Kearny Financial : Third Quarter 2026 Press Release

Published: 2026-04-23 08:38:16 ET KRNY

Published on 04/23/2026 at 08:38 am EDT

‌FOR IMMEDIATE RELEASE

April 23, 2026

For further information contact:

Keith Suchodolski, Senior Executive Vice President and Chief Operating Officer, or Sean Byrnes, Executive Vice President and Chief Financial Officer

Kearny Financial Corp. (973) 244-4500

Fairfield, N.J., April 23, 2026 - 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 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.

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.

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 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 https://www.kearnybank.com and via a Current Report on Form 8-K on the website of the Securities and Exchange Commission at https://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

(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

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

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

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%

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.

Tangible book value equals total stockholders' equity reduced by goodwill and core deposit intangible assets.

(Dollars and Shares in Thousands,

March 31,

December 31,

Variance

Except Per Share Data)

2026

2025

or Change

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

(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

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

$ -

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

Diluted

63,251

63,061

190

(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%

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%

The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.

Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.

Net interest income divided by average interest-earning assets.

Non-interest expense divided by the sum of net interest income and non-interest income.

Average tangible equity equals total average stockholders' equity reduced by average goodwill and average core deposit intangible assets.

‌Five-Quarter Financial Trend Analysis‌

(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)

(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

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

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

64,577

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

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.

Tangible book value equals total stockholders' equity reduced by goodwill and core deposit intangible assets.

(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%

0.79%

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%

(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%

101.8%

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

Uninsured deposits of Kearny Bank.

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.

(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

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

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

$ 0.11

Diluted

$ 0.16

$ 0.15

$ 0.11

Dividends declared

Cash dividends declared per common share

$ 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

(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%

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%

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%

2.73%

Savings

1.26%

1.40%

1.41%

1.33%

1.30%

Certificates of deposit (retail)

3.20%

3.45%

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%

0.35%

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%

The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.

Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.

Net interest income divided by average interest-earning assets.

Non-interest expense divided by the sum of net interest income and non-interest income.

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.

(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

$ 0.11

Earnings per share - diluted (GAAP)

$ 0.16

$ 0.15

$ 0.11

Adjusted earnings per share - basic (non-GAAP)

$ 0.15

$ 0.11

Adjusted earnings per share - diluted (non-GAAP)

$ 0.15

$ 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%

0.35%

Adjusted return on average assets (non-GAAP)

0.50%

0.48%

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%

(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)

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%

1.62%

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%

Disclaimer

Kearny Financial Corporation published this content on April 23, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 23, 2026 at 12:37 UTC.