EX-99.1 2 krny-20250424xexx991.htm EX-99.1
Exhibit 99.1
FOR IMMEDIATE RELEASE
April 24, 2025
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 2025 RESULTS
AND DECLARATION OF CASH DIVIDEND
Fairfield, N.J., April 24, 2025 – 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, 2025 of $6.6 million, or $0.11 per diluted share, compared to $6.6 million, or $0.10 per diluted share, for the quarter ended December 31, 2024.
The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on May 21, 2025, to stockholders of record as of May 7, 2025.
Craig L. Montanaro, President and Chief Executive Officer, commented, “Quarter over quarter net interest income grew by $1.4 million, resulting in eight basis points of net interest margin expansion. Contributing to this expansion was growth in net loans and deposits, coupled with a 24 basis point decrease in our cost of funds. We anticipate continued strong margin expansion into the June quarter, the final of our 2025 fiscal year.”
Mr. Montanaro continued, “Despite recent fluctuations in US Treasury rates and broader market indices, our core business continues to perform exceedingly well and we are confident in our ability to sustain and enhance our performance in spite of the volatile environment.”
Balance Sheet
•Total assets were $7.73 billion at March 31, 2025, a increase of $1.8 million from December 31, 2024.
•Investment securities totaled $1.13 billion at March 31, 2025, a decrease of $17.3 million, or 1.5%, from December 31, 2024.
•Loans receivable totaled $5.85 billion at March 31, 2025, an increase of $54.4 million, or 0.9%, from December 31, 2024, primarily reflecting growth in non-residential mortgage loans.
•Deposits were $5.71 billion at March 31, 2025, an increase of $36.3 million, or 0.6%, from December 31, 2024. This increase was primarily driven by increases in interest bearing demand deposits and consumer savings deposits, partially offset by a decrease in non-interest bearing demand deposits. The decrease in non-interest bearing deposits was primarily attributable to a $29.3 million outflow from a single depositor who used the funds to finance the construction of a building. Excluding this single account, non-interest bearing deposits increased $14.9 million, or 2.5%.
•Borrowings were $1.21 billion at March 31, 2025, a decrease of $45.0 million, or 3.6%, from December 31, 2024, reflecting reductions in Federal Home Loan Bank (“FHLB”) overnight borrowings.
•At March 31, 2025, the Company maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.42 billion, representing 31.3% of total assets.
1

Earnings
Net Interest Income and Net Interest Margin
•Net interest margin expanded eight basis points from the quarter ended December 31, 2024 to 1.90% for the quarter ended March 31, 2025. The increase for the quarter was driven by the paydown of borrowings resulting from growth in lower cost deposits and broad based decreases in deposit rates, partially offset by reduced yields on interest-earning assets.
•For the quarter ended March 31, 2025, net interest income increased $1.4 million to $34.0 million from $32.6 million for the quarter ended December 31, 2024. Included in net interest income for the quarters ended March 31, 2025 and December 31, 2024, respectively, was purchase accounting accretion of $511,000 and $685,000, and loan prepayment penalty income of $226,000 and $288,000.
Non-Interest Income
•For the quarter ended March 31, 2025, non-interest income decreased $311,000, or 6.4%, to $4.6 million from $4.9 million for the quarter ended December 31, 2024, primarily driven by decreases in gain on sale of loans and electronic banking fees and charges.
•Gain on sale of loans decreased $192,000 to $112,000 for the quarter ended March 31, 2025 from $304,000 for the quarter ended December 31, 2024. The decrease largely reflected a seasonal decrease in the volume of residential mortgage loans sold during the period.
•Electronic banking fees and charges decreased $102,000 to $391,000 for the quarter March 31, 2025 from $493,000 for the quarter ended December 31, 2024. The decrease largely reflected the absence of a non-recurring increase recorded in the prior period.
Non-Interest Expense
•For the quarter ended March 31, 2025, non-interest expense increased $829,000, or 2.8%, to $30.4 million from $29.6 million for the quarter ended December 31, 2024, primarily driven by increases in salary and benefits, net occupancy, advertising, and other expense.
•Salary and benefits expense increased $121,000 to $17.7 million primarily driven by an increase of $546,000 in payroll taxes and employee benefits associated with the start of a new calendar year, partially offset by a $427,000 non-recurring decrease in stock-based compensation.
•Net occupancy expense of premises increased $244,000 to $3.1 million primarily driven by seasonally higher snow removal expenses, partially offset by a decrease in repairs and other maintenance expenses.
•Advertising and marketing expense increased $298,000 to $609,000. This increase was primarily due to higher advertising expenses across various formats, driven by marketing campaigns supporting our loan and deposit growth initiatives.
•Other expense increased $225,000 primarily driven by a $37,000 provision for credit losses related to off balance sheet commitments compared to a reversal for credit losses on off balance sheet commitments of $116,000 recorded in the prior comparative period. The remaining changes in the other components of non-interest expense between comparative periods generally reflected normal operating fluctuations within those line items.
Income Taxes
•Income tax expense totaled $1.2 million for the quarter ended March 31, 2025 compared to $1.3 million for the quarter ended December 31, 2024, resulting in an effective tax rate of 15.3% and 16.0%, respectively.
2

Asset Quality
•The balance of non-performing assets remained steady at $37.7 million, or 0.49% of total assets, at March 31, 2025 and December 31, 2024, respectively.
•Net charge-offs totaled $368,000, or 0.03% of average loans, on an annualized basis, for the quarter ended March 31, 2025, compared to $573,000, or 0.04% of average loans, on an annualized basis, for the quarter ended December 31, 2024.
•For the quarter ended March 31, 2025, the Company recorded a provision for credit losses of $366,000, compared to $107,000 for the quarter ended December 31, 2024. The provision for credit loss expense for the quarter ended March 31, 2025 was primarily driven by the charge-offs described above.
•The ACL was $44.5 million, or 0.76% of total loans, at March 31, 2025, a decrease of $2,000 from $44.5 million, or 0.77% of total loans, at December 31, 2024.
Capital
•For the quarter ended March 31, 2025, book value per share increased $0.05, or 0.4%, to $11.58 while tangible book value per share increased $0.05, or 0.5%, to $9.80.
•At March 31, 2025, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $80.1 million, partially offset by after-tax unrealized gains on derivatives of $10.7 million. After-tax net unrecognized losses on securities held to maturity of $9.9 million were not reflected in total stockholders’ equity.
•At March 31, 2025, the Company’s tangible equity to tangible assets ratio equaled 8.31% 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 Q3 2025 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
(Unaudited)

(Dollars and Shares in Thousands, Except Per Share Data) | March 31, 2025 | December 31, 2024 | Variance or Change | Variance or Change Pct.
Assets |  |  |  |
Cash and cash equivalents | $ | 126,095 |  | $ | 141,554 |  | $ | (15,459) |  | -10.9 | %
Securities available for sale | 1,003,393 |  | 1,018,279 |  | (14,886) |  | -1.5 | %
Securities held to maturity | 124,859 |  | 127,266 |  | (2,407) |  | -1.9 | %
Loans held-for-sale | 6,187 |  | 5,695 |  | 492 |  | 8.6 | %
Loans receivable | 5,846,175 |  | 5,791,758 |  | 54,417 |  | 0.9 | %
Less: allowance for credit losses on loans | (44,455) |  | (44,457) |  | (2) |  | -0.0 | %
Net loans receivable | 5,801,720 |  | 5,747,301 |  | 54,419 |  | 0.9 | %
Premises and equipment | 44,192 |  | 45,127 |  | (935) |  | -2.1 | %
Federal Home Loan Bank stock | 62,261 |  | 64,443 |  | (2,182) |  | -3.4 | %
Accrued interest receivable | 28,521 |  | 27,772 |  | 749 |  | 2.7 | %
Goodwill | 113,525 |  | 113,525 |  | — |  | — | %
Core deposit intangible | 1,554 |  | 1,679 |  | (125) |  | -7.4 | %
Bank owned life insurance | 303,629 |  | 301,339 |  | 2,290 |  | 0.8 | %
Deferred income taxes, net | 52,913 |  | 53,325 |  | (412) |  | -0.8 | %
Other assets | 64,292 |  | 84,080 |  | (19,788) |  | -23.5 | %
Total assets | $ | 7,733,141 |  | $ | 7,731,385 |  | $ | 1,756 |  | 0.0 | %
Liabilities |  |  |  |
Deposits: |  |  |  |
Non-interest-bearing | $ | 587,118 |  | $ | 601,510 |  | $ | (14,392) |  | -2.4 | %
Interest-bearing | 5,120,230 |  | 5,069,550 |  | 50,680 |  | 1.0 | %
Total deposits | 5,707,348 |  | 5,671,060 |  | 36,288 |  | 0.6 | %
Borrowings | 1,213,976 |  | 1,258,949 |  | (44,973) |  | -3.6 | %
Advance payments by borrowers for taxes | 19,981 |  | 17,986 |  | 1,995 |  | 11.1 | %
Other liabilities | 43,723 |  | 38,537 |  | 5,186 |  | 13.5 | %
Total liabilities | 6,985,028 |  | 6,986,532 |  | (1,504) |  | -0.0 | %
Stockholders' Equity |  |  |  |
Common stock | 646 |  | 646 |  | — |  | — | %
Paid-in capital | 494,131 |  | 494,092 |  | 39 |  | 0.0 | %
Retained earnings | 341,921 |  | 342,155 |  | (234) |  | -0.1 | %
Unearned ESOP shares | (19,457) |  | (19,943) |  | 486 |  | 2.4 | %
Accumulated other comprehensive loss | (69,128) |  | (72,097) |  | 2,969 |  | 4.1 | %
Total stockholders' equity | 748,113 |  | 744,853 |  | 3,260 |  | 0.4 | %
Total liabilities and stockholders' equity | $ | 7,733,141 |  | $ | 7,731,385 |  | $ | 1,756 |  | 0.0 | %
Consolidated capital ratios |  |  |  |
Equity to assets | 9.67 | % | 9.63 | % | 0.04 | % |
Tangible equity to tangible assets (1) | 8.31 | % | 8.27 | % | 0.04 | % |
Share data |  |  |  |
Outstanding shares | 64,580 | 64,580 | — | — | %
Book value per share | $ | 11.58 |  | $ | 11.53 |  | $ | 0.05 |  | 0.4 | %
Tangible book value per share (2) | $ | 9.80 |  | $ | 9.75 |  | $ | 0.05 |  | 0.5 | %

_________________________
(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 Ended | Variance or Change | Variance or Change Pct. |
March 31, 2025 | December 31, 2024 |
Interest income |  |  |  |  |
Loans | $ | 64,768 |  | $ | 65,408 |  | $ | (640) |  | -1.0 | % |
Taxable investment securities | 12,738 |  | 13,803 |  | (1,065) |  | -7.7 | % |
Tax-exempt investment securities | 55 |  | 59 |  | (4) |  | -6.8 | % |
Other interest-earning assets | 1,773 |  | 2,215 |  | (442) |  | -20.0 | % |
Total interest income | 79,334 |  | 81,485 |  | (2,151) |  | -2.6 | % |
Interest expense |  |  |  |  |
Deposits | 34,912 |  | 36,721 |  | (1,809) |  | -4.9 | % |
Borrowings | 10,380 |  | 12,152 |  | (1,772) |  | -14.6 | % |
Total interest expense | 45,292 |  | 48,873 |  | (3,581) |  | -7.3 | % |
Net interest income | 34,042 |  | 32,612 |  | 1,430 |  | 4.4 | % |
Provision for credit losses | 366 |  | 107 |  | 259 |  | 242.1 | % |
Net interest income after provision for credit losses | 33,676 |  | 32,505 |  | 1,171 |  | 3.6 | % |
Non-interest income |  |  |  |  |
Fees and service charges | 573 |  | 627 |  | (54) |  | -8.6 | % |
Gain on sale of loans | 112 |  | 304 |  | (192) |  | -63.2 | % |
Income from bank owned life insurance | 2,617 |  | 2,619 |  | (2) |  | -0.1 | % |
Electronic banking fees and charges | 391 |  | 493 |  | (102) |  | -20.7 | % |
Other income | 869 |  | 830 |  | 39 |  | 4.7 | % |
Total non-interest income | 4,562 |  | 4,873 |  | (311) |  | -6.4 | % |
Non-interest expense |  |  |  |  |
Salaries and employee benefits | 17,700 |  | 17,579 |  | 121 |  | 0.7 | % |
Net occupancy expense of premises | 3,075 |  | 2,831 |  | 244 |  | 8.6 | % |
Equipment and systems | 3,921 |  | 3,892 |  | 29 |  | 0.7 | % |
Advertising and marketing | 609 |  | 311 |  | 298 |  | 95.8 | % |
Federal deposit insurance premium | 1,450 |  | 1,503 |  | (53) |  | -3.5 | % |
Directors' compensation | 326 |  | 361 |  | (35) |  | -9.7 | % |
Other expense | 3,309 |  | 3,084 |  | 225 |  | 7.3 | % |
Total non-interest expense | 30,390 |  | 29,561 |  | 829 |  | 2.8 | % |
Income before income taxes | 7,848 |  | 7,817 |  | 31 |  | 0.4 | % |
Income taxes | 1,200 |  | 1,251 |  | (51) |  | -4.1 | % |
Net income | $ | 6,648 |  | $ | 6,566 |  | $ | 82 |  | 1.2 | % |
Net income per common share (EPS) |  |  |  |  |
Basic | $ | 0.11 |  | $ | 0.11 |  | $ | — |  |  |
Diluted | $ | 0.11 |  | $ | 0.10 |  | $ | 0.01 |  |  |
Dividends declared |  |  |  |  |
Cash dividends declared per common share | $ | 0.11 |  | $ | 0.11 |  | $ | — |  |  |
Cash dividends declared | $ | 6,933 |  | $ | 6,933 |  | $ | — |  |  |
Dividend payout ratio | 104.3 | % | 105.6 | % | -1.3 | % |  |
Weighted average number of common shares outstanding |  |  |  |  |
Basic | 62,548 | 62,443 | 105 |  |
Diluted | 62,713 | 62,576 | 137 |  |

5

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)

(Dollars in Thousands) | Three Months Ended | Variance or Change | Variance or Change Pct.
March 31, 2025 | December 31, 2024
Assets |  |  |  |
Interest-earning assets: |  |  |  |
Loans receivable, including loans held for sale | $ | 5,805,045 |  | $ | 5,762,053 |  | $ | 42,992 |  | 0.7 | %
Taxable investment securities | 1,251,612 |  | 1,285,800 |  | (34,188) |  | -2.7 | %
Tax-exempt investment securities | 9,135 |  | 9,711 |  | (576) |  | -5.9 | %
Other interest-earning assets | 110,736 |  | 116,354 |  | (5,618) |  | -4.8 | %
Total interest-earning assets | 7,176,528 |  | 7,173,918 |  | 2,610 |  | 0.0 | %
Non-interest-earning assets | 457,206 |  | 459,982 |  | (2,776) |  | -0.6 | %
Total assets | $ | 7,633,734 |  | $ | 7,633,900 |  | $ | (166) |  | -0.0 | %
Liabilities and Stockholders' Equity |  |  |  |
Interest-bearing liabilities: |  |  |  |
Deposits: |  |  |  |
Interest-bearing demand | $ | 2,405,974 |  | $ | 2,314,378 |  | $ | 91,596 |  | 4.0 | %
Savings | 751,243 |  | 711,801 |  | 39,442 |  | 5.5 | %
Certificates of deposit (retail) | 1,215,767 |  | 1,216,948 |  | (1,181) |  | -0.1 | %
Certificates of deposit (brokered) | 730,612 |  | 730,773 |  | (161) |  | -0.0 | %
Total interest-bearing deposits | 5,103,596 |  | 4,973,900 |  | 129,696 |  | 2.6 | %
Borrowings: |  |  |  |
Federal Home Loan Bank advances | 1,028,958 |  | 1,085,455 |  | (56,497) |  | -5.2 | %
Other borrowings | 93,389 |  | 156,522 |  | (63,133) |  | -40.3 | %
Total borrowings | 1,122,347 |  | 1,241,977 |  | (119,630) |  | -9.6 | %
Total interest-bearing liabilities | 6,225,943 |  | 6,215,877 |  | 10,066 |  | 0.2 | %
Non-interest-bearing liabilities: |  |  |  |
Non-interest-bearing deposits | 602,647 |  | 604,915 |  | (2,268) |  | -0.4 | %
Other non-interest-bearing liabilities | 59,919 |  | 65,258 |  | (5,339) |  | -8.2 | %
Total non-interest-bearing liabilities | 662,566 |  | 670,173 |  | (7,607) |  | -1.1 | %
Total liabilities | 6,888,509 |  | 6,886,050 |  | 2,459 |  | 0.0 | %
Stockholders' equity | 745,225 |  | 747,850 |  | (2,625) |  | -0.4 | %
Total liabilities and stockholders' equity | $ | 7,633,734 |  | $ | 7,633,900 |  | $ | (166) |  | -0.0 | %
Average interest-earning assets to average interest-bearing liabilities | 115.27 | % | 115.41 | % | -0.14 | % | -0.1 | %

6

Kearny Financial Corp.
Performance Ratio Highlights
(Unaudited)

| Three Months Ended | Variance or Change
| March 31, 2025 | December 31, 2024
Average yield on interest-earning assets: |  |  |
Loans receivable, including loans held for sale | 4.46 | % | 4.54 | % | -0.08 | %
Taxable investment securities | 4.07 | % | 4.29 | % | -0.22 | %
Tax-exempt investment securities (1) | 2.43 | % | 2.42 | % | 0.01 | %
Other interest-earning assets | 6.40 | % | 7.62 | % | -1.22 | %
Total interest-earning assets | 4.42 | % | 4.54 | % | -0.12 | %
Average cost of interest-bearing liabilities: |  |  |
Deposits: |  |  |
Interest-bearing demand | 2.73 | % | 2.96 | % | -0.23 | %
Savings | 1.30 | % | 1.29 | % | 0.01 | %
Certificates of deposit (retail) | 3.73 | % | 4.06 | % | -0.33 | %
Certificates of deposit (brokered) | 2.58 | % | 2.70 | % | -0.12 | %
Total interest-bearing deposits | 2.74 | % | 2.95 | % | -0.21 | %
Borrowings: |  |  |
Federal Home Loan Bank advances | 3.63 | % | 3.78 | % | -0.15 | %
Other borrowings | 4.41 | % | 4.88 | % | -0.47 | %
Total borrowings | 3.70 | % | 3.91 | % | -0.21 | %
Total interest-bearing liabilities | 2.91 | % | 3.15 | % | -0.24 | %
Interest rate spread (2) | 1.51 | % | 1.39 | % | 0.12 | %
Net interest margin (3) | 1.90 | % | 1.82 | % | 0.08 | %
Non-interest income to average assets (annualized) | 0.24 | % | 0.26 | % | -0.02 | %
Non-interest expense to average assets (annualized) | 1.59 | % | 1.55 | % | 0.04 | %
Efficiency ratio (4) | 78.72 | % | 78.86 | % | -0.14 | %
Return on average assets (annualized) | 0.35 | % | 0.34 | % | 0.01 | %
Return on average equity (annualized) | 3.57 | % | 3.51 | % | 0.06 | %
Return on average tangible equity (annualized) (5) | 4.28 | % | 4.21 | % | 0.07 | %

_________________________
(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) | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024
| (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | (Unaudited)
Assets |  |  |  |  |
Cash and cash equivalents | $ | 126,095 |  | $ | 141,554 |  | $ | 155,574 |  | $ | 63,864 |  | $ | 71,027 |
Securities available for sale | 1,003,393 |  | 1,018,279 |  | 1,070,811 |  | 1,072,833 |  | 1,098,655 |
Securities held to maturity | 124,859 |  | 127,266 |  | 132,256 |  | 135,742 |  | 139,643 |
Loans held-for-sale | 6,187 |  | 5,695 |  | 8,866 |  | 6,036 |  | 4,117 |
Loans receivable | 5,846,175 |  | 5,791,758 |  | 5,784,246 |  | 5,732,787 |  | 5,758,336 |
Less: allowance for credit losses on loans | (44,455) |  | (44,457) |  | (44,923) |  | (44,939) |  | (44,930) |
Net loans receivable | 5,801,720 |  | 5,747,301 |  | 5,739,323 |  | 5,687,848 |  | 5,713,406 |
Premises and equipment | 44,192 |  | 45,127 |  | 45,189 |  | 44,940 |  | 45,053 |
Federal Home Loan Bank stock | 62,261 |  | 64,443 |  | 57,706 |  | 80,300 |  | 81,347 |
Accrued interest receivable | 28,521 |  | 27,772 |  | 29,467 |  | 29,521 |  | 31,065 |
Goodwill | 113,525 |  | 113,525 |  | 113,525 |  | 113,525 |  | 210,895 |
Core deposit intangible | 1,554 |  | 1,679 |  | 1,805 |  | 1,931 |  | 2,057 |
Bank owned life insurance | 303,629 |  | 301,339 |  | 300,186 |  | 297,874 |  | 296,493 |
Deferred income taxes, net | 52,913 |  | 53,325 |  | 50,131 |  | 50,339 |  | 47,225 |
Other assets | 64,292 |  | 84,080 |  | 67,540 |  | 98,708 |  | 100,989 |
Total assets | $ | 7,733,141 |  | $ | 7,731,385 |  | $ | 7,772,379 |  | $ | 7,683,461 |  | $ | 7,841,972 |
Liabilities |  |  |  |  |
Deposits: |  |  |  |  |
Non-interest-bearing | $ | 587,118 |  | $ | 601,510 |  | $ | 592,099 |  | $ | 598,366 |  | $ | 586,089 |
Interest-bearing | 5,120,230 |  | 5,069,550 |  | 4,878,413 |  | 4,559,757 |  | 4,622,961 |
Total deposits | 5,707,348 |  | 5,671,060 |  | 5,470,512 |  | 5,158,123 |  | 5,209,050 |
Borrowings | 1,213,976 |  | 1,258,949 |  | 1,479,888 |  | 1,709,789 |  | 1,722,178 |
Advance payments by borrowers for taxes | 19,981 |  | 17,986 |  | 17,824 |  | 17,409 |  | 17,387 |
Other liabilities | 43,723 |  | 38,537 |  | 52,618 |  | 44,569 |  | 44,279 |
Total liabilities | 6,985,028 |  | 6,986,532 |  | 7,020,842 |  | 6,929,890 |  | 6,992,894 |
Stockholders' Equity |  |  |  |  |
Common stock | 646 |  | 646 |  | 646 |  | 644 |  | 644 |
Paid-in capital | 494,131 |  | 494,092 |  | 493,523 |  | 493,680 |  | 493,187 |
Retained earnings | 341,921 |  | 342,155 |  | 342,522 |  | 343,326 |  | 440,308 |
Unearned ESOP shares | (19,457) |  | (19,943) |  | (20,430) |  | (20,916) |  | (21,402) |
Accumulated other comprehensive loss | (69,128) |  | (72,097) |  | (64,724) |  | (63,163) |  | (63,659) |
Total stockholders' equity | 748,113 |  | 744,853 |  | 751,537 |  | 753,571 |  | 849,078 |
Total liabilities and stockholders' equity | $ | 7,733,141 |  | $ | 7,731,385 |  | $ | 7,772,379 |  | $ | 7,683,461 |  | $ | 7,841,972 |
Consolidated capital ratios |  |  |  |  |
Equity to assets | 9.67 | % | 9.63 | % | 9.67 | % | 9.81 | % | 10.83 | %
Tangible equity to tangible assets (1) | 8.31 | % | 8.27 | % | 8.31 | % | 8.43 | % | 8.34 | %
Share data |  |  |  |  |
Outstanding shares | 64,580 | 64,580 | 64,580 | 64,434 | 64,437
Book value per share | $ | 11.58 |  | $ | 11.53 |  | $ | 11.64 |  | $ | 11.70 |  | $ | 13.18 |
Tangible book value per share (2) | $ | 9.80 |  | $ | 9.75 |  | $ | 9.85 |  | $ | 9.90 |  | $ | 9.87 |

_________________________
(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) | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024
Loan portfolio composition: |  |  |  |  |
Commercial loans: |  |  |  |  |
Multi-family mortgage | $ | 2,733,406 |  | $ | 2,722,623 |  | $ | 2,646,187 |  | $ | 2,645,851 |  | $ | 2,645,195 |
Nonresidential mortgage | 988,074 |  | 950,194 |  | 950,771 |  | 948,075 |  | 965,539 |
Commercial business | 140,224 |  | 135,740 |  | 145,984 |  | 142,747 |  | 147,326 |
Construction | 174,722 |  | 176,704 |  | 227,327 |  | 209,237 |  | 229,457 |
Total commercial loans | 4,036,426 |  | 3,985,261 |  | 3,970,269 |  | 3,945,910 |  | 3,987,517 |
One- to four-family residential mortgage | 1,761,465 |  | 1,765,160 |  | 1,768,230 |  | 1,756,051 |  | 1,741,644 |
Consumer loans: |  |  |  |  |
Home equity loans | 49,699 |  | 47,101 |  | 44,741 |  | 44,104 |  | 42,731 |
Other consumer | 2,859 |  | 2,778 |  | 2,965 |  | 2,685 |  | 3,198 |
Total consumer loans | 52,558 |  | 49,879 |  | 47,706 |  | 46,789 |  | 45,929 |
Total loans, excluding yield adjustments | 5,850,449 |  | 5,800,300 |  | 5,786,205 |  | 5,748,750 |  | 5,775,090 |
Unaccreted yield adjustments | (4,274) |  | (8,542) |  | (1,959) |  | (15,963) |  | (16,754) |
Loans receivable, net of yield adjustments | 5,846,175 |  | 5,791,758 |  | 5,784,246 |  | 5,732,787 |  | 5,758,336 |
Less: allowance for credit losses on loans | (44,455) |  | (44,457) |  | (44,923) |  | (44,939) |  | (44,930) |
Net loans receivable | $ | 5,801,720 |  | $ | 5,747,301 |  | $ | 5,739,323 |  | $ | 5,687,848 |  | $ | 5,713,406 |
Asset quality: |  |  |  |  |
Nonperforming assets: |  |  |  |  |
Accruing loans - 90 days and over past due | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
Nonaccrual loans | 37,683 |  | 37,697 |  | 39,854 |  | 39,882 |  | 39,546 |
Total nonperforming loans | 37,683 |  | 37,697 |  | 39,854 |  | 39,882 |  | 39,546 |
Nonaccrual loans held-for-sale | — |  | — |  | — |  | — |  | — |
Other real estate owned | — |  | — |  | — |  | — |  | — |
Total nonperforming assets | $ | 37,683 |  | $ | 37,697 |  | $ | 39,854 |  | $ | 39,882 |  | $ | 39,546 |
Nonperforming loans (% total loans) | 0.64 | % | 0.65 | % | 0.69 | % | 0.70 | % | 0.69 | %
Nonperforming assets (% total assets) | 0.49 | % | 0.49 | % | 0.51 | % | 0.52 | % | 0.50 | %
Classified loans | $ | 125,790 |  | $ | 132,216 |  | $ | 119,534 |  | $ | 118,700 |  | $ | 115,772 |
Allowance for credit losses on loans (ACL): |  |  |  |  |
ACL to total loans | 0.76 | % | 0.77 | % | 0.78 | % | 0.78 | % | 0.78 | %
ACL to nonperforming loans | 117.97 | % | 117.93 | % | 112.72 | % | 112.68 | % | 113.61 | %
Net charge-offs | $ | 368 |  | $ | 573 |  | $ | 124 |  | $ | 3,518 |  | $ | 286 |
Average net charge-off rate (annualized) | 0.03 | % | 0.04 | % | 0.01 | % | 0.25 | % | 0.02 | %

9

Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)

(Dollars in Thousands) | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024
Funding composition: |  |  |  |  |
Deposits: |  |  |  |  |
Non-interest-bearing deposits | $ | 587,118 |  | $ | 601,510 |  | $ | 592,099 |  | $ | 598,367 |  | $ | 586,089 |
Interest-bearing demand | 2,410,925 |  | 2,380,408 |  | 2,247,685 |  | 2,308,915 |  | 2,349,032 |
Savings | 758,239 |  | 742,266 |  | 681,709 |  | 643,481 |  | 630,456 |
Certificates of deposit (retail) | 1,218,479 |  | 1,213,887 |  | 1,215,746 |  | 1,199,127 |  | 1,235,261 |
Certificates of deposit (brokered) | 732,587 |  | 732,989 |  | 733,273 |  | 408,234 |  | 408,212 |
Interest-bearing deposits | 5,120,230 |  | 5,069,550 |  | 4,878,413 |  | 4,559,757 |  | 4,622,961 |
Total deposits | 5,707,348 |  | 5,671,060 |  | 5,470,512 |  | 5,158,124 |  | 5,209,050 |
Borrowings: |  |  |  |  |
Federal Home Loan Bank advances | 1,028,976 |  | 1,028,949 |  | 1,209,888 |  | 1,534,789 |  | 1,457,178 |
Overnight borrowings | 185,000 |  | 230,000 |  | 270,000 |  | 175,000 |  | 265,000 |
Total borrowings | 1,213,976 |  | 1,258,949 |  | 1,479,888 |  | 1,709,789 |  | 1,722,178 |
Total funding | $ | 6,921,324 |  | $ | 6,930,009 |  | $ | 6,950,400 |  | $ | 6,867,913 |  | $ | 6,931,228 |
Loans as a % of deposits | 101.8 | % | 101.4 | % | 105.1 | % | 110.4 | % | 109.8 | %
Deposits as a % of total funding | 82.5 | % | 81.8 | % | 78.7 | % | 75.1 | % | 75.2 | %
Borrowings as a % of total funding | 17.5 | % | 18.2 | % | 21.3 | % | 24.9 | % | 24.8 | %
Uninsured deposits: |  |  |  |  |
Uninsured deposits (reported) (1) | $ | 1,959,070 |  | $ | 1,935,607 |  | $ | 1,799,726 |  | $ | 1,772,623 |  | $ | 1,760,740 |
Uninsured deposits (adjusted) (2) | $ | 799,238 |  | $ | 797,721 |  | $ | 773,375 |  | $ | 764,447 |  | $ | 718,026 |

_________________________
(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 (Loss)
(Unaudited)

| Three Months Ended
(Dollars and Shares in Thousands, Except Per Share Data) | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024
Interest income |  |  |  |  |
Loans | $ | 64,768 |  | $ | 65,408 |  | $ | 66,331 |  | $ | 65,819 |  | $ | 64,035 |
Taxable investment securities | 12,738 |  | 13,803 |  | 14,384 |  | 14,802 |  | 15,490 |
Tax-exempt investment securities | 55 |  | 59 |  | 71 |  | 80 |  | 85 |
Other interest-earning assets | 1,773 |  | 2,215 |  | 2,466 |  | 2,289 |  | 2,475 |
Total interest income | 79,334 |  | 81,485 |  | 83,252 |  | 82,990 |  | 82,085 |
Interest expense |  |  |  |  |
Deposits | 34,912 |  | 36,721 |  | 35,018 |  | 32,187 |  | 32,320 |
Borrowings | 10,380 |  | 12,152 |  | 15,788 |  | 17,527 |  | 15,446 |
Total interest expense | 45,292 |  | 48,873 |  | 50,806 |  | 49,714 |  | 47,766 |
Net interest income | 34,042 |  | 32,612 |  | 32,446 |  | 33,276 |  | 34,319 |
Provision for credit losses | 366 |  | 107 |  | 108 |  | 3,527 |  | 349 |
Net interest income after provision for credit losses | 33,676 |  | 32,505 |  | 32,338 |  | 29,749 |  | 33,970 |
Non-interest income |  |  |  |  |
Fees and service charges | 573 |  | 627 |  | 635 |  | 580 |  | 657 |
Gain (loss) on sale of loans | 112 |  | 304 |  | 200 |  | 111 |  | (712) |
Income from bank owned life insurance | 2,617 |  | 2,619 |  | 2,567 |  | 3,209 |  | 3,039 |
Electronic banking fees and charges | 391 |  | 493 |  | 391 |  | 1,130 |  | 464 |
Other income | 869 |  | 830 |  | 833 |  | 776 |  | 755 |
Total non-interest income | 4,562 |  | 4,873 |  | 4,626 |  | 5,806 |  | 4,203 |
Non-interest expense |  |  |  |  |
Salaries and employee benefits | 17,700 |  | 17,579 |  | 17,498 |  | 17,266 |  | 16,911 |
Net occupancy expense of premises | 3,075 |  | 2,831 |  | 2,798 |  | 2,738 |  | 2,863 |
Equipment and systems | 3,921 |  | 3,892 |  | 3,860 |  | 3,785 |  | 3,823 |
Advertising and marketing | 609 |  | 311 |  | 342 |  | 480 |  | 387 |
Federal deposit insurance premium | 1,450 |  | 1,503 |  | 1,563 |  | 1,532 |  | 1,429 |
Directors' compensation | 326 |  | 361 |  | 361 |  | 360 |  | 360 |
Goodwill impairment | — |  | — |  | — |  | 97,370 |  | — |
Other expense | 3,309 |  | 3,084 |  | 3,364 |  | 3,020 |  | 3,286 |
Total non-interest expense | 30,390 |  | 29,561 |  | 29,786 |  | 126,551 |  | 29,059 |
Income (loss) before income taxes | 7,848 |  | 7,817 |  | 7,178 |  | (90,996) |  | 9,114 |
Income taxes | 1,200 |  | 1,251 |  | 1,086 |  | (917) |  | 1,717 |
Net income (loss) | $ | 6,648 |  | $ | 6,566 |  | $ | 6,092 |  | $ | (90,079) |  | $ | 7,397 |
Net income (loss) per common share (EPS) |  |  |  |  |
Basic | $ | 0.11 |  | $ | 0.11 |  | $ | 0.10 |  | $ | (1.45) |  | $ | 0.12 |
Diluted | $ | 0.11 |  | $ | 0.10 |  | $ | 0.10 |  | $ | (1.45) |  | $ | 0.12 |
Dividends declared |  |  |  |  |
Cash dividends declared per common share | $ | 0.11 |  | $ | 0.11 |  | $ | 0.11 |  | $ | 0.11 |  | $ | 0.11 |
Cash dividends declared | $ | 6,933 |  | $ | 6,933 |  | $ | 6,896 |  | $ | 6,903 |  | $ | 6,844 |
Dividend payout ratio | 104.3 | % | 105.6 | % | 113.2 | % | -7.7 | % | 92.5 | %
Weighted average number of common shares outstanding |  |  |  |  |
Basic | 62,548 | 62,443 | 62,389 | 62,254 | 62,205
Diluted | 62,713 | 62,576 | 62,420 | 62,330 | 62,211

11

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)

| Three Months Ended
(Dollars in Thousands) | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024
Assets |  |  |  |  |
Interest-earning assets: |  |  |  |  |
Loans receivable, including loans held-for-sale | $ | 5,805,045 |  | $ | 5,762,053 |  | $ | 5,761,593 |  | $ | 5,743,008 |  | $ | 5,752,477 |
Taxable investment securities | 1,251,612 |  | 1,285,800 |  | 1,314,945 |  | 1,343,541 |  | 1,382,064 |
Tax-exempt investment securities | 9,135 |  | 9,711 |  | 12,244 |  | 13,737 |  | 14,614 |
Other interest-earning assets | 110,736 |  | 116,354 |  | 131,981 |  | 128,257 |  | 125,155 |
Total interest-earning assets | 7,176,528 |  | 7,173,918 |  | 7,220,763 |  | 7,228,543 |  | 7,274,310 |
Non-interest-earning assets | 457,206 |  | 459,982 |  | 467,670 |  | 466,537 |  | 577,411 |
Total assets | $ | 7,633,734 |  | $ | 7,633,900 |  | $ | 7,688,433 |  | $ | 7,695,080 |  | $ | 7,851,721 |
Liabilities and Stockholders' Equity |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |
Deposits: |  |  |  |  |
Interest-bearing demand | $ | 2,405,974 |  | $ | 2,314,378 |  | $ | 2,282,608 |  | $ | 2,310,521 |  | $ | 2,378,831 |
Savings | 751,243 |  | 711,801 |  | 668,240 |  | 631,622 |  | 635,226 |
Certificates of deposit (retail) | 1,215,767 |  | 1,216,948 |  | 1,203,770 |  | 1,208,101 |  | 1,257,362 |
Certificates of deposit (brokered) | 730,612 |  | 730,773 |  | 551,819 |  | 405,697 |  | 448,151 |
Total interest-bearing deposits | 5,103,596 |  | 4,973,900 |  | 4,706,437 |  | 4,555,941 |  | 4,719,570 |
Borrowings: |  |  |  |  |
Federal Home Loan Bank advances | 1,028,958 |  | 1,085,455 |  | 1,325,583 |  | 1,507,192 |  | 1,428,801 |
Other borrowings | 93,389 |  | 156,522 |  | 237,011 |  | 228,461 |  | 210,989 |
Total borrowings | 1,122,347 |  | 1,241,977 |  | 1,562,594 |  | 1,735,653 |  | 1,639,790 |
Total interest-bearing liabilities | 6,225,943 |  | 6,215,877 |  | 6,269,031 |  | 6,291,594 |  | 6,359,360 |
Non-interest-bearing liabilities: |  |  |  |  |
Non-interest-bearing deposits | 602,647 |  | 604,915 |  | 599,095 |  | 589,438 |  | 581,870 |
Other non-interest-bearing liabilities | 59,919 |  | 65,258 |  | 69,629 |  | 62,978 |  | 65,709 |
Total non-interest-bearing liabilities | 662,566 |  | 670,173 |  | 668,724 |  | 652,416 |  | 647,579 |
Total liabilities | 6,888,509 |  | 6,886,050 |  | 6,937,755 |  | 6,944,010 |  | 7,006,939 |
Stockholders' equity | 745,225 |  | 747,850 |  | 750,678 |  | 751,070 |  | 844,782 |
Total liabilities and stockholders' equity | $ | 7,633,734 |  | $ | 7,633,900 |  | $ | 7,688,433 |  | $ | 7,695,080 |  | $ | 7,851,721 |
Average interest-earning assets to average interest-bearing liabilities | 115.27 | % | 115.41 | % | 115.18 | % | 114.89 | % | 114.39 | %

12

Kearny Financial Corp.
Performance Ratio Highlights

| Three Months Ended
| March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024
Average yield on interest-earning assets: |  |  |  |  |
Loans receivable, including loans held-for-sale | 4.46 | % | 4.54 | % | 4.61 | % | 4.58 | % | 4.45 | %
Taxable investment securities | 4.07 | % | 4.29 | % | 4.38 | % | 4.41 | % | 4.48 | %
Tax-exempt investment securities (1) | 2.43 | % | 2.42 | % | 2.32 | % | 2.32 | % | 2.32 | %
Other interest-earning assets | 6.40 | % | 7.62 | % | 7.47 | % | 7.14 | % | 7.91 | %
Total interest-earning assets | 4.42 | % | 4.54 | % | 4.61 | % | 4.59 | % | 4.51 | %
Average cost of interest-bearing liabilities: |  |  |  |  |
Deposits: |  |  |  |  |
Interest-bearing demand | 2.73 | % | 2.96 | % | 3.13 | % | 3.06 | % | 3.08 | %
Savings | 1.30 | % | 1.29 | % | 1.05 | % | 0.63 | % | 0.46 | %
Certificates of deposit (retail) | 3.73 | % | 4.06 | % | 4.12 | % | 3.95 | % | 3.52 | %
Certificates of deposit (brokered) | 2.58 | % | 2.70 | % | 2.18 | % | 1.59 | % | 1.97 | %
Total interest-bearing deposits | 2.74 | % | 2.95 | % | 2.98 | % | 2.83 | % | 2.74 | %
Borrowings: |  |  |  |  |
Federal Home Loan Bank advances | 3.63 | % | 3.78 | % | 3.82 | % | 3.86 | % | 3.55 | %
Other borrowings | 4.41 | % | 4.88 | % | 5.28 | % | 5.24 | % | 5.22 | %
Total borrowings | 3.70 | % | 3.91 | % | 4.04 | % | 4.04 | % | 3.77 | %
Total interest-bearing liabilities | 2.91 | % | 3.15 | % | 3.24 | % | 3.16 | % | 3.00 | %
Interest rate spread (2) | 1.51 | % | 1.39 | % | 1.37 | % | 1.43 | % | 1.51 | %
Net interest margin (3) | 1.90 | % | 1.82 | % | 1.80 | % | 1.84 | % | 1.89 | %
Non-interest income to average assets (annualized) | 0.24 | % | 0.26 | % | 0.24 | % | 0.30 | % | 0.21 | %
Non-interest expense to average assets (annualized) | 1.59 | % | 1.55 | % | 1.55 | % | 6.58 | % | 1.48 | %
Efficiency ratio (4) | 78.72 | % | 78.86 | % | 80.35 | % | 323.81 | % | 75.43 | %
Return on average assets (annualized) | 0.35 | % | 0.34 | % | 0.32 | % | -4.68 | % | 0.38 | %
Return on average equity (annualized) | 3.57 | % | 3.51 | % | 3.25 | % | -47.97 | % | 3.50 | %
Return on average tangible equity (annualized) (5) | 4.28 | % | 4.21 | % | 3.89 | % | 3.33 | % | 4.68 | %

_________________________
(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) | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024
Adjusted net income: |  |  |  |  |
Net income (loss) (GAAP) | $ | 6,648 |  | $ | 6,566 |  | $ | 6,092 |  | $ | (90,079) |  | $ | 7,397 |
Non-recurring transactions - net of tax: |  |  |  |  |
Net effect of bank-owned life insurance restructure | — |  | — |  | — |  | 392 |  | — |
Goodwill impairment | — |  | — |  | — |  | 95,283 |  | — |
Adjusted net income | $ | 6,648 |  | $ | 6,566 |  | $ | 6,092 |  | $ | 5,596 |  | $ | 7,397 |
Calculation of pre-tax, pre-provision net revenue: |  |  |  |  |
Net income (loss) (GAAP) | $ | 6,648 |  | $ | 6,566 |  | $ | 6,092 |  | $ | (90,079) |  | $ | 7,397 |
Adjustments to net income (GAAP): |  |  |  |  |
Provision for income taxes | 1,200 |  | 1,251 |  | 1,086 |  | (917) |  | 1,717 |
Provision for credit losses | 366 |  | 107 |  | 108 |  | 3,527 |  | 349 |
Pre-tax, pre-provision net revenue (non-GAAP) | $ | 8,214 |  | $ | 7,924 |  | $ | 7,286 |  | $ | (87,469) |  | $ | 9,463 |
Adjusted earnings per share: |  |  |  |  |
Weighted average common shares - basic | 62,548 | 62,443 | 62,389 | 62,254 | 62,205
Weighted average common shares - diluted | 62,713 | 62,576 | 62,420 | 62,330 | 62,211
Earnings per share - basic (GAAP) | $ | 0.11 |  | $ | 0.11 |  | $ | 0.10 |  | $ | (1.45) |  | $ | 0.12 |
Earnings per share - diluted (GAAP) | $ | 0.11 |  | $ | 0.10 |  | $ | 0.10 |  | $ | (1.45) |  | $ | 0.12 |
Adjusted earnings per share - basic (non-GAAP) | $ | 0.11 |  | $ | 0.11 |  | $ | 0.10 |  | $ | 0.09 |  | $ | 0.12 |
Adjusted earnings per share - diluted (non-GAAP) | $ | 0.11 |  | $ | 0.10 |  | $ | 0.10 |  | $ | 0.09 |  | $ | 0.12 |
Pre-tax, pre-provision net revenue per share: |  |  |  |  |
Pre-tax, pre-provision net revenue per share - basic (non-GAAP) | $ | 0.13 |  | $ | 0.13 |  | $ | 0.12 |  | $ | (1.41) |  | $ | 0.15 |
Pre-tax, pre-provision net revenue per share - diluted (non-GAAP) | $ | 0.13 |  | $ | 0.13 |  | $ | 0.12 |  | $ | (1.41) |  | $ | 0.15 |
Adjusted return on average assets: |  |  |  |  |
Total average assets | $ | 7,633,734 |  | $ | 7,633,900 |  | $ | 7,688,433 |  | $ | 7,695,080 |  | $ | 7,851,721 |
Return on average assets (GAAP) | 0.35 | % | 0.34 | % | 0.32 | % | -4.68 | % | 0.38 | %
Adjusted return on average assets (non-GAAP) | 0.35 | % | 0.34 | % | 0.32 | % | 0.29 | % | 0.38 | %
Adjusted return on average equity: |  |  |  |  |
Total average equity | $ | 745,225 |  | $ | 747,850 |  | $ | 750,678 |  | $ | 751,070 |  | $ | 844,782 |
Return on average equity (GAAP) | 3.57 | % | 3.51 | % | 3.25 | % | -47.97 | % | 3.50 | %
Adjusted return on average equity (non-GAAP) | 3.57 | % | 3.51 | % | 3.25 | % | 2.98 | % | 3.50 | %

14

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

| Three Months Ended
(Dollars and Shares in Thousands, Except Per Share Data) | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024
Adjusted return on average tangible equity: |  |  |  |  |
Total average equity | $ | 745,225 |  | $ | 747,850 |  | $ | 750,678 |  | $ | 751,070 |  | $ | 844,782 |
Less: average goodwill | (113,525) |  | (113,525) |  | (113,525) |  | (113,525) |  | (210,895) |
Less: average other intangible assets | (1,636) |  | (1,761) |  | (1,886) |  | (2,006) |  | (2,138) |
Total average tangible equity | $ | 630,064 |  | $ | 632,564 |  | $ | 635,267 |  | $ | 635,539 |  | $ | 631,749 |
Return on average tangible equity (non-GAAP) | 4.28 | % | 4.21 | % | 3.89 | % | 3.33 | % | 4.68 | %
Adjusted return on average tangible equity (non-GAAP) | 4.28 | % | 4.21 | % | 3.89 | % | 3.58 | % | 4.68 | %
Adjusted non-interest expense ratio: |  |  |  |  |
Non-interest expense (GAAP) | $ | 30,390 |  | $ | 29,561 |  | $ | 29,786 |  | $ | 126,551 |  | $ | 29,059 |
Non-recurring transactions: |  |  |  |  |
Goodwill impairment | — |  | — |  | — |  | (97,370) |  | — |
Non-interest expense (non-GAAP) | $ | 30,390 |  | $ | 29,561 |  | $ | 29,786 |  | $ | 29,181 |  | $ | 29,059 |
Non-interest expense ratio (GAAP) | 1.59 | % | 1.55 | % | 1.55 | % | 6.58 | % | 1.48 | %
Adjusted non-interest expense ratio (non-GAAP) | 1.59 | % | 1.55 | % | 1.55 | % | 1.52 | % | 1.48 | %
Adjusted efficiency ratio: |  |  |  |  |
Non-interest expense (non-GAAP) | $ | 30,390 |  | $ | 29,561 |  | $ | 29,786 |  | $ | 29,181 |  | $ | 29,059 |
Net interest income (GAAP) | $ | 34,042 |  | $ | 32,612 |  | $ | 32,446 |  | $ | 33,276 |  | $ | 34,319 |
Total non-interest income (GAAP) | 4,562 |  | 4,873 |  | 4,626 |  | 5,806 |  | 4,203 |
Non-recurring transactions: |  |  |  |  |
Net effect of bank-owned life insurance restructure | — |  | — |  | — |  | 392 |  | — |
Total revenue (non-GAAP) | $ | 38,604 |  | $ | 37,485 |  | $ | 37,072 |  | $ | 39,474 |  | $ | 38,522 |
Efficiency ratio (GAAP) | 78.72 | % | 78.86 | % | 80.35 | % | 323.81 | % | 75.43 | %
Adjusted efficiency ratio (non-GAAP) | 78.72 | % | 78.86 | % | 80.35 | % | 73.92 | % | 75.43 | %

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