Executive Summary

Q4 FY25 was steady operationally: EPS held $0.11 while NIM expanded 10 bps to 2.00% as net interest income rose 5.3% to $35.8M, and non-interest income grew 9.4% to $5.0M .
Versus S&P Global consensus, KRNY missed on EPS ($0.11 vs $0.13*) and was modestly below revenue expectations on a like-for-like “total revenue” basis ($40.8M vs $41.2M*), with definitional differences in “revenue” across data sources; management’s release shows NII+$NII at $40.8M while vendor “revenue” methodologies may vary .
Credit quality remained a pillar (NCOs <0.01% annualized; ACL/loans 0.79%), though NPAs rose on two multifamily relationships; provision stepped up to $1.8M, including an $805K reserve on the final wholesale C&I loan .
Cost discipline preserved efficiency (75.7%); management reiterated confidence in sustained earnings growth and continued margin expansion; dividend maintained at $0.11 and three branch consolidations approved (minimal expected impact) – catalysts for sentiment/improvement in profitability trajectory .

What Went Well and What Went Wrong

What Went Well

Net interest margin expansion: NIM rose 10 bps to 2.00% on higher loan yields, lower interest-bearing deposits, and broad declines in deposit rates; NII increased 5.3% q/q to $35.8M .
Expense discipline and efficiency: Non-interest expense was contained (up 1.7% q/q to $30.9M) with efficiency ratio at 75.66%, reflecting ongoing cost focus .
Credit performance: Net charge-offs were $49K (<0.01% annualized), with credit quality described as “exceptional”; NCO rate improved vs Q3 .

Quotes:

“We are pleased to report 23% growth in pre-tax, pre-provision earnings per share… driven by ten basis points of net interest margin expansion… credit quality remains exceptional” — Craig L. Montanaro, CEO .
“Looking ahead, we remain confident in our ability to deliver sustained earnings growth and continued margin expansion” — CEO .

What Went Wrong

Top-line vs Street: EPS was below S&P Global consensus (actual $0.11 vs $0.13*); “revenue” likewise modestly below consensus on comparable basis (see Estimates Context) .
Higher provision expense: Provision rose to $1.8M (from $366K) driven by an $805K reserve on a non-performing wholesale C&I loan (last wholesale C&I exposure) and $1.1M reserves on individually evaluated loans .
Asset quality optics: NPAs increased to $45.6M (0.59% of assets) from $37.7M (0.49%), primarily from two multifamily relationships placed on nonaccrual status .

Financial Results

Headline metrics vs prior quarters and consensus

Metric	Q2 FY25 (Dec-24)	Q3 FY25 (Mar-25)	Q4 FY25 (Jun-25)	Q4 FY25 Consensus
Diluted EPS ($)	$0.10	$0.11	$0.11	$0.13*
Total Revenue (NII + Non-Interest Income) ($M)	$37.485	$38.604	$40.834	$41.159*
Net Interest Income ($M)	$32.612	$34.042	$35.843	—
Non-Interest Income ($M)	$4.873	$4.562	$4.991	—
Net Interest Margin (%)	1.82%	1.90%	2.00%	—
Efficiency Ratio (%)	78.86%	78.72%	75.66%	—

Note: Street “revenue” definitions for banks can differ from company-presented NII+non-interest income; company’s “total revenue (non-GAAP)” used for efficiency ratio shown here .

Selected balance sheet and credit KPIs

KPI	Q2 FY25 (Dec-24)	Q3 FY25 (Mar-25)	Q4 FY25 (Jun-25)
Total Assets ($B)	$7.731	$7.733	$7.740
Loans Receivable ($B)	$5.792	$5.846	$5.813
Total Deposits ($B)	$5.671	$5.707	$5.675
Borrowings ($B)	$1.259	$1.214	$1.256
NPLs / Total Loans (%)	0.65%	0.64%	0.78%
NPAs / Total Assets (%)	0.49%	0.49%	0.59%
ACL / Total Loans (%)	0.77%	0.76%	0.79%
Net Charge-off Rate (annualized)	0.04%	0.03%	0.00%
TBV/Share ($)	$9.75	$9.80	$9.77

Loan portfolio mix (end-of-period, $M)

Segment	Q2 FY25 (Dec-24)	Q3 FY25 (Mar-25)	Q4 FY25 (Jun-25)
Multifamily Mortgage	$2,722.6	$2,733.4	$2,709.7
Nonresidential Mortgage (CRE)	$950.2	$988.1	$986.6
Commercial Business (C&I)	$135.7	$140.2	$138.8
Construction	$176.7	$174.7	$177.7
1–4 Family Residential	$1,765.2	$1,761.5	$1,748.6

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance/Update	Change
Net Interest Margin	Near-term (Q4 FY25 into FY26)	“Anticipate continued strong margin expansion into the June quarter” (Q3 commentary)	“Confident in… continued margin expansion” (Q4 commentary)	Maintained (directional)
Dividend per Share	Quarterly	$0.11 (Q3 declaration)	$0.11 per share; payable Aug 26, 2025; record Aug 12, 2025	Maintained
Branch Network	October 2025	Not previously guided	Regulatory approval to consolidate three branches; minimal financial impact expected	New update (cost optimization)

No numerical revenue/expense/EPS guidance ranges were provided in the press release or 8-K .

Earnings Call Themes & Trends

(Company furnished a press release and investor presentation via 8-K; no call transcript was furnished as an exhibit) .

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4)	Trend
Net interest margin trajectory	NIM +2 bps in Q2 to 1.82%; +8 bps in Q3 to 1.90%; drivers: deposit cost reductions and borrowing paydown	NIM +10 bps to 2.00%; driven by loan yield gains, lower interest-bearing deposits, broad deposit rate declines	Improving
Funding/deposit mix and liquidity	Deposits +3.7% q/q in Q2; borrowings reduced; available secured capacity $2.32B	Deposits -0.6% q/q (mix shift); available secured capacity $2.22B (28.7% assets)	Stable/solid liquidity
Credit quality	NCO rate 0.04% (Q2), 0.03% (Q3); NPAs ~0.49%	NCOs <0.01%; NPAs up to 0.59% on two multifamily relationships; targeted provisioning	Generally strong; watch NPAs
Cost discipline	Efficiency ~79% (Q2–Q3)	Efficiency improved to 75.66%	Improving
Branch optimization	Not highlighted	3 branch consolidations approved (Oct 2025)	New initiative
Technology/AI/process	Not highlighted in Q2–Q3 press releases	Post-quarter: partnership with The Lab Consulting to deploy RPA/AI-enabled automation, workflow orchestration, analytics	Strategic ramp-up

Management Commentary

Strategic focus: “These results reflect the successful execution of our strategy… natural repricing of our loan and time deposit portfolios… confident in… sustained earnings growth and continued margin expansion” — CEO .
Q3 lead-in: “Eight basis points of net interest margin expansion… growth in net loans and deposits… 24 bps decrease in our cost of funds” — CEO (Q3) .
Q2 set-up: “Early stages of growth in net interest income and expansion of net interest margin… deposit growth allowed us to shrink outstanding borrowings and reduce our cost of funds” — CEO (Q2) .
Post-quarter operations: Partnership to deploy RPA and AI-enabled document processing to improve efficiency and client experience — Company announcement (Sept 30, 2025) .

Q&A Highlights

No earnings call transcript was furnished with the Q4 materials (8-K listed exhibits were the press release and investor presentation only) . No Q&A disclosures available to extract clarifications.

Estimates Context

EPS: Q4 FY25 EPS was $0.11 vs S&P Global consensus of $0.13* (2 ests). Result was a modest miss, despite NIM expansion and higher NII .
Revenue: Company “total revenue (non-GAAP)” (NII+non-interest) was $40.834M, versus S&P Global revenue consensus $41.159M* (1 est). Note that vendor “revenue” definitions for banks can diverge from company presentation; S&P also reports “actual revenue” of $39.049M* for Q4, implying methodology differences vs company’s NII+non-interest figure .
Target price / coverage: Consensus target price $7.25* (2 ests); limited sell-side coverage implies higher estimate dispersion risk.

Estimates marked with * are Values retrieved from S&P Global.

Q4 FY25 Actuals vs Consensus

Metric	Actual	Consensus
Diluted EPS ($)	$0.11	$0.13*
Revenue / Total Revenue ($M)	$40.834 (company NII+non-interest)	$41.159*

Key Takeaways for Investors

Margin momentum is building: NIM ticked up to 2.00% and management expects continued expansion, supported by asset repricing and easing deposit costs — a positive driver for core earnings power .
Near-term optical headwind vs Street: Modest EPS and revenue shortfall vs S&P Global consensus may temper reaction, but underlying PPNR grew 23% q/q, indicating improving core profitability .
Credit remains resilient with isolated items: NPAs rose on two multifamily relationships and a final wholesale C&I exposure required reserve build, but NCOs are de minimis and ACL/loans increased to 0.79% .
Deposit base and liquidity are solid: Deposits remain ~82% of funding; secured borrowing capacity equals ~29% of assets, supporting funding flexibility as rates evolve .
Cost actions and process initiatives: Branch consolidations (minimal impact expected) and post-quarter automation/AI partnership underpin medium-term efficiency improvements and operating leverage .
Watch list: NPAs trend, loan repricing cadence, deposit betas, and further updates on technology-driven efficiency gains; limited analyst coverage suggests potential for estimate volatility (consensus breadth is thin)*.