EX-99.1 2 krny-20251231xexx991.htm EX-99.1 Document

Exhibit 99.1
FOR IMMEDIATE RELEASE
January 22, 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 SECOND QUARTER FISCAL 2026 RESULTS
AND DECLARATION OF CASH DIVIDEND

Fairfield, N.J., January 22, 2026 – Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), reported net income for the quarter ended December 31, 2025 of $9.4 million, or $0.15 per diluted share, compared to $9.5 million, or $0.15 per diluted share, for the quarter ended September 30, 2025.

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on February 18, 2026, to stockholders of record as of February 4, 2026.

Craig L. Montanaro, President and Chief Executive Officer, commented, “We are pleased to report continued improvement in our core earnings. Net interest margin expanded, up 32 basis points year-over-year, reflecting the strategic remix of our balance sheet and the repricing of our loan portfolio. In addition, recent reductions in the federal funds rate are expected to serve as an earnings tailwind, given our liability-sensitive balance sheet.”

Mr. Montanaro continued, “In addition, we made progress on several key strategic initiatives this quarter. First, our previously announced partnership with The Lab Consulting commenced this quarter, and a bank-wide opportunity assessment was completed. Significant automation and process improvement opportunities have been identified, and near-term deliverables under this initiative remain centered on strengthening operational efficiency, enhancing the client experience, and supporting sustainable growth in the periods ahead. Second, this quarter we were pleased to add a five-person residential lending team to grow our pipeline of residential loans held-for-sale and support fee income generation. Their expertise supports our efforts to diversify revenue streams and deepen our residential lending franchise.”

Second Quarter Highlights
•Pre-tax, pre-provision net revenue increased 3.9% to $12.3 million, reflecting ongoing strengthening of core earnings.
•Net interest margin expanded by four basis points to 2.14%, extending the momentum of margin improvement from the previous quarter.
•Non-performing assets decreased 20.6% to $51.3 million, or 0.67% of total assets, demonstrating that credit quality remained solid and continued to improve.
•The Company advanced its loan portfolio diversification strategy, growing commercial business and home equity loans while strategically reducing multifamily mortgage loans.
•Total deposits increased by $79.7 million, or 1.4%, providing additional funding capacity to reduce higher-cost wholesale borrowings and further strengthen the balance sheet.
Balance Sheet
•Total assets were $7.62 billion at December 31, 2025, a decrease of $27.1 million, or 0.4%, from September 30, 2025.
•Investment securities totaled $1.11 billion at December 31, 2025, a decrease of $19.7 million, or 1.7%, from September 30, 2025.
•Loans receivable totaled $5.75 billion at December 31, 2025, a decrease of $14.0 million, or 0.2%, from September 30, 2025, primarily reflecting a decrease in multifamily and residential mortgage loans, partially offset by increases in commercial and industrial (“C&I”) and home equity loans.
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•Deposits were $5.71 billion at December 31, 2025, an increase of $79.7 million, or 1.4%, from September 30, 2025, primarily driven by increases in non-interest bearing and interest bearing demand deposits, partially offset by a decrease in certificates of deposits. The increase in non-interest bearing demand deposits was largely the result of migrating $69.8 million from a consumer interest bearing product to a non-interest bearing product.
•Borrowings were $1.10 billion at December 31, 2025, a decrease of $111.5 million, or 9.2%, from September 30, 2025, reflecting reductions in Federal Home Loan Bank (“FHLB”) advances, partially offset by an increase in overnight borrowings.
•At December 31, 2025, the Company maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.70 billion, representing 35.4% of total assets.
Earnings
Net Interest Income and Net Interest Margin
•Net interest margin expanded by four basis points to 2.14% for the quarter ended December 31, 2025. The increase for the quarter was primarily driven by lower costs on interest-bearing liabilities and a reduction in borrowings, partially offset by lower average yields and balances on interest-earning assets.
•For the quarter ended December 31, 2025, net interest income increased $265,000 to $38.0 million from $37.7 million for the quarter ended September 30, 2025. Included in net interest income for the quarters ended December 31, 2025 and September 30, 2025, respectively, was purchase accounting accretion of $494,000 and $601,000, and loan prepayment penalty income of $544,000 and $490,000.
Non-Interest Income
•For the quarter ended December 31, 2025, non-interest income decreased $276,000, or 4.7%, to $5.6 million from $5.8 million for the quarter ended September 30, 2025, primarily driven by the absence of a non-recurring pre-tax gain of $749,000 on the sale of property held for sale recorded in the prior period. Excluding this item, non-interest income increased $473,000, or 9.3%, to $5.6 million for the quarter ended December 31, 2025.
•Fees and service charges increased $403,000, or 45.2%, to $1.3 million for the quarter ended December 31, 2025 from $892,000 for the quarter ended September 30, 2025. The increase primarily reflected higher loan related fee income of $245,000 associated with the payoff of a single construction loan, and $71,000 of higher branch related fee income.
•Electronic banking fees and charges increased $57,000, or 13.7%, to $473,000 for the quarter ended December 31, 2025 from $416,000 for the quarter ended September 30, 2025, primarily driven by higher income from interchange fees.
Non-Interest Expense
•For the quarter ended December 31, 2025, non-interest expense decreased $475,000, or 1.5%, to $31.2 million from $31.7 million for the quarter ended September 30, 2025, primarily driven by declines in salary and benefits, net occupancy, and advertising, partially offset by increases in other expense.
•Salary and benefits expense decreased $372,000 to $18.4 million for the quarter ended December 31, 2025 from $18.7 million for the quarter ended September 30, 2025, primarily driven by a decline in payroll taxes, partially offset by an increase in incentive compensation.
•Net occupancy expense of premises decreased $419,000 to $2.9 million for the quarter ended December 31, 2025 from $3.3 million for the quarter ended September 30, 2025, primarily driven by the absence of non-recurring branch consolidation and maintenance expenses recorded in the prior period. Excluding these items, net occupancy expense of premises decreased $67,000 to $2.9 million for the quarter ended December 31, 2025, primarily driven by lower repairs and other maintenance expense, partially offset by higher snow removal expenses.
•Advertising and marketing expense decreased $150,000 to $412,000 for the quarter ended December 31, 2025 from $562,000 for the quarter ended September 30, 2025, primarily driven by lower advertising expenses across various formats.
•Other expense increased $378,000 to $3.8 million for the quarter December 31, 2025 from $3.5 million for the quarter ended September 30, 2025, primarily driven by $242,000 in non-recurring professional fees incurred in the current period associated with the Company’s partnership with The Lab Consulting and higher loan related legal expenses. Changes in the other components of non-interest expense between comparative periods reflected normal operating fluctuations within those line items.
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Income Taxes
•Income tax expense totaled $2.3 million for the quarter ended December 31, 2025 compared to $2.5 million for the quarter ended September 30, 2025, resulting in an effective tax rate of 19.8% and 20.6%, respectively.
Asset Quality
•The balance of non-performing assets decreased to $51.3 million, or 0.67% of total assets, at December 31, 2025 from $64.6 million, or 0.84% of total assets, at September 30, 2025. The decrease was primarily driven by the full repayment of a previously disclosed non-performing construction loan.
•Net charge-offs totaled $669,000, or 0.05% of average loans, on an annualized basis, for the quarter ended December 31, 2025, compared to $1.0 million, or 0.07% of average loans, on an annualized basis, for the quarter ended September 30, 2025. Charge-offs in the current quarter were related to the resolution of two individually evaluated loans that were partially reserved for in prior periods.
•For the quarter ended December 31, 2025, the Company recorded a provision for credit losses of $567,000, compared to a reversal of credit losses of $82,000 for the quarter ended September 30, 2025. The increase in the provision was primarily driven by quantitative risk-factor adjustments and individually evaluated reserves associated with a non-performing C&I loan that was fully charged off during the quarter, partially offset by decreases in the balance of loans receivable.
•Allowance for credit losses (“ACL”) was $45.0 million, or 0.78% of total loans, at December 31, 2025, a decrease of $102,000 from $45.1 million, or 0.78% of total loans, at September 30, 2025. The decrease in the ACL from September 30, 2025 was largely attributable to a reduction in reserves for individually evaluated loans, resulting from the charge-offs noted above.
Capital
•For the quarter ended December 31, 2025, book value per share increased $0.07, or 0.6%, to $11.70 while tangible book value per share increased $0.07, or 0.7%, to $9.93.
•At December 31, 2025, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $68.2 million, partially offset by after-tax unrealized gains on derivatives of $663,000. After-tax net unrecognized losses on securities held to maturity of $7.9 million were not reflected in total stockholders’ equity.
•At December 31, 2025, the Company’s tangible equity to tangible assets ratio equaled 8.56%. Additionally, the regulatory capital ratios of both the Company and the Bank continued to be in excess of all applicable regulatory requirements as of December 31, 2025.

This earnings release should be read in conjunction with Kearny Financial Corp.’s Q2 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
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Linked-Quarter Comparative Financial Analysis
Kearny Financial Corp.
Consolidated Balance Sheets
(Unaudited)
(Dollars and Shares in Thousands,
Except Per Share Data)		December 31,
2025		September 30,
2025		Variance
or Change		Variance
or Change Pct.
Assets
Cash and cash equivalents$147,340 $130,139 $17,201 13.2 %
Securities available for sale1,000,397 1,016,182 (15,785)-1.6 %
Securities held to maturity112,800 116,681 (3,881)-3.3 %
Loans held-for-sale8,786 6,650 2,136 32.1 %
Loans receivable5,753,393 5,767,419 (14,026)-0.2 %
Less: allowance for credit losses on loans(44,958)(45,060)(102)-0.2 %
Net loans receivable5,708,435 5,722,359 (13,924)-0.2 %
Premises and equipment42,559 43,222 (663)-1.5 %
Federal Home Loan Bank stock57,212 62,011 (4,799)-7.7 %
Accrued interest receivable27,420 29,460 (2,040)-6.9 %
Goodwill113,525 113,525 — — %
Core deposit intangible1,198 1,317 (119)-9.0 %
Bank owned life insurance309,404 307,248 2,156 0.7 %
Deferred income taxes, net51,617 51,587 30 0.1 %
Other assets40,185 47,629 (7,444)-15.6 %
Total assets $7,620,878 $7,648,010 $(27,132)-0.4 %
Liabilities
Deposits:
Non-interest-bearing $627,180 $578,481 $48,699 8.4 %
Interest-bearing5,084,370 5,053,401 30,969 0.6 %
Total deposits5,711,550 5,631,882 79,668 1.4 %
Borrowings1,095,000 1,206,497 (111,497)-9.2 %
Advance payments by borrowers for taxes18,474 19,261 (787)-4.1 %
Other liabilities38,458 37,166 1,292 3.5 %
Total liabilities6,863,482 6,894,806 (31,324)-0.5 %
Stockholders' Equity
Common stock648 648 — — %
Paid-in capital494,959 494,490 469 0.1 %
Retained earnings346,749 344,287 2,462 0.7 %
Unearned ESOP shares(17,997)(18,484)487 2.6 %
Accumulated other comprehensive loss(66,963)(67,737)774 1.1 %
Total stockholders' equity757,396 753,204 4,192 0.6 %
Total liabilities and stockholders' equity$7,620,878 $7,648,010 $(27,132)-0.4 %
Consolidated capital ratios
Equity to assets9.94 %9.85 %0.09 %
Tangible equity to tangible assets (1)
8.56 %8.47 %0.09 %
Share data
Outstanding shares64,73964,739—— %
Book value per share$11.70 $11.63 $0.07 0.6 %
Tangible book value per share (2)
$9.93 $9.86 $0.07 0.7 %
_________________________
(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.
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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.
December 31,
2025		September 30,
2025
Interest income
Loans$67,410 $68,349 $(939)-1.4 %
Taxable investment securities11,623 12,600 (977)-7.8 %
Tax-exempt investment securities35 41 (6)-14.6 %
Other interest-earning assets1,584 1,518 66 4.3 %
Total interest income80,652 82,508 (1,856)-2.2 %
Interest expense
Deposits33,148 33,931 (783)-2.3 %
Borrowings9,535 10,873 (1,338)-12.3 %
Total interest expense42,683 44,804 (2,121)-4.7 %
Net interest income37,969 37,704 265 0.7 %
Provision for (reversal of) credit losses 567 (82)649 -791.5 %
Net interest income after provision for (reversal of) credit losses37,402 37,786 (384)-1.0 %
Non-interest income
Fees and service charges1,295 892 403 45.2 %
Gain on sale of loans224 199 25 12.6 %
Income from bank owned life insurance2,710 2,689 21 0.8 %
Electronic banking fees and charges473 416 57 13.7 %
Other income869 1,651 (782)-47.4 %
Total non-interest income5,571 5,847 (276)-4.7 %
Non-interest expense
Salaries and employee benefits18,373 18,745 (372)-2.0 %
Net occupancy expense of premises2,888 3,307 (419)-12.7 %
Equipment and systems4,007 3,974 33 0.8 %
Advertising and marketing412 562 (150)-26.7 %
Federal deposit insurance premium1,357 1,301 56 4.3 %
Directors' compensation306 307 (1)-0.3 %
Other expense3,848 3,470 378 10.9 %
Total non-interest expense31,191 31,666 (475)-1.5 %
Income before income taxes11,782 11,967 (185)-1.5 %
Income taxes2,333 2,461 (128)-5.2 %
Net income$9,449 $9,506 $(57)-0.6 %
Net income per common share (EPS)
Basic$0.15 $0.15 $— 
Diluted$0.15 $0.15 $— 
Dividends declared
Cash dividends declared per common share$0.11 $0.11 $— 
Cash dividends declared$6,987 $6,963 $24 
Dividend payout ratio73.9 %73.2 %0.7 %
Weighted average number of common shares outstanding
Basic62,85862,741117
Diluted63,06162,951110
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Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)
(Dollars in Thousands)Three Months EndedVariance
or Change		Variance
or Change Pct.
December 31,
2025		September 30,
2025
Assets
Interest-earning assets:
Loans receivable, including loans held for sale$5,778,680 $5,806,767 $(28,087)-0.5 %
Taxable investment securities1,185,602 1,236,705 (51,103)-4.1 %
Tax-exempt investment securities5,902 6,856 (954)-13.9 %
Other interest-earning assets123,475 115,776 7,699 6.6 %
Total interest-earning assets7,093,659 7,166,104 (72,445)-1.0 %
Non-interest-earning assets455,752 453,215 2,537 0.6 %
Total assets $7,549,411 $7,619,319 $(69,908)-0.9 %
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand$2,385,397 $2,343,809 $41,588 1.8 %
Savings759,247 754,244 5,003 0.7 %
Certificates of deposit (retail)1,201,950 1,211,026 (9,076)-0.7 %
Certificates of deposit (brokered)756,179 755,813 366 0.0 %
Total interest-bearing deposits5,102,773 5,064,892 37,881 0.7 %
Borrowings:
Federal Home Loan Bank advances998,760 1,077,146 (78,386)-7.3 %
Other borrowings38,478 85,489 (47,011)-55.0 %
Total borrowings1,037,238 1,162,635 (125,397)-10.8 %
Total interest-bearing liabilities6,140,011 6,227,527 (87,516)-1.4 %
Non-interest-bearing liabilities:
Non-interest-bearing deposits595,035 581,625 13,410 2.3 %
Other non-interest-bearing liabilities59,447 65,024 (5,577)-8.6 %
Total non-interest-bearing liabilities654,482 646,649 7,833 1.2 %
Total liabilities6,794,493 6,874,176 (79,683)-1.2 %
Stockholders' equity754,918 745,143 9,775 1.3 %
Total liabilities and stockholders' equity$7,549,411 $7,619,319 $(69,908)-0.9 %
Average interest-earning assets to average interest-bearing liabilities115.53 %115.07 %0.46 %0.4 %
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Kearny Financial Corp.
Performance Ratio Highlights
(Unaudited)
Three Months EndedVariance
or Change
December 31,
2025		September 30,
2025
Average yield on interest-earning assets:
Loans receivable, including loans held for sale4.67 %4.71 %-0.04 %
Taxable investment securities3.92 %4.08 %-0.16 %
Tax-exempt investment securities (1)
2.36 %2.42 %-0.06 %
Other interest-earning assets5.13 %5.24 %-0.11 %
Total interest-earning assets 4.55 %4.61 %-0.06 %
Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand2.51 %2.63 %-0.12 %
Savings 1.40 %1.41 %-0.01 %
Certificates of deposit (retail)3.45 %3.56 %-0.11 %
Certificates of deposit (brokered)2.72 %2.67 %0.05 %
Total interest-bearing deposits2.60 %2.68 %-0.08 %
Borrowings:
Federal Home Loan Bank advances3.66 %3.69 %-0.03 %
Other borrowings4.13 %4.44 %-0.31 %
Total borrowings3.68 %3.74 %-0.06 %
Total interest-bearing liabilities2.78 %2.88 %-0.10 %
Interest rate spread (2)
1.77 %1.73 %0.04 %
Net interest margin (3)
2.14 %2.10 %0.04 %
Non-interest income to average assets (annualized)0.30 %0.31 %-0.01 %
Non-interest expense to average assets (annualized)1.65 %1.66 %-0.01 %
Efficiency ratio (4)
71.64 %72.71 %-1.07 %
Return on average assets (annualized)0.50 %0.50 %— %
Return on average equity (annualized)5.01 %5.10 %-0.09 %
Return on average tangible equity (annualized) (5)
5.96 %6.09 %-0.13 %
_________________________
(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.
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Five-Quarter Financial Trend Analysis
Kearny Financial Corp.
Consolidated Balance Sheets
(Dollars and Shares in Thousands,
Except Per Share Data)		December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025		December 31,
2024
(Unaudited)(Unaudited)(Audited)(Unaudited)(Unaudited)
Assets
Cash and cash equivalents$147,340 $130,139 $167,269 $126,095 $141,554 
Securities available for sale1,000,397 1,016,182 1,012,969 1,003,393 1,018,279 
Securities held to maturity112,800 116,681 120,217 124,859 127,266 
Loans held-for-sale8,786 6,650 5,931 6,187 5,695 
Loans receivable5,753,393 5,767,419 5,812,937 5,846,175 5,791,758 
Less: allowance for credit losses on loans(44,958)(45,060)(46,191)(44,455)(44,457)
Net loans receivable5,708,435 5,722,359 5,766,746 5,801,720 5,747,301 
Premises and equipment42,559 43,222 43,897 44,192 45,127 
Federal Home Loan Bank stock57,212 62,011 64,261 62,261 64,443 
Accrued interest receivable27,420 29,460 28,098 28,521 27,772 
Goodwill113,525 113,525 113,525 113,525 113,525 
Core deposit intangible1,198 1,317 1,436 1,554 1,679 
Bank owned life insurance309,404 307,248 304,717 303,629 301,339 
Deferred income taxes, net51,617 51,587 55,203 52,913 53,325 
Other assets40,185 47,629 56,181 64,292 84,080 
Total assets $7,620,878 $7,648,010 $7,740,450 $7,733,141 $7,731,385 
Liabilities
Deposits:
Non-interest-bearing $627,180 $578,481 $582,045 $587,118 $601,510 
Interest-bearing5,084,370 5,053,401 5,093,172 5,120,230 5,069,550 
Total deposits5,711,550 5,631,882 5,675,217 5,707,348 5,671,060 
Borrowings1,095,000 1,206,497 1,256,491 1,213,976 1,258,949 
Advance payments by borrowers for taxes18,474 19,261 19,317 19,981 17,986 
Other liabilities38,458 37,166 43,463 43,723 38,537 
Total liabilities6,863,482 6,894,806 6,994,488 6,985,028 6,986,532 
Stockholders' Equity
Common stock648 648 646 646 646 
Paid-in capital494,959 494,490 494,546 494,131 494,092 
Retained earnings346,749 344,287 341,744 341,921 342,155 
Unearned ESOP shares(17,997)(18,484)(18,970)(19,457)(19,943)
Accumulated other comprehensive loss(66,963)(67,737)(72,004)(69,128)(72,097)
Total stockholders' equity757,396 753,204 745,962 748,113 744,853 
Total liabilities and stockholders' equity$7,620,878 $7,648,010 $7,740,450 $7,733,141 $7,731,385 
Consolidated capital ratios
Equity to assets9.94 %9.85 %9.64 %9.67 %9.63 %
Tangible equity to tangible assets (1)
8.56 %8.47 %8.27 %8.31 %8.27 %
Share data
Outstanding shares 64,73964,73964,57764,58064,580
Book value per share$11.70 $11.63 $11.55 $11.58 $11.53 
Tangible book value per share (2)
$9.93 $9.86 $9.77 $9.80 $9.75 
_________________________
(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.
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Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)
(Dollars in Thousands)December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025		December 31,
2024
Loan portfolio composition:
Commercial loans:
Multi-family mortgage$2,619,124 $2,640,737 $2,709,654 $2,733,406 $2,722,623 
Nonresidential mortgage990,178 988,969 986,556 988,074 950,194 
Commercial business169,884 142,304 138,755 140,224 135,740 
Construction181,766 189,626 177,713 174,722 176,704 
Total commercial loans3,960,952 3,961,636 4,012,678 4,036,426 3,985,261 
One- to four-family residential mortgage1,730,543 1,749,362 1,748,591 1,761,465 1,765,160 
Consumer loans:
Home equity loans59,046 54,116 50,737 49,699 47,101 
Other consumer2,523 2,487 2,533 2,859 2,778 
Total consumer loans61,569 56,603 53,270 52,558 49,879 
Total loans, excluding yield adjustments5,753,064 5,767,601 5,814,539 5,850,449 5,800,300 
Unaccreted yield adjustments329 (182)(1,602)(4,274)(8,542)
Loans receivable, net of yield adjustments5,753,393 5,767,419 5,812,937 5,846,175 5,791,758 
Less: allowance for credit losses on loans(44,958)(45,060)(46,191)(44,455)(44,457)
Net loans receivable$5,708,435 $5,722,359 $5,766,746 $5,801,720 $5,747,301 
Asset quality:
Nonperforming assets:
Accruing loans - 90 days and over past due$— $20,494 $— $— $— 
Nonaccrual loans51,306 44,085 45,597 37,683 37,697 
Total nonperforming loans51,306 64,579 45,597 37,683 37,697 
Nonaccrual loans held-for-sale— — — — — 
Other real estate owned— — — — — 
Total nonperforming assets$51,306 $64,579 $45,597 $37,683 $37,697 
Nonperforming loans (% total loans)0.89 %1.12 %0.78 %0.64 %0.65 %
Nonperforming assets (% total assets)0.67 %0.84 %0.59 %0.49 %0.49 %
Classified loans$97,542 $117,780 $118,418 $113,470 $106,718 
Allowance for credit losses on loans (ACL):
ACL to total loans0.78 %0.78 %0.79 %0.76 %0.77 %
ACL to nonperforming loans87.63 %69.78 %101.30 %117.97 %117.93 %
Net charge-offs $669 $1,049 $49 $368 $573 
Average net charge-off rate (annualized)0.05 %0.07 %0.00 %0.03 %0.04 %

9

Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)
(Dollars in Thousands)December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025		December 31,
2024
Funding composition:
Deposits:
Non-interest-bearing deposits$627,180 $578,481 $582,045 $587,118 $601,510 
Interest-bearing demand2,376,825 2,334,560 2,362,222 2,410,925 2,380,408 
Savings 769,742 751,253 754,376 758,239 742,266 
Certificates of deposit (retail)1,180,370 1,208,408 1,218,920 1,218,479 1,213,887 
Certificates of deposit (brokered)757,433 759,180 757,654 732,587 732,989 
Interest-bearing deposits5,084,370 5,053,401 5,093,172 5,120,230 5,069,550 
Total deposits5,711,550 5,631,882 5,675,217 5,707,348 5,671,060 
Borrowings:
Federal Home Loan Bank advances800,000 1,006,497 1,106,491 1,028,976 1,028,949 
Overnight borrowings295,000 200,000 150,000 185,000 230,000 
Total borrowings1,095,000 1,206,497 1,256,491 1,213,976 1,258,949 
Total funding$6,806,550 $6,838,379 $6,931,708 $6,921,324 $6,930,009 
Loans as a % of deposits100.1 %101.7 %101.7 %101.8 %101.4 %
Deposits as a % of total funding83.9 %82.4 %81.9 %82.5 %81.8 %
Borrowings as a % of total funding16.1 %17.6 %18.1 %17.5 %18.2 %
Uninsured deposits:
Uninsured deposits (reported) (1)
$2,158,440 $2,040,021 $1,989,095 $1,959,070 $1,935,607 
Uninsured deposits (adjusted) (2)
$800,998 $804,209 $813,780 $799,238 $797,721 
_________________________
(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)		December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025		December 31,
2024
Interest income
Loans$67,410 $68,349 $66,485 $64,768 $65,408 
Taxable investment securities11,623 12,600 12,322 12,738 13,803 
Tax-exempt investment securities35 41 49 55 59 
Other interest-earning assets1,584 1,518 1,549 1,773 2,215 
Total interest income80,652 82,508 80,405 79,334 81,485 
Interest expense
Deposits33,148 33,931 33,607 34,912 36,721 
Borrowings9,535 10,873 10,955 10,380 12,152 
Total interest expense42,683 44,804 44,562 45,292 48,873 
Net interest income37,969 37,704 35,843 34,042 32,612 
Provision for (reversal of) credit losses 567 (82)1,785 366 107 
Net interest income after provision for (reversal of) credit losses37,402 37,786 34,058 33,676 32,505 
Non-interest income
Fees and service charges1,295 892 655 573 627 
Gain on sale of loans224 199 190 112 304 
Income from bank owned life insurance2,710 2,689 2,869 2,617 2,619 
Electronic banking fees and charges473 416 442 391 493 
Other income869 1,651 835 869 830 
Total non-interest income5,571 5,847 4,991 4,562 4,873 
Non-interest expense
Salaries and employee benefits18,373 18,745 18,093 17,700 17,579 
Net occupancy expense of premises2,888 3,307 2,820 3,075 2,831 
Equipment and systems4,007 3,974 4,030 3,921 3,892 
Advertising and marketing412 562 615 609 311 
Federal deposit insurance premium1,357 1,301 1,395 1,450 1,503 
Directors' compensation306 307 307 326 361 
Other expense3,848 3,470 3,633 3,309 3,084 
Total non-interest expense31,191 31,666 30,893 30,390 29,561 
Income before income taxes11,782 11,967 8,156 7,848 7,817 
Income taxes2,333 2,461 1,387 1,200 1,251 
Net income$9,449 $9,506 $6,769 $6,648 $6,566 
Net income per common share (EPS)
Basic$0.15 $0.15 $0.11 $0.11 $0.11 
Diluted$0.15 $0.15 $0.11 $0.11 $0.10 
Dividends declared
Cash dividends declared per common share$0.11 $0.11 $0.11 $0.11 $0.11 
Cash dividends declared$6,987 $6,963 $6,946 $6,933 $6,933 
Dividend payout ratio73.9 %73.2 %102.6 %104.3 %105.6 %
Weighted average number of common shares outstanding
Basic62,85862,74162,59762,54862,443
Diluted63,06162,95162,75562,71362,576
11

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)
Three Months Ended
(Dollars in Thousands)December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025		December 31,
2024
Assets
Interest-earning assets:
Loans receivable, including loans held-for-sale$5,778,680 $5,806,767 $5,830,421 $5,805,045 $5,762,053 
Taxable investment securities1,185,602 1,236,705 1,227,825 1,251,612 1,285,800 
Tax-exempt investment securities5,902 6,856 8,039 9,135 9,711 
Other interest-earning assets123,475 115,776 117,622 110,736 116,354 
Total interest-earning assets7,093,659 7,166,104 7,183,907 7,176,528 7,173,918 
Non-interest-earning assets455,752 453,215 454,975 457,206 459,982 
Total assets $7,549,411 $7,619,319 $7,638,882 $7,633,734 $7,633,900 
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand$2,385,397 $2,343,809 $2,342,523 $2,405,974 $2,314,378 
Savings 759,247 754,244 754,192 751,243 711,801 
Certificates of deposit (retail)1,201,950 1,211,026 1,215,661 1,215,767 1,216,948 
Certificates of deposit (brokered)756,179 755,813 744,345 730,612 730,773 
Total interest-bearing deposits5,102,773 5,064,892 5,056,721 5,103,596 4,973,900 
Borrowings:
Federal Home Loan Bank advances998,760 1,077,146 1,083,902 1,028,958 1,085,455 
Other borrowings38,478 85,489 107,582 93,389 156,522 
Total borrowings1,037,238 1,162,635 1,191,484 1,122,347 1,241,977 
Total interest-bearing liabilities6,140,011 6,227,527 6,248,205 6,225,943 6,215,877 
Non-interest-bearing liabilities:
Non-interest-bearing deposits595,035 581,625 582,085 602,647 604,915 
Other non-interest-bearing liabilities59,447 65,024 64,405 59,919 65,258 
Total non-interest-bearing liabilities654,482 646,649 646,490 662,566 670,173 
Total liabilities6,794,493 6,874,176 6,894,695 6,888,509 6,886,050 
Stockholders' equity754,918 745,143 744,187 745,225 747,850 
Total liabilities and stockholders' equity$7,549,411 $7,619,319 $7,638,882 $7,633,734 $7,633,900 
Average interest-earning assets to average
 interest-bearing liabilities
115.53 %115.07 %114.98 %115.27 %115.41 %
12

Kearny Financial Corp.
Performance Ratio Highlights
Three Months Ended
December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025		December 31,
2024
Average yield on interest-earning assets:
Loans receivable, including loans held-for-sale4.67 %4.71 %4.56 %4.46 %4.54 %
Taxable investment securities3.92 %4.08 %4.01 %4.07 %4.29 %
Tax-exempt investment securities (1)
2.36 %2.42 %2.43 %2.43 %2.42 %
Other interest-earning assets5.13 %5.24 %5.27 %6.40 %7.62 %
Total interest-earning assets4.55 %4.61 %4.48 %4.42 %4.54 %
Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand2.51 %2.63 %2.63 %2.73 %2.96 %
Savings 1.40 %1.41 %1.33 %1.30 %1.29 %
Certificates of deposit (retail)3.45 %3.56 %3.56 %3.73 %4.06 %
Certificates of deposit (brokered)2.72 %2.67 %2.62 %2.58 %2.70 %
Total interest-bearing deposits2.60 %2.68 %2.66 %2.74 %2.95 %
Borrowings:
Federal Home Loan Bank advances3.66 %3.69 %3.60 %3.63 %3.78 %
Other borrowings4.13 %4.44 %4.45 %4.41 %4.88 %
Total borrowings3.68 %3.74 %3.68 %3.70 %3.91 %
Total interest-bearing liabilities2.78 %2.88 %2.85 %2.91 %3.15 %
Interest rate spread (2)
1.77 %1.73 %1.62 %1.51 %1.39 %
Net interest margin (3)
2.14 %2.10 %2.00 %1.90 %1.82 %
Non-interest income to average assets (annualized)0.30 %0.31 %0.26 %0.24 %0.26 %
Non-interest expense to average assets (annualized)1.65 %1.66 %1.62 %1.59 %1.55 %
Efficiency ratio (4)
71.64 %72.71 %75.66 %78.72 %78.86 %
Return on average assets (annualized)0.50 %0.50 %0.35 %0.35 %0.34 %
Return on average equity (annualized)5.01 %5.10 %3.64 %3.57 %3.51 %
Return on average tangible equity (annualized) (5)
5.96 %6.09 %4.36 %4.28 %4.21 %
_________________________
(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)		December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025		December 31,
2024
Adjusted net income:
Net income (GAAP)$9,449 $9,506 $6,769 $6,648 $6,566 
Non-recurring transactions - net of tax:
Branch consolidation expenses— 178 — — — 
Gain on sale of property held for sale— (532)— — — 
Adjusted net income$9,449 $9,152 $6,769 $6,648 $6,566 
Calculation of pre-tax, pre-provision net revenue:
Net income (GAAP)$9,449 $9,506 $6,769 $6,648 $6,566 
Adjustments to net income (GAAP):
Provision for income taxes2,333 2,461 1,387 1,200 1,251 
Provision for (reversal of) credit losses567 (82)1,785 366 107 
Pre-tax, pre-provision net revenue (non-GAAP)$12,349 $11,885 $9,941 $8,214 $7,924 
Adjusted earnings per share:
Weighted average common shares - basic62,85862,74162,59762,54862,443
Weighted average common shares - diluted63,06162,95162,75562,71362,576
Earnings per share - basic (GAAP)$0.15 $0.15 $0.11 $0.11 $0.11 
Earnings per share - diluted (GAAP)$0.15 $0.15 $0.11 $0.11 $0.10 
Adjusted earnings per share - basic (non-GAAP)$0.15 $0.15 $0.11 $0.11 $0.11 
Adjusted earnings per share - diluted (non-GAAP)$0.15 $0.15 $0.11 $0.11 $0.10 
Pre-tax, pre-provision net revenue per share:
Pre-tax, pre-provision net revenue per share - basic
  (non-GAAP)
$0.20 $0.19 $0.16 $0.13 $0.13 
Pre-tax, pre-provision net revenue per share - diluted
  (non-GAAP)
$0.20 $0.19 $0.16 $0.13 $0.13 
Adjusted return on average assets:
Total average assets$7,549,411 $7,619,319 $7,638,882 $7,633,734 $7,633,900 
Return on average assets (GAAP)0.50 %0.50 %0.35 %0.35 %0.34 %
Adjusted return on average assets (non-GAAP)0.50 %0.48 %0.35 %0.35 %0.34 %
Adjusted return on average equity:
Total average equity$754,918 $745,143 $744,187 $745,225 $747,850 
Return on average equity (GAAP)5.01 %5.10 %3.64 %3.57 %3.51 %
Adjusted return on average equity (non-GAAP)5.01 %4.91 %3.64 %3.57 %3.51 %
14

Kearny Financial Corp.
Reconciliation of GAAP to Non-GAAP
(Unaudited)
Three Months Ended
(Dollars and Shares in Thousands,
Except Per Share Data)		December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025		December 31,
2024
Adjusted return on average tangible equity:
Total average equity$754,918 $745,143 $744,187 $745,225 $747,850 
Less: average goodwill(113,525)(113,525)(113,525)(113,525)(113,525)
Less: average other intangible assets(1,276)(1,395)(1,513)(1,636)(1,761)
Total average tangible equity$640,117 $630,223 $629,149 $630,064 $632,564 
Return on average tangible equity (non-GAAP)5.96 %6.09 %4.36 %4.28 %4.21 %
Adjusted return on average tangible equity (non-GAAP)5.96 %5.87 %4.36 %4.28 %4.21 %
Adjusted non-interest expense ratio:
Non-interest expense (GAAP)$31,191 $31,666 $30,893 $30,390 $29,561 
Non-recurring transactions:
Branch consolidation expenses— (250)— — — 
Non-interest expense (non-GAAP)$31,191 $31,416 $30,893 $30,390 $29,561 
Non-interest expense ratio (GAAP)1.65 %1.66 %1.62 %1.59 %1.55 %
Adjusted non-interest expense ratio (non-GAAP)1.65 %1.65 %1.62 %1.59 %1.55 %
Adjusted efficiency ratio:
Non-interest expense (non-GAAP)$31,191 $31,416 $30,893 $30,390 $29,561 
Net interest income (GAAP)$37,969 $37,704 $35,843 $34,042 $32,612 
Total non-interest income (GAAP)5,571 5,847 4,991 4,562 4,873 
Non-recurring transactions:
Gain on sale of property held for sale— (749)— — — 
Total revenue (non-GAAP)$43,540 $42,802 $40,834 $38,604 $37,485 
Efficiency ratio (GAAP)71.64 %72.71 %75.66 %78.72 %78.86 %
Adjusted efficiency ratio (non-GAAP)71.64 %73.40 %75.66 %78.72 %78.86 %

15