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

Kearny Financial Corp. Announces Second Quarter Fiscal 2026 Results and Declaration of Cash Dividend FAIRFIELD, N.J., Jan. 22, 2026 (GLOBE NEWSWIRE) -- Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), reported net income for the quarter ended 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, Except Per Share Data)December 31, 2025 September 30, 2025 Variance or Change Variance or Change Pct.Assets Cash and cash equivalents$147,340 $130,139 $17,201 13.2%Securities available for 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, Except Per Share Data) Three Months Ended Variance or Change Variance or Change Pct. December 31, 2025 September 30, 2025Interest 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 or Change Variance or Change Pct. December 31, 2025 September 30, 2025Assets 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 or Change December 31, 2025 September 30, 2025Average yield on interest-earning assets: Loans receivable, including loans held for sale4.67% 4.71% -0.04%Taxable investment securities3.92% 4.08% -0.16%Tax-exempt investment securities(1)2.36% 2.42% -0.06%Other interest-earning assets5.13% 5.24% -0.11%Total interest-earning assets4.55% 4.61% -0.06% Average cost of interest-bearing liabilities: Deposits: Interest-bearing demand2.51% 2.63% -0.12%Savings1.40% 1.41% -0.01%Certificates of deposit (retail)3.45% 3.56% -0.11%Certificates of deposit (brokered)2.72% 2.67% 0.05%Total interest-bearing deposits2.60% 2.68% -0.08%Borrowings: Federal Home Loan Bank advances3.66% 3.69% -0.03%Other borrowings4.13% 4.44% -0.31%Total borrowings3.68% 3.74% -0.06%Total interest-bearing liabilities2.78% 2.88% -0.10% Interest rate spread(2)1.77% 1.73% 0.04%Net interest margin(3)2.14% 2.10% 0.04% Non-interest income to average assets (annualized)0.30% 0.31% -0.01%Non-interest expense to average assets (annualized)1.65% 1.66% -0.01% Efficiency ratio(4)71.64% 72.71% -1.07% Return on average assets (annualized)0.50% 0.50% —%Return on average equity (annualized)5.01% 5.10% -0.09%Return on average tangible equity (annualized)(5)5.96% 6.09% -0.13%_________________________(1) The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.(2) Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.(3) Net interest income divided by average interest-earning assets.(4) Non-interest expense divided by the sum of net interest income and non-interest income.(5) Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets. Five-Quarter Financial Trend Analysis Kearny Financial Corp. Consolidated Balance Sheets (Dollars and Shares in Thousands, Except Per Share Data)December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 (Unaudited) (Unaudited) (Audited) (Unaudited) (Unaudited)Assets Cash and cash equivalents$147,340 $130,139 $167,269 $126,095 $141,554 Securities available for 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, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024Loan 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, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024Funding 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, Except Per Share Data)December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024Interest 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, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024Assets 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 interest-bearing liabilities 115.53% 115.07% 114.98% 115.27% 115.41% Kearny Financial Corp. Performance Ratio Highlights Three Months Ended December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024Average yield on interest-earning assets: Loans receivable, including loans held-for-sale4.67% 4.71% 4.56% 4.46% 4.54%Taxable investment securities3.92% 4.08% 4.01% 4.07% 4.29%Tax-exempt investment securities(1)2.36% 2.42% 2.43% 2.43% 2.42%Other interest-earning assets5.13% 5.24% 5.27% 6.40% 7.62%Total interest-earning assets4.55% 4.61% 4.48% 4.42% 4.54% Average cost of interest-bearing liabilities: Deposits: Interest-bearing demand2.51% 2.63% 2.63% 2.73% 2.96%Savings1.40% 1.41% 1.33% 1.30% 1.29%Certificates of deposit (retail)3.45% 3.56% 3.56% 3.73% 4.06%Certificates of deposit (brokered)2.72% 2.67% 2.62% 2.58% 2.70%Total interest-bearing deposits2.60% 2.68% 2.66% 2.74% 2.95%Borrowings: Federal Home Loan Bank advances3.66% 3.69% 3.60% 3.63% 3.78%Other borrowings4.13% 4.44% 4.45% 4.41% 4.88%Total borrowings3.68% 3.74% 3.68% 3.70% 3.91%Total interest-bearing liabilities2.78% 2.88% 2.85% 2.91% 3.15% Interest rate spread(2)1.77% 1.73% 1.62% 1.51% 1.39%Net interest margin(3)2.14% 2.10% 2.00% 1.90% 1.82% Non-interest income to average assets (annualized)0.30% 0.31% 0.26% 0.24% 0.26%Non-interest expense to average assets (annualized)1.65% 1.66% 1.62% 1.59% 1.55% Efficiency ratio(4)71.64% 72.71% 75.66% 78.72% 78.86% Return on average assets (annualized)0.50% 0.50% 0.35% 0.35% 0.34%Return on average equity (annualized)5.01% 5.10% 3.64% 3.57% 3.51%Return on average tangible equity (annualized)(5)5.96% 6.09% 4.36% 4.28% 4.21%_________________________(1) The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.(2) Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.(3) Net interest income divided by average interest-earning assets.(4) Non-interest expense divided by the sum of net interest income and non-interest income.(5) Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets.  The following tables provide a reconciliation of certain financial measures calculated in accordance with Generally Accepted Accounting Principles (“GAAP”) (as reported) and non-GAAP measures. These non-GAAP measures provide additional information which allow readers to evaluate the ongoing performance of the Company. They are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. In all cases, it should be understood that non-GAAP per share measures do not depict amounts that accrue directly to the benefit of shareholders. Kearny Financial Corp. Reconciliation of GAAP to Non-GAAP (Unaudited) Three Months Ended(Dollars and Shares in Thousands, Except Per Share Data)December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024Adjusted 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 (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% Kearny Financial Corp. Reconciliation of GAAP to Non-GAAP (Unaudited) Three Months Ended(Dollars and Shares in Thousands, Except Per Share Data)December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024Adjusted 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%  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 Source: Kearny Bank