krny-20230427
FALSE000161724200016172422023-04-272023-04-27

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): April 27, 2023
_____________________________
KEARNY FINANCIAL CORP.
(Exact name of Registrant as Specified in Its Charter)
_____________________________
Maryland001-3739930-0870244
(State or Other Jurisdiction
of Incorporation)
(Commission File Number)
(IRS Employer
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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueKRNYThe 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 April 27, 2023, Kearny Financial Corp. (the “Company”), the holding company for Kearny Bank, issued a press release reporting its financial results for the period ended March 31, 2023.
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 April 27, 2023, 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 filed as Exhibit 99.2 to this Current Report on Form 8-K. 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 and shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933.
Item 8.01    Other Events
On April 27, 2023, the Company’s Board of Directors announced a quarterly cash dividend of $0.11 per share, payable on May 24, 2023 to stockholders of record as of May 10, 2023.
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 NumberDescription
99.1
99.2
104Cover 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: April 27, 2023
By:/s/ Keith Suchodolski
Keith Suchodolski
Senior Executive Vice President and Chief Financial Officer


Exhibit 99.1
FOR IMMEDIATE RELEASE
April 27, 2023
For further information contact:
Craig L. Montanaro, President and Chief Executive Officer, or
Keith Suchodolski, Senior Executive Vice President and Chief Financial Officer
Kearny Financial Corp.
(973) 244-4500
KEARNY FINANCIAL CORP. ANNOUNCES THIRD QUARTER FISCAL 2023 RESULTS
AND DECLARATION OF CASH DIVIDEND

Fairfield, N.J., April 27, 2023 – Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), reported net income for the quarter ended March 31, 2023 of $10.3 million, or $0.16 per diluted share, compared to $2.0 million, or $0.03 per diluted share, for the quarter ended December 31, 2022. Net income for the quarters ended March 31, 2023 and December 31, 2022 was impacted by various non-recurring items, as described in further detail below.
The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on May 24, 2023 to stockholders of record as of May 10, 2023.
Craig L. Montanaro, President and Chief Executive Officer, commented, “While my comments in recent quarters have featured the terms ‘risk’ and ‘uncertainty’, the past few weeks have brought fresh challenges to the banking sector, and the economy at large. Despite the sudden failure of two large regional banks, the voluntary wind-down of a third and pressure on the industry as a whole, I am pleased to report that Kearny remains on solid footing. Our highly-diversified deposit base, conservative risk culture and abundance of available liquidity allows us to navigate these uncertain times, as we have throughout our 139 years in operation.”
Mr. Montanaro further noted, “Looking to this quarter’s earnings, the rate of our net interest margin compression has begun to slow, while our previously announced operating efficiency initiative has gotten off to a strong start. Non-interest expense, excluding non-recurring items, declined 7.3% quarter-over-quarter and will be further supported by the June 2023 consolidation of two branch locations.”
Liquidity & Funding
•Deposits decreased $168.0 million, or 2.8%, to $5.80 billion at March 31, 2023, from $5.97 billion at December 31, 2022. Details regarding the change in deposit balances are presented in the table below. The decrease in deposits was largely concentrated in three products: consumer savings, commercial non-interest checking and government deposits. The decline in consumer savings reflected the continuation of a multi-quarter trend resulting from the migration of low-rate savings balances into higher-rate money market and time deposit products. The reduction in non-interest checking deposits was a combination of outflow and the migration of non-interest bearing commercial deposits into interest-bearing products. The decrease in government deposits was largely attributable to seasonal outflows resulting from expected tax and pension payments.
(Dollars in Thousands)March 31,
2023		December 31,
2022		Variance
or Change		Variance
or Change Pct.
Government deposits$607,925 $677,923 $(69,998)(10.3)%
Excluding government deposits:
Non-interest-bearing615,696 649,044 (33,348)(5.1)%
Interest-bearing demand1,699,407 1,663,302 36,105 2.2 %
Savings795,310 881,837 (86,527)(9.8)%
Certificates of deposit2,085,066 2,099,265 (14,199)(0.7)%
Total deposits$5,803,404 $5,971,371 $(167,967)(2.8)%
•The aggregate amount of uninsured deposits was $1.68 billion at March 31, 2023. Excluding collateralized deposits of state and local governments, and deposits of the Bank’s wholly-owned subsidiary and holding company, the aggregate amount of uninsured deposits was $705.7 million, or 12.2% of total deposits.
1

•Borrowings increased $228.1 million to $1.61 billion, or 19.3% of total assets, at March 31, 2023, from $1.38 billion, or 16.7% of total assets, at December 31, 2022. At March 31, 2023, borrowings were comprised of $1.54 billion of advances from the Federal Home Loan Bank of New York and $70.0 million from unsecured fed funds lines of credit. There were no borrowings outstanding from the Federal Reserve Bank at, or during the quarter ended, March 31, 2023.
•At March 31, 2023, the Company maintained available secured borrowing capacity of $2.37 billion, of which $1.88 billion was immediately accessible via in-place collateral and $493.2 million represented the market value of unpledged securities.
Assets
•Total assets increased $60.0 million, or 0.7%, to $8.35 billion at March 31, 2023, from $8.29 billion at December 31, 2022.
•Cash and cash equivalents increased $118.9 million, or 157.2%, to $194.6 million at March 31, 2023, from $75.7 million at December 31, 2022. The increase was driven by the Company’s decision to hold excess cash on its balance sheet due to external market conditions.
•Loans receivable decreased $17.8 million, or 0.3%, to $5.97 billion at March 31, 2023, from $5.98 billion at December 31, 2022.
•Investment securities decreased $23.3 million to $1.42 billion, or 17.0% of total assets, at March 31, 2023, from $1.44 billion, or 17.4% of total assets, at December 31, 2022. The decrease was driven by paydowns, partially offset by a $9.7 million improvement in unrealized losses on securities available for sale during the quarter ended March 31, 2023.
Earnings
Performance Highlights
•Return on average assets was 0.50% for the quarter ended March 31, 2023 compared to 0.10% for the quarter ended December 31, 2022.
•Return on average equity was 4.69% and 0.90% for the quarters ended March 31, 2023 and December 31, 2022, respectively. Return on average tangible equity was 6.20% and 1.20% for those same comparative periods.
Net Interest Income and Net Interest Margin
•Net interest margin contracted 18 basis points to 2.20% for the quarter ended March 31, 2023, from 2.38% for the quarter ended December 31, 2022. Excluding purchase accounting accretion and loan prepayment penalty income, net interest margin contracted 11 basis points.
•Net interest income decreased $2.4 million to $42.4 million for the quarter ended March 31, 2023, from $44.8 million for the quarter ended December 31, 2022. Included in net interest income for the quarters ended March 31, 2023 and December 31, 2022, respectively, was purchase accounting accretion of $711,000 and $1.9 million, and loan prepayment penalty income of $103,000 and $166,000.
Non-Interest Income
•Non-interest income increased $10.1 million to income of $1.6 million for the quarter ended March 31, 2023, from a loss of $8.5 million for the quarter ended December 31, 2022. The increase was primarily attributable to a loss of $15.2 million on the sale of securities during the prior comparative period.
•Loss on sale of loans was $2.4 million for the quarter ended March 31, 2023 compared to a gain on sale of loans of $134,000 for the quarter ended December 31, 2022. The loss in the current period was the result of the sale of a non-performing multi-family mortgage loan held-for-sale located in Queens, NY. The loan was acquired in 2018 and had been classified as held-for-sale since June 30, 2022.
•Other income decreased $2.7 million to $1.1 million for the quarter ended March 31, 2023, primarily due to a non-recurring gain of $2.9 million attributable to the sale of a former branch location recognized during the prior comparative period.
2

Non-Interest Expense
•Non-interest expense decreased $2.3 million to $30.4 million for the quarter ended March 31, 2023, from $32.7 million for the quarter ended December 31, 2022. Excluding $800,000 of branch consolidation expense, of which $250,000 was recorded in occupancy expense and $550,000 was recorded in other expense, non-interest expense for the quarter ended March 31, 2023 was $29.6 million.
•Salaries and benefits expense decreased $1.9 million to $18.0 million for the quarter ended March 31, 2023. This decrease was driven by lower salary expense as a result of reduced headcount and a decrease in incentive payments tied to loan origination volume.
•The efficiency and non-interest expense ratios were 68.96% and 1.47%, respectively, for the quarter ended March 31, 2023, as compared to 89.93% and 1.62%, respectively, for the quarter ended December 31, 2022.
Income Taxes
•Income tax expense totaled $2.9 million for the quarter ended March 31, 2023 compared to $33,000 for the quarter ended December 31, 2022, resulting in an effective tax rate of 22.0% and 1.7%, respectively. The effective tax rate, for the prior comparative period, was impacted by the loss on the sale of securities.
Asset Quality
•The balance of non-performing assets decreased $5.2 million to $57.4 million, or 0.69% of total assets, at March 31, 2023, from $62.6 million, or 0.76% of total assets, at December 31, 2022. The decrease in non-performing assets was primarily attributable to the sale of a non-performing multi-family mortgage loan held-for-sale, as previously noted.
•Net charge-offs totaled $206,000, or 0.01% of average loans, on an annualized basis, for the quarter ended March 31, 2023, compared to $407,000, or 0.03% of average loans, on an annualized basis, for the quarter ended December 31, 2022.
•For the quarter ended March 31, 2023, the Company recorded a provision for credit losses of $451,000, compared to $1.7 million for the quarter ended December 31, 2022. The provision for the quarter ended March 31, 2023 was largely driven by a slower prepayment rate assumption, partially offset by a net reduction in reserves on loans individually analyzed for impairment.
•The allowance for credit losses was $49.1 million, or 0.82% of total loans, at March 31, 2023, compared to $48.9 million, or 0.81% of total loans, at December 31, 2022.
Capital
•For the quarter ended March 31, 2023, book value per share increased $0.04, or 0.3%, to $12.99 and tangible book value per share increased $0.01, or 0.1%, to $9.79.
•During the quarter ended March 31, 2023, the Company repurchased 698,286 shares of common stock at a cost of $6.6 million, or $9.50 per share.
•At March 31, 2023, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $100.4 million, partially offset by after-tax unrealized gains on derivatives of $27.5 million. Pre-tax net unrecognized losses on securities held to maturity of $13.6 million were not reflected in total stockholders’ equity.
•At March 31, 2023, the Company’s tangible equity to tangible assets ratio equaled 8.02% 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 Q3 Fiscal 2023 Investor Presentation, a copy of which is available through the Investor Relations link located at the bottom of the page of our website at www.kearnybank.com and via a Current Report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov.
Statements contained in this news release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company does not undertake and specifically disclaims any obligation to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.
Category: Earnings
3

Linked-Quarter Comparative Financial Analysis
Kearny Financial Corp.
Consolidated Balance Sheets
(Unaudited)
(Dollars and Shares in Thousands,
Except Per Share Data)		March 31,
2023		December 31,
2022		Variance
or Change		Variance
or Change Pct.
Assets
Cash and cash equivalents$194,568 $75,660 $118,908 157.2 %
Securities available for sale1,267,066 1,286,354 (19,288)-1.5 %
Securities held to maturity149,764 153,786 (4,022)-2.6 %
Loans held-for-sale5,401 12,940 (7,539)-58.3 %
Loans receivable5,966,325 5,984,133 (17,808)-0.3 %
Less: allowance for credit losses on loans(49,122)(48,877)245 0.5 %
Net loans receivable5,917,203 5,935,256 (18,053)-0.3 %
Premises and equipment49,589 50,953 (1,364)-2.7 %
Federal Home Loan Bank stock76,319 69,022 7,297 10.6 %
Accrued interest receivable28,794 27,368 1,426 5.2 %
Goodwill210,895 210,895 — — %
Core deposit intangible2,590 2,732 (142)-5.2 %
Bank owned life insurance291,220 289,673 1,547 0.5 %
Deferred income taxes, net53,151 51,107 2,044 4.0 %
Other real estate owned13,410 13,410 — — %
Other assets89,366 110,162 (20,796)-18.9 %
Total assets $8,349,336 $8,289,318 $60,018 0.7 %
Liabilities
Deposits:
Non-interest-bearing $617,778 $650,950 $(33,172)-5.1 %
Interest-bearing5,185,626 5,320,421 (134,795)-2.5 %
Total deposits5,803,404 5,971,371 (167,967)-2.8 %
Borrowings1,611,692 1,383,573 228,119 16.5 %
Advance payments by borrowers for taxes18,706 17,307 1,399 8.1 %
Other liabilities49,304 44,427 4,877 11.0 %
Total liabilities7,483,106 7,416,678 66,428 0.9 %
Stockholders' Equity
Common stock667 674 (7)-1.0 %
Paid-in capital509,359 515,332 (5,973)-1.2 %
Retained earnings452,605 449,489 3,116 0.7 %
Unearned ESOP shares(23,348)(23,834)486 2.0 %
Accumulated other comprehensive loss(73,053)(69,021)(4,032)-5.8 %
Total stockholders' equity866,230 872,640 (6,410)-0.7 %
Total liabilities and stockholders' equity$8,349,336 $8,289,318 $60,018 0.7 %
Consolidated capital ratios
Equity to assets10.37 %10.53 %-0.16 %
Tangible equity to tangible assets (1)
8.02 %8.16 %-0.14 %
Share data
Outstanding shares66,68067,388(708)-1.1 %
Book value per share$12.99 $12.95 $0.04 0.3 %
Tangible book value per share (2)
$9.79 $9.78 $0.01 0.1 %
_________________________
(1)Tangible equity equals total stockholders' equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.
(2)Tangible book value equals total stockholders' equity reduced by goodwill and core deposit intangible assets.
4

Kearny Financial Corp.
Consolidated Statements of Income
(Unaudited)
(Dollars and Shares in Thousands,
Except Per Share Data)		Three Months EndedVariance
or Change		Variance
or Change Pct.
March 31,
2023		December 31,
2022
Interest income
Loans$60,172 $57,996 $2,176 3.8 %
Taxable investment securities15,459 13,221 2,238 16.9 %
Tax-exempt investment securities99 219 (120)-54.8 %
Other interest-earning assets1,441 1,005 436 43.4 %
Total interest income77,171 72,441 4,730 6.5 %
Interest expense
Deposits22,246 18,822 3,424 18.2 %
Borrowings12,554 8,836 3,718 42.1 %
Total interest expense34,800 27,658 7,142 25.8 %
Net interest income42,371 44,783 (2,412)-5.4 %
Provision for credit losses 451 1,671 (1,220)-73.0 %
Net interest income after provision for credit losses41,920 43,112 (1,192)-2.8 %
Non-interest income
Fees and service charges910 734 176 24.0 %
Loss on sale and call of securities— (15,227)15,227 100.0 %
(Loss) gain on sale of loans(2,373)134 (2,507)-1870.9 %
Income from bank owned life insurance1,581 1,761 (180)-10.2 %
Electronic banking fees and charges457 397 60 15.1 %
Other income1,071 3,723 (2,652)-71.2 %
Total non-interest income1,646 (8,478)10,124 -119.4 %
Non-interest expense
Salaries and employee benefits18,005 19,921 (1,916)-9.6 %
Net occupancy expense of premises3,097 2,987 110 3.7 %
Equipment and systems3,537 3,867 (330)-8.5 %
Advertising and marketing413 731 (318)-43.5 %
Federal deposit insurance premium1,546 1,226 320 26.1 %
Directors' compensation340 339 1 0.3 %
Other expense3,414 3,579 (165)-4.6 %
Total non-interest expense30,352 32,650 (2,298)-7.0 %
Income before income taxes13,214 1,984 11,230 566.0 %
Income taxes2,902 33 2,869 8693.9 %
Net income$10,312 $1,951 $8,361 428.5 %
Net income per common share (EPS)
Basic$0.16 $0.03 $0.13 
Diluted$0.16 $0.03 $0.13 
Dividends declared
Cash dividends declared per common share$0.11 $0.11 $— 
Cash dividends declared$7,196 $7,172 $24 
Dividend payout ratio69.8 %367.6 %(297.8)%
Weighted average number of common shares outstanding
Basic64,76965,030(261)
Diluted64,78365,038(255)
5

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)
(Dollars in Thousands)Three Months EndedVariance
or Change		Variance
or Change Pct.
March 31,
2023		December 31,
2022
Assets
Interest-earning assets:
Loans receivable, including loans held for sale$5,986,669 $5,839,903 $146,766 2.5 %
Taxable investment securities1,558,222 1,527,578 30,644 2.0 %
Tax-exempt investment securities17,663 37,917 (20,254)-53.4 %
Other interest-earning assets131,682 114,175 17,507 15.3 %
Total interest-earning assets7,694,236 7,519,573 174,663 2.3 %
Non-interest-earning assets575,009 550,519 24,490 4.4 %
Total assets $8,269,245 $8,070,092 $199,153 2.5 %
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand$2,363,762 $2,359,977 $3,785 0.2 %
Savings858,673 931,584 (72,911)-7.8 %
Certificates of deposit2,069,396 2,192,722 (123,326)-5.6 %
Total interest-bearing deposits5,291,831 5,484,283 (192,452)-3.5 %
Borrowings:
Federal Home Loan Bank advances1,402,269 997,148 405,121 40.6 %
Other borrowings1,611 — 1,611 — %
Total borrowings1,403,880 997,148 406,732 40.8 %
Total interest-bearing liabilities6,695,711 6,481,431 214,280 3.3 %
Non-interest-bearing liabilities:
Non-interest-bearing deposits634,324 666,846 (32,522)-4.9 %
Other non-interest-bearing liabilities60,327 56,721 3,606 6.4 %
Total non-interest-bearing liabilities694,651 723,567 (28,916)-4.0 %
Total liabilities7,390,362 7,204,998 185,364 2.6 %
Stockholders' equity878,883 865,094 13,789 1.6 %
Total liabilities and stockholders' equity$8,269,245 $8,070,092 $199,153 2.5 %
Average interest-earning assets to average interest-bearing liabilities114.91 %116.02 %-1.11 %-1.0 %
6

Kearny Financial Corp.
Performance Ratio Highlights
(Unaudited)
Three Months EndedVariance
or Change
March 31,
2023		December 31,
2022
Average yield on interest-earning assets:
Loans receivable, including loans held for sale4.02 %3.97 %0.05 %
Taxable investment securities3.97 %3.46 %0.51 %
Tax-exempt investment securities (1)
2.23 %2.32 %-0.09 %
Other interest-earning assets4.38 %3.52 %0.86 %
Total interest-earning assets 4.01 %3.85 %0.16 %
Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand2.01 %1.63 %0.38 %
Savings 0.41 %0.41 %— %
Certificates of deposit1.84 %1.50 %0.34 %
Total interest-bearing deposits1.68 %1.37 %0.31 %
Borrowings:
Federal Home Loan Bank advances3.58 %3.54 %0.04 %
Other borrowings5.15 %— %5.15 %
Total borrowings3.58 %3.54 %0.04 %
Total interest-bearing liabilities2.08 %1.71 %0.37 %
Interest rate spread (2)
1.93 %2.14 %-0.21 %
Net interest margin (3)
2.20 %2.38 %-0.18 %
Non-interest income to average assets (annualized)0.08 %-0.42 %0.50 %
Non-interest expense to average assets (annualized)1.47 %1.62 %-0.15 %
Efficiency ratio (4)
68.96 %89.93 %-20.97 %
Return on average assets (annualized)0.50 %0.10 %0.40 %
Return on average equity (annualized)4.69 %0.90 %3.79 %
Return on average tangible equity (annualized) (5)
6.20 %1.20 %5.00 %
_________________________
(1)The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.
(2)Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.
(3)Net interest income divided by average interest-earning assets.
(4)Non-interest expense divided by the sum of net interest income and non-interest income.
(5)Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets.
7

Five-Quarter Financial Trend Analysis
Kearny Financial Corp.
Consolidated Balance Sheets
(Dollars and Shares in Thousands,
Except Per Share Data)		March 31,
2023		December 31,
2022		September 30,
2022		June 30,
2022		March 31,
2022
(Unaudited)(Unaudited)(Unaudited)(Audited)(Unaudited)
Assets
Cash and cash equivalents$194,568 $75,660 $96,076 $101,615 $62,379 
Securities available for sale1,267,066 1,286,354 1,263,176 1,344,093 1,526,086 
Securities held to maturity149,764 153,786 115,943 118,291 121,853 
Loans held-for-sale5,401 12,940 12,936 28,874 2,822 
Loans receivable5,966,325 5,984,133 5,656,370 5,417,845 5,003,201 
Less: allowance for credit losses on loans(49,122)(48,877)(47,613)(47,058)(43,860)
Net loans receivable5,917,203 5,935,256 5,608,757 5,370,787 4,959,341 
Premises and equipment49,589 50,953 52,642 53,281 53,727 
Federal Home Loan Bank stock76,319 69,022 44,957 47,144 30,997 
Accrued interest receivable28,794 27,368 23,817 20,466 19,517 
Goodwill210,895 210,895 210,895 210,895 210,895 
Core deposit intangible2,590 2,732 2,876 3,020 3,166 
Bank owned life insurance291,220 289,673 289,690 289,177 287,644 
Deferred income taxes, net53,151 51,107 54,278 49,350 34,349 
Other real estate owned13,410 13,410 178 178 401 
Other assets89,366 110,162 113,369 82,712 76,714 
Total assets $8,349,336 $8,289,318 $7,889,590 $7,719,883 $7,389,891 
Liabilities
Deposits:
Non-interest-bearing $617,778 $650,950 $683,406 $653,899 $621,954 
Interest-bearing5,185,626 5,320,421 5,424,872 5,208,357 4,906,708 
Total deposits5,803,404 5,971,371 6,108,278 5,862,256 5,528,662 
Borrowings1,611,692 1,383,573 851,454 901,337 851,220 
Advance payments by borrowers for taxes18,706 17,307 16,555 16,746 16,979 
Other liabilities49,304 44,427 38,329 45,544 37,861 
Total liabilities7,483,106 7,416,678 7,014,616 6,825,883 6,434,722 
Stockholders' Equity
Common stock667 674 680 687 714 
Paid-in capital509,359 515,332 520,245 528,396 561,176 
Retained earnings452,605 449,489 454,710 445,451 441,522 
Unearned ESOP shares(23,348)(23,834)(24,321)(24,807)(25,294)
Accumulated other comprehensive loss(73,053)(69,021)(76,340)(55,727)(22,949)
Total stockholders' equity866,230 872,640 874,974 894,000 955,169 
Total liabilities and stockholders' equity$8,349,336 $8,289,318 $7,889,590 $7,719,883 $7,389,891 
Consolidated capital ratios
Equity to assets10.37 %10.53 %11.09 %11.58 %12.93 %
Tangible equity to tangible assets (1)
8.02 %8.16 %8.61 %9.06 %10.33 %
Share data
Outstanding shares 66,68067,38867,93868,66671,424
Book value per share$12.99 $12.95 $12.88 $13.02 $13.37 
Tangible book value per share (2)
$9.79 $9.78 $9.73 $9.90 $10.38 
_________________________
(1)Tangible equity equals total stockholders' equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.
(2)Tangible book value equals total stockholders' equity reduced by goodwill and core deposit intangible assets.
8

Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)
(Dollars in Thousands)March 31,
2023		December 31,
2022		September 30,
2022		June 30,
2022		March 31,
2022
Loan portfolio composition:
Commercial loans:
Multi-family mortgage$2,835,852 $2,851,721 $2,570,297 $2,409,090 $2,076,003 
Nonresidential mortgage1,002,643 1,017,341 1,040,688 1,019,838 1,085,988 
Commercial business162,038 177,530 186,361 176,807 169,551 
Construction215,524 186,663 166,052 140,131 121,137 
Total commercial loans4,216,057 4,233,255 3,963,398 3,745,866 3,452,679 
One- to four-family residential mortgage1,713,343 1,719,514 1,666,730 1,645,816 1,527,980 
Consumer loans:
Home equity loans44,376 45,690 43,269 42,028 41,501 
Other consumer2,592 2,648 2,869 2,866 2,755 
Total consumer loans46,968 48,338 46,138 44,894 44,256 
Total loans, excluding yield adjustments5,976,368 6,001,107 5,676,266 5,436,576 5,024,915 
Unaccreted yield adjustments(10,043)(16,974)(19,896)(18,731)(21,714)
Loans receivable, net of yield adjustments5,966,325 5,984,133 5,656,370 5,417,845 5,003,201 
Less: allowance for credit losses on loans(49,122)(48,877)(47,613)(47,058)(43,860)
Net loans receivable$5,917,203 $5,935,256 $5,608,757 $5,370,787 $4,959,341 
Asset quality:
Nonperforming assets:
Accruing loans - 90 days and over past due$— $— $— $— $— 
Nonaccrual loans44,026 40,549 68,574 70,321 80,595 
Total nonperforming loans44,026 40,549 68,574 70,321 80,595 
Nonaccrual loans held-for-sale— 8,650 8,650 21,745 — 
Other real estate owned13,410 13,410 178 178 401 
Total nonperforming assets$57,436 $62,609 $77,402 $92,244 $80,996 
Nonperforming loans (% total loans)0.74 %0.68 %1.21 %1.30 %1.61 %
Nonperforming assets (% total assets)0.69 %0.76 %0.98 %1.19 %1.10 %
Classified loans$103,461 $86,069 $92,610 $94,555 $163,621 
Allowance for credit losses on loans (ACL):
ACL to total loans0.82 %0.81 %0.84 %0.87 %0.87 %
ACL to nonperforming loans111.57 %120.54 %69.43 %66.92 %54.42 %
Net charge-offs $206 $407 $115 $1,024 $436 
Average net charge-off rate (annualized)0.01 %0.03 %0.01 %0.08 %0.04 %

9

Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)
(Dollars in Thousands)March 31,
2023		December 31,
2022		September 30,
2022		June 30,
2022		March 31,
2022
Funding composition:
Deposits:
Non-interest-bearing deposits$617,778 $650,950 $683,406 $653,899 $621,954 
Interest-bearing demand2,285,799 2,316,485 2,382,411 2,265,597 2,154,488 
Savings 811,483 901,514 982,916 1,053,198 1,088,974 
Certificates of deposit (retail)1,327,343 1,354,907 1,263,124 1,116,035 1,122,228 
Certificates of deposit (brokered and listing service)761,001 747,515 796,421 773,527 541,018 
Interest-bearing deposits5,185,626 5,320,421 5,424,872 5,208,357 4,906,708 
Total deposits5,803,404 5,971,371 6,108,278 5,862,256 5,528,662 
Borrowings:
Federal Home Loan Bank advances1,156,692 1,256,573 796,454 651,337 541,220 
Overnight borrowings455,000 127,000 55,000 250,000 310,000 
Total borrowings1,611,692 1,383,573 851,454 901,337 851,220 
Total funding$7,415,096 $7,354,944 $6,959,732 $6,763,593 $6,379,882 
Loans as a % of deposits102.1 %99.6 %92.0 %92.1 %89.8 %
Deposits as a % of total funding78.3 %81.2 %87.8 %86.7 %86.7 %
Borrowings as a % of total funding21.7 %18.8 %12.2 %13.3 %13.3 %
Uninsured deposits:
Uninsured deposits (reported) (1)
$1,678,051 $1,815,854 $1,771,851 $1,525,940 $1,427,658 
Uninsured deposits (adjusted) (2)
$705,727 $794,407 $883,351 $792,067 $749,141 
_________________________
(1)Uninsured deposits of Kearny Bank.
(2)Uninsured deposits of Kearny Bank adjusted to exclude deposits of its wholly-owned subsidiary and holding company and collateralized deposits of state and local governments.
10

Kearny Financial Corp.
Consolidated Statements of Income
(Unaudited)
Three Months Ended
(Dollars and Shares in Thousands,
Except Per Share Data)		March 31,
2023		December 31,
2022		September 30,
2022		June 30,
2022		March 31,
2022
Interest income
Loans$60,172 $57,996 $52,935 $48,869 $45,846 
Taxable investment securities15,459 13,221 10,439 8,915 8,024 
Tax-exempt investment securities99 219 285 297 316 
Other interest-earning assets1,441 1,005 761 472 415 
Total interest income77,171 72,441 64,420 58,553 54,601 
Interest expense
Deposits22,246 18,822 10,869 3,915 3,565 
Borrowings12,554 8,836 5,020 4,039 3,309 
Total interest expense34,800 27,658 15,889 7,954 6,874 
Net interest income42,371 44,783 48,531 50,599 47,727 
Provision for (reversal of) credit losses451 1,671 670 4,222 (3,920)
Net interest income after provision for (reversal of) credit losses41,920 43,112 47,861 46,377 51,647 
Non-interest income
Fees and service charges910 734 763 658 617 
(Loss) gain on sale and call of securities— (15,227)— (563)3 
(Loss) gain on sale of loans(2,373)134 395 187 376 
(Loss) gain on sale of other real estate owned— — — (9)14 
Income from bank owned life insurance1,581 1,761 3,698 1,533 1,511 
Electronic banking fees and charges457 397 506 366 432 
Other income1,071 3,723 555 638 238 
Total non-interest income1,646 (8,478)5,917 2,810 3,191 
Non-interest expense
Salaries and employee benefits18,005 19,921 20,348 20,367 19,184 
Net occupancy expense of premises3,097 2,987 3,090 3,188 3,223 
Equipment and systems3,537 3,867 3,662 4,516 3,822 
Advertising and marketing413 731 747 703 516 
Federal deposit insurance premium1,546 1,226 906 762 480 
Directors' compensation340 339 340 340 340 
Other expense3,414 3,579 2,895 3,736 3,058 
Total non-interest expense30,352 32,650 31,988 33,612 30,623 
Income before income taxes13,214 1,984 21,790 15,575 24,215 
Income taxes2,902 33 5,255 4,205 6,522 
Net income$10,312 $1,951 $16,535 $11,370 $17,693 
Net income per common share (EPS)
Basic$0.16 $0.03 $0.25 $0.17 $0.25 
Diluted$0.16 $0.03 $0.25 $0.17 $0.25 
Dividends declared
Cash dividends declared per common share$0.11 $0.11 $0.11 $0.11 $0.11 
Cash dividends declared$7,196 $7,172 $7,276 $7,441 $7,720 
Dividend payout ratio69.8 %367.6 %44.0 %65.4 %43.6 %
Weighted average number of common shares outstanding
Basic64,76965,03065,73767,24069,790
Diluted64,78365,03865,75667,27669,817
11

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)
Three Months Ended
(Dollars in Thousands)March 31,
2023		December 31,
2022		September 30,
2022		June 30,
2022		March 31,
2022
Assets
Interest-earning assets:
Loans receivable, including loans held-for-sale$5,986,669 $5,839,903 $5,553,996 $5,181,983 $4,850,236 
Taxable investment securities1,558,222 1,527,578 1,516,974 1,608,372 1,620,996 
Tax-exempt investment securities17,663 37,917 48,973 51,672 55,390 
Other interest-earning assets131,682 114,175 88,038 87,990 79,644 
Total interest-earning assets7,694,236 7,519,573 7,207,981 6,930,017 6,606,266 
Non-interest-earning assets575,009 550,519 570,225 564,734 601,684 
Total assets $8,269,245 $8,070,092 $7,778,206 $7,494,751 $7,207,950 
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand$2,363,762 $2,359,977 $2,354,340 $2,155,946 $2,133,977 
Savings 858,673 931,584 1,019,343 1,077,631 1,088,351 
Certificates of deposit2,069,396 2,192,722 2,014,922 1,701,725 1,650,048 
Total interest-bearing deposits5,291,831 5,484,283 5,388,605 4,935,302 4,872,376 
Borrowings:
Federal Home Loan Bank advances1,402,269 997,148 642,399 752,579 632,811 
Other borrowings1,611 — 127,456 185,901 51,667 
Total borrowings1,403,880 997,148 769,855 938,480 684,478 
Total interest-bearing liabilities6,695,711 6,481,431 6,158,460 5,873,782 5,556,854 
Non-interest-bearing liabilities:
Non-interest-bearing deposits634,324 666,846 667,624 640,200 624,152 
Other non-interest-bearing liabilities60,327 56,721 56,431 56,636 49,455 
Total non-interest-bearing liabilities694,651 723,567 724,055 696,836 673,607 
Total liabilities7,390,362 7,204,998 6,882,515 6,570,618 6,230,461 
Stockholders' equity878,883 865,094 895,691 924,133 977,489 
Total liabilities and stockholders' equity$8,269,245 $8,070,092 $7,778,206 $7,494,751 $7,207,950 
Average interest-earning assets to average
 interest-bearing liabilities
114.91 %116.02 %117.04 %117.98 %118.89 %
12

Kearny Financial Corp.
Performance Ratio Highlights
Three Months Ended
March 31,
2023		December 31,
2022		September 30,
2022		June 30,
2022		March 31,
2022
Average yield on interest-earning assets:
Loans receivable, including loans held-for-sale4.02 %3.97 %3.81 %3.77 %3.78 %
Taxable investment securities3.97 %3.46 %2.75 %2.22 %1.98 %
Tax-exempt investment securities (1)
2.23 %2.32 %2.33 %2.30 %2.28 %
Other interest-earning assets4.38 %3.52 %3.46 %2.15 %2.08 %
Total interest-earning assets4.01 %3.85 %3.57 %3.38 %3.31 %
Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand2.01 %1.63 %0.92 %0.31 %0.22 %
Savings 0.41 %0.41 %0.23 %0.11 %0.10 %
Certificates of deposit1.84 %1.50 %0.97 %0.46 %0.52 %
Total interest-bearing deposits1.68 %1.37 %0.81 %0.32 %0.29 %
Borrowings:
Federal Home Loan Bank advances3.58 %3.54 %2.68 %1.96 %2.08 %
Other borrowings5.15 %— %2.26 %0.77 %0.17 %
Total borrowings3.58 %3.54 %2.61 %1.72 %1.93 %
Total interest-bearing liabilities2.08 %1.71 %1.03 %0.54 %0.49 %
Interest rate spread (2)
1.93 %2.14 %2.54 %2.84 %2.82 %
Net interest margin (3)
2.20 %2.38 %2.69 %2.92 %2.89 %
Non-interest income to average assets (annualized)0.08 %-0.42 %0.30 %0.15 %0.18 %
Non-interest expense to average assets (annualized)1.47 %1.62 %1.65 %1.79 %1.70 %
Efficiency ratio (4)
68.96 %89.93 %58.75 %62.93 %60.14 %
Return on average assets (annualized)0.50 %0.10 %0.85 %0.61 %0.98 %
Return on average equity (annualized)4.69 %0.90 %7.38 %4.92 %7.24 %
Return on average tangible equity (annualized) (5)
6.20 %1.20 %9.70 %6.40 %9.27 %
_________________________
(1)The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.
(2)Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.
(3)Net interest income divided by average interest-earning assets.
(4)Non-interest expense divided by the sum of net interest income and non-interest income.
(5)Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets.
13

The following tables provide a reconciliation of certain financial measures calculated in accordance with Generally Accepted Accounting Principles (“GAAP”) (as reported) and non-GAAP measures. These non-GAAP measures provide additional information which allow readers to evaluate the ongoing performance of the Company. They are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. In all cases, it should be understood that non-GAAP per share measures do not depict amounts that accrue directly to the benefit of shareholders.
Kearny Financial Corp.
Reconciliation of GAAP to Non-GAAP
(Unaudited)
Three Months Ended
(Dollars and Shares in Thousands,
Except Per Share Data)		March 31,
2023		December 31,
2022		September 30,
2022		June 30,
2022		March 31,
2022
Adjusted net income:
Net income (GAAP)$10,312 $1,951 $16,535 $11,370 $17,693 
Non-recurring transactions - net of tax:
Branch consolidation expenses568 — — — — 
Net effect of sale and call of securities— 10,811 — 400 (2)
Net effect of sale of other assets— (2,081)— — — 
Severance expense from workforce realignment— 538 — — — 
Early contract termination— — — 568 — 
Adjusted net income$10,880 $11,219 $16,535 $12,338 $17,691 
Calculation of pre-tax, pre-provision net revenue:
Net income (GAAP)$10,312 $1,951 $16,535 $11,370 $17,693 
Adjustments to net income (GAAP):
Provision for income taxes2,902 33 5,255 4,205 6,522 
Provision for (reversal of) credit losses451 1,671 670 4,222 (3,920)
Pre-tax, pre-provision net revenue (non-GAAP)$13,665 $3,655 $22,460 $19,797 $20,295 
Adjusted earnings per share:
Weighted average common shares - basic64,76965,03065,73767,24069,790
Weighted average common shares - diluted64,78365,03865,75667,27669,817
Earnings per share - basic (GAAP)$0.16 $0.03 $0.25 $0.17 $0.25 
Earnings per share - diluted (GAAP)$0.16 $0.03 $0.25 $0.17 $0.25 
Adjusted earnings per share - basic (non-GAAP)$0.17 $0.17 $0.25 $0.18 $0.25 
Adjusted earnings per share - diluted (non-GAAP)$0.17 $0.17 $0.25 $0.18 $0.25 
Pre-tax, pre-provision net revenue per share:
Pre-tax, pre-provision net revenue per share - basic
  (non-GAAP)
$0.21 $0.06 $0.34 $0.29 $0.29 
Pre-tax, pre-provision net revenue per share - diluted
  (non-GAAP)
$0.21 $0.06 $0.34 $0.29 $0.29 
Adjusted return on average assets:
Total average assets$8,269,245 $8,070,092 $7,778,206 $7,494,751 $7,207,950 
Return on average assets (GAAP)0.50 %0.10 %0.85 %0.61 %0.98 %
Adjusted return on average assets (non-GAAP)0.53 %0.56 %0.85 %0.66 %0.98 %
Adjusted return on average equity:
Total average equity$878,883 $865,094 $895,691 $924,133 $977,489 
Return on average equity (GAAP)4.69 %0.90 %7.38 %4.92 %7.24 %
Adjusted return on average equity (non-GAAP)4.95 %5.19 %7.38 %5.34 %7.24 %
14

Kearny Financial Corp.
Reconciliation of GAAP to Non-GAAP
(Unaudited)
Three Months Ended
(Dollars and Shares in Thousands,
Except Per Share Data)		March 31,
2023		December 31,
2022		September 30,
2022		June 30,
2022		March 31,
2022
Adjusted return on average tangible equity:
Total average equity$878,883 $865,094 $895,691 $924,133 $977,489 
Less: average goodwill(210,895)(210,895)(210,895)(210,895)(210,895)
Less: average other intangible assets(2,683)(2,826)(2,971)(3,116)(3,282)
Total average tangible equity$665,305 $651,373 $681,825 $710,122 $763,312 
Return on average tangible equity (non-GAAP)6.20 %1.20 %9.70 %6.40 %9.27 %
Adjusted return on average tangible equity (non-GAAP)6.54 %6.89 %9.70 %6.95 %9.27 %
Adjusted non-interest expense ratio:
Non-interest expense (GAAP)$30,352 $32,650 $31,988 $33,612 $30,623 
Non-recurring transactions:
Branch consolidation expenses(800)— — — — 
Severance expense from workforce realignment— (757)— — — 
Early contract termination— — — (800)— 
Non-interest expense (non-GAAP)$29,552 $31,893 $31,988 $32,812 $30,623 
Non-interest expense ratio (GAAP)1.47 %1.62 %1.65 %1.79 %1.70 %
Adjusted non-interest expense ratio (non-GAAP)1.43 %1.58 %1.65 %1.75 %1.70 %
Adjusted efficiency ratio:
Non-interest expense (non-GAAP)$29,552 $31,893 $31,988 $32,812 $30,623 
Net interest income (GAAP)$42,371 $44,783 $48,531 $50,599 $47,727 
Total non-interest income (GAAP)1,646 (8,478)5,917 2,810 3,191 
Non-recurring transactions:
Net effect of sale and call of securities— 15,227 — 563 (3)
Net effect of sale of other assets— (2,931)— — — 
Total revenue (non-GAAP)$44,017 $48,601 $54,448 $53,972 $50,915 
Efficiency ratio (GAAP)68.96 %89.93 %58.75 %62.93 %60.14 %
Adjusted efficiency ratio (non-GAAP)67.14 %65.62 %58.75 %60.79 %60.15 %

15
APRIL 27, 2023 I N V E S T O R P R E S E N T A T I O N T H I R D Q U A R T E R F I S C A L 2 0 2 3 Exhibit 99.2

 
Forward Looking Statements 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, 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 the recent turmoil in the banking industry (including the failure of two financial institutions), • 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 regarding financial institutions (including laws concerning taxation, banking, securities and insurance), • 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.

 
Kearny Financial Corp. NASDAQ: KRNY Market Cap: $512.1 million1 Founded in 1884 Top 10 New Jersey-based financial institution by assets 45 full-service branches2 in 12 counties throughout New Jersey and New York City Active acquirer, having completed 7 whole-bank acquisitions since 1999 1 As of April 24, 2023 2 As of March 31, 2023 Source: S&P Global Market Intelligence & Company Filings 3

 
139 Years of Serving our Communities and Clients 4

 
Financial Highlights Source: Company Filings 5 3Q23 quarterly earnings were negatively impacted by the following non-recurring items: $2.5 million loss on sale of a non-performing multi-family loan that had been held-for-sale since June 2022 $800,000 of non-interest expense associated with the consolidation of two branches scheduled for closure in June 2023 Excluding non-recurring items, non-interest expense declined 7.3% quarter-over-quarter Profitability and Performance Ratios ($ in millions, except per share data) 3Q23 2Q23 3Q22 Net Income $10.3 $2.0 $17.7 Earnings per share $0.16 $0.03 $0.25 Net Interest Income $42.4 $44.8 $47.7 Net Interest Margin 2.20% 2.38% 2.89% Return on Average Assets 0.50% 0.10% 0.98% Return on Average Equity 4.69% 0.90% 7.24% Return on Average Tangible Equity 6.20% 1.20% 9.27% GAAP Reported

 
Equity & Capitalization Equity Capitalization Level 1 Kearny Regulatory Capital Ratios as of March 31, 2023 are preliminary. 2 S&P U.S. Small Cap Banks Index comprised of 235 constituents, based on December 31, 2022 results. Source: Company Filings 6 10.33% 9.06% 8.61% 8.16% 8.02% 12.93% 11.58% 11.09% 10.53% 10.37% 3Q22 4Q22 1Q23 2Q23 3Q23 Tangible Common Equity / Tangible Assets Equity / Assets 8.96% 13.37% 13.37% 14.02% 9.57% 11.20% 11.47% 14.00% Tier 1 Leverage Common Equity Tier 1 Tier 1 Risk-Based Capital Total Risk-Based Capital KRNY S&P US Small Cap Banks Regulatory Capital Ratios1,2

 
Deposits 1 For the quarter ended March 31, 2023; excludes Wholesale CDs Source: S&P Global Market Intelligence & Company Filings 7 Deposit Composition1 Deposit Trend Retail Deposit Segmentation1 $1,122 $1,116 $1,263 $1,355 $1,327 $541 $773 $797 $747 $761 $1,089 $1,053 $983 $902 $811 $2,155 $2,266 $2,382 $2,316 $2,286 $622 $654 $683 $651 $618 $5,529 $5,862 $6,108 $5,971 $5,803 3Q22 4Q22 1Q23 2Q23 3Q23 Retail CDs Wholesale CDs Savings Interest Bearing DDA Non-interest Bearing DDA Consumer 61.7% Commercial 22.0% Government 16.3% Product # of Accounts Balance ($ millions) Average Balance per Account Checking 53,272 $ 2,903 $ 54,501 Savings 35,073 812 23,137 CD 28,423 1,335 46,984 Total Retail Deposits 116,768 $ 5,050 $ 43,251 Non-Maturity Account Deposit Mix QTD Cost of Deposits 1.68% Retail CDs 22.9% Wholesale CDs 13.1% Savings 14.0% Interest Bearing DDA 39.4% Non-interest Bearing DDA 10.6%

 
Liquidity Available for Uninsured Deposits Estimated Uninsured Deposits Analysis2 1 Estimated amount of uninsured deposits reported in 3/31/23 Call Report. 2 As of March 31, 2023 8 Estimated Uninsured Deposit Analysis ($ millions) Estimated Uninsured Deposits 1,678$ Less: Collateralized State & Local Government Deposits (588) Less: Bank's wholly-owned subsidiary & Holding Company Deposits (384) Estimated uninsured deposits excluding items above: 706$ Total Deposits 5,803$ Estimated uninsured deposits, excluding items above, as a % of Total Deposits 12.2% Available liquidity is 3.4x greater than estimated uninsured deposits (excluding items above) Liquidity Capacity2 Sources of Liquidity ($ millions) Liquidity Capacity Funding Utilized Available Capacity Internal Sources: Free Securities and other 493$ -$ 493$ External Sources: FRB 426 - 426 FHLB 2,993 1,543 1,450 Total Liquidity 3,912$ 1,543$ 2,369$ 1

 
Investment Securities 1 For the quarter ended March 31, 2023 2 Comprised entirely of securitized federal education loans with 97% U.S. government guarantees 3 Assumes 29% marginal tax rate Source: S&P Global Market Intelligence & Company Filings 9 10.0% 27.0% 10.1% 51.7% 1.2% Corporate Bonds CLO ABS Student Loans Agency MBS Municipal Bonds 2 Securities Composition1 Securities Balance & Yield TrendAFS/HTM & Effective Duration At March 31, 2023, the tax-adjusted unrecognized loss on held-to maturity securities was $9.7 million, or 1.5% of tangible equity3 AFS 89.4% HTM 10.6% Total Effective Duration ≈ 3.4 years Floating rate securities ≈ 34.5% $1,648 $1,462 $1,379 $1,440 $1,417 1.99% 2.22% 2.74% 3.43% 3.95% 3Q22 4Q22 1Q23 2Q23 3Q23 ($ millions)

 
Portfolio Lending Loan Composition1 Geographic Distribution2Loan Growth The weighted average loan-to-value ratio1 for our real estate secured loans was 62% 1 For the quarter ended March 31, 2023. 2 As of March 31, 2023. Source: S&P Global Market Intelligence & Company Filings 10 New York (Ex. Brooklyn) 17.2% Brooklyn 18.2% New Jersey 54.9% Pennsylvania 5.4% Other 4.3% $1,569 $1,688 $1,710 $1,765 $1,758 $2,076 $2,409 $2,570 $2,852 $2,836 $1,086 $1,020 $1,041 $1,017 $1,003 $5,025 $5,437 $5,676 $6,001 $5,976 3Q22 4Q22 1Q23 2Q23 3Q23 1-4 Family Multifamily CRE C&D Other ($ millions) 1-4 Family 28.7% Home Equity 0.7% Multifamily 47.5% CRE 16.8% Construction 3.6% Commercial 2.7% QTD Yield on Loans 4.02%

 
CRE Lending 1 As of March 31, 2023 Source: S&P Global Market Intelligence & Company Filings 11 CRE Portfolio by Collateral Type1 Retail 37.9% Mixed Use 26.8% Office 16.3% Industrial 14.5% Specialty & Other 4.5% CRE Loan Distribution1 Office Portfolio Profile 16.3% of total CRE portfolio or $163 million Average loan size of $1.7 million Weighted average LTV was 50% WA LTV 54% Total CRE $1.0 B New Jersey 56.0% Brooklyn 9.9% New York (Ex. Brooklyn) 27.6% Pennsylvania 4.1% Other 2.4%

 
Asset Quality Net Charge-Offs / Average Loans Non-Performing Assets / Total Assets Non-Performing Loans1 Allowance for Credit Losses 1 As of March 31, 2023; amounts shown in millions. Source: S&P Global Market Intelligence & Company Filings 1.10% 1.19% 0.98% 0.76% 0.69% 0.60% 0.80% 1.00% 1.20% 1.40% 3Q22 4Q22 1Q23 2Q23 3Q23 $43.9 $47.1 $47.6 $48.9 $49.1 0.87% 0.87% 0.84% 0.81% 0.82% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% $0.0 $20.0 $40.0 $60.0 $80.0 3Q22 4Q22 1Q23 2Q23 3Q23 ACL Balance ACL to Total Loans Receivable ($ millions) 12 NPL's $44.0MM $20.1 $17.6 $0.3 $6.0 Multi-family Non-Residential Commercial Construction Residential Home Equity Other Consumer 0.04% 0.08% 0.01% 0.03% 0.01% -0.05% 0.00% 0.05% 0.10% 3Q22 4Q22 1Q23 2Q23 3Q23

 
Select Technology Partners 13