Exhibit 99.1
FOR IMMEDIATE RELEASE
October 26, 2023
For further information contact:
Craig L. Montanaro, President and Chief Executive Officer, or
Keith Suchodolski, Senior Executive Vice President and Chief Financial Officer
Kearny Financial Corp.
(973) 244-4500
KEARNY FINANCIAL CORP. ANNOUNCES FIRST QUARTER FISCAL 2024 RESULTS
AND DECLARATION OF CASH DIVIDEND

Fairfield, N.J., October 26, 2023 – Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), reported net income for the quarter ended September 30, 2023 of $9.8 million, or $0.16 per diluted share, compared to $12.0 million, or $0.19 per diluted share, for the quarter ended June 30, 2023.
The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on November 22, 2023, to stockholders of record as of November 8, 2023.

Craig L. Montanaro, President and Chief Executive Officer, commented,“In the face of ongoing industry-wide macro-economic headwinds we continue to execute strategies to mitigate risk, manage our operating expenses and support the long-term franchise value of the Company. To that end, this quarter we de-levered our balance sheet by an additional $90 million, meaningfully slowed net interest margin compression and continued to focus on building high-value loan and deposit relationships. To further support these efforts we have formed a new Corporate Banking division under the executive leadership of our Chief Banking Officer, Anthony Bilotta. This division has been staffed with seasoned banking professionals whose sole focus is the origination of stable, long-term, non-interest-bearing deposits of corporate clients.”

Mr. Montanaro continued, “I am further pleased to announce that, subsequent to quarter end, we launched our enhanced digital banking platform, which expands our client-facing online and mobile capabilities while providing a state-of-the-art user experience. Our continued focus on digital engagement complements our high-touch, personalized service model and allows us to expand our brand into new markets in an efficient and cost-effective manner.”
Balance Sheet
•Total assets were $7.97 billion at September 30, 2023, a decrease of $89.9 million, or 1.1%, from June 30, 2023.
•Investment securities totaled $1.36 billion at September 30, 2023, a decrease of $14.8 million, or 1.1%, from June 30, 2023.
•Loans receivable totaled $5.74 billion at September 30, 2023, a decrease of $93.4 million, or 1.6%, from June 30, 2023. The decrease for the quarter was largely driven by decreases in multi-family and nonresidential mortgage loans.
•Deposits were $5.43 billion at September 30, 2023, a decrease of $195.0 million, or 3.5%, from June 30, 2023. The decrease in deposits was largely concentrated in retail and brokered certificates of deposits and consumer savings.
•The aggregate amount of uninsured deposits was $1.73 billion at September 30, 2023. Excluding collateralized deposits of state and local governments and deposits of the Bank’s wholly-owned subsidiary and holding company, the aggregate amount of uninsured deposits was $683.3 million, or 12.6% of total deposits.
•Borrowings were $1.63 billion at September 30, 2023, an increase of $120.1 million, or 8.0%, from June 30, 2023. The increase in borrowings was driven by an increase in advances from the Federal Home Loan Bank of New York and resulted from the deposit decline previously disclosed.
•At September 30, 2023, the Company maintained available secured borrowing capacity of $2.09 billion, of which $1.65 billion was immediately accessible via in-place collateral and $444.3 million represented the market value of unpledged securities.
1

Earnings
Performance Highlights
•Return on average assets was 0.49% and 0.59% for the quarters ended September 30, 2023 and June 30, 2023, respectively.
•Return on average equity was 4.57% and 5.58% for the quarters ended September 30, 2023 and June 30, 2023, respectively.
•Return on average tangible equity was 6.07% and 7.41% for the quarters ended September 30, 2023 and June 30, 2023, respectively.
Net Interest Income and Net Interest Margin
•Net interest margin contracted one basis point to 2.10% for the quarter ended September 30, 2023. The decrease for the quarter was driven by an increase in the cost of interest-bearing liabilities and a decrease in the average balance of interest-earning assets, largely offset by a higher average yield on interest-earning assets.
•For the quarter ended September 30, 2023, net interest income decreased $1.0 million to $39.2 million from $40.2 million for the quarter ended June 30, 2023. Included in net interest income for the quarters ended September 30, 2023 and June 30, 2023, respectively, was purchase accounting accretion of $650,000 and $887,000, and loan prepayment penalty income of $267,000 and $185,000.
Non-Interest Income
•For the quarter ended September 30, 2023, non-interest income increased $344,000 from the quarter ended June 30, 2023 to $4.0 million. The increase was primarily attributable to higher income from the investment services division and the impact of a loss on the sale of real estate during the prior comparative period.
Non-Interest Expense
•For the quarter ended September 30, 2023, non-interest expense increased $1.0 million, or 3.5%, to $29.8 million from $28.8 million for the quarter ended June 30, 2023. The increase was primarily attributable to a $446,000 increase in compensation expense and a $205,000 increase in real estate owned expenses, partially offset by a $104,000 decrease in occupancy expense attributable to our previously announced branch closures.
•Equipment and systems expense increased $290,000 from the quarter ended June 30, 2023 due to a non-recurring vendor expense credit that was recorded in the prior comparative period.
•The efficiency and non-interest expense ratios were 68.97% and 1.49%, respectively, for the quarter ended September 30, 2023, as compared to 65.60% and 1.41%, respectively, for the quarter ended June 30, 2023.
Income Taxes
•Income tax expense totaled $3.3 million for the quarter ended September 30, 2023 compared to $3.4 million for the quarter ended June 30, 2023, resulting in an effective tax rate of 25.2% and 21.9%, respectively. The effective tax rate for the current quarter was elevated due to the discrete tax cost associated with the vesting of certain stock-based compensation awards.
2

Asset Quality
•The balance of non-performing assets decreased $4.7 million to $50.9 million, or 0.64% of total assets, at September 30, 2023, from $55.6 million, or 0.69% of total assets, at June 30, 2023.
•Net charge-offs totaled $2.1 million, or 0.15% of average loans, on an annualized basis, for the quarter ended September 30, 2023, compared to $82,000, or 0.01% of average loans, on an annualized basis, for the quarter ended June 30, 2023. All of the charge-offs recorded during the quarter ended September 30, 2023 had previously been individually reserved for within the allowance for credit losses.
•For the quarter ended September 30, 2023, the Company recorded a provision for credit losses of $245,000, compared to a reversal of credit losses of $306,000 for the quarter ended June 30, 2023. The provision for credit loss expense for the quarter ended September 30, 2023 was largely driven by an increase in reserves on individually analyzed loans and a slower prepayment rate assumption, partially offset by a decrease in the balance of loans receivable.
•The allowance for credit losses was $46.9 million, or 0.81% of total loans, at September 30, 2023, compared to $48.7 million, or 0.83% of total loans, at June 30, 2023.
Capital
•During the quarter ended September 30, 2023, the Company repurchased 817,607 shares of common stock at a cost of $6.4 million, or $7.84 per share.
•For the quarter ended September 30, 2023, book value per share decreased $0.16, or 1.2%, to $13.04 while tangible book value per share decreased $0.19, or 1.9%, to $9.77. These decreases were largely driven by an increase in accumulated other comprehensive loss.
•At September 30, 2023, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $131.4 million, partially offset by after-tax unrealized gains on derivatives of $44.8 million. After-tax net unrecognized losses on securities held to maturity of $14.7 million were not reflected in total stockholders’ equity.
•At September 30, 2023, the Company’s tangible equity to tangible assets ratio equaled 8.20% and the regulatory capital ratios of both the Company and the Bank were in excess of the levels required by federal banking regulators to be classified as “well-capitalized” under regulatory guidelines.

This earnings release should be read in conjunction with Kearny Financial Corp.’s Q1 2024 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
3

Linked-Quarter Comparative Financial Analysis
Kearny Financial Corp.
Consolidated Balance Sheets
(Dollars and Shares in Thousands,
Except Per Share Data)		September 30,
2023		June 30,
2023		Variance
or Change		Variance
or Change Pct.
(Unaudited)(Audited)
Assets
Cash and cash equivalents$57,219 $70,515 $(13,296)-18.9 %
Securities available for sale1,215,633 1,227,729 (12,096)-1.0 %
Securities held to maturity143,730 146,465 (2,735)-1.9 %
Loans held-for-sale3,934 9,591 (5,657)-59.0 %
Loans receivable5,736,049 5,829,421 (93,372)-1.6 %
Less: allowance for credit losses on loans(46,872)(48,734)(1,862)-3.8 %
Net loans receivable5,689,177 5,780,687 (91,510)-1.6 %
Premises and equipment46,868 48,309 (1,441)-3.0 %
Federal Home Loan Bank stock81,509 71,734 9,775 13.6 %
Accrued interest receivable29,766 28,133 1,633 5.8 %
Goodwill210,895 210,895 — — %
Core deposit intangible2,323 2,457 (134)-5.5 %
Bank owned life insurance294,491 292,825 1,666 0.6 %
Deferred income taxes, net56,500 51,973 4,527 8.7 %
Other real estate owned12,956 12,956 — — %
Other assets129,865 110,546 19,319 17.5 %
Total assets $7,974,866 $8,064,815 $(89,949)-1.1 %
Liabilities
Deposits:
Non-interest-bearing $595,141 $609,999 $(14,858)-2.4 %
Interest-bearing4,839,027 5,019,184 (180,157)-3.6 %
Total deposits5,434,168 5,629,183 (195,015)-3.5 %
Borrowings1,626,933 1,506,812 120,121 8.0 %
Advance payments by borrowers for taxes16,907 18,338 (1,431)-7.8 %
Other liabilities47,324 41,198 6,126 14.9 %
Total liabilities7,125,332 7,195,531 (70,199)-1.0 %
Stockholders' Equity
Common stock652 659 (7)-1.1 %
Paid-in capital497,269 503,332 (6,063)-1.2 %
Retained earnings460,464 457,611 2,853 0.6 %
Unearned ESOP shares(22,375)(22,862)487 2.1 %
Accumulated other comprehensive loss(86,476)(69,456)(17,020)-24.5 %
Total stockholders' equity849,534 869,284 (19,750)-2.3 %
Total liabilities and stockholders' equity$7,974,866 $8,064,815 $(89,949)-1.1 %
Consolidated capital ratios
Equity to assets10.65 %10.78 %-0.13 %
Tangible equity to tangible assets (1)
8.20 %8.35 %-0.15 %
Share data
Outstanding shares65,13265,864(732)-1.1 %
Book value per share$13.04 $13.20 $(0.16)-1.2 %
Tangible book value per share (2)
$9.77 $9.96 $(0.19)-1.9 %
_________________________
(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.
4

Kearny Financial Corp.
Consolidated Statements of Income
(Unaudited)
(Dollars and Shares in Thousands,
Except Per Share Data)		Three Months EndedVariance
or Change		Variance
or Change Pct.
September 30,
2023		June 30,
2023
Interest income
Loans$62,769 $62,044 $725 1.2 %
Taxable investment securities16,265 15,736 529 3.4 %
Tax-exempt investment securities87 91 (4)-4.4 %
Other interest-earning assets2,047 1,821 226 12.4 %
Total interest income81,168 79,692 1,476 1.9 %
Interest expense
Deposits27,567 26,226 1,341 5.1 %
Borrowings14,441 13,286 1,155 8.7 %
Total interest expense42,008 39,512 2,496 6.3 %
Net interest income39,160 40,180 (1,020)-2.5 %
Provision for (reversal of) credit losses 245 (306)551 -180.1 %
Net interest income after provision for (reversal of) credit losses38,915 40,486 (1,571)-3.9 %
Non-interest income
Fees and service charges748 699 49 7.0 %
Gain on sale of loans215 199 16 8.0 %
Loss on sale of other real estate owned— (139)139 100.0 %
Income from bank owned life insurance1,666 1,605 61 3.8 %
Electronic banking fees and charges367 399 (32)-8.0 %
Other income1,014 903 111 12.3 %
Total non-interest income4,010 3,666 344 9.4 %
Non-interest expense
Salaries and employee benefits17,761 17,315 446 2.6 %
Net occupancy expense of premises2,758 2,862 (104)-3.6 %
Equipment and systems3,801 3,511 290 8.3 %
Advertising and marketing228 231 (3)-1.3 %
Federal deposit insurance premium1,524 1,455 69 4.7 %
Directors' compensation393 345 48 13.9 %
Other expense3,309 3,042 267 8.8 %
Total non-interest expense29,774 28,761 1,013 3.5 %
Income before income taxes13,151 15,391 (2,240)-14.6 %
Income taxes3,309 3,378 (69)-2.0 %
Net income$9,842 $12,013 $(2,171)-18.1 %
Net income per common share (EPS)
Basic$0.16 $0.19 $(0.03)
Diluted$0.16 $0.19 $(0.03)
Dividends declared
Cash dividends declared per common share$0.11 $0.11 $— 
Cash dividends declared$6,989 $7,007 $(18)
Dividend payout ratio71.0 %58.3 %12.7 %
Weighted average number of common shares outstanding
Basic63,01463,667(653)
Diluted63,06163,667(606)
5

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)
(Dollars in Thousands)Three Months EndedVariance
or Change		Variance
or Change Pct.
September 30,
2023		June 30,
2023
Assets
Interest-earning assets:
Loans receivable, including loans held for sale$5,788,074 $5,932,541 $(144,467)-2.4 %
Taxable investment securities1,516,393 1,529,582 (13,189)-0.9 %
Tax-exempt investment securities15,483 16,346 (863)-5.3 %
Other interest-earning assets130,829 128,158 2,671 2.1 %
Total interest-earning assets7,450,779 7,606,627 (155,848)-2.0 %
Non-interest-earning assets568,723 556,962 11,761 2.1 %
Total assets $8,019,502 $8,163,589 $(144,087)-1.8 %
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand$2,245,831 $2,321,120 $(75,289)-3.2 %
Savings719,508 774,854 (55,346)-7.1 %
Certificates of deposit1,968,512 2,057,818 (89,306)-4.3 %
Total interest-bearing deposits4,933,851 5,153,792 (219,941)-4.3 %
Borrowings:
Federal Home Loan Bank advances1,386,473 1,374,316 12,157 0.9 %
Other borrowings158,098 100,055 58,043 58.0 %
Total borrowings1,544,571 1,474,371 70,200 4.8 %
Total interest-bearing liabilities6,478,422 6,628,163 (149,741)-2.3 %
Non-interest-bearing liabilities:
Non-interest-bearing deposits612,251 608,765 3,486 0.6 %
Other non-interest-bearing liabilities66,701 64,970 1,731 2.7 %
Total non-interest-bearing liabilities678,952 673,735 5,217 0.8 %
Total liabilities7,157,374 7,301,898 (144,524)-2.0 %
Stockholders' equity862,128 861,691 437 0.1 %
Total liabilities and stockholders' equity$8,019,502 $8,163,589 $(144,087)-1.8 %
Average interest-earning assets to average interest-bearing liabilities115.01 %114.76 %0.25 %0.2 %
6

Kearny Financial Corp.
Performance Ratio Highlights
(Unaudited)
Three Months EndedVariance
or Change
September 30,
2023		June 30,
2023
Average yield on interest-earning assets:
Loans receivable, including loans held for sale4.34 %4.18 %0.16 %
Taxable investment securities4.29 %4.12 %0.17 %
Tax-exempt investment securities (1)
2.25 %2.23 %0.02 %
Other interest-earning assets6.26 %5.68 %0.58 %
Total interest-earning assets 4.36 %4.19 %0.17 %
Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand2.58 %2.38 %0.20 %
Savings 0.47 %0.48 %-0.01 %
Certificates of deposit2.49 %2.24 %0.25 %
Total interest-bearing deposits2.23 %2.04 %0.19 %
Borrowings:
Federal Home Loan Bank advances3.54 %3.51 %0.03 %
Other borrowings5.46 %4.89 %0.57 %
Total borrowings3.74 %3.60 %0.14 %
Total interest-bearing liabilities2.59 %2.38 %0.21 %
Interest rate spread (2)
1.77 %1.81 %-0.04 %
Net interest margin (3)
2.10 %2.11 %-0.01 %
Non-interest income to average assets (annualized)0.20 %0.18 %0.02 %
Non-interest expense to average assets (annualized)1.49 %1.41 %0.08 %
Efficiency ratio (4)
68.97 %65.60 %3.37 %
Return on average assets (annualized)0.49 %0.59 %-0.10 %
Return on average equity (annualized)4.57 %5.58 %-1.01 %
Return on average tangible equity (annualized) (5)
6.07 %7.41 %-1.34 %
_________________________
(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.
7


Five-Quarter Financial Trend Analysis
Kearny Financial Corp.
Consolidated Balance Sheets
(Dollars and Shares in Thousands,
Except Per Share Data)		September 30,
2023		June 30,
2023		March 31,
2023		December 31,
2022		September 30,
2022
(Unaudited)(Audited)(Unaudited)(Unaudited)(Unaudited)
Assets
Cash and cash equivalents$57,219 $70,515 $194,568 $75,660 $96,076 
Securities available for sale1,215,633 1,227,729 1,267,066 1,286,354 1,263,176 
Securities held to maturity143,730 146,465 149,764 153,786 115,943 
Loans held-for-sale3,934 9,591 5,401 12,940 12,936 
Loans receivable5,736,049 5,829,421 5,966,325 5,984,133 5,656,370 
Less: allowance for credit losses on loans(46,872)(48,734)(49,122)(48,877)(47,613)
Net loans receivable5,689,177 5,780,687 5,917,203 5,935,256 5,608,757 
Premises and equipment46,868 48,309 49,589 50,953 52,642 
Federal Home Loan Bank stock81,509 71,734 76,319 69,022 44,957 
Accrued interest receivable29,766 28,133 28,794 27,368 23,817 
Goodwill210,895 210,895 210,895 210,895 210,895 
Core deposit intangible2,323 2,457 2,590 2,732 2,876 
Bank owned life insurance294,491 292,825 291,220 289,673 289,690 
Deferred income taxes, net56,500 51,973 53,151 51,107 54,278 
Other real estate owned12,956 12,956 13,410 13,410 178 
Other assets129,865 110,546 89,366 110,162 113,369 
Total assets $7,974,866 $8,064,815 $8,349,336 $8,289,318 $7,889,590 
Liabilities
Deposits:
Non-interest-bearing $595,141 $609,999 $617,778 $650,950 $683,406 
Interest-bearing4,839,027 5,019,184 5,185,626 5,320,421 5,424,872 
Total deposits5,434,168 5,629,183 5,803,404 5,971,371 6,108,278 
Borrowings1,626,933 1,506,812 1,611,692 1,383,573 851,454 
Advance payments by borrowers for taxes16,907 18,338 18,706 17,307 16,555 
Other liabilities47,324 41,198 49,304 44,427 38,329 
Total liabilities7,125,332 7,195,531 7,483,106 7,416,678 7,014,616 
Stockholders' Equity
Common stock652 659 667 674 680 
Paid-in capital497,269 503,332 509,359 515,332 520,245 
Retained earnings460,464 457,611 452,605 449,489 454,710 
Unearned ESOP shares(22,375)(22,862)(23,348)(23,834)(24,321)
Accumulated other comprehensive loss(86,476)(69,456)(73,053)(69,021)(76,340)
Total stockholders' equity849,534 869,284 866,230 872,640 874,974 
Total liabilities and stockholders' equity$7,974,866 $8,064,815 $8,349,336 $8,289,318 $7,889,590 
Consolidated capital ratios
Equity to assets10.65 %10.78 %10.37 %10.53 %11.09 %
Tangible equity to tangible assets (1)
8.20 %8.35 %8.02 %8.16 %8.61 %
Share data
Outstanding shares 65,13265,86466,68067,38867,938
Book value per share$13.04 $13.20 $12.99 $12.95 $12.88 
Tangible book value per share (2)
$9.77 $9.96 $9.79 $9.78 $9.73 
_________________________
(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.
8

Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)
(Dollars in Thousands)September 30,
2023		June 30,
2023		March 31,
2023		December 31,
2022		September 30,
2022
Loan portfolio composition:
Commercial loans:
Multi-family mortgage$2,699,151 $2,761,775 $2,835,852 $2,851,721 $2,570,297 
Nonresidential mortgage946,801 968,574 1,002,643 1,017,341 1,040,688 
Commercial business149,229 146,861 162,038 177,530 186,361 
Construction230,703 226,609 215,524 186,663 166,052 
Total commercial loans4,025,884 4,103,819 4,216,057 4,233,255 3,963,398 
One- to four-family residential mortgage1,689,051 1,700,559 1,713,343 1,719,514 1,666,730 
Consumer loans:
Home equity loans42,896 43,549 44,376 45,690 43,269 
Other consumer2,644 2,549 2,592 2,648 2,869 
Total consumer loans45,540 46,098 46,968 48,338 46,138 
Total loans, excluding yield adjustments5,760,475 5,850,476 5,976,368 6,001,107 5,676,266 
Unaccreted yield adjustments(24,426)(21,055)(10,043)(16,974)(19,896)
Loans receivable, net of yield adjustments5,736,049 5,829,421 5,966,325 5,984,133 5,656,370 
Less: allowance for credit losses on loans(46,872)(48,734)(49,122)(48,877)(47,613)
Net loans receivable$5,689,177 $5,780,687 $5,917,203 $5,935,256 $5,608,757 
Asset quality:
Nonperforming assets:
Accruing loans - 90 days and over past due$— $— $— $— $— 
Nonaccrual loans37,912 42,627 44,026 40,549 68,574 
Total nonperforming loans37,912 42,627 44,026 40,549 68,574 
Nonaccrual loans held-for-sale— — — 8,650 8,650 
Other real estate owned12,956 12,956 13,410 13,410 178 
Total nonperforming assets$50,868 $55,583 $57,436 $62,609 $77,402 
Nonperforming loans (% total loans)0.66 %0.73 %0.74 %0.68 %1.21 %
Nonperforming assets (% total assets)0.64 %0.69 %0.69 %0.76 %0.98 %
Classified loans$98,616 $93,526 $103,461 $86,069 $92,610 
Allowance for credit losses on loans (ACL):
ACL to total loans0.81 %0.83 %0.82 %0.81 %0.84 %
ACL to nonperforming loans123.63 %114.33 %111.57 %120.54 %69.43 %
Net charge-offs $2,107 $82 $206 $407 $115 
Average net charge-off rate (annualized)0.15 %0.01 %0.01 %0.03 %0.01 %

9

Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)
(Dollars in Thousands)September 30,
2023		June 30,
2023		March 31,
2023		December 31,
2022		September 30,
2022
Funding composition:
Deposits:
Non-interest-bearing deposits$595,141 $609,999 $617,778 $650,950 $683,406 
Interest-bearing demand2,236,573 2,252,912 2,285,799 2,316,485 2,382,411 
Savings 689,163 748,721 811,483 901,514 982,916 
Certificates of deposit (retail)1,300,382 1,377,028 1,327,343 1,354,907 1,263,124 
Certificates of deposit (brokered and listing service)612,909 640,523 761,001 747,515 796,421 
Interest-bearing deposits4,839,027 5,019,184 5,185,626 5,320,421 5,424,872 
Total deposits5,434,168 5,629,183 5,803,404 5,971,371 6,108,278 
Borrowings:
Federal Home Loan Bank advances1,456,933 1,281,812 1,156,692 1,256,573 796,454 
Overnight borrowings170,000 225,000 455,000 127,000 55,000 
Total borrowings1,626,933 1,506,812 1,611,692 1,383,573 851,454 
Total funding$7,061,101 $7,135,995 $7,415,096 $7,354,944 $6,959,732 
Loans as a % of deposits104.8 %102.9 %102.1 %99.6 %92.0 %
Deposits as a % of total funding77.0 %78.9 %78.3 %81.2 %87.8 %
Borrowings as a % of total funding23.0 %21.1 %21.7 %18.8 %12.2 %
Uninsured deposits:
Uninsured deposits (reported) (1)
$1,734,288 $1,771,416 $1,678,051 $1,815,854 $1,771,851 
Uninsured deposits (adjusted) (2)
$683,265 $710,377 $705,727 $794,407 $883,351 
_________________________
(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.
10

Kearny Financial Corp.
Consolidated Statements of Income
(Unaudited)
Three Months Ended
(Dollars and Shares in Thousands,
Except Per Share Data)		September 30,
2023		June 30,
2023		March 31,
2023		December 31,
2022		September 30,
2022
Interest income
Loans$62,769 $62,044 $60,172 $57,996 $52,935 
Taxable investment securities16,265 15,736 15,459 13,221 10,439 
Tax-exempt investment securities87 91 99 219 285 
Other interest-earning assets2,047 1,821 1,441 1,005 761 
Total interest income81,168 79,692 77,171 72,441 64,420 
Interest expense
Deposits27,567 26,226 22,246 18,822 10,869 
Borrowings14,441 13,286 12,554 8,836 5,020 
Total interest expense42,008 39,512 34,800 27,658 15,889 
Net interest income39,160 40,180 42,371 44,783 48,531 
Provision for (reversal of) credit losses245 (306)451 1,671 670 
Net interest income after provision for (reversal of) credit losses38,915 40,486 41,920 43,112 47,861 
Non-interest income
Fees and service charges748 699 910 734 763 
Loss on sale and call of securities— — — (15,227)— 
Gain (loss) on sale of loans215 199 (2,373)134 395 
Loss on sale of other real estate owned— (139)— — — 
Income from bank owned life insurance1,666 1,605 1,581 1,761 3,698 
Electronic banking fees and charges367 399 457 397 506 
Other income1,014 903 1,071 3,723 555 
Total non-interest income4,010 3,666 1,646 (8,478)5,917 
Non-interest expense
Salaries and employee benefits17,761 17,315 18,005 19,921 20,348 
Net occupancy expense of premises2,758 2,862 3,097 2,987 3,090 
Equipment and systems3,801 3,511 3,537 3,867 3,662 
Advertising and marketing228 231 413 731 747 
Federal deposit insurance premium1,524 1,455 1,546 1,226 906 
Directors' compensation393 345 340 339 340 
Other expense3,309 3,042 3,414 3,579 2,895 
Total non-interest expense29,774 28,761 30,352 32,650 31,988 
Income before income taxes13,151 15,391 13,214 1,984 21,790 
Income taxes3,309 3,378 2,902 33 5,255 
Net income$9,842 $12,013 $10,312 $1,951 $16,535 
Net income per common share (EPS)
Basic$0.16 $0.19 $0.16 $0.03 $0.25 
Diluted$0.16 $0.19 $0.16 $0.03 $0.25 
Dividends declared
Cash dividends declared per common share$0.11 $0.11 $0.11 $0.11 $0.11 
Cash dividends declared$6,989 $7,007 $7,196 $7,172 $7,276 
Dividend payout ratio71.0 %58.3 %69.8 %367.6 %44.0 %
Weighted average number of common shares outstanding
Basic63,01463,66764,76965,03065,737
Diluted63,06163,66764,78365,03865,756
11

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)
Three Months Ended
(Dollars in Thousands)September 30,
2023		June 30,
2023		March 31,
2023		December 31,
2022		September 30,
2022
Assets
Interest-earning assets:
Loans receivable, including loans held-for-sale$5,788,074 $5,932,541 $5,986,669 $5,839,903 $5,553,996 
Taxable investment securities1,516,393 1,529,582 1,558,222 1,527,578 1,516,974 
Tax-exempt investment securities15,483 16,346 17,663 37,917 48,973 
Other interest-earning assets130,829 128,158 131,682 114,175 88,038 
Total interest-earning assets7,450,779 7,606,627 7,694,236 7,519,573 7,207,981 
Non-interest-earning assets568,723 556,962 575,009 550,519 570,225 
Total assets $8,019,502 $8,163,589 $8,269,245 $8,070,092 $7,778,206 
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand$2,245,831 $2,321,120 $2,363,762 $2,359,977 $2,354,340 
Savings 719,508 774,854 858,673 931,584 1,019,343 
Certificates of deposit1,968,512 2,057,818 2,069,396 2,192,722 2,014,922 
Total interest-bearing deposits4,933,851 5,153,792 5,291,831 5,484,283 5,388,605 
Borrowings:
Federal Home Loan Bank advances1,386,473 1,374,316 1,402,269 997,148 642,399 
Other borrowings158,098 100,055 1,611 — 127,456 
Total borrowings1,544,571 1,474,371 1,403,880 997,148 769,855 
Total interest-bearing liabilities6,478,422 6,628,163 6,695,711 6,481,431 6,158,460 
Non-interest-bearing liabilities:
Non-interest-bearing deposits612,251 608,765 634,324 666,846 667,624 
Other non-interest-bearing liabilities66,701 64,970 60,327 56,721 56,431 
Total non-interest-bearing liabilities678,952 673,735 694,651 723,567 724,055 
Total liabilities7,157,374 7,301,898 7,390,362 7,204,998 6,882,515 
Stockholders' equity862,128 861,691 878,883 865,094 895,691 
Total liabilities and stockholders' equity$8,019,502 $8,163,589 $8,269,245 $8,070,092 $7,778,206 
Average interest-earning assets to average
 interest-bearing liabilities
115.01 %114.76 %114.91 %116.02 %117.04 %
12

Kearny Financial Corp.
Performance Ratio Highlights
Three Months Ended
September 30,
2023		June 30,
2023		March 31,
2023		December 31,
2022		September 30,
2022
Average yield on interest-earning assets:
Loans receivable, including loans held-for-sale4.34 %4.18 %4.02 %3.97 %3.81 %
Taxable investment securities4.29 %4.12 %3.97 %3.46 %2.75 %
Tax-exempt investment securities (1)
2.25 %2.23 %2.23 %2.32 %2.33 %
Other interest-earning assets6.26 %5.68 %4.38 %3.52 %3.46 %
Total interest-earning assets4.36 %4.19 %4.01 %3.85 %3.57 %
Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand2.58 %2.38 %2.01 %1.63 %0.92 %
Savings 0.47 %0.48 %0.41 %0.41 %0.23 %
Certificates of deposit2.49 %2.24 %1.84 %1.50 %0.97 %
Total interest-bearing deposits2.23 %2.04 %1.68 %1.37 %0.81 %
Borrowings:
Federal Home Loan Bank advances3.54 %3.51 %3.58 %3.54 %2.68 %
Other borrowings5.46 %4.89 %5.15 %— %2.26 %
Total borrowings3.74 %3.60 %3.58 %3.54 %2.61 %
Total interest-bearing liabilities2.59 %2.38 %2.08 %1.71 %1.03 %
Interest rate spread (2)
1.77 %1.81 %1.93 %2.14 %2.54 %
Net interest margin (3)
2.10 %2.11 %2.20 %2.38 %2.69 %
Non-interest income to average assets (annualized)0.20 %0.18 %0.08 %-0.42 %0.30 %
Non-interest expense to average assets (annualized)1.49 %1.41 %1.47 %1.62 %1.65 %
Efficiency ratio (4)
68.97 %65.60 %68.96 %89.93 %58.75 %
Return on average assets (annualized)0.49 %0.59 %0.50 %0.10 %0.85 %
Return on average equity (annualized)4.57 %5.58 %4.69 %0.90 %7.38 %
Return on average tangible equity (annualized) (5)
6.07 %7.41 %6.20 %1.20 %9.70 %
_________________________
(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.
13

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)		September 30,
2023		June 30,
2023		March 31,
2023		December 31,
2022		September 30,
2022
Adjusted net income:
Net income (GAAP)$9,842 $12,013 $10,312 $1,951 $16,535 
Non-recurring transactions - net of tax:
Branch consolidation expenses— — 568 — — 
Net effect of sale and call of securities— — — 10,811 — 
Net effect of sale of other assets— — — (2,081)— 
Severance expense from workforce realignment— — — 538 — 
Adjusted net income$9,842 $12,013 $10,880 $11,219 $16,535 
Calculation of pre-tax, pre-provision net revenue:
Net income (GAAP)$9,842 $12,013 $10,312 $1,951 $16,535 
Adjustments to net income (GAAP):
Provision for income taxes3,309 3,378 2,902 33 5,255 
Provision for (reversal of) credit losses245 (306)451 1,671 670 
Pre-tax, pre-provision net revenue (non-GAAP)$13,396 $15,085 $13,665 $3,655 $22,460 
Adjusted earnings per share:
Weighted average common shares - basic63,01463,66764,76965,03065,737
Weighted average common shares - diluted63,06163,66764,78365,03865,756
Earnings per share - basic (GAAP)$0.16 $0.19 $0.16 $0.03 $0.25 
Earnings per share - diluted (GAAP)$0.16 $0.19 $0.16 $0.03 $0.25 
Adjusted earnings per share - basic (non-GAAP)$0.16 $0.19 $0.17 $0.17 $0.25 
Adjusted earnings per share - diluted (non-GAAP)$0.16 $0.19 $0.17 $0.17 $0.25 
Pre-tax, pre-provision net revenue per share:
Pre-tax, pre-provision net revenue per share - basic
  (non-GAAP)
$0.21 $0.24 $0.21 $0.06 $0.34 
Pre-tax, pre-provision net revenue per share - diluted
  (non-GAAP)
$0.21 $0.24 $0.21 $0.06 $0.34 
Adjusted return on average assets:
Total average assets$8,019,502 $8,163,589 $8,269,245 $8,070,092 $7,778,206 
Return on average assets (GAAP)0.49 %0.59 %0.50 %0.10 %0.85 %
Adjusted return on average assets (non-GAAP)0.49 %0.59 %0.53 %0.56 %0.85 %
Adjusted return on average equity:
Total average equity$862,128 $861,691 $878,883 $865,094 $895,691 
Return on average equity (GAAP)4.57 %5.58 %4.69 %0.90 %7.38 %
Adjusted return on average equity (non-GAAP)4.57 %5.58 %4.95 %5.19 %7.38 %
14

Kearny Financial Corp.
Reconciliation of GAAP to Non-GAAP
(Unaudited)
Three Months Ended
(Dollars and Shares in Thousands,
Except Per Share Data)		September 30,
2023		June 30,
2023		March 31,
2023		December 31,
2022		September 30,
2022
Adjusted return on average tangible equity:
Total average equity$862,128 $861,691 $878,883 $865,094 $895,691 
Less: average goodwill(210,895)(210,895)(210,895)(210,895)(210,895)
Less: average other intangible assets(2,411)(2,544)(2,683)(2,826)(2,971)
Total average tangible equity$648,822 $648,252 $665,305 $651,373 $681,825 
Return on average tangible equity (non-GAAP)6.07 %7.41 %6.20 %1.20 %9.70 %
Adjusted return on average tangible equity (non-GAAP)6.07 %7.41 %6.54 %6.89 %9.70 %
Adjusted non-interest expense ratio:
Non-interest expense (GAAP)$29,774 $28,761 $30,352 $32,650 $31,988 
Non-recurring transactions:
Branch consolidation expenses— — (800)— — 
Severance expense from workforce realignment— — — (757)— 
Early contract termination— — — — — 
Non-interest expense (non-GAAP)$29,774 $28,761 $29,552 $31,893 $31,988 
Non-interest expense ratio (GAAP)1.49 %1.41 %1.47 %1.62 %1.65 %
Adjusted non-interest expense ratio (non-GAAP)1.49 %1.41 %1.43 %1.58 %1.65 %
Adjusted efficiency ratio:
Non-interest expense (non-GAAP)$29,774 $28,761 $29,552 $31,893 $31,988 
Net interest income (GAAP)$39,160 $40,180 $42,371 $44,783 $48,531 
Total non-interest income (GAAP)4,010 3,666 1,646 (8,478)5,917 
Non-recurring transactions:
Net effect of sale and call of securities— — — 15,227 — 
Net effect of sale of other assets— — — (2,931)— 
Total revenue (non-GAAP)$43,170 $43,846 $44,017 $48,601 $54,448 
Efficiency ratio (GAAP)68.97 %65.60 %68.96 %89.93 %58.75 %
Adjusted efficiency ratio (non-GAAP)68.97 %65.60 %67.14 %65.62 %58.75 %

15