8-K
Kearny Financial Corp. (KRNY)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________________________
FORM 8-K
_____________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 22, 2026
_____________________________
KEARNY FINANCIAL CORP.
(Exact name of Registrant as Specified in Its Charter)
_____________________________
| Maryland | 001-37399 | 30-0870244 |
|---|---|---|
| (State or Other Jurisdiction<br><br>of Incorporation) | (Commission File Number) | (IRS Employer<br><br>Identification No.) |
| 120 Passaic Avenue Fairfield, New Jersey | 07004 | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s Telephone Number, Including Area Code: (973) 244-4500
(Former Name or Former Address, if Changed Since Last Report)
_____________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.01 par value | KRNY | The NASDAQ Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operation and Financial Condition
On January 22, 2026, Kearny Financial Corp. (the “Company”), the holding company for Kearny Bank, issued a press release reporting its financial results for the period ended December 31, 2025.
A copy of the press release announcing the results is included as Exhibit 99.1 to this Current Report on Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
Item 7.01 Regulation FD Disclosure
On January 22, 2026, the Company released a slide presentation that will be used in upcoming meetings with potential investors and current shareholders of the Company.
A copy of the slide presentation that will be used in the Company’s presentation is included as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference. The information included in this Current Report pursuant to this Item 7.01 is being furnished to, and not filed with, the Securities and Exchange Commission.
Item 8.01 Other Events
On January 22, 2026, the Company’s Board of Directors announced a quarterly cash dividend of $0.11 per share, payable on February 18, 2026 to stockholders of record as of February 4, 2026.
Item 9.01 Financial Statements and Exhibits
(a)Financial Statements of Business Acquired. Not applicable.
(b)Pro Forma Financial Information. Not applicable.
(c)Shell Company Transaction. Not applicable.
(d)Exhibits.
| Exhibit Number | Description |
|---|---|
| 99.1 | Press release dated January 22, 2026. |
| 99.2 | Kearny Financial Corp. investor presentation dated January 22, 2026. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| KEARNY FINANCIAL CORP. | ||
|---|---|---|
| Date: January 22, 2026 | By: | /s/ Sean Byrnes |
| Sean Byrnes | ||
| Executive Vice President and Chief Financial Officer |
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.
•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.
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
| Linked-Quarter Comparative Financial Analysis |
|---|
Kearny Financial Corp.
Consolidated Balance Sheets
(Unaudited)
| (Dollars and Shares in Thousands,<br>Except Per Share Data) | December 31,<br>2025 | September 30,<br>2025 | Variance <br>or Change | Variance <br>or Change Pct. | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Assets | |||||||||||
| Cash and cash equivalents | $ | 147,340 | $ | 130,139 | $ | 17,201 | 13.2 | % | |||
| Securities available for sale | 1,000,397 | 1,016,182 | (15,785) | -1.6 | % | ||||||
| Securities held to maturity | 112,800 | 116,681 | (3,881) | -3.3 | % | ||||||
| Loans held-for-sale | 8,786 | 6,650 | 2,136 | 32.1 | % | ||||||
| Loans receivable | 5,753,393 | 5,767,419 | (14,026) | -0.2 | % | ||||||
| Less: allowance for credit losses on loans | (44,958) | (45,060) | (102) | -0.2 | % | ||||||
| Net loans receivable | 5,708,435 | 5,722,359 | (13,924) | -0.2 | % | ||||||
| Premises and equipment | 42,559 | 43,222 | (663) | -1.5 | % | ||||||
| Federal Home Loan Bank stock | 57,212 | 62,011 | (4,799) | -7.7 | % | ||||||
| Accrued interest receivable | 27,420 | 29,460 | (2,040) | -6.9 | % | ||||||
| Goodwill | 113,525 | 113,525 | — | — | % | ||||||
| Core deposit intangible | 1,198 | 1,317 | (119) | -9.0 | % | ||||||
| Bank owned life insurance | 309,404 | 307,248 | 2,156 | 0.7 | % | ||||||
| Deferred income taxes, net | 51,617 | 51,587 | 30 | 0.1 | % | ||||||
| Other assets | 40,185 | 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-bearing | 5,084,370 | 5,053,401 | 30,969 | 0.6 | % | ||||||
| Total deposits | 5,711,550 | 5,631,882 | 79,668 | 1.4 | % | ||||||
| Borrowings | 1,095,000 | 1,206,497 | (111,497) | -9.2 | % | ||||||
| Advance payments by borrowers for taxes | 18,474 | 19,261 | (787) | -4.1 | % | ||||||
| Other liabilities | 38,458 | 37,166 | 1,292 | 3.5 | % | ||||||
| Total liabilities | 6,863,482 | 6,894,806 | (31,324) | -0.5 | % | ||||||
| Stockholders' Equity | |||||||||||
| Common stock | 648 | 648 | — | — | % | ||||||
| Paid-in capital | 494,959 | 494,490 | 469 | 0.1 | % | ||||||
| Retained earnings | 346,749 | 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' equity | 757,396 | 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 assets | 9.94 | % | 9.85 | % | 0.09 | % | |||||
| Tangible equity to tangible assets (1) | 8.56 | % | 8.47 | % | 0.09 | % | |||||
| Share data | |||||||||||
| Outstanding shares | 64,739 | 64,739 | — | — | % | ||||||
| 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.
Kearny Financial Corp.
Consolidated Statements of Income
(Unaudited)
| (Dollars and Shares in Thousands,<br>Except Per Share Data) | Three Months Ended | Variance <br>or Change | Variance <br>or Change Pct. | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31,<br>2025 | September 30,<br>2025 | |||||||||||
| Interest income | ||||||||||||
| Loans | $ | 67,410 | $ | 68,349 | $ | (939) | -1.4 | % | ||||
| Taxable investment securities | 11,623 | 12,600 | (977) | -7.8 | % | |||||||
| Tax-exempt investment securities | 35 | 41 | (6) | -14.6 | % | |||||||
| Other interest-earning assets | 1,584 | 1,518 | 66 | 4.3 | % | |||||||
| Total interest income | 80,652 | 82,508 | (1,856) | -2.2 | % | |||||||
| Interest expense | ||||||||||||
| Deposits | 33,148 | 33,931 | (783) | -2.3 | % | |||||||
| Borrowings | 9,535 | 10,873 | (1,338) | -12.3 | % | |||||||
| Total interest expense | 42,683 | 44,804 | (2,121) | -4.7 | % | |||||||
| Net interest income | 37,969 | 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 losses | 37,402 | 37,786 | (384) | -1.0 | % | |||||||
| Non-interest income | ||||||||||||
| Fees and service charges | 1,295 | 892 | 403 | 45.2 | % | |||||||
| Gain on sale of loans | 224 | 199 | 25 | 12.6 | % | |||||||
| Income from bank owned life insurance | 2,710 | 2,689 | 21 | 0.8 | % | |||||||
| Electronic banking fees and charges | 473 | 416 | 57 | 13.7 | % | |||||||
| Other income | 869 | 1,651 | (782) | -47.4 | % | |||||||
| Total non-interest income | 5,571 | 5,847 | (276) | -4.7 | % | |||||||
| Non-interest expense | ||||||||||||
| Salaries and employee benefits | 18,373 | 18,745 | (372) | -2.0 | % | |||||||
| Net occupancy expense of premises | 2,888 | 3,307 | (419) | -12.7 | % | |||||||
| Equipment and systems | 4,007 | 3,974 | 33 | 0.8 | % | |||||||
| Advertising and marketing | 412 | 562 | (150) | -26.7 | % | |||||||
| Federal deposit insurance premium | 1,357 | 1,301 | 56 | 4.3 | % | |||||||
| Directors' compensation | 306 | 307 | (1) | -0.3 | % | |||||||
| Other expense | 3,848 | 3,470 | 378 | 10.9 | % | |||||||
| Total non-interest expense | 31,191 | 31,666 | (475) | -1.5 | % | |||||||
| Income before income taxes | 11,782 | 11,967 | (185) | -1.5 | % | |||||||
| Income taxes | 2,333 | 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 ratio | 73.9 | % | 73.2 | % | 0.7 | % | ||||||
| Weighted average number of common shares outstanding | ||||||||||||
| Basic | 62,858 | 62,741 | 117 | |||||||||
| Diluted | 63,061 | 62,951 | 110 |
Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)
| (Dollars in Thousands) | Three Months Ended | Variance <br>or Change | Variance <br>or Change Pct. | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31,<br>2025 | September 30,<br>2025 | |||||||||||
| Assets | ||||||||||||
| Interest-earning assets: | ||||||||||||
| Loans receivable, including loans held for sale | $ | 5,778,680 | $ | 5,806,767 | $ | (28,087) | -0.5 | % | ||||
| Taxable investment securities | 1,185,602 | 1,236,705 | (51,103) | -4.1 | % | |||||||
| Tax-exempt investment securities | 5,902 | 6,856 | (954) | -13.9 | % | |||||||
| Other interest-earning assets | 123,475 | 115,776 | 7,699 | 6.6 | % | |||||||
| Total interest-earning assets | 7,093,659 | 7,166,104 | (72,445) | -1.0 | % | |||||||
| Non-interest-earning assets | 455,752 | 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 | % | ||||
| Savings | 759,247 | 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 deposits | 5,102,773 | 5,064,892 | 37,881 | 0.7 | % | |||||||
| Borrowings: | ||||||||||||
| Federal Home Loan Bank advances | 998,760 | 1,077,146 | (78,386) | -7.3 | % | |||||||
| Other borrowings | 38,478 | 85,489 | (47,011) | -55.0 | % | |||||||
| Total borrowings | 1,037,238 | 1,162,635 | (125,397) | -10.8 | % | |||||||
| Total interest-bearing liabilities | 6,140,011 | 6,227,527 | (87,516) | -1.4 | % | |||||||
| Non-interest-bearing liabilities: | ||||||||||||
| Non-interest-bearing deposits | 595,035 | 581,625 | 13,410 | 2.3 | % | |||||||
| Other non-interest-bearing liabilities | 59,447 | 65,024 | (5,577) | -8.6 | % | |||||||
| Total non-interest-bearing liabilities | 654,482 | 646,649 | 7,833 | 1.2 | % | |||||||
| Total liabilities | 6,794,493 | 6,874,176 | (79,683) | -1.2 | % | |||||||
| Stockholders' equity | 754,918 | 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 liabilities | 115.53 | % | 115.07 | % | 0.46 | % | 0.4 | % |
Kearny Financial Corp.
Performance Ratio Highlights
(Unaudited)
| Three Months Ended | Variance <br>or Change | |||||
|---|---|---|---|---|---|---|
| December 31,<br>2025 | September 30,<br>2025 | |||||
| Average yield on interest-earning assets: | ||||||
| Loans receivable, including loans held for sale | 4.67 | % | 4.71 | % | -0.04 | % |
| Taxable investment securities | 3.92 | % | 4.08 | % | -0.16 | % |
| Tax-exempt investment securities (1) | 2.36 | % | 2.42 | % | -0.06 | % |
| Other interest-earning assets | 5.13 | % | 5.24 | % | -0.11 | % |
| Total interest-earning assets | 4.55 | % | 4.61 | % | -0.06 | % |
| Average cost of interest-bearing liabilities: | ||||||
| Deposits: | ||||||
| Interest-bearing demand | 2.51 | % | 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 deposits | 2.60 | % | 2.68 | % | -0.08 | % |
| Borrowings: | ||||||
| Federal Home Loan Bank advances | 3.66 | % | 3.69 | % | -0.03 | % |
| Other borrowings | 4.13 | % | 4.44 | % | -0.31 | % |
| Total borrowings | 3.68 | % | 3.74 | % | -0.06 | % |
| Total interest-bearing liabilities | 2.78 | % | 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.
| Five-Quarter Financial Trend Analysis |
|---|
Kearny Financial Corp.
Consolidated Balance Sheets
| (Dollars and Shares in Thousands,<br>Except Per Share Data) | December 31,<br>2025 | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Unaudited) | (Unaudited) | (Audited) | (Unaudited) | (Unaudited) | |||||||||||
| Assets | |||||||||||||||
| Cash and cash equivalents | $ | 147,340 | $ | 130,139 | $ | 167,269 | $ | 126,095 | $ | 141,554 | |||||
| Securities available for sale | 1,000,397 | 1,016,182 | 1,012,969 | 1,003,393 | 1,018,279 | ||||||||||
| Securities held to maturity | 112,800 | 116,681 | 120,217 | 124,859 | 127,266 | ||||||||||
| Loans held-for-sale | 8,786 | 6,650 | 5,931 | 6,187 | 5,695 | ||||||||||
| Loans receivable | 5,753,393 | 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 | ||||||||||
| Premises and equipment | 42,559 | 43,222 | 43,897 | 44,192 | 45,127 | ||||||||||
| Federal Home Loan Bank stock | 57,212 | 62,011 | 64,261 | 62,261 | 64,443 | ||||||||||
| Accrued interest receivable | 27,420 | 29,460 | 28,098 | 28,521 | 27,772 | ||||||||||
| Goodwill | 113,525 | 113,525 | 113,525 | 113,525 | 113,525 | ||||||||||
| Core deposit intangible | 1,198 | 1,317 | 1,436 | 1,554 | 1,679 | ||||||||||
| Bank owned life insurance | 309,404 | 307,248 | 304,717 | 303,629 | 301,339 | ||||||||||
| Deferred income taxes, net | 51,617 | 51,587 | 55,203 | 52,913 | 53,325 | ||||||||||
| Other assets | 40,185 | 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-bearing | 5,084,370 | 5,053,401 | 5,093,172 | 5,120,230 | 5,069,550 | ||||||||||
| Total deposits | 5,711,550 | 5,631,882 | 5,675,217 | 5,707,348 | 5,671,060 | ||||||||||
| Borrowings | 1,095,000 | 1,206,497 | 1,256,491 | 1,213,976 | 1,258,949 | ||||||||||
| Advance payments by borrowers for taxes | 18,474 | 19,261 | 19,317 | 19,981 | 17,986 | ||||||||||
| Other liabilities | 38,458 | 37,166 | 43,463 | 43,723 | 38,537 | ||||||||||
| Total liabilities | 6,863,482 | 6,894,806 | 6,994,488 | 6,985,028 | 6,986,532 | ||||||||||
| Stockholders' Equity | |||||||||||||||
| Common stock | 648 | 648 | 646 | 646 | 646 | ||||||||||
| Paid-in capital | 494,959 | 494,490 | 494,546 | 494,131 | 494,092 | ||||||||||
| Retained earnings | 346,749 | 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' equity | 757,396 | 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 assets | 9.94 | % | 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 | 64,739 | 64,739 | 64,577 | 64,580 | 64,580 | ||||||||||
| 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.
Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)
| (Dollars in Thousands) | December 31,<br>2025 | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>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 mortgage | 990,178 | 988,969 | 986,556 | 988,074 | 950,194 | ||||||||||
| Commercial business | 169,884 | 142,304 | 138,755 | 140,224 | 135,740 | ||||||||||
| Construction | 181,766 | 189,626 | 177,713 | 174,722 | 176,704 | ||||||||||
| Total commercial loans | 3,960,952 | 3,961,636 | 4,012,678 | 4,036,426 | 3,985,261 | ||||||||||
| One- to four-family residential mortgage | 1,730,543 | 1,749,362 | 1,748,591 | 1,761,465 | 1,765,160 | ||||||||||
| Consumer loans: | |||||||||||||||
| Home equity loans | 59,046 | 54,116 | 50,737 | 49,699 | 47,101 | ||||||||||
| Other consumer | 2,523 | 2,487 | 2,533 | 2,859 | 2,778 | ||||||||||
| Total consumer loans | 61,569 | 56,603 | 53,270 | 52,558 | 49,879 | ||||||||||
| Total loans, excluding yield adjustments | 5,753,064 | 5,767,601 | 5,814,539 | 5,850,449 | 5,800,300 | ||||||||||
| Unaccreted yield adjustments | 329 | (182) | (1,602) | (4,274) | (8,542) | ||||||||||
| Loans receivable, net of yield adjustments | 5,753,393 | 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 loans | 51,306 | 44,085 | 45,597 | 37,683 | 37,697 | ||||||||||
| Total nonperforming loans | 51,306 | 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 loans | 0.78 | % | 0.78 | % | 0.79 | % | 0.76 | % | 0.77 | % | |||||
| ACL to nonperforming loans | 87.63 | % | 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 | % |
Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)
| (Dollars in Thousands) | December 31,<br>2025 | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Funding composition: | |||||||||||||||
| Deposits: | |||||||||||||||
| Non-interest-bearing deposits | $ | 627,180 | $ | 578,481 | $ | 582,045 | $ | 587,118 | $ | 601,510 | |||||
| Interest-bearing demand | 2,376,825 | 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 deposits | 5,084,370 | 5,053,401 | 5,093,172 | 5,120,230 | 5,069,550 | ||||||||||
| Total deposits | 5,711,550 | 5,631,882 | 5,675,217 | 5,707,348 | 5,671,060 | ||||||||||
| Borrowings: | |||||||||||||||
| Federal Home Loan Bank advances | 800,000 | 1,006,497 | 1,106,491 | 1,028,976 | 1,028,949 | ||||||||||
| Overnight borrowings | 295,000 | 200,000 | 150,000 | 185,000 | 230,000 | ||||||||||
| Total borrowings | 1,095,000 | 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 deposits | 100.1 | % | 101.7 | % | 101.7 | % | 101.8 | % | 101.4 | % | |||||
| Deposits as a % of total funding | 83.9 | % | 82.4 | % | 81.9 | % | 82.5 | % | 81.8 | % | |||||
| Borrowings as a % of total funding | 16.1 | % | 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.
Kearny Financial Corp.
Consolidated Statements of Income
(Unaudited)
| Three Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars and Shares in Thousands,<br>Except Per Share Data) | December 31,<br>2025 | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 | ||||||||||
| Interest income | |||||||||||||||
| Loans | $ | 67,410 | $ | 68,349 | $ | 66,485 | $ | 64,768 | $ | 65,408 | |||||
| Taxable investment securities | 11,623 | 12,600 | 12,322 | 12,738 | 13,803 | ||||||||||
| Tax-exempt investment securities | 35 | 41 | 49 | 55 | 59 | ||||||||||
| Other interest-earning assets | 1,584 | 1,518 | 1,549 | 1,773 | 2,215 | ||||||||||
| Total interest income | 80,652 | 82,508 | 80,405 | 79,334 | 81,485 | ||||||||||
| Interest expense | |||||||||||||||
| Deposits | 33,148 | 33,931 | 33,607 | 34,912 | 36,721 | ||||||||||
| Borrowings | 9,535 | 10,873 | 10,955 | 10,380 | 12,152 | ||||||||||
| Total interest expense | 42,683 | 44,804 | 44,562 | 45,292 | 48,873 | ||||||||||
| Net interest income | 37,969 | 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 losses | 37,402 | 37,786 | 34,058 | 33,676 | 32,505 | ||||||||||
| Non-interest income | |||||||||||||||
| Fees and service charges | 1,295 | 892 | 655 | 573 | 627 | ||||||||||
| Gain on sale of loans | 224 | 199 | 190 | 112 | 304 | ||||||||||
| Income from bank owned life insurance | 2,710 | 2,689 | 2,869 | 2,617 | 2,619 | ||||||||||
| Electronic banking fees and charges | 473 | 416 | 442 | 391 | 493 | ||||||||||
| Other income | 869 | 1,651 | 835 | 869 | 830 | ||||||||||
| Total non-interest income | 5,571 | 5,847 | 4,991 | 4,562 | 4,873 | ||||||||||
| Non-interest expense | |||||||||||||||
| Salaries and employee benefits | 18,373 | 18,745 | 18,093 | 17,700 | 17,579 | ||||||||||
| Net occupancy expense of premises | 2,888 | 3,307 | 2,820 | 3,075 | 2,831 | ||||||||||
| Equipment and systems | 4,007 | 3,974 | 4,030 | 3,921 | 3,892 | ||||||||||
| Advertising and marketing | 412 | 562 | 615 | 609 | 311 | ||||||||||
| Federal deposit insurance premium | 1,357 | 1,301 | 1,395 | 1,450 | 1,503 | ||||||||||
| Directors' compensation | 306 | 307 | 307 | 326 | 361 | ||||||||||
| Other expense | 3,848 | 3,470 | 3,633 | 3,309 | 3,084 | ||||||||||
| Total non-interest expense | 31,191 | 31,666 | 30,893 | 30,390 | 29,561 | ||||||||||
| Income before income taxes | 11,782 | 11,967 | 8,156 | 7,848 | 7,817 | ||||||||||
| Income taxes | 2,333 | 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 ratio | 73.9 | % | 73.2 | % | 102.6 | % | 104.3 | % | 105.6 | % | |||||
| Weighted average number of common shares outstanding | |||||||||||||||
| Basic | 62,858 | 62,741 | 62,597 | 62,548 | 62,443 | ||||||||||
| Diluted | 63,061 | 62,951 | 62,755 | 62,713 | 62,576 |
Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)
| Three Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in Thousands) | December 31,<br>2025 | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>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 securities | 1,185,602 | 1,236,705 | 1,227,825 | 1,251,612 | 1,285,800 | ||||||||||
| Tax-exempt investment securities | 5,902 | 6,856 | 8,039 | 9,135 | 9,711 | ||||||||||
| Other interest-earning assets | 123,475 | 115,776 | 117,622 | 110,736 | 116,354 | ||||||||||
| Total interest-earning assets | 7,093,659 | 7,166,104 | 7,183,907 | 7,176,528 | 7,173,918 | ||||||||||
| Non-interest-earning assets | 455,752 | 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 deposits | 5,102,773 | 5,064,892 | 5,056,721 | 5,103,596 | 4,973,900 | ||||||||||
| Borrowings: | |||||||||||||||
| Federal Home Loan Bank advances | 998,760 | 1,077,146 | 1,083,902 | 1,028,958 | 1,085,455 | ||||||||||
| Other borrowings | 38,478 | 85,489 | 107,582 | 93,389 | 156,522 | ||||||||||
| Total borrowings | 1,037,238 | 1,162,635 | 1,191,484 | 1,122,347 | 1,241,977 | ||||||||||
| Total interest-bearing liabilities | 6,140,011 | 6,227,527 | 6,248,205 | 6,225,943 | 6,215,877 | ||||||||||
| Non-interest-bearing liabilities: | |||||||||||||||
| Non-interest-bearing deposits | 595,035 | 581,625 | 582,085 | 602,647 | 604,915 | ||||||||||
| Other non-interest-bearing liabilities | 59,447 | 65,024 | 64,405 | 59,919 | 65,258 | ||||||||||
| Total non-interest-bearing liabilities | 654,482 | 646,649 | 646,490 | 662,566 | 670,173 | ||||||||||
| Total liabilities | 6,794,493 | 6,874,176 | 6,894,695 | 6,888,509 | 6,886,050 | ||||||||||
| Stockholders' equity | 754,918 | 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<br>interest-bearing liabilities | 115.53 | % | 115.07 | % | 114.98 | % | 115.27 | % | 115.41 | % |
Kearny Financial Corp.
Performance Ratio Highlights
| Three Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| December 31,<br>2025 | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 | ||||||
| Average yield on interest-earning assets: | ||||||||||
| Loans receivable, including loans held-for-sale | 4.67 | % | 4.71 | % | 4.56 | % | 4.46 | % | 4.54 | % |
| Taxable investment securities | 3.92 | % | 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 assets | 5.13 | % | 5.24 | % | 5.27 | % | 6.40 | % | 7.62 | % |
| Total interest-earning assets | 4.55 | % | 4.61 | % | 4.48 | % | 4.42 | % | 4.54 | % |
| Average cost of interest-bearing liabilities: | ||||||||||
| Deposits: | ||||||||||
| Interest-bearing demand | 2.51 | % | 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 deposits | 2.60 | % | 2.68 | % | 2.66 | % | 2.74 | % | 2.95 | % |
| Borrowings: | ||||||||||
| Federal Home Loan Bank advances | 3.66 | % | 3.69 | % | 3.60 | % | 3.63 | % | 3.78 | % |
| Other borrowings | 4.13 | % | 4.44 | % | 4.45 | % | 4.41 | % | 4.88 | % |
| Total borrowings | 3.68 | % | 3.74 | % | 3.68 | % | 3.70 | % | 3.91 | % |
| Total interest-bearing liabilities | 2.78 | % | 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.
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,<br>Except Per Share Data) | December 31,<br>2025 | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>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 taxes | 2,333 | 2,461 | 1,387 | 1,200 | 1,251 | ||||||||||
| Provision for (reversal of) credit losses | 567 | (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 - basic | 62,858 | 62,741 | 62,597 | 62,548 | 62,443 | ||||||||||
| Weighted average common shares - diluted | 63,061 | 62,951 | 62,755 | 62,713 | 62,576 | ||||||||||
| 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<br>(non-GAAP) | $ | 0.20 | $ | 0.19 | $ | 0.16 | $ | 0.13 | $ | 0.13 | |||||
| Pre-tax, pre-provision net revenue per share - diluted<br>(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 | % |
Kearny Financial Corp.
Reconciliation of GAAP to Non-GAAP
(Unaudited)
| Three Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars and Shares in Thousands,<br>Except Per Share Data) | December 31,<br>2025 | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>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
krny-20251231xexx992xfin
January 22, 2026 I N V E S T O R P R E S E N T A T I O N S E C O N D Q U A R T E R F I S C A L 2 0 2 6 Exhibit 99.2
Forward Looking Statements & Financial Measures 2 This presentation may include certain “forward-looking statements,” which are made in good faith by Kearny Financial Corp. (the “Company”) pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties, such as statements of the Company’s plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Company’s control). In addition to the factors described under Item 1A. Risk Factors in the Company’s Annual Report on Form 10-K, and subsequent filings with the Securities and Exchange Commission, the following factors, among others, could cause the Company’s financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: • the strength of the United States economy in general and the strength of the local economy in which the Company conducts operations, • the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, interest rates, market and monetary fluctuations, • the impact of changes in laws, regulations and government policies effecting financial institutions (including taxation, banking, securities, insurance and tariffs), • changes in accounting policies and practices, as may be adopted by regulatory agencies, the Financial Accounting Standards Board (“FASB”) or the Public Company Accounting Oversight Board, • technological changes, • competition among financial services providers, and • the success of the Company at managing the risks involved in the foregoing and managing its business. The Company cautions that the foregoing list of important factors is not exhaustive. Readers should not place any undue reliance on any forward looking statements, which speak only as of the date made. The Company does not undertake 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. This presentation contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management uses these “non-GAAP” measures in its analysis of the Company’s performance. Management believes these non-GAAP financial measures allow for better comparability of period to period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. A reconciliation of the non-GAAP measures used in this presentation to the most directly comparable GAAP measures is provided at the end of this presentation.
Kearny Financial Corp. 1 Financial information as of December 31, 2025. Source: S&P Global Market Intelligence & Company Filings. 3 Branch/Office Footprint NASDAQ: KRNY Founded: 1884 Assets $7.6 billion Loans $5.8 billion Deposits $5.7 billion Capital $0.8 billion TBV Per Share: $9.93 Market Cap: $479.7 million Kearny Snapshot1 40 branches across 12 counties - in NJ and the NY metro area. Top 10 NJ Financial Institution - by Assets & Deposits
4 4 Origins 1884 — Founded in Kearny, NJ 1941 — Obtained Federal Charter 2017 — Converted to NJ State– Chartered Savings Bank Capital 2005 — First-Step Mutual Conversion & $218.2M IPO 2015 — Second-Step Conversion & $717.5M Stock Offering Bank Acquisitions 1999 — South Bergen Savings Bank 2003 — Pulaski Bancorp 2004 — West Essex Bank 2011 — Central Jersey Bancorp 2014 — Atlas Bank 2018 — Clifton Bancorp 2020 — MSB Financial Corp. Client & Community 2015 — KearnyBank Foundation formed (funded with $10M) 2021 — Private Client Services introduced 2022 — Kearny Investment Services established 140+ Years of Growth and Community Impact “A legacy of trust, a future of opportunity.”
Second Quarter 2026 Performance 1 GAAP to Adjusted reconciliation on page 19. Source: Company Filings. 5 Quarter Highlights Strengthened Earnings Power: Pre-tax, pre-provision net revenue rose 3.9% to $12.3 million, underscoring continued improvement in core earnings. Expanded Margin: Net interest margin increased 4 bps to 2.14%, extending the positive momentum from the prior quarter. Reinforced Credit Quality: Non-performing assets declined 20.6% to $51.3 million (0.67% of assets), reflecting a normalization of credit quality trends following the repayment of a previously disclosed non-performing construction loan. Advanced Portfolio Diversification: Grew commercial business and home equity lending, while strategically reducing multifamily mortgage loans. Enhanced Funding Strength: Total deposits increased by $79.7 million (1.4%), providing additional funding capacity to reduce higher-cost wholesale borrowings and further strengthen the balance sheet. Reported / Adjusted GAAP Net Income: $9.4 million Diluted EPS: $0.15 Net Interest Income: $38.0 million Net Interest Margin: 2.14% Dividend Yield: 5.94% CET- 1 Ratio: 14.67% Financial Metrics
Sustained Earnings Growth and Margin Expansion Net Interest Income & Net Interest Margin 6 Earnings Metrics 2 1 See “Non-GAAP Financial Information” for reconciliation on page 19. Source: Company Filings. ($ thousands) $32,612 $34,042 $35,843 $37,704 $37,969 1.82% 1.90% 2.00% 2.10% 2.14% 2Q25 3Q25 4Q25 1Q26 2Q26 Net Interest Income Net Interest Margin $6,566 $6,648 $6,769 $9,506 $9,449 $7,924 $8,214 $9,941 $11,885 $12,349 $0.10 $0.11 $0.11 $0.15 $0.15 $0.13 $0.13 $0.16 $0.19 $0.20 2Q25 3Q25 4Q25 1Q26 2Q26 Net income Pre-tax, pre-provision net revenue Earnings per share, diluted Pre-tax, pre-provision earnings per share 1 1 ($ thousands, except per share data)
Granular Deposit Franchise 1 As of December 31, 2025. Source: Company Filings. 7 Non-Maturity Deposit Mix1 ($ millions) 20.7% 13.3% 13.5% 41.6% 11.0%* Deposit Composition $1,214 $1,218 $1,219 $1,208 $1,180 $733 $733 $758 $759 $757 $742 $758 $754 $751 $770 $2,380 $2,411 $2,362 $2,335 $2,377 $602 $587 $582 $578 $627 $5,471 $5,707 $5,675 $5,632 $5,712 2Q25 3Q25 4Q25 1Q26 2Q26 Retail CDs Wholesale CDs Savings Interest Bearing DDA Non-interest Bearing DDA Consumer 63.4% Commercial 19.8% Government 16.8% * Increase from 1Q26 to 2Q26 in non-interest bearing demand deposits was largely the result of the migration of a consumer interest bearing product to a non-interest bearing product Deposit Trend & Composition
Retail Deposit Detail 1 Quarters are based on a calendar year view. 2As of December 31, 2025. 3 Excludes brokered and state & local government deposits. Source: Company Filings. 8 Retail CD Maturities1 Retail Deposit Segmentation2,3 ($ millions) $532 $256 $172 $132 $89 3.66% 3.11% 3.28% 3.12% 2.49% 1Q26 2Q26 3Q26 4Q26 2027 & Beyond Product # of Accounts Balance ($ millions) Average Balance per Account Checking 50,648 2,371 46,821 Savings 28,163 769 27,300 CDs 22,270 1,177 52,835 Total Retail Deposits 101,081 $ 4,317 $ 42,707
1-4 Family 30.1% Home Equity 1.0% Multi-family 45.5% CRE 17.2% Construction 3.2% C&I 3.0% Diversified Loan Portfolio Loan Trend 1 As of December 31, 2025. Source: S&P Global Market Intelligence & Company Filings. 9 QTD Yield on Loans 4.67% New York 32.8% New Jersey 55.5% Pennsylvania 6.2% Other 5.4% Geographic Distribution1 Progressing Portfolio Diversification: Commercial business and home-equity loans increased supporting the Company’s ongoing transition to a more balanced loan mix. Loan yields increased 13bps year over year to 4.67% due to the ongoing repricing of the existing portfolio. Highlights LTV 59.8% Loan Composition1 ($ millions) $1,765 $1,761 $1,749 $1,749 $1,731 $47 $50 $51 $54 $59 $2,723 $2,733 $2,710 $2,641 $2,619 $950 $988 $987 $989 $990 $177 $175 $178 $190 $182 $136 $140 $139 $142 $170 $5,800 $5,850 $5,815 $5,768 $5,753 1-4 Family Home Equity Multi-family CRE Construction C&I
Opportunity to Drive Margin Expansion 10 Multifamily / CRE Loan Repricing Opportunity1 CRE Portfolio Reprice: Loans reprice based on the 5-Year Treasury plus spread or contractual terms. Interest Income Upside: Repricing through 2029 has the potential to generate material cumulative annual interest income growth, assuming similar loan replacement. Yield Enhancement Opportunity: Maturing loans enable strategic redeployment into higher-yielding assets, optimizing portfolio returns. 1 Excludes coupon greater than 6%. Based on a calendar year view. 2 Repricing Rate: Maturing loans assume treasury + a spread and Repricing loans assume contractual terms. Source: Company Filings ($ thousands) Highlights 2 $225,577 $444,208 $88,771 $238,384 $173,412 $272,045 $71,114 $55,264 3.70% 3.74% 3.97% 3.89% 6.62% 6.70% 6.21% 6.47% 2026 2027 2028 2029 Maturing Repricing Current Rate Repricing Rate (if repriced 1/2/26) Implied Spread
Majority NYC Free Market 40.0% Outside NYC 54.8% Fully NYC Rent Regulated 1.8% Majority NYC Rent Regulated 3.4% Multifamily Loan Portfolio Multifamily Loan Portfolio Composition1 Source: Company Filings 1 As of December 31, 2025. 11 NYC Multifamily Loan Portfolio by Location Strong Asset Quality: Proven resilience across multiple credit cycles. Diversified Exposure: <50% of Multifamily in NYC; only 5% majority rent-regulated. Near-Term Maturities: 21.5% of NYC Multifamily loans reprice or mature within 12 months. Total MF $2.6B New York City (“NYC”) Multifamily1 Highlights ($ in millions) NYC Multifamily Portfolio: $1.2 billion Average Loan Balance: $3.28 million Weighted Average LTV: 60.9% Nonperforming Loans / Total MF Loans: 1.48% Next 12 Months of Maturity & Repricing: $254.7 million
CRE Loan Detail Source: Company Filings. 1 As of December 31, 2025. 12 Retail 27.0% Mixed Use 25.3% Office 13.5% Industrial 18.4% Specialty & Other 11.9% Medical 4.0% Total CRE $990M New Jersey 56.6% Brooklyn 8.0% New York (Ex. Brooklyn) 26.3% Pennsylvania 4.2% Other 4.9% LTV 52.5% CRE Portfolio by Collateral Type1 CRE Loan Geographic Distribution1
Manhattan 19.9% New York (Excl. Manhattan) 14.0% New Jersey 57.1% Other 9.0% Office Portfolio 1 As of December 31, 2025. Source: Company Filings. 13 Office Portfolio by Contractual Maturity1 13.5% of total CRE portfolio or $134 million Average loan size of $1.9 million ($ millions) Office Loan Geographic Distribution1 LTV 49.0% DSCR 1.8x Total Office $134M $11 $34 $17 $9 $27 $36 2026 2027 2028 2029 2030 2031+
Track Record of Strong Credit Performance 1 Data provided by Federal Reserve Bank of St. Louis. Source: Company Filings. 14 Net Charge-offs to Average Total Loans Between 2006 and 2Q26, including the periods of the Global Financial Crisis and the COVID-19 Pandemic, KRNY maintained an average annual net charge-off rate of 8 basis points, significantly lower than the 47 basis points average for all commercial banks (US Banks not among the top 100)1. 0.00 0.50 1.00 1.50 2.00 2.50 3.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2Q26 Commercial Banks (not among top 100) KRNY Global Financial Crisis Hurricane Sandy COVID-19 Pandemic Cumulative charge-offs for KRNY between 2006 and 2Q26 were minimal, totaling $41.5 million.
0.49% 0.49% 0.59% 0.84% 0.67% 2Q25 3Q25 4Q25 1Q26 2Q26 Asset Quality Metrics Non-Performing Assets / Total Assets 1 As of December 31, 2025; dollar amounts shown in millions. Source: Company Filings. 15 Net Charge-Offs / Average Loans Non-Performing Loans1 Allowance for Credit Losses ACL by Loan Segment1 Increase driven by one loan in the collection process, which has since been fully repaid. 0.04% 0.03% 0.00% 0.07% 0.05% 2Q25 3Q25 4Q25 1Q26 2Q26 Multi-family $37.0 CRE $5.7 C&I $0.7 1-4 Family $4.8 Home Equity $0.3 Construction $2.8 $44.5 $44.5 $46.2 $45.1 $45.0 0.77% 0.76% 0.79% 0.78% 0.78% 2Q25 3Q25 4Q25 1Q26 2Q26 ACL Balance ACL to Total Loans Receivable NPL’s $51.3M $3,961 $1,792 0.89% 0.54% Commercial Consumer ACL by Loan Segment Loan Balance ACL/Loans ($ millions)
Investment Securities 1 As of December 31, 2025. 2 Comprised entirely of securitized federal education loans with 97% U.S. government guarantees. 3 Assumes 29% marginal tax rate. Source: Company Filings. 16 Securities Composition1 Securities Average Balance & Yield Trend As of December 31, 2025, the after-tax net unrecognized loss on securities held-to-maturity was $7.9 million, or 1.23% of tangible equity3 AFS/HTM & Effective Duration1 ($ millions) Corporate Bonds 13.5% CLO 21.3% ABS Student Loans 5.1% Agency MBS 59.7% Municipal Bonds 0.5% Total Effective Duration ≈ 3.8 years Floating rate securities ≈ 27.0% $1,296 $1,261 $1,236 $1,244 $1,192 4.28% 4.06% 4.00% 4.07% 3.91% 2Q25 3Q25 4Q25 1Q26 2Q26 Securities Portfolio Yield on Investments AFS , 89.9% HTM , 10.1% 2
Capital and Liquidity 1 Kearny Financial Corp. (NASDAQ: KRNY) Regulatory Capital Ratios as of December 31, 2025 are preliminary. 2 Well capitalized regulatory minimums are determined at Bank level. 3 As of December 31, 2025 Source: Company Filings. 17 HighlightsRegulatory Capital Ratios1,2,3 Equity Capitalization Level Liquidity Sources3 Well-Capitalized Status Maintained Regulatory ratios for both Company and Bank remain well above “well-capitalized” thresholds. Tangible Equity Strength Tangible equity / tangible assets: 8.56%, up 29 bps YoY, reinforcing balance sheet resilience. Significant Contingent Liquidity $2.7B secured borrowing capacity with FHLB & Fed. Available liquidity is 3.1x greater than the estimated uninsured deposits. ($ millions) 5.00% 6.50% 8.00% 10.00%9.41% 14.67% 14.67% 15.62% Tier 1 Leverage Common Equity Tier 1 Tier 1 Risk-Based Capital Total Risk-Based Capital Well Capitalized Regulatory Minimum KRNY 8.27% 8.31% 8.27% 8.47% 8.56% 9.63% 9.67% 9.64% 9.85% 9.94% 2Q25 3Q25 4Q25 1Q26 2Q26 Tangible Common Equity / Tangible Assets Equity / Assets Total Capacity Available Capacity Internal Sources: Free Securities and other 719$ 719$ External Sources: FRB 1,335 1,335 FHLB 2,070 650 Total Liquidity 3,866$ 2,704$
18 Conservative Underwriting Culture Comprehensive CRE / Multifamily Underwriting Highly disciplined LTV and DSCR standards Interest rates stressed at origination DSCR based on in-place rents, not projections, with conservative allowances for vacancy NOI underwritten to include forecasted expense increases and full taxes (where a tax abatement exists) Approval Authority & Underwriting Consistency Lending authority aggregated by borrower/group of related borrowers Technology ensures consistent and efficient underwriting and risk rating process Multi-faceted Loan Review & Stress Testing Semi-annual third-party loan-level stress testing and annual capital-based stress testing Quarterly third-party portfolio loan review with 65% of total portfolio reviewed on an annual basis Annual internal loan reviews on all commercial loans with balances of $2.5 million or greater Proactive Workout Process Dedicated team of portfolio managers and loan workout specialists Weekly meetings comprised of loan officers, credit personnel and special assets group to pre-emptively address delinquencies or problem credits Philosophy of aggressively addressing impaired assets in a timely fashion Senior Credit Officer Approval Management Loan Committee Approval Board Loan Committee Approval
Non-GAAP Reconciliation 19 Reconciliation of GAAP to Non-GAAP (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 taxes $2,333 $2,461 $1,387 $1,200 $1,251 (Reversal of) provision for credit losses $567 ($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 - basic 62,858 62,741 62,597 62,548 62,443 Weighted average common shares - diluted 63,061 62,951 62,755 62,713 62,576 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% For the quarter ended