Kearny Financial : Third Quarter 2026 Latest Investor Presentation

Published: 2026-04-23 09:24:10 ET KRNY

Published on 04/23/2026 at 09:24 am EDT

I N V E S T O R P R E S E N T A T I O N

April 23 , 2026

NASDAQ:

KRNY

Founded:

1884

Assets

$7.6 billion

Loans

$5.8 billion

Deposits

$5.7 billion

Capital

$0.8 billion

TBV Per Share:

$10.02

Market Cap:

$488.8 million

Kearny Snapshot1

Branch/Office Footprint

1 Financial information as of March 31, 2026.

Source: S&P Global Market Intelligence & Company Filings. 3

40 branches

across 12 counties

- in NJ and the NY metro area.

Top 10 NJ

Financial Institution -

by Assets & Deposits

Financial Metrics

Quarter Highlights

Strengthened Earnings Power: Pre-tax, pre-provision net revenue

Reported

Net Income: $10.1 million

Diluted EPS: $0.16

Net Interest Income: $39.2 million

Net Interest Margin: 2.21%

Dividend Yield: 5.83%

CET- 1 Ratio: 14.57%

rose 5.5% to $13.0 million, underscoring continued improvement in core earnings.

Sustained Margin Expansion: Net interest margin increased 7 bps to 2.21%, marking the sixth consecutive quarter of improvement, driven by favorable loan repricing and improving funding costs.

Advancing Loan Diversification: Continued to remix the loan portfolio by growing commercial business, construction, and home equity loans by 18.5%, 14.3% and 4.0%, respectively, while strategically reducing multifamily exposure.

Executing Strategic Actions:

Operational Efficiency: The Lab Consulting partnership is underway, with early momentum supporting streamlined processes, expanded automation, and scalable growth.

Deposit Franchise Expansion: Added deposit-focused relationship officers and launched a specialty deposits vertical to diversify funding sources and enhance balance-sheet stability.

1 Non-GAAP Financial Information on page 20.

Source: Company Filings. 4

Net Interest Income & Net Interest Margin

Earnings Metrics1

($ thousands) ($ thousands, except per share data)

2.21%

$0.19

$0.20

$0.21

2.00%

2.14%

2.10%

$39,236

$0.13

$0.16

$0.15 $0.15

1.90%

$0.11 $0.11

$34,042

$35,843

$37,704

$37,969

$6,648

$8,214

$6,769

$9,941

$9,506

$11,885

$12,349

$9,449

$13,031

$10,137

3Q25 4Q25 1Q26 2Q26 3Q26

Net Interest Income Net Interest Margin

1 See Non-GAAP Financial Information on page 20.

Source: Company Filings. 5

Net income

Earnings per share, diluted

Pre-tax, pre-provision net revenue

Pre-tax, pre-provision earnings per share

Driving sustainable earnings growth through disciplined capital deployment, funding optimization, and operational efficiency

Optimize Branch Footprint

Lower cost structure | Higher capital productivity

Closed 3 underperforming branches lowering fixed costs and reallocating capital to higher-return opportunities.

Grow Low-Cost Core Deposits

Improve funding mix | Lower cost of funds

Added 7 experienced, deposit-focused bankers focused on growth in relationship-based middle-market commercial and specialty deposits.

Enhance Loan Yields

Disciplined growth | Improved asset mix

Advanced loan portfolio diversification by growing commercial business, construction, and home equity loans, while strategically reducing multifamily mortgage exposure.

Lab Consulting Initiative

Operating leverage | Capacity for growth

Developing production-ready RPAs, eliminating manual rework and expanding scalable operating capacity.

Execution underway with tangible actions already completed and financial benefits beginning to emerge

Deposit Trend & Composition

Non-Maturity Deposit Mix1

($ millions)

$5,707 $5,675 $5,632 $5,712 $5,729

11.0%

Deposit Composition

$587

$582

41.5%

$578

$627 *

$632

Government 15.8%

$2,411

$2,362

$2,335

$2,377

$2,376

$758

$733

$754

$758

$751

$759

$770

$757

$763

$757

Commercial 21.8%

13.4%

Consumer 62.4%

13.2%

$1,218

$1,219

$1,208

$1,180

$1,202

Retail CDs Wholesale CDs Savings Interest Bearing DDA Non-interest Bearing DDA

20.1%

3Q25 4Q25 1Q26 2Q26 3Q26

* Increase from 1Q26 to 2Q26 in non-interest bearing demand deposits was largely the result of the migration of a consumer interest bearing product to a non-interest bearing product

1 As of March 31, 2026.

Source: Company Filings. 7

Retail CD Maturities1

Retail Deposit Segmentation2,3

($ millions)

CD Maturities - Retail & Listing Services (over the next 12 months)

3.28% 3.34% 3.27%

3.16%

2.72%

$303

$355

$233

$222

$88

2Q26 3Q26 4Q26 1Q27 2Q27 & Beyond

1 Quarters are based on a calendar year view.

2As of March 31, 2026.

3 Excludes brokered and state & local government deposits. 8

Source: Company Filings.

Loan Trend

($ millions)

$5,850

$140

$175

$988

$2,733

$5,815

$987

$2,710

$139

$178

$5,768 $5,753

$142

$190

$989 $990

$2,641 $2,619

$170

$182

$5,781

$1,012

$2,555

$201

$208

Highlights

Progressing Portfolio Diversification: Commercial business, construction, and home equity loans have increased by 18.5%, 14.3% and 4.0%, respectively, while strategically reducing multifamily mortgage exposure.

Loan yields increased 12bps year over year to 4.58% due to the ongoing repricing and remix of the existing portfolio.

$50

$51

$54

$59

$61

$1,761

$1,749

$1,731

$1,741

3Q25 4Q25 1Q26 2Q26 3Q26

1-4 Family Home Equity Multi-family CRE Construction C&I

Loan Composition1

Geographic Distribution1

Construction 3.6% C&I 3.5%

CRE 17.5%

QTD Yield on Loans 4.58%

Multi-family 44.2%

1-4 Family

30.1%

Home Equity 1.1%

New York 32.1%

Other 6.5%

Pennsylvania 6.2%

LTV 59.5%

New Jersey

55.2%

1 As of March 31, 2026.

Source: S&P Global Market Intelligence & Company Filings.

Multifamily / CRE Loan Repricing Opportunity1

Highlights

($ thousands)

6.64% 6.84%

6.42%

6.65%

CRE Portfolio Reprice: Loans reprice based on the 5-Year Treasury plus spread or contractual terms.

Interest Income Upside: Repricing

Implied Spread

3.73% 3.74% 3.95% 3.88%

through 2029 has the potential to generate material cumulative annual interest income growth, assuming similar loan replacement.

$189,413

$106,084

$447,054

$268,946

$234,415

$54,834

Yield Enhancement Opportunity: Maturing loans enable strategic redeployment into higher-yielding assets, optimizing portfolio returns.

$85,569

$69,286

Remainder 2026 2027 2028 2029

Maturing Repricing Current Rate Repricing Rate (if repriced 4/1/26)2

1 Excludes coupon greater than 6%. Based on a calendar year view.

2 Repricing Rate: Maturing loans assume treasury + a spread and Repricing loans assume

contractual terms. 10

Source: Company Filings

Multifamily Loan Portfolio Composition1

Highlights

Outside NYC 55.0%

Total MF

$2.6B

Fully NYC Rent Regulated 1.8%

Majority NYC Rent

Regulated 3.4%

Loan Value

Brooklyn

752

63.4%

Queens

165

13.9%

Manhattan

134

11.3%

Bronx

135

11.4%

Total NYC MF Loan Portfolio

1,186

100.0%

Majority NYC Free Market 39.7%

Strong Asset Quality: Proven resilience across multiple credit cycles.

Diversified Exposure: <50% of Multifamily in NYC; only 5.2% majority rent-regulated.

Near-Term Maturities: 24.1% of NYC Multifamily loans

reprice or mature within 12 months.

New York City ("NYC") Multifamily1

NYC Multifamily Loan Portfolio by Location

1 As of March 31, 2026.

Source: Company Filings 11

($ in millions)

NYC Multifamily Portfolio: Average Loan Balance: Weighted Average LTV:

Nonperforming Loans / Total MF Loans:

Next 12 Months of Maturity & Repricing:

$1.2 billion

$3.18 million

61.4%

1.58%

$276.9 million

CRE Portfolio by Collateral Type1

CRE Loan Geographic Distribution1

Medical 3.8%

Retail 26.2%

Other 5.1%

Specialty & Other

12.1%

Pennsylvania 4.1%

Industrial 19.6%

Total CRE

$1.01B

Mixed Use 24.5%

New York (Ex. Brooklyn) 25.8%

LTV 52.6%

New Jersey

57.2%

Office 13.8%

Brooklyn 7.8%

1 As of March 31, 2026.

Source: Company Filings. 12

Office Loan Geographic Distribution1

Office Portfolio by Contractual Maturity1

($ millions)

$50

Other 3.1%

$47

New Jersey 67.8%

Total Office

$139M

Manhattan 15.8%

New York (Excl.

Manhattan)

13.3%

$40

$30

$20

$33

$17

LTV

49.8%

DSCR

1.8x

$27

13.8% of total CRE portfolio or $139.3 million Average loan size of $2.02 million

$10

2026 2027 2028 2029 2030 2031+

1 As of March 31, 2026. Based on a calendar year view.

Source: Company Filings. 13

Net Charge-offs to Average Total Loans

3.00

2.50

2.00

Global Financial Crisis

Hurricane Sandy

Cumulative charge-offs for KRNY between 2006 and 3Q26 were minimal, totaling $42.1 million.

COVID-19

Pandemic

1.50

1.00

0.50

0.00

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 3Q26

Commercial Banks (not among top 100) KRNY

Between 2006 and 3Q26, including the periods of the Global Financial Crisis and the COVID-19 Pandemic, KRNY maintained an average annual net charge-off rate of 9 basis points, significantly lower than the 47 basis points average for all commercial banks (US Banks not among the top 100)1.

1 Data provided by Federal Reserve Bank of St. Louis.

Source: Company Filings. 14

Comprehensive CRE / Multifamily Underwriting

Multi-faceted Loan Review & Stress Testing

Semi-annual third-party loan-level stress testing and annual capital-based stress testing

Quarterly third-party portfolio loan review with 65% of total portfolio reviewed on an annual basis

Annual internal loan reviews on all commercial loans with

balances of $2.5 million or greater

Highly disciplined LTV and DSCR standards Interest rates stressed at origination

DSCR based on in-place rents, not projections, with conservative allowances for vacancy

NOI underwritten to include forecasted expense increases and full taxes (where a tax abatement exists)

Approval Authority & Underwriting Consistency

Proactive Workout Process

Dedicated team of portfolio managers and loan workout specialists

Weekly meetings comprised of loan officers, credit personnel and special assets group to pre-emptively address delinquencies or problem credits

Philosophy of aggressively addressing impaired assets in a

timely fashion

Lending authority aggregated by borrower/group of related borrowers

Technology ensures consistent and efficient underwriting and risk rating process

Management

Senior Credit Officer Approval

Loan Committee Approval

Board Loan Committee Approval

Non-Performing Loans1

ACL by Loan Segment1

ACL by Loan Segment

Multi-family

$38.1

NPL's

$52.4M

CRE $5.7

C&I $0.5

1-4 Family

$5.1

0.88%

$1,805

0.54%

Home Equity

$0.2

Construction

$2.8

$3,976

Commercial Consumer

Net Charge-Offs / Average Loans

Non-Performing Assets / Total Assets

Allowance for Credit Losses

0.03%

0.00%

0.07%

0.05%

0.04%

Increase driven by one loan in the collection process, which has since been fully repaid.

0.59%

0.49%

0.84%

0.67% 0.69%

($ millions)

0.77%

0.79% 0.78% 0.78%

0.76%

$44.5 $46.2 $45.1 $45.0 $44.7

ACL Balance ACL to Total Loans Receivable

3Q25 4Q25 1Q26 2Q26 3Q26

1 As of March 31, 2026; dollar amounts shown in millions.

Source: Company Filings. 16

Securities Composition1

Securities Average Balance & Yield Trend

Municipal Bonds 0.6%

Corporate Bonds 14.4%

($ millions)

4.06% 4.00% 4.07% 3.91% 3.82%

Agency MBS 59.3%

CLO 20.6%

ABS Student Loans 5.0% 2

$1,261

$1,236

$1,244

$1,192

$1,200

AFS/HTM & Effective Duration1

HTM , 10.1%

Total Effective

Duration ≈ 3.8 years

Floating rate securities

≈ 26%

3Q25 4Q25 1Q26 2Q26 3Q26

Securities Portfolio Yield on Investments

As of March 31, 2026, the after-tax net unrecognized loss on securities held-

to-maturity was $8.2 million, or 1.26% of tangible equity3

AFS , 89.9%

1 As of March 31, 2026.

2 Comprised entirely of securitized federal education loans with 97% U.S. government guarantees.

3 Assumes 29% marginal tax rate. 17

Source: Company Filings.

Regulatory Capital Ratios1,2,3

Highlights

5.00%

9.48%

6.50%

15.51%

14.57% 14.57%

10.00%

8.00%

Well-Capitalized Status Maintained

Regulatory ratios for both Company and Bank remain well above

"well-capitalized" thresholds.

Tangible Equity Strength

Tangible equity / tangible assets: 8.65%, up 34 bps YoY, reinforcing balance sheet resilience.

Significant Contingent Liquidity

$2.5B secured borrowing capacity with FHLB & Fed.

Well Capitalized Regulatory Minimum KRNY

Tier 1 Leverage

Common Equity Tier 1

Tier 1 Risk-Based Capital

Total Risk-Based Capital

Available liquidity is 2.9x greater than the estimated uninsured deposits.

Equity Capitalization Level

Liquidity Sources3

Available

Capacity

Total

Capacity

($ millions)

9.67% 9.64% 9.85% 9.94% 10.03%

8.31% 8.27% 8.47% 8.56% 8.65%

3Q26 4Q25 1Q26 2Q26 3Q26

Internal Sources:

Free Securities and other $

Total Liquidity $ 3,918

$ 2,453

FRB

1,298

FHLB

1,903

439

External Sources:

717 $

717

Tangible Common Equity / Tangible Assets Equity / Assets

1 Kearny Financial Corp. (NASDAQ: KRNY) Regulatory Capital Ratios as of March 31, 2026 are preliminary.

2 Well capitalized regulatory minimums are determined at Bank level.

3 As of March 31, 2026 18

Source: Company Filings.

Driving Sustainable Value for Shareholders

"Operational agility and client-centricity are critical to our long-term success…" - Craig Montanaro, President & CEO

Automation & Integration

Automate workflows with RPA and AI.

Unify processes via top automation

platforms.

Securely integrate with core banking and CRM.

Data & Insights

Deploy real-time KPI dashboards for advanced performance tracking.

Enable data-driven decision-making across pricing, staffing, and balance-sheet optimization.

Client & Change Management

Redesign client processes for enhanced speed, accuracy, and satisfaction.

Share best practices to drive adoption and continuous improvement.

Expected Shareholder Impact

Reduce operating expenses; increase capacity for revenue-generating activities Increase staff productivity; faster execution and elevated client experience Strengthen competitive positioning with a scalable platform for growth Improve employee engagement; enhance control framework and reduce errors

Phase 1: Discovery & Design Phase 3: Scale Initiatives

Phase 2: Pilot Automation & KPI Dashboards

Reconciliation of GAAP to Non-GAAP (Dollars and Shares in Thousands,

Except Per Share Data)

For the quarter ended

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:

$0.21

$0.20

$0.19

$0.16

$0.13

$0.21

$0.20

$0.19

$0.16

$0.13

Pre-tax, pre-provision net revenue per share - basic (non-GAAP)

Pre-tax, pre-provision net revenue per share - diluted

(non-GAAP)

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%

Disclaimer

Kearny Financial Corporation published this content on April 22, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 23, 2026 at 13:23 UTC.