Kearny Financial Corp. Announces First Quarter Fiscal 2026 Results and Declaration of Cash Dividend

FAIRFIELD, N.J., Oct. 23, 2025 (GLOBE NEWSWIRE) -- Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), reported net income for the quarter ended September 30, 2025 of $9.5 million, or $0.15 per diluted share, compared to $6.8 million, or $0.11 per diluted share, for the quarter ended June 30, 2025.

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on November 19, 2025, to stockholders of record as of November 5, 2025.

Craig L. Montanaro, President and Chief Executive Officer, commented, “We are pleased to report a strong quarter that underscores our continued momentum in profitability growth. Net interest margin expansion of 10 basis points, in conjunction with solid credit quality and well-controlled expenses, led to a 36% quarter-over-quarter increase in earnings per share. Our proactive balance sheet management, combined with the expected tailwinds from anticipated reductions in the federal funds rate, positions us well for sustained performance in the quarters ahead.”

Mr. Montanaro continued, “Strategically, we advanced several key initiatives designed to enhance operational efficiency and drive shareholder value. The launch of our partnership with The Lab Consulting—a leading provider of end-to-end robotic process automation—represents a key milestone in our efforts to elevate the client experience and scale revenue efficiently. Additionally, the execution of our previously announced branch consolidations enables us to reallocate capital toward higher-return opportunities, reinforcing our commitment to long-term growth and value creation.”

First Quarter Highlights

Net interest margin expanded by 10 basis points to 2.10%, while net interest income increased 5.2% to $37.7 million.Net income per share increased 36.4% to $0.15 per diluted share, and pre-tax, pre-provision earnings per share increased 18.8% to $0.19 per diluted share.The Company continued its loan portfolio diversification efforts, growing construction and commercial business loans by 26.8% and 10.2%, respectively, on an annualized basis.The Company is consolidating three branches as part of an optimization of its real estate footprint, streamlining to 40 locations by October 2025.In September 2025, the Company entered into a strategic partnership with The Lab Consulting to deploy advanced automation and analytics, designed to enhance operational efficiency, elevate client service, and deliver shareholder value.

Balance Sheet

Total assets were $7.65 billion at September 30, 2025, a decrease of $92.4 million, or 1.2%, from June 30, 2025.Investment securities totaled $1.13 billion at September 30, 2025, consistent with the balance reported at June 30, 2025.Loans receivable totaled $5.77 billion at September 30, 2025, a decrease of $45.5 million, or 0.8%, from June 30, 2025, primarily reflecting a decrease in multifamily mortgage loans, partially offset by increases in construction and commercial and industrial loans.Deposits were $5.63 billion at September 30, 2025, a decrease of $43.3 million, or 0.8%, from June 30, 2025. This decrease was primarily driven by declines in interest bearing demand deposits and certificates of deposits (“CDs”).Borrowings were $1.21 billion at September 30, 2025, a decrease of $50.0 million, or 4.0%, from June 30, 2025, reflecting reductions in Federal Home Loan Bank (“FHLB”) advances.At September 30, 2025, the Company maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.54 billion, representing 33.2% of total assets.

Earnings

Net Interest Income and Net Interest Margin

Net interest margin expanded by 10 basis points to 2.10% for the quarter ended September 30, 2025. The increase for the quarter was primarily driven by improved asset yields and reductions in borrowings, partially offset by lower average balances on interest-earning assets and higher costs on interest-bearing liabilities.For the quarter ended September 30, 2025, net interest income increased $1.9 million to $37.7 million from $35.8 million for the quarter ended June 30, 2025. Included in net interest income for the quarters ended September 30, 2025 and June 30, 2025, respectively, was purchase accounting accretion of $601,000 and $511,000, and loan prepayment penalty income of $490,000 and $217,000.

Non-Interest Income

For the quarter ended September 30, 2025, non-interest income increased $856,000, or 17.2%, to $5.8 million from $5.0 million for the quarter ended June 30, 2025, primarily driven by a non-recurring pre-tax gain of $749,000 on the sale of property held for sale in the current period. Excluding this item, non-interest income increased $107,000, or 2.1%, to $5.1 million for the quarter ended September 30, 2025.Fees and service charges increased $237,000, or 36.2%, to $892,000 for the quarter ended September 30, 2025 from $655,000 for the quarter ended June 30, 2025. The increase primarily reflected higher deposit and branch related fee income.Income from BOLI decreased $180,000, or 6.3%, to $2.7 million for the quarter ended September 30, 2025 from $2.9 million for the quarter ended June 30, 2025, primarily driven by the absence of $223,000 in non-recurring payments recorded in the prior period. No such non-recurring items were recorded in the current period.

Non-Interest Expense

For the quarter ended September 30, 2025, non-interest expense increased $773,000, or 2.5%, to $31.7 million from $30.9 million for the quarter ended June 30, 2025, primarily driven by increases in salary and benefits and net occupancy, partially offset by declines in federal deposit insurance premiums and other expense.Salary and benefits expense increased $652,000 to $18.7 million for the quarter ended September 30, 2025 from $18.1 million for the quarter ended June 30, 2025, primarily driven by annual merit increases and higher non-recurring payroll taxes of $185,000 associated with annual incentive compensation.Net occupancy expense of premises increased $487,000 to $3.3 million for the quarter ended September 30, 2025 from $2.8 million for the quarter ended June 30, 2025, primarily driven by a non-recurring pre-tax expense of $250,000 associated with our previously announced branch consolidations and non-recurring branch maintenance expenses of $102,000. Excluding these items, net occupancy expense of premises increased $135,000 to $3.0 million, primarily driven by higher repairs and other maintenance expenses.Federal deposit insurance premium expense decreased $94,000 to $1.3 million for the quarter ended September 30, 2025 from $1.4 million for the quarter ended June 30, 2025, primarily driven by higher capital ratios.Other expense decreased $163,000 to $3.5 million for the quarter September 30, 2025 from $3.6 million for the quarter ended June 30, 2025, primarily driven the absence of non-recurring professional fees incurred in the prior period, partially offset by elevated fraud losses in the current period. The remaining 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 September 30, 2025 compared to $1.4 million for the quarter ended June 30, 2025, resulting in an effective tax rate of 20.6% and 17.0%, respectively. The increase in income tax expense was due to higher pre-tax income in the current quarter coupled with the tax cost associated with the vesting of certain stock-based compensation awards.

Asset Quality

The balance of non-performing assets increased to $64.6 million, or 0.84% of total assets, at September 30, 2025 from $45.6 million, or 0.59% of total assets, at June 30, 2025. The increase was driven by a single construction loan that became 90 days past due but remains on accrual status. The loan is secured by collateral under contract for sale, with all covenants satisfied and a loan-to-sale price ratio of 72%. No provision for credit losses related to this loan was recorded as of September 30, 2025, as full repayment is expected upon completion of the sale.Net charge-offs totaled $1.0 million, or 0.07% of average loans, on an annualized basis, for the quarter ended September 30, 2025, compared to $49,000, or less than 0.01% of average loans, on an annualized basis, for the quarter ended June 30, 2025. The net charge-offs recorded for the quarter ended September 30, 2025 were primarily driven by a wholesale commercial and industrial (“C&I”) loan, representing the final wholesale C&I loan in the portfolio. This charge-off had previously been individually reserved for within the allowance for credit losses (“ACL”).For the quarter ended September 30, 2025, the Company recorded a reversal of credit losses of $82,000, compared to a provision for credit losses of $1.8 million for the quarter ended June 30, 2025. The reversal for the quarter ended September 30, 2025 was largely driven by decreases in the balance of loans receivable, partially offset by qualitative risk factor adjustments.The ACL was $45.1 million, or 0.78% of total loans, at September 30, 2025, a decrease of $1.1 million from $46.2 million, or 0.79% of total loans, at June 30, 2025. The decrease in the ACL from June 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 September 30, 2025, book value per share increased $0.08, or 0.7%, to $11.63 while tangible book value per share increased $0.09, or 0.9%, to $9.86.At September 30, 2025, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $71.5 million, partially offset by after-tax unrealized gains on derivatives of $3.1 million. After-tax net unrecognized losses on securities held to maturity of $8.4 million were not reflected in total stockholders’ equity.At September 30, 2025, the Company’s tangible equity to tangible assets ratio equaled 8.47% and the regulatory capital ratios of both the Company and the Bank were in excess of the levels required by federal banking regulators to be classified as “well-capitalized” under regulatory guidelines.

This earnings release should be read in conjunction with Kearny Financial Corp.’s Q1 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

Linked-Quarter Comparative Financial Analysis

Kearny Financial Corp.
Consolidated Balance Sheets
(Unaudited) (Dollars and Shares in Thousands,
Except Per Share Data)September 30,
2025June 30,
2025Variance
or ChangeVariance
or Change Pct.Assets Cash and cash equivalents$130,139 $167,269 $(37,130)-22.2%Securities available for sale 1,016,182 1,012,969 3,213 0.3%Securities held to maturity 116,681 120,217 (3,536)-2.9%Loans held-for-sale 6,650 5,931 719 12.1%Loans receivable 5,767,419 5,812,937 (45,518)-0.8%Less: allowance for credit losses on loans (45,060) (46,191) (1,131)-2.4%Net loans receivable 5,722,359 5,766,746 (44,387)-0.8%Premises and equipment 43,222 43,897 (675)-1.5%Federal Home Loan Bank stock 62,011 64,261 (2,250)-3.5%Accrued interest receivable 29,460 28,098 1,362 4.8%Goodwill 113,525 113,525 — —%Core deposit intangible 1,317 1,436 (119)-8.3%Bank owned life insurance 307,248 304,717 2,531 0.8%Deferred income taxes, net 51,587 55,203 (3,616)-6.6%Other assets 47,629 56,181 (8,552)-15.2%Total assets$7,648,010 $7,740,450 $(92,440)-1.2% Liabilities Deposits: Non-interest-bearing$578,481 $582,045 $(3,564)-0.6%Interest-bearing 5,053,401 5,093,172 (39,771)-0.8%Total deposits 5,631,882 5,675,217 (43,335)-0.8%Borrowings 1,206,497 1,256,491 (49,994)-4.0%Advance payments by borrowers for taxes 19,261 19,317 (56)-0.3%Other liabilities 37,166 43,463 (6,297)-14.5%Total liabilities 6,894,806 6,994,488 (99,682)-1.4% Stockholders' Equity Common stock 648 646 2 0.3%Paid-in capital 494,490 494,546 (56)0.0%Retained earnings 344,287 341,744 2,543 0.7%Unearned ESOP shares (18,484) (18,970) 486 2.6%Accumulated other comprehensive loss (67,737) (72,004) 4,267 5.9%Total stockholders' equity 753,204 745,962 7,242 1.0%Total liabilities and stockholders' equity$7,648,010 $7,740,450 $(92,440)-1.2% Consolidated capital ratios Equity to assets 9.85% 9.64% 0.21% Tangible equity to tangible assets(1) 8.47% 8.27% 0.20% Share data Outstanding shares 64,739 64,577 162 0.3%Book value per share$11.63 $11.55 $0.08 0.7%Tangible book value per share(2)$9.86 $9.77 $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.

Kearny Financial Corp.
Consolidated Statements of Income
(Unaudited) Three Months Ended (Dollars and Shares in Thousands,
Except Per Share Data)September 30,
2025June 30,
2025Variance
or ChangeVariance
or Change Pct.Interest income Loans$68,349 $66,485 $1,864 2.8%Taxable investment securities 12,600 12,322 278 2.3%Tax-exempt investment securities 41 49 (8)-16.3%Other interest-earning assets 1,518 1,549 (31)-2.0%Total interest income 82,508 80,405 2,103 2.6% Interest expense Deposits 33,931 33,607 324 1.0%Borrowings 10,873 10,955 (82)-0.7%Total interest expense 44,804 44,562 242 0.5%Net interest income 37,704 35,843 1,861 5.2%(Reversal of) provision for credit losses (82) 1,785 (1,867)-104.6%Net interest income after (reversal of) provision for credit losses 37,786 34,058 3,728 10.9% Non-interest income Fees and service charges 892 655 237 36.2%Gain on sale of loans 199 190 9 4.7%Income from bank owned life insurance 2,689 2,869 (180)-6.3%Electronic banking fees and charges 416 442 (26)-5.9%Other income 1,651 835 816 97.7%Total non-interest income 5,847 4,991 856 17.2% Non-interest expense Salaries and employee benefits 18,745 18,093 652 3.6%Net occupancy expense of premises 3,307 2,820 487 17.3%Equipment and systems 3,974 4,030 (56)-1.4%Advertising and marketing 562 615 (53)-8.6%Federal deposit insurance premium 1,301 1,395 (94)-6.7%Directors' compensation 307 307 — —%Other expense 3,470 3,633 (163)-4.5%Total non-interest expense 31,666 30,893 773 2.5%Income before income taxes 11,967 8,156 3,811 46.7%Income taxes 2,461 1,387 1,074 77.4%Net income$9,506 $6,769 $2,737 40.4% Net income per common share (EPS) Basic$0.15 $0.11 $0.04 Diluted$0.15 $0.11 $0.04 Dividends declared Cash dividends declared per common share$0.11 $0.11 $— Cash dividends declared$6,963 $6,946 $17 Dividend payout ratio 73.2% 102.6% -29.4% Weighted average number of common shares outstanding Basic 62,741 62,597 144 Diluted 62,951 62,755 196

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited) (Dollars in Thousands) Three Months EndedVariance
or Change Variance
or Change Pct. September 30,
2025June 30,
2025Assets Interest-earning assets: Loans receivable, including loans held for sale$5,806,767 $5,830,421 $(23,654)-0.4%Taxable investment securities 1,236,705 1,227,825 8,880 0.7%Tax-exempt investment securities 6,856 8,039 (1,183)-14.7%Other interest-earning assets 115,776 117,622 (1,846)-1.6%Total interest-earning assets 7,166,104 7,183,907 (17,803)-0.2%Non-interest-earning assets 453,215 454,975 (1,760)-0.4%Total assets$7,619,319 $7,638,882 $(19,563)-0.3% Liabilities and Stockholders' Equity Interest-bearing liabilities: Deposits: Interest-bearing demand$2,343,809 $2,342,523 $1,286 0.1%Savings 754,244 754,192 52 0.0%Certificates of deposit (retail) 1,211,026 1,215,661 (4,635)-0.4%Certificates of deposit (brokered) 755,813 744,345 11,468 1.5%Total interest-bearing deposits 5,064,892 5,056,721 8,171 0.2%Borrowings: Federal Home Loan Bank advances 1,077,146 1,083,902 (6,756)-0.6%Other borrowings 85,489 107,582 (22,093)-20.5%Total borrowings 1,162,635 1,191,484 (28,849)-2.4%Total interest-bearing liabilities 6,227,527 6,248,205 (20,678)-0.3%Non-interest-bearing liabilities: Non-interest-bearing deposits 581,625 582,085 (460)-0.1%Other non-interest-bearing liabilities 65,024 64,405 619 1.0%Total non-interest-bearing liabilities 646,649 646,490 159 0.0%Total liabilities 6,874,176 6,894,695 (20,519)-0.3%Stockholders' equity 745,143 744,187 956 0.1%Total liabilities and stockholders' equity$7,619,319 $7,638,882 $(19,563)-0.3% Average interest-earning assets to average interest-bearing liabilities 115.07% 114.98% 0.09%0.1%

Kearny Financial Corp.
Performance Ratio Highlights
(Unaudited) Three Months EndedVariance
or Change September 30,
2025June 30,
2025Average yield on interest-earning assets: Loans receivable, including loans held for sale4.71%4.56%0.15%Taxable investment securities4.08%4.01%0.07%Tax-exempt investment securities(1)2.42%2.43%-0.01%Other interest-earning assets5.24%5.27%-0.03%Total interest-earning assets4.61%4.48%0.13% Average cost of interest-bearing liabilities: Deposits: Interest-bearing demand2.63%2.63%—%Savings1.41%1.33%0.08%Certificates of deposit (retail)3.56%3.56%—%Certificates of deposit (brokered)2.67%2.62%0.05%Total interest-bearing deposits2.68%2.66%0.02%Borrowings: Federal Home Loan Bank advances3.69%3.60%0.09%Other borrowings4.44%4.45%-0.01%Total borrowings3.74%3.68%0.06%Total interest-bearing liabilities2.88%2.85%0.03% Interest rate spread(2)1.73%1.62%0.11%Net interest margin(3)2.10%2.00%0.10% Non-interest income to average assets (annualized)0.31%0.26%0.05%Non-interest expense to average assets (annualized)1.66%1.62%0.04% Efficiency ratio(4)72.71%75.66%-2.95% Return on average assets (annualized)0.50%0.35%0.15%Return on average equity (annualized)5.10%3.64%1.46%Return on average tangible equity (annualized)(5)6.09%4.36%1.73%

_________________________(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.

Five-Quarter Financial Trend Analysis

Kearny Financial Corp.
Consolidated Balance Sheets (Dollars and Shares in Thousands,
Except Per Share Data)September 30,
2025June 30,
2025March 31,
2025December 31,
2024September 30,
2024 (Unaudited)(Audited)(Unaudited)(Unaudited)(Unaudited)Assets Cash and cash equivalents$130,139 $167,269 $126,095 $141,554 $155,574 Securities available for sale 1,016,182 1,012,969 1,003,393 1,018,279 1,070,811 Securities held to maturity 116,681 120,217 124,859 127,266 132,256 Loans held-for-sale 6,650 5,931 6,187 5,695 8,866 Loans receivable 5,767,419 5,812,937 5,846,175 5,791,758 5,784,246 Less: allowance for credit losses on loans (45,060) (46,191) (44,455) (44,457) (44,923)Net loans receivable 5,722,359 5,766,746 5,801,720 5,747,301 5,739,323 Premises and equipment 43,222 43,897 44,192 45,127 45,189 Federal Home Loan Bank stock 62,011 64,261 62,261 64,443 57,706 Accrued interest receivable 29,460 28,098 28,521 27,772 29,467 Goodwill 113,525 113,525 113,525 113,525 113,525 Core deposit intangible 1,317 1,436 1,554 1,679 1,805 Bank owned life insurance 307,248 304,717 303,629 301,339 300,186 Deferred income taxes, net 51,587 55,203 52,913 53,325 50,131 Other assets 47,629 56,181 64,292 84,080 67,540 Total assets$7,648,010 $7,740,450 $7,733,141 $7,731,385 $7,772,379 Liabilities Deposits: Non-interest-bearing$578,481 $582,045 $587,118 $601,510 $592,099 Interest-bearing 5,053,401 5,093,172 5,120,230 5,069,550 4,878,413 Total deposits 5,631,882 5,675,217 5,707,348 5,671,060 5,470,512 Borrowings 1,206,497 1,256,491 1,213,976 1,258,949 1,479,888 Advance payments by borrowers for taxes 19,261 19,317 19,981 17,986 17,824 Other liabilities 37,166 43,463 43,723 38,537 52,618 Total liabilities 6,894,806 6,994,488 6,985,028 6,986,532 7,020,842 Stockholders' Equity Common stock 648 646 646 646 646 Paid-in capital 494,490 494,546 494,131 494,092 493,523 Retained earnings 344,287 341,744 341,921 342,155 342,522 Unearned ESOP shares (18,484) (18,970) (19,457) (19,943) (20,430)Accumulated other comprehensive loss (67,737) (72,004) (69,128) (72,097) (64,724)Total stockholders' equity 753,204 745,962 748,113 744,853 751,537 Total liabilities and stockholders' equity$7,648,010 $7,740,450 $7,733,141 $7,731,385 $7,772,379 Consolidated capital ratios Equity to assets 9.85% 9.64% 9.67% 9.63% 9.67%Tangible equity to tangible assets(1) 8.47% 8.27% 8.31% 8.27% 8.31% Share data Outstanding shares 64,739 64,577 64,580 64,580 64,580 Book value per share$11.63 $11.55 $11.58 $11.53 $11.64 Tangible book value per share(2)$9.86 $9.77 $9.80 $9.75 $9.85

_________________________(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.

Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited) (Dollars in Thousands)September 30,
2025June 30,
2025March 31,
2025December 31,
2024September 30,
2024Loan portfolio composition: Commercial loans: Multi-family mortgage$2,640,737 $2,709,654 $2,733,406 $2,722,623 $2,646,187 Nonresidential mortgage 988,969 986,556 988,074 950,194 950,771 Commercial business 142,304 138,755 140,224 135,740 145,984 Construction 189,626 177,713 174,722 176,704 227,327 Total commercial loans 3,961,636 4,012,678 4,036,426 3,985,261 3,970,269 One- to four-family residential mortgage 1,749,362 1,748,591 1,761,465 1,765,160 1,768,230 Consumer loans: Home equity loans 54,116 50,737 49,699 47,101 44,741 Other consumer 2,487 2,533 2,859 2,778 2,965 Total consumer loans 56,603 53,270 52,558 49,879 47,706 Total loans, excluding yield adjustments 5,767,601 5,814,539 5,850,449 5,800,300 5,786,205 Unaccreted yield adjustments (182) (1,602) (4,274) (8,542) (1,959)Loans receivable, net of yield adjustments 5,767,419 5,812,937 5,846,175 5,791,758 5,784,246 Less: allowance for credit losses on loans (45,060) (46,191) (44,455) (44,457) (44,923)Net loans receivable$5,722,359 $5,766,746 $5,801,720 $5,747,301 $5,739,323 Asset quality: Nonperforming assets: Accruing loans - 90 days and over past due$20,494 $— $— $— $— Nonaccrual loans 44,085 45,597 37,683 37,697 39,854 Total nonperforming loans 64,579 45,597 37,683 37,697 39,854 Nonaccrual loans held-for-sale — — — — — Other real estate owned — — — — — Total nonperforming assets$64,579 $45,597 $37,683 $37,697 $39,854 Nonperforming loans (% total loans) 1.12% 0.78% 0.64% 0.65% 0.69%Nonperforming assets (% total assets) 0.84% 0.59% 0.49% 0.49% 0.51% Classified loans$117,780 $118,418 $113,470 $106,718 $67,853 Allowance for credit losses on loans (ACL): ACL to total loans 0.78% 0.79% 0.76% 0.77% 0.78%ACL to nonperforming loans 69.78% 101.30% 117.97% 117.93% 112.72%Net charge-offs$1,049 $49 $368 $573 $124 Average net charge-off rate (annualized) 0.07% 0.00% 0.03% 0.04% 0.01%

Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited) (Dollars in Thousands)September 30,
2025June 30,
2025March 31,
2025December 31,
2024September 30,
2024Funding composition: Deposits: Non-interest-bearing deposits$578,481 $582,045 $587,118 $601,510 $592,099 Interest-bearing demand 2,334,560 2,362,222 2,410,925 2,380,408 2,247,685 Savings 751,253 754,376 758,239 742,266 681,709 Certificates of deposit (retail) 1,208,408 1,218,920 1,218,479 1,213,887 1,215,746 Certificates of deposit (brokered) 759,180 757,654 732,587 732,989 733,273 Interest-bearing deposits 5,053,401 5,093,172 5,120,230 5,069,550 4,878,413 Total deposits 5,631,882 5,675,217 5,707,348 5,671,060 5,470,512 Borrowings: Federal Home Loan Bank advances 1,006,497 1,106,491 1,028,976 1,028,949 1,209,888 Overnight borrowings 200,000 150,000 185,000 230,000 270,000 Total borrowings 1,206,497 1,256,491 1,213,976 1,258,949 1,479,888 Total funding$6,838,379 $6,931,708 $6,921,324 $6,930,009 $6,950,400 Loans as a % of deposits 101.7% 101.7% 101.8% 101.4% 105.1%Deposits as a % of total funding 82.4% 81.9% 82.5% 81.8% 78.7%Borrowings as a % of total funding 17.6% 18.1% 17.5% 18.2% 21.3% Uninsured deposits: Uninsured deposits (reported)(1)$2,040,021 $1,989,095 $1,959,070 $1,935,607 $1,799,726 Uninsured deposits (adjusted)(2)$804,209 $813,780 $799,238 $797,721 $773,375

_________________________(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.

Kearny Financial Corp.
Consolidated Statements of Income
(Unaudited) Three Months Ended(Dollars and Shares in Thousands,
Except Per Share Data)September 30,
2025June 30,
2025March 31,
2025December 31,
2024September 30,
2024Interest income Loans$68,349 $66,485 $64,768 $65,408 $66,331 Taxable investment securities 12,600 12,322 12,738 13,803 14,384 Tax-exempt investment securities 41 49 55 59 71 Other interest-earning assets 1,518 1,549 1,773 2,215 2,466 Total interest income 82,508 80,405 79,334 81,485 83,252 Interest expense Deposits 33,931 33,607 34,912 36,721 35,018 Borrowings 10,873 10,955 10,380 12,152 15,788 Total interest expense 44,804 44,562 45,292 48,873 50,806 Net interest income 37,704 35,843 34,042 32,612 32,446 (Reversal of) provision for credit losses (82) 1,785 366 107 108 Net interest income after (reversal of) provision for credit losses 37,786 34,058 33,676 32,505 32,338 Non-interest income Fees and service charges 892 655 573 627 635 Gain on sale of loans 199 190 112 304 200 Income from bank owned life insurance 2,689 2,869 2,617 2,619 2,567 Electronic banking fees and charges 416 442 391 493 391 Other income 1,651 835 869 830 833 Total non-interest income 5,847 4,991 4,562 4,873 4,626 Non-interest expense Salaries and employee benefits 18,745 18,093 17,700 17,579 17,498 Net occupancy expense of premises 3,307 2,820 3,075 2,831 2,798 Equipment and systems 3,974 4,030 3,921 3,892 3,860 Advertising and marketing 562 615 609 311 342 Federal deposit insurance premium 1,301 1,395 1,450 1,503 1,563 Directors' compensation 307 307 326 361 361 Other expense 3,470 3,633 3,309 3,084 3,364 Total non-interest expense 31,666 30,893 30,390 29,561 29,786 Income before income taxes 11,967 8,156 7,848 7,817 7,178 Income taxes 2,461 1,387 1,200 1,251 1,086 Net income$9,506 $6,769 $6,648 $6,566 $6,092 Net income per common share (EPS) Basic$0.15 $0.11 $0.11 $0.11 $0.10 Diluted$0.15 $0.11 $0.11 $0.10 $0.10 Dividends declared Cash dividends declared per common share$0.11 $0.11 $0.11 $0.11 $0.11 Cash dividends declared$6,963 $6,946 $6,933 $6,933 $6,896 Dividend payout ratio 73.2% 102.6% 104.3% 105.6% 113.2% Weighted average number of common shares outstanding Basic 62,741 62,597 62,548 62,443 62,389 Diluted 62,951 62,755 62,713 62,576 62,420

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited) Three Months Ended(Dollars in Thousands)September 30,
2025June 30,
2025March 31,
2025December 31,
2024September 30,
2024Assets Interest-earning assets: Loans receivable, including loans held-for-sale$5,806,767 $5,830,421 $5,805,045 $5,762,053 $5,761,593 Taxable investment securities 1,236,705 1,227,825 1,251,612 1,285,800 1,314,945 Tax-exempt investment securities 6,856 8,039 9,135 9,711 12,244 Other interest-earning assets 115,776 117,622 110,736 116,354 131,981 Total interest-earning assets 7,166,104 7,183,907 7,176,528 7,173,918 7,220,763 Non-interest-earning assets 453,215 454,975 457,206 459,982 467,670 Total assets$7,619,319 $7,638,882 $7,633,734 $7,633,900 $7,688,433 Liabilities and Stockholders' Equity Interest-bearing liabilities: Deposits: Interest-bearing demand$2,343,809 $2,342,523 $2,405,974 $2,314,378 $2,282,608 Savings 754,244 754,192 751,243 711,801 668,240 Certificates of deposit (retail) 1,211,026 1,215,661 1,215,767 1,216,948 1,203,770 Certificates of deposit (brokered) 755,813 744,345 730,612 730,773 551,819 Total interest-bearing deposits 5,064,892 5,056,721 5,103,596 4,973,900 4,706,437 Borrowings: Federal Home Loan Bank advances 1,077,146 1,083,902 1,028,958 1,085,455 1,325,583 Other borrowings 85,489 107,582 93,389 156,522 237,011 Total borrowings 1,162,635 1,191,484 1,122,347 1,241,977 1,562,594 Total interest-bearing liabilities 6,227,527 6,248,205 6,225,943 6,215,877 6,269,031 Non-interest-bearing liabilities: Non-interest-bearing deposits 581,625 582,085 602,647 604,915 599,095 Other non-interest-bearing liabilities 65,024 64,405 59,919 65,258 69,629 Total non-interest-bearing liabilities 646,649 646,490 662,566 670,173 668,724 Total liabilities 6,874,176 6,894,695 6,888,509 6,886,050 6,937,755 Stockholders' equity 745,143 744,187 745,225 747,850 750,678 Total liabilities and stockholders' equity$7,619,319 $7,638,882 $7,633,734 $7,633,900 $7,688,433 Average interest-earning assets to average interest-bearing liabilities 115.07% 114.98% 115.27% 115.41% 115.18%

Kearny Financial Corp.
Performance Ratio Highlights Three Months Ended September 30,
2025June 30,
2025March 31,
2025December 31,
2024September 30,
2024Average yield on interest-earning assets: Loans receivable, including loans held-for-sale4.71%4.56%4.46%4.54%4.61%Taxable investment securities4.08%4.01%4.07%4.29%4.38%Tax-exempt investment securities(1)2.42%2.43%2.43%2.42%2.32%Other interest-earning assets5.24%5.27%6.40%7.62%7.47%Total interest-earning assets4.61%4.48%4.42%4.54%4.61% Average cost of interest-bearing liabilities: Deposits: Interest-bearing demand2.63%2.63%2.73%2.96%3.13%Savings1.41%1.33%1.30%1.29%1.05%Certificates of deposit (retail)3.56%3.56%3.73%4.06%4.12%Certificates of deposit (brokered)2.67%2.62%2.58%2.70%2.18%Total interest-bearing deposits2.68%2.66%2.74%2.95%2.98%Borrowings: Federal Home Loan Bank advances3.69%3.60%3.63%3.78%3.82%Other borrowings4.44%4.45%4.41%4.88%5.28%Total borrowings3.74%3.68%3.70%3.91%4.04%Total interest-bearing liabilities2.88%2.85%2.91%3.15%3.24% Interest rate spread(2)1.73%1.62%1.51%1.39%1.37%Net interest margin(3)2.10%2.00%1.90%1.82%1.80% Non-interest income to average assets (annualized)0.31%0.26%0.24%0.26%0.24%Non-interest expense to average assets (annualized)1.66%1.62%1.59%1.55%1.55% Efficiency ratio(4)72.71%75.66%78.72%78.86%80.35% Return on average assets (annualized)0.50%0.35%0.35%0.34%0.32%Return on average equity (annualized)5.10%3.64%3.57%3.51%3.25%Return on average tangible equity (annualized)(5)6.09%4.36%4.28%4.21%3.89%

_________________________(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.

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)September 30,
2025June 30,
2025March 31,
2025December 31,
2024September 30,
2024Adjusted net income: Net income (GAAP)$9,506 $6,769 $6,648 $6,566 $6,092 Non-recurring transactions - net of tax: Branch consolidation expenses 178 — — — — Gain on sale of property held for sale (532) — — — — Adjusted net income$9,152 $6,769 $6,648 $6,566 $6,092 Calculation of pre-tax, pre-provision net revenue: Net income (GAAP)$9,506 $6,769 $6,648 $6,566 $6,092 Adjustments to net income (GAAP): Provision for income taxes 2,461 1,387 1,200 1,251 1,086 (Reversal of) provision for credit losses (82) 1,785 366 107 108 Pre-tax, pre-provision net revenue (non-GAAP)$11,885 $9,941 $8,214 $7,924 $7,286 Adjusted earnings per share: Weighted average common shares - basic 62,741 62,597 62,548 62,443 62,389 Weighted average common shares - diluted 62,951 62,755 62,713 62,576 62,420 Earnings per share - basic (GAAP)$0.15 $0.11 $0.11 $0.11 $0.10 Earnings per share - diluted (GAAP)$0.15 $0.11 $0.11 $0.10 $0.10 Adjusted earnings per share - basic (non-GAAP)$0.15 $0.11 $0.11 $0.11 $0.10 Adjusted earnings per share - diluted (non-GAAP)$0.15 $0.11 $0.11 $0.10 $0.10 Pre-tax, pre-provision net revenue per share: Pre-tax, pre-provision net revenue per share - basic
(non-GAAP)$0.19 $0.16 $0.13 $0.13 $0.12 Pre-tax, pre-provision net revenue per share - diluted
(non-GAAP)$0.19 $0.16 $0.13 $0.13 $0.12 Adjusted return on average assets: Total average assets$7,619,319 $7,638,882 $7,633,734 $7,633,900 $7,688,433 Return on average assets (GAAP) 0.50% 0.35% 0.35% 0.34% 0.32%Adjusted return on average assets (non-GAAP) 0.48% 0.35% 0.35% 0.34% 0.32% Adjusted return on average equity: Total average equity$745,143 $744,187 $745,225 $747,850 $750,678 Return on average equity (GAAP) 5.10% 3.64% 3.57% 3.51% 3.25%Adjusted return on average equity (non-GAAP) 4.91% 3.64% 3.57% 3.51% 3.25%

Kearny Financial Corp.
Reconciliation of GAAP to Non-GAAP
(Unaudited) Three Months Ended(Dollars and Shares in Thousands,
Except Per Share Data)September 30,
2025June 30,
2025March 31,
2025December 31,
2024September 30,
2024Adjusted return on average tangible equity: Total average equity$745,143 $744,187 $745,225 $747,850 $750,678 Less: average goodwill (113,525) (113,525) (113,525) (113,525) (113,525)Less: average other intangible assets (1,395) (1,513) (1,636) (1,761) (1,886)Total average tangible equity$630,223 $629,149 $630,064 $632,564 $635,267 Return on average tangible equity (non-GAAP) 6.09% 4.36% 4.28% 4.21% 3.89%Adjusted return on average tangible equity (non-GAAP) 5.87% 4.36% 4.28% 4.21% 3.89% Adjusted non-interest expense ratio: Non-interest expense (GAAP)$31,666 $30,893 $30,390 $29,561 $29,786 Non-recurring transactions: Branch consolidation expenses (250) — — — — Non-interest expense (non-GAAP)$31,416 $30,893 $30,390 $29,561 $29,786 Non-interest expense ratio (GAAP) 1.66% 1.62% 1.59% 1.55% 1.55%Adjusted non-interest expense ratio (non-GAAP) 1.65% 1.62% 1.59% 1.55% 1.55% Adjusted efficiency ratio: Non-interest expense (non-GAAP)$31,416 $30,893 $30,390 $29,561 $29,786 Net interest income (GAAP)$37,704 $35,843 $34,042 $32,612 $32,446 Total non-interest income (GAAP) 5,847 4,991 4,562 4,873 4,626 Non-recurring transactions: Gain on sale of property held for sale (749) — — — — Total revenue (non-GAAP)$42,802 $40,834 $38,604 $37,485 $37,072 Efficiency ratio (GAAP) 72.71% 75.66% 78.72% 78.86% 80.35%Adjusted efficiency ratio (non-GAAP) 73.40% 75.66% 78.72% 78.86% 80.35%

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