EX-99.1 2 krny-20250724xexx991.htm EX-99.1
Exhibit 99.1
FOR IMMEDIATE RELEASE
July 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 FOURTH QUARTER AND FISCAL YEAR END 2025 RESULTS
AND DECLARATION OF $0.11 PER SHARE CASH DIVIDEND
Fairfield, N.J., July 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 June 30, 2025 of $6.8 million, or $0.11 per diluted share, compared to $6.6 million, or $0.11 per diluted share, for the quarter ended March 31, 2025.
For the fiscal year ended June 30, 2025, the Company reported net income of $26.1 million, or $0.42 per diluted share, compared to a net loss of $86.7 million, or $1.39 per diluted share, for the fiscal year ended June 30, 2024. Excluding the impact of a non-cash, after-tax, goodwill impairment of $95.3 million and other non-recurring transactions, adjusted net income for the fiscal year ended June 30, 2024 was $28.2 million, or $0.45 per diluted share.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.11 per share, payable on August 26, 2025, to stockholders of record as of August 12, 2025.
Craig L. Montanaro, President and Chief Executive Officer, commented, “We are pleased to report 23% growth in pre-tax, pre-provision earnings per share this quarter, driven by ten basis points of net interest margin expansion. In addition, credit quality remains exceptional, with negligible net charge-offs for both the quarter and the fiscal year.”
Mr. Montanaro continued, “These results reflect the successful execution of our strategy and the tailwinds provided by the natural repricing of our loan and time deposit portfolios. Looking ahead, we remain confident in our ability to deliver sustained earnings growth and continued margin expansion, creating long-term value for our shareholders.”
Fourth Quarter Highlights
•Net interest margin increased 10 basis points to 2.00%, while net interest income increased 5.3% to $35.8 million.
•Pre-tax, pre-provision earnings per share increased 23% to $0.16 per diluted share.
•Net charge-offs were less than 0.01% of average loans, reflecting strong underwriting and exceptional credit quality.
•Non-interest expense to average assets was 1.58%, reflecting disciplined expense management.
•The Company received regulatory approval to consolidate three branch locations, scheduled to close in October 2025. These closures are expected to have minimal impact on the Company’s financial results.
Balance Sheet
•Total assets were $7.74 billion at June 30, 2025, an increase of $7.3 million, or 0.1%, from March 31, 2025 and an increase of $57.0 million, or 0.7%, from June 30, 2024.
•Investment securities totaled $1.13 billion at June 30, 2025, an increase of $4.9 million, or 0.4%, from March 31, 2025 and a decrease of $75.4 million, or 6.2%, from June 30, 2024.
•Loans receivable totaled $5.81 billion at June 30, 2025, a decrease of $33.2 million, or 0.6%, from March 31, 2025 and an increase of $80.2 million, or 1.4%, from June 30, 2024.
•Deposits were $5.68 billion at June 30, 2025, a decrease of $32.1 million, or 0.6%, from March 31, 2025 and an increase of $517.1 million, or 10.0%, from June 30, 2024. The decrease from March 31, 2025 was primarily driven by a decline in interest bearing demand deposits, partially offset by an increase in certificates of deposits (“CDs”). The increase from June 30, 2024 was primarily driven by a reallocation from Federal Home Loan Bank (“FHLB”) advances into brokered CDs, reflecting more favorable funding costs, and growth in deposits from our branch network and digital channels.
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•Borrowings were $1.26 billion at June 30, 2025, an increase of $42.5 million, or 3.5%, from March 31, 2025 and a decrease of $453.3 million, or 26.5%, from June 30, 2024.
•At June 30, 2025, the Company maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.22 billion, representing 28.7% of total assets.
Earnings
Net Interest Income and Net Interest Margin
•Net interest margin increased by 10 basis points to 2.00% for the quarter ended June 30, 2025 and declined six basis points to 1.88% for the year ended June 30, 2025. The quarterly improvement was driven by higher yields and average balances on loans receivable, a reduction in interest-bearing deposits, and broad-based declines in deposit rates. The year-over-year decline reflected higher costs on interest-bearing liabilities and a lower average balance of interest-earning assets, partially offset by improved asset yields and a reduction in the average balance of interest-bearing liabilities.
•For the quarter ended June 30, 2025, net interest income increased $1.8 million, or 5.3%, to $35.8 million from $34.0 million for the quarter ended March 31, 2025. Included in net interest income for the quarters ended June 30, 2025 and March 31, 2025, was purchase accounting accretion of $511,000 in each period and loan prepayment penalty income of $217,000 and $226,000, respectively.
•For the year ended June 30, 2025, net interest income decreased $7.7 million, or 5.4%, to $134.9 million from $142.6 million for the year ended June 30, 2024. Included in net interest income for the years ended June 30, 2025 and 2024, respectively, was purchase accounting accretion of $2.4 million and $2.6 million and loan prepayment penalty income of $783,000 and $879,000.
Non-Interest Income
•For the quarter ended June 30, 2025, non-interest income increased $429,000, or 9.4%, to $5.0 million from $4.6 million for the quarter ended March 31, 2025, primarily driven by increases in income from bank owned life insurance (“BOLI”), gain on sale of loans and electronic banking fees and charges.
•Income from BOLI increased $252,000 to $2.9 million for the quarter ended June 30, 2025 from $2.6 million for the quarter ended March 31, 2025, primarily driven by $223,000 in non-recurring payments on two life insurance policies in the current period. No such non-recurring items were recorded in the prior period.
•Gain on sale of loans increased $78,000 to $190,000 for the quarter ended June 30, 2025 from $112,000 for the quarter ended March 31, 2025.
•For the year ended June 30, 2025, non-interest income increased $21.0 million to $19.1 million from a loss of $2.0 million for the year ended June 30, 2024. The increase was primarily attributable to the absence of an $18.1 million pre-tax loss related to the investment securities portfolio repositioning executed during December 2023 and the absence of a non-recurring pre-tax loss of $884,000 attributable to the sale of three related nonperforming commercial real estate loans held-for-sale in the year ended June 30, 2024. No such losses were recorded during the year ended June 30, 2025.
Non-Interest Expense
•For the quarter ended June 30, 2025, non-interest expense increased $503,000, or 1.7%, to $30.9 million from $30.4 million for the quarter ended March 31, 2025, primarily driven by increases in salary and benefits and other expenses, partially offset by a decrease in net occupancy expense.
•Salary and benefits expense increased $393,000 to $18.1 million for the quarter ended June 30, 2025 from $17.7 million for the quarter ended March 31, 2025, primarily driven by the absence of a $427,000 non-recurring decrease in stock-based compensation recorded in the prior period.
•Net occupancy expense of premises decreased $255,000 to $2.8 million for the quarter ended June 30, 2025 from $3.1 million for the quarter ended March 31, 2025, primarily driven by lower snow removal expenses recorded in the current period.
•Other expense increased $324,000 to $3.6 million for the quarter ended June 30, 2025 from $3.3 million for the quarter ended March 31, 2025, primarily due to a non-recurring increase in professional fees incurred during the period. The remaining changes in the other components of non-interest expense between comparative periods generally reflected normal operating fluctuations within those line items.
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•For the year ended June 30, 2025, non-interest expense decreased $94.5 million, or 43.9%, to $120.6 million from $215.2 million for the year ended June 30, 2024, primarily reflecting the absence of a non-cash goodwill impairment recognized in the prior year period. Excluding the goodwill impairment, adjusted non-interest expense for the year ended June 30, 2025 increased $2.8 million, or 2.4%, from $117.8 million in the prior year period. The increase was primarily attributable to an increase in salary and benefits expense attributable to annual merit increases and higher incentive compensation.
Income Taxes
•Income tax expense totaled $1.4 million for the quarter ended June 30, 2025 compared to $1.2 million for the quarter ended March 31, 2025, resulting in an effective tax rate of 17.0% and 15.3%, respectively.
•Income tax expense totaled $4.9 million for the year ended June 30, 2025 compared to $5.9 million for the year ended June 30, 2024. The decrease in income tax expense was primarily driven by the absence of a $5.7 million tax expense related to the surrender of BOLI policies in the prior year period, partially offset by higher pre-tax income in the current year period.
Asset Quality
•The balance of non-performing assets increased $7.9 million to $45.6 million, or 0.59% of total assets, at June 30, 2025, from $37.7 million, or 0.49% of total assets, at March 31, 2025. The balance of non-performing assets was $39.9 million, or 0.52% of total assets, at June 30, 2024. The increase from March 31, 2025 was primarily driven by two multifamily relationships totaling $6.1 million that were placed on non-accrual status.
•Net charge-offs totaled $49,000, or less than 0.01% of average loans, on an annualized basis, for the quarter ended June 30, 2025, compared to $368,000, or 0.03% of average loans, on an annualized basis, for the quarter ended March 31, 2025. For the year ended June 30, 2025, net charge-offs totaled $1.1 million, or 0.02% of average loans, compared to $10.0 million, or 0.17% of average loans, for the year ended June 30, 2024.
•For the quarter ended June 30, 2025, the Company recorded a provision for credit losses of $1.8 million, compared to $366,000 for the quarter ended March 31, 2025. The provision for credit losses for the quarter ended June 30, 2025 was driven by an $805,000 reserve related to a non-performing wholesale commercial and industrial (“C&I”) loan, representing the final wholesale C&I loan in the portfolio. Additionally, the current quarter’s provision included a $1.1 million increase in reserves on individually evaluated loans. For the years ended June 30, 2025 and June 30, 2024, the Company recorded a provision for credit losses of $2.4 million and $6.2 million, respectively.
•The allowance for credit losses (“ACL”) was $46.2 million, or 0.79% of total loans, at June 30, 2025, an increase of $1.7 million from $44.5 million, or 0.76% of total loans, at March 31, 2025. The ACL was $44.9 million, or 0.78% of total loans, at June 30, 2024.
Capital
•For the quarter ended June 30, 2025, book value per share and tangible book value per share decreased $0.03, or 0.3%, to $11.55 and $9.77, respectively, compared to the prior period.
•At June 30, 2025, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $79.6 million, partially offset by after-tax unrealized gains on derivatives of $6.9 million. After-tax net unrecognized losses on securities held to maturity of $9.6 million were not reflected in total stockholders’ equity.
•At June 30, 2025, the Company’s tangible equity to tangible assets ratio equaled 8.27% 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.
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This earnings release should be read in conjunction with Kearny Financial Corp.’s Q4 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.
Non-GAAP Measures
This earnings release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as a reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measures provide useful information that is important to an understanding of the results of the Company’s core business as well as provide information standard in the financial institution industry. Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company.
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
4

Linked-Quarter Comparative Financial Analysis

Kearny Financial Corp.
Consolidated Balance Sheets
(Unaudited)

(Dollars and Shares in Thousands, Except Per Share Data) | June 30, 2025 | March 31, 2025 | Variance or Change | Variance or Change Pct.
Assets |  |  |  |
Cash and cash equivalents | $ | 167,269 |  | $ | 126,095 |  | $ | 41,174 |  | 32.7 | %
Securities available for sale | 1,012,969 |  | 1,003,393 |  | 9,576 |  | 1.0 | %
Securities held to maturity | 120,217 |  | 124,859 |  | (4,642) |  | -3.7 | %
Loans held-for-sale | 5,931 |  | 6,187 |  | (256) |  | -4.1 | %
Loans receivable | 5,812,937 |  | 5,846,175 |  | (33,238) |  | -0.6 | %
Less: allowance for credit losses on loans | (46,191) |  | (44,455) |  | 1,736 |  | 3.9 | %
Net loans receivable | 5,766,746 |  | 5,801,720 |  | (34,974) |  | -0.6 | %
Premises and equipment | 43,897 |  | 44,192 |  | (295) |  | -0.7 | %
Federal Home Loan Bank stock | 64,261 |  | 62,261 |  | 2,000 |  | 3.2 | %
Accrued interest receivable | 28,098 |  | 28,521 |  | (423) |  | -1.5 | %
Goodwill | 113,525 |  | 113,525 |  | — |  | — | %
Core deposit intangible | 1,436 |  | 1,554 |  | (118) |  | -7.6 | %
Bank owned life insurance | 304,717 |  | 303,629 |  | 1,088 |  | 0.4 | %
Deferred income taxes, net | 55,203 |  | 52,913 |  | 2,290 |  | 4.3 | %
Other assets | 56,181 |  | 64,292 |  | (8,111) |  | -12.6 | %
Total assets | $ | 7,740,450 |  | $ | 7,733,141 |  | $ | 7,309 |  | 0.1 | %
Liabilities |  |  |  |
Deposits: |  |  |  |
Non-interest-bearing | $ | 582,045 |  | $ | 587,118 |  | $ | (5,073) |  | -0.9 | %
Interest-bearing | 5,093,172 |  | 5,120,230 |  | (27,058) |  | -0.5 | %
Total deposits | 5,675,217 |  | 5,707,348 |  | (32,131) |  | -0.6 | %
Borrowings | 1,256,491 |  | 1,213,976 |  | 42,515 |  | 3.5 | %
Advance payments by borrowers for taxes | 19,317 |  | 19,981 |  | (664) |  | -3.3 | %
Other liabilities | 43,463 |  | 43,723 |  | (260) |  | -0.6 | %
Total liabilities | 6,994,488 |  | 6,985,028 |  | 9,460 |  | 0.1 | %
Stockholders' Equity |  |  |  |
Common stock | 646 |  | 646 |  | — |  | — | %
Paid-in capital | 494,546 |  | 494,131 |  | 415 |  | 0.1 | %
Retained earnings | 341,744 |  | 341,921 |  | (177) |  | -0.1 | %
Unearned ESOP shares | (18,970) |  | (19,457) |  | 487 |  | 2.5 | %
Accumulated other comprehensive loss | (72,004) |  | (69,128) |  | (2,876) |  | -4.2 | %
Total stockholders' equity | 745,962 |  | 748,113 |  | (2,151) |  | -0.3 | %
Total liabilities and stockholders' equity | $ | 7,740,450 |  | $ | 7,733,141 |  | $ | 7,309 |  | 0.1 | %
Consolidated capital ratios |  |  |  |
Equity to assets | 9.64 | % | 9.67 | % | -0.03 | % |
Tangible equity to tangible assets (1) | 8.27 | % | 8.31 | % | -0.04 | % |
Share data |  |  |  |
Outstanding shares | 64,577 | 64,580 | (3) | -0.0 | %
Book value per share | $ | 11.55 |  | $ | 11.58 |  | $ | (0.03) |  | -0.3 | %
Tangible book value per share (2) | $ | 9.77 |  | $ | 9.80 |  | $ | (0.03) |  | -0.3 | %

_________________________
(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.
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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. |
June 30, 2025 | March 31, 2025 |
Interest income |  |  |  |  |
Loans | $ | 66,485 |  | $ | 64,768 |  | $ | 1,717 |  | 2.7 | % |
Taxable investment securities | 12,322 |  | 12,738 |  | (416) |  | -3.3 | % |
Tax-exempt investment securities | 49 |  | 55 |  | (6) |  | -10.9 | % |
Other interest-earning assets | 1,549 |  | 1,773 |  | (224) |  | -12.6 | % |
Total interest income | 80,405 |  | 79,334 |  | 1,071 |  | 1.3 | % |
Interest expense |  |  |  |  |
Deposits | 33,607 |  | 34,912 |  | (1,305) |  | -3.7 | % |
Borrowings | 10,955 |  | 10,380 |  | 575 |  | 5.5 | % |
Total interest expense | 44,562 |  | 45,292 |  | (730) |  | -1.6 | % |
Net interest income | 35,843 |  | 34,042 |  | 1,801 |  | 5.3 | % |
Provision for credit losses | 1,785 |  | 366 |  | 1,419 |  | 387.7 | % |
Net interest income after provision for credit losses | 34,058 |  | 33,676 |  | 382 |  | 1.1 | % |
Non-interest income |  |  |  |  |
Fees and service charges | 655 |  | 573 |  | 82 |  | 14.3 | % |
Gain on sale of loans | 190 |  | 112 |  | 78 |  | 69.6 | % |
Income from bank owned life insurance | 2,869 |  | 2,617 |  | 252 |  | 9.6 | % |
Electronic banking fees and charges | 442 |  | 391 |  | 51 |  | 13.0 | % |
Other income | 835 |  | 869 |  | (34) |  | -3.9 | % |
Total non-interest income | 4,991 |  | 4,562 |  | 429 |  | 9.4 | % |
Non-interest expense |  |  |  |  |
Salaries and employee benefits | 18,093 |  | 17,700 |  | 393 |  | 2.2 | % |
Net occupancy expense of premises | 2,820 |  | 3,075 |  | (255) |  | -8.3 | % |
Equipment and systems | 4,030 |  | 3,921 |  | 109 |  | 2.8 | % |
Advertising and marketing | 615 |  | 609 |  | 6 |  | 1.0 | % |
Federal deposit insurance premium | 1,395 |  | 1,450 |  | (55) |  | -3.8 | % |
Directors' compensation | 307 |  | 326 |  | (19) |  | -5.8 | % |
Other expense | 3,633 |  | 3,309 |  | 324 |  | 9.8 | % |
Total non-interest expense | 30,893 |  | 30,390 |  | 503 |  | 1.7 | % |
Income before income taxes | 8,156 |  | 7,848 |  | 308 |  | 3.9 | % |
Income taxes | 1,387 |  | 1,200 |  | 187 |  | 15.6 | % |
Net income | $ | 6,769 |  | $ | 6,648 |  | $ | 121 |  | 1.8 | % |
Net income per common share (EPS) |  |  |  |  |
Basic | $ | 0.11 |  | $ | 0.11 |  | $ | — |  |  |
Diluted | $ | 0.11 |  | $ | 0.11 |  | $ | — |  |  |
Dividends declared |  |  |  |  |
Cash dividends declared per common share | $ | 0.11 |  | $ | 0.11 |  | $ | — |  |  |
Cash dividends declared | $ | 6,946 |  | $ | 6,933 |  | $ | 13 |  |  |
Dividend payout ratio | 102.6 | % | 104.3 | % | -1.7 | % |  |
Weighted average number of common shares outstanding |  |  |  |  |
Basic | 62,597 | 62,548 | 49 |  |
Diluted | 62,755 | 62,713 | 42 |  |

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Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)

(Dollars in Thousands) | Three Months Ended | Variance or Change | Variance or Change Pct.
June 30, 2025 | March 31, 2025
Assets |  |  |  |
Interest-earning assets: |  |  |  |
Loans receivable, including loans held for sale | $ | 5,830,421 |  | $ | 5,805,045 |  | $ | 25,376 |  | 0.4 | %
Taxable investment securities | 1,227,825 |  | 1,251,612 |  | (23,787) |  | -1.9 | %
Tax-exempt investment securities | 8,039 |  | 9,135 |  | (1,096) |  | -12.0 | %
Other interest-earning assets | 117,622 |  | 110,736 |  | 6,886 |  | 6.2 | %
Total interest-earning assets | 7,183,907 |  | 7,176,528 |  | 7,379 |  | 0.1 | %
Non-interest-earning assets | 454,975 |  | 457,206 |  | (2,231) |  | -0.5 | %
Total assets | $ | 7,638,882 |  | $ | 7,633,734 |  | $ | 5,148 |  | 0.1 | %
Liabilities and Stockholders' Equity |  |  |  |
Interest-bearing liabilities: |  |  |  |
Deposits: |  |  |  |
Interest-bearing demand | $ | 2,342,523 |  | $ | 2,405,974 |  | $ | (63,451) |  | -2.6 | %
Savings | 754,192 |  | 751,243 |  | 2,949 |  | 0.4 | %
Certificates of deposit (retail) | 1,215,661 |  | 1,215,767 |  | (106) |  | -0.0 | %
Certificates of deposit (brokered) | 744,345 |  | 730,612 |  | 13,733 |  | 1.9 | %
Total interest-bearing deposits | 5,056,721 |  | 5,103,596 |  | (46,875) |  | -0.9 | %
Borrowings: |  |  |  |
Federal Home Loan Bank advances | 1,083,902 |  | 1,028,958 |  | 54,944 |  | 5.3 | %
Other borrowings | 107,582 |  | 93,389 |  | 14,193 |  | 15.2 | %
Total borrowings | 1,191,484 |  | 1,122,347 |  | 69,137 |  | 6.2 | %
Total interest-bearing liabilities | 6,248,205 |  | 6,225,943 |  | 22,262 |  | 0.4 | %
Non-interest-bearing liabilities: |  |  |  |
Non-interest-bearing deposits | 582,085 |  | 602,647 |  | (20,562) |  | -3.4 | %
Other non-interest-bearing liabilities | 64,405 |  | 59,919 |  | 4,486 |  | 7.5 | %
Total non-interest-bearing liabilities | 646,490 |  | 662,566 |  | (16,076) |  | -2.4 | %
Total liabilities | 6,894,695 |  | 6,888,509 |  | 6,186 |  | 0.1 | %
Stockholders' equity | 744,187 |  | 745,225 |  | (1,038) |  | -0.1 | %
Total liabilities and stockholders' equity | $ | 7,638,882 |  | $ | 7,633,734 |  | $ | 5,148 |  | 0.1 | %
Average interest-earning assets to average interest-bearing liabilities | 114.98 | % | 115.27 | % | -0.29 | % | -0.3 | %

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Kearny Financial Corp.
Performance Ratio Highlights
(Unaudited)

| Three Months Ended | Variance or Change
| June 30, 2025 | March 31, 2025
Average yield on interest-earning assets: |  |  |
Loans receivable, including loans held for sale | 4.56 | % | 4.46 | % | 0.10 | %
Taxable investment securities | 4.01 | % | 4.07 | % | -0.06 | %
Tax-exempt investment securities (1) | 2.43 | % | 2.43 | % | — | %
Other interest-earning assets | 5.27 | % | 6.40 | % | -1.13 | %
Total interest-earning assets | 4.48 | % | 4.42 | % | 0.06 | %
Average cost of interest-bearing liabilities: |  |  |
Deposits: |  |  |
Interest-bearing demand | 2.63 | % | 2.73 | % | -0.10 | %
Savings | 1.33 | % | 1.30 | % | 0.03 | %
Certificates of deposit (retail) | 3.56 | % | 3.73 | % | -0.17 | %
Certificates of deposit (brokered) | 2.62 | % | 2.58 | % | 0.04 | %
Total interest-bearing deposits | 2.66 | % | 2.74 | % | -0.08 | %
Borrowings: |  |  |
Federal Home Loan Bank advances | 3.60 | % | 3.63 | % | -0.03 | %
Other borrowings | 4.45 | % | 4.41 | % | 0.04 | %
Total borrowings | 3.68 | % | 3.70 | % | -0.02 | %
Total interest-bearing liabilities | 2.85 | % | 2.91 | % | -0.06 | %
Interest rate spread (2) | 1.62 | % | 1.51 | % | 0.11 | %
Net interest margin (3) | 2.00 | % | 1.90 | % | 0.10 | %
Non-interest income to average assets (annualized) | 0.26 | % | 0.24 | % | 0.02 | %
Non-interest expense to average assets (annualized) | 1.62 | % | 1.59 | % | 0.03 | %
Efficiency ratio (4) | 75.66 | % | 78.72 | % | -3.06 | %
Return on average assets (annualized) | 0.35 | % | 0.35 | % | — | %
Return on average equity (annualized) | 3.64 | % | 3.57 | % | 0.07 | %
Return on average tangible equity (annualized) (5) | 4.36 | % | 4.28 | % | 0.08 | %

_________________________
(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.
8

Year-to-Year Comparative Financial Analysis

Kearny Financial Corp.
Consolidated Balance Sheets

(Dollars and Shares in Thousands, Except Per Share Data) | June 30, 2025 | June 30, 2024 | Variance or Change | Variance or Change Pct.
| (Unaudited) | (Audited) |  |
Assets |  |  |  |
Cash and cash equivalents | $ | 167,269 |  | $ | 63,864 |  | $ | 103,405 |  | 161.9 | %
Securities available for sale | 1,012,969 |  | 1,072,833 |  | (59,864) |  | -5.6 | %
Securities held to maturity | 120,217 |  | 135,742 |  | (15,525) |  | -11.4 | %
Loans held-for-sale | 5,931 |  | 6,036 |  | (105) |  | -1.7 | %
Loans receivable | 5,812,937 |  | 5,732,787 |  | 80,150 |  | 1.4 | %
Less: allowance for credit losses on loans | (46,191) |  | (44,939) |  | 1,252 |  | 2.8 | %
Net loans receivable | 5,766,746 |  | 5,687,848 |  | 78,898 |  | 1.4 | %
Premises and equipment | 43,897 |  | 44,940 |  | (1,043) |  | -2.3 | %
Federal Home Loan Bank of New York stock | 64,261 |  | 80,300 |  | (16,039) |  | -20.0 | %
Accrued interest receivable | 28,098 |  | 29,521 |  | (1,423) |  | -4.8 | %
Goodwill | 113,525 |  | 113,525 |  | — |  | — | %
Core deposit intangible | 1,436 |  | 1,931 |  | (495) |  | -25.6 | %
Bank owned life insurance | 304,717 |  | 297,874 |  | 6,843 |  | 2.3 | %
Deferred income tax assets, net | 55,203 |  | 50,339 |  | 4,864 |  | 9.7 | %
Other assets | 56,181 |  | 98,708 |  | (42,527) |  | -43.1 | %
Total assets | $ | 7,740,450 |  | $ | 7,683,461 |  | $ | 56,989 |  | 0.7 | %
Liabilities |  |  |  |
Deposits: |  |  |  |
Non-interest-bearing | $ | 582,045 |  | $ | 598,366 |  | $ | (16,321) |  | -2.7 | %
Interest-bearing | 5,093,172 |  | 4,559,757 |  | 533,415 |  | 11.7 | %
Total deposits | 5,675,217 |  | 5,158,123 |  | 517,094 |  | 10.0 | %
Borrowings | 1,256,491 |  | 1,709,789 |  | (453,298) |  | -26.5 | %
Advance payments by borrowers for taxes | 19,317 |  | 17,409 |  | 1,908 |  | 11.0 | %
Other liabilities | 43,463 |  | 44,569 |  | (1,106) |  | -2.5 | %
Total liabilities | 6,994,488 |  | 6,929,890 |  | 64,598 |  | 0.9 | %
Stockholders' Equity |  |  |  |
Common stock | $ | 646 |  | $ | 644 |  | $ | 2 |  | 0.3 | %
Paid-in capital | 494,546 |  | 493,680 |  | 866 |  | 0.2 | %
Retained earnings | 341,744 |  | 343,326 |  | (1,582) |  | -0.5 | %
Unearned ESOP shares | (18,970) |  | (20,916) |  | 1,946 |  | 9.3 | %
Accumulated other comprehensive loss | (72,004) |  | (63,163) |  | (8,841) |  | -14.0 | %
Total stockholders' equity | 745,962 |  | 753,571 |  | (7,609) |  | -1.0 | %
Total liabilities and stockholders' equity | $ | 7,740,450 |  | $ | 7,683,461 |  | $ | 56,989 |  | 0.7 | %
Consolidated capital ratios |  |  |  |
Equity to assets | 9.64 | % | 9.81 | % | -0.17 | % |
Tangible equity to tangible assets (1) | 8.27 | % | 8.43 | % | -0.16 | % |
Share data |  |  |  |
Outstanding shares | 64,577 | 64,434 | 143 | 0.2 | %
Book value per share | $ | 11.55 |  | $ | 11.70 |  | $ | (0.15) |  | -1.3 | %
Tangible book value per share (2) | $ | 9.77 |  | $ | 9.90 |  | $ | (0.13) |  | -1.3 | %

_________________________
(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.
9

Kearny Financial Corp.
Consolidated Statements of Income

| Year Ended |  |
(Dollars and Shares in Thousands, Except Per Share Data) | June 30, 2025 | June 30, 2024 | Variance or Change | Variance or Change Pct.
| (Unaudited) | (Audited) |  |
Interest income |  |  |  |
Loans | $ | 262,992 |  | $ | 256,007 |  | $ | 6,985 |  | 2.7 | %
Taxable investment securities | 53,247 |  | 63,313 |  | (10,066) |  | -15.9 | %
Tax-exempt investment securities | 234 |  | 336 |  | (102) |  | -30.4 | %
Other interest-earning assets | 8,003 |  | 9,212 |  | (1,209) |  | -13.1 | %
Total Interest Income | 324,476 |  | 328,868 |  | (4,392) |  | -1.3 | %
Interest expense |  |  |  |
Deposits | 140,258 |  | 122,414 |  | 17,844 |  | 14.6 | %
Borrowings | 49,275 |  | 63,860 |  | (14,585) |  | -22.8 | %
Total interest expense | 189,533 |  | 186,274 |  | 3,259 |  | 1.7 | %
Net interest income | 134,943 |  | 142,594 |  | (7,651) |  | -5.4 | %
Provision for credit losses | 2,366 |  | 6,226 |  | (3,860) |  | -62.0 | %
Net interest income after provision for credit losses | 132,577 |  | 136,368 |  | (3,791) |  | -2.8 | %
Non-interest income |  |  |  |
Fees and service charges | 2,490 |  | 2,609 |  | (119) |  | -4.6 | %
Loss on sale and call of securities | — |  | (18,135) |  | 18,135 |  | 100.0 | %
Gain (loss) on sale of loans | 806 |  | (282) |  | 1,088 |  | 385.8 | %
Loss on sale of real estate owned | — |  | (974) |  | 974 |  | 100.0 | %
Income from bank owned life insurance | 10,672 |  | 9,076 |  | 1,596 |  | 17.6 | %
Electronic banking fees and charges | 1,717 |  | 2,357 |  | (640) |  | -27.2 | %
Other income | 3,367 |  | 3,356 |  | 11 |  | 0.3 | %
Total non-interest income | 19,052 |  | (1,993) |  | 21,045 |  | 1,055.9 | %
Non-interest expense |  |  |  |
Salaries and employee benefits | 70,870 |  | 69,220 |  | 1,650 |  | 2.4 | %
Net occupancy expense of premises | 11,524 |  | 11,033 |  | 491 |  | 4.5 | %
Equipment and systems | 15,703 |  | 15,223 |  | 480 |  | 3.2 | %
Advertising and marketing | 1,877 |  | 1,396 |  | 481 |  | 34.5 | %
Federal deposit insurance premium | 5,911 |  | 5,980 |  | (69) |  | -1.2 | %
Directors' compensation | 1,355 |  | 1,506 |  | (151) |  | -10.0 | %
Goodwill Impairment | — |  | 97,370 |  | (97,370) |  | -100.0 | %
Other expense | 13,390 |  | 13,423 |  | (33) |  | -0.2 | %
Total non-interest expense | 120,630 |  | 215,151 |  | (94,521) |  | -43.9 | %
Income (loss) before income taxes | 30,999 |  | (80,776) |  | 111,775 |  | 138.4 | %
Income taxes | 4,924 |  | 5,891 |  | (967) |  | -16.4 | %
Net income (loss) | $ | 26,075 |  | $ | (86,667) |  | $ | 112,742 |  | 130.1 | %
Net income (loss) per common share (EPS) |  |  |  |
Basic | $ | 0.42 |  | $ | (1.39) |  | $ | 1.81 |  |
Diluted | $ | 0.42 |  | $ | (1.39) |  | $ | 1.81 |  |
Dividends declared |  |  |  |
Cash dividends declared per common share | $ | 0.44 |  | $ | 0.44 |  | $ | — |  |
Cash dividends declared | $ | 27,657 |  | $ | 27,618 |  | $ | 39 |  |
Dividend payout ratio | 106.1 | % | -31.9 | % | 138 | % |
Weighted average number of common shares outstanding |  |  |  |
Basic | 62,508 |  | 62,444 |  | 64 |  |
Diluted | 62,716 |  | 62,444 |  | 272 |  |

10

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)

| Year Ended |  |
(Dollars in Thousands) | June 30, 2025 | June 30, 2024 | Variance or Change | Variance or Change Pct.
Assets |  |  |  |
Interest-earning assets: |  |  |  |
Loans receivable, including loans held for sale | $ | 5,789,583 |  | $ | 5,752,496 |  | $ | 37,087 |  | 0.6 | %
Taxable investment securities | 1,270,262 |  | 1,438,200 |  | (167,938) |  | -11.7 | %
Tax-exempt investment securities | 9,791 |  | 14,718 |  | (4,927) |  | -33.5 | %
Other interest-earning assets | 119,224 |  | 131,019 |  | (11,795) |  | -9.0 | %
Total interest-earning assets | 7,188,860 |  | 7,336,433 |  | (147,573) |  | -2.0 | %
Non-interest-earning assets | 459,986 |  | 541,859 |  | (81,873) |  | -15.1 | %
Total assets | $ | 7,648,846 |  | $ | 7,878,292 |  | $ | (229,446) |  | -2.9 | %
Liabilities and Stockholders' Equity |  |  |  |
Interest-bearing liabilities: |  |  |  |
Deposits: |  |  |  |
Interest-bearing demand | $ | 2,335,972 |  | $ | 2,308,893 |  | $ | 27,079 |  | 1.2 | %
Savings | 721,115 |  | 662,981 |  | 58,134 |  | 8.8 | %
Certificates of deposit (retail) | 1,213,015 |  | 1,278,535 |  | (65,520) |  | -5.1 | %
Certificates of deposit (brokered) | 689,011 |  | 500,147 |  | 188,864 |  | 37.8 | %
Total interest-bearing deposits | 4,959,113 |  | 4,750,556 |  | 208,557 |  | 4.4 | %
Borrowings: |  |  |  |
Federal Home Loan Bank Advances | 1,131,662 |  | 1,458,941 |  | (327,279) |  | -22.4 | %
Other borrowings | 149,041 |  | 184,768 |  | (35,727) |  | -19.3 | %
Total borrowings | 1,280,703 |  | 1,643,709 |  | (363,006) |  | -22.1 | %
Total interest-bearing liabilities | 6,239,816 |  | 6,394,265 |  | (154,449) |  | -2.4 | %
Non-interest-bearing liabilities: |  |  |  |
Non-interest-bearing deposits | 597,197 |  | 595,266 |  | 1,931 |  | 0.3 | %
Other non-interest-bearing liabilities | 64,831 |  | 64,444 |  | 387 |  | 0.6 | %
Total non-interest-bearing liabilities | 662,028 |  | 659,710 |  | 2,318 |  | 0.4 | %
Total liabilities | 6,901,844 |  | 7,053,975 |  | (152,131) |  | -2.2 | %
Stockholders' equity | 747,002 |  | 824,317 |  | (77,315) |  | -9.4 | %
Total liabilities and stockholders' equity | $ | 7,648,846 |  | $ | 7,878,292 |  | $ | (229,446) |  | -2.9 | %
Average interest-earning assets to average interest-bearing liabilities | 115.21 | % | 114.73 | % | 0.48 | % | 0.4 | %

11

Kearny Financial Corp.
Performance Ratio Highlights
(Unaudited)

| Year Ended |
| June 30, 2025 | June 30, 2024 | Variance or Change
Average yield on interest-earning assets: |  |  |
Loans receivable, including loans held for sale | 4.54 | % | 4.45 | % | 0.09 | %
Taxable investment securities | 4.19 | % | 4.40 | % | -0.21 | %
Tax-exempt investment securities (1) | 2.39 | % | 2.28 | % | 0.11 | %
Other interest-earning assets | 6.71 | % | 7.03 | % | -0.32 | %
Total interest-earning assets | 4.51 | % | 4.48 | % | 0.03 | %
Average cost of interest-bearing liabilities: |  |  |
Deposits: |  |  |
Interest-bearing demand | 2.86 | % | 2.91 | % | -0.05 | %
Savings | 1.25 | % | 0.50 | % | 0.75 | %
Certificates of deposit (retail) | 3.87 | % | 3.27 | % | 0.60 | %
Certificates of deposit (brokered) | 2.54 | % | 2.03 | % | 0.51 | %
Total interest-bearing deposits | 2.83 | % | 2.58 | % | 0.25 | %
Borrowings: |  |  |
Federal Home Loan Bank Advances | 3.71 | % | 3.70 | % | 0.01 | %
Other borrowings | 4.87 | % | 5.36 | % | -0.49 | %
Total borrowings | 3.85 | % | 3.89 | % | -0.04 | %
Total interest-bearing liabilities | 3.04 | % | 2.91 | % | 0.13 | %
Interest rate spread (2) | 1.47 | % | 1.57 | % | -0.10 | %
Net interest margin (3) | 1.88 | % | 1.94 | % | -0.06 | %
Non-interest income to average assets | 0.25 | % | -0.03 | % | 0.28 | %
Non-interest expense to average assets | 1.58 | % | 2.73 | % | -1.15 | %
Efficiency ratio (4) | 78.33 | % | 153.02 | % | -74.69 | %
Return on average assets | 0.34 | % | -1.10 | % | 1.44 | %
Return on average equity | 3.49 | % | -10.51 | % | 14.00 | %
Return on average tangible equity (5) | 4.18 | % | -13.64 | % | 17.82 | %

_________________________
(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.
12

Five-Quarter Financial Trend Analysis

Kearny Financial Corp.
Consolidated Balance Sheets

(Dollars and Shares in Thousands, Except Per Share Data) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited)
Assets |  |  |  |  |
Cash and cash equivalents | $ | 167,269 |  | $ | 126,095 |  | $ | 141,554 |  | $ | 155,574 |  | $ | 63,864 |
Securities available for sale | 1,012,969 |  | 1,003,393 |  | 1,018,279 |  | 1,070,811 |  | 1,072,833 |
Securities held to maturity | 120,217 |  | 124,859 |  | 127,266 |  | 132,256 |  | 135,742 |
Loans held-for-sale | 5,931 |  | 6,187 |  | 5,695 |  | 8,866 |  | 6,036 |
Loans receivable | 5,812,937 |  | 5,846,175 |  | 5,791,758 |  | 5,784,246 |  | 5,732,787 |
Less: allowance for credit losses on loans | (46,191) |  | (44,455) |  | (44,457) |  | (44,923) |  | (44,939) |
Net loans receivable | 5,766,746 |  | 5,801,720 |  | 5,747,301 |  | 5,739,323 |  | 5,687,848 |
Premises and equipment | 43,897 |  | 44,192 |  | 45,127 |  | 45,189 |  | 44,940 |
Federal Home Loan Bank stock | 64,261 |  | 62,261 |  | 64,443 |  | 57,706 |  | 80,300 |
Accrued interest receivable | 28,098 |  | 28,521 |  | 27,772 |  | 29,467 |  | 29,521 |
Goodwill | 113,525 |  | 113,525 |  | 113,525 |  | 113,525 |  | 113,525 |
Core deposit intangible | 1,436 |  | 1,554 |  | 1,679 |  | 1,805 |  | 1,931 |
Bank owned life insurance | 304,717 |  | 303,629 |  | 301,339 |  | 300,186 |  | 297,874 |
Deferred income taxes, net | 55,203 |  | 52,913 |  | 53,325 |  | 50,131 |  | 50,339 |
Other assets | 56,181 |  | 64,292 |  | 84,080 |  | 67,540 |  | 98,708 |
Total assets | $ | 7,740,450 |  | $ | 7,733,141 |  | $ | 7,731,385 |  | $ | 7,772,379 |  | $ | 7,683,461 |
Liabilities |  |  |  |  |
Deposits: |  |  |  |  |
Non-interest-bearing | $ | 582,045 |  | $ | 587,118 |  | $ | 601,510 |  | $ | 592,099 |  | $ | 598,366 |
Interest-bearing | 5,093,172 |  | 5,120,230 |  | 5,069,550 |  | 4,878,413 |  | 4,559,757 |
Total deposits | 5,675,217 |  | 5,707,348 |  | 5,671,060 |  | 5,470,512 |  | 5,158,123 |
Borrowings | 1,256,491 |  | 1,213,976 |  | 1,258,949 |  | 1,479,888 |  | 1,709,789 |
Advance payments by borrowers for taxes | 19,317 |  | 19,981 |  | 17,986 |  | 17,824 |  | 17,409 |
Other liabilities | 43,463 |  | 43,723 |  | 38,537 |  | 52,618 |  | 44,569 |
Total liabilities | 6,994,488 |  | 6,985,028 |  | 6,986,532 |  | 7,020,842 |  | 6,929,890 |
Stockholders' Equity |  |  |  |  |
Common stock | 646 |  | 646 |  | 646 |  | 646 |  | 644 |
Paid-in capital | 494,546 |  | 494,131 |  | 494,092 |  | 493,523 |  | 493,680 |
Retained earnings | 341,744 |  | 341,921 |  | 342,155 |  | 342,522 |  | 343,326 |
Unearned ESOP shares | (18,970) |  | (19,457) |  | (19,943) |  | (20,430) |  | (20,916) |
Accumulated other comprehensive loss | (72,004) |  | (69,128) |  | (72,097) |  | (64,724) |  | (63,163) |
Total stockholders' equity | 745,962 |  | 748,113 |  | 744,853 |  | 751,537 |  | 753,571 |
Total liabilities and stockholders' equity | $ | 7,740,450 |  | $ | 7,733,141 |  | $ | 7,731,385 |  | $ | 7,772,379 |  | $ | 7,683,461 |
Consolidated capital ratios |  |  |  |  |
Equity to assets | 9.64 | % | 9.67 | % | 9.63 | % | 9.67 | % | 9.81 | %
Tangible equity to tangible assets (1) | 8.27 | % | 8.31 | % | 8.27 | % | 8.31 | % | 8.43 | %
Share data |  |  |  |  |
Outstanding shares | 64,577 | 64,580 | 64,580 | 64,580 | 64,434
Book value per share | $ | 11.55 |  | $ | 11.58 |  | $ | 11.53 |  | $ | 11.64 |  | $ | 11.70 |
Tangible book value per share (2) | $ | 9.77 |  | $ | 9.80 |  | $ | 9.75 |  | $ | 9.85 |  | $ | 9.90 |

_________________________
(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.
13

Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)

(Dollars in Thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024
Loan portfolio composition: |  |  |  |  |
Commercial loans: |  |  |  |  |
Multi-family mortgage | $ | 2,709,654 |  | $ | 2,733,406 |  | $ | 2,722,623 |  | $ | 2,646,187 |  | $ | 2,645,851 |
Nonresidential mortgage | 986,556 |  | 988,074 |  | 950,194 |  | 950,771 |  | 948,075 |
Commercial business | 138,755 |  | 140,224 |  | 135,740 |  | 145,984 |  | 142,747 |
Construction | 177,713 |  | 174,722 |  | 176,704 |  | 227,327 |  | 209,237 |
Total commercial loans | 4,012,678 |  | 4,036,426 |  | 3,985,261 |  | 3,970,269 |  | 3,945,910 |
One- to four-family residential mortgage | 1,748,591 |  | 1,761,465 |  | 1,765,160 |  | 1,768,230 |  | 1,756,051 |
Consumer loans: |  |  |  |  |
Home equity loans | 50,737 |  | 49,699 |  | 47,101 |  | 44,741 |  | 44,104 |
Other consumer | 2,533 |  | 2,859 |  | 2,778 |  | 2,965 |  | 2,685 |
Total consumer loans | 53,270 |  | 52,558 |  | 49,879 |  | 47,706 |  | 46,789 |
Total loans, excluding yield adjustments | 5,814,539 |  | 5,850,449 |  | 5,800,300 |  | 5,786,205 |  | 5,748,750 |
Unaccreted yield adjustments | (1,602) |  | (4,274) |  | (8,542) |  | (1,959) |  | (15,963) |
Loans receivable, net of yield adjustments | 5,812,937 |  | 5,846,175 |  | 5,791,758 |  | 5,784,246 |  | 5,732,787 |
Less: allowance for credit losses on loans | (46,191) |  | (44,455) |  | (44,457) |  | (44,923) |  | (44,939) |
Net loans receivable | $ | 5,766,746 |  | $ | 5,801,720 |  | $ | 5,747,301 |  | $ | 5,739,323 |  | $ | 5,687,848 |
Asset quality: |  |  |  |  |
Nonperforming assets: |  |  |  |  |
Accruing loans - 90 days and over past due | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
Nonaccrual loans | 45,597 |  | 37,683 |  | 37,697 |  | 39,854 |  | 39,882 |
Total nonperforming loans | 45,597 |  | 37,683 |  | 37,697 |  | 39,854 |  | 39,882 |
Nonaccrual loans held-for-sale | — |  | — |  | — |  | — |  | — |
Other real estate owned | — |  | — |  | — |  | — |  | — |
Total nonperforming assets | $ | 45,597 |  | $ | 37,683 |  | $ | 37,697 |  | $ | 39,854 |  | $ | 39,882 |
Nonperforming loans (% total loans) | 0.78 | % | 0.64 | % | 0.65 | % | 0.69 | % | 0.70 | %
Nonperforming assets (% total assets) | 0.59 | % | 0.49 | % | 0.49 | % | 0.51 | % | 0.52 | %
Classified loans | $ | 133,451 |  | $ | 125,790 |  | $ | 132,216 |  | $ | 119,534 |  | $ | 118,700 |
Allowance for credit losses on loans (ACL): |  |  |  |  |
ACL to total loans | 0.79 | % | 0.76 | % | 0.77 | % | 0.78 | % | 0.78 | %
ACL to nonperforming loans | 101.30 | % | 117.97 | % | 117.93 | % | 112.72 | % | 112.68 | %
Net charge-offs | $ | 49 |  | $ | 368 |  | $ | 573 |  | $ | 124 |  | $ | 3,518 |
Average net charge-off rate (annualized) | 0.00 | % | 0.03 | % | 0.04 | % | 0.01 | % | 0.25 | %

14

Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)

(Dollars in Thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024
Funding composition: |  |  |  |  |
Deposits: |  |  |  |  |
Non-interest-bearing deposits | $ | 582,045 |  | $ | 587,118 |  | $ | 601,510 |  | $ | 592,099 |  | $ | 598,367 |
Interest-bearing demand | 2,362,222 |  | 2,410,925 |  | 2,380,408 |  | 2,247,685 |  | 2,308,915 |
Savings | 754,376 |  | 758,239 |  | 742,266 |  | 681,709 |  | 643,481 |
Certificates of deposit (retail) | 1,218,920 |  | 1,218,479 |  | 1,213,887 |  | 1,215,746 |  | 1,199,127 |
Certificates of deposit (brokered) | 757,654 |  | 732,587 |  | 732,989 |  | 733,273 |  | 408,234 |
Interest-bearing deposits | 5,093,172 |  | 5,120,230 |  | 5,069,550 |  | 4,878,413 |  | 4,559,757 |
Total deposits | 5,675,217 |  | 5,707,348 |  | 5,671,060 |  | 5,470,512 |  | 5,158,124 |
Borrowings: |  |  |  |  |
Federal Home Loan Bank advances | 1,106,491 |  | 1,028,976 |  | 1,028,949 |  | 1,209,888 |  | 1,534,789 |
Overnight borrowings | 150,000 |  | 185,000 |  | 230,000 |  | 270,000 |  | 175,000 |
Total borrowings | 1,256,491 |  | 1,213,976 |  | 1,258,949 |  | 1,479,888 |  | 1,709,789 |
Total funding | $ | 6,931,708 |  | $ | 6,921,324 |  | $ | 6,930,009 |  | $ | 6,950,400 |  | $ | 6,867,913 |
Loans as a % of deposits | 101.7 | % | 101.8 | % | 101.4 | % | 105.1 | % | 110.4 | %
Deposits as a % of total funding | 81.9 | % | 82.5 | % | 81.8 | % | 78.7 | % | 75.1 | %
Borrowings as a % of total funding | 18.1 | % | 17.5 | % | 18.2 | % | 21.3 | % | 24.9 | %
Uninsured deposits: |  |  |  |  |
Uninsured deposits (reported) (1) | $ | 1,989,095 |  | $ | 1,959,070 |  | $ | 1,935,607 |  | $ | 1,799,726 |  | $ | 1,772,623 |
Uninsured deposits (adjusted) (2) | $ | 813,780 |  | $ | 799,238 |  | $ | 797,721 |  | $ | 773,375 |  | $ | 764,447 |

_________________________
(1)Uninsured deposits of Kearny Bank.
(2)Uninsured deposits of Kearny Bank adjusted to exclude deposits of its wholly-owned subsidiary and its holding company and collateralized deposits of state and local governments.
15

Kearny Financial Corp.
Consolidated Statements of Income (Loss)
(Unaudited)

| Three Months Ended
(Dollars and Shares in Thousands, Except Per Share Data) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024
Interest income |  |  |  |  |
Loans | $ | 66,485 |  | $ | 64,768 |  | $ | 65,408 |  | $ | 66,331 |  | $ | 65,819 |
Taxable investment securities | 12,322 |  | 12,738 |  | 13,803 |  | 14,384 |  | 14,802 |
Tax-exempt investment securities | 49 |  | 55 |  | 59 |  | 71 |  | 80 |
Other interest-earning assets | 1,549 |  | 1,773 |  | 2,215 |  | 2,466 |  | 2,289 |
Total interest income | 80,405 |  | 79,334 |  | 81,485 |  | 83,252 |  | 82,990 |
Interest expense |  |  |  |  |
Deposits | 33,607 |  | 34,912 |  | 36,721 |  | 35,018 |  | 32,187 |
Borrowings | 10,955 |  | 10,380 |  | 12,152 |  | 15,788 |  | 17,527 |
Total interest expense | 44,562 |  | 45,292 |  | 48,873 |  | 50,806 |  | 49,714 |
Net interest income | 35,843 |  | 34,042 |  | 32,612 |  | 32,446 |  | 33,276 |
Provision for credit losses | 1,785 |  | 366 |  | 107 |  | 108 |  | 3,527 |
Net interest income after provision for credit losses | 34,058 |  | 33,676 |  | 32,505 |  | 32,338 |  | 29,749 |
Non-interest income |  |  |  |  |
Fees and service charges | 655 |  | 573 |  | 627 |  | 635 |  | 580 |
Gain on sale of loans | 190 |  | 112 |  | 304 |  | 200 |  | 111 |
Income from bank owned life insurance | 2,869 |  | 2,617 |  | 2,619 |  | 2,567 |  | 3,209 |
Electronic banking fees and charges | 442 |  | 391 |  | 493 |  | 391 |  | 1,130 |
Other income | 835 |  | 869 |  | 830 |  | 833 |  | 776 |
Total non-interest income | 4,991 |  | 4,562 |  | 4,873 |  | 4,626 |  | 5,806 |
Non-interest expense |  |  |  |  |
Salaries and employee benefits | 18,093 |  | 17,700 |  | 17,579 |  | 17,498 |  | 17,266 |
Net occupancy expense of premises | 2,820 |  | 3,075 |  | 2,831 |  | 2,798 |  | 2,738 |
Equipment and systems | 4,030 |  | 3,921 |  | 3,892 |  | 3,860 |  | 3,785 |
Advertising and marketing | 615 |  | 609 |  | 311 |  | 342 |  | 480 |
Federal deposit insurance premium | 1,395 |  | 1,450 |  | 1,503 |  | 1,563 |  | 1,532 |
Directors' compensation | 307 |  | 326 |  | 361 |  | 361 |  | 360 |
Goodwill impairment | — |  | — |  | — |  | — |  | 97,370 |
Other expense | 3,633 |  | 3,309 |  | 3,084 |  | 3,364 |  | 3,020 |
Total non-interest expense | 30,893 |  | 30,390 |  | 29,561 |  | 29,786 |  | 126,551 |
Income (loss) before income taxes | 8,156 |  | 7,848 |  | 7,817 |  | 7,178 |  | (90,996) |
Income taxes | 1,387 |  | 1,200 |  | 1,251 |  | 1,086 |  | (917) |
Net income (loss) | $ | 6,769 |  | $ | 6,648 |  | $ | 6,566 |  | $ | 6,092 |  | $ | (90,079) |
Net income (loss) per common share (EPS) |  |  |  |  |
Basic | $ | 0.11 |  | $ | 0.11 |  | $ | 0.11 |  | $ | 0.10 |  | $ | (1.45) |
Diluted | $ | 0.11 |  | $ | 0.11 |  | $ | 0.10 |  | $ | 0.10 |  | $ | (1.45) |
Dividends declared |  |  |  |  |
Cash dividends declared per common share | $ | 0.11 |  | $ | 0.11 |  | $ | 0.11 |  | $ | 0.11 |  | $ | 0.11 |
Cash dividends declared | $ | 6,946 |  | $ | 6,933 |  | $ | 6,933 |  | $ | 6,896 |  | $ | 6,903 |
Dividend payout ratio | 102.6 | % | 104.3 | % | 105.6 | % | 113.2 | % | -7.7 | %
Weighted average number of common shares outstanding |  |  |  |  |
Basic | 62,597 | 62,548 | 62,443 | 62,389 | 62,254
Diluted | 62,755 | 62,713 | 62,576 | 62,420 | 62,330

16

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)

| Three Months Ended
(Dollars in Thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024
Assets |  |  |  |  |
Interest-earning assets: |  |  |  |  |
Loans receivable, including loans held-for-sale | $ | 5,830,421 |  | $ | 5,805,045 |  | $ | 5,762,053 |  | $ | 5,761,593 |  | $ | 5,743,008 |
Taxable investment securities | 1,227,825 |  | 1,251,612 |  | 1,285,800 |  | 1,314,945 |  | 1,343,541 |
Tax-exempt investment securities | 8,039 |  | 9,135 |  | 9,711 |  | 12,244 |  | 13,737 |
Other interest-earning assets | 117,622 |  | 110,736 |  | 116,354 |  | 131,981 |  | 128,257 |
Total interest-earning assets | 7,183,907 |  | 7,176,528 |  | 7,173,918 |  | 7,220,763 |  | 7,228,543 |
Non-interest-earning assets | 454,975 |  | 457,206 |  | 459,982 |  | 467,670 |  | 466,537 |
Total assets | $ | 7,638,882 |  | $ | 7,633,734 |  | $ | 7,633,900 |  | $ | 7,688,433 |  | $ | 7,695,080 |
Liabilities and Stockholders' Equity |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |
Deposits: |  |  |  |  |
Interest-bearing demand | $ | 2,342,523 |  | $ | 2,405,974 |  | $ | 2,314,378 |  | $ | 2,282,608 |  | $ | 2,310,521 |
Savings | 754,192 |  | 751,243 |  | 711,801 |  | 668,240 |  | 631,622 |
Certificates of deposit (retail) | 1,215,661 |  | 1,215,767 |  | 1,216,948 |  | 1,203,770 |  | 1,208,101 |
Certificates of deposit (brokered) | 744,345 |  | 730,612 |  | 730,773 |  | 551,819 |  | 405,697 |
Total interest-bearing deposits | 5,056,721 |  | 5,103,596 |  | 4,973,900 |  | 4,706,437 |  | 4,555,941 |
Borrowings: |  |  |  |  |
Federal Home Loan Bank advances | 1,083,902 |  | 1,028,958 |  | 1,085,455 |  | 1,325,583 |  | 1,507,192 |
Other borrowings | 107,582 |  | 93,389 |  | 156,522 |  | 237,011 |  | 228,461 |
Total borrowings | 1,191,484 |  | 1,122,347 |  | 1,241,977 |  | 1,562,594 |  | 1,735,653 |
Total interest-bearing liabilities | 6,248,205 |  | 6,225,943 |  | 6,215,877 |  | 6,269,031 |  | 6,291,594 |
Non-interest-bearing liabilities: |  |  |  |  |
Non-interest-bearing deposits | 582,085 |  | 602,647 |  | 604,915 |  | 599,095 |  | 589,438 |
Other non-interest-bearing liabilities | 64,405 |  | 59,919 |  | 65,258 |  | 69,629 |  | 62,978 |
Total non-interest-bearing liabilities | 646,490 |  | 662,566 |  | 670,173 |  | 668,724 |  | 652,416 |
Total liabilities | 6,894,695 |  | 6,888,509 |  | 6,886,050 |  | 6,937,755 |  | 6,944,010 |
Stockholders' equity | 744,187 |  | 745,225 |  | 747,850 |  | 750,678 |  | 751,070 |
Total liabilities and stockholders' equity | $ | 7,638,882 |  | $ | 7,633,734 |  | $ | 7,633,900 |  | $ | 7,688,433 |  | $ | 7,695,080 |
Average interest-earning assets to average interest-bearing liabilities | 114.98 | % | 115.27 | % | 115.41 | % | 115.18 | % | 114.89 | %

17

Kearny Financial Corp.
Performance Ratio Highlights

| Three Months Ended
| June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024
Average yield on interest-earning assets: |  |  |  |  |
Loans receivable, including loans held-for-sale | 4.56 | % | 4.46 | % | 4.54 | % | 4.61 | % | 4.58 | %
Taxable investment securities | 4.01 | % | 4.07 | % | 4.29 | % | 4.38 | % | 4.41 | %
Tax-exempt investment securities (1) | 2.43 | % | 2.43 | % | 2.42 | % | 2.32 | % | 2.32 | %
Other interest-earning assets | 5.27 | % | 6.40 | % | 7.62 | % | 7.47 | % | 7.14 | %
Total interest-earning assets | 4.48 | % | 4.42 | % | 4.54 | % | 4.61 | % | 4.59 | %
Average cost of interest-bearing liabilities: |  |  |  |  |
Deposits: |  |  |  |  |
Interest-bearing demand | 2.63 | % | 2.73 | % | 2.96 | % | 3.13 | % | 3.06 | %
Savings | 1.33 | % | 1.30 | % | 1.29 | % | 1.05 | % | 0.63 | %
Certificates of deposit (retail) | 3.56 | % | 3.73 | % | 4.06 | % | 4.12 | % | 3.95 | %
Certificates of deposit (brokered) | 2.62 | % | 2.58 | % | 2.70 | % | 2.18 | % | 1.59 | %
Total interest-bearing deposits | 2.66 | % | 2.74 | % | 2.95 | % | 2.98 | % | 2.83 | %
Borrowings: |  |  |  |  |
Federal Home Loan Bank advances | 3.60 | % | 3.63 | % | 3.78 | % | 3.82 | % | 3.86 | %
Other borrowings | 4.45 | % | 4.41 | % | 4.88 | % | 5.28 | % | 5.24 | %
Total borrowings | 3.68 | % | 3.70 | % | 3.91 | % | 4.04 | % | 4.04 | %
Total interest-bearing liabilities | 2.85 | % | 2.91 | % | 3.15 | % | 3.24 | % | 3.16 | %
Interest rate spread (2) | 1.62 | % | 1.51 | % | 1.39 | % | 1.37 | % | 1.43 | %
Net interest margin (3) | 2.00 | % | 1.90 | % | 1.82 | % | 1.80 | % | 1.84 | %
Non-interest income to average assets (annualized) | 0.26 | % | 0.24 | % | 0.26 | % | 0.24 | % | 0.30 | %
Non-interest expense to average assets (annualized) | 1.62 | % | 1.59 | % | 1.55 | % | 1.55 | % | 6.58 | %
Efficiency ratio (4) | 75.66 | % | 78.72 | % | 78.86 | % | 80.35 | % | 323.81 | %
Return on average assets (annualized) | 0.35 | % | 0.35 | % | 0.34 | % | 0.32 | % | -4.68 | %
Return on average equity (annualized) | 3.64 | % | 3.57 | % | 3.51 | % | 3.25 | % | -47.97 | %
Return on average tangible equity (annualized) (5) | 4.36 | % | 4.28 | % | 4.21 | % | 3.89 | % | 3.33 | %

_________________________
(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.
18

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) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024
Adjusted net income: |  |  |  |  |
Net income (loss) (GAAP) | $ | 6,769 |  | $ | 6,648 |  | $ | 6,566 |  | $ | 6,092 |  | $ | (90,079) |
Non-recurring transactions - net of tax: |  |  |  |  |
Net effect of bank-owned life insurance restructure | — |  | — |  | — |  | — |  | 392 |
Goodwill impairment | — |  | — |  | — |  | — |  | 95,283 |
Adjusted net income | $ | 6,769 |  | $ | 6,648 |  | $ | 6,566 |  | $ | 6,092 |  | $ | 5,596 |
Calculation of pre-tax, pre-provision net revenue: |  |  |  |  |
Net income (loss) (GAAP) | $ | 6,769 |  | $ | 6,648 |  | $ | 6,566 |  | $ | 6,092 |  | $ | (90,079) |
Adjustments to net income (GAAP): |  |  |  |  |
Provision for income taxes | 1,387 |  | 1,200 |  | 1,251 |  | 1,086 |  | (917) |
Provision for credit losses | 1,785 |  | 366 |  | 107 |  | 108 |  | 3,527 |
Pre-tax, pre-provision net revenue (non-GAAP) | $ | 9,941 |  | $ | 8,214 |  | $ | 7,924 |  | $ | 7,286 |  | $ | (87,469) |
Adjusted earnings per share: |  |  |  |  |
Weighted average common shares - basic | 62,597 | 62,548 | 62,443 | 62,389 | 62,254
Weighted average common shares - diluted | 62,755 | 62,713 | 62,576 | 62,420 | 62,330
Earnings per share - basic (GAAP) | $ | 0.11 |  | $ | 0.11 |  | $ | 0.11 |  | $ | 0.10 |  | $ | (1.45) |
Earnings per share - diluted (GAAP) | $ | 0.11 |  | $ | 0.11 |  | $ | 0.10 |  | $ | 0.10 |  | $ | (1.45) |
Adjusted earnings per share - basic (non-GAAP) | $ | 0.11 |  | $ | 0.11 |  | $ | 0.11 |  | $ | 0.10 |  | $ | 0.09 |
Adjusted earnings per share - diluted (non-GAAP) | $ | 0.11 |  | $ | 0.11 |  | $ | 0.10 |  | $ | 0.10 |  | $ | 0.09 |
Pre-tax, pre-provision net revenue per share: |  |  |  |  |
Pre-tax, pre-provision net revenue per share - basic (non-GAAP) | $ | 0.16 |  | $ | 0.13 |  | $ | 0.13 |  | $ | 0.12 |  | $ | (1.41) |
Pre-tax, pre-provision net revenue per share - diluted (non-GAAP) | $ | 0.16 |  | $ | 0.13 |  | $ | 0.13 |  | $ | 0.12 |  | $ | (1.41) |
Adjusted return on average assets: |  |  |  |  |
Total average assets | $ | 7,638,882 |  | $ | 7,633,734 |  | $ | 7,633,900 |  | $ | 7,688,433 |  | $ | 7,695,080 |
Return on average assets (GAAP) | 0.35 | % | 0.35 | % | 0.34 | % | 0.32 | % | -4.68 | %
Adjusted return on average assets (non-GAAP) | 0.35 | % | 0.35 | % | 0.34 | % | 0.32 | % | 0.29 | %
Adjusted return on average equity: |  |  |  |  |
Total average equity | $ | 744,187 |  | $ | 745,225 |  | $ | 747,850 |  | $ | 750,678 |  | $ | 751,070 |
Return on average equity (GAAP) | 3.64 | % | 3.57 | % | 3.51 | % | 3.25 | % | -47.97 | %
Adjusted return on average equity (non-GAAP) | 3.64 | % | 3.57 | % | 3.51 | % | 3.25 | % | 2.98 | %

19

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

| Three Months Ended
(Dollars and Shares in Thousands, Except Per Share Data) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024
Adjusted return on average tangible equity: |  |  |  |  |
Total average equity | $ | 744,187 |  | $ | 745,225 |  | $ | 747,850 |  | $ | 750,678 |  | $ | 751,070 |
Less: average goodwill | (113,525) |  | (113,525) |  | (113,525) |  | (113,525) |  | (113,525) |
Less: average other intangible assets | (1,513) |  | (1,636) |  | (1,761) |  | (1,886) |  | (2,006) |
Total average tangible equity | $ | 629,149 |  | $ | 630,064 |  | $ | 632,564 |  | $ | 635,267 |  | $ | 635,539 |
Return on average tangible equity (non-GAAP) | 4.36 | % | 4.28 | % | 4.21 | % | 3.89 | % | 3.33 | %
Adjusted return on average tangible equity (non-GAAP) | 4.36 | % | 4.28 | % | 4.21 | % | 3.89 | % | 3.58 | %
Adjusted non-interest expense ratio: |  |  |  |  |
Non-interest expense (GAAP) | $ | 30,893 |  | $ | 30,390 |  | $ | 29,561 |  | $ | 29,786 |  | $ | 126,551 |
Non-recurring transactions: |  |  |  |  |
Goodwill impairment | — |  | — |  | — |  | — |  | (97,370) |
Non-interest expense (non-GAAP) | $ | 30,893 |  | $ | 30,390 |  | $ | 29,561 |  | $ | 29,786 |  | $ | 29,181 |
Non-interest expense ratio (GAAP) | 1.62 | % | 1.59 | % | 1.55 | % | 1.55 | % | 6.58 | %
Adjusted non-interest expense ratio (non-GAAP) | 1.62 | % | 1.59 | % | 1.55 | % | 1.55 | % | 1.52 | %
Adjusted efficiency ratio: |  |  |  |  |
Non-interest expense (non-GAAP) | $ | 30,893 |  | $ | 30,390 |  | $ | 29,561 |  | $ | 29,786 |  | $ | 29,181 |
Net interest income (GAAP) | $ | 35,843 |  | $ | 34,042 |  | $ | 32,612 |  | $ | 32,446 |  | $ | 33,276 |
Total non-interest income (GAAP) | 4,991 |  | 4,562 |  | 4,873 |  | 4,626 |  | 5,806 |
Non-recurring transactions: |  |  |  |  |
Net effect of bank-owned life insurance restructure | — |  | — |  | — |  | — |  | 392 |
Total revenue (non-GAAP) | $ | 40,834 |  | $ | 38,604 |  | $ | 37,485 |  | $ | 37,072 |  | $ | 39,474 |
Efficiency ratio (GAAP) | 75.66 | % | 78.72 | % | 78.86 | % | 80.35 | % | 323.81 | %
Adjusted efficiency ratio (non-GAAP) | 75.66 | % | 78.72 | % | 78.86 | % | 80.35 | % | 73.92 | %

20

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

| Year Ended
(Dollars and Shares in Thousands, Except Per Share Data) | June 30, 2025 |  | June 30, 2024
Adjusted net income: |  |  |
Net income (loss) (GAAP) | $ | 26,075 |  |  | $ | (86,667) |
Non-recurring transactions - net of tax: |  |  |
Net effect of sale and call of securities | — |  |  | 12,876 |
Net effect of bank-owned life insurance contract restructure | — |  |  | 6,678 |
Goodwill impairment | — |  |  | 95,283 |
Adjusted net income | $ | 26,075 |  |  | $ | 28,170 |
Calculation of pre-tax, pre-provision net revenue: |  |  |
Net income (loss) (GAAP) | $ | 26,075 |  |  | $ | (86,667) |
Adjustments to net income (GAAP): |  |  |
Provision for income taxes | 4,924 |  |  | 5,891 |
Provision for credit losses | 2,366 |  |  | 6,226 |
Pre-tax, pre-provision net revenue (non-GAAP) | $ | 33,365 |  |  | $ | (74,550) |
Adjusted earnings per share: |  |  |
Weighted average common shares - basic | 62,508 |  | 62,444
Weighted average common shares - diluted | 62,716 |  | 62,444
Earnings per share - basic (GAAP) | $ | 0.42 |  |  | $ | (1.39) |
Earnings per share - diluted (GAAP) | $ | 0.42 |  |  | $ | (1.39) |
Adjusted earnings per share - basic (non-GAAP) | $ | 0.42 |  |  | $ | 0.45 |
Adjusted earnings per share - diluted (non-GAAP) | $ | 0.42 |  |  | $ | 0.45 |
Pre-tax, pre-provision net revenue per share: |  |  |
Pre-tax, pre-provision net revenue per share - basic (non-GAAP) | $ | 0.53 |  |  | $ | (1.19) |
Pre-tax, pre-provision net revenue per share - diluted (non-GAAP) | $ | 0.53 |  |  | $ | (1.19) |
Adjusted return on average assets: |  |  |
Total average assets | $ | 7,648,846 |  |  | $ | 7,878,292 |
Return on average assets (GAAP) | 0.34 | % |  | -1.10 | %
Adjusted return on average assets (non-GAAP) | 0.34 | % |  | 0.36 | %
Adjusted return on average equity: |  |  |
Total average equity | $ | 747,002 |  |  | $ | 824,317 |
Return on average equity (GAAP) | 3.49 | % |  | -10.51 | %
Adjusted return on average equity (non-GAAP) | 3.49 | % |  | 3.42 | %
Adjusted return on average tangible equity: |  |  |
Total average equity | $ | 747,002 |  |  | $ | 824,317 |
Less: average goodwill | (113,525) |  |  | (186,685) |
Less: average other intangible assets | (1,700) |  |  | (2,209) |
Total average tangible equity | $ | 631,777 |  |  | $ | 635,423 |
Return on average tangible equity (non-GAAP) | 4.18 | % |  | -13.64 | %
Adjusted return on average tangible equity (non-GAAP) | 4.18 | % |  | 4.43 | %

21

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

| Year Ended
(Dollars in Thousands) | June 30, 2025 |  | June 30, 2024
Adjusted non-interest expense ratio: |  |  |
Non-interest expense (GAAP) | $ | 120,630 |  |  | $ | 215,151 |
Non-routine transactions: |  |  |
Goodwill impairment | — |  |  | (97,370) |
Non-interest expense (non-GAAP) | $ | 120,630 |  |  | $ | 117,781 |
Non-interest expense ratio (GAAP) | 1.58 | % |  | 2.73 | %
Adjusted non-interest expense ratio (non-GAAP) | 1.58 | % |  | 1.50 | %
Adjusted efficiency ratio: |  |  |
Non-interest expense (non-GAAP) | $ | 120,630 |  |  | $ | 117,781 |
Net interest income (GAAP) | $ | 134,943 |  |  | $ | 142,594 |
Total non-interest income (GAAP) | 19,052 |  |  | (1,993) |
Non-routine transactions: |  |  |
Net effect of sale and call of securities | — |  |  | 18,135 |
Net effect of bank-owned life insurance contract restructure | — |  |  | 965 |
Total revenue (non-GAAP) | $ | 153,995 |  |  | $ | 159,701 |
Efficiency ratio (GAAP) | 78.33 | % |  | 153.02 | %
Adjusted efficiency ratio (non-GAAP) | 78.33 | % |  | 73.75 | %

22