly cash dividend of $0.11 per share, payable on August 26, 2024, to stockholders of record as of August 12, 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: July 25, 2024
 By: /s/ Keith Suchodolski
Keith Suchodolski
Senior Executive Vice President and Chief Operating Officer

EX-99.1 2 krny-20240725xexx991.htm EX-99.1 Document

Exhibit 99.1
FOR IMMEDIATE RELEASE
July 25, 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 FOURTH QUARTER AND FISCAL YEAR END 2024 RESULTS
AND DECLARATION OF $0.11 PER SHARE CASH DIVIDEND

Fairfield, N.J., July 25, 2024 – Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), reported a GAAP net loss for the quarter ended June 30, 2024 of $90.1 million, or $1.45 per diluted share, attributable to a non-cash, after-tax, goodwill impairment of $95.3 million. Excluding the impact of the goodwill impairment and other non-recurring transactions, adjusted net income for the quarter ended June 30, 2024 was $5.6 million, or $0.09 per diluted share, as compared to net income of $7.4 million, or $0.12 per diluted share, for the quarter ended March 31, 2024.

“Goodwill impairment in no way affects our ongoing strategy or our ability to serve the banking needs of our clients,” said Craig L. Montanaro, President & Chief Executive Officer. “It also has no impact on our financial condition, robust liquidity position, or peer-leading regulatory capital ratios. This impairment simply reflects the impact of the current interest rate environment on bank stock prices, including our own.”

For the fiscal year ended June 30, 2024, the Company reported a GAAP net loss of $86.7 million, or $1.39 per diluted share, compared to GAAP net income of $40.8 million, or $0.63 per diluted share, for the fiscal year ended June 30, 2023, primarily attributable to the non-cash goodwill impairment mentioned above. Excluding the impact of the goodwill impairment and other non-recurring transactions, adjusted net income for the fiscal year ended June 30, 2024 was $28.2 million, or $0.45 per diluted share, as compared to adjusted net income of $50.6 million, or $0.78 per diluted share, for the fiscal year ended June 30, 2023.

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on August 26, 2024, to stockholders of record as of August 12, 2024.

“Despite the challenging interest rate environment we have plenty of positive news to report this quarter,” Mr. Montanaro said. “The performance of our commercial real estate and multifamily portfolios continues to be outstanding, with non-performing assets having improved by $15.7 million, or 0.17% of assets, from June 30, 2023. Our deposit origination efforts, including those via our digital channel, have continued to gain traction with non interest-bearing deposits growing $12.3 million, or 2.1%, quarter-over-quarter. In addition, we now anticipate a net interest margin inflection in the near-term, as our retail time deposit portfolio has repriced above 4.00% and non-maturity deposit disintermediation has meaningfully slowed.”

Mr. Montanaro concluded by noting, “As described in greater detail later in this release, we fully charged-off a $3.3 million non-performing commercial & industrial lending relationship this quarter. We do not view this charge-off as a reflection of any broader weakness in our loan portfolio, but rather a borrower-specific event.”

Balance Sheet
•Total assets were $7.68 billion at June 30, 2024, a decrease of $158.5 million, or 2.0%, from March 31, 2024 and a decrease of $381.4 million, or 4.7%, from June 30, 2023.
•Investment securities totaled $1.21 billion at June 30, 2024, a decrease of $29.7 million, or 2.4%, from March 31, 2024 and a decrease of $165.6 million, or 12.1%, from June 30, 2023. The decrease for the year was largely driven by the sale of available-for-sale securities, which was part of the investment securities portfolio repositioning executed in December 2023.
•Loans receivable totaled $5.73 billion at June 30, 2024, a decrease of $25.5 million, or 0.4%, from March 31, 2024 and a decrease of $96.6 million, or 1.7%, from June 30, 2023. The decrease for the year was largely driven by multi-family and nonresidential mortgage loans.
1

•Deposits were $5.16 billion at June 30, 2024, a decrease of $50.9 million, or 1.0%, from March 31, 2024 and a decrease of $471.1 million, or 8.4%, from June 30, 2023. The decrease from March 31, 2024 was driven by a $40.1 million decline in interest bearing government deposits and a $36.1 million decline in retail certificates of deposits (“CDs”), partially offset by growth in non-interest bearing and consumer savings deposits. Excluding brokered CDs, deposits decreased $238.8 million, or 4.8%, from June 30, 2023, driven by a $177.9 million decline in retail CDs and a $105.2 million decline in consumer savings deposits, partially offset by growth in other deposit categories.
•Borrowings were $1.71 billion at June 30, 2024, a decrease of $12.4 million, or 0.7%, from March 31, 2024 and an increase of $203.0 million, or 13.5%, from June 30, 2023.
•At June 30, 2024, the Company maintained available secured borrowing capacity of $1.82 billion, of which $1.44 billion was immediately accessible via in-place collateral and $381.4 million represented the market value of unpledged securities.
•Goodwill was $113.5 million at June 30, 2024, a decrease of $97.4 million, or 46.2%, from March 31, 2024 and June 30, 2023. The Company recognized a non-cash goodwill impairment, as noted above.
Earnings
Net Interest Income and Net Interest Margin
•Net interest margin contracted five basis points to 1.84% for the quarter ended June 30, 2024 and 40 basis points to 1.94% for the year ended June 30, 2024. The decreases for the quarter and the year were driven by increases in the cost of interest-bearing liabilities, increases in the average balances of interest-bearing borrowings and decreases in the average balances of interest-earning assets, partially offset by higher yields on interest-earning assets and decreases in the average balances of interest-bearing deposits.
•For the quarter ended June 30, 2024, net interest income decreased $1.0 million to $33.3 million from $34.3 million for the quarter ended March 31, 2024. Included in net interest income for the quarters ended June 30, 2024 and March 31, 2024, respectively, was purchase accounting accretion of $612,000 and $734,000, and loan prepayment penalty income of $366,000 and $61,000.
•For the year ended June 30, 2024, net interest income decreased $33.3 million to $142.6 million from $175.9 million for the year ended June 30, 2023. Included in net interest income for the years ended June 30, 2024 and 2023, respectively, was purchase accounting accretion of $2.6 million and $5.3 million, and loan prepayment penalty income of $879,000 and $895,000.
Non-Interest Income
•For the quarter ended June 30, 2024, non-interest income increased $1.6 million to income of $5.8 million from income of $4.2 million for the quarter ended March 31, 2024. Non-interest income for the quarter ended June 30, 2024 included a contract renewal bonus of $750,000 related to a licensing agreement with a third-party vendor. Included in other income for the quarter ended March 31, 2024 was an $884,000 non-recurring loss attributable to the sale of three related nonperforming commercial real estate loans held-for-sale. No such losses were recorded during the quarter ended June 30, 2024.
•Income from BOLI increased $170,000 to $3.2 million for the quarter ended June 30, 2024 from $3.0 million for the quarter ended March 31, 2024. BOLI income included a total of $1.1 million in non-recurring payments on two life insurance policies in the current period, partially offset by a $392,000 non-recurring exchange charge related to the December 2023 BOLI restructure. For the quarter ended March 31, 2024, BOLI income included a $631,000 non-recurring payment on one life insurance policy.
•For the year ended June 30, 2024, non-interest income decreased $4.7 million to a loss of $2.0 million. The decrease was primarily attributable to a pre-tax loss of $18.1 million related to the investment securities portfolio repositioning executed during December 2023 compared to a pre-tax loss of $15.2 million on the sale of securities in the prior year period. Included in other income for the year ended June 30, 2023 was a nonrecurring gain of $2.9 million attributable to the sale of a former branch location. No such gains were recorded during the year ended June 30, 2024.
2

Non-Interest Expense
•For the quarter ended June 30, 2024, non-interest expense increased $97.5 million, or 335.5%, to $126.6 million from $29.1 million for the quarter ended March 31, 2024, driven by a non-cash goodwill impairment recognized in the current quarter. Excluding the goodwill impairment, adjusted non-interest expense increased $122,000, or 0.4%, to $29.2 million from $29.1 million in the prior quarter, driven primarily by a nonrecurring increase in post-retirement benefits expense.
•For the year ended June 30, 2024, non-interest expense increased $91.4 million, or 73.9%, to $215.2 million from $123.8 million for the year ended June 30, 2023, driven by non-cash goodwill impairment, as noted above. Excluding the goodwill impairment, adjusted non-interest expense decreased $4.4 million, or 3.6%, to $117.8 million from $122.2 million in the prior year period. The decrease was primarily attributable to decreases in salary and employee benefits expenses, occupancy, advertising and other expenses, which resulted from a continued execution of the company-wide operating efficiency initiative previously announced in December 2022.
•Salaries and employee benefits decreased $6.4 million, or 8.4%, for the year ended June 30, 2024 reflecting lower average headcount and a decrease in incentive payments tied to origination volume, partially offset by annual merit increases. Included in salaries and employee benefits for the year ended June 30, 2023 was $757,000 of severance expense from a workforce realignment.
•For the year ended June 30, 2023, the Company recorded $800,000 in branch consolidation expense, of which $250,000 was recorded in occupancy expense and $550,000 was recorded in other expense. No such expenses were recorded during the year ended June 30, 2024.

Income Taxes
•Income tax expense was reduced by $917,000 for the quarter ended June 30, 2024 compared to an expense of $1.7 million for the quarter ended March 31, 2024. The decrease in income tax expense for the quarter was mainly attributable to a partial reversal of the deferred tax liability associated with the goodwill impairment, as discussed above.
•Income tax expense totaled $5.9 million for the fiscal year ended June 30, 2024 compared to $11.6 million for the fiscal year ended June 30, 2023. The decrease in income tax expense was due to lower pre-tax income, partially offset by $5.7 million of tax expense related to the surrender of BOLI policies during the fiscal year ended June 30, 2024.
Asset Quality
•The balance of non-performing assets increased $336,000 to $39.9 million, or 0.52% of total assets, at June 30, 2024, from $39.5 million, or 0.50% of total assets, at March 31, 2024. The balance of non-performing assets was $55.6 million, or 0.69% of total assets, at June 30, 2023. The decrease from June 30, 2023 was primarily driven by the January 2024 sales of three related non-performing commercial real estate loans held-for-sale and the Company’s sole Other Real Estate Owned asset.
•Net charge-offs totaled $3.5 million, or 0.25% of average loans, on an annualized basis, for the quarter ended June 30, 2024, compared to $286,000, or 0.02% of average loans, on an annualized basis, for the quarter ended March 31, 2024. For the year ended June 30, 2024, net charge-offs totaled $10.0 million, or 0.17% of average loans, compared to $810,000, or 0.01% of average loans, for the year ended June 30, 2023.
•The charge-offs recorded during the quarter ended June 30, 2024 were primarily driven by a $3.3 million non-performing commercial and industrial loan relationship with a masonry and concrete business (the “borrower”). This relationship was originated in 2021 and is secured by the borrower’s business assets and receivables, as well as the personal guarantee of the principal. The borrower had made consistent and timely payments on these loans until recently, when the business ceased operations due to operating losses and litigation. The Company is currently pursuing all available remedies against the borrower and guarantor.
•For the quarter ended June 30, 2024, the Company recorded a provision for credit losses of $3.5 million, compared to $349,000 for the quarter ended March 31, 2024. The provision for credit loss expense for the quarter ended June 30, 2024 was primarily driven by the charge-offs described above. For the years ended June 30, 2024 and 2023, the Company recorded a provision for credit losses of $6.2 million and $2.5 million, respectively.
•The allowance for credit losses (“ACL”) was $44.9 million, or 0.78% of total loans, at June 30, 2024, unchanged from March 31, 2024, and a decrease of $3.8 million from $48.7 million, or 0.83% of total loans, at June 30, 2023. The decrease in the ACL from June 30, 2023 was largely attributable to a reduction in reserves for individually evaluated loans, resulting from the charge-offs noted above.
3

Capital
•At June 30, 2024 the Company's tangible equity to tangible assets ratio increased to 8.43% while the Company's Common Equity Tier 1 Capital Ratio increased to 14.79%. All of the Company's capital ratios remained strong and were significantly in excess of regulatory well-capitalized standards.
•At June 30, 2024, book value per share totaled $11.70 while tangible book value per share totaled $9.90.
•At June 30, 2024, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $93.0 million, partially offset by after-tax unrealized gains on derivatives of $29.6 million. After-tax net unrecognized losses on securities held to maturity of $11.7 million were not reflected in total stockholders’ equity.

This earnings release should be read in conjunction with Kearny Financial Corp.’s Q4 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
4

Linked-Quarter Comparative Financial Analysis
Kearny Financial Corp.
Consolidated Balance Sheets
(Unaudited)
(Dollars and Shares in Thousands,
Except Per Share Data)		 June 30,
2024		 March 31,
2024		 Variance
or Change		 Variance
or Change Pct.
Assets
Cash and cash equivalents $ 63,864  $ 71,027  $ (7,163) -10.1  %
Securities available for sale 1,072,833  1,098,655  (25,822) -2.4  %
Securities held to maturity 135,742  139,643  (3,901) -2.8  %
Loans held-for-sale 6,036  4,117  1,919  46.6  %
Loans receivable 5,732,787  5,758,336  (25,549) -0.4  %
Less: allowance for credit losses on loans (44,939) (44,930) 9  —  %
Net loans receivable 5,687,848  5,713,406  (25,558) -0.4  %
Premises and equipment 44,940  45,053  (113) -0.3  %
Federal Home Loan Bank stock 80,300  81,347  (1,047) -1.3  %
Accrued interest receivable 29,521  31,065  (1,544) -5.0  %
Goodwill 113,525  210,895  (97,370) -46.2  %
Core deposit intangible 1,931  2,057  (126) -6.1  %
Bank owned life insurance 297,874  296,493  1,381  0.5  %
Deferred income taxes, net 50,339  47,225  3,114  6.6  %
Other assets 98,708  100,989  (2,281) -2.3  %
Total assets $ 7,683,461  $ 7,841,972  $ (158,511) -2.0  %
Liabilities
Deposits:
Non-interest-bearing $ 598,366  $ 586,089  $ 12,277  2.1  %
Interest-bearing 4,559,757  4,622,961  (63,204) -1.4  %
Total deposits 5,158,123  5,209,050  (50,927) -1.0  %
Borrowings 1,709,789  1,722,178  (12,389) -0.7  %
Advance payments by borrowers for taxes 17,409  17,387  22  0.1  %
Other liabilities 44,569  44,279  290  0.7  %
Total liabilities 6,929,890  6,992,894  (63,004) -0.9  %
Stockholders' Equity
Common stock 644  644  —  —  %
Paid-in capital 493,680  493,187  493  0.1  %
Retained earnings 343,326  440,308  (96,982) -22.0  %
Unearned ESOP shares (20,916) (21,402) 486  2.3  %
Accumulated other comprehensive loss (63,163) (63,659) 496  0.8  %
Total stockholders' equity 753,571  849,078  (95,507) -11.2  %
Total liabilities and stockholders' equity $ 7,683,461  $ 7,841,972  $ (158,511) -2.0  %
Consolidated capital ratios
Equity to assets 9.81  % 10.83  % -1.02  %
Tangible equity to tangible assets (1)
 8.43  % 8.34  % 0.09  %
Share data
Outstanding shares 64,434 64,437 (3) —  %
Book value per share $ 11.70  $ 13.18  $ (1.48) -11.2  %
Tangible book value per share (2)
 $ 9.90  $ 9.87  $ 0.03  0.3  %
_________________________
(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.
5

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.
June 30,
2024		 March 31,
2024
Interest income
Loans $ 65,819  $ 64,035  $ 1,784  2.8  %
Taxable investment securities 14,802  15,490  (688) -4.4  %
Tax-exempt investment securities 80  85  (5) -5.9  %
Other interest-earning assets 2,289  2,475  (186) -7.5  %
Total interest income 82,990  82,085  905  1.1  %
Interest expense
Deposits 32,187  32,320  (133) -0.4  %
Borrowings 17,527  15,446  2,081  13.5  %
Total interest expense 49,714  47,766  1,948  4.1  %
Net interest income 33,276  34,319  (1,043) -3.0  %
Provision for credit losses 3,527  349  3,178  910.6  %
Net interest income after provision for credit losses 29,749  33,970  (4,221) -12.4  %
Non-interest income
Fees and service charges 580  657  (77) -11.7  %
Gain (loss) on sale of loans 111  (712) 823  -115.6  %
Income from bank owned life insurance 3,209  3,039  170  5.6  %
Electronic banking fees and charges 1,130  464  666  143.5  %
Other income 776  755  21  2.8  %
Total non-interest income 5,806  4,203  1,603  -38.1  %
Non-interest expense
Salaries and employee benefits 17,266  16,911  355  2.1  %
Net occupancy expense of premises 2,738  2,863  (125) -4.4  %
Equipment and systems 3,785  3,823  (38) -1.0  %
Advertising and marketing 480  387  93  24.0  %
Federal deposit insurance premium 1,532  1,429  103  7.2  %
Directors' compensation 360  360  —  —  %
Goodwill impairment 97,370  —  97,370  —  %
Other expense 3,020  3,286  (266) -8.1  %
Total non-interest expense 126,551  29,059  97,492  335.5  %
(Loss) income before income taxes (90,996) 9,114  (100,110) 1098.4  %
Income taxes (917) 1,717  (2,634) -153.4  %
Net (loss) income $ (90,079) $ 7,397  $ (97,476) 1317.8  %
Net (loss) income per common share (EPS)
Basic $ (1.45) $ 0.12  $ (1.57)
Diluted $ (1.45) $ 0.12  $ (1.57)
Dividends declared
Cash dividends declared per common share $ 0.11  $ 0.11  $ — 
Cash dividends declared $ 6,903  $ 6,844  $ 59 
Dividend payout ratio -7.7  % 92.5  % -100.2  %
Weighted average number of common shares outstanding
Basic 62,254 62,205 49
Diluted 62,254 62,211 43
6

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)
(Dollars in Thousands) Three Months Ended Variance
or Change		 Variance
or Change Pct.
June 30,
2024		 March 31,
2024
Assets
Interest-earning assets:
Loans receivable, including loans held for sale $ 5,743,008  $ 5,752,477  $ (9,469) -0.2  %
Taxable investment securities 1,343,541  1,382,064  (38,523) -2.8  %
Tax-exempt investment securities 13,737  14,614  (877) -6.0  %
Other interest-earning assets 128,257  125,155  3,102  2.5  %
Total interest-earning assets 7,228,543  7,274,310  (45,767) -0.6  %
Non-interest-earning assets 466,537  577,411  (110,874) -19.2  %
Total assets $ 7,695,080  $ 7,851,721  $ (156,641) -2.0  %
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand $ 2,310,521  $ 2,378,831  $ (68,310) -2.9  %
Savings 631,622  635,226  (3,604) -0.6  %
Certificates of deposit 1,613,798  1,705,513  (91,715) -5.4  %
Total interest-bearing deposits 4,555,941  4,719,570  (163,629) -3.5  %
Borrowings:
Federal Home Loan Bank advances 1,507,192  1,428,801  78,391  5.5  %
Other borrowings 228,461  210,989  17,472  8.3  %
Total borrowings 1,735,653  1,639,790  95,863  5.8  %
Total interest-bearing liabilities 6,291,594  6,359,360  (67,766) -1.1  %
Non-interest-bearing liabilities:
Non-interest-bearing deposits 589,438  581,870  7,568  1.3  %
Other non-interest-bearing liabilities 62,978  65,709  (2,731) -4.2  %
Total non-interest-bearing liabilities 652,416  647,579  4,837  0.7  %
Total liabilities 6,944,010  7,006,939  (62,929) -0.9  %
Stockholders' equity 751,070  844,782  (93,712) -11.1  %
Total liabilities and stockholders' equity $ 7,695,080  $ 7,851,721  $ (156,641) -2.0  %
Average interest-earning assets to average interest-bearing liabilities 114.89  % 114.39  % 0.50  % 0.4  %
7

Kearny Financial Corp.
Performance Ratio Highlights
(Unaudited)
Three Months Ended Variance
or Change
June 30,
2024		 March 31,
2024
Average yield on interest-earning assets:
Loans receivable, including loans held for sale 4.58  % 4.45  % 0.13  %
Taxable investment securities 4.41  % 4.48  % -0.07  %
Tax-exempt investment securities (1)
 2.32  % 2.32  % —  %
Other interest-earning assets 7.14  % 7.91  % -0.77  %
Total interest-earning assets 4.59  % 4.51  % 0.08  %
Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand 3.06  % 3.08  % -0.02  %
Savings 0.63  % 0.46  % 0.17  %
Certificates of deposit 3.35  % 3.11  % 0.24  %
Total interest-bearing deposits 2.83  % 2.74  % 0.09  %
Borrowings:
Federal Home Loan Bank advances 3.86  % 3.55  % 0.31  %
Other borrowings 5.24  % 5.22  % 0.02  %
Total borrowings 4.04  % 3.77  % 0.27  %
Total interest-bearing liabilities 3.16  % 3.00  % 0.16  %
Interest rate spread (2)
 1.43  % 1.51  % -0.08  %
Net interest margin (3)
 1.84  % 1.89  % -0.05  %
Non-interest income to average assets (annualized) 0.30  % 0.21  % 0.09  %
Non-interest expense to average assets (annualized) 6.58  % 1.48  % 5.10  %
Efficiency ratio (4)
 323.81  % 75.43  % 248.38  %
Return on average assets (annualized) -4.68  % 0.38  % -5.06  %
Return on average equity (annualized) -47.97  % 3.50  % -51.47  %
Return on average tangible equity (annualized) (5)
 -56.69  % 4.68  % -61.37  %
_________________________
(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.

8

Year-to-Year Comparative Financial Analysis
Kearny Financial Corp.
Consolidated Balance Sheets

(Dollars and Shares in Thousands,
Except Per Share Data)		 June 30,
2024		 June 30,
2023		 Variance
or Change		 Variance
or Change Pct.
(Unaudited) (Audited)
Assets
Cash and cash equivalents $ 63,864  $ 70,515  $ (6,651) -9.4  %
Securities available for sale 1,072,833  1,227,729  (154,896) -12.6  %
Securities held to maturity 135,742  146,465  (10,723) -7.3  %
Loans held-for-sale 6,036  9,591  (3,555) -37.1  %
Loans receivable 5,732,787  5,829,421  (96,634) -1.7  %
Less: allowance for credit losses on loans (44,939) (48,734) (3,795) -7.8  %
Net loans receivable 5,687,848  5,780,687  (92,839) -1.6  %
Premises and equipment 44,940  48,309  (3,369) -7.0  %
Federal Home Loan Bank of New York stock 80,300  71,734  8,566  11.9  %
Accrued interest receivable 29,521  28,133  1,388  4.9  %
Goodwill 113,525  210,895  (97,370) -46.2  %
Core deposit intangible 1,931  2,457  (526) -21.4  %
Bank owned life insurance 297,874  292,825  5,049  1.7  %
Deferred income tax assets, net 50,339  51,973  (1,634) -3.1  %
Other real estate owned —  12,956  (12,956) -100.0  %
Other assets 98,708  110,546  (11,838) -10.7  %
Total assets $ 7,683,461  $ 8,064,815  $ (381,354) -4.7  %
Liabilities
Deposits:
Non-interest-bearing $ 598,366  $ 609,999  $ (11,633) -1.9  %
Interest-bearing 4,559,757  5,019,184  (459,427) -9.2  %
Total deposits 5,158,123  5,629,183  (471,060) -8.4  %
Borrowings 1,709,789  1,506,812  202,977  13.5  %
Advance payments by borrowers for taxes 17,409  18,338  (929) (5.1) %
Other liabilities 44,569  41,198  3,371  8.2  %
Total liabilities 6,929,890  7,195,531  (265,641) (3.7) %
Stockholders' Equity
Common stock 644  659  (15) -2.3  %
Paid-in capital 493,680  503,332  (9,652) -1.9  %
Retained earnings 343,326  457,611  (114,285) -25.0  %
Unearned ESOP shares (20,916) (22,862) 1,946  -8.5  %
Accumulated other comprehensive loss (63,163) (69,456) 6,293  -9.1  %
Total stockholders' equity 753,571  869,284  (115,713) -13.3  %
Total liabilities and stockholders' equity $ 7,683,461  $ 8,064,815  $ (381,354) -4.7  %
Consolidated capital ratios
Equity to assets 9.81  % 10.78  % -0.97  %
Tangible equity to tangible assets (1)
 8.43  % 8.35  % 0.08  %
Share data
Outstanding shares 64,434 65,864 (1,430) -2.2  %
Book value per share $ 11.70  $ 13.20  $ (1.50) -11.4  %
Tangible book value per share (2)
 $ 9.90  $ 9.96  $ (0.06) -0.6  %
_________________________
(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.
9

Kearny Financial Corp.
Consolidated Statements of Income

Year Ended
(Dollars and Shares in Thousands,
Except Per Share Data)		 June 30,
2024		 June 30,
2023		 Variance
or Change		 Variance
or Change Pct.
(Unaudited) (Audited)
Interest income
Loans $ 256,007  $ 233,147  $ 22,860  9.8  %
Taxable investment securities 63,313  54,855  8,458  15.4  %
Tax-exempt investment securities 336  694  (358) -51.6  %
Other interest-earning assets 9,212  5,028  4,184  83.2  %
Total interest income 328,868  293,724  35,144  12.0  %
Interest expense
Deposits 122,414  78,163  44,251  56.6  %
Borrowings 63,860  39,696  24,164  60.9  %
Total interest expense 186,274  117,859  68,415  58.0  %
Net interest income 142,594  175,865  (33,271) -18.9  %
Provision for credit losses 6,226  2,486  3,740  150.4  %
Net interest income after provision for credit losses 136,368  173,379  (37,011) -21.3  %
Non-interest income
Fees and service charges 2,609  3,106  (497) -16.0  %
Loss on sale and call of securities (18,135) (15,227) (2,908) 19.1  %
Loss on sale of loans (282) (1,645) 1,363  -82.9  %
Loss on sale of real estate owned (974) (139) (835) 600.7  %
Income from bank owned life insurance 9,076  8,645  431  5.0  %
Electronic banking fees and charges 2,357  1,759  598  34.0  %
Other income 3,356  6,252  (2,896) -46.3  %
Total non-interest income (1,993) 2,751  (4,744) -172.4  %
Non-interest expense
Salaries and employee benefits 69,220  75,589  (6,369) -8.4  %
Net occupancy expense of premises 11,033  12,036  (1,003) -8.3  %
Equipment and systems 15,223  14,577  646  4.4  %
Advertising and marketing 1,396  2,122  (726) -34.2  %
Federal deposit insurance premium 5,980  5,133  847  16.5  %
Directors' compensation 1,506  1,364  142  10.4  %
Goodwill impairment 97,370  —  97,370  —  %
Other expense 13,423  12,930  493  3.8  %
Total non-interest expense 215,151  123,751  91,400  73.9  %
(Loss) income before income taxes (80,776) 52,379  (133,155) -254.2  %
Income taxes 5,891  11,568  (5,677) -49.1  %
Net (loss) income $ (86,667) $ 40,811  $ (127,478) -312.4  %
Net (loss) income per common share (EPS)
Basic $ (1.39) $ 0.63  $ (2.02)
Diluted $ (1.39) $ 0.63  $ (2.02)
Dividends declared
Cash dividends declared per common share $ 0.44  $ 0.44  $ — 
Cash dividends declared $ 27,618  $ 28,651  $ (1,033)
Dividend payout ratio (31.9) % 70.2  % (102.1) %
Weighted average number of common shares outstanding
Basic 62,444 64,804 (2,360)
Diluted 62,444 64,804 (2,360)
10

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)

Year Ended
(Dollars in Thousands) June 30,
2024		 June 30,
2023		 Variance
or Change		 Variance
or Change Pct.
Assets
Interest-earning assets:
Loans receivable, including loans held for sale $ 5,752,496  $ 5,827,123  $ (74,627) -1.3  %
Taxable investment securities 1,438,200  1,532,961  (94,761) -6.2  %
Tax-exempt investment securities 14,718  30,332  (15,614) -51.5  %
Other interest-earning assets 131,019  115,390  15,629  13.5  %
Total interest-earning assets 7,336,433  7,505,806  (169,373) -2.3  %
Non-interest-earning assets 541,859  563,131  (21,272) -3.8  %
Total assets $ 7,878,292  $ 8,068,937  $ (190,645) -2.4  %
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand $ 2,308,893  $ 2,349,802  $ (40,909) -1.7  %
Savings 662,981  896,651  (233,670) -26.1  %
Certificates of deposit 1,778,682  2,083,864  (305,182) -14.6  %
Total interest-bearing deposits 4,750,556  5,330,317  (579,761) -10.9  %
Borrowings:
Federal Home Loan Bank Advances 1,458,941  1,101,658  357,283  32.4  %
Other borrowings 184,768  57,468  127,300  221.5  %
Total borrowings 1,643,709  1,159,126  484,583  41.8  %
Total interest-bearing liabilities 6,394,265  6,489,443  (95,178) -1.5  %
Non-interest-bearing liabilities:
Non-interest-bearing deposits 595,266  644,543  (49,277) -7.6  %
Other non-interest-bearing liabilities 64,444  59,593  4,851  8.1  %
Total non-interest-bearing liabilities 659,710  704,136  (44,426) -6.3  %
Total liabilities 7,053,975  7,193,579  (139,604) -1.9  %
Stockholders' equity 824,317  875,358  (51,041) -5.8  %
Total liabilities and stockholders' equity $ 7,878,292  $ 8,068,937  $ (190,645) -2.4  %
Average interest-earning assets to average interest-bearing liabilities 114.73  % 115.66  % (0.93) % -0.8  %
11

Kearny Financial Corp.
Performance Ratio Highlights
(Unaudited)

Year Ended
June 30,
2024		 June 30,
2023		 Variance
or Change
Average yield on interest-earning assets:
Loans receivable, including loans held for sale 4.45  % 4.00  % 0.45  %
Taxable investment securities 4.40  % 3.58  % 0.82  %
Tax-exempt investment securities (1)
 2.28  % 2.29  % -0.01  %
Other interest-earning assets 7.03  % 4.36  % 2.67  %
Total interest-earning assets 4.48  % 3.91  % 0.57  %
Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand 2.91  % 1.73  % 1.18  %
Savings 0.50  % 0.37  % 0.13  %
Certificates of deposit 2.92  % 1.64  % 1.28  %
Total interest-bearing deposits 2.58  % 1.47  % 1.11  %
Borrowings:
Federal Home Loan Bank Advances 3.70  % 3.43  % 0.27  %
Other borrowings 5.36  % 3.41  % 1.95  %
Total borrowings 3.89  % 3.42  % 0.47  %
Total interest-bearing liabilities 2.91  % 1.82  % 1.09  %
Interest rate spread (2)
 1.57  % 2.09  % -0.52  %
Net interest margin (3)
 1.94  % 2.34  % -0.40  %
Non-interest income to average assets (0.03) % 0.03  % -0.06  %
Non-interest expense to average assets 2.73  % 1.53  % 1.20  %
Efficiency ratio (4)
 153.02  % 69.28  % 83.74  %
Return on average assets (1.10) % 0.51  % -1.61  %
Return on average equity (10.51) % 4.66  % -15.17  %
Return on average tangible equity (5)
 (13.64) % 6.17  % -19.81  %
_________________________
(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.

12

Five-Quarter Financial Trend Analysis
Kearny Financial Corp.
Consolidated Balance Sheets
(Dollars and Shares in Thousands,
Except Per Share Data)		 June 30,
2024		 March 31,
2024		 December 31,
2023		 September 30,
2023		 June 30,
2023
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Assets
Cash and cash equivalents $ 63,864  $ 71,027  $ 73,860  $ 57,219  $ 70,515 
Securities available for sale 1,072,833  1,098,655  1,144,175  1,215,633  1,227,729 
Securities held to maturity 135,742  139,643  141,959  143,730  146,465 
Loans held-for-sale 6,036  4,117  14,030  3,934  9,591 
Loans receivable 5,732,787  5,758,336  5,745,629  5,736,049  5,829,421 
Less: allowance for credit losses on loans (44,939) (44,930) (44,867) (46,872) (48,734)
Net loans receivable 5,687,848  5,713,406  5,700,762  5,689,177  5,780,687 
Premises and equipment 44,940  45,053  45,928  46,868  48,309 
Federal Home Loan Bank stock 80,300  81,347  83,372  81,509  71,734 
Accrued interest receivable 29,521  31,065  30,258  29,766  28,133 
Goodwill 113,525  210,895  210,895  210,895  210,895 
Core deposit intangible 1,931  2,057  2,189  2,323  2,457 
Bank owned life insurance 297,874  296,493  256,064  294,491  292,825 
Deferred income taxes, net 50,339  47,225  46,116  56,500  51,973 
Other real estate owned —  —  11,982  12,956  12,956 
Other assets 98,708  100,989  136,242  129,865  110,546 
Total assets $ 7,683,461  $ 7,841,972  $ 7,897,832  $ 7,974,866  $ 8,064,815 
Liabilities
Deposits:
Non-interest-bearing $ 598,366  $ 586,089  $ 584,130  $ 595,141  $ 609,999 
Interest-bearing 4,559,757  4,622,961  4,735,500  4,839,027  5,019,184 
Total deposits 5,158,123  5,209,050  5,319,630  5,434,168  5,629,183 
Borrowings 1,709,789  1,722,178  1,667,055  1,626,933  1,506,812 
Advance payments by borrowers for taxes 17,409  17,387  16,742  16,907  18,338 
Other liabilities 44,569  44,279  46,427  47,324  41,198 
Total liabilities 6,929,890  6,992,894  7,049,854  7,125,332  7,195,531 
Stockholders' Equity
Common stock 644  644  645  652  659 
Paid-in capital 493,680  493,187  493,297  497,269  503,332 
Retained earnings 343,326  440,308  439,755  460,464  457,611 
Unearned ESOP shares (20,916) (21,402) (21,889) (22,375) (22,862)
Accumulated other comprehensive loss (63,163) (63,659) (63,830) (86,476) (69,456)
Total stockholders' equity 753,571  849,078  847,978  849,534  869,284 
Total liabilities and stockholders' equity $ 7,683,461  $ 7,841,972  $ 7,897,832  $ 7,974,866  $ 8,064,815 
Consolidated capital ratios
Equity to assets 9.81  % 10.83  % 10.74  % 10.65  % 10.78  %
Tangible equity to tangible assets (1)
 8.43  % 8.34  % 8.26  % 8.20  % 8.35  %
Share data
Outstanding shares 64,434 64,437 64,445 65,132 65,864
Book value per share $ 11.70  $ 13.18  $ 13.16  $ 13.04  $ 13.20 
Tangible book value per share (2)
 $ 9.90  $ 9.87  $ 9.85  $ 9.77  $ 9.96 
_________________________
(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.
13

Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)
(Dollars in Thousands) June 30,
2024		 March 31,
2024		 December 31,
2023		 September 30,
2023		 June 30,
2023
Loan portfolio composition:
Commercial loans:
Multi-family mortgage $ 2,645,851  $ 2,645,195  $ 2,651,274  $ 2,699,151  $ 2,761,775 
Nonresidential mortgage 948,075  965,539  947,287  946,801  968,574 
Commercial business 142,747  147,326  144,134  149,229  146,861 
Construction 209,237  229,457  221,933  230,703  226,609 
Total commercial loans 3,945,910  3,987,517  3,964,628  4,025,884  4,103,819 
One- to four-family residential mortgage 1,756,051  1,741,644  1,746,065  1,689,051  1,700,559 
Consumer loans:
Home equity loans 44,104  42,731  43,517  42,896  43,549 
Other consumer 2,685  3,198  2,728  2,644  2,549 
Total consumer loans 46,789  45,929  46,245  45,540  46,098 
Total loans, excluding yield adjustments 5,748,750  5,775,090  5,756,938  5,760,475  5,850,476 
Unaccreted yield adjustments (15,963) (16,754) (11,309) (24,426) (21,055)
Loans receivable, net of yield adjustments 5,732,787  5,758,336  5,745,629  5,736,049  5,829,421 
Less: allowance for credit losses on loans (44,939) (44,930) (44,867) (46,872) (48,734)
Net loans receivable $ 5,687,848  $ 5,713,406  $ 5,700,762  $ 5,689,177  $ 5,780,687 
Asset quality:
Nonperforming assets:
Accruing loans - 90 days and over past due $ —  $ —  $ —  $ —  $ — 
Nonaccrual loans 39,882  39,546  28,089  37,912  42,627 
Total nonperforming loans 39,882  39,546  28,089  37,912  42,627 
Nonaccrual loans held-for-sale —  —  9,700  —  — 
Other real estate owned —  —  11,982  12,956  12,956 
Total nonperforming assets $ 39,882  $ 39,546  $ 49,771  $ 50,868  $ 55,583 
Nonperforming loans (% total loans) 0.70  % 0.69  % 0.49  % 0.66  % 0.73  %
Nonperforming assets (% total assets) 0.52  % 0.50  % 0.63  % 0.64  % 0.69  %
Classified loans $ 118,700  $ 115,772  $ 94,676  $ 98,616  $ 93,526 
Allowance for credit losses on loans (ACL):
ACL to total loans 0.78  % 0.78  % 0.78  % 0.81  % 0.83  %
ACL to nonperforming loans 112.68  % 113.61  % 159.73  % 123.63  % 114.33  %
Net charge-offs $ 3,518  $ 286  $ 4,110  $ 2,107  $ 82 
Average net charge-off rate (annualized) 0.25  % 0.02  % 0.29  % 0.15  % 0.01  %

14

Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)
(Dollars in Thousands) June 30,
2024		 March 31,
2024		 December 31,
2023		 September 30,
2023		 June 30,
2023
Funding composition:
Deposits:
Non-interest-bearing deposits $ 598,367  $ 586,089  $ 584,130  $ 595,141  $ 609,999 
Interest-bearing demand 2,308,915  2,349,032  2,347,262  2,236,573  2,252,912 
Savings 643,481  630,456  646,182  689,163  748,721 
Certificates of deposit (retail) 1,199,127  1,235,261  1,283,676  1,300,382  1,377,028 
Certificates of deposit (brokered and listing service) 408,234  408,212  458,380  612,909  640,523 
Interest-bearing deposits 4,559,757  4,622,961  4,735,500  4,839,027  5,019,184 
Total deposits 5,158,124  5,209,050  5,319,630  5,434,168  5,629,183 
Borrowings:
Federal Home Loan Bank advances 1,534,789  1,457,178  1,432,055  1,456,933  1,281,812 
Overnight borrowings 175,000  265,000  235,000  170,000  225,000 
Total borrowings 1,709,789  1,722,178  1,667,055  1,626,933  1,506,812 
Total funding $ 6,867,913  $ 6,931,228  $ 6,986,685  $ 7,061,101  $ 7,135,995 
Loans as a % of deposits 110.4  % 109.8  % 107.4  % 104.8  % 102.9  %
Deposits as a % of total funding 75.1  % 75.2  % 76.1  % 77.0  % 78.9  %
Borrowings as a % of total funding 24.9  % 24.8  % 23.9  % 23.0  % 21.1  %
Uninsured deposits:
Uninsured deposits (reported) (1)
 $ 1,772,623  $ 1,760,740  $ 1,813,122  $ 1,734,288  $ 1,771,416 
Uninsured deposits (adjusted) (2)
 $ 764,447  $ 718,026  $ 694,510  $ 683,265  $ 710,377 
_________________________
(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.
15

Kearny Financial Corp.
Consolidated Statements of Income (Loss)
(Unaudited)
Three Months Ended
(Dollars and Shares in Thousands,
Except Per Share Data)		 June 30,
2024		 March 31,
2024		 December 31,
2023		 September 30,
2023		 June 30,
2023
Interest income
Loans $ 65,819  $ 64,035  $ 63,384  $ 62,769  $ 62,044 
Taxable investment securities 14,802  15,490  16,756  16,265  15,736 
Tax-exempt investment securities 80  85  84  87  91 
Other interest-earning assets 2,289  2,475  2,401  2,047  1,821 
Total interest income 82,990  82,085  82,625  81,168  79,692 
Interest expense
Deposits 32,187  32,320  30,340  27,567  26,226 
Borrowings 17,527  15,446  16,446  14,441  13,286 
Total interest expense 49,714  47,766  46,786  42,008  39,512 
Net interest income 33,276  34,319  35,839  39,160  40,180 
Provision for (reversal of) credit losses 3,527  349  2,105  245  (306)
Net interest income after provision for (reversal of) credit losses 29,749  33,970  33,734  38,915  40,486 
Non-interest income
Fees and service charges 580  657  624  748  699 
Loss on sale and call of securities —  —  (18,135) —  — 
Gain (loss) on sale of loans 111  (712) 104  215  199 
Loss on sale of other real estate owned —  —  (974) —  (139)
Income from bank owned life insurance 3,209  3,039  1,162  1,666  1,605 
Electronic banking fees and charges 1,130  464  396  367  399 
Other income 776  755  811  1,014  903 
Total non-interest income 5,806  4,203  (16,012) 4,010  3,666 
Non-interest expense
Salaries and employee benefits 17,266  16,911  17,282  17,761  17,315 
Net occupancy expense of premises 2,738  2,863  2,674  2,758  2,862 
Equipment and systems 3,785  3,823  3,814  3,801  3,511 
Advertising and marketing 480  387  301  228  231 
Federal deposit insurance premium 1,532  1,429  1,495  1,524  1,455 
Directors' compensation 360  360  393  393  345 
Goodwill impairment 97,370  —  —  —  — 
Other expense 3,020  3,286  3,808  3,309  3,042 
Total non-interest expense 126,551  29,059  29,767  29,774  28,761 
(Loss) income before income taxes (90,996) 9,114  (12,045) 13,151  15,391 
Income taxes (917) 1,717  1,782  3,309  3,378 
Net (loss) income $ (90,079) $ 7,397  $ (13,827) $ 9,842  $ 12,013 
Net (loss) income per common share (EPS)
Basic $ (1.45) $ 0.12  $ (0.22) $ 0.16  $ 0.19 
Diluted $ (1.45) $ 0.12  $ (0.22) $ 0.16  $ 0.19 
Dividends declared
Cash dividends declared per common share $ 0.11  $ 0.11  $ 0.11  $ 0.11  $ 0.11 
Cash dividends declared $ 6,903  $ 6,844  $ 6,882  $ 6,989  $ 7,007 
Dividend payout ratio -7.7  % 92.5  % -49.8  % 71.0  % 58.3  %
Weighted average number of common shares outstanding
Basic 62,254 62,205 62,299 63,014 63,667
Diluted 62,254 62,211 62,299 63,061 63,667
16

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)
Three Months Ended
(Dollars in Thousands) June 30,
2024		 March 31,
2024		 December 31,
2023		 September 30,
2023		 June 30,
2023
Assets
Interest-earning assets:
Loans receivable, including loans held-for-sale $ 5,743,008  $ 5,752,477  $ 5,726,321  $ 5,788,074  $ 5,932,541 
Taxable investment securities 1,343,541  1,382,064  1,509,165  1,516,393  1,529,582 
Tax-exempt investment securities 13,737  14,614  15,025  15,483  16,346 
Other interest-earning assets 128,257  125,155  139,740  130,829  128,158 
Total interest-earning assets 7,228,543  7,274,310  7,390,251  7,450,779  7,606,627 
Non-interest-earning assets 466,537  577,411  554,335  568,723  556,962 
Total assets $ 7,695,080  $ 7,851,721  $ 7,944,586  $ 8,019,502  $ 8,163,589 
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand $ 2,310,521  $ 2,378,831  $ 2,301,169  $ 2,245,831  $ 2,321,120 
Savings 631,622  635,226  664,926  719,508  774,854 
Certificates of deposit 1,613,798  1,705,513  1,824,316  1,968,512  2,057,818 
Total interest-bearing deposits 4,555,941  4,719,570  4,790,411  4,933,851  5,153,792 
Borrowings:
Federal Home Loan Bank advances 1,507,192  1,428,801  1,513,497  1,386,473  1,374,316 
Other borrowings 228,461  210,989  142,283  158,098  100,055 
Total borrowings 1,735,653  1,639,790  1,655,780  1,544,571  1,474,371 
Total interest-bearing liabilities 6,291,594  6,359,360  6,446,191  6,478,422  6,628,163 
Non-interest-bearing liabilities:
Non-interest-bearing deposits 589,438  581,870  597,294  612,251  608,765 
Other non-interest-bearing liabilities 62,978  65,709  62,387  66,701  64,970 
Total non-interest-bearing liabilities 652,416  647,579  659,681  678,952  673,735 
Total liabilities 6,944,010  7,006,939  7,105,872  7,157,374  7,301,898 
Stockholders' equity 751,070  844,782  838,714  862,128  861,691 
Total liabilities and stockholders' equity $ 7,695,080  $ 7,851,721  $ 7,944,586  $ 8,019,502  $ 8,163,589 
Average interest-earning assets to average
 interest-bearing liabilities
 114.89  % 114.39  % 114.65  % 115.01  % 114.76  %
17

Kearny Financial Corp.
Performance Ratio Highlights
Three Months Ended
June 30,
2024		 March 31,
2024		 December 31,
2023		 September 30,
2023		 June 30,
2023
Average yield on interest-earning assets:
Loans receivable, including loans held-for-sale 4.58  % 4.45  % 4.43  % 4.34  % 4.18  %
Taxable investment securities 4.41  % 4.48  % 4.44  % 4.29  % 4.12  %
Tax-exempt investment securities (1)
 2.32  % 2.32  % 2.25  % 2.25  % 2.23  %
Other interest-earning assets 7.14  % 7.91  % 6.87  % 6.26  % 5.68  %
Total interest-earning assets 4.59  % 4.51  % 4.47  % 4.36  % 4.19  %
Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand 3.06  % 3.08  % 2.91  % 2.58  % 2.38  %
Savings 0.63  % 0.46  % 0.44  % 0.47  % 0.48  %
Certificates of deposit 3.35  % 3.11  % 2.82  % 2.49  % 2.24  %
Total interest-bearing deposits 2.83  % 2.74  % 2.53  % 2.23  % 2.04  %
Borrowings:
Federal Home Loan Bank advances 3.86  % 3.55  % 3.82  % 3.54  % 3.51  %
Other borrowings 5.24  % 5.22  % 5.65  % 5.46  % 4.89  %
Total borrowings 4.04  % 3.77  % 3.97  % 3.74  % 3.60  %
Total interest-bearing liabilities 3.16  % 3.00  % 2.90  % 2.59  % 2.38  %
Interest rate spread (2)
 1.43  % 1.51  % 1.57  % 1.77  % 1.81  %
Net interest margin (3)
 1.84  % 1.89  % 1.94  % 2.10  % 2.11  %
Non-interest income to average assets (annualized) 0.30  % 0.21  % -0.81  % 0.20  % 0.18  %
Non-interest expense to average assets (annualized) 6.58  % 1.48  % 1.50  % 1.49  % 1.41  %
Efficiency ratio (4)
 323.81  % 75.43  % 150.13  % 68.97  % 65.60  %
Return on average assets (annualized) -4.68  % 0.38  % -0.70  % 0.49  % 0.59  %
Return on average equity (annualized) -47.97  % 3.50  % -6.59  % 4.57  % 5.58  %
Return on average tangible equity (annualized) (5)
 -56.69  % 4.68  % -8.84  % 6.07  % 7.41  %
_________________________
(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.
18

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)		 June 30,
2024		 March 31,
2024		 December 31,
2023		 September 30,
2023		 June 30,
2023
Adjusted net income:
Net (loss) income (GAAP) $ (90,079) $ 7,397  $ (13,827) $ 9,842  $ 12,013 
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 $ 5,596  $ 7,397  $ 5,335  $ 9,842  $ 12,013 
Calculation of pre-tax, pre-provision net revenue:
Net (loss) income (GAAP) $ (90,079) $ 7,397  $ (13,827) $ 9,842  $ 12,013 
Adjustments to net income (GAAP):
Provision for income taxes (917) 1,717  1,782  3,309  3,378 
Provision for (reversal of) credit losses 3,527  349  2,105  245  (306)
Pre-tax, pre-provision net revenue (non-GAAP) $ (87,469) $ 9,463  $ (9,940) $ 13,396  $ 15,085 
Adjusted earnings per share:
Weighted average common shares - basic 62,254 62,205 62,299 63,014 63,667
Weighted average common shares - diluted 62,330 62,211 62,367 63,061 63,667
Earnings per share - basic (GAAP) $ (1.45) $ 0.12  $ (0.22) $ 0.16  $ 0.19 
Earnings per share - diluted (GAAP) $ (1.45) $ 0.12  $ (0.22) $ 0.16  $ 0.19 
Adjusted earnings per share - basic (non-GAAP) $ 0.09  $ 0.12  $ 0.09  $ 0.16  $ 0.19 
Adjusted earnings per share - diluted (non-GAAP) $ 0.09  $ 0.12  $ 0.09  $ 0.16  $ 0.19 
Pre-tax, pre-provision net revenue per share:
Pre-tax, pre-provision net revenue per share - basic
  (non-GAAP)
 $ (1.41) $ 0.15  $ (0.16) $ 0.21  $ 0.24 
Pre-tax, pre-provision net revenue per share - diluted
  (non-GAAP)
 $ (1.41) $ 0.15  $ (0.16) $ 0.21  $ 0.24 
Adjusted return on average assets:
Total average assets $ 7,695,080  $ 7,851,721  $ 7,944,586  $ 8,019,502  $ 8,163,589 
Return on average assets (GAAP) -4.68  % 0.38  % -0.70  % 0.49  % 0.59  %
Adjusted return on average assets (non-GAAP) 0.29  % 0.38  % 0.27  % 0.49  % 0.59  %
Adjusted return on average equity:
Total average equity $ 751,070  $ 844,782  $ 838,714  $ 862,128  $ 861,691 
Return on average equity (GAAP) -47.97  % 3.50  % -6.59  % 4.57  % 5.58  %
Adjusted return on average equity (non-GAAP) 2.98  % 3.50  % 2.54  % 4.57  % 5.58  %
19

Kearny Financial Corp.
Reconciliation of GAAP to Non-GAAP
(Unaudited)
Three Months Ended
(Dollars and Shares in Thousands,
Except Per Share Data)		 June 30,
2024		 March 31,
2024		 December 31,
2023		 September 30,
2023		 June 30,
2023
Adjusted return on average tangible equity:
Total average equity $ 751,070  $ 844,782  $ 838,714  $ 862,128  $ 861,691 
Less: average goodwill (113,525) (210,895) (210,895) (210,895) (210,895)
Less: average other intangible assets (2,006) (2,138) (2,277) (2,411) (2,544)
Total average tangible equity $ 635,539  $ 631,749  $ 625,542  $ 648,822  $ 648,252 
Return on average tangible equity (non-GAAP) -56.69  % 4.68  % -8.84  % 6.07  % 7.41  %
Adjusted return on average tangible equity (non-GAAP) 3.52  % 4.68  % 3.41  % 6.07  % 7.41  %
Adjusted non-interest expense ratio:
Non-interest expense (GAAP) $ 126,551  $ 29,059  $ 29,767  $ 29,774  $ 28,761 
Non-recurring transactions:
Goodwill impairment (97,370) —  —  —  — 
Non-interest expense (non-GAAP) $ 29,181  $ 29,059  $ 29,767  $ 29,774  $ 28,761 
Non-interest expense ratio (GAAP) 6.58  % 1.48  % 1.50  % 1.49  % 1.41  %
Adjusted non-interest expense ratio (non-GAAP) 1.52  % 1.48  % 1.50  % 1.49  % 1.41  %
Adjusted efficiency ratio:
Non-interest expense (non-GAAP) $ 29,181  $ 29,059  $ 29,767  $ 29,774  $ 28,761 
Net interest income (GAAP) $ 33,276  $ 34,319  $ 35,839  $ 39,160  $ 40,180 
Total non-interest income (GAAP) 5,806  4,203  (16,012) 4,010  3,666 
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) $ 39,474  $ 38,522  $ 38,535  $ 43,170  $ 43,846 
Efficiency ratio (GAAP) 323.81  % 75.43  % 150.13  % 68.97  % 65.60  %
Adjusted efficiency ratio (non-GAAP) 73.92  % 75.43  % 77.25  % 68.97  % 65.60  %

20

Kearny Financial Corp.
Reconciliation of GAAP to Non-GAAP
(Unaudited)
Year Ended
(Dollars and Shares in Thousands,
Except Per Share Data)		 June 30,
2024		 June 30,
2023
Adjusted net income:
Net (loss) income (GAAP) $ (86,667) $ 40,811 
Non-recurring transactions - net of tax:
Branch consolidation expenses and impairment charges —  568 
Net effect of sale and call of securities 12,876  10,811 
Net effect of sale of other assets —  (2,081)
Severance expense from workforce realignment —  538 
Net effect of bank-owned life insurance contract restructure 6,678  — 
Goodwill impairment 95,283  —  — 
Adjusted net income $ 28,170  $ 50,647 
Calculation of pre-tax, pre-provision net revenue:
Net (loss) income (GAAP) (86,667) 40,811 
Adjustments to net income (GAAP):
Provision for income taxes $ 5,891  $ 11,568 
Provision for (reversal of) credit losses 6,226  2,486 
Pre-tax, pre-provision net revenue (non-GAAP) (74,550) 54,865 
Adjusted earnings per share:
Weighted average common shares - basic 62,444 64,804
Weighted average common shares - diluted 62,444 64,804
Earnings per share - basic (GAAP) $ (1.39) $ 0.63 
Earnings per share - diluted (GAAP) $ (1.39) $ 0.63 
Adjusted earnings per share - basic (non-GAAP) $ 0.45  $ 0.78 
Adjusted earnings per share - diluted (non-GAAP) $ 0.45  $ 0.78 
Pre-tax, pre-provision net revenue per share:
Pre-tax, pre-provision net revenue per share - basic (non-GAAP) $ (1.19) $ 0.85 
Pre-tax, pre-provision net revenue per share - diluted (non-GAAP) $ (1.19) $ 0.85 
Adjusted return on average assets:
Total average assets $ 7,878,292  $ 8,068,937 
Return on average assets (GAAP) -1.10  % 0.51  %
Adjusted return on average assets (non-GAAP) 0.36  % 0.63  %
Adjusted return on average equity:
Total average equity $ 824,317  $ 875,358 
Return on average equity (GAAP) -10.51  % 4.66  %
Adjusted return on average equity (non-GAAP) 3.42  % 5.79  %
Adjusted return on average tangible equity:
Total average equity $ 824,317  $ 875,358 
Less: average goodwill (186,685) (210,895)
Less: average other intangible assets (2,209) (2,757)
Total average tangible equity $ 635,423  $ 661,706 
Return on average tangible equity (non-GAAP) -13.64  % 6.17  %
Adjusted return on average tangible equity (non-GAAP) 4.43  % 7.65  %
21

Kearny Financial Corp.
Reconciliation of GAAP to Non-GAAP
(Unaudited)
Year Ended
(Dollars in Thousands) June 30,
2024		 June 30,
2023
Adjusted non-interest expense ratio:
Non-interest expense (GAAP) $ 215,151  $ 123,751 
Non-routine transactions:
Branch consolidation expenses and impairment charges —  (800)
Severance expense from workforce realignment —  (757)
Goodwill impairment (97,370) — 
Non-interest expense (non-GAAP) $ 117,781  $ 122,194 
Non-interest expense ratio (GAAP) 2.73  % 1.53  %
Adjusted non-interest expense ratio (non-GAAP) 1.50  % 1.51  %
Adjusted efficiency ratio:
Non-interest expense (non-GAAP) $ 117,781  $ 122,194 
Net interest income (GAAP) $ 142,594  $ 175,865 
Total non-interest income (GAAP) (1,993) 2,751 
Non-routine transactions:
Net effect of sale and call of securities 18,135  15,227 
Net effect of sale of other assets —  (2,931)
Net effect of bank-owned life insurance contract restructure 965  — 
Total revenue (non-GAAP) $ 159,701  $ 190,912 
Efficiency ratio (GAAP) 153.02  % 69.28  %
Adjusted efficiency ratio (non-GAAP) 73.75  % 64.01  %
22
EX-99.2 3 krny-20240725xexx992xfin.htm EX-99.2 krny-20240725xexx992xfin
JULY 25, 2024 I N V E S T O R P R E S E N T A T I O N F O U R T H 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. This presentation contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management uses these “non-GAAP” measures in its analysis of the Company’s performance. Management believes these non-GAAP financial measures allow for better comparability of period to period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. A reconciliation of the non-GAAP measures used in this presentation to the most directly comparable GAAP measures is provided in the Appendix to this presentation.

 
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 June 30, 2024. Source: S&P Global Market Intelligence & Company Filings. 3

 
140 Years of Serving our Communities and Clients 4

 
4Q24 Financial Highlights 1 GAAP to Adjusted reconciliation on page 20. 2 Excludes Yield Adjustments. Source: Company Filings. 5 4Q24 Key Takeaways: Recognized non-cash, after-tax goodwill impairment of $95.3 million, which has no impact on our tangible book value, regulatory capital ratios, or liquidity position. Net interest margin compression continues to slow. The performance of our commercial real estate and multifamily portfolios continues to be outstanding, with nonperforming assets having improved by $15.7 million, or 0.17% of assets, from June 30, 2023. Deposit origination efforts including those via our digital channel, have continued to gain traction. Net Income (Loss) GAAP Adjusted1 $(90.1 million) $5.6 million Diluted EPS GAAP Adjusted1 $(1.45) $0.09 Net Interest Income CET-1 Ratio $33.3 million 14.79% Total Assets $7.7 billion Total Deposits Total Loans2 $5.2 billion $5.7 billion

 
Capital Strength Equity Capitalization Level 1 Kearny Financial Corp. (NASDAQ: KRNY) Regulatory Capital Ratios as of June 30, 2024 are preliminary. 2 S&P U.S. Small Cap Banks Index comprised of 241 constituents, based on March 31, 2024 results. 3 Equity to Asset ratio, as of June 30, 2024, was impacted by previously mentioned goodwill impairment. Source: Company Filings. 6 Regulatory Capital Ratios1,2 8.35% 8.20% 8.26% 8.34% 8.43% 10.78% 10.65% 10.74% 10.83% 9.81% 4Q23 1Q24 2Q24 3Q24 4Q24 Tangible Common Equity / Tangible Assets Equity / Assets 9.15% 14.79% 14.79% 15.57% 9.75% 11.68% 11.90% 14.35% Tier 1 Leverage Common Equity Tier 1 Tier 1 Risk-Based Capital Total Risk-Based Capital KRNY S&P US Small Cap Banks 3

 
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 net charge-offs 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 4Q24 Commercial Banks (not among top 100) KRNY Global Financial Crisis Hurricane Sandy COVID-19 Pandemic Cumulative charge-offs for KRNY between 2006 and 4Q24 were minimal, totaling $38.6 million.

 
Diversified Loan Portfolio Loan Composition1 Geographic Distribution2Loan Trend 1 For the quarter ended June 30, 2024. 2 As of June 30, 2024. Source: S&P Global Market Intelligence & Company Filings. 9 ($ millions) 1-4 Family 30.5% Home Equity 0.8% Multi-family 46.1% CRE 16.5% Construction 3.6% C&I 2.5% $1,701 $1,689 $1,746 $1,742 $1,756 $2,762 $2,699 $2,651 $2,645 $2,646 $969 $947 $947 $966 $948 $5,850 $5,760 $5,757 $5,775 $5,749 4Q23 1Q24 2Q24 3Q24 4Q24 1-4 Family Home Equity Multi-family CRE Construction C&I New York 33.8% New Jersey 55.4% Pennsylvania 5.9% Other 4.9% LTV 61.1% QTD Yield on Loans 4.58%

 
Multifamily Loan Portfolio Multifamily Loan Portfolio Composition1 New York City (“NYC”) Multifamily1 Source: Company Filings 1 As of June 30, 2024. 10 Outstanding asset quality over multiple credit cycles Less than half of our Multifamily portfolio is collateralized by properties in NYC Only 6% of our Multifamily portfolio is collateralized by majority or fully rent-regulated NYC properties There is a minimal amount of maturing or repricing NYC Multifamily loans in calendar 2024 and 2025 NYC Multifamily Portfolio: $1.2 billion Average Loan Balance: $3.48 million Weighted Average LTV: 62.4% Nonperforming Loans / Total MF Loans: 0.85% Jul to Dec 2024 Maturity & Repricing: $18.8 million Calendar Year 2025 Maturity & Repricing: $116.0 million Majority NYC Free Market 41.1% Outside NYC 53.3% 100% NYC Rent Regulated 2.2% Majority NYC Rent Regulated 3.4% Total MF $2.6B

 
NYC Multifamily Loan Portfolio 1 As of June 30, 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 66.4% of the Company’s NYC Multifamily portfolio is located in Brooklyn, NY Brooklyn 66.4% Queens 12.6% Manhattan 11.2% Bronx 9.5% Staten Island 0.4% Total NYC MF $1.2 B LTV 62.4% 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 June 30, 2024. 12 CRE Portfolio by Collateral Type1 CRE Loan Geographic Distribution1 Retail 34.7% Mixed Use 28.5% Office 11.2% Industrial 16.6% Specialty & Other 4.6% Medical 4.4% New Jersey 57.1% Brooklyn 9.2% New York (Ex. Brooklyn) 25.8% Pennsylvania 4.9% Other 3.0% Total CRE $0.9 B LTV 52%

 
Office Portfolio 1 As of June 30, 2024. Source: Company Filings. 13 Office Portfolio by Contractual Maturity1 Office Loan Geographic Distribution1 Office Portfolio Profile 11.2% of total CRE portfolio or $106 million Average loan size of $1.6 million ($ millions) $0 $3 $9 $36 $18 $9 $30 $0 $5 $10 $15 $20 $25 $30 $35 $40 2024 2025 2026 2027 2028 2029 2030+ Manhattan 21.9% New York (Ex. Manhattan) 6.2% New Jersey 69.0% Other 2.9% Total Office $106 M LTV 47.8% DSCR 1.9x

 
Asset Quality Metrics Non-Performing Assets / Total Assets Non-Performing Loans1 Allowance for Credit Losses 1 As of June 30, 2024; amounts shown in millions. Source: S&P Global Market Intelligence & Company Filings. 14 NPL's $39.5 MM 0.69% 0.64% 0.63% 0.50% 0.52% 0.45% 0.50% 0.55% 0.60% 0.65% 0.70% 0.75% 4Q23 1Q24 2Q24 3Q24 4Q24 Multi-family $22.7 CRE $9.8 C&I $0.7 1-4 Family $6.7 Net Charge-Offs / Average Loans 0.01% 0.15% 0.29% 0.02% 0.25% -0.10% 0.00% 0.10% 0.20% 0.30% 0.40% 4Q23 1Q24 2Q24 3Q24 4Q24 Increase driven by a single commercial real estate relationship Increase driven by a single C&I relationship $45.3 $45.0 $44.7 $44.7 $44.1 $3.4 $1.9 $0.2 $0.2 $0.9 0.83% 0.81% 0.78% 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 4Q23 1Q24 2Q24 3Q24 4Q24 ACL Balance - Collectively Evaluated ACL Balance - Individually Analyzed ACL to Total Loans Receivable NPL's $39.9 M $ in millions

 
Granular Deposit Franchise 1 For the quarter ended June 30, 2024. 2 As of June 30,2024; 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 23.2% Wholesale CDs 7.9% Savings 12.5% Interest Bearing DDA 44.8% Non-interest Bearing DDA 11.6% ($ millions) Product # of Accounts Balance ($ millions) Average Balance per Account Checking 53,196 $ 2,387 $ 44,873 Savings 31,733 635 20,022 CD 25,406 1,196 47,076 Total Retail Deposits 110,335 $ 4,218 $ 38,233 QTD Cost of Deposits 2.83% $1,377 $1,300 $1,284 $1,235 $1,199 $640 $613 $458 $408 $408 $749 $689 $646 $630 $644 $2,253 $2,237 $2,348 $2,349 $2,309 $610 $595 $584 $586 $598 $5,629 $5,434 $5,320 $5,209 $5,158 4Q23 1Q24 2Q24 3Q24 4Q24 Retail CDs Wholesale CDs Savings Interest Bearing DDA Non-interest Bearing DDA Consumer 62.6% Commercial 22.5% Government 14.9%

 
Liquidity Available for Uninsured Deposits Estimated Uninsured Deposits Analysis2 1 Estimated amount of uninsured deposits reported in June 30, 2024 Call Report. 2 As of June 30, 2024. 16 Available liquidity is 2.4x greater than estimated uninsured deposits (excluding items above) Liquidity Capacity2 Estimated Uninsured Deposit Analysis ($ millions) Estimated Uninsured Deposits 1,772$ Less: Collateralized State & Local Government Deposits (480) Less: Bank's wholly-owned subsidiary & Holding Company Deposits (528) Estimated uninsured deposits excluding items above: 764$ Total Deposits 5,158$ Estimated uninsured deposits, excluding items above, as a % of Total Deposits 14.8% 1 Sources of Liquidity ($ millions) Liquidity Capacity Funding Utilized Available Capacity Internal Sources: Free Securities and other 381$ -$ 381$ External Sources: FRB 482 100 382 FHLB 2,669 1,610 1,059 Total Liquidity 3,532$ 1,710$ 1,822$

 
Investment Securities 1 As of June 30, 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 ≈ 36.9% ($ millions) $1,546 $1,532 $1,524 $1,397 $1,357 4.10% 4.27% 4.42% 4.46% 4.39% 4Q23 1Q24 2Q24 3Q24 4Q24 Corporate Bonds 10.9% CLO 32.3% ABS Student Loans 6.6% Agency MBS 49.1% Municipal Bonds 1.1% 2 QTD Yield on Securities 4.39% AFS 88.8% HTM 11.2% At June 30, 2024, the after-tax net unrecognized loss on securities held-to-maturity was $11.7 million, or 1.84% of tangible equity3

 
Best-in-Class Operating Efficiency 1 Adjusted for non-routine transactions. GAAP to Adjusted reconciliation on page 20 Source: S&P Global Market Intelligence & Company Filings. 18 Adjusted Non-interest Expense to Average Assets1 ($ millions) $68 $74 $75 $96 $114 $130 $131 $120 1 21 41 61 81 101 121 2017 2018 2019 2020 2021 2022 2023 2024 1.8x Deposits per Branch 1.76% 1.73% 1.61% 1.55% 1.62% 1.69% 1.51% 1.50% 1.40% 1.50% 1.60% 1.70% 1.80% 1.90% 2.00% 2017 2018 2019 2020 2021 2022 2023 2024

 
Tech Forward Embedded Throughout the Organization 19

 
Non-GAAP Reconciliation 20 Reconciliation of GAAP to Non-GAAP For the quarter ended For the quarter ended For the quarter ended For the quarter ended For the quarter ended (Dollars and Shares in Thousands, Except Per Share Data) June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 Adjusted net income: Net (loss) income (GAAP) ($90,079) $7,397 ($13,827) $9,842 $12,013 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 $5,596 $7,397 $5,335 $9,842 $12,013 Calculation of pre-tax, pre-provision net revenue: Net (loss) income (GAAP) ($90,079) $7,397 ($13,827) $9,842 $12,013 Adjustments to net income (GAAP): Provision for income taxes ($917) $1,717 $1,782 $3,309 $3,378 Provision for (reversal of) credit losses $3,527 $349 $2,105 $245 ($306) Pre-tax, pre-provision net revenue (non-GAAP) ($87,469) $9,463 ($9,940) $13,396 $15,085 Adjusted earnings per share: Weighted average common shares - basic 62,254 62,205 62,299 63,014 63,667 Weighted average common shares - diluted 62,330 62,211 62,367 63,061 63,667 Earnings per share - basic (GAAP) ($1.45) $0.12 ($0.22) $0.16 $0.19 Earnings per share - diluted (GAAP) ($1.45) $0.12 ($0.22) $0.16 $0.19 Adjusted earnings per share - basic (non-GAAP) $0.09 $0.12 $0.09 $0.16 $0.19 Adjusted earnings per share - diluted (non-GAAP) $0.09 $0.12 $0.09 $0.16 $0.19 Pre-tax, pre-provision net revenue per share: Pre-tax, pre-provision net revenue per share - basic (non-GAAP) ($1.41) $0.15 ($0.16) $0.21 $0.24 Pre-tax, pre-provision net revenue per share - diluted (non-GAAP) ($1.41) $0.15 ($0.16) $0.21 $0.24 Adjusted return on average assets: Total average assets $7,695,080 $7,851,721 $7,944,586 $8,019,502 $8,163,589 Return on average assets (GAAP) -4.68% 0.38% -0.70% 0.49% 0.59% Adjusted return on average assets (non-GAAP) 0.29% 0.38% 0.27% 0.49% 0.59% Adjusted return on average equity: Total average equity $751,070 $844,782 $838,714 $862,128 $861,691 Return on average equity (GAAP) -47.97% 3.50% -6.59% 4.57% 5.58% Adjusted return on average equity (non-GAAP) 2.98% 3.50% 2.54% 4.57% 5.58%