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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________________________
FORM 10-Q
__________________________________________
(Mark One)
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2023
OR
oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________to
Commission File Number 001-37399
__________________________________________
KEARNY FINANCIAL CORP.
(Exact name of registrant as specified in its charter)
__________________________________________
Maryland30-0870244
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification Number)
120 Passaic Ave., Fairfield, New Jersey
07004
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code
973-244-4500
__________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueKRNYThe NASDAQ Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filers,” “accelerated filers,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerxAccelerated filero
Non-accelerated fileroSmaller reporting companyo
Emerging growth companyo
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. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x
The number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: January 31, 2024.
$0.01 par value common stock — 64,436,995 shares outstanding


KEARNY FINANCIAL CORP. AND SUBSIDIARIES
TABLE OF CONTENTS
Page
Number




KEARNY FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In Thousands, Except Share and Per Share Data)
December 31,
2023
June 30,
2023
(Unaudited)
Assets
Cash and amounts due from depository institutions $15,934 $21,795 
Interest-bearing deposits in other banks57,926 48,720 
Cash and cash equivalents73,860 70,515 
Investment securities available for sale (amortized cost of $1,268,632 and $1,383,867, respectively)
1,144,175 1,227,729 
Investment securities held to maturity (fair value of $127,877 and $131,169, respectively)
141,959 146,465 
Loans held-for-sale14,030 9,591 
Loans receivable5,745,629 5,829,421 
Less: allowance for credit losses on loans(44,867)(48,734)
Net loans receivable5,700,762 5,780,687 
Premises and equipment45,928 48,309 
Federal Home Loan Bank (“FHLB”) of New York stock83,372 71,734 
Accrued interest receivable30,258 28,133 
Goodwill210,895 210,895 
Core deposit intangibles2,189 2,457 
Bank owned life insurance256,064 292,825 
Deferred income tax assets, net46,116 51,973 
Other real estate owned11,982 12,956 
Other assets136,242 110,546 
Total Assets $7,897,832 $8,064,815 
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Non-interest-bearing $584,130 $609,999 
Interest-bearing4,735,500 5,019,184 
Total deposits5,319,630 5,629,183 
Borrowings1,667,055 1,506,812 
Advance payments by borrowers for taxes16,742 18,338 
Other liabilities46,427 41,198 
Total Liabilities7,049,854 7,195,531 
Stockholders' Equity
Preferred stock, $0.01 par value, 100,000,000 shares authorized; none issued and outstanding
  
Common stock, $0.01 par value; 800,000,000 shares authorized; 64,445,270 shares and 65,864,075 shares issued and outstanding, respectively
645 659 
Paid-in capital493,297 503,332 
Retained earnings439,755 457,611 
Unearned employee stock ownership plan shares; 2,257,850 shares and 2,358,198 shares, respectively
(21,889)(22,862)
Accumulated other comprehensive loss(63,830)(69,456)
Total Stockholders' Equity847,978 869,284 
Total Liabilities and Stockholders' Equity$7,897,832 $8,064,815 
See notes to unaudited consolidated financial statements.
- 1 -

KEARNY FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(In Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended
December 31,
Six Months Ended
December 31,
2023202220232022
Interest Income
Loans$63,384 $57,996 $126,153 $110,931 
Taxable investment securities16,756 13,221 33,021 23,660 
Tax-exempt investment securities84 219 171 504 
Other interest-earning assets2,401 1,005 4,448 1,766 
Total Interest Income82,625 72,441 163,793 136,861 
Interest Expense
Deposits30,340 18,822 57,907 29,691 
Borrowings16,446 8,836 30,887 13,856 
Total Interest Expense46,786 27,658 88,794 43,547 
Net Interest Income35,839 44,783 74,999 93,314 
Provision for credit losses 2,105 1,671 2,350 2,341 
Net Interest Income after Provision for Credit Losses 33,734 43,112 72,649 90,973 
Non-Interest Income
Fees and service charges624 734 1,372 1,497 
Loss on sale and call of securities(18,135)(15,227)(18,135)(15,227)
Gain on sale of loans104 134 319 529 
Loss on write down of other real estate owned(974) (974) 
Income from bank owned life insurance1,162 1,761 2,827 5,459 
Electronic banking fees and charges396 397 763 903 
Other income811 3,723 1,826 4,278 
Total Non-Interest Income(16,012)(8,478)(12,002)(2,561)
Non-Interest Expense
Salaries and employee benefits17,282 19,921 35,043 40,269 
Net occupancy expense of premises2,674 2,987 5,432 6,077 
Equipment and systems3,814 3,867 7,615 7,529 
Advertising and marketing301 731 529 1,478 
Federal deposit insurance premium1,495 1,226 3,019 2,132 
Directors' compensation393 339 786 679 
Other expense3,808 3,579 7,117 6,474 
Total Non-Interest Expense29,767 32,650 59,541 64,638 
(Loss) Income before Income Taxes(12,045)1,984 1,106 23,774 
Income tax expense 1,782 33 5,091 5,288 
Net (Loss) Income$(13,827)$1,951 $(3,985)$18,486 
Net (Loss) Income per Common Share (EPS)
Basic$(0.22)$0.03 $(0.06)$0.28 
Diluted$(0.22)$0.03 $(0.06)$0.28 
Weighted Average Number of Common Shares Outstanding
Basic62,29965,03062,65765,383
Diluted62,29965,03862,65765,393
See notes to unaudited consolidated financial statements.
- 2 -

KEARNY FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In Thousands, Unaudited)
Three Months Ended
December 31,
Six Months Ended
December 31,
2023202220232022
Net (Loss) Income$(13,827)$1,951 $(3,985)$18,486 
Other Comprehensive (Loss) Income, net of tax:
Net unrealized gain (loss) on securities available for sale29,909 977 9,674 (34,202)
Net realized loss on sale and call of securities available for sale12,876 10,811 12,876 10,811 
Fair value adjustments on derivatives(20,129)(4,465)(16,836)10,125 
Benefit plan adjustments(10)(4)(88)(28)
Total Other Comprehensive Income (Loss)22,646 7,319 5,626 (13,294)
Total Comprehensive Income$8,819 $9,270 $1,641 $5,192 
See notes to unaudited consolidated financial statements.
- 3 -

KEARNY FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(In Thousands, Except Per Share Data, Unaudited)
Common Stock Paid-In
Capital
Retained
Earnings
Unearned
ESOP
Shares
Accumulated
Other
Comprehensive
Loss
Total
Shares Amount
Balance - September 30, 202267,938$680 $520,245 $454,710 $(24,321)$(76,340)$874,974 
Net income— — 1,951 — — 1,951 
Other comprehensive income, net of income tax — — — — 7,319 7,319 
ESOP shares committed to be released (50 shares)
— 16 — 487 — 503 
Stock repurchases(550)(6)(5,739)— — — (5,745)
Stock-based compensation expense— 810 — — — 810 
Cash dividends declared ($0.11 per common share)
— — (7,172)— — (7,172)
Balance - December 31, 202267,388$674 $515,332 $449,489 $(23,834)$(69,021)$872,640 
Common Stock Paid-In
Capital
Retained
Earnings
Unearned
ESOP
Shares
Accumulated
Other
Comprehensive
Loss
Total
Shares Amount
Balance - June 30, 202268,666$687 $528,396 $445,451 $(24,807)$(55,727)$894,000 
Net income— — 18,486 — — 18,486 
Other comprehensive loss, net of income tax— — — — (13,294)(13,294)
ESOP shares committed to be released (100 shares)
— 106 — 973 — 1,079 
Stock repurchases(1,310)(14)(14,424)— — — (14,438)
Issuance of stock under stock benefit plans611 (1)— — —  
Stock-based compensation expense— 1,596 — — — 1,596 
Cancellation of shares issued for restricted stock awards(29)— (341)— — — (341)
Cash dividends declared ($0.22 per common share)
— — (14,448)— — (14,448)
Balance - December 31, 202267,388$674 $515,332 $449,489 $(23,834)$(69,021)$872,640 
- 4 -

KEARNY FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Continued)
(In Thousands, Except Per Share Data, Unaudited)
Common Stock Paid-In
Capital
Retained
Earnings
Unearned
ESOP
Shares
Accumulated
Other
Comprehensive
Loss
Total
Shares Amount
Balance - September 30, 202365,132$652 $497,269 $460,464 $(22,375)$(86,476)$849,534 
Net loss— — (13,827)— — (13,827)
Other comprehensive income, net of income tax— — — — 22,646 22,646 
ESOP shares committed to be released (50 shares)
— (95)— 486 — 391 
Stock repurchases(687)(7)(4,766)— — — (4,773)
Stock-based compensation expense— 889 — — — 889 
Cash dividends declared ($0.11 per common share)
— — (6,882)— — (6,882)
Balance - December 31, 202364,445$645 $493,297 $439,755 $(21,889)$(63,830)$847,978 

Common Stock Paid-In
Capital
Retained
Earnings
Unearned
ESOP
Shares
Accumulated
Other
Comprehensive
Loss
Total
Shares Amount
Balance - June 30, 202365,864$659 $503,332 $457,611 $(22,862)$(69,456)$869,284 
Net loss— — (3,985)— — (3,985)
Other comprehensive income, net of income tax— — — — 5,626 5,626 
ESOP shares committed to be released (100 shares)
— (202)— 973 — 771 
Stock repurchases(1,505)(15)(11,225)— — — (11,240)
Issuance of stock under stock benefit plans1331 (1)— — —  
Stock-based compensation expense— 1,792 — — — 1,792 
Cancellation of shares issued for restricted stock awards(47)— (399)— — — (399)
Cash dividends declared ($0.22 per common share)
— — (13,871)— — (13,871)
Balance - December 31, 202364,445 $645 $493,297 $439,755 $(21,889)$(63,830)$847,978 
See notes to unaudited consolidated financial statements.
- 5 -

KEARNY FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands, Unaudited)
Six Months Ended
December 31,
20232022
Cash Flows from Operating Activities:
Net (loss) income$(3,985)$18,486 
Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of premises and equipment2,426 2,931 
Net accretion of yield adjustments(1,299)(3,352)
Deferred income taxes3,638 3,536 
Amortization of intangible assets268 288 
Accretion of benefit plans’ unrecognized net gain(124)(39)
Provision for credit losses 2,350 2,341 
Loss on write-down of other real estate owned974  
Loans originated for sale(32,812)(56,456)
Proceeds from sale of mortgage loans held-for-sale39,446 75,492 
Gain on sale of mortgage loans held-for-sale, net(319)(474)
Realized loss on sale/call of investment securities available for sale18,135 15,227 
Realized gain on sale of loans receivable (55)
Realized gain on disposition of premises and equipment(11)(2,886)
Increase in cash surrender value of bank owned life insurance(2,827)(5,459)
ESOP and stock-based compensation expense2,563 2,675 
Increase in interest receivable(2,125)(6,902)
Increase in other assets(8,745)(5,511)
(Decrease) increase in interest payable(296)6,268 
Increase (decrease) in other liabilities1,889 (10,053)
Net Cash Provided by Operating Activities19,146 36,057 
Cash Flows from Investing Activities:
Purchases of:
Investment securities available for sale(64,000)(166,483)
Investment securities held to maturity(300)(40,398)
Proceeds from:
Repayments/calls/maturities of investment securities available for sale57,430 70,793 
Repayments/calls/maturities of investment securities held to maturity4,740 4,855 
Sales of investment securities available for sale104,083 105,199 
Purchase of loans(49,652)(656)
Net decrease (increase) in loans receivable125,769 (583,893)
Proceeds from sale of loans receivable 706 
Purchase of interest rate contracts(887)(758)
Deletions (additions) to premises and equipment(34)(668)
Proceeds from death benefit of bank owned life insurance277 4,963 
Purchase of bank owned life insurance(5,000) 
Proceeds from cash settlement of premises and equipment 3,480 
Purchase of FHLB stock(35,388)(64,638)
Redemption of FHLB stock23,750 42,760 
Net Cash Provided by (Used in) Investing Activities160,788 (624,738)
See notes to unaudited consolidated financial statements.
- 6 -

KEARNY FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(In Thousands, Unaudited)
Six Months Ended
December 31,
20232022
Cash Flows from Financing Activities:
Net (decrease) increase in deposits(309,532)109,294 
Repayment of term FHLB advances(3,375,000)(2,865,000)
Proceeds from term FHLB advances3,525,000 3,470,000 
Net increase (decrease) in other short-term borrowings10,000 (123,000)
Net (decrease) increase in advance payments by borrowers for taxes(1,596)561 
Repurchase and cancellation of common stock of Kearny Financial Corp.(11,240)(14,438)
Cancellation of shares repurchased on vesting to pay taxes(399)(341)
Dividends paid(13,822)(14,350)
Net Cash (Used in) Provided by Financing Activities(176,589)562,726 
Net Increase (Decrease) in Cash and Cash Equivalents3,345 (25,955)
Cash and Cash Equivalents - Beginning70,515 101,615 
Cash and Cash Equivalents - Ending$73,860 $75,660 
Supplemental Disclosures of Cash Flows Information:
Cash paid during the period for:
Income taxes, net of refunds$4,319 $8,318 
Interest$89,090 $37,279 
Non-cash investing and financing activities:
Acquisition of other real estate owned in settlement of loans$ $13,232 
Transfers from loans receivable to loans held-for-sale$10,754 $2,628 
Unsettled surrender of bank owned life insurance policies$44,311 $ 
See notes to unaudited consolidated financial statements.
- 7 -

KEARNY FINANCIAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation
The unaudited consolidated financial statements include the accounts of Kearny Financial Corp. (the “Company”), its wholly-owned subsidiary, Kearny Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries. The Company conducts its business principally through the Bank. Management prepared the unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”), including the elimination of all significant inter-company accounts and transactions during consolidation.
Basis of Presentation
The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include the information or footnotes necessary for a complete presentation of financial condition, income, comprehensive income, changes in stockholders’ equity and cash flows in conformity with GAAP. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the unaudited consolidated financial statements have been included. The results of operations for the six months ended December 31, 2023 are not necessarily indicative of the results that may be expected for the entire fiscal year or any other period.
The data in the Consolidated Statement of Financial Condition at June 30, 2023 was derived from the Company’s 2023 Annual Report on Form 10-K. That data, along with the interim unaudited financial information presented in the Consolidated Statements of Financial Condition, Income, Comprehensive Income, Changes in Stockholders’ Equity and Cash Flows should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company’s 2023 Annual Report on Form 10-K.
The accounting and reporting policies of the Company conform to U.S. GAAP and to general practice within the financial services industry. A discussion of these policies can be found in Note 1, Summary of Significant Accounting Policies, included in the Company’s 2023 Annual Report on Form 10-K. There have been no material changes to the Company’s significant accounting policies since June 30, 2023.
2.    SUBSEQUENT EVENTS
The Company has evaluated events and transactions occurring subsequent to the statement of financial condition date of December 31, 2023, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date this document was filed.
On January 25, 2024, the Company declared a quarterly cash dividend of $0.11 per share, payable on February 21, 2024 to stockholders of record as of February 7, 2024.
3.    RECENT ACCOUNTING PRONOUNCEMENTS
Recently Adopted Accounting Standards
In March 2022, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) to improve the usefulness of information provided to investors about certain loan refinancings, restructurings and writeoffs. ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings by creditors and enhances disclosure requirements for certain modifications made to borrowers experiencing financial difficulty. In addition, ASU 2022-02 requires public business entities to disclose current-period gross writeoffs for financing receivables and net investments in leases by year of origination in the vintage disclosures. For entities that have adopted ASU 2016-13, the amendments in ASU 2022-02 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022.
Effective July 1, 2023, the Company adopted ASU 2022-02. Under ASU 2022-02, the Company assesses all loan modifications to determine whether one is granted to a borrower experiencing financial difficulty, regardless of whether the modified loan terms include a concession. Modifications granted to borrowers experiencing financial difficulty may be in the form of an interest rate reduction, an other-than-insignificant payment delay, a term extension, principal forgiveness or a combination thereof.
The Company adopted ASU 2022-02 on a prospective basis. The adoption of this update did not have a material effect on the Company’s consolidated financial statements. Additional disclosures are included in Note 5 to the consolidated financial statements.
- 8 -

Prior to the adoption of ASU 2022-02, a Troubled Debt Restructuring (“TDR”) occurred when the terms of a loan were modified because of deterioration in the financial condition of the borrower. Modifications could include extension of the repayment terms of the loan, reduced interest rates, or forgiveness of accrued interest and/or principal. For the Company's accounting policy related to TDRs granted prior to the adoption of ASU 2022-02, see “Note 1. Summary of Significant Accounting Policies” included in “Item 8. Financial Statements and Supplementary Data” in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023.
4.    SECURITIES
The following tables present the amortized cost, gross unrealized gains and losses and estimated fair values for available for sale securities and the amortized cost, gross unrecognized gains and losses and estimated fair values for held to maturity securities as of the dates indicated:
December 31, 2023
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Allowance for
Credit Losses
Fair
Value
(In Thousands)
Available for sale:    
Debt securities:    
Asset-backed securities$91,921 $112 $1,373 $ $90,660 
Collateralized loan obligations425,155 1,109 2,131  424,133 
Corporate bonds150,930  18,658  132,272 
Total debt securities668,006 1,221 22,162  647,065 
    
Mortgage-backed securities:    
Residential pass-through securities (1)
442,608 18 83,115  359,511 
Commercial pass-through securities (1)
158,018  20,419  137,599 
Total mortgage-backed securities600,626 18 103,534  497,110 
    
Total securities available for sale$1,268,632 $1,239 $125,696 $ $1,144,175 
___________________________
(1)Government-sponsored enterprises.
June 30, 2023
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Allowance for
Credit Losses
Fair
Value
(In Thousands)
Available for sale:    
Debt securities:    
Asset-backed securities$138,281 $4 $2,115 $ $136,170 
Collateralized loan obligations381,915 268 5,187  376,996 
Corporate bonds159,666  24,648  135,018 
Total debt securities679,862 272 31,950  648,184 
    
Mortgage-backed securities:   
Residential pass-through securities (1)
539,506 2 103,357  436,151 
Commercial pass-through securities (1)
164,499  21,105  143,394 
Total mortgage-backed securities704,005 2 124,462  579,545 
   
Total securities available for sale$1,383,867 $274 $156,412 $ $1,227,729 
___________________________
(1)Government-sponsored enterprises.
- 9 -

December 31, 2023
Amortized
Cost
Gross
Unrecognized
Gains
Gross
Unrecognized
Losses
Allowance for
Credit Losses
Fair
Value
(In Thousands)
Held to maturity:   
Debt securities:    
Obligations of state and political subdivisions$14,885 $1 $155 $ $14,731 
Total debt securities14,885 1 155  14,731 
    
Mortgage-backed securities:    
Residential pass-through securities (1)
114,843 2 11,939  102,906 
Commercial pass-through securities (1)
12,231  1,991  10,240 
Total mortgage-backed securities127,074 2 13,930  113,146 
    
Total securities held to maturity$141,959 $3 $14,085 $ $127,877 
___________________________
(1)Government-sponsored enterprises.
June 30, 2023
Amortized
Cost
Gross
Unrecognized
Gains
Gross
Unrecognized
Losses
Allowance for
Credit Losses
Fair
Value
(In Thousands)
Held to maturity:
Debt securities:
Obligations of state and political subdivisions$16,051 $ $321 $ $15,730 
Total debt securities16,051  321  15,730 
  
Mortgage-backed securities:  
Residential pass-through securities (1)
118,166  12,736  105,430 
Commercial pass-through securities (1)
12,248  2,239  10,009 
Total mortgage-backed securities130,414  14,975  115,439 
  
Total securities held to maturity$146,465 $ $15,296 $ $131,169 
___________________________
(1)Government-sponsored enterprises.
- 10 -

Excluding the balances of mortgage-backed securities, the following tables present the amortized cost and estimated fair values of debt securities available for sale and held to maturity, by contractual maturity, at December 31, 2023:
December 31, 2023
Amortized
Cost
Fair
Value
(In Thousands)
Available for sale debt securities:
Due in one year or less$ $ 
Due after one year through five years31,865 30,781 
Due after five years through ten years375,781 360,118 
Due after ten years260,361 256,166 
Total$668,007 $647,065 
December 31, 2023
Amortized
Cost
Fair
Value
(In Thousands)
Held to maturity debt securities:
Due in one year or less$5,608 $5,572 
Due after one year through five years8,668 8,562 
Due after five years through ten years609 597 
Due after ten years  
Total$14,885 $14,731 
Three Months Ended
December 31,
Six Months Ended
December 31,
2023202220232022
(In Thousands)
Available for sale securities sold:
Proceeds from sales of securities$104,083 $105,199 $104,083 $105,199 
Gross realized losses$(18,135)$(15,227)$(18,135)$(15,227)
Net loss on sales of securities$(18,135)$(15,227)$(18,135)$(15,227)

The carrying value of securities pledged were as follows as of the dates presented below:
December 31,
2023
June 30,
2023
(In Thousands)
Securities pledged:
Pledged to secure public funds on deposit$196,002 $201,239 
Pledged for potential borrowings at the Federal Reserve Bank of New York529,378 529,216 
Total carrying value of securities pledged$725,380 $730,455 
- 11 -

The following tables present the gross unrealized losses on securities and the estimated fair value of the related securities, aggregated by investment category and length of time that securities have been in a continuous unrealized loss position within the available for sale portfolio at December 31, 2023 and June 30, 2023:
December 31, 2023
Less than 12 Months 12 Months or MoreTotal
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Number of SecuritiesFair
Value
Unrealized
Losses
(Dollars in Thousands)
Securities Available for Sale:
Asset-backed securities$19,393 $316 $56,879 $1,057 10$76,272 $1,373 
Collateralized loan obligations43,863 137 269,329 1,994 24313,192 2,131 
Corporate bonds6,858 7 125,414 18,651 28132,272 18,658 
Commercial pass-through securities63,475 1,316 74,124 19,103 9137,599 20,419 
Residential pass-through securities650 2 358,159 83,113 100358,809 83,115 
Total$134,239 $1,778 $883,905 $123,918 171$1,018,144 $125,696 
June 30, 2023
Less than 12 Months12 Months or MoreTotal
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Number of SecuritiesFair
Value
Unrealized
Losses
(Dollars in Thousands)
Securities Available for Sale:
Asset-backed securities$33,833 $129 $98,828 $1,986 14$132,661 $2,115 
Collateralized loan obligations46,903 135 294,813 5,052 26341,716 5,187 
Corporate bonds25,511 1,354 109,507 23,294 31135,018 24,648 
Commercial pass-through securities63,531 1,380 79,863 19,725 12143,394 21,105 
Residential pass-through securities10,520 702 425,170 102,655 108435,690 103,357 
Total$180,298 $3,700 $1,008,181 $152,712 191$1,188,479 $156,412 
- 12 -

The following table presents the gross unrecognized losses on securities and the estimated fair value of the related securities, aggregated by investment category and length of time that securities have been in a continuous unrecognized loss position within the held to maturity portfolio at December 31, 2023 and June 30, 2023:
December 31, 2023
Less than 12 Months12 Months or MoreTotal
Fair
Value
Unrecognized
Losses
Fair
Value
Unrecognized
Losses
Number of SecuritiesFair
Value
Unrecognized
Losses
(Dollars in Thousands)
Securities Held to Maturity:
Obligations of state and political subdivisions$4,120 $23 $9,847 $132 27$13,967 $155 
Commercial pass-through securities  10,240 1,991 110,240 1,991 
Residential pass-through securities  65,826 11,939 865,826 11,939 
Total$4,120 $23 $85,913 $14,062 36$90,033 $14,085 
June 30, 2023
Less than 12 Months12 Months or MoreTotal
Fair
Value
Unrecognized
Losses
Fair
Value
Unrecognized
Losses
Number of SecuritiesFair
Value
Unrecognized
Losses
(Dollars in Thousands)
Securities Held to Maturity:
Obligations of state and political subdivisions$13,642 $268 $2,088 $53 32$15,730 $321 
Commercial pass-through securities  10,009 2,239 110,009 2,239 
Residential pass-through securities38,135 319 67,295 12,417 9105,430 12,736 
Total$51,777 $587 $79,392 $14,709 42$131,169 $15,296 
Available for sale securities are evaluated to determine if a decline in fair value below the amortized cost basis has resulted from a credit loss or from other factors. An impairment related to credit factors would be recorded through an allowance for credit losses. The allowance is limited to the amount by which the security’s amortized cost basis exceeds the fair value. An impairment that has not been recorded through an allowance for credit losses shall be recorded through other comprehensive income, net of applicable taxes. Investment securities will be written down to fair value through the Consolidated Statement of Income (Loss) if management intends to sell, or may be required to sell, the securities before they recover in value. The issuers of these securities continue to make timely principal and interest payments and none of these securities were past due or were placed in nonaccrual status at December 31, 2023. Management believes that the unrealized losses on these securities are a function of changes in market interest rates and credit spreads, not changes in credit quality. No allowance for credit losses was recorded at December 31, 2023 on available for sale securities.
The sale of available for sale securities during the three months ended December 31, 2023 was part of an investment security repositioning. The sale proceeds were utilized for reinvestment into higher yielding loans and investment securities, and for repayment of higher-cost wholesale borrowings. The Company was not required to sell these securities.
At December 31, 2023, the held to maturity securities portfolio consists of agency mortgage-backed securities and obligations of state and political subdivisions. The mortgage-backed securities are issued by U.S. government agencies and are implicitly guaranteed by the U.S. government. The obligations of state and political subdivisions in the portfolio are highly rated by major rating agencies and have a long history of no credit losses. The Company regularly monitors the obligations of state and political subdivisions sector of the market and reviews collectability including such factors as the financial condition of the issuers as well as credit ratings in effect as of the reporting period. No allowance for credit losses was recorded at December 31, 2023 on held to maturity securities.
- 13 -

5.    LOANS RECEIVABLE
The following table sets forth the composition of the Company’s loan portfolio at December 31, 2023 and June 30, 2023:
December 31,
2023
June 30,
2023
(In Thousands)
Commercial loans:
Multi-family mortgage$2,651,274 $2,761,775 
Nonresidential mortgage947,287 968,574 
Commercial business144,134 146,861 
Construction221,933 226,609 
Total commercial loans3,964,628 4,103,819 
One- to four-family residential mortgage1,746,065 1,700,559 
Consumer loans:
Home equity loans43,517 43,549 
Other consumer2,728 2,549 
Total consumer loans46,245 46,098 
Total loans5,756,938 5,850,476 
Unaccreted yield adjustments (1)
(11,309)(21,055)
Total loans receivable, net of yield adjustments$5,745,629 $5,829,421 
___________________________
(1)At December 31, 2023 and June 30, 2023, included a fair value adjustment to the carrying amount of hedged one- to four-family residential mortgage loans.
Past Due Loans
Past due status is based on the contractual payment terms of the loans. The following tables present the payment status of past due loans as of December 31, 2023 and June 30, 2023, by loan segment:
Payment Status
December 31, 2023
30-59 Days60-89 Days90 Days and OverTotal Past DueCurrentTotal
(In Thousands)
Multi-family mortgage$9,357 $ $10,625 $19,982 $2,631,292 $2,651,274 
Nonresidential mortgage488  4,023 4,511 942,776 947,287 
Commercial business4,133 893 646 5,672 138,462 144,134 
Construction    221,933 221,933 
One- to four-family residential mortgage2,554 1,331 4,022 7,907 1,738,158 1,746,065 
Home equity loans96 99 22 217 43,300 43,517 
Other consumer    2,728 2,728 
Total loans$16,628 $2,323 $19,338 $38,289 $5,718,649 $5,756,938 
Payment Status
June 30, 2023
30-59 Days60-89 Days90 Days and OverTotal Past DueCurrentTotal
(In Thousands)
Multi-family mortgage$2,958 $ $10,756 $13,714 $2,748,061 $2,761,775 
Nonresidential mortgage792  8,233 9,025 959,549 968,574 
Commercial business528 16 236 780 146,081 146,861 
Construction    226,609 226,609 
One- to four-family residential mortgage2,019 1,202 3,731 6,952 1,693,607 1,700,559 
Home equity loans25  50 75 43,474 43,549 
Other consumer    2,549 2,549 
Total loans$6,322 $1,218 $23,006 $30,546 $5,819,930 $5,850,476 
- 14 -

Nonperforming Loans
Loans are generally placed on nonaccrual status when contractual payments become 90 or more days past due or when the Company does not expect to receive all principal and interest payments owed substantially in accordance with the terms of the loan agreement, regardless of past due status. Loans that become 90 days past due, but are well secured and in the process of collection, may remain on accrual status. Nonaccrual loans are generally returned to accrual status when all payments due are brought current and the Company expects to receive all remaining principal and interest payments owed substantially in accordance with the terms of the loan agreement. Payments received in cash on nonaccrual loans, including both the principal and interest portions of those payments, are generally applied to reduce the carrying value of the loan. The Company did not recognize interest income on non-accrual loans during the six months ended December 31, 2023 and 2022.
The following tables present information relating to the Company’s nonperforming loans as of December 31, 2023 and June 30, 2023:
Performance Status
December 31, 2023
90 Days and Over Past Due AccruingNonaccrual Loans with Allowance for Credit LossesNonaccrual Loans with no Allowance for Credit LossesTotal NonperformingPerformingTotal
(In Thousands)
Multi-family mortgage$ $1,939 $14,049 $15,988 $2,635,286 $2,651,274 
Nonresidential mortgage  4,335 4,335 942,952 947,287 
Commercial business 814 1 815 143,319 144,134 
Construction    221,933 221,933 
One- to four-family residential mortgage 385 6,519 6,904 1,739,161 1,746,065 
Home equity loans  47 47 43,470 43,517 
Other consumer    2,728 2,728 
Total loans$ $3,138 $24,951 $28,089 $5,728,849 $5,756,938 
Performance Status
June 30, 2023
90 Days and Over Past Due AccruingNonaccrual Loans with Allowance for Credit LossesNonaccrual Loans with no Allowance for Credit LossesTotal NonperformingPerformingTotal
(In Thousands)
Multi-family mortgage$ $5,686 $13,428 $19,114 $2,742,661 $2,761,775 
Nonresidential mortgage 11,815 4,725 16,540 952,034 968,574 
Commercial business 71 181 252 146,609 146,861 
Construction    226,609 226,609 
One- to four-family residential mortgage 1,640 5,031 6,671 1,693,888 1,700,559 
Home equity loans  50 50 43,499 43,549 
Other consumer    2,549 2,549 
Total loans$ $19,212 $23,415 $42,627 $5,807,849 $5,850,476 
Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Effective July 1, 2023, the Company adopted ASU 2022-02, which eliminated the accounting for TDRs while expanding loan modification and vintage disclosure requirements. See Note 3 to the consolidated financial statements for further information.

- 15 -

The following tables presents the amortized cost basis at December 31, 2023 of loan modifications made to borrowers experiencing financial difficulty that were restructured during the three and six months ended December 31, 2023 by type of modification:
Three Months Ended December 31, 2023
Payment DelayTerm ExtensionTotalPercent of Total Class
(Dollars In Thousands)
Multi-family mortgage$2,774 $ $2,774 0.10 %
One- to four-family residential mortgage 45 45 0.00 %
Home equity loans 25 25 0.06 %
Total$2,774 $70 $2,844 0.06 %

Six Months Ended December 31, 2023
Payment DelayTerm ExtensionTotalPercent of Total Class
(Dollars In Thousands)
Multi-family mortgage$2,774 $ $2,774 0.10 %
Commercial business45  45 0.03 %
One- to four-family residential mortgage489 45 534 0.03 %
Home equity loans 25 25 0.06 %
Total$3,308 $70 $3,378 0.07 %

No modifications involved forgiveness of principal or interest rate reductions. There were no commitments to lend additional funds to borrowers experiencing financial difficulty whose terms have been restructured at December 31, 2023.
All loans to borrowers experiencing financial difficulty that have been modified during the three months ended December 31, 2023 were current to their contractual payments as of December 31, 2023. During the six months ended December 31, 2023 (since adoption of ASU 2022-02), one residential mortgage loan with a carrying value of $490,000 was modified and subsequently defaulted on payment. For restructured loans, a subsequent payment default is defined in terms of delinquency, when a principal or interest payment is 90 days past due or classified into non-accrual status during the reporting period.
Troubled Debt Restructured Loans prior to the adoption of ASU 2022-02
Prior to the adoption of ASU 2022-02, the Company classified certain loans as TDRs when credit terms to a borrower in financial difficulty were modified, in accordance with ASC 310-40. With the adoption of ASU 2022-02 the Company has ceased to recognize or measure for new TDRs, but those existing at June 30, 2023 will remain until settled.
At June 30, 2023 the Company had TDRs totaling $17.4 million. The allowance for credit losses associated with these TDRs totaled $274,000 as of June 30, 2023.
- 16 -

The following table presents total TDRs at June 30, 2023:
June 30, 2023
AccrualNon-accrualTotal
# of LoansAmount# of LoansAmount# of LoansAmount
(Dollars In Thousands)
Commercial loans:
Multi-family mortgage$ 2$5,400 2$5,400 
Nonresidential mortgage3170 2700 5870 
Commercial business63,197  63,197 
Construction   
Total commercial loans93,367 46,100 139,467 
One- to four-family residential mortgage396,752 4774 437,526 
Consumer loans:
Home equity loans6368  6368 
Total54$10,487 8$6,874 62$17,361 
As of December 31, 2023, there were no significant commitments to lend additional funds to borrowers whose loans had been restructured in a TDR.
The following table presents information regarding TDRs that occurred during the three and six months ended December 31, 2022:
Three Months Ended December 31, 2022
# of LoansPre-
modification
Recorded
Investment
Post-
modification
Recorded
Investment
(Dollars In Thousands)
Commercial business1$7 $7 
One- to four-family residential mortgage1273 270 
Total2$280 $277 
Six Months Ended December 31, 2022
# of LoansPre-
modification
Recorded
Investment
Post-
modification
Recorded
Investment
(Dollars In Thousands)
Commercial business1 $7 $7 
One- to four-family residential mortgage2708 705 
Home equity loans135 35 
Total 4$750 $747 
During the three and six months ended December 31, 2022, there were charge-offs of $5,000 and $15,000, respectively, related to TDRs. During the three and six months ended December 31, 2022, there were two TDR defaults totaling $170,000.
Loan modifications generally involve a reduction in interest rates and/or extension of maturity dates and also may include step up interest rates in their modified terms which will impact their weighted average yield in the future. The loans which qualified as TDRs during the three and six months ended December 31, 2022, capitalized prior past due amounts and modified the repayment terms.
- 17 -

Individually Analyzed Loans
Individually analyzed loans include loans which do not share similar risk characteristics with other loans. Loans previously modified as TDRs and loan modifications made to borrowers experiencing financial difficulty will generally be evaluated for individual impairment, however, after a period of sustained repayment performance which permits the credit to be returned to accrual status, the loans would generally be removed from individual impairment analysis and returned to its corresponding pool. As of December 31, 2023, the carrying value of individually analyzed loans, including loans acquired with deteriorated credit quality that were individually analyzed, totaled $28.1 million, of which $19.9 million were considered collateral dependent.
For collateral dependent loans where management has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and repayment of the loan is to be provided substantially through the operation or sale of the collateral, the allowance for credit losses is measured based on the difference between the fair value of the collateral, less costs to sell, and the amortized cost basis of the loan as of the measurement date. See Note 12 for additional disclosure regarding fair value of individually analyzed collateral dependent loans.
The following table presents the carrying value and related allowance of collateral dependent individually analyzed loans at the dates indicated:
December 31, 2023June 30, 2023
Carrying ValueRelated AllowanceCarrying ValueRelated Allowance
(In Thousands)
Commercial loans:
Multi-family mortgage$13,213 $35 $19,114 $326 
Nonresidential mortgage (1)
4,022  16,207 3,001 
Total commercial loans17,235 35 35,321 3,327 
One- to four-family residential mortgage (2)
2,635  2,875  
Consumer loans:
Home equity loans (2)
20    
Total$19,890 $35 $38,196 $3,327 
___________________________
(1)Secured by income-producing nonresidential property.
(2)Secured by one- to four-family residential properties.
Credit Quality Indicators
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually to classify the loans as to credit risk. The Company uses the following definitions for risk ratings:
Pass – Loans that are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner.
Special Mention – Loans which do not currently expose the Company to a sufficient degree of risk to warrant an adverse classification but have some credit deficiencies or other potential weaknesses.
Substandard – Loans which are inadequately protected by the paying capacity and net worth of the obligor or the collateral pledged, if any. Substandard assets include those characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.
Doubtful – Loans which have all of the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses present make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values.
Loss – Loans which are considered uncollectible or of so little value that their continuance as assets is not warranted.
- 18 -

The following table presents the risk category of loans and current period gross charge-offs as of December 31, 2023 by loan segment and vintage year:
Term Loans by Origination Year for Fiscal Years ended June 30,
20242023202220212020PriorRevolving LoansTotal
(In Thousands)
Multi-family mortgage:
Pass$ $600,028 $955,665 $218,580 $202,206 $627,429 $ $2,603,908 
Special Mention     6,562  6,562 
Substandard   9,681  31,123  40,804 
Doubtful        
Total multi-family mortgage 600,028 955,665 228,261 202,206 665,114  2,651,274 
Multi-family current period gross charge-offs354 354 
Nonresidential mortgage:
Pass23,888 107,076 207,213 90,901 51,173 439,953 100 920,304 
Special Mention     11,271  11,271 
Substandard   876  14,836  15,712 
Doubtful        
Total nonresidential mortgage23,888 107,076 207,213 91,777 51,173 466,060 100 947,287 
Nonresidential current period gross charge-offs5,722 5,722 
Commercial business:
Pass4,323 9,548 26,708 20,230 6,832 8,748 58,601 134,990 
Special Mention  1,428   1,798  3,226 
Substandard   3,563 182 1,971 202 5,918 
Doubtful        
Total commercial business4,323 9,548 28,136 23,793 7,014 12,517 58,803 144,134 
Commercial current period gross charge-offs336 11 347 
Construction loans:
Pass7,768 39,693 41,296 115,593 7,995 3,853 5,735 221,933 
Special Mention        
Substandard        
Doubtful        
Total construction loans7,768 39,693 41,296 115,593 7,995 3,853 5,735 221,933 
Residential mortgage:
Pass115,046 189,082 443,771 473,953 78,719 434,754  1,735,325 
Special Mention     1,822  1,822 
Substandard  532   8,386  8,918 
Doubtful        
Total residential mortgage115,046 189,082 444,303 473,953 78,719 444,962  1,746,065 
Residential current period gross charge-offs37 37 
Home equity loans:
Pass907 6,226 2,369 389 1,119 8,645 23,502 43,157 
Special Mention      99 99 
Substandard     261  261 
Doubtful        
Total home equity loans907 6,226 2,369 389 1,119 8,906 23,601 43,517 
Other consumer loans
Pass458 236 228 112 486 1,085 40 2,645 
Special Mention        
Substandard      1 1 
Doubtful      82 82 
Other consumer loans458 236 228 112 486 1,085 123 2,728 
Total loans$152,390 $951,889 $1,679,210 $933,878 $348,712 $1,602,497 $88,362 $5,756,938 
Total current period gross charge-offs$ $ $ $ $336 $6,124 $ $6,460 
- 19 -

The following table presents the risk category of loans as of June 30, 2023 by loan segment and vintage year:
Term Loans by Origination Year for Fiscal Years ended June 30,
20232022202120202019PriorRevolving LoansTotal
(In Thousands)
Multi-family mortgage:
Pass$603,260 $954,554 $213,482 $198,969 $226,929 $510,485 $ $2,707,679 
Special Mention    6,006 6,647  12,653 
Substandard  9,809  9,432 22,202  41,443 
Doubtful        
Total multi-family mortgage603,260 954,554 223,291 198,969 242,367 539,334  2,761,775 
Nonresidential mortgage:
Pass109,725 220,443 83,032 51,933 59,197 414,742 6,000 945,072 
Special Mention     378  378 
Substandard  708  919 21,497  23,124 
Doubtful        
Total nonresidential mortgage109,725 220,443 83,740 51,933 60,116 436,617 6,000 968,574 
Commercial business:
Pass10,364 28,644 25,304 7,875 1,731 8,776 59,031 141,725 
Special Mention   47 176 2,456 371 3,050 
Substandard   395 60 1,385 246 2,086 
Doubtful        
Total commercial business10,364 28,644 25,304 8,317 1,967 12,617 59,648 146,861 
Construction loans:
Pass25,070 36,389 143,086 12,275 2,961 1,093 5,735 226,609 
Special Mention        
Substandard        
Doubtful        
Total construction loans25,070 36,389 143,086 12,275 2,961 1,093 5,735 226,609 
Residential mortgage:
Pass195,521 454,504 491,460 80,431 45,741 422,472  1,690,129 
Special Mention    1,168 425  1,593 
Substandard 542   80 8,215  8,837 
Doubtful        
Total residential mortgage195,521 455,046 491,460 80,431 46,989 431,112  1,700,559 
Home equity loans:
Pass7,682 2,567 607 1,264 2,478 7,280 21,384 43,262 
Special Mention        
Substandard     287  287 
Doubtful        
Total home equity loans7,682 2,567 607 1,264 2,478 7,567 21,384 43,549 
Other consumer loans
Pass367 247 110 494 302 912 42 2,474 
Special Mention        
Substandard        
Doubtful      75 75 
Other consumer loans367 247 110 494 302 912 117 2,549 
Total loans$951,989 $1,697,890 $967,598 $353,683 $357,180 $1,429,252 $92,884 $5,850,476 
- 20 -

Mortgage Loans in Foreclosure
The Company may obtain physical possession of one- to four-family real estate collateralizing a residential mortgage loan or nonresidential real estate collateralizing a nonresidential mortgage loan via foreclosure or through an in-substance repossession. As of December 31, 2023, the Company held one nonresidential property with a carrying value of $12.0 million in other real estate owned that was acquired through foreclosure on a nonresidential mortgage loan. As of that same date, the Company held four commercial mortgage loans with aggregate carrying values totaling $8.1 million which were in the process of foreclosure. As of June 30, 2023, the Company held one nonresidential property with a carrying value of $13.0 million in other real estate owned that was acquired through foreclosure on a nonresidential mortgage loan. As of that same date, the Company held three residential mortgage loans with aggregate carrying values totaling $950,000 and six commercial mortgage loans with aggregate carrying values totaling $9.2 million which were in the process of foreclosure.
6.    ALLOWANCE FOR CREDIT LOSSES
Allowance for Credit Losses on Loans Receivable
The following tables present the balance of the allowance for credit losses at December 31, 2023 and June 30, 2023. The balance of the allowance for credit losses is based on an expected loss methodology, referred to as the “CECL” methodology. The tables identify the valuation allowances attributable to specifically identified impairments on individually analyzed loans, including those acquired with deteriorated credit quality, as well as valuation allowances for impairments on loans collectively evaluated. The tables include the underlying balance of loans receivable applicable to each category as of those dates.
Allowance for Credit Losses
December 31, 2023
Loans
acquired with
deteriorated
credit quality
individually
analyzed
Loans
acquired with
deteriorated
credit quality
collectively
evaluated
Loans individually
analyzed
Loans collectively
evaluated
Total allowance for credit losses
(In Thousands)
Multi-family mortgage$ $ $35 $24,427 $24,462 
Nonresidential mortgage 38  5,850 5,888 
Commercial business 42 106 1,145 1,293 
Construction   1,171 1,171 
One- to four-family residential mortgage 85 13 11,555 11,653 
Home equity loans   330 330 
Other consumer   70 70 
Total loans$ $165 $154 $44,548 $44,867 
Balance of Loans Receivable
December 31, 2023
Loans
acquired with
deteriorated
credit quality
individually
analyzed
Loans
acquired with
deteriorated
credit quality
collectively
evaluated
Loans individually
analyzed
Loans collectively
evaluated
Total loans
(In Thousands)
Multi-family mortgage$ $ $15,988 $2,635,286 $2,651,274 
Nonresidential mortgage313 2,269 4,022 940,683 947,287 
Commercial business 4,774 815 138,545 144,134 
Construction 5,735  216,198 221,933 
One- to four-family residential mortgage1,452 3,432 5,452 1,735,729 1,746,065 
Home equity loans25  22 43,470 43,517 
Other consumer   2,728 2,728 
Total loans$1,790 $16,210 $26,299 $5,712,639 $5,756,938 
Unaccreted yield adjustments(11,309)
Loans receivable, net of yield adjustments$5,745,629 
- 21 -

Allowance for Credit Losses
June 30, 2023
Loans
acquired with
deteriorated
credit quality
individually
analyzed
Loans
acquired with
deteriorated
credit quality
collectively
evaluated
Loans individually
analyzed
Loans collectively
evaluated
Total allowance for credit losses
(In Thousands)
Multi-family mortgage$ $ $326 $26,036 $26,362 
Nonresidential mortgage 70 3,001 5,882 8,953 
Commercial business 9 20 1,411 1,440 
Construction   1,336 1,336 
One- to four-family residential mortgage3 132 70 10,032 10,237 
Home equity loans   338 338 
Other consumer   68 68 
Total loans$3 $211 $3,417 $45,103 $48,734 
Balance of Loans Receivable
June 30, 2023
Loans
acquired with
deteriorated
credit quality
individually
analyzed
Loans
acquired with
deteriorated
credit quality
collectively
evaluated
Loans individually
analyzed
Loans collectively
evaluated
Total loans
(In Thousands)
Multi-family mortgage$ $ $19,114 $2,742,661 $2,761,775 
Nonresidential mortgage333 3,562 16,207 948,472 968,574 
Commercial business 4,237 252 142,372 146,861 
Construction 5,735  220,874 226,609 
One- to four-family residential mortgage570 4,433 6,101 1,689,455 1,700,559 
Home equity loans25  25 43,499 43,549 
Other consumer   2,549 2,549 
Total loans$928 $17,967 $41,699 $5,789,882 $5,850,476 
Unaccreted yield adjustments(21,055)
Loans receivable, net of yield adjustments$5,829,421 
The following tables present the activity in the allowance for credit losses on loans for the three and six months ended December 31, 2023 and 2022.
Changes in the Allowance for Credit Losses
Three Months Ended December 31, 2023
Balance at
September 30, 2023
Charge-offs RecoveriesProvision for
(reversal of)
credit losses
Balance at
December 31, 2023
(In Thousands)
Multi-family mortgage$25,590 $(354)$ $(774)$24,462 
Nonresidential mortgage7,437 (3,689)11 2,129 5,888 
Commercial business1,413 (158)4 34 1,293 
Construction1,317   (146)1,171 
One- to four-family residential mortgage10,703 (37)113 874 11,653 
Home equity loans342   (12)330 
Other consumer70    70 
Total loans$46,872 $(4,238)$128 $2,105 $44,867 

- 22 -

Changes in the Allowance for Credit Losses
Six Months Ended December 31, 2023
Balance at
June 30, 2023
Charge-offs RecoveriesProvision for
(reversal of)
credit losses
Balance at
December 31, 2023
(In Thousands)
Multi-family mortgage$26,362 $(354)$ $(1,546)$24,462 
Nonresidential mortgage8,953 (5,722)120 2,537 5,888 
Commercial business1,440 (347)10 190 1,293 
Construction1,336   (165)1,171 
One- to four-family residential mortgage10,237 (37)113 1,340 11,653 
Home equity loans338   (8)330 
Other consumer68   2 70 
Total loans$48,734 $(6,460)$243 $2,350 $44,867 
Changes in the Allowance for Credit Losses
Three Months Ended December 31, 2022
Balance at
September 30, 2022
Charge-offs RecoveriesProvision for
(reversal of)
credit losses
Balance at
December 31, 2022
(In Thousands)
Multi-family mortgage$26,246 $(395)$ $1,647 $27,498 
Nonresidential mortgage9,152 (5) (554)8,593 
Commercial business1,972 (15)5 (143)1,819 
Construction1,120   81 1,201 
One- to four-family residential mortgage8,801   554 9,355 
Home equity loans244   95 339 
Other consumer78  3 (9)72 
Total loans$47,613 $(415)$8 $1,671 $48,877 
Changes in the Allowance for Credit Losses
Six Months Ended December 31, 2022
Balance at June 30, 2022Charge-offs Recoveries(Reversal of)
provision for
credit losses
Balance at
December 31, 2022
(In Thousands)
Multi-family mortgage$25,321 $(395)$ $2,572 $27,498 
Nonresidential mortgage10,590 (15) (1,982)8,593 
Commercial business1,792 (133)17 143 1,819 
Construction1,486   (285)1,201 
One- to four-family residential mortgage7,540   1,815 9,355 
Home equity loans245   94 339 
Other consumer84  4 (16)72 
Total loans$47,058 $(543)$21 $2,341 $48,877 
Allowance for Credit Losses on Off Balance Sheet Commitments
The following table presents the activity in the allowance for credit losses on off balance sheet commitments recorded in other non-interest expense for the three and six months ended December 31, 2023 and 2022:
Three Months Ended
December 31,
Six Months Ended
December 31,
2023202220232022
(In Thousands)(In Thousands)
Balance at beginning of the period$667 $753 $741 $1,041 
Provision for (reversal of) credit losses(100)66 (174)(222)
Balance at end of the period$567 $819 $567 $819 
- 23 -

7.    DEPOSITS
Deposits at December 31, 2023 and June 30, 2023 are summarized as follows:
December 31,
2023
June 30,
2023
(In Thousands)
Non-interest-bearing demand$584,130 $609,999 
Interest-bearing demand2,347,262 2,252,912 
Savings646,182 748,721 
Certificates of deposits1,742,056 2,017,551 
Total deposits$5,319,630 $5,629,183 
8.    BORROWINGS
Borrowings at December 31, 2023 and June 30, 2023 consisted of the following:
December 31,
2023
June 30,
2023
(In Thousands)
FHLB advances$1,432,055 $1,281,812 
Overnight borrowings (1)
235,000 225,000 
Total borrowings$1,667,055 $1,506,812 
___________________________
(1)At December 31, 2023, represented $235.0 million of FHLB overnight line of credit borrowings. At June 30, 2023, represented $125.0 million of FHLB overnight line of credit borrowings and $100.0 million of unsecured overnight borrowings from other financial institutions.
Fixed rate advances from the FHLB of New York mature as follows:
December 31, 2023June 30, 2023
BalanceWeighted
Average
Interest Rate
BalanceWeighted
Average
Interest Rate
(Dollars in Thousands)
By remaining period to maturity:
Less than one year$1,203,500 5.29 %$972,500 5.36 %
One to two years29,000 2.77 103,500 2.68 
Two to three years  6,500 2.82 
Three to four years    
Four to five years200,000 3.98 200,000 3.98 
Greater than five years    
Total advances1,432,500 5.06 %1,282,500 4.92 %
Unamortized fair value adjustments(445)(688)
Total advances, net of fair value adjustments$1,432,055 $1,281,812 
At December 31, 2023, FHLB advances and overnight line of credit borrowings were collateralized by the FHLB capital stock owned by the Bank and mortgage loans with carrying values totaling approximately $4.39 billion. At June 30, 2023, FHLB advances and overnight line of credit borrowings were collateralized by the FHLB capital stock owned by the Bank and mortgage loans with carrying values totaling approximately $4.60 billion.
- 24 -

9.    DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Risk Management Objective of Using Derivatives
The Company uses various financial instruments, including derivatives, to manage its exposure to interest rate risk. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to specific wholesale funding positions and assets.
Fair Values of Derivative Instruments on the Statement of Financial Condition
The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the Statements of Financial Condition as of December 31, 2023 and June 30, 2023:
December 31, 2023
Asset DerivativesLiability Derivatives
LocationFair ValueLocationFair Value
(In Thousands)
Derivatives designated as hedging instruments:
Interest rate contractsOther assets$44,120 Other liabilities$3,448 
Total$44,120 $3,448 

June 30, 2023
Asset DerivativesLiability Derivatives
LocationFair ValueLocationFair Value
(In Thousands)
Derivatives designated as hedging instruments:
Interest rate contractsOther assets$71,624 Other liabilities$ 
Total$71,624 $ 
Cash Flow Hedges of Interest Rate Risk
The Company’s uses derivatives to add stability to interest expense and interest income and to manage its exposure to interest rate movements. The Company has entered into interest rate swaps, interest rate caps and an interest rate floor as part of its interest rate risk management strategy. These interest rate products are designated as cash flow hedges. As of December 31, 2023, the Company had a total of 13 interest rate swaps and caps with a total notional amount of $1.50 billion hedging specific wholesale funding and four interest rate floor with a notional amount of $400.0 million hedging floating-rate available for sale securities.
For derivatives designated as cash flow hedges, the gain or loss on the derivative is recorded in other comprehensive income (loss), net of tax, and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings.
For cash flow hedges on the Company’s wholesale funding positions, amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s hedged variable rate wholesale funding positions. During the three and six months ended December 31, 2023, the Company reclassified $9.4 million and $18.8 million, respectively, as a reduction in interest expense. During the next twelve months, the Company estimates that $26.1 million will be reclassified as a reduction in interest expense.
For cash flow hedges on the Company’s assets, amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest income as interest payments are received on the Company’s hedged variable rate assets. During the three and six months ended December 31, 2023, the Company did not reclassify any amount to interest income. During the next twelve months, the Company estimates that $253,000 will be reclassified as a reduction in interest income.
- 25 -

The table below presents the pre-tax effects of the Company’s derivative instruments designated as cash flow hedges on the Consolidated Statements of Income for the three and six months ended December 31, 2023 and 2022:
Three Months Ended
December 31,
Six Months Ended
December 31,
2023202220232022
(In Thousands)
Amount of (loss) gain recognized in other comprehensive income$(18,987)$(2,183)$(4,878)$19,987 
Amount of gain reclassified from accumulated other comprehensive income to interest expense9,363 4,104 18,834 5,724 
Fair Value Hedges of Interest Rate Risk
The Company is exposed to changes in the fair value of certain of its fixed-rate assets due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. Such derivatives are used to hedge the changes in fair value of certain of its pools of fixed rate assets. As of December 31, 2023, the Company had five interest rate swaps with a notional amount of $675.0 million hedging fixed-rate residential mortgage loans.
For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivatives as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income.
The table below presents the effects of the Company’s derivative instruments designated as fair value hedges on the Consolidated Statements of Income for the three and six months ended December 31, 2023 and December 31, 2022:
Three Months Ended
December 31,
Six Months Ended
December 31,
2023202220232022
(In Thousands)
Gain (loss) on hedged items recorded in interest income on loans$12,126 $(995)$8,006 $(5,028)
(Loss) gain on hedge recorded in interest income on loans(9,383)1,183 (2,733)5,110 
As of December 31, 2023 and June 30, 2023, the following amounts were recorded on the Statement of Financial Condition related to cumulative basis adjustment for fair value hedges:
December 31,
2023
June 30,
2023
(In Thousands)
Loans receivable:
Carrying amount of the hedged assets(1)
$671,569 $663,563 
Fair value hedging adjustment included in the carrying amount of the hedged assets(3,431)(11,437)
___________________________________
(1)This amount includes the amortized cost basis of the closed portfolios of loans receivable used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios anticipated to be outstanding for the designated hedge period. At December 31, 2023 and June 30, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $1.07 billion and $1.10 billion, respectively.
- 26 -

Offsetting Derivatives
The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives in the Consolidated Statements of Financial Condition as of December 31, 2023 and June 30, 2023, respectively. The net amounts presented for derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Consolidated Statements of Financial Condition.
December 31, 2023
Gross Amounts Not Offset
Gross Amount RecognizedGross Amounts Offset Net Amounts PresentedFinancial InstrumentsCash Collateral Received (Posted)Net Amount
(In Thousands)
Assets:
Interest rate contracts$46,190 $(2,070)$44,120 $ $ $44,120 
Total$46,190 $(2,070)$44,120 $ $ $44,120 
Liabilities:
Interest rate contracts$5,518 $(2,070)$3,448 $ $(2,650)$798 
Total$5,518 $(2,070)$3,448 $ $(2,650)$798 
June 30, 2023
Gross Amounts Not Offset
Gross Amount RecognizedGross Amounts Offset Net Amounts PresentedFinancial InstrumentsCash Collateral Received (Posted)Net Amount
(In Thousands)
Assets:
Interest rate contracts$72,418 $(794)$71,624 $ $ $71,624 
Total$72,418 $(794)$71,624 $ $ $71,624 
Liabilities:
Interest rate contracts$794 $(794)$ $ $ $ 
Total$794 $(794)$ $ $ $ 
Credit Risk-Related Contingent Features
The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, then the Company could also be declared in default on its derivative obligations and could be required to terminate its derivative positions with the counterparty. The Company also has agreements with its derivative counterparties that contain a provision where if the Company fails to maintain its status as a well-capitalized institution, then the Company could be required to terminate its derivative positions with the counterparty. At December 31, 2023, none of the Company’s derivatives were in a net liability position. As required under the enforceable master netting arrangement with its derivatives counterparties, as of December 31, 2023 and June 30, 2023, the Company was not required to post financial collateral.
In addition to the derivative instruments noted above, the Company’s pipeline of loans held for sale at December 31, 2023 and June 30, 2023, included $11.0 million and $11.7 million, respectively, of in process loans whose terms included interest rate locks to borrowers, which are considered free-standing derivative instruments whose fair values are not material to the Company’s financial condition or results of operations.
- 27 -

10.    BENEFIT PLANS
Components of Net Periodic Expense
The following table sets forth the aggregate net periodic benefit expense for the Bank’s Benefit Equalization Plan, Postretirement Welfare Plan, Directors’ Consultation and Retirement Plan, Atlas Bank Retirement Income Plan and Supplemental Executive Retirement Plan:
Three Months Ended
December 31,
Six Months Ended
December 31,
Affected Line Item in the Consolidated Statements of Income
2023202220232022
(In Thousands)
Service cost$20 $117 $38 $234 Salaries and employee benefits
Interest cost93 96 184 192 Other expense
Accretion of unrecognized gain(15)(6)(30)(12)Other expense
Expected return on assets(23)(25)(46)(50)Other expense
Net periodic benefit cost$75 $182 $146 $364 
2021 Equity Incentive Plan
During the six months ended December 31, 2023, the Company granted 349,257 restricted stock units (“RSUs”) comprised of 255,062 service-based RSUs and 94,195 performance-based RSUs. The service-based RSUs will vest in three tranches over a period of three years and the performance-based RSUs will cliff vest upon the achievement of performance measures over the three-year period ending June 30, 2026. The number of performance-based RSUs that will vest, if any, will depend on whether, and to what extent, the performance measures are achieved. Common stock will be issued from authorized shares upon the vesting of the RSUs.
11.    INCOME TAXES
The following table presents a reconciliation between the reported income taxes for the periods presented and the income taxes which would be computed by applying the federal income tax rate of 21% to income for the three and six months ended December 31, 2023 and 2022:
Three Months Ended
December 31,
Six Months Ended
December 31,
2023202220232022
(Dollars in Thousands) (Dollars in Thousands)
(Loss) income before income taxes$(12,045)$1,984 $1,106 $23,774 
Statutory federal tax rate21 %21 %21 %21 %
Federal income tax at statutory rate$(2,529)$417 $232 $4,993 
(Reduction) increase in income taxes resulting from:
Tax exempt interest(17)(46)(35)(105)
State tax, net of federal tax effect(966)(124)(188)1,296 
Incentive stock option compensation expense2 3 5 6 
Income from bank-owned life insurance(364)(362)(714)(1,137)
Surrender of bank-owned life insurance polices5,713  5,713  
Other items, net(57)145 78 235 
Total income tax expense$1,782 $33 $5,091 $5,288 
Effective income tax rate(14.79)%1.66 %460.31 %22.24 %
- 28 -

12.    FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:
Level 1:Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
Level 2:Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability or inputs that are derived principally from, or corroborated by, market data by correlation or other means.
Level 3:Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.
Assets and Liabilities Measured on a Recurring Basis:
The following methods and significant assumptions were used to estimate the fair values as of December 31, 2023 and June 30, 2023:
Investment Securities Available for Sale
The Company’s available for sale investment securities are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the securities’ terms and conditions, among other things. From time to time, the Company validates prices supplied by the independent pricing service by comparison to prices obtained from third-party sources or derived using internal models.
Derivatives
The Company has contracted with a third party vendor to provide periodic valuations for its interest rate derivatives to determine the fair value of its interest rate contracts. The vendor utilizes standard valuation methodologies applicable to interest rate derivatives such as discounted cash flow analysis and extensions of the Black-Scholes model. Such valuations are based upon readily observable market data and are therefore considered Level 2 valuations by the Company.
- 29 -

Those assets and liabilities measured at fair value on a recurring basis are summarized below:
December 31, 2023
Quoted
Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
(In Thousands)
Assets:
Debt securities available for sale:
Asset-backed securities$ $90,660 $ $90,660 
Collateralized loan obligations 424,133  424,133 
Corporate bonds 132,272  132,272 
Total debt securities 647,065  647,065 
Mortgage-backed securities available for sale:
Residential pass-through securities 359,511  359,511 
Commercial pass-through securities 137,599  137,599 
Total mortgage-backed securities 497,110  497,110 
Total securities available for sale$ $1,144,175 $ $1,144,175 
Interest rate contracts$ $44,120 $ $44,120 
Total assets$ $1,188,295 $ $1,188,295 
Liabilities:
Interest rate contracts$ $3,448 $ $3,448 
Total liabilities$ $3,448 $ $3,448 
- 30 -

June 30, 2023
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
(In Thousands)
Assets:
Debt securities available for sale:
Obligations of state and political subdivisions$ $ $ $ 
Asset-backed securities 136,170  136,170 
Collateralized loan obligations 376,996  376,996 
Corporate bonds 135,018  135,018 
Total debt securities 648,184  648,184 
Mortgage-backed securities available for sale:
Collateralized mortgage obligations    
Residential pass-through securities 436,151  436,151 
Commercial pass-through securities 143,394  143,394 
Total mortgage-backed securities 579,545  579,545 
Total securities available for sale$ $1,227,729 $ $1,227,729 
Interest rate contracts$ $71,624 $ $71,624 
Total assets$ $1,299,353 $ $1,299,353 
Assets Measured on a Non-Recurring Basis:
The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a non-recurring basis at December 31, 2023 and June 30, 2023:
Individually Analyzed Collateral Dependent Loans
The fair value of collateral dependent loans that are individually analyzed is determined based upon the appraised fair value of the underlying collateral, less costs to sell. Such collateral primarily consists of real estate and, to a lesser extent, other business assets. Management may also adjust appraised values to reflect estimated changes in market values or apply other adjustments to appraised values resulting from its knowledge of the collateral. Internal valuations may be utilized to determine the fair value of other business assets. For non-collateral-dependent loans, management estimates fair value using discounted cash flows based on inputs that are largely unobservable and instead reflect management’s own estimates of the assumptions as a market participant would in pricing such loans. Individually analyzed collateral dependent loans are considered a Level 3 valuation by the Company.
Other Real Estate Owned
Other real estate owned is recorded at estimated fair value, less estimated selling costs when acquired, thus establishing a new cost basis. Fair value is generally based on independent appraisals. These appraisals include adjustments to comparable assets based on the appraisers’ market knowledge and experience. When an asset is acquired, the excess of the loan balance over fair value, less estimated selling costs, is charged to the allowance for credit losses. If further declines in the estimated fair value of the asset occur, a write-down is recorded through expense. The valuation of foreclosed assets is subjective in nature and may be adjusted in the future because of changes in economic conditions. Other real estate owned is considered a Level 3 valuation by the Company.
- 31 -

Those assets measured at fair value on a non-recurring basis are summarized below:
December 31, 2023
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
(In Thousands)
Collateral dependent loans:
Multi-family mortgage$ $ $1,904 $1,904 
Total$ $ $1,904 $1,904 
Other real estate owned, net:
Nonresidential$ $ $11,982 $11,982 
Total$ $ $11,982 $11,982 
June 30, 2023
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
(In Thousands)
Collateral dependent loans:
Residential mortgage$ $ $449 $449 
Multi-family mortgage  7,300 7,300 
Nonresidential mortgage  9,972 9,972 
Total$ $ $17,721 $17,721 
Other real estate owned, net:
Nonresidential$ $ $12,956 $12,956 
Total$ $ $12,956 $12,956 
The following tables present additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized adjusted Level 3 inputs to determine fair value:
December 31, 2023
Fair
Value
Valuation
Techniques
Unobservable
Input
RangeWeighted
Average
(Dollars in Thousands)
Collateral dependent loans:
Multi-family mortgage$1,904 Market valuation of underlying collateral
(1)
Adjustments to reflect current conditions/selling costs
(2)
12.73%
12.73 %
Total$1,904 
Other real estate owned, net:
Nonresidential$11,982 Market valuation of underlying collateral
(1)
Adjustments to reflect current conditions/selling costs
(2)
4.00%4.00 %
Total$11,982 
- 32 -

June 30, 2023
Fair
Value
Valuation
Techniques
Unobservable
Input
RangeWeighted
Average
(Dollars in Thousands)
Collateral dependent loans:
Residential mortgage$449 Market valuation of underlying collateral
(1)
Adjustments to reflect current conditions/selling costs
(2)
6% - 9%
6.93 %
Multi-family mortgage7,300 Market valuation of underlying collateral
(1)
Adjustments to reflect current conditions/selling costs
(2)
6% - 9%
7.78 %
Nonresidential mortgage9,972 Market valuation of underlying collateral
(1)
Adjustments to reflect current conditions/selling costs
(2)
9% - 16%
11.78 %
Total$17,721 
Other real estate owned, net:
Nonresidential$12,956 Market valuation of underlying collateral
(3)
Adjustments to reflect current conditions/selling costs
(2)
4.00%4.00 %
Total$12,956 
___________________________________
(1)The fair value of collateral dependent loans is generally determined based on an independent appraisal of the fair value of a loan’s underlying collateral.
(2)The fair value basis of collateral dependent loans and other real estate owned is adjusted to reflect management’s estimates of selling costs including, but not limited to, real estate brokerage commissions and title transfer fees.
(3)The fair value of other real estate owned is generally determined based upon the lower of an independent appraisal of the property’s fair value or the applicable listing price or contracted sales price.
At December 31, 2023, collateral dependent loans valued using Level 3 inputs comprised loans with principal balance totaling $1.9 million and valuation allowance of $35,000 reflecting an aggregate fair value of $1.9 million. By comparison, at June 30, 2023, collateral dependent loans valued using Level 3 inputs comprised loans with principal balance totaling $21.0 million and valuation allowance of $3.3 million reflecting an aggregate fair value of $17.7 million.
Once a loan is foreclosed, the fair value of the other real estate owned continues to be evaluated based upon the fair value of the repossessed real estate originally securing the loan. At December 31, 2023 and June 30, 2023, the Company held other real estate owned totaling $12.0 million and $13.0 million, respectively, whose carrying value was written down utilizing Level 3 inputs.
- 33 -

The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of December 31, 2023 and June 30, 2023:
December 31, 2023
Carrying
Amount
Fair
Value
Quoted
Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
(In Thousands)
Financial assets:
Cash and cash equivalents$73,860 $73,860 $73,860 $ $ 
Investment securities available for sale1,144,175 1,144,175  1,144,175  
Investment securities held to maturity141,959 127,877  127,877  
Loans held-for-sale14,030 14,117  14,117  
Net loans receivable5,700,762 5,211,713   5,211,713 
FHLB Stock83,372     
Interest receivable30,258 30,258 18 9,729 20,511 
Interest rate contracts44,120 44,120  44,120  
Financial liabilities:
Deposits other than certificates of deposits3,577,574 3,577,574 3,577,574   
Certificates of deposits1,742,056 1,729,407   1,729,407 
Borrowings1,667,055 1,663,644   1,663,644 
Interest payable on deposits6,177 6,177 3,134  3,043 
Interest payable on borrowings5,637 5,637   5,637 
Interest rate contracts3,448 3,448  3,448  
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June 30, 2023
Carrying
Amount
Fair
Value
Quoted
Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
(In Thousands)
Financial assets:
Cash and cash equivalents$70,515 $70,515 $70,515 $ $ 
Investment securities available for sale1,227,729 1,227,729  1,227,729  
Investment securities held to maturity146,465 131,169  131,169  
Loans held-for-sale9,591 9,442  9,442  
Net loans receivable5,780,687 5,261,808   5,261,808 
FHLB Stock71,734     
Interest receivable28,133 28,133 14 8,924 19,195 
Interest rate contracts71,624 71,624  71,624  
Financial liabilities:
Deposits other than certificates of deposits3,611,632 3,611,632 3,611,632   
Certificates of deposits2,017,551 1,989,434   1,989,434 
Borrowings1,506,812 1,498,920   1,498,920 
Interest payable on deposits6,826 6,826 1,933  4,893 
Interest payable on borrowings5,282 5,282   5,282 
Commitments. The fair value of commitments to fund credit lines and originate or participate in loans held in portfolio or loans held for sale is estimated using fees currently charged to enter into similar agreements taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed rate loan commitments, including those relating to loans held for sale that are considered derivative instruments for financial statement reporting purposes, the fair value also considers the difference between current levels of interest and the committed rates. The carrying value, represented by the net deferred fee arising from the unrecognized commitment, and the fair value, determined by discounting the remaining contractual fee over the term of the commitment using fees currently charged to enter into similar agreements with similar credit risk, is not considered material for disclosure.
Limitations. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire holdings of a particular financial instrument. Because no fair value exists for a significant portion of the financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature, involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.
The fair value estimates are based on existing on-and-off balance sheet financial instruments without attempting to value anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial assets and liabilities include premises and equipment, and advances from borrowers for taxes and insurance. In addition, the ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates.
Finally, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates which must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies introduces a greater degree of subjectivity to these estimated fair values.
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13.    COMPREHENSIVE LOSS
The components of accumulated other comprehensive loss included in stockholders’ equity at December 31, 2023 and June 30, 2023 are as follows:
December 31,
2023
June 30,
2023
(In Thousands)
Net unrealized loss on securities available for sale$(124,457)$(156,138)
Tax effect35,887 45,018 
Net of tax amount(88,570)(111,120)
Fair value adjustments on derivatives34,702 58,414 
Tax effect(10,064)(16,940)
Net of tax amount24,638 41,474 
Benefit plan adjustments144 268 
Tax effect(42)(78)
Net of tax amount102 190 
Total accumulated other comprehensive loss$(63,830)$(69,456)
Other comprehensive loss and related tax effects for the three and six months ended December 31, 2023 and 2022 are presented in the following table:
Three Months Ended
December 31,
Six Months Ended
December 31,
2023202220232022
(In Thousands)
Net unrealized holding gain (loss) on securities available for sale$42,048 $1,328 $13,546 $(48,037)
Net realized loss on sale and call of securities available for sale (1)
18,135 15,227 18,135 15,227 
Fair value adjustments on derivatives(28,350)(6,287)(23,712)14,263 
Benefit plans:
Accretion of net actuarial (gain) (2)
(14)(6)(29)(12)
Net actuarial loss  (95)(27)
Net change in benefit plan accrued expense(14)(6)(124)(39)
Other comprehensive income (loss) before taxes31,819 10,262 7,845 (18,586)
Tax effect (9,173)(2,943)(2,219)5,292 
Total other comprehensive income (loss)$22,646 $7,319 $5,626 $(13,294)
___________________________________
(1)Represents amounts reclassified out of accumulated other comprehensive (loss) income and included in loss on sale of securities on the Consolidated Statements of Income (Loss).
(2)Represents amounts reclassified out of accumulated other comprehensive (loss) income and included in the computation of net periodic pension expense. See Note 10 - Benefit Plans for additional information.
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14.    NET INCOME (LOSS) PER COMMON SHARE (“EPS”)
The following schedule shows the Company’s earnings per share calculations for the periods presented:
Three Months Ended
December 31,
Six Months Ended
December 31,
2023202220232022
(In Thousands, Except Per Share Data)
Net (loss) income$(13,827)$1,951 $(3,985)$18,486 
Weighted average number of common shares outstanding - basic62,299 65,030 62,657 65,383 
Effect of dilutive securities 8  10 
Weighted average number of common shares outstanding - diluted62,299 65,038 62,657 65,393 
Basic earnings per share$(0.22)$0.03 $(0.06)$0.28 
Diluted earnings per share$(0.22)$0.03 $(0.06)$0.28 
Stock options for 2,820,922 and 3,096,138 shares of common stock were not considered in computing diluted earnings per share for the three months ended December 31, 2023 and 2022, respectively, and stock options for 2,820,922 and 2,965,000 shares of common stock were not considered in computing diluted earnings per share for the six months ended December 31, 2023 and 2022, respectively, because they were considered anti-dilutive. In addition, 415,999 and 427,347 RSUs were not considered in computing diluted earnings per share for the three months ended December 31, 2023 and December 31, 2022, respectively and 533,838 and 323,218 RSUs were not considered in computing diluted earnings per share for the three and six months ended December 31, 2023 and December 31, 2022, respectively because they were considered anti-dilutive.
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ITEM 2.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward-Looking Statements
This Quarterly Report on Form 10-Q may include certain forward-looking statements based on current management expectations. Such forward-looking statements may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as “may”, “will”, “believe”, “expect”, “estimate”, “anticipate”, “continue”, or similar terms or variations on those terms, or the negative of those terms. The actual results of the Company could differ materially from those management expectations. This includes statements regarding general economic conditions, the effects of the recent turmoil in the banking industry (including the failure of three financial institutions), legislative and regulatory changes, monetary and fiscal policies of the federal government, changes in tax policies, rates and regulations of federal, state and local tax authorities and failure to integrate or profitably operate acquired businesses. Additional potential factors include changes in interest rates, the rate of inflation, deposit flows, cost of funds, demand for loan products and financial services, competition and changes in the quality or composition of loan and investment portfolios of the Company. Other factors that could cause future results to vary from current management expectations include changes in accounting principles, policies or guidelines, a potential government shutdown and other economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services and prices. Further description of the risks and uncertainties to the business are included in this Quarterly Report on Form 10-Q and in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023, under “Item 1A. Risk Factors.”
Except as required by applicable law or regulation, the Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.
Critical Accounting Policies
Our accounting policies are integral to understanding the results reported. We consider accounting policies that require management to exercise significant judgment or discretion or to make significant assumptions that have, or could have, a material impact on the carrying value of certain assets or on income to be critical accounting policies. At December 31, 2023, there have been no material changes to our critical accounting policies as compared to the critical accounting policies disclosed in our most recent Annual Report on Form 10-K. Reference is made to Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023.

Strategic Actions Taken During the Quarter Ended December 31, 2023
Investment Securities Repositioning
As previously announced, we executed the sale of $122.2 million of our available-for-sale (“AFS”) debt securities. The sale resulted in a pre-tax net loss of $18.1 million and had a nominal impact on tangible book value, as the loss was previously reflected in capital via accumulated other comprehensive loss. Proceeds from the sale were utilized to retire higher-cost wholesale funding and to reinvest in loans yielding approximately 7.0%.
Bank-Owned Life Insurance (“BOLI”) Restructuring
We initiated a restructuring of our BOLI portfolio in which $103.4 million of policies yielding 2.1% were exchanged or surrendered and replaced with policies yielding 5.1%. As a result of this restructure, we recognized tax expense of $5.7 million and exchange charges of $573 thousand.
Comparison of Financial Condition at December 31, 2023 and June 30, 2023
Executive Summary. Total assets decreased $167.0 million to $7.90 billion at December 31, 2023 from $8.06 billion at June 30, 2023. The decrease primarily reflected decreases in investment securities available for sale, as discussed below, and in net loans receivable.
Investment Securities. Investment securities available for sale decreased $83.6 million to $1.14 billion at December 31, 2023, from $1.23 billion at June 30, 2023. This decrease was largely the result of sales of $122.2 million and principal repayments of $57.4 million, partially offset by purchases of $64.0 million and a fair value increase of $31.7 million.
Investment securities held to maturity decreased $4.5 million to $142.0 million at December 31, 2023 from $146.5 million at June 30, 2023. This decrease was largely the result of principal repayments of $4.7 million.
- 38 -

Additional information regarding our investment securities at December 31, 2023 and June 30, 2023 is presented in Note 4 to the unaudited consolidated financial statements.
Loans Held-for-Sale. Loans held-for-sale totaled $14.0 million at December 31, 2023 as compared to $9.6 million at June 30, 2023 and are reported separately from the balance of net loans receivable. During the six months ended December 31, 2023, we sold $39.1 million of residential mortgage loans, resulting in a gain on sale of $319,000. Additionally, we reclassified three non-performing commercial real estate loans to loans held-for-sale as a result of our intent to sell these assets in the near term. These loans are attributable to one borrower relationship and had a fair value of $9.7 million at December 31, 2023.
Net Loans Receivable. Net loans receivable decreased $79.9 million, or 1.4%, to $5.70 billion at December 31, 2023 from $5.78 billion at June 30, 2023. Details regarding the change in the loan portfolio, by loan segment, are presented below:
December 31,
2023
June 30,
2023
Increase/
(Decrease)
(In Thousands)
Commercial loans:
Multi-family mortgage$2,651,274 $2,761,775 $(110,501)
Nonresidential mortgage947,287 968,574 (21,287)
Commercial business144,134 146,861 (2,727)
Construction221,933 226,609 (4,676)
Total commercial loans3,964,628 4,103,819 (139,191)
One- to four-family residential mortgage1,746,065 1,700,559 45,506 
Consumer loans:
Home equity loans43,517 43,549 (32)
Other consumer2,728 2,549 179 
Total consumer loans46,245 46,098 147 
Total loans5,756,938 5,850,476 (93,538)
Unaccreted yield adjustments(11,309)(21,055)9,746 
Allowance for credit losses(44,867)(48,734)3,867 
Net loans receivable$5,700,762 $5,780,687 $(79,925)
Commercial loan origination volume for the six months ended December 31, 2023 totaled $104.7 million, comprised of $17.2 million of commercial mortgage loan originations, $47.1 million of commercial business loan originations and construction loan disbursements of $40.4 million.
One- to four-family residential mortgage loan origination volume, excluding loans held-for-sale, totaled $66.2 million for the six months ended December 31, 2023 and was supplemented with the purchase of loans totaling $49.4 million. Home equity loan and line of credit origination volume for the same period totaled $8.5 million.
- 39 -

Loan-to-value (“LTV”) ratios are based on current period loan balances and original appraised values at the time of origination unless a current appraisal has been obtained as a result of the loan being deemed collateral dependent and individually analyzed. The following table sets forth the composition of our real estate secured loans indicating the LTV, by loan category, at December 31, 2023 and June 30, 2023:
December 31, 2023June 30, 2023
BalanceLTVBalanceLTV
(Dollars in Thousands)
Commercial mortgage loans:
Multi-family mortgage$2,651,274 64 %$2,761,775 64 %
Nonresidential mortgage947,287 53 968,574 54 
Construction221,933 56 226,609 58 
Total commercial mortgage loans3,820,494 61 3,956,958 61 
One- to four-family residential mortgage1,746,065 62 1,700,559 62 
Consumer loans:
Home equity loans43,517 50 43,549 49 
Total mortgage loans$5,610,076 61 %$5,701,066 61 %
Additional information about our loan portfolio at December 31, 2023 and June 30, 2023 is presented in Note 5 to the unaudited consolidated financial statements.
Nonperforming Assets. Nonperforming assets decreased by $5.8 million to $49.8 million, or 0.63% of total assets, at December 31, 2023, from $55.6 million, or 0.69% of total assets, at June 30, 2023.
At December 31, 2023, nonperforming assets consisted of $28.1 million of nonperforming loans, $9.7 million of non-accrual commercial loans held for sale and $12.0 million of other real estate owned (“OREO”). At June 30, 2023, nonperforming assets consisted of $42.6 million of nonperforming loans and $13.0 million of OREO.
Additional information about our nonperforming loans and loan modifications at December 31, 2023 and June 30, 2023 is presented in Note 5 to the unaudited consolidated financial statements.
Allowance for Credit Losses (“ACL”). At December 31, 2023, the ACL totaled $44.9 million, or 0.78% of total loans, reflecting a decrease of $3.9 million from $48.7 million, or 0.83% of total loans, at June 30, 2023. The decrease during the six months ended December 31, 2023 was largely attributable to net charge-offs of $6.2 million and a decrease in the balance of loans receivable, partially offset by a provision for credit losses of $2.4 million. The charge-offs recorded were primarily driven by the reclassification of three non-performing loans to held-for-sale status, reflecting the Company’s intent to sell these assets. Of the $6.2 million of net charge-offs recorded during the six months ended December 31, 2023, $2.2 million had previously been individually reserved for within the ACL. The provision for credit losses for the six months ended December 31, 2023 was primarily driven by charge-offs, as discussed above, partially offset by a decrease in the balance of loans receivable.
Additional information about our ACL at December 31, 2023 and June 30, 2023 is presented in Note 6 to the unaudited consolidated financial statements.
Other Assets. The aggregate balance of other assets, including premises and equipment, FHLB stock, interest receivable, goodwill, core deposit intangibles, bank owned life insurance (“BOLI”), deferred income taxes, OREO and other assets, decreased $6.8 million to $823.0 million at December 31, 2023 from $829.8 million at June 30, 2023. The decrease in the balance of these other assets during the six months ended December 31, 2023 reflected a decrease in BOLI due to the restructuring, as discussed above, and a decrease in the market value of interest rate derivatives, partially offset by an increase in receivables resulting from surrendered BOLI policies that did not settle until January 2024, and an increase in Federal Home Loan Bank of New York (“FHLB”) stock. The remaining change generally reflected normal operating fluctuations within these line items.
Deposits. Total deposits decreased $309.6 million, or 5.5%, to $5.32 billion at December 31, 2023 from $5.63 billion at June 30, 2023. Included in total deposits are brokered and listing service time deposits of $458.4 million at December 31, 2023 and $640.5 million at June 30, 2023. The following table sets forth the distribution of, and changes in, deposits, by type, for the periods indicated:
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December 31,
2023
June 30,
2023
Increase/
(Decrease)
(In Thousands)
Non-interest-bearing deposits$584,130 $609,999 $(25,869)
Interest-bearing deposits:
Interest-bearing demand2,347,262 2,252,912 94,350 
Savings646,182 748,721 (102,539)
Certificates of deposit (retail)1,283,676 1,377,028 (93,352)
Certificates of deposit (brokered and listing service)458,380 640,523 (182,143)
Interest-bearing deposits4,735,500 5,019,184 (283,684)
Total deposits$5,319,630 $5,629,183 $(309,553)
Uninsured deposits totaled $1.81 billion as of December 31, 2023 compared to $1.77 billion as of June 30, 2023. Excluding collateralized deposits of state and local governments, and deposits of the Bank’s wholly-owned subsidiary and holding company, uninsured deposits totaled $695.7 million, or 13.1% of total deposits, at December 31, 2023 compared to $710.4 million, or 12.6% of total deposits, at June 30, 2023.
Additional information about our deposits at December 31, 2023 and June 30, 2023 is presented in Note 7 to the unaudited consolidated financial statements.
Borrowings. The balance of borrowings increased by $160.2 million to $1.67 billion at December 31, 2023 from $1.51 billion at June 30, 2023. The growth in borrowings was driven by an increase in advances from the FHLB and resulted from the decline in brokered deposits of $182.1 million.
At December 31, 2023, we maintained available secured borrowing capacity of $1.78 billion, of which $1.38 billion was immediately accessible via in-place collateral and $400.8 million represented the market value of unpledged securities.
Additional information about our borrowings at December 31, 2023 and June 30, 2023 is presented in Note 8 to the unaudited consolidated financial statements.
Other Liabilities. The balance of other liabilities, including advance payments by borrowers for taxes and other miscellaneous liabilities, increased $3.6 million to $63.2 million at December 31, 2023 from $59.5 million at June 30, 2023. The change in the balance of these other liabilities generally reflected normal operating fluctuations during the period.
Stockholders’ Equity. Stockholders’ equity decreased $21.3 million to $848.0 million at December 31, 2023 from $869.3 million at June 30, 2023. The decrease in stockholders’ equity during the six months ended December 31, 2023 largely reflected cash dividends of $13.9 million, share repurchases of $11.2 million and a net loss of $4.0 million. These items were offset by a decrease in other comprehensive loss of $5.6 million, which was driven by an increase in the fair value of our available for sale securities, partially offset by a decrease in the fair value of our derivatives portfolio.
Book value per share decreased by $0.04 to $13.16 at December 31, 2023 while tangible book value per share decreased by $0.11 to $9.85 at December 31, 2023.
On August 1, 2022, we announced that the Board of Directors had authorized a new stock repurchase plan to repurchase up to 4,000,000 shares, and the completion of our previous stock repurchase plan, which authorized the repurchase of 7,602,021 shares. During the six months ended December 31, 2023, we repurchased 1,504,747 shares of common stock at a cost of $11.2 million, or $7.47 per share. On November 7, 2023, we announced the completion of this stock repurchase plan.
Comparison of Operating Results for the Quarter Ended December 31, 2023 and December 31, 2022
Net (Loss) Income. Net loss for the quarter ended December 31, 2023 was $13.8 million, or $0.22 per diluted share, compared to net income of $2.0 million, or $0.03 per diluted share for the quarter ended December 31, 2022. The decrease in net income reflected a decrease in net interest income, a decrease in non-interest income, an increase in the provision for credit losses and an increase in income tax expense, partially offset by a decrease in non-interest expense. The net loss for the current quarter included a $12.9 million after-tax net loss on the sale of securities that resulted from a previously announced investment securities repositioning and an after-tax net loss of $6.3 million from the BOLI restructure, as discussed above.
Net Interest Income. Net interest income decreased by $8.9 million to $35.8 million for the quarter ended December 31, 2023 compared to $44.8 million for the quarter ended December 31, 2022. The decrease between the comparative periods resulted
- 41 -

from an increase of $19.1 million in interest expense, partially offset by an increase of $10.2 million in interest income. Included in net interest income for the quarters ended December 31, 2023 and 2022, respectively, was purchase accounting accretion of $640,000 and $1.9 million, and loan prepayment penalty income of $185,000 and $166,000.
Net interest margin decreased 44 basis points to 1.94% for the quarter ended December 31, 2023, from 2.38% for the quarter ended December 31, 2022 and reflected an increase in the cost of interest-bearing liabilities and a decrease in the average balance of interest-earning assets, partially offset by an increase in the yield on interest-earning assets and a decrease in the average balance of interest-earning liabilities. The increased cost of interest-bearing liabilities and yield on interest-earning assets is the result of higher market interest rates that were caused by an increase in the federal funds target rate from 0% - 0.25% in March 2022 to 5.25% - 5.50% in July 2023.
Details surrounding the composition of, and changes to, net interest income are presented in the table below which reflects the components of the average balance sheet and of net interest income for the periods indicated. We derived the average yields and costs by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented with daily balances used to derive average balances. No tax equivalent adjustments have been made to yield or costs. Non-accrual loans were included in the calculation of average balances, however interest receivable on these loans has been fully reserved for and therefore not included in interest income. The yields and costs set forth below include the effect of deferred fees, discounts and premiums that are amortized or accreted to interest income or expense.
Three Months Ended December 31,
20232022
Average
Balance
InterestAverage
Yield/
Cost
Average
Balance
InterestAverage
Yield/
Cost
(Dollars in Thousands)
Interest-earning assets:
Loans receivable (1)
$5,726,321 $63,384 4.43 %$5,839,903 $57,996 3.97 %
Taxable investment securities (2)
1,509,165 16,756 4.44 1,527,578 13,221 3.46 
Tax-exempt securities (2)
15,025 84 2.25 37,917 219 2.32 
Other interest-earning assets (3)
139,740 2,401 6.87 114,175 1,005 3.52 
Total interest-earning assets7,390,251 82,625 4.47 7,519,573 72,441 3.85 
Non-interest-earning assets554,335 550,519 
Total assets$7,944,586 $8,070,092 
Interest-bearing liabilities:
Interest-bearing demand$2,301,169 16,736 2.91 $2,359,977 9,625 1.63 
Savings664,926 738 0.44 931,584 953 0.41 
Certificates of deposit1,824,316 12,866 2.82 2,192,722 8,244 1.50 
Total interest-bearing deposits4,790,411 30,340 2.53 5,484,283 18,822 1.37 
Federal Home Loan Bank advances1,513,497 14,436 3.82 997,148 8,836 3.54 
Other borrowings142,283 2,010 5.65 — — — 
Borrowings1,655,780 16,446 3.97 997,148 8,836 3.54 
Total interest-bearing liabilities6,446,191 46,786 2.90 6,481,431 27,658 1.71 
Non-interest-bearing liabilities (4)
659,681 723,567 
Total liabilities7,105,872 7,204,998 
Stockholders' equity838,714 865,094 
Total liabilities and stockholders' equity$7,944,586 $8,070,092 
Net interest income$35,839 $44,783 
Interest rate spread (5)
1.57 %2.14 %
Net interest margin (6)
1.94 %2.38 %
Ratio of interest-earning assets to interest-bearing liabilities1.151.16
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___________________________________
(1)Loans held-for-sale and non-accruing loans have been included in loans receivable and the effect of such inclusion was not material. Allowance for credit losses has been included in non-interest-earning assets.
(2)Fair value adjustments have been excluded in the balances of interest-earning assets.
(3)Includes interest-bearing deposits at other banks and FHLB of New York capital stock.
(4)Includes average balances of non-interest-bearing deposits of $597.3 million and $666.8 million for the quarter ended December 31, 2023 and 2022, respectively.
(5)Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(6)Net interest margin represents net interest income as a percentage of average interest-earning assets.
Provision for Credit Losses. The provision for credit losses increased $434,000 to a provision for credit losses of $2.1 million for the quarter ended December 31, 2023, compared to provision for credit losses of $1.7 million for the quarter ended December 31, 2022. The provision for the quarter ended December 31, 2023 was primarily driven by charge-offs on three commercial real estate loans, as discussed above, partially offset by a decrease in the balance of loans receivable. By comparison, the provision for credit losses for the quarter ended December 31, 2022 was largely attributable to loan growth in the quarter, partially offset by a reduction in the qualitative component of our ACL.
Additional information regarding the ACL and the associated provisions recognized during the quarters ended December 31, 2023 and 2022 is presented in Note 6 to the unaudited consolidated financial statements as well as the Comparison of Financial Condition at December 31, 2023 and June 30, 2023.
Non-Interest Income. Total non-interest income decreased $7.5 million to a loss of $16.0 million for the quarter ended December 31, 2023.
Loss on sale and call of securities was $18.1 million during the quarter ended December 31, 2023 compared to $15.2 million during the prior period. The loss in the current period was due to a previously announced repositioning of our investment securities portfolio that involved the sale of $122.2 million of available for sale debt securities. Proceeds from the sale were utilized to retire higher-cost wholesale funding and to reinvest in loans yielding approximately 7.0%.
We recognized a non-recurring loss of $974,000 attributable to the write-down of one other real estate owned (“OREO”) property during the quarter ended December 31, 2023, while there were no such losses recorded in the prior period. OREO income for the quarter ended December 31, 2023 was $182,000.
Income from BOLI decreased $599,000 to $1.2 million for the quarter ended December 31, 2023, due to non-recurring exchange charges related to the BOLI restructure, as discussed above.
Other non-interest income decreased $2.9 million to $811,000 for the quarter ended December 31, 2023. The decrease in other non-interest income was primarily attributable to a $2.9 million gain from the sale of a former branch location during the prior year period.
The remaining changes in the other components of non-interest income between comparative periods generally reflected normal operating fluctuations within those line items.
Non-Interest Expense. Total non-interest expense decreased $2.9 million to $29.8 million for the quarter ended December 31, 2023.
Salaries and employee benefits decreased $2.6 million to $17.3 million for quarter ended December 31, 2023. This decrease was primarily driven by lower salary expense resulting from a decrease in employee headcount from December 31, 2022 to December 31, 2023, and a decrease in incentive payments tied to loan origination volume. The headcount reductions were mainly attributable to the workforce realignment completed in the quarter ended December 31, 2022, which included $250,000 of non-recurring severance expense.
Net occupancy expense of premises decreased $313,000 to $2.7 million for the quarter ended December 31, 2023. This decrease was primarily due to lower depreciation expense, rent expense and maintenance expense associated with two retail branch closures completed in the quarter ended June 30, 2023.
Advertising and marketing expense decreased $430,000 to $301,000 for the quarter ended December 31, 2023. This decrease in advertising expense resulted from the adoption of lower cost in-house digital campaigns supporting our loan and deposit growth initiatives.
FDIC insurance premiums increased $269,000 to $1.5 million for the quarter ended December 31, 2023. The increase was largely attributable to an updated assessment rate from the FDIC which did not impact the prior year period.
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Other non-interest expense increased $229,000 to $3.8 million for the quarter ended December 31, 2023. This increase was primarily attributable to a $502,000 increase in real estate owned expenses. At December 31, 2023, we were under contract to sell a $12 million OREO asset that was subsequently sold in January 2024. This increase was partially offset by a $166,000 decrease in the provision for credit losses on unfunded commitments.
The remaining changes in the other components of non-interest expense between comparative periods generally reflected normal operating fluctuations within those line items.
Provision for Income Taxes. Provision for income taxes increased $1.7 million to $1.8 million for the quarter ended December 31, 2023 from $33,000 for the quarter ended December 31, 2022.
The increase in income tax expense reflected $5.7 million of discrete tax costs related to the BOLI restructure, as discussed above, partially offset by lower income driven by higher realized losses on the sale of securities, as discussed above.
Effective tax rates for the quarter ended December 31, 2023 and 2022 were (14.8)% and 1.7%, respectively. The increase in the effective tax rate was primarily due to $5.7 million of discrete tax cost associated with the BOLI restructure, as discussed above. This increase was partially offset by a year-to-date tax rate true-up which resulted from the loss on the sale of securities during the current quarter. The loss lowered our full year projected taxable income and income tax provision.
Comparison of Operating Results for the Six Months Ended December 31, 2023 and December 31, 2022
Net (Loss) Income. Net loss for the six months ended December 31, 2023 was $4.0 million, or $0.06 per diluted share, compared to net income of $18.5 million, or $0.28 per diluted share for the six months ended December 31, 2022. The decrease in net income reflected a decrease in net interest income, a decrease in non-interest income and an increase in the provision for credit losses, partially offset by decreases in non-interest expense and income tax expense. The net loss for the current year period included a $12.9 million after-tax net loss on the sale of securities that resulted from a previously announced investment securities repositioning and an after-tax net loss of $6.3 million from the BOLI restructure, as discussed above.
Net Interest Income. Net interest income decreased by $18.3 million to $75.0 million for the six months ended December 31, 2023 compared to $93.3 million for the six months ended December 31, 2022. The decrease between the comparative periods resulted from an increase of $45.2 million in interest expense, partially offset by an increase of $26.9 million in interest income. Included in net interest income for the six months ended December 31, 2023 and 2022, respectively, was purchase accounting accretion of $1.3 million and $3.7 million, and loan prepayment penalty income of $452,000 and $607,000.
Net interest margin decreased 51 basis points to 2.02% for the six months ended December 31, 2023, from 2.53% for the six months ended December 31, 2022 and reflected increases in the cost and average balance of interest-bearing liabilities, partially offset by increases in the average balance of and yield on interest-earning assets. The increased cost of interest-bearing liabilities and yield on interest-earning assets is the result of higher market interest rates that were caused by an increase in the federal funds target rate from 0% - 0.25% in March 2022 to 5.25% - 5.50% in July 2023.
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Details surrounding the composition of, and changes to, net interest income are presented in the table below which reflects the components of the average balance sheet and of net interest income for the periods indicated. We derived the average yields and costs by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented with daily balances used to derive average balances. No tax equivalent adjustments have been made to yield or costs. Non-accrual loans were included in the calculation of average balances, however interest receivable on these loans has been fully reserved for and therefore not included in interest income. The yields and costs set forth below include the effect of deferred fees, discounts and premiums that are amortized or accreted to interest income or expense.
Six Months Ended December 31,
20232022
Average
Balance
InterestAverage
Yield/
Cost
Average
Balance
InterestAverage
Yield/
Cost
(Dollars in Thousands)
Interest-earning assets:
Loans receivable(1)
$5,757,197 $126,153 4.38 %$5,696,949 $110,931 3.89 %
Taxable investment securities(2)
1,512,779 33,021 4.37 1,522,276 23,660 3.11 
Tax-exempt securities(2)
15,254 171 2.25 43,445 504 2.32 
Other interest-earning assets(3)
135,285 4,448 6.58 101,107 1,766 3.49 
Total interest-earning assets7,420,515 163,793 4.41 7,363,777 136,861 3.72 
Non-interest-earning assets561,529 560,372 
Total assets$7,982,044 $7,924,149 
Interest-bearing liabilities:
Interest-bearing demand$2,273,500 $31,204 2.75 $2,357,159 $15,016 1.27 
Savings692,217 1,576 0.46 975,463 1,549 0.32 
Certificates of deposit1,896,414 25,127 2.65 2,103,822 13,126 1.25 
Total interest-bearing deposits4,862,131 57,907 2.38 5,436,444 29,691 1.09 
Federal Home Loan Bank advances1,449,985 26,720 3.69 819,773 13,138 3.21 
Other borrowings150,190 4,167 5.55 63,728 718 2.26 
Borrowings1,600,175 30,887 3.86 883,501 13,856 3.14 
Total interest-bearing liabilities6,462,306 88,794 2.75 6,319,945 43,547 1.38 
Non-interest-bearing liabilities(4)
669,317 723,811 
Total liabilities7,131,623 7,043,756 
Stockholders' equity850,421 880,393 
Total liabilities and stockholders' equity$7,982,044 $7,924,149 
Net interest income$74,999 $93,314 
Interest rate spread(5)
1.66 %2.34 %
Net interest margin(6)
2.02 %2.53 %
Ratio of interest-earning assets to interest-bearing liabilities1.151.17
___________________________________
(1)Loans held-for-sale and non-accruing loans have been included in loans receivable and the effect of such inclusion was not material. Allowance for credit losses has been included in non-interest-earning assets.
(2)Fair value adjustments have been excluded in the balances of interest-earning assets.
(3)Includes interest-bearing deposits at other banks and FHLB of New York capital stock.
(4)Includes average balances of non-interest-bearing deposits of $604.8 million and $667.2 million for the six months ended December 31, 2023 and 2022, respectively.
(5)Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(6)Net interest margin represents net interest income as a percentage of average interest-earning assets.

Provision for Credit Losses. The provision for credit losses increased $9,000 to a provision for credit losses of $2.4 million for the six months ended December 31, 2023, compared to a provision for credit losses of $2.3 million for the six months ended
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December 31, 2022. The provision for the six months ended December 31, 2023 was primarily driven by charge-offs on three commercial real estate loans attributable to one borrower relationship. By comparison, the provision for credit losses for the six months ended December 31, 2022 was largely attributable to loan growth, partially offset by a reduction in the qualitative component of our ACL and a reduction in the expected life of the loan portfolio.
Additional information regarding the ACL and the associated provisions recognized during the six months ended December 31, 2023 and 2022 is presented in Note 6 to the unaudited consolidated financial statements as well as the Comparison of Financial Condition at December 31, 2023 and June 30, 2023.
Non-Interest Income. Total non-interest income decreased $9.4 million to a loss of $12.0 million for the six months ended December 31, 2023.
Loss on sale and call of securities was $18.1 million during the six months ended December 31, 2023 compared to a loss of $15.2 million recorded during the prior year period. The loss in the current period was due to a previously announced repositioning of our investment securities portfolio that involved the sale of $122.2 million of available for sale debt securities. Proceeds from the sale were utilized to retire higher-cost wholesale funding and to reinvest in loans yielding approximately 7.0%.
We recognized a non-recurring loss of $974,000 attributable to the write-down of one other real estate owned (“OREO”) property during the quarter ended December 31, 2023, while there were no such losses recorded in the prior period. OREO income for the six months ended December 31, 2023 was $346,000.
Income from bank owned life insurance decreased $2.6 million to $2.8 million for the six months ended December 31, 2023. The decrease was primarily attributable to non-recurring exchange charges related to the BOLI restructure, as discussed above, and the absence of non-recurring payments from life insurance policies reflected in the prior year period.
Other non-interest income decreased $2.5 million to $1.8 million for the six months ended December 31, 2023. The decrease in other non-interest income was primarily attributable to a non-recurring gain of $2.9 million from the sale of a former branch location during the prior year period.
The remaining changes in the other components of non-interest income between comparative periods generally reflected normal operating fluctuations within those line items.
Non-Interest Expense. Total non-interest expense decreased $5.1 million to $59.5 million for the six months ended December 31, 2023.
Salaries and employee benefits decreased $5.2 million to $35.0 million for the six months ended December 31, 2023. This decrease was primarily driven by lower salary expense resulting from a decrease in employee headcount from December 31, 2022 to December 31, 2023, and a decrease in incentive payments tied to loan origination volume. The headcount reductions were mainly attributable to the workforce realignment completed in the quarter ended December 31, 2022, which included $250,000 of non-recurring severance expense.
Net occupancy expense of premises decreased $645,000 to $5.4 million for the six months ended December 31, 2023. This decrease was primarily due to decreases in rent expense, depreciation expense, and building repairs and maintenance expense. These decreases are a result of the consolidation of two branch locations during the quarter ended June 30, 2023.
Advertising and marketing expense decreased $949,000 to $529,000 for the quarter ended December 31, 2023. This decrease in advertising expense resulted from the adoption of lower cost in-house digital campaigns supporting our loan and deposit growth initiatives.
FDIC insurance premiums increased $887,000 to $3.0 million for the six months ended December 31, 2023. The increase was largely attributable to an updated assessment rate from the FDIC which did not impact the prior year period.
Other non-interest expense increased $643,000 to $7.1 million for the six months ended December 31, 2023. This increase was primarily attributable to a $1.1 million increase in OREO expenses. At December 31, 2023, we were under contract to sell a $12 million OREO asset that was subsequently sold in January 2024. This increase was partially offset by a decrease in professional and consulting and loan expense.
The remaining changes in the other components of non-interest expense between comparative periods generally reflected normal operating fluctuations within those line items.
Provision for Income Taxes. Provision for income taxes decreased $197,000 to $5.1 million for the six months ended December 31, 2023 from $5.3 million for the six months ended December 31, 2022.
The decrease in income tax expense reflected a lower level of pre-tax income as compared to the prior period, partially offset by $5.7 million of discrete tax cost associated with the BOLI restructure, as discussed above.
Effective tax rates for the six months ended December 31, 2023 and 2022 were 460.3% and 22.2%, respectively. The increase in the effective tax rate was primarily due to discrete tax costs of $5.7 million associated with the BOLI restructure, as discussed above.
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Liquidity and Capital Resources
Liquidity, represented by cash and cash equivalents, is a product of operating, investing and financing activities. Our primary sources of funds are deposits, borrowings, cash flows from investment securities and loans receivable and funds provided from operations. While scheduled payments from the amortization and maturity of loans and investment securities are relatively predictable sources of funds, general interest rates, economic conditions and competition greatly influence deposit flows and prepayments on loans and securities.
At December 31, 2023, liquidity included $73.9 million of short-term cash and equivalents and $1.14 billion of investment securities available for sale. As of December 31, 2023, we had the capacity to borrow additional funds totaling $972.7 million and $405.3 million from the FHLB of New York and FRB, respectively, without pledging additional collateral. We had the ability to pledge additional securities to borrow an additional $400.8 million at December 31, 2023. As of that same date, we also had access to unsecured overnight borrowings with other financial institutions totaling $950.0 million of which none was outstanding.
At December 31, 2023, we had outstanding commitments to originate and purchase loans totaling $16.7 million while such commitments totaled $23.3 million at June 30, 2023. As of those same dates, our pipeline of loans held for sale included $11.0 million and $11.7 million, respectively, of loans in process whose terms included interest rate locks to borrowers that were paired with a best-efforts commitment to sell the loan to a buyer at a fixed price and within a predetermined timeframe after the sale commitment is established.
Construction loans in process and unused lines of credit were $35.1 million and $159.3 million, respectively, at December 31, 2023 compared to $58.5 million and $169.5 million, respectively, at June 30, 2023. We are also subject to the contingent liabilities resulting from letters of credit whose outstanding balances totaled $115,000 at December 31, 2023 and June 30, 2023, respectively.
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee by the customer. Our exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual notional amount of those instruments. We use the same credit policies in making commitments and conditional obligations as we do for on-balance-sheet instruments. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.
Consistent with its goals to operate a sound and profitable financial organization, the Bank actively seeks to maintain its status as a well-capitalized institution in accordance with regulatory standards.
The following table sets forth the Bank’s capital position at December 31, 2023 and June 30, 2023, as compared to the minimum regulatory capital requirements that were in effect as of those dates:
At December 31, 2023
ActualFor Capital
Adequacy Purposes
To Be Well Capitalized
Under Prompt
Corrective Action
Provisions
AmountRatioAmountRatioAmountRatio
(Dollars in Thousands)
Total capital (to risk-weighted assets)$677,211 13.87 %$390,573 8.00 %$488,217 10.00 %
Tier 1 capital (to risk-weighted assets)640,522 13.12 %292,930 6.00 %390,573 8.00 %
Common equity tier 1 capital (to risk-weighted assets)640,522 13.12 %219,698 4.50 %317,341 6.50 %
Tier 1 capital (to adjusted total assets)640,522 8.10 %316,318 4.00 %395,398 5.00 %
At June 30, 2023
ActualFor Capital
Adequacy Purposes
To Be Well Capitalized
Under Prompt
Corrective Action
Provisions
AmountRatioAmountRatioAmountRatio
(Dollars in Thousands)
Total capital (to risk-weighted assets)$695,417 13.31 %$417,853 8.00 %$522,316 10.00 %
Tier 1 capital (to risk-weighted assets)659,783 12.63 %313,389 6.00 %417,853 8.00 %
Common equity tier 1 capital (to risk-weighted assets)659,783 12.63 %235,042 4.50 %339,505 6.50 %
Tier 1 capital (to adjusted total assets)659,783 8.15 %323,922 4.00 %404,902 5.00 %
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The following table sets forth the Company’s capital position at December 31, 2023 and June 30, 2023, as compared to the minimum regulatory capital requirements that were in effect as of those dates:
At December 31, 2023
ActualFor Capital
Adequacy Purposes
AmountRatioAmountRatio
(Dollars in Thousands)
Total capital (to risk-weighted assets)$741,060 15.17 %$390,758 8.00 %
Tier 1 capital (to risk-weighted assets)704,372 14.42 %293,069 6.00 %
Common equity tier 1 capital (to risk-weighted assets)704,372 14.42 %219,802 4.50 %
Tier 1 capital (to adjusted total assets)704,372 8.89 %316,855 4.00 %
At June 30, 2023
ActualFor Capital
Adequacy Purposes
AmountRatioAmountRatio
(Dollars in Thousands)
Total capital (to risk-weighted assets)$770,621 14.75 %$418,015 8.00 %
Tier 1 capital (to risk-weighted assets)734,987 14.07 %313,511 6.00 %
Common equity tier 1 capital (to risk-weighted assets)734,987 14.07 %235,133 4.50 %
Tier 1 capital (to adjusted total assets)734,987 9.07 %324,170 4.00 %
In March 2020, the federal banking agencies announced an interim final rule to delay the estimated impact on regulatory capital stemming from the implementation of CECL. The interim final rule provides banks the option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss method, followed by a three-year transition period established in the previous rule (five-year transition option). We have adopted the capital transition relief over the permissible five-year period. The two-year delay ended for us as of June 30, 2022 and we then began the three-year transition period.
Off-Balance Sheet Arrangements
In the normal course of our business of investing in loans and securities we are a party to financial instruments with off-balance-sheet risk. These financial instruments include significant purchase commitments, such as commitments related to capital expenditure plans and commitments to extend credit to meet the financing needs of our customers. We had no significant off-balance sheet commitments for capital expenditures as of December 31, 2023.
Recent Accounting Pronouncements
For a discussion of the expected impact of recently issued accounting pronouncements that we have adopted, please refer to Note 3 to the unaudited consolidated financial statements.
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ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
The majority of our assets and liabilities are sensitive to changes in interest rates and as such, interest rate risk is a significant form of market risk that we must manage. Interest rate risk is generally defined in regulatory nomenclature as the risk to earnings or capital arising from the movement of interest rates and arises from several risk factors including re-pricing risk, basis risk, yield curve risk and option risk. We maintain an Asset/Liability Management (“ALM”) program in order manage our interest rate risk. The program is overseen by the Board of Directors through its Interest Rate Risk Management Committee which has assigned the responsibility for the operational aspects of the ALM program to our Asset/Liability Management Committee (“ALCO”), which is comprised of various members of the senior and executive management team.
The quantitative analysis that we conduct measures interest rate risk from both a capital and earnings perspective. With regard to earnings, movements in interest rates and the shape of the yield curve significantly influence the amount of net interest income (“NII”) that we recognize. Movements in market interest rates, and the effect of such movements on the risk factors noted above, significantly influence the spread between the interest earned on our interest-earning assets and the interest paid on our interest-bearing liabilities. Our internal interest rate risk analysis calculates the sensitivity of our projected NII over a one year period utilizing a static balance sheet assumption through which incoming and outgoing asset and liability cash flows are reinvested into similar instruments. Product pricing and earning asset prepayment speeds are appropriately adjusted for each rate scenario.
With regard to capital, our internal interest rate risk analysis calculates the sensitivity of our Economic Value of Equity (“EVE”) to movements in interest rates. EVE represents the present value of the expected cash flows from our assets less the present value of the expected cash flows arising from our liabilities adjusted for the value of off-balance sheet instruments. EVE attempts to quantify our economic value using a discounted cash flow methodology. The degree to which our EVE changes for any hypothetical interest rate scenario from its base case measurement is a reflection of our sensitivity to interest rate risk.
For both earnings and capital at risk, our interest rate risk analysis calculates a base case scenario that assumes no change in interest rates. The model then measures changes throughout a series of interest rate scenarios representing immediate and permanent, parallel shifts in the yield curve up and down 100, 200 and 300 basis points with additional scenarios modeled where appropriate. The model requires that interest rates remain positive for all points along the yield curve for each rate scenario which may preclude the modeling of certain falling rate scenarios during periods of lower market interest rates.
The following tables present the results of our internal EVE and NII analyses as of December 31, 2023 and June 30, 2023, respectively:
December 31, 2023
1 to 12 Months13 to 24 Months
Change in Interest RatesEVE% Change
in EVE
NII% Change
in NII
NII% Change
in NII
(Dollars in Thousands)
+300 bps$417,960 (35.18)%$140,570 (5.52)%$156,590 (7.00)%
+200 bps474,390 (26.43)%141,950 (4.59)%157,112 (6.69)%
+100 bps571,906 (11.31)%146,105 (1.80)%164,709 (2.18)%
0 bps644,822 — 148,785 — 168,378 — 
-100 bps686,268 6.43 %152,172 2.28 %168,925 0.32 %
-200 bps694,235 7.66 %152,304 2.37 %163,628 (2.82)%
-300 bps719,245 11.54 %150,566 1.20 %155,006 (7.94)%
June 30, 2023
1 to 12 Months13 to 24 Months
Change in Interest RatesEVE% Change
in EVE
NII% Change
in NII
NII% Change
in NII
(Dollars in Thousands)
+300 bps$507,998 (32.36)%$154,552 (5.26)%$168,366 (3.87)%
+200 bps571,129 (23.95)%156,274 (4.20)%167,683 (4.26)%
+100 bps673,314 (10.35)%160,344 (1.71)%173,170 (1.13)%
0 bps751,040 — 163,132 — 175,143 — 
-100 bps799,675 6.48 %163,455 0.20 %173,319 (1.04)%
-200 bps814,293 8.42 %161,284 (1.13)%166,473 (4.95)%
-300 bps849,208 13.07 %158,526 (2.82)%156,507 (10.64)%
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There are numerous internal and external factors that may contribute to changes in our EVE and its sensitivity. Changes in the composition and allocation of our balance sheet, or utilization of off-balance sheet instruments such as derivatives, can significantly alter the exposure to interest rate risk as quantified by the changes in the EVE sensitivity measures. Changes to certain external factors, most notably changes in the level of market interest rates and overall shape of the yield curve, can also alter the projected cash flows of our interest-earning assets and interest-costing liabilities and the associated present values thereof.
Notwithstanding the rate change scenarios presented in the EVE and NII-based analyses above, future interest rates and their effect on net interest income are not predictable. Computations of prospective effects of hypothetical interest rate changes are based on numerous assumptions, including relative levels of market interest rates, prepayments and deposit run-offs and should not be relied upon as indicative of actual results. Certain shortcomings are inherent in this type of computation. Although certain assets and liabilities may have similar maturities or periods of re-pricing, they may react at different times and in different degrees to changes in market interest rates. The interest rate on certain types of assets and liabilities, such as demand deposits and savings accounts, may fluctuate in advance of changes in market interest rates, while rates on other types of assets and liabilities may lag behind changes in market interest rates. Certain assets, such as adjustable-rate mortgages, generally have features which restrict changes in interest rates on a short-term basis and over the life of the asset. In the event of a change in interest rates, prepayments and early withdrawal levels could deviate significantly from those assumed in the analyses set forth above. Additionally, an increase in credit risk may result as the ability of borrowers to service their debt may decrease in the event of an interest rate increase.
ITEM 4.
CONTROLS AND PROCEDURES
As of the end of the period covered by this Report, an evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended). Based on that evaluation, the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were effective.
During the quarter ended December 31, 2023, there were no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
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PART II
ITEM 1.    Legal Proceedings
At December 31, 2023, neither the Company nor the Bank were involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business, which involve amounts in the aggregate believed by management to be immaterial to the financial condition of the Company and the Bank.
ITEM 1A.    Risk Factors
There have been no material changes to the Risk Factors previously disclosed under Item 1A of the Company’s Annual Report on Form 10-K for the year ended June 30, 2023, previously filed with the Securities and Exchange Commission.
ITEM 2.    Unregistered Sales of Equity Securities and Use of Proceeds
Issuer Purchases of Equity Securities:
The following table reports information regarding repurchases of the Company’s common stock during the quarter ended December 31, 2023:
PeriodTotal Number
of Shares
Purchased
Average Price
Paid per Share
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1)
October 1-31, 2023593,363$6.85 593,36393,777
November 1-30, 202393,7777.06 93,777
December 1-31, 2023— 
Total687,140$6.88 687,140
___________________________________
(1)On August 1, 2022, the Company announced the authorization of a new stock repurchase plan to repurchase up to 4,000,000 shares. On November 7, 2023, the Company announced the completion of the stock repurchase plan, with a total of 4,000,000 shares repurchased at a cost of $34.9 million, or $8.74 per share.
ITEM 3.    Defaults Upon Senior Securities
Not applicable.
ITEM 4.    Mine Safety Disclosures
Not applicable.
ITEM 5.    Other Information
Securities Trading Plans of Directors and Executive Officers
During the three months ended December 31, 2023, none of our directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of the Company's securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any "non-Rule 10b5-1 trading arrangement”.
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ITEM 6.    Exhibits
The following Exhibits are filed as part of this report:
3.1
3.2
4
31.1
31.2
32.1
32.2
101
The following materials from the Company’s Form 10-Q for the quarter ended December 31, 2023, formatted in Inline XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Financial Condition, (ii) the Consolidated Statements of Income; (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Stockholder’s Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to Consolidated Financial Statements.
101.INSInline XBRL Instance Document (The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document)
101.SCHInline XBRL Taxonomy Extension Schema Document
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document
101.LABInline XBRL Taxonomy Extension Labels Linkbase Document
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
- 52 -

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: February 8, 2024
By:/s/ Craig L. Montanaro
Craig L. Montanaro
President and Chief Executive Officer
(Principal Executive Officer)
Date: February 8, 2024
By:/s/ Keith Suchodolski
Keith Suchodolski
Senior Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
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