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

FAIRFIELD, N.J., April 23, 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 March 31, 2026 of $10.1 million, or $0.16 per diluted share, compared to $9.4 million, or $0.15 per diluted share, for the quarter ended December 31, 2025.

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on May 20, 2026, to stockholders of record as of May 6, 2026.

Craig L. Montanaro, President and Chief Executive Officer, commented, “We are pleased to report continued momentum in our core earnings this quarter, highlighted by our sixth consecutive quarter of net interest margin expansion. Quarter-over-quarter, net interest margin increased seven basis points as net interest income grew 3%. These results reflect the ongoing favorable repricing and remixing of our loan portfolio which, along with improving funding dynamics, positions us well for continued earnings momentum in the periods ahead.”

Mr. Montanaro continued, “During the quarter, we made strategic investments to strengthen our deposit franchise. We expanded our Corporate Banking team with the addition of four high-powered deposit-focused relationship officers who will accelerate our growth in relationship‑based middle-market commercial deposits. In parallel, we formed a new Specialty Deposits team specifically focused on select high-value deposit verticals in order to further diversify our funding sources.”

Mr. Montanaro concluded, “Our partnership with The Lab Consulting, a management consulting firm engaged to support process improvement and operational efficiency initiatives, is now well underway, and we are encouraged by the early momentum of this initiative. The opportunities identified to streamline processes, enhance automation, and improve the client experience support our commitment to operational excellence and scalable growth. Collectively, these actions position us well to continue delivering sustainable earnings improvement and long‑term shareholder value.”

Third Quarter Highlights

• Pre-tax, pre-provision net revenue increased 5.5% to $13.0 million, or $0.21 per diluted share, reflecting ongoing strengthening of core earnings.
• Net interest margin expanded by seven basis points to 2.21%, extending the momentum of margin improvement for the sixth consecutive quarter.
• Continued advancing the loan portfolio diversification strategy by growing commercial business, construction, and home equity loans by 18.5%, 14.3% and 4.0%, respectively, while strategically reducing multifamily mortgage exposure.
• Tangible book value per share improved $0.09, or 0.9%, to $10.02.
  
  

Balance Sheet

• Total assets were $7.61 billion at March 31, 2026, a decrease of $13.2 million, or 0.2%, from December 31, 2025.
• Investment securities totaled $1.09 billion at March 31, 2026, a decrease of $19.3 million, or 1.7%, from December 31, 2025.
• Loans receivable totaled $5.78 billion at March 31, 2026, an increase of $25.8 million, or 0.4%, from December 31, 2025, primarily reflecting increases in commercial and industrial (“C&I”) and construction loans, partially offset by a decrease in multifamily mortgage loans, which reflects our ongoing strategic remix of the portfolio.
• Deposits were $5.73 billion at March 31, 2026, an increase of $17.5 million, or 0.3%, from December 31, 2025.
• Borrowings were $1.06 billion at March 31, 2026, a decrease of $35.0 million, or 3.2%, from December 31, 2025, reflecting reductions in overnight borrowings, partially offset by an increase in Federal Home Loan Bank (“FHLB”) advances.
• At March 31, 2026, the Company maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.45 billion, representing 32.2% of total assets.
  
  

Earnings

Net Interest Income and Net Interest Margin

• Net interest margin expanded by seven basis points to 2.21% for the quarter ended March 31, 2026. The increase for the quarter was primarily driven by lower costs and average balances on interest-bearing liabilities, partially offset by lower average yields on interest-earning assets.
• For the quarter ended March 31, 2026, net interest income increased $1.3 million to $39.2 million from $38.0 million for the quarter ended December 31, 2025. Included in net interest income for the quarters ended March 31, 2026 and December 31, 2025, respectively, was purchase accounting accretion of $552,000 and $494,000, and loan prepayment penalty income of $422,000 and $544,000.
  
  

Non-Interest Income

• For the quarter ended March 31, 2026, non-interest income increased $523,000, or 9.4%, to $6.1 million from $5.6 million for the quarter ended December 31, 2025, primarily driven by a non-recurring pre-tax gain of $1.0 million on the sale of properties held for sale in the current period.
• Fees and service charges decreased $373,000, or 28.8%, to $922,000 for the quarter ended March 31, 2026 from $1.3 million for the quarter ended December 31, 2025. The decrease was primarily driven by the absence of $245,000 in loan related fee income associated with the payoff of a single construction loan recorded in the prior period.
• Electronic banking fees and charges decreased $84,000, or 17.8%, to $389,000 for the quarter ended March 31, 2026 from $473,000 for the quarter ended December 31, 2025, primarily driven by lower income from interchange fees.
  
  

Non-Interest Expense

• For the quarter ended March 31, 2026, non-interest expense increased $1.1 million, or 3.6%, to $32.3 million from $31.2 million for the quarter ended December 31, 2025, primarily driven by increases in salary and benefits, net occupancy, and advertising, partially offset by decreases in other expense.
• Salary and benefits expense increased $943,000 to $19.3 million for the quarter ended March 31, 2026 from $18.4 million for the quarter ended December 31, 2025, primarily driven by an increase in payroll taxes and employee benefits associated with the start of a new calendar year and a non-recurring severance charge of $205,000 recorded in the current period.
• Net occupancy expense of premises increased $375,000 to $3.3 million for the quarter ended March 31, 2026 from $2.9 million for the quarter ended December 31, 2025, driven by seasonally higher snow removal expenses of $527,000 recorded in the current period.
• Advertising and marketing expense increased $253,000 to $665,000 for the quarter ended March 31, 2026 from $412,000 for the quarter ended December 31, 2025, primarily driven by higher advertising expenses across various formats.
• Other expense decreased $377,000 to $3.5 million for the quarter March 31, 2026 from $3.8 million for the quarter ended December 31, 2025, primarily driven by the absence of non-recurring professional fees incurred in the prior period associated with the Company’s partnership with The Lab Consulting and a decline in fraud losses in the current period. Changes in the other components of non-interest expense between comparative periods reflected normal operating fluctuations within those line items.
  
  

Income Taxes

• Income tax expense totaled $2.5 million for the quarter ended March 31, 2026 compared to $2.3 million for the quarter ended December 31, 2025, resulting in an effective tax rate of 19.8% in each respective period.
  
  

Asset Quality

• The balance of non-performing assets increased $1.1 million to $52.4 million, or 0.69% of total assets, at March 31, 2026 from $51.3 million, or 0.67% of total assets, at December 31, 2025.
• Net charge-offs totaled $626,000, or 0.04% of average loans, on an annualized basis, for the quarter ended March 31, 2026, compared to $669,000, or 0.05% of average loans, on an annualized basis, for the quarter ended December 31, 2025.
• For the quarter ended March 31, 2026, the Company recorded a provision for credit losses of $391,000, compared to $567,000 for the quarter ended December 31, 2025. The provision for credit loss expense for the quarter ended March 31, 2026 was primarily due to loan growth and charge-offs associated with certain individually evaluated loans, partially offset by quantitative risk factor adjustments.
• Allowance for credit losses (“ACL”) was $44.7 million, or 0.77% of total loans, at March 31, 2026, a decrease of $235,000 from $45.0 million, or 0.78% of total loans, at December 31, 2025. The decrease in the ACL from December 31, 2025 was primarily driven by loan charge-offs, partially offset by a provision for credit losses, as noted above.
  
  

Capital

• For the quarter ended March 31, 2026, book value per share increased $0.09, or 0.8%, to $11.79 while tangible book value per share increased $0.09, or 0.9%, to $10.02.
• At March 31, 2026, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $68.7 million, partially offset by after-tax unrealized gains on derivatives of $2.7 million. After-tax net unrecognized losses on securities held to maturity of $8.2 million were not reflected in total stockholders’ equity.
• At March 31, 2026, the Company’s tangible equity to tangible assets ratio equaled 8.65%. Additionally, the regulatory capital ratios of both the Company and the Bank continued to be in excess of all applicable regulatory requirements as of March 31, 2026.
  
  

This earnings release should be read in conjunction with Kearny Financial Corp.’s Q3 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) March 31,
2026December 31,
2025Variance
or ChangeVariance
or Change Pct.Assets     Cash and cash equivalents $123,836 $147,340 $(23,504)-16.0%Securities available for sale  983,325  1,000,397  (17,072)-1.7%Securities held to maturity  110,581  112,800  (2,219)-2.0%Loans held-for-sale  12,183  8,786  3,397 38.7%Loans receivable  5,779,181  5,753,393  25,788 0.4%Less: allowance for credit losses on loans  (44,723) (44,958) (235)-0.5%Net loans receivable  5,734,458  5,708,435  26,023 0.5%Premises and equipment  41,896  42,559  (663)-1.6%Federal Home Loan Bank stock  55,737  57,212  (1,475)-2.6%Accrued interest receivable  28,304  27,420  884 3.2%Goodwill  113,525  113,525  — —%Core deposit intangible  1,080  1,198  (118)-9.8%Bank owned life insurance  312,050  309,404  2,646 0.9%Deferred income taxes, net  50,961  51,617  (656)-1.3%Other assets  39,720  40,185  (465)-1.2%Total assets $7,607,656 $7,620,878 $(13,222)-0.2%      Liabilities     Deposits:     Non-interest-bearing $631,506 $627,180 $4,326 0.7%Interest-bearing  5,097,576  5,084,370  13,206 0.3%Total deposits  5,729,082  5,711,550  17,532 0.3%Borrowings  1,060,000  1,095,000  (35,000)-3.2%Advance payments by borrowers for taxes  19,317  18,474  843 4.6%Other liabilities  36,225  38,458  (2,233)-5.8%Total liabilities  6,844,624  6,863,482  (18,858)-0.3%      Stockholders' Equity     Common stock  648  648  — —%Paid-in capital  495,442  494,959  483 0.1%Retained earnings  349,881  346,749  3,132 0.9%Unearned ESOP shares  (17,511) (17,997) 486 2.7%Accumulated other comprehensive loss  (65,428) (66,963) 1,535 2.3%Total stockholders' equity  763,032  757,396  5,636 0.7%Total liabilities and stockholders' equity $7,607,656 $7,620,878 $(13,222)-0.2%      Consolidated capital ratios     Equity to assets  10.03% 9.94% 0.09% Tangible equity to tangible assets (1)  8.65% 8.56% 0.09%       Share data     Outstanding shares  64,739  64,739  — —%Book value per share $11.79 $11.70 $0.09 0.8%Tangible book value per share (2) $10.02 $9.93 $0.09 0.9%

_________________________(1)Tangible equity equals total stockholders' equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.(2)Tangible book value equals total stockholders' equity reduced by goodwill and core deposit intangible assets.

Kearny Financial Corp.
Consolidated Statements of Income
(Unaudited)

(Dollars and Shares in Thousands,
Except Per Share Data)
 Three Months EndedVariance
or Change
Variance
or Change Pct.
March 31,
2026December 31,
2025Interest income     Loans $66,310 $67,410 $(1,100)-1.6%Taxable investment securities  11,425  11,623  (198)-1.7%Tax-exempt investment securities  34  35  (1)-2.9%Other interest-earning assets  1,400  1,584  (184)-11.6%Total interest income  79,169  80,652  (1,483)-1.8%      Interest expense     Deposits  31,045  33,148  (2,103)-6.3%Borrowings  8,888  9,535  (647)-6.8%Total interest expense  39,933  42,683  (2,750)-6.4%Net interest income  39,236  37,969  1,267 3.3%Provision for credit losses  391  567  (176)-31.0%Net interest income after provision for credit losses  38,845  37,402  1,443 3.9%      Non-interest income     Fees and service charges  922  1,295  (373)-28.8%Gain on sale of loans  193  224  (31)-13.8%Income from bank owned life insurance  2,646  2,710  (64)-2.4%Electronic banking fees and charges  389  473  (84)-17.8%Other income  1,944  869  1,075 123.7%Total non-interest income  6,094  5,571  523 9.4%      Non-interest expense     Salaries and employee benefits  19,316  18,373  943 5.1%Net occupancy expense of premises  3,263  2,888  375 13.0%Equipment and systems  3,975  4,007  (32)-0.8%Advertising and marketing  665  412  253 61.4%Federal deposit insurance premium  1,302  1,357  (55)-4.1%Directors' compensation  307  306  1 0.3%Other expense  3,471  3,848  (377)-9.8%Total non-interest expense  32,299  31,191  1,108 3.6%Income before income taxes  12,640  11,782  858 7.3%Income taxes  2,503  2,333  170 7.3%Net income $10,137 $9,449 $688 7.3%      Net income per common share (EPS)     Basic $0.16 $0.15 $0.01  Diluted $0.16 $0.15 $0.01        Dividends declared     Cash dividends declared per common share $0.11 $0.11 $—  Cash dividends declared $7,005 $6,987 $18  Dividend payout ratio  69.1% 73.9% -4.8%       Weighted average number of common shares outstanding     Basic  62,908  62,858  50  Diluted  63,251  63,061  190  

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)

(Dollars in Thousands)
 Three Months EndedVariance
or Change
Variance
or Change Pct.
March 31,
2026December 31,
2025Assets     Interest-earning assets:     Loans receivable, including loans held for sale $5,785,095 $5,778,680 $6,415 0.1%Taxable investment securities  1,194,487  1,185,602  8,885 0.7%Tax-exempt investment securities  5,669  5,902  (233)-3.9%Other interest-earning assets  106,967  123,475  (16,508)-13.4%Total interest-earning assets  7,092,218  7,093,659  (1,441)-0.0%Non-interest-earning assets  455,725  455,752  (27)-0.0%Total assets $7,547,943 $7,549,411 $(1,468)-0.0%      Liabilities and Stockholders' Equity     Interest-bearing liabilities:     Deposits:     Interest-bearing demand $2,402,177 $2,385,397 $16,780 0.7%Savings  761,090  759,247  1,843 0.2%Certificates of deposit (retail)  1,181,526  1,201,950  (20,424)-1.7%Certificates of deposit (brokered)  755,461  756,179  (718)-0.1%Total interest-bearing deposits  5,100,254  5,102,773  (2,519)-0.0%Borrowings:     Federal Home Loan Bank advances  861,445  998,760  (137,315)-13.7%Other borrowings  133,833  38,478  95,355 247.8%Total borrowings  995,278  1,037,238  (41,960)-4.0%   Total interest-bearing liabilities  6,095,532  6,140,011  (44,479)-0.7%Non-interest-bearing liabilities:     Non-interest-bearing deposits  633,494  595,035  38,459 6.5%Other non-interest-bearing liabilities  59,644  59,447  197 0.3%Total non-interest-bearing liabilities  693,138  654,482  38,656 5.9%Total liabilities  6,788,670  6,794,493  (5,823)-0.1%Stockholders' equity  759,273  754,918  4,355 0.6%Total liabilities and stockholders' equity $7,547,943 $7,549,411 $(1,468)-0.0%      Average interest-earning assets to average interest-bearing liabilities  116.35% 115.53% 0.82%0.7%

Kearny Financial Corp.
Performance Ratio Highlights
(Unaudited)

  Three Months EndedVariance
or Change
  March 31,
2026December 31,
2025Average yield on interest-earning assets:    Loans receivable, including loans held for sale 4.58%4.67%-0.09%Taxable investment securities 3.83%3.92%-0.09%Tax-exempt investment securities (1) 2.37%2.36%0.01%Other interest-earning assets 5.24%5.13%0.11%Total interest-earning assets 4.47%4.55%-0.08%     Average cost of interest-bearing liabilities:    Deposits:    Interest-bearing demand 2.34%2.51%-0.17%Savings 1.26%1.40%-0.14%Certificates of deposit (retail) 3.20%3.45%-0.25%Certificates of deposit (brokered) 2.71%2.72%-0.01%Total interest-bearing deposits 2.43%2.60%-0.17%Borrowings:    Federal Home Loan Bank advances 3.56%3.66%-0.10%Other borrowings 3.66%4.13%-0.47%Total borrowings 3.57%3.68%-0.11%   Total interest-bearing liabilities 2.62%2.78%-0.16%     Interest rate spread (2) 1.85%1.77%0.08%Net interest margin (3) 2.21%2.14%0.07%     Non-interest income to average assets (annualized) 0.32%0.30%0.02%Non-interest expense to average assets (annualized) 1.71%1.65%0.06%     Efficiency ratio (4) 71.25%71.64%-0.39%     Return on average assets (annualized) 0.54%0.50%0.04%Return on average equity (annualized) 5.34%5.01%0.33%Return on average tangible equity (annualized) (5) 6.34%5.96%0.38%

_________________________(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) March 31,
2026December 31,
2025September 30,
2025June 30,
2025March 31,
2025  (Unaudited)(Unaudited)(Unaudited)(Audited)(Unaudited)Assets      Cash and cash equivalents $123,836 $147,340 $130,139 $167,269 $126,095 Securities available for sale  983,325  1,000,397  1,016,182  1,012,969  1,003,393 Securities held to maturity  110,581  112,800  116,681  120,217  124,859 Loans held-for-sale  12,183  8,786  6,650  5,931  6,187 Loans receivable  5,779,181  5,753,393  5,767,419  5,812,937  5,846,175 Less: allowance for credit losses on loans  (44,723) (44,958) (45,060) (46,191) (44,455)Net loans receivable  5,734,458  5,708,435  5,722,359  5,766,746  5,801,720 Premises and equipment  41,896  42,559  43,222  43,897  44,192 Federal Home Loan Bank stock  55,737  57,212  62,011  64,261  62,261 Accrued interest receivable  28,304  27,420  29,460  28,098  28,521 Goodwill  113,525  113,525  113,525  113,525  113,525 Core deposit intangible  1,080  1,198  1,317  1,436  1,554 Bank owned life insurance  312,050  309,404  307,248  304,717  303,629 Deferred income taxes, net  50,961  51,617  51,587  55,203  52,913 Other assets  39,720  40,185  47,629  56,181  64,292 Total assets $7,607,656 $7,620,878 $7,648,010 $7,740,450 $7,733,141        Liabilities      Deposits:      Non-interest-bearing $631,506 $627,180 $578,481 $582,045 $587,118 Interest-bearing  5,097,576  5,084,370  5,053,401  5,093,172  5,120,230 Total deposits  5,729,082  5,711,550  5,631,882  5,675,217  5,707,348 Borrowings  1,060,000  1,095,000  1,206,497  1,256,491  1,213,976 Advance payments by borrowers for taxes  19,317  18,474  19,261  19,317  19,981 Other liabilities  36,225  38,458  37,166  43,463  43,723 Total liabilities  6,844,624  6,863,482  6,894,806  6,994,488  6,985,028        Stockholders' Equity      Common stock  648  648  648  646  646 Paid-in capital  495,442  494,959  494,490  494,546  494,131 Retained earnings  349,881  346,749  344,287  341,744  341,921 Unearned ESOP shares  (17,511) (17,997) (18,484) (18,970) (19,457)Accumulated other comprehensive loss  (65,428) (66,963) (67,737) (72,004) (69,128)Total stockholders' equity  763,032  757,396  753,204  745,962  748,113 Total liabilities and stockholders' equity $7,607,656 $7,620,878 $7,648,010 $7,740,450 $7,733,141        Consolidated capital ratios      Equity to assets  10.03% 9.94% 9.85% 9.64% 9.67%Tangible equity to tangible assets (1)  8.65% 8.56% 8.47% 8.27% 8.31%       Share data      Outstanding shares  64,739  64,739  64,739  64,577  64,580 Book value per share $11.79 $11.70 $11.63 $11.55 $11.58 Tangible book value per share (2) $10.02 $9.93 $9.86 $9.77 $9.80 

_________________________(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) March 31,
2026December 31,
2025September 30,
2025June 30,
2025March 31,
2025Loan portfolio composition:      Commercial loans:      Multi-family mortgage $2,555,001 $2,619,124 $2,640,737 $2,709,654 $2,733,406 Nonresidential mortgage  1,012,422  990,178  988,969  986,556  988,074 Commercial business  201,277  169,884  142,304  138,755  140,224 Construction  207,765  181,766  189,626  177,713  174,722 Total commercial loans  3,976,465  3,960,952  3,961,636  4,012,678  4,036,426 One- to four-family residential mortgage  1,741,023  1,730,543  1,749,362  1,748,591  1,761,465 Consumer loans:      Home equity loans  61,379  59,046  54,116  50,737  49,699 Other consumer  2,377  2,523  2,487  2,533  2,859 Total consumer loans  63,756  61,569  56,603  53,270  52,558    Total loans, excluding yield adjustments  5,781,244  5,753,064  5,767,601  5,814,539  5,850,449 Unaccreted yield adjustments  (2,063) 329  (182) (1,602) (4,274)   Loans receivable, net of yield adjustments  5,779,181  5,753,393  5,767,419  5,812,937  5,846,175 Less: allowance for credit losses on loans  (44,723) (44,958) (45,060) (46,191) (44,455)      Net loans receivable $5,734,458 $5,708,435 $5,722,359 $5,766,746 $5,801,720        Asset quality:      Nonperforming assets:      Accruing loans – 90 days and over past due $— $— $20,494 $— $— Nonaccrual loans  52,379  51,306  44,085  45,597  37,683 Total nonperforming loans  52,379  51,306  64,579  45,597  37,683 Nonaccrual loans held-for-sale  —  —  —  —  — Other real estate owned  —  —  —  —  — Total nonperforming assets $52,379 $51,306 $64,579 $45,597 $37,683        Nonperforming loans (% total loans)  0.91% 0.89% 1.12% 0.78% 0.64%Nonperforming assets (% total assets)  0.69% 0.67% 0.84% 0.59% 0.49%       Classified loans $97,384 $97,542 $117,780 $118,418 $113,470        Allowance for credit losses on loans (ACL):      ACL to total loans  0.77% 0.78% 0.78% 0.79% 0.76%ACL to nonperforming loans  85.38% 87.63% 69.78% 101.30% 117.97%Net charge-offs $626 $669 $1,049 $49 $368 Average net charge-off rate (annualized)  0.04% 0.05% 0.07% 0.00% 0.03%

Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)

(Dollars in Thousands) March 31,
2026December 31,
2025September 30,
2025June 30,
2025March 31,
2025Funding composition:      Deposits:      Non-interest-bearing deposits $631,506 $627,180 $578,481 $582,045 $587,118 Interest-bearing demand  2,375,565  2,376,825  2,334,560  2,362,222  2,410,925 Savings  763,016  769,742  751,253  754,376  758,239 Certificates of deposit (retail)  1,201,752  1,180,370  1,208,408  1,218,920  1,218,479 Certificates of deposit (brokered)  757,243  757,433  759,180  757,654  732,587 Interest-bearing deposits  5,097,576  5,084,370  5,053,401  5,093,172  5,120,230    Total deposits  5,729,082  5,711,550  5,631,882  5,675,217  5,707,348        Borrowings:      Federal Home Loan Bank advances  900,000  800,000  1,006,497  1,106,491  1,028,976 Overnight borrowings  160,000  295,000  200,000  150,000  185,000    Total borrowings  1,060,000  1,095,000  1,206,497  1,256,491  1,213,976              Total funding $6,789,082 $6,806,550 $6,838,379 $6,931,708 $6,921,324        Loans as a % of deposits  100.3% 100.1% 101.7% 101.7% 101.8%Deposits as a % of total funding  84.4% 83.9% 82.4% 81.9% 82.5%Borrowings as a % of total funding  15.6% 16.1% 17.6% 18.1% 17.5%       Uninsured deposits:      Uninsured deposits (reported) (1) $2,199,708 $2,158,440 $2,040,021 $1,989,095 $1,959,070 Uninsured deposits (adjusted) (2) $839,094 $800,998 $804,209 $813,780 $799,238 

_________________________(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) March 31,
2026December 31,
2025September 30,
2025June 30,
2025March 31,
2025Interest income      Loans $66,310 $67,410 $68,349 $66,485 $64,768 Taxable investment securities  11,425  11,623  12,600  12,322  12,738 Tax-exempt investment securities  34  35  41  49  55 Other interest-earning assets  1,400  1,584  1,518  1,549  1,773 Total interest income  79,169  80,652  82,508  80,405  79,334        Interest expense      Deposits  31,045  33,148  33,931  33,607  34,912 Borrowings  8,888  9,535  10,873  10,955  10,380 Total interest expense  39,933  42,683  44,804  44,562  45,292 Net interest income  39,236  37,969  37,704  35,843  34,042 Provision for (reversal of) credit losses  391  567  (82) 1,785  366 Net interest income after provision for (reversal of) credit losses  38,845  37,402  37,786  34,058  33,676        Non-interest income      Fees and service charges  922  1,295  892  655  573 Gain on sale of loans  193  224  199  190  112 Income from bank owned life insurance  2,646  2,710  2,689  2,869  2,617 Electronic banking fees and charges  389  473  416  442  391 Other income  1,944  869  1,651  835  869 Total non-interest income  6,094  5,571  5,847  4,991  4,562        Non-interest expense      Salaries and employee benefits  19,316  18,373  18,745  18,093  17,700 Net occupancy expense of premises  3,263  2,888  3,307  2,820  3,075 Equipment and systems  3,975  4,007  3,974  4,030  3,921 Advertising and marketing  665  412  562  615  609 Federal deposit insurance premium  1,302  1,357  1,301  1,395  1,450 Directors' compensation  307  306  307  307  326 Other expense  3,471  3,848  3,470  3,633  3,309 Total non-interest expense  32,299  31,191  31,666  30,893  30,390 Income before income taxes  12,640  11,782  11,967  8,156  7,848 Income taxes  2,503  2,333  2,461  1,387  1,200 Net income $10,137 $9,449 $9,506 $6,769 $6,648        Net income per common share (EPS)      Basic $0.16 $0.15 $0.15 $0.11 $0.11 Diluted $0.16 $0.15 $0.15 $0.11 $0.11        Dividends declared      Cash dividends declared per common share $0.11 $0.11 $0.11 $0.11 $0.11 Cash dividends declared $7,005 $6,987 $6,963 $6,946 $6,933 Dividend payout ratio  69.1% 73.9% 73.2% 102.6% 104.3%       Weighted average number of common shares outstanding      Basic  62,908  62,858  62,741  62,597  62,548 Diluted  63,251  63,061  62,951  62,755  62,713 

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)

  Three Months Ended(Dollars in Thousands) March 31,
2026December 31,
2025September 30,
2025June 30,
2025March 31,
2025Assets      Interest-earning assets:      Loans receivable, including loans held-for-sale $5,785,095 $5,778,680 $5,806,767 $5,830,421 $5,805,045 Taxable investment securities  1,194,487  1,185,602  1,236,705  1,227,825  1,251,612 Tax-exempt investment securities  5,669  5,902  6,856  8,039  9,135 Other interest-earning assets  106,967  123,475  115,776  117,622  110,736 Total interest-earning assets  7,092,218  7,093,659  7,166,104  7,183,907  7,176,528 Non-interest-earning assets  455,725  455,752  453,215  454,975  457,206 Total assets $7,547,943 $7,549,411 $7,619,319 $7,638,882 $7,633,734        Liabilities and Stockholders' Equity      Interest-bearing liabilities:      Deposits:      Interest-bearing demand $2,402,177 $2,385,397 $2,343,809 $2,342,523 $2,405,974 Savings  761,090  759,247  754,244  754,192  751,243 Certificates of deposit (retail)  1,181,526  1,201,950  1,211,026  1,215,661  1,215,767 Certificates of deposit (brokered)  755,461  756,179  755,813  744,345  730,612 Total interest-bearing deposits  5,100,254  5,102,773  5,064,892  5,056,721  5,103,596 Borrowings:      Federal Home Loan Bank advances  861,445  998,760  1,077,146  1,083,902  1,028,958 Other borrowings  133,833  38,478  85,489  107,582  93,389 Total borrowings  995,278  1,037,238  1,162,635  1,191,484  1,122,347    Total interest-bearing liabilities  6,095,532  6,140,011  6,227,527  6,248,205  6,225,943 Non-interest-bearing liabilities:      Non-interest-bearing deposits  633,494  595,035  581,625  582,085  602,647 Other non-interest-bearing liabilities  59,644  59,447  65,024  64,405  59,919 Total non-interest-bearing liabilities  693,138  654,482  646,649  646,490  662,566 Total liabilities  6,788,670  6,794,493  6,874,176  6,894,695  6,888,509 Stockholders' equity  759,273  754,918  745,143  744,187  745,225 Total liabilities and stockholders' equity $7,547,943 $7,549,411 $7,619,319 $7,638,882 $7,633,734        Average interest-earning assets to average interest-bearing liabilities  116.35% 115.53% 115.07% 114.98% 115.27%

Kearny Financial Corp.
Performance Ratio Highlights

  Three Months Ended  March 31,
2026December 31,
2025September 30,
2025June 30,
2025March 31,
2025Average yield on interest-earning assets:      Loans receivable, including loans held-for-sale 4.58%4.67%4.71%4.56%4.46%Taxable investment securities 3.83%3.92%4.08%4.01%4.07%Tax-exempt investment securities (1) 2.37%2.36%2.42%2.43%2.43%Other interest-earning assets 5.24%5.13%5.24%5.27%6.40%   Total interest-earning assets 4.47%4.55%4.61%4.48%4.42%       Average cost of interest-bearing liabilities:      Deposits:      Interest-bearing demand 2.34%2.51%2.63%2.63%2.73%Savings 1.26%1.40%1.41%1.33%1.30%Certificates of deposit (retail) 3.20%3.45%3.56%3.56%3.73%Certificates of deposit (brokered) 2.71%2.72%2.67%2.62%2.58%Total interest-bearing deposits 2.43%2.60%2.68%2.66%2.74%Borrowings:      Federal Home Loan Bank advances 3.56%3.66%3.69%3.60%3.63%Other borrowings 3.66%4.13%4.44%4.45%4.41%Total borrowings 3.57%3.68%3.74%3.68%3.70%   Total interest-bearing liabilities 2.62%2.78%2.88%2.85%2.91%       Interest rate spread (2) 1.85%1.77%1.73%1.62%1.51%Net interest margin (3) 2.21%2.14%2.10%2.00%1.90%       Non-interest income to average assets (annualized) 0.32%0.30%0.31%0.26%0.24%Non-interest expense to average assets (annualized) 1.71%1.65%1.66%1.62%1.59%       Efficiency ratio (4) 71.25%71.64%72.71%75.66%78.72%       Return on average assets (annualized) 0.54%0.50%0.50%0.35%0.35%Return on average equity (annualized) 5.34%5.01%5.10%3.64%3.57%Return on average tangible equity (annualized) (5) 6.34%5.96%6.09%4.36%4.28%

_________________________(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) March 31,
2026December 31,
2025September 30,
2025June 30,
2025March 31,
2025Adjusted net income:      Net income (GAAP) $10,137 $9,449 $9,506 $6,769 $6,648 Non-recurring transactions – net of tax:      Branch consolidation expenses  —  —  178  —  — Gain on sale of property held for sale  (724) —  (532) —  — Adjusted net income $9,413 $9,449 $9,152 $6,769 $6,648        Calculation of pre-tax, pre-provision net revenue:      Net income (GAAP) $10,137 $9,449 $9,506 $6,769 $6,648 Adjustments to net income (GAAP):      Provision for income taxes  2,503  2,333  2,461  1,387  1,200 Provision for (reversal of) credit losses  391  567  (82) 1,785  366 Pre-tax, pre-provision net revenue (non-GAAP) $13,031 $12,349 $11,885 $9,941 $8,214        Adjusted earnings per share:      Weighted average common shares – basic  62,908  62,858  62,741  62,597  62,548 Weighted average common shares – diluted  63,251  63,061  62,951  62,755  62,713        Earnings per share – basic (GAAP) $0.16 $0.15 $0.15 $0.11 $0.11 Earnings per share – diluted (GAAP) $0.16 $0.15 $0.15 $0.11 $0.11        Adjusted earnings per share – basic (non-GAAP) $0.15 $0.15 $0.15 $0.11 $0.11 Adjusted earnings per share – diluted (non-GAAP) $0.15 $0.15 $0.15 $0.11 $0.11        Pre-tax, pre-provision net revenue per share:      Pre-tax, pre-provision net revenue per share – basic (non-GAAP) $0.21 $0.20 $0.19 $0.16 $0.13 Pre-tax, pre-provision net revenue per share – diluted (non-GAAP) $0.21 $0.20 $0.19 $0.16 $0.13        Adjusted return on average assets:      Total average assets $7,547,943 $7,549,411 $7,619,319 $7,638,882 $7,633,734        Return on average assets (GAAP)  0.54% 0.50% 0.50% 0.35% 0.35%Adjusted return on average assets (non-GAAP)  0.50% 0.50% 0.48% 0.35% 0.35%       Adjusted return on average equity:      Total average equity $759,273 $754,918 $745,143 $744,187 $745,225        Return on average equity (GAAP)  5.34% 5.01% 5.10% 3.64% 3.57%Adjusted return on average equity (non-GAAP)  4.96% 5.01% 4.91% 3.64% 3.57%

Kearny Financial Corp.
Reconciliation of GAAP to Non-GAAP
(Unaudited)

  Three Months Ended(Dollars and Shares in Thousands,
Except Per Share Data) March 31,
2026December 31,
2025September 30,
2025June 30,
2025March 31,
2025Adjusted return on average tangible equity:      Total average equity $759,273 $754,918 $745,143 $744,187 $745,225 Less: average goodwill  (113,525) (113,525) (113,525) (113,525) (113,525)Less: average other intangible assets  (1,157) (1,276) (1,395) (1,513) (1,636)Total average tangible equity $644,591 $640,117 $630,223 $629,149 $630,064        Return on average tangible equity (non-GAAP)  6.34% 5.96% 6.09% 4.36% 4.28%Adjusted return on average tangible equity (non-GAAP)  5.90% 5.96% 5.87% 4.36% 4.28%       Adjusted non-interest expense ratio:      Non-interest expense (GAAP) $32,299 $31,191 $31,666 $30,893 $30,390 Non-recurring transactions:      Branch consolidation expenses  —  —  (250) —  — Non-interest expense (non-GAAP) $32,299 $31,191 $31,416 $30,893 $30,390        Non-interest expense ratio (GAAP)  1.71% 1.65% 1.66% 1.62% 1.59%Adjusted non-interest expense ratio (non-GAAP)  1.71% 1.65% 1.65% 1.62% 1.59%       Adjusted efficiency ratio:      Non-interest expense (non-GAAP) $32,299 $31,191 $31,416 $30,893 $30,390        Net interest income (GAAP) $39,236 $37,969 $37,704 $35,843 $34,042 Total non-interest income (GAAP)  6,094  5,571  5,847  4,991  4,562 Non-recurring transactions:      Gain on sale of property held for sale  (1,020) —  (749) —  — Total revenue (non-GAAP) $44,310 $43,540 $42,802 $40,834 $38,604        Efficiency ratio (GAAP)  71.25% 71.64% 72.71% 75.66% 78.72%Adjusted efficiency ratio (non-GAAP)  72.89% 71.64% 73.40% 75.66% 78.72%

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