EX-99.1 2 krny-20260331xexx991.htm EX-99.1 Document

Exhibit 99.1
FOR IMMEDIATE RELEASE
April 23, 2026
For further information contact:
Keith Suchodolski, Senior Executive Vice President and Chief Operating Officer, or
Sean Byrnes, Executive Vice President and Chief Financial Officer
Kearny Financial Corp.
(973) 244-4500
KEARNY FINANCIAL CORP. ANNOUNCES THIRD QUARTER FISCAL 2026 RESULTS
AND DECLARATION OF CASH DIVIDEND

Fairfield, N.J., April 23, 2026 – Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), reported net income for the quarter ended March 31, 2026 of $10.1 million, or $0.16 per diluted share, compared to $9.4 million, or $0.15 per diluted share, for the quarter ended December 31, 2025.

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on May 20, 2026, to stockholders of record as of May 6, 2026.

Craig L. Montanaro, President and Chief Executive Officer, commented, “We are pleased to report continued momentum in our core earnings this quarter, highlighted by our sixth consecutive quarter of net interest margin expansion. Quarter-over-quarter, net interest margin increased seven basis points as net interest income grew 3%. These results reflect the ongoing favorable repricing and remixing of our loan portfolio which, along with improving funding dynamics, positions us well for continued earnings momentum in the periods ahead.”

Mr. Montanaro continued, “During the quarter, we made strategic investments to strengthen our deposit franchise. We expanded our Corporate Banking team with the addition of four high-powered deposit-focused relationship officers who will accelerate our growth in relationship‑based middle-market commercial deposits. In parallel, we formed a new Specialty Deposits team specifically focused on select high-value deposit verticals in order to further diversify our funding sources.”

Mr. Montanaro concluded, “Our partnership with The Lab Consulting, a management consulting firm engaged to support process improvement and operational efficiency initiatives, is now well underway, and we are encouraged by the early momentum of this initiative. The opportunities identified to streamline processes, enhance automation, and improve the client experience support our commitment to operational excellence and scalable growth. Collectively, these actions position us well to continue delivering sustainable earnings improvement and long‑term shareholder value.”

Third Quarter Highlights
•Pre-tax, pre-provision net revenue increased 5.5% to $13.0 million, or $0.21 per diluted share, reflecting ongoing strengthening of core earnings.
•Net interest margin expanded by seven basis points to 2.21%, extending the momentum of margin improvement for the sixth consecutive quarter.
•Continued advancing the loan portfolio diversification strategy by growing commercial business, construction, and home equity loans by 18.5%, 14.3% and 4.0%, respectively, while strategically reducing multifamily mortgage exposure.
•Tangible book value per share improved $0.09, or 0.9%, to $10.02.
Balance Sheet
•Total assets were $7.61 billion at March 31, 2026, a decrease of $13.2 million, or 0.2%, from December 31, 2025.
•Investment securities totaled $1.09 billion at March 31, 2026, a decrease of $19.3 million, or 1.7%, from December 31, 2025.
•Loans receivable totaled $5.78 billion at March 31, 2026, an increase of $25.8 million, or 0.4%, from December 31, 2025, primarily reflecting increases in commercial and industrial (“C&I”) and construction loans, partially offset by a decrease in multifamily mortgage loans, which reflects our ongoing strategic remix of the portfolio.
•Deposits were $5.73 billion at March 31, 2026, an increase of $17.5 million, or 0.3%, from December 31, 2025.
1

•Borrowings were $1.06 billion at March 31, 2026, a decrease of $35.0 million, or 3.2%, from December 31, 2025, reflecting reductions in overnight borrowings, partially offset by an increase in Federal Home Loan Bank (“FHLB”) advances.
•At March 31, 2026, the Company maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.45 billion, representing 32.2% of total assets.
Earnings
Net Interest Income and Net Interest Margin
•Net interest margin expanded by seven basis points to 2.21% for the quarter ended March 31, 2026. The increase for the quarter was primarily driven by lower costs and average balances on interest-bearing liabilities, partially offset by lower average yields on interest-earning assets.
•For the quarter ended March 31, 2026, net interest income increased $1.3 million to $39.2 million from $38.0 million for the quarter ended December 31, 2025. Included in net interest income for the quarters ended March 31, 2026 and December 31, 2025, respectively, was purchase accounting accretion of $552,000 and $494,000, and loan prepayment penalty income of $422,000 and $544,000.
Non-Interest Income
•For the quarter ended March 31, 2026, non-interest income increased $523,000, or 9.4%, to $6.1 million from $5.6 million for the quarter ended December 31, 2025, primarily driven by a non-recurring pre-tax gain of $1.0 million on the sale of properties held for sale in the current period.
•Fees and service charges decreased $373,000, or 28.8%, to $922,000 for the quarter ended March 31, 2026 from $1.3 million for the quarter ended December 31, 2025. The decrease was primarily driven by the absence of $245,000 in loan related fee income associated with the payoff of a single construction loan recorded in the prior period.
•Electronic banking fees and charges decreased $84,000, or 17.8%, to $389,000 for the quarter ended March 31, 2026 from $473,000 for the quarter ended December 31, 2025, primarily driven by lower income from interchange fees.
Non-Interest Expense
•For the quarter ended March 31, 2026, non-interest expense increased $1.1 million, or 3.6%, to $32.3 million from $31.2 million for the quarter ended December 31, 2025, primarily driven by increases in salary and benefits, net occupancy, and advertising, partially offset by decreases in other expense.
•Salary and benefits expense increased $943,000 to $19.3 million for the quarter ended March 31, 2026 from $18.4 million for the quarter ended December 31, 2025, primarily driven by an increase in payroll taxes and employee benefits associated with the start of a new calendar year and a non-recurring severance charge of $205,000 recorded in the current period.
•Net occupancy expense of premises increased $375,000 to $3.3 million for the quarter ended March 31, 2026 from $2.9 million for the quarter ended December 31, 2025, driven by seasonally higher snow removal expenses of $527,000 recorded in the current period.
•Advertising and marketing expense increased $253,000 to $665,000 for the quarter ended March 31, 2026 from $412,000 for the quarter ended December 31, 2025, primarily driven by higher advertising expenses across various formats.
•Other expense decreased $377,000 to $3.5 million for the quarter March 31, 2026 from $3.8 million for the quarter ended December 31, 2025, primarily driven by the absence of non-recurring professional fees incurred in the prior period associated with the Company’s partnership with The Lab Consulting and a decline in fraud losses in the current period. Changes in the other components of non-interest expense between comparative periods reflected normal operating fluctuations within those line items.
Income Taxes
•Income tax expense totaled $2.5 million for the quarter ended March 31, 2026 compared to $2.3 million for the quarter ended December 31, 2025, resulting in an effective tax rate of 19.8% in each respective period.
2

Asset Quality
•The balance of non-performing assets increased $1.1 million to $52.4 million, or 0.69% of total assets, at March 31, 2026 from $51.3 million, or 0.67% of total assets, at December 31, 2025.
•Net charge-offs totaled $626,000, or 0.04% of average loans, on an annualized basis, for the quarter ended March 31, 2026, compared to $669,000, or 0.05% of average loans, on an annualized basis, for the quarter ended December 31, 2025.
•For the quarter ended March 31, 2026, the Company recorded a provision for credit losses of $391,000, compared to $567,000 for the quarter ended December 31, 2025. The provision for credit loss expense for the quarter ended March 31, 2026 was primarily due to loan growth and charge-offs associated with certain individually evaluated loans, partially offset by quantitative risk factor adjustments.
•Allowance for credit losses (“ACL”) was $44.7 million, or 0.77% of total loans, at March 31, 2026, a decrease of $235,000 from $45.0 million, or 0.78% of total loans, at December 31, 2025. The decrease in the ACL from December 31, 2025 was primarily driven by loan charge-offs, partially offset by a provision for credit losses, as noted above.
Capital
•For the quarter ended March 31, 2026, book value per share increased $0.09, or 0.8%, to $11.79 while tangible book value per share increased $0.09, or 0.9%, to $10.02.
•At March 31, 2026, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $68.7 million, partially offset by after-tax unrealized gains on derivatives of $2.7 million. After-tax net unrecognized losses on securities held to maturity of $8.2 million were not reflected in total stockholders’ equity.
•At March 31, 2026, the Company’s tangible equity to tangible assets ratio equaled 8.65%. Additionally, the regulatory capital ratios of both the Company and the Bank continued to be in excess of all applicable regulatory requirements as of March 31, 2026.

This earnings release should be read in conjunction with Kearny Financial Corp.’s Q3 2026 Investor Presentation, a copy of which is available through the Investor Relations link located at the bottom of the page of our website at www.kearnybank.com and via a Current Report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov.
Statements contained in this news release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company does not undertake and specifically disclaims any obligation to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.
Category: Earnings
3

Linked-Quarter Comparative Financial Analysis
Kearny Financial Corp.
Consolidated Balance Sheets
(Unaudited)
(Dollars and Shares in Thousands,
Except Per Share Data)		March 31,
2026		December 31,
2025		Variance
or Change		Variance
or Change Pct.
Assets
Cash and cash equivalents$123,836 $147,340 $(23,504)-16.0 %
Securities available for sale983,325 1,000,397 (17,072)-1.7 %
Securities held to maturity110,581 112,800 (2,219)-2.0 %
Loans held-for-sale12,183 8,786 3,397 38.7 %
Loans receivable5,779,181 5,753,393 25,788 0.4 %
Less: allowance for credit losses on loans(44,723)(44,958)(235)-0.5 %
Net loans receivable5,734,458 5,708,435 26,023 0.5 %
Premises and equipment41,896 42,559 (663)-1.6 %
Federal Home Loan Bank stock55,737 57,212 (1,475)-2.6 %
Accrued interest receivable28,304 27,420 884 3.2 %
Goodwill113,525 113,525 — — %
Core deposit intangible1,080 1,198 (118)-9.8 %
Bank owned life insurance312,050 309,404 2,646 0.9 %
Deferred income taxes, net50,961 51,617 (656)-1.3 %
Other assets39,720 40,185 (465)-1.2 %
Total assets $7,607,656 $7,620,878 $(13,222)-0.2 %
Liabilities
Deposits:
Non-interest-bearing $631,506 $627,180 $4,326 0.7 %
Interest-bearing5,097,576 5,084,370 13,206 0.3 %
Total deposits5,729,082 5,711,550 17,532 0.3 %
Borrowings1,060,000 1,095,000 (35,000)-3.2 %
Advance payments by borrowers for taxes19,317 18,474 843 4.6 %
Other liabilities36,225 38,458 (2,233)-5.8 %
Total liabilities6,844,624 6,863,482 (18,858)-0.3 %
Stockholders' Equity
Common stock648 648 — — %
Paid-in capital495,442 494,959 483 0.1 %
Retained earnings349,881 346,749 3,132 0.9 %
Unearned ESOP shares(17,511)(17,997)486 2.7 %
Accumulated other comprehensive loss(65,428)(66,963)1,535 2.3 %
Total stockholders' equity763,032 757,396 5,636 0.7 %
Total liabilities and stockholders' equity$7,607,656 $7,620,878 $(13,222)-0.2 %
Consolidated capital ratios
Equity to assets10.03 %9.94 %0.09 %
Tangible equity to tangible assets (1)
8.65 %8.56 %0.09 %
Share data
Outstanding shares64,73964,739—— %
Book value per share$11.79 $11.70 $0.09 0.8 %
Tangible book value per share (2)
$10.02 $9.93 $0.09 0.9 %
_________________________
(1)Tangible equity equals total stockholders' equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.
(2)Tangible book value equals total stockholders' equity reduced by goodwill and core deposit intangible assets.
4

Kearny Financial Corp.
Consolidated Statements of Income
(Unaudited)
(Dollars and Shares in Thousands,
Except Per Share Data)		Three Months EndedVariance
or Change		Variance
or Change Pct.
March 31,
2026		December 31,
2025
Interest income
Loans$66,310 $67,410 $(1,100)-1.6 %
Taxable investment securities11,425 11,623 (198)-1.7 %
Tax-exempt investment securities34 35 (1)-2.9 %
Other interest-earning assets1,400 1,584 (184)-11.6 %
Total interest income79,169 80,652 (1,483)-1.8 %
Interest expense
Deposits31,045 33,148 (2,103)-6.3 %
Borrowings8,888 9,535 (647)-6.8 %
Total interest expense39,933 42,683 (2,750)-6.4 %
Net interest income39,236 37,969 1,267 3.3 %
Provision for credit losses 391 567 (176)-31.0 %
Net interest income after provision for credit losses38,845 37,402 1,443 3.9 %
Non-interest income
Fees and service charges922 1,295 (373)-28.8 %
Gain on sale of loans193 224 (31)-13.8 %
Income from bank owned life insurance2,646 2,710 (64)-2.4 %
Electronic banking fees and charges389 473 (84)-17.8 %
Other income1,944 869 1,075 123.7 %
Total non-interest income6,094 5,571 523 9.4 %
Non-interest expense
Salaries and employee benefits19,316 18,373 943 5.1 %
Net occupancy expense of premises3,263 2,888 375 13.0 %
Equipment and systems3,975 4,007 (32)-0.8 %
Advertising and marketing665 412 253 61.4 %
Federal deposit insurance premium1,302 1,357 (55)-4.1 %
Directors' compensation307 306 1 0.3 %
Other expense3,471 3,848 (377)-9.8 %
Total non-interest expense32,299 31,191 1,108 3.6 %
Income before income taxes12,640 11,782 858 7.3 %
Income taxes2,503 2,333 170 7.3 %
Net income$10,137 $9,449 $688 7.3 %
Net income per common share (EPS)
Basic$0.16 $0.15 $0.01 
Diluted$0.16 $0.15 $0.01 
Dividends declared
Cash dividends declared per common share$0.11 $0.11 $— 
Cash dividends declared$7,005 $6,987 $18 
Dividend payout ratio69.1 %73.9 %-4.8 %
Weighted average number of common shares outstanding
Basic62,90862,85850
Diluted63,25163,061190
5

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)
(Dollars in Thousands)Three Months EndedVariance
or Change		Variance
or Change Pct.
March 31,
2026		December 31,
2025
Assets
Interest-earning assets:
Loans receivable, including loans held for sale$5,785,095 $5,778,680 $6,415 0.1 %
Taxable investment securities1,194,487 1,185,602 8,885 0.7 %
Tax-exempt investment securities5,669 5,902 (233)-3.9 %
Other interest-earning assets106,967 123,475 (16,508)-13.4 %
Total interest-earning assets7,092,218 7,093,659 (1,441)-0.0 %
Non-interest-earning assets455,725 455,752 (27)-0.0 %
Total assets $7,547,943 $7,549,411 $(1,468)-0.0 %
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand$2,402,177 $2,385,397 $16,780 0.7 %
Savings761,090 759,247 1,843 0.2 %
Certificates of deposit (retail)1,181,526 1,201,950 (20,424)-1.7 %
Certificates of deposit (brokered)755,461 756,179 (718)-0.1 %
Total interest-bearing deposits5,100,254 5,102,773 (2,519)-0.0 %
Borrowings:
Federal Home Loan Bank advances861,445 998,760 (137,315)-13.7 %
Other borrowings133,833 38,478 95,355 247.8 %
Total borrowings995,278 1,037,238 (41,960)-4.0 %
Total interest-bearing liabilities6,095,532 6,140,011 (44,479)-0.7 %
Non-interest-bearing liabilities:
Non-interest-bearing deposits633,494 595,035 38,459 6.5 %
Other non-interest-bearing liabilities59,644 59,447 197 0.3 %
Total non-interest-bearing liabilities693,138 654,482 38,656 5.9 %
Total liabilities6,788,670 6,794,493 (5,823)-0.1 %
Stockholders' equity759,273 754,918 4,355 0.6 %
Total liabilities and stockholders' equity$7,547,943 $7,549,411 $(1,468)-0.0 %
Average interest-earning assets to average interest-bearing liabilities116.35 %115.53 %0.82 %0.7 %
6

Kearny Financial Corp.
Performance Ratio Highlights
(Unaudited)
Three Months EndedVariance
or Change
March 31,
2026		December 31,
2025
Average yield on interest-earning assets:
Loans receivable, including loans held for sale4.58 %4.67 %-0.09 %
Taxable investment securities3.83 %3.92 %-0.09 %
Tax-exempt investment securities (1)
2.37 %2.36 %0.01 %
Other interest-earning assets5.24 %5.13 %0.11 %
Total interest-earning assets 4.47 %4.55 %-0.08 %
Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand2.34 %2.51 %-0.17 %
Savings 1.26 %1.40 %-0.14 %
Certificates of deposit (retail)3.20 %3.45 %-0.25 %
Certificates of deposit (brokered)2.71 %2.72 %-0.01 %
Total interest-bearing deposits2.43 %2.60 %-0.17 %
Borrowings:
Federal Home Loan Bank advances3.56 %3.66 %-0.10 %
Other borrowings3.66 %4.13 %-0.47 %
Total borrowings3.57 %3.68 %-0.11 %
Total interest-bearing liabilities2.62 %2.78 %-0.16 %
Interest rate spread (2)
1.85 %1.77 %0.08 %
Net interest margin (3)
2.21 %2.14 %0.07 %
Non-interest income to average assets (annualized)0.32 %0.30 %0.02 %
Non-interest expense to average assets (annualized)1.71 %1.65 %0.06 %
Efficiency ratio (4)
71.25 %71.64 %-0.39 %
Return on average assets (annualized)0.54 %0.50 %0.04 %
Return on average equity (annualized)5.34 %5.01 %0.33 %
Return on average tangible equity (annualized) (5)
6.34 %5.96 %0.38 %
_________________________
(1)The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.
(2)Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.
(3)Net interest income divided by average interest-earning assets.
(4)Non-interest expense divided by the sum of net interest income and non-interest income.
(5)Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets.
7


Five-Quarter Financial Trend Analysis
Kearny Financial Corp.
Consolidated Balance Sheets
(Dollars and Shares in Thousands,
Except Per Share Data)		March 31,
2026		December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025
(Unaudited)(Unaudited)(Unaudited)(Audited)(Unaudited)
Assets
Cash and cash equivalents$123,836 $147,340 $130,139 $167,269 $126,095 
Securities available for sale983,325 1,000,397 1,016,182 1,012,969 1,003,393 
Securities held to maturity110,581 112,800 116,681 120,217 124,859 
Loans held-for-sale12,183 8,786 6,650 5,931 6,187 
Loans receivable5,779,181 5,753,393 5,767,419 5,812,937 5,846,175 
Less: allowance for credit losses on loans(44,723)(44,958)(45,060)(46,191)(44,455)
Net loans receivable5,734,458 5,708,435 5,722,359 5,766,746 5,801,720 
Premises and equipment41,896 42,559 43,222 43,897 44,192 
Federal Home Loan Bank stock55,737 57,212 62,011 64,261 62,261 
Accrued interest receivable28,304 27,420 29,460 28,098 28,521 
Goodwill113,525 113,525 113,525 113,525 113,525 
Core deposit intangible1,080 1,198 1,317 1,436 1,554 
Bank owned life insurance312,050 309,404 307,248 304,717 303,629 
Deferred income taxes, net50,961 51,617 51,587 55,203 52,913 
Other assets39,720 40,185 47,629 56,181 64,292 
Total assets $7,607,656 $7,620,878 $7,648,010 $7,740,450 $7,733,141 
Liabilities
Deposits:
Non-interest-bearing $631,506 $627,180 $578,481 $582,045 $587,118 
Interest-bearing5,097,576 5,084,370 5,053,401 5,093,172 5,120,230 
Total deposits5,729,082 5,711,550 5,631,882 5,675,217 5,707,348 
Borrowings1,060,000 1,095,000 1,206,497 1,256,491 1,213,976 
Advance payments by borrowers for taxes19,317 18,474 19,261 19,317 19,981 
Other liabilities36,225 38,458 37,166 43,463 43,723 
Total liabilities6,844,624 6,863,482 6,894,806 6,994,488 6,985,028 
Stockholders' Equity
Common stock648 648 648 646 646 
Paid-in capital495,442 494,959 494,490 494,546 494,131 
Retained earnings349,881 346,749 344,287 341,744 341,921 
Unearned ESOP shares(17,511)(17,997)(18,484)(18,970)(19,457)
Accumulated other comprehensive loss(65,428)(66,963)(67,737)(72,004)(69,128)
Total stockholders' equity763,032 757,396 753,204 745,962 748,113 
Total liabilities and stockholders' equity$7,607,656 $7,620,878 $7,648,010 $7,740,450 $7,733,141 
Consolidated capital ratios
Equity to assets10.03 %9.94 %9.85 %9.64 %9.67 %
Tangible equity to tangible assets (1)
8.65 %8.56 %8.47 %8.27 %8.31 %
Share data
Outstanding shares 64,73964,73964,73964,57764,580
Book value per share$11.79 $11.70 $11.63 $11.55 $11.58 
Tangible book value per share (2)
$10.02 $9.93 $9.86 $9.77 $9.80 
_________________________
(1)Tangible equity equals total stockholders' equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.
(2)Tangible book value equals total stockholders' equity reduced by goodwill and core deposit intangible assets.
8

Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)
(Dollars in Thousands)March 31,
2026		December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025
Loan portfolio composition:
Commercial loans:
Multi-family mortgage$2,555,001 $2,619,124 $2,640,737 $2,709,654 $2,733,406 
Nonresidential mortgage1,012,422 990,178 988,969 986,556 988,074 
Commercial business201,277 169,884 142,304 138,755 140,224 
Construction207,765 181,766 189,626 177,713 174,722 
Total commercial loans3,976,465 3,960,952 3,961,636 4,012,678 4,036,426 
One- to four-family residential mortgage1,741,023 1,730,543 1,749,362 1,748,591 1,761,465 
Consumer loans:
Home equity loans61,379 59,046 54,116 50,737 49,699 
Other consumer2,377 2,523 2,487 2,533 2,859 
Total consumer loans63,756 61,569 56,603 53,270 52,558 
Total loans, excluding yield adjustments5,781,244 5,753,064 5,767,601 5,814,539 5,850,449 
Unaccreted yield adjustments(2,063)329 (182)(1,602)(4,274)
Loans receivable, net of yield adjustments5,779,181 5,753,393 5,767,419 5,812,937 5,846,175 
Less: allowance for credit losses on loans(44,723)(44,958)(45,060)(46,191)(44,455)
Net loans receivable$5,734,458 $5,708,435 $5,722,359 $5,766,746 $5,801,720 
Asset quality:
Nonperforming assets:
Accruing loans - 90 days and over past due$— $— $20,494 $— $— 
Nonaccrual loans52,379 51,306 44,085 45,597 37,683 
Total nonperforming loans52,379 51,306 64,579 45,597 37,683 
Nonaccrual loans held-for-sale— — — — — 
Other real estate owned— — — — — 
Total nonperforming assets$52,379 $51,306 $64,579 $45,597 $37,683 
Nonperforming loans (% total loans)0.91 %0.89 %1.12 %0.78 %0.64 %
Nonperforming assets (% total assets)0.69 %0.67 %0.84 %0.59 %0.49 %
Classified loans$97,384 $97,542 $117,780 $118,418 $113,470 
Allowance for credit losses on loans (ACL):
ACL to total loans0.77 %0.78 %0.78 %0.79 %0.76 %
ACL to nonperforming loans85.38 %87.63 %69.78 %101.30 %117.97 %
Net charge-offs $626 $669 $1,049 $49 $368 
Average net charge-off rate (annualized)0.04 %0.05 %0.07 %0.00 %0.03 %

9

Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)
(Dollars in Thousands)March 31,
2026		December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025
Funding composition:
Deposits:
Non-interest-bearing deposits$631,506 $627,180 $578,481 $582,045 $587,118 
Interest-bearing demand2,375,565 2,376,825 2,334,560 2,362,222 2,410,925 
Savings 763,016 769,742 751,253 754,376 758,239 
Certificates of deposit (retail)1,201,752 1,180,370 1,208,408 1,218,920 1,218,479 
Certificates of deposit (brokered)757,243 757,433 759,180 757,654 732,587 
Interest-bearing deposits5,097,576 5,084,370 5,053,401 5,093,172 5,120,230 
Total deposits5,729,082 5,711,550 5,631,882 5,675,217 5,707,348 
Borrowings:
Federal Home Loan Bank advances900,000 800,000 1,006,497 1,106,491 1,028,976 
Overnight borrowings160,000 295,000 200,000 150,000 185,000 
Total borrowings1,060,000 1,095,000 1,206,497 1,256,491 1,213,976 
Total funding$6,789,082 $6,806,550 $6,838,379 $6,931,708 $6,921,324 
Loans as a % of deposits100.3 %100.1 %101.7 %101.7 %101.8 %
Deposits as a % of total funding84.4 %83.9 %82.4 %81.9 %82.5 %
Borrowings as a % of total funding15.6 %16.1 %17.6 %18.1 %17.5 %
Uninsured deposits:
Uninsured deposits (reported) (1)
$2,199,708 $2,158,440 $2,040,021 $1,989,095 $1,959,070 
Uninsured deposits (adjusted) (2)
$839,094 $800,998 $804,209 $813,780 $799,238 
_________________________
(1)Uninsured deposits of Kearny Bank.
(2)Uninsured deposits of Kearny Bank adjusted to exclude deposits of its wholly-owned subsidiary and holding company and collateralized deposits of state and local governments.
10

Kearny Financial Corp.
Consolidated Statements of Income
(Unaudited)
Three Months Ended
(Dollars and Shares in Thousands,
Except Per Share Data)		March 31,
2026		December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025
Interest income
Loans$66,310 $67,410 $68,349 $66,485 $64,768 
Taxable investment securities11,425 11,623 12,600 12,322 12,738 
Tax-exempt investment securities34 35 41 49 55 
Other interest-earning assets1,400 1,584 1,518 1,549 1,773 
Total interest income79,169 80,652 82,508 80,405 79,334 
Interest expense
Deposits31,045 33,148 33,931 33,607 34,912 
Borrowings8,888 9,535 10,873 10,955 10,380 
Total interest expense39,933 42,683 44,804 44,562 45,292 
Net interest income39,236 37,969 37,704 35,843 34,042 
Provision for (reversal of) credit losses 391 567 (82)1,785 366 
Net interest income after provision for (reversal of) credit losses38,845 37,402 37,786 34,058 33,676 
Non-interest income
Fees and service charges922 1,295 892 655 573 
Gain on sale of loans193 224 199 190 112 
Income from bank owned life insurance2,646 2,710 2,689 2,869 2,617 
Electronic banking fees and charges389 473 416 442 391 
Other income1,944 869 1,651 835 869 
Total non-interest income6,094 5,571 5,847 4,991 4,562 
Non-interest expense
Salaries and employee benefits19,316 18,373 18,745 18,093 17,700 
Net occupancy expense of premises3,263 2,888 3,307 2,820 3,075 
Equipment and systems3,975 4,007 3,974 4,030 3,921 
Advertising and marketing665 412 562 615 609 
Federal deposit insurance premium1,302 1,357 1,301 1,395 1,450 
Directors' compensation307 306 307 307 326 
Other expense3,471 3,848 3,470 3,633 3,309 
Total non-interest expense32,299 31,191 31,666 30,893 30,390 
Income before income taxes12,640 11,782 11,967 8,156 7,848 
Income taxes2,503 2,333 2,461 1,387 1,200 
Net income$10,137 $9,449 $9,506 $6,769 $6,648 
Net income per common share (EPS)
Basic$0.16 $0.15 $0.15 $0.11 $0.11 
Diluted$0.16 $0.15 $0.15 $0.11 $0.11 
Dividends declared
Cash dividends declared per common share$0.11 $0.11 $0.11 $0.11 $0.11 
Cash dividends declared$7,005 $6,987 $6,963 $6,946 $6,933 
Dividend payout ratio69.1 %73.9 %73.2 %102.6 %104.3 %
Weighted average number of common shares outstanding
Basic62,90862,85862,74162,59762,548
Diluted63,25163,06162,95162,75562,713
11

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)
Three Months Ended
(Dollars in Thousands)March 31,
2026		December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025
Assets
Interest-earning assets:
Loans receivable, including loans held-for-sale$5,785,095 $5,778,680 $5,806,767 $5,830,421 $5,805,045 
Taxable investment securities1,194,487 1,185,602 1,236,705 1,227,825 1,251,612 
Tax-exempt investment securities5,669 5,902 6,856 8,039 9,135 
Other interest-earning assets106,967 123,475 115,776 117,622 110,736 
Total interest-earning assets7,092,218 7,093,659 7,166,104 7,183,907 7,176,528 
Non-interest-earning assets455,725 455,752 453,215 454,975 457,206 
Total assets $7,547,943 $7,549,411 $7,619,319 $7,638,882 $7,633,734 
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand$2,402,177 $2,385,397 $2,343,809 $2,342,523 $2,405,974 
Savings 761,090 759,247 754,244 754,192 751,243 
Certificates of deposit (retail)1,181,526 1,201,950 1,211,026 1,215,661 1,215,767 
Certificates of deposit (brokered)755,461 756,179 755,813 744,345 730,612 
Total interest-bearing deposits5,100,254 5,102,773 5,064,892 5,056,721 5,103,596 
Borrowings:
Federal Home Loan Bank advances861,445 998,760 1,077,146 1,083,902 1,028,958 
Other borrowings133,833 38,478 85,489 107,582 93,389 
Total borrowings995,278 1,037,238 1,162,635 1,191,484 1,122,347 
Total interest-bearing liabilities6,095,532 6,140,011 6,227,527 6,248,205 6,225,943 
Non-interest-bearing liabilities:
Non-interest-bearing deposits633,494 595,035 581,625 582,085 602,647 
Other non-interest-bearing liabilities59,644 59,447 65,024 64,405 59,919 
Total non-interest-bearing liabilities693,138 654,482 646,649 646,490 662,566 
Total liabilities6,788,670 6,794,493 6,874,176 6,894,695 6,888,509 
Stockholders' equity759,273 754,918 745,143 744,187 745,225 
Total liabilities and stockholders' equity$7,547,943 $7,549,411 $7,619,319 $7,638,882 $7,633,734 
Average interest-earning assets to average
 interest-bearing liabilities
116.35 %115.53 %115.07 %114.98 %115.27 %
12

Kearny Financial Corp.
Performance Ratio Highlights
Three Months Ended
March 31,
2026		December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025
Average yield on interest-earning assets:
Loans receivable, including loans held-for-sale4.58 %4.67 %4.71 %4.56 %4.46 %
Taxable investment securities3.83 %3.92 %4.08 %4.01 %4.07 %
Tax-exempt investment securities (1)
2.37 %2.36 %2.42 %2.43 %2.43 %
Other interest-earning assets5.24 %5.13 %5.24 %5.27 %6.40 %
Total interest-earning assets4.47 %4.55 %4.61 %4.48 %4.42 %
Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand2.34 %2.51 %2.63 %2.63 %2.73 %
Savings 1.26 %1.40 %1.41 %1.33 %1.30 %
Certificates of deposit (retail)3.20 %3.45 %3.56 %3.56 %3.73 %
Certificates of deposit (brokered)2.71 %2.72 %2.67 %2.62 %2.58 %
Total interest-bearing deposits2.43 %2.60 %2.68 %2.66 %2.74 %
Borrowings:
Federal Home Loan Bank advances3.56 %3.66 %3.69 %3.60 %3.63 %
Other borrowings3.66 %4.13 %4.44 %4.45 %4.41 %
Total borrowings3.57 %3.68 %3.74 %3.68 %3.70 %
Total interest-bearing liabilities2.62 %2.78 %2.88 %2.85 %2.91 %
Interest rate spread (2)
1.85 %1.77 %1.73 %1.62 %1.51 %
Net interest margin (3)
2.21 %2.14 %2.10 %2.00 %1.90 %
Non-interest income to average assets (annualized)0.32 %0.30 %0.31 %0.26 %0.24 %
Non-interest expense to average assets (annualized)1.71 %1.65 %1.66 %1.62 %1.59 %
Efficiency ratio (4)
71.25 %71.64 %72.71 %75.66 %78.72 %
Return on average assets (annualized)0.54 %0.50 %0.50 %0.35 %0.35 %
Return on average equity (annualized)5.34 %5.01 %5.10 %3.64 %3.57 %
Return on average tangible equity (annualized) (5)
6.34 %5.96 %6.09 %4.36 %4.28 %
_________________________
(1)The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.
(2)Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.
(3)Net interest income divided by average interest-earning assets.
(4)Non-interest expense divided by the sum of net interest income and non-interest income.
(5)Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets.
13

The following tables provide a reconciliation of certain financial measures calculated in accordance with Generally Accepted Accounting Principles (“GAAP”) (as reported) and non-GAAP measures. These non-GAAP measures provide additional information which allow readers to evaluate the ongoing performance of the Company. They are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. In all cases, it should be understood that non-GAAP per share measures do not depict amounts that accrue directly to the benefit of shareholders.
Kearny Financial Corp.
Reconciliation of GAAP to Non-GAAP
(Unaudited)
Three Months Ended
(Dollars and Shares in Thousands,
Except Per Share Data)		March 31,
2026		December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025
Adjusted net income:
Net income (GAAP)$10,137 $9,449 $9,506 $6,769 $6,648 
Non-recurring transactions - net of tax:
Branch consolidation expenses— — 178 — — 
Gain on sale of property held for sale(724)— (532)— — 
Adjusted net income$9,413 $9,449 $9,152 $6,769 $6,648 
Calculation of pre-tax, pre-provision net revenue:
Net income (GAAP)$10,137 $9,449 $9,506 $6,769 $6,648 
Adjustments to net income (GAAP):
Provision for income taxes2,503 2,333 2,461 1,387 1,200 
Provision for (reversal of) credit losses391 567 (82)1,785 366 
Pre-tax, pre-provision net revenue (non-GAAP)$13,031 $12,349 $11,885 $9,941 $8,214 
Adjusted earnings per share:
Weighted average common shares - basic62,90862,85862,74162,59762,548
Weighted average common shares - diluted63,25163,06162,95162,75562,713
Earnings per share - basic (GAAP)$0.16 $0.15 $0.15 $0.11 $0.11 
Earnings per share - diluted (GAAP)$0.16 $0.15 $0.15 $0.11 $0.11 
Adjusted earnings per share - basic (non-GAAP)$0.15 $0.15 $0.15 $0.11 $0.11 
Adjusted earnings per share - diluted (non-GAAP)$0.15 $0.15 $0.15 $0.11 $0.11 
Pre-tax, pre-provision net revenue per share:
Pre-tax, pre-provision net revenue per share - basic
  (non-GAAP)
$0.21 $0.20 $0.19 $0.16 $0.13 
Pre-tax, pre-provision net revenue per share - diluted
  (non-GAAP)
$0.21 $0.20 $0.19 $0.16 $0.13 
Adjusted return on average assets:
Total average assets$7,547,943 $7,549,411 $7,619,319 $7,638,882 $7,633,734 
Return on average assets (GAAP)0.54 %0.50 %0.50 %0.35 %0.35 %
Adjusted return on average assets (non-GAAP)0.50 %0.50 %0.48 %0.35 %0.35 %
Adjusted return on average equity:
Total average equity$759,273 $754,918 $745,143 $744,187 $745,225 
Return on average equity (GAAP)5.34 %5.01 %5.10 %3.64 %3.57 %
Adjusted return on average equity (non-GAAP)4.96 %5.01 %4.91 %3.64 %3.57 %
14

Kearny Financial Corp.
Reconciliation of GAAP to Non-GAAP
(Unaudited)
Three Months Ended
(Dollars and Shares in Thousands,
Except Per Share Data)		March 31,
2026		December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025
Adjusted return on average tangible equity:
Total average equity$759,273 $754,918 $745,143 $744,187 $745,225 
Less: average goodwill(113,525)(113,525)(113,525)(113,525)(113,525)
Less: average other intangible assets(1,157)(1,276)(1,395)(1,513)(1,636)
Total average tangible equity$644,591 $640,117 $630,223 $629,149 $630,064 
Return on average tangible equity (non-GAAP)6.34 %5.96 %6.09 %4.36 %4.28 %
Adjusted return on average tangible equity (non-GAAP)5.90 %5.96 %5.87 %4.36 %4.28 %
Adjusted non-interest expense ratio:
Non-interest expense (GAAP)$32,299 $31,191 $31,666 $30,893 $30,390 
Non-recurring transactions:
Branch consolidation expenses— — (250)— — 
Non-interest expense (non-GAAP)$32,299 $31,191 $31,416 $30,893 $30,390 
Non-interest expense ratio (GAAP)1.71 %1.65 %1.66 %1.62 %1.59 %
Adjusted non-interest expense ratio (non-GAAP)1.71 %1.65 %1.65 %1.62 %1.59 %
Adjusted efficiency ratio:
Non-interest expense (non-GAAP)$32,299 $31,191 $31,416 $30,893 $30,390 
Net interest income (GAAP)$39,236 $37,969 $37,704 $35,843 $34,042 
Total non-interest income (GAAP)6,094 5,571 5,847 4,991 4,562 
Non-recurring transactions:
Gain on sale of property held for sale(1,020)— (749)— — 
Total revenue (non-GAAP)$44,310 $43,540 $42,802 $40,834 $38,604 
Efficiency ratio (GAAP)71.25 %71.64 %72.71 %75.66 %78.72 %
Adjusted efficiency ratio (non-GAAP)72.89 %71.64 %73.40 %75.66 %78.72 %

15