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, 2026			December 31, 2025			Variance or Change			Variance 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 Ended						Variance or Change			Variance or Change Pct.
(Dollars and Shares in Thousands, Except Per Share Data)	March 31, 2026			December 31, 2025			Variance or Change			Variance or Change Pct.
Interest 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 Ended						Variance or Change			Variance or Change Pct.
(Dollars in Thousands)	March 31, 2026			December 31, 2025			Variance or Change			Variance or Change Pct.
Assets
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 Ended				Variance or Change
	March 31, 2026		December 31, 2025		Variance or Change
Average 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, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 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, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
Loan 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, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
Funding 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, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
Interest 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, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
Assets
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, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025
Average 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, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
Adjusted 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, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
Adjusted 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

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