EX-99.1 2 krny-20250930xexx991.htm EX-99.1
Exhibit 99.1
FOR IMMEDIATE RELEASE
October 23, 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 FIRST QUARTER FISCAL 2026 RESULTS
AND DECLARATION OF CASH DIVIDEND
Fairfield, N.J., October 23, 2025 – Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), reported net income for the quarter ended September 30, 2025 of $9.5 million, or $0.15 per diluted share, compared to $6.8 million, or $0.11 per diluted share, for the quarter ended June 30, 2025.
The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on November 19, 2025, to stockholders of record as of November 5, 2025.
Craig L. Montanaro, President and Chief Executive Officer, commented, “We are pleased to report a strong quarter that underscores our continued momentum in profitability growth. Net interest margin expansion of 10 basis points, in conjunction with solid credit quality and well-controlled expenses, led to a 36% quarter-over-quarter increase in earnings per share. Our proactive balance sheet management, combined with the expected tailwinds from anticipated reductions in the federal funds rate, positions us well for sustained performance in the quarters ahead.”
Mr. Montanaro continued, “Strategically, we advanced several key initiatives designed to enhance operational efficiency and drive shareholder value. The launch of our partnership with The Lab Consulting—a leading provider of end-to-end robotic process automation—represents a key milestone in our efforts to elevate the client experience and scale revenue efficiently. Additionally, the execution of our previously announced branch consolidations enables us to reallocate capital toward higher-return opportunities, reinforcing our commitment to long-term growth and value creation.”
First Quarter Highlights
•Net interest margin expanded by 10 basis points to 2.10%, while net interest income increased 5.2% to $37.7 million.
•Net income per share increased 36.4% to $0.15 per diluted share, and pre-tax, pre-provision earnings per share increased 18.8% to $0.19 per diluted share.
•The Company continued its loan portfolio diversification efforts, growing construction and commercial business loans by 26.8% and 10.2%, respectively, on an annualized basis.
•The Company is consolidating three branches as part of an optimization of its real estate footprint, streamlining to 40 locations by October 2025.
•In September 2025, the Company entered into a strategic partnership with The Lab Consulting to deploy advanced automation and analytics, designed to enhance operational efficiency, elevate client service, and deliver shareholder value.
Balance Sheet
•Total assets were $7.65 billion at September 30, 2025, a decrease of $92.4 million, or 1.2%, from June 30, 2025.
•Investment securities totaled $1.13 billion at September 30, 2025, consistent with the balance reported at June 30, 2025.
•Loans receivable totaled $5.77 billion at September 30, 2025, a decrease of $45.5 million, or 0.8%, from June 30, 2025, primarily reflecting a decrease in multifamily mortgage loans, partially offset by increases in construction and commercial and industrial loans.
•Deposits were $5.63 billion at September 30, 2025, a decrease of $43.3 million, or 0.8%, from June 30, 2025. This decrease was primarily driven by declines in interest bearing demand deposits and certificates of deposits (“CDs”).
•Borrowings were $1.21 billion at September 30, 2025, a decrease of $50.0 million, or 4.0%, from June 30, 2025, reflecting reductions in Federal Home Loan Bank (“FHLB”) advances.
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•At September 30, 2025, the Company maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.54 billion, representing 33.2% of total assets.
Earnings
Net Interest Income and Net Interest Margin
•Net interest margin expanded by 10 basis points to 2.10% for the quarter ended September 30, 2025. The increase for the quarter was primarily driven by improved asset yields and reductions in borrowings, partially offset by lower average balances on interest-earning assets and higher costs on interest-bearing liabilities.
•For the quarter ended September 30, 2025, net interest income increased $1.9 million to $37.7 million from $35.8 million for the quarter ended June 30, 2025. Included in net interest income for the quarters ended September 30, 2025 and June 30, 2025, respectively, was purchase accounting accretion of $601,000 and $511,000, and loan prepayment penalty income of $490,000 and $217,000.
Non-Interest Income
•For the quarter ended September 30, 2025, non-interest income increased $856,000, or 17.2%, to $5.8 million from $5.0 million for the quarter ended June 30, 2025, primarily driven by a non-recurring pre-tax gain of $749,000 on the sale of property held for sale in the current period. Excluding this item, non-interest income increased $107,000, or 2.1%, to $5.1 million for the quarter ended September 30, 2025.
•Fees and service charges increased $237,000, or 36.2%, to $892,000 for the quarter ended September 30, 2025 from $655,000 for the quarter ended June 30, 2025. The increase primarily reflected higher deposit and branch related fee income.
•Income from BOLI decreased $180,000, or 6.3%, to $2.7 million for the quarter ended September 30, 2025 from $2.9 million for the quarter ended June 30, 2025, primarily driven by the absence of $223,000 in non-recurring payments recorded in the prior period. No such non-recurring items were recorded in the current period.
Non-Interest Expense
•For the quarter ended September 30, 2025, non-interest expense increased $773,000, or 2.5%, to $31.7 million from $30.9 million for the quarter ended June 30, 2025, primarily driven by increases in salary and benefits and net occupancy, partially offset by declines in federal deposit insurance premiums and other expense.
•Salary and benefits expense increased $652,000 to $18.7 million for the quarter ended September 30, 2025 from $18.1 million for the quarter ended June 30, 2025, primarily driven by annual merit increases and higher non-recurring payroll taxes of $185,000 associated with annual incentive compensation.
•Net occupancy expense of premises increased $487,000 to $3.3 million for the quarter ended September 30, 2025 from $2.8 million for the quarter ended June 30, 2025, primarily driven by a non-recurring pre-tax expense of $250,000 associated with our previously announced branch consolidations and non-recurring branch maintenance expenses of $102,000. Excluding these items, net occupancy expense of premises increased $135,000 to $3.0 million, primarily driven by higher repairs and other maintenance expenses.
•Federal deposit insurance premium expense decreased $94,000 to $1.3 million for the quarter ended September 30, 2025 from $1.4 million for the quarter ended June 30, 2025, primarily driven by higher capital ratios.
•Other expense decreased $163,000 to $3.5 million for the quarter September 30, 2025 from $3.6 million for the quarter ended June 30, 2025, primarily driven the absence of non-recurring professional fees incurred in the prior period, partially offset by elevated fraud losses in the current period. The remaining changes in the other components of non-interest expense between comparative periods reflected normal operating fluctuations within those line items.
Income Taxes
•Income tax expense totaled $2.5 million for the quarter ended September 30, 2025 compared to $1.4 million for the quarter ended June 30, 2025, resulting in an effective tax rate of 20.6% and 17.0%, respectively. The increase in income tax expense was due to higher pre-tax income in the current quarter coupled with the tax cost associated with the vesting of certain stock-based compensation awards.
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Asset Quality
•The balance of non-performing assets increased to $64.6 million, or 0.84% of total assets, at September 30, 2025 from $45.6 million, or 0.59% of total assets, at June 30, 2025. The increase was driven by a single construction loan that became 90 days past due but remains on accrual status. The loan is secured by collateral under contract for sale, with all covenants satisfied and a loan-to-sale price ratio of 72%. No provision for credit losses related to this loan was recorded as of September 30, 2025, as full repayment is expected upon completion of the sale.
•Net charge-offs totaled $1.0 million, or 0.07% of average loans, on an annualized basis, for the quarter ended September 30, 2025, compared to $49,000, or less than 0.01% of average loans, on an annualized basis, for the quarter ended June 30, 2025. The net charge-offs recorded for the quarter ended September 30, 2025 were primarily driven by a wholesale commercial and industrial (“C&I”) loan, representing the final wholesale C&I loan in the portfolio. This charge-off had previously been individually reserved for within the allowance for credit losses (“ACL”).
•For the quarter ended September 30, 2025, the Company recorded a reversal of credit losses of $82,000, compared to a provision for credit losses of $1.8 million for the quarter ended June 30, 2025. The reversal for the quarter ended September 30, 2025 was largely driven by decreases in the balance of loans receivable, partially offset by qualitative risk factor adjustments.
•The ACL was $45.1 million, or 0.78% of total loans, at September 30, 2025, a decrease of $1.1 million from $46.2 million, or 0.79% of total loans, at June 30, 2025. The decrease in the ACL from June 30, 2025 was largely attributable to a reduction in reserves for individually evaluated loans, resulting from the charge-offs noted above.
Capital
•For the quarter ended September 30, 2025, book value per share increased $0.08, or 0.7%, to $11.63 while tangible book value per share increased $0.09, or 0.9%, to $9.86.
•At September 30, 2025, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $71.5 million, partially offset by after-tax unrealized gains on derivatives of $3.1 million. After-tax net unrecognized losses on securities held to maturity of $8.4 million were not reflected in total stockholders’ equity.
•At September 30, 2025, the Company’s tangible equity to tangible assets ratio equaled 8.47% and the regulatory capital ratios of both the Company and the Bank were in excess of the levels required by federal banking regulators to be classified as “well-capitalized” under regulatory guidelines.
This earnings release should be read in conjunction with Kearny Financial Corp.’s Q1 2026 Investor Presentation, a copy of which is available through the Investor Relations link located at the bottom of the page of our website at 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) | September 30, 2025 | June 30, 2025 | Variance or Change | Variance or Change Pct.
Assets |  |  |  |
Cash and cash equivalents | $ | 130,139 |  | $ | 167,269 |  | $ | (37,130) |  | -22.2 | %
Securities available for sale | 1,016,182 |  | 1,012,969 |  | 3,213 |  | 0.3 | %
Securities held to maturity | 116,681 |  | 120,217 |  | (3,536) |  | -2.9 | %
Loans held-for-sale | 6,650 |  | 5,931 |  | 719 |  | 12.1 | %
Loans receivable | 5,767,419 |  | 5,812,937 |  | (45,518) |  | -0.8 | %
Less: allowance for credit losses on loans | (45,060) |  | (46,191) |  | (1,131) |  | -2.4 | %
Net loans receivable | 5,722,359 |  | 5,766,746 |  | (44,387) |  | -0.8 | %
Premises and equipment | 43,222 |  | 43,897 |  | (675) |  | -1.5 | %
Federal Home Loan Bank stock | 62,011 |  | 64,261 |  | (2,250) |  | -3.5 | %
Accrued interest receivable | 29,460 |  | 28,098 |  | 1,362 |  | 4.8 | %
Goodwill | 113,525 |  | 113,525 |  | — |  | — | %
Core deposit intangible | 1,317 |  | 1,436 |  | (119) |  | -8.3 | %
Bank owned life insurance | 307,248 |  | 304,717 |  | 2,531 |  | 0.8 | %
Deferred income taxes, net | 51,587 |  | 55,203 |  | (3,616) |  | -6.6 | %
Other assets | 47,629 |  | 56,181 |  | (8,552) |  | -15.2 | %
Total assets | $ | 7,648,010 |  | $ | 7,740,450 |  | $ | (92,440) |  | -1.2 | %
Liabilities |  |  |  |
Deposits: |  |  |  |
Non-interest-bearing | $ | 578,481 |  | $ | 582,045 |  | $ | (3,564) |  | -0.6 | %
Interest-bearing | 5,053,401 |  | 5,093,172 |  | (39,771) |  | -0.8 | %
Total deposits | 5,631,882 |  | 5,675,217 |  | (43,335) |  | -0.8 | %
Borrowings | 1,206,497 |  | 1,256,491 |  | (49,994) |  | -4.0 | %
Advance payments by borrowers for taxes | 19,261 |  | 19,317 |  | (56) |  | -0.3 | %
Other liabilities | 37,166 |  | 43,463 |  | (6,297) |  | -14.5 | %
Total liabilities | 6,894,806 |  | 6,994,488 |  | (99,682) |  | -1.4 | %
Stockholders' Equity |  |  |  |
Common stock | 648 |  | 646 |  | 2 |  | 0.3 | %
Paid-in capital | 494,490 |  | 494,546 |  | (56) |  | 0.0 | %
Retained earnings | 344,287 |  | 341,744 |  | 2,543 |  | 0.7 | %
Unearned ESOP shares | (18,484) |  | (18,970) |  | 486 |  | 2.6 | %
Accumulated other comprehensive loss | (67,737) |  | (72,004) |  | 4,267 |  | 5.9 | %
Total stockholders' equity | 753,204 |  | 745,962 |  | 7,242 |  | 1.0 | %
Total liabilities and stockholders' equity | $ | 7,648,010 |  | $ | 7,740,450 |  | $ | (92,440) |  | -1.2 | %
Consolidated capital ratios |  |  |  |
Equity to assets | 9.85 | % | 9.64 | % | 0.21 | % |
Tangible equity to tangible assets (1) | 8.47 | % | 8.27 | % | 0.20 | % |
Share data |  |  |  |
Outstanding shares | 64,739 | 64,577 | 162 | 0.3 | %
Book value per share | $ | 11.63 |  | $ | 11.55 |  | $ | 0.08 |  | 0.7 | %
Tangible book value per share (2) | $ | 9.86 |  | $ | 9.77 |  | $ | 0.09 |  | 0.9 | %

_________________________
(1)Tangible equity equals total stockholders' equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.
(2)Tangible book value equals total stockholders' equity reduced by goodwill and core deposit intangible assets.
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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. |
September 30, 2025 | June 30, 2025 |
Interest income |  |  |  |  |
Loans | $ | 68,349 |  | $ | 66,485 |  | $ | 1,864 |  | 2.8 | % |
Taxable investment securities | 12,600 |  | 12,322 |  | 278 |  | 2.3 | % |
Tax-exempt investment securities | 41 |  | 49 |  | (8) |  | -16.3 | % |
Other interest-earning assets | 1,518 |  | 1,549 |  | (31) |  | -2.0 | % |
Total interest income | 82,508 |  | 80,405 |  | 2,103 |  | 2.6 | % |
Interest expense |  |  |  |  |
Deposits | 33,931 |  | 33,607 |  | 324 |  | 1.0 | % |
Borrowings | 10,873 |  | 10,955 |  | (82) |  | -0.7 | % |
Total interest expense | 44,804 |  | 44,562 |  | 242 |  | 0.5 | % |
Net interest income | 37,704 |  | 35,843 |  | 1,861 |  | 5.2 | % |
(Reversal of) provision for credit losses | (82) |  | 1,785 |  | (1,867) |  | -104.6 | % |
Net interest income after (reversal of) provision for credit losses | 37,786 |  | 34,058 |  | 3,728 |  | 10.9 | % |
Non-interest income |  |  |  |  |
Fees and service charges | 892 |  | 655 |  | 237 |  | 36.2 | % |
Gain on sale of loans | 199 |  | 190 |  | 9 |  | 4.7 | % |
Income from bank owned life insurance | 2,689 |  | 2,869 |  | (180) |  | -6.3 | % |
Electronic banking fees and charges | 416 |  | 442 |  | (26) |  | -5.9 | % |
Other income | 1,651 |  | 835 |  | 816 |  | 97.7 | % |
Total non-interest income | 5,847 |  | 4,991 |  | 856 |  | 17.2 | % |
Non-interest expense |  |  |  |  |
Salaries and employee benefits | 18,745 |  | 18,093 |  | 652 |  | 3.6 | % |
Net occupancy expense of premises | 3,307 |  | 2,820 |  | 487 |  | 17.3 | % |
Equipment and systems | 3,974 |  | 4,030 |  | (56) |  | -1.4 | % |
Advertising and marketing | 562 |  | 615 |  | (53) |  | -8.6 | % |
Federal deposit insurance premium | 1,301 |  | 1,395 |  | (94) |  | -6.7 | % |
Directors' compensation | 307 |  | 307 |  | — |  | — | % |
Other expense | 3,470 |  | 3,633 |  | (163) |  | -4.5 | % |
Total non-interest expense | 31,666 |  | 30,893 |  | 773 |  | 2.5 | % |
Income before income taxes | 11,967 |  | 8,156 |  | 3,811 |  | 46.7 | % |
Income taxes | 2,461 |  | 1,387 |  | 1,074 |  | 77.4 | % |
Net income | $ | 9,506 |  | $ | 6,769 |  | $ | 2,737 |  | 40.4 | % |
Net income per common share (EPS) |  |  |  |  |
Basic | $ | 0.15 |  | $ | 0.11 |  | $ | 0.04 |  |  |
Diluted | $ | 0.15 |  | $ | 0.11 |  | $ | 0.04 |  |  |
Dividends declared |  |  |  |  |
Cash dividends declared per common share | $ | 0.11 |  | $ | 0.11 |  | $ | — |  |  |
Cash dividends declared | $ | 6,963 |  | $ | 6,946 |  | $ | 17 |  |  |
Dividend payout ratio | 73.2 | % | 102.6 | % | -29.4 | % |  |
Weighted average number of common shares outstanding |  |  |  |  |
Basic | 62,741 | 62,597 | 144 |  |
Diluted | 62,951 | 62,755 | 196 |  |

5

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)

(Dollars in Thousands) | Three Months Ended | Variance or Change | Variance or Change Pct.
September 30, 2025 | June 30, 2025
Assets |  |  |  |
Interest-earning assets: |  |  |  |
Loans receivable, including loans held for sale | $ | 5,806,767 |  | $ | 5,830,421 |  | $ | (23,654) |  | -0.4 | %
Taxable investment securities | 1,236,705 |  | 1,227,825 |  | 8,880 |  | 0.7 | %
Tax-exempt investment securities | 6,856 |  | 8,039 |  | (1,183) |  | -14.7 | %
Other interest-earning assets | 115,776 |  | 117,622 |  | (1,846) |  | -1.6 | %
Total interest-earning assets | 7,166,104 |  | 7,183,907 |  | (17,803) |  | -0.2 | %
Non-interest-earning assets | 453,215 |  | 454,975 |  | (1,760) |  | -0.4 | %
Total assets | $ | 7,619,319 |  | $ | 7,638,882 |  | $ | (19,563) |  | -0.3 | %
Liabilities and Stockholders' Equity |  |  |  |
Interest-bearing liabilities: |  |  |  |
Deposits: |  |  |  |
Interest-bearing demand | $ | 2,343,809 |  | $ | 2,342,523 |  | $ | 1,286 |  | 0.1 | %
Savings | 754,244 |  | 754,192 |  | 52 |  | 0.0 | %
Certificates of deposit (retail) | 1,211,026 |  | 1,215,661 |  | (4,635) |  | -0.4 | %
Certificates of deposit (brokered) | 755,813 |  | 744,345 |  | 11,468 |  | 1.5 | %
Total interest-bearing deposits | 5,064,892 |  | 5,056,721 |  | 8,171 |  | 0.2 | %
Borrowings: |  |  |  |
Federal Home Loan Bank advances | 1,077,146 |  | 1,083,902 |  | (6,756) |  | -0.6 | %
Other borrowings | 85,489 |  | 107,582 |  | (22,093) |  | -20.5 | %
Total borrowings | 1,162,635 |  | 1,191,484 |  | (28,849) |  | -2.4 | %
Total interest-bearing liabilities | 6,227,527 |  | 6,248,205 |  | (20,678) |  | -0.3 | %
Non-interest-bearing liabilities: |  |  |  |
Non-interest-bearing deposits | 581,625 |  | 582,085 |  | (460) |  | -0.1 | %
Other non-interest-bearing liabilities | 65,024 |  | 64,405 |  | 619 |  | 1.0 | %
Total non-interest-bearing liabilities | 646,649 |  | 646,490 |  | 159 |  | 0.0 | %
Total liabilities | 6,874,176 |  | 6,894,695 |  | (20,519) |  | -0.3 | %
Stockholders' equity | 745,143 |  | 744,187 |  | 956 |  | 0.1 | %
Total liabilities and stockholders' equity | $ | 7,619,319 |  | $ | 7,638,882 |  | $ | (19,563) |  | -0.3 | %
Average interest-earning assets to average interest-bearing liabilities | 115.07 | % | 114.98 | % | 0.09 | % | 0.1 | %

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Kearny Financial Corp.
Performance Ratio Highlights
(Unaudited)

| Three Months Ended | Variance or Change
| September 30, 2025 | June 30, 2025
Average yield on interest-earning assets: |  |  |
Loans receivable, including loans held for sale | 4.71 | % | 4.56 | % | 0.15 | %
Taxable investment securities | 4.08 | % | 4.01 | % | 0.07 | %
Tax-exempt investment securities (1) | 2.42 | % | 2.43 | % | -0.01 | %
Other interest-earning assets | 5.24 | % | 5.27 | % | -0.03 | %
Total interest-earning assets | 4.61 | % | 4.48 | % | 0.13 | %
Average cost of interest-bearing liabilities: |  |  |
Deposits: |  |  |
Interest-bearing demand | 2.63 | % | 2.63 | % | — | %
Savings | 1.41 | % | 1.33 | % | 0.08 | %
Certificates of deposit (retail) | 3.56 | % | 3.56 | % | — | %
Certificates of deposit (brokered) | 2.67 | % | 2.62 | % | 0.05 | %
Total interest-bearing deposits | 2.68 | % | 2.66 | % | 0.02 | %
Borrowings: |  |  |
Federal Home Loan Bank advances | 3.69 | % | 3.60 | % | 0.09 | %
Other borrowings | 4.44 | % | 4.45 | % | -0.01 | %
Total borrowings | 3.74 | % | 3.68 | % | 0.06 | %
Total interest-bearing liabilities | 2.88 | % | 2.85 | % | 0.03 | %
Interest rate spread (2) | 1.73 | % | 1.62 | % | 0.11 | %
Net interest margin (3) | 2.10 | % | 2.00 | % | 0.10 | %
Non-interest income to average assets (annualized) | 0.31 | % | 0.26 | % | 0.05 | %
Non-interest expense to average assets (annualized) | 1.66 | % | 1.62 | % | 0.04 | %
Efficiency ratio (4) | 72.71 | % | 75.66 | % | -2.95 | %
Return on average assets (annualized) | 0.50 | % | 0.35 | % | 0.15 | %
Return on average equity (annualized) | 5.10 | % | 3.64 | % | 1.46 | %
Return on average tangible equity (annualized) (5) | 6.09 | % | 4.36 | % | 1.73 | %

_________________________
(1)The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.
(2)Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.
(3)Net interest income divided by average interest-earning assets.
(4)Non-interest expense divided by the sum of net interest income and non-interest income.
(5)Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets.
7

Five-Quarter Financial Trend Analysis

Kearny Financial Corp.
Consolidated Balance Sheets

(Dollars and Shares in Thousands, Except Per Share Data) | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024
| (Unaudited) | (Audited) | (Unaudited) | (Unaudited) | (Unaudited)
Assets |  |  |  |  |
Cash and cash equivalents | $ | 130,139 |  | $ | 167,269 |  | $ | 126,095 |  | $ | 141,554 |  | $ | 155,574 |
Securities available for sale | 1,016,182 |  | 1,012,969 |  | 1,003,393 |  | 1,018,279 |  | 1,070,811 |
Securities held to maturity | 116,681 |  | 120,217 |  | 124,859 |  | 127,266 |  | 132,256 |
Loans held-for-sale | 6,650 |  | 5,931 |  | 6,187 |  | 5,695 |  | 8,866 |
Loans receivable | 5,767,419 |  | 5,812,937 |  | 5,846,175 |  | 5,791,758 |  | 5,784,246 |
Less: allowance for credit losses on loans | (45,060) |  | (46,191) |  | (44,455) |  | (44,457) |  | (44,923) |
Net loans receivable | 5,722,359 |  | 5,766,746 |  | 5,801,720 |  | 5,747,301 |  | 5,739,323 |
Premises and equipment | 43,222 |  | 43,897 |  | 44,192 |  | 45,127 |  | 45,189 |
Federal Home Loan Bank stock | 62,011 |  | 64,261 |  | 62,261 |  | 64,443 |  | 57,706 |
Accrued interest receivable | 29,460 |  | 28,098 |  | 28,521 |  | 27,772 |  | 29,467 |
Goodwill | 113,525 |  | 113,525 |  | 113,525 |  | 113,525 |  | 113,525 |
Core deposit intangible | 1,317 |  | 1,436 |  | 1,554 |  | 1,679 |  | 1,805 |
Bank owned life insurance | 307,248 |  | 304,717 |  | 303,629 |  | 301,339 |  | 300,186 |
Deferred income taxes, net | 51,587 |  | 55,203 |  | 52,913 |  | 53,325 |  | 50,131 |
Other assets | 47,629 |  | 56,181 |  | 64,292 |  | 84,080 |  | 67,540 |
Total assets | $ | 7,648,010 |  | $ | 7,740,450 |  | $ | 7,733,141 |  | $ | 7,731,385 |  | $ | 7,772,379 |
Liabilities |  |  |  |  |
Deposits: |  |  |  |  |
Non-interest-bearing | $ | 578,481 |  | $ | 582,045 |  | $ | 587,118 |  | $ | 601,510 |  | $ | 592,099 |
Interest-bearing | 5,053,401 |  | 5,093,172 |  | 5,120,230 |  | 5,069,550 |  | 4,878,413 |
Total deposits | 5,631,882 |  | 5,675,217 |  | 5,707,348 |  | 5,671,060 |  | 5,470,512 |
Borrowings | 1,206,497 |  | 1,256,491 |  | 1,213,976 |  | 1,258,949 |  | 1,479,888 |
Advance payments by borrowers for taxes | 19,261 |  | 19,317 |  | 19,981 |  | 17,986 |  | 17,824 |
Other liabilities | 37,166 |  | 43,463 |  | 43,723 |  | 38,537 |  | 52,618 |
Total liabilities | 6,894,806 |  | 6,994,488 |  | 6,985,028 |  | 6,986,532 |  | 7,020,842 |
Stockholders' Equity |  |  |  |  |
Common stock | 648 |  | 646 |  | 646 |  | 646 |  | 646 |
Paid-in capital | 494,490 |  | 494,546 |  | 494,131 |  | 494,092 |  | 493,523 |
Retained earnings | 344,287 |  | 341,744 |  | 341,921 |  | 342,155 |  | 342,522 |
Unearned ESOP shares | (18,484) |  | (18,970) |  | (19,457) |  | (19,943) |  | (20,430) |
Accumulated other comprehensive loss | (67,737) |  | (72,004) |  | (69,128) |  | (72,097) |  | (64,724) |
Total stockholders' equity | 753,204 |  | 745,962 |  | 748,113 |  | 744,853 |  | 751,537 |
Total liabilities and stockholders' equity | $ | 7,648,010 |  | $ | 7,740,450 |  | $ | 7,733,141 |  | $ | 7,731,385 |  | $ | 7,772,379 |
Consolidated capital ratios |  |  |  |  |
Equity to assets | 9.85 | % | 9.64 | % | 9.67 | % | 9.63 | % | 9.67 | %
Tangible equity to tangible assets (1) | 8.47 | % | 8.27 | % | 8.31 | % | 8.27 | % | 8.31 | %
Share data |  |  |  |  |
Outstanding shares | 64,739 | 64,577 | 64,580 | 64,580 | 64,580
Book value per share | $ | 11.63 |  | $ | 11.55 |  | $ | 11.58 |  | $ | 11.53 |  | $ | 11.64 |
Tangible book value per share (2) | $ | 9.86 |  | $ | 9.77 |  | $ | 9.80 |  | $ | 9.75 |  | $ | 9.85 |

_________________________
(1)Tangible equity equals total stockholders' equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.
(2)Tangible book value equals total stockholders' equity reduced by goodwill and core deposit intangible assets.
8

Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)

(Dollars in Thousands) | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024
Loan portfolio composition: |  |  |  |  |
Commercial loans: |  |  |  |  |
Multi-family mortgage | $ | 2,640,737 |  | $ | 2,709,654 |  | $ | 2,733,406 |  | $ | 2,722,623 |  | $ | 2,646,187 |
Nonresidential mortgage | 988,969 |  | 986,556 |  | 988,074 |  | 950,194 |  | 950,771 |
Commercial business | 142,304 |  | 138,755 |  | 140,224 |  | 135,740 |  | 145,984 |
Construction | 189,626 |  | 177,713 |  | 174,722 |  | 176,704 |  | 227,327 |
Total commercial loans | 3,961,636 |  | 4,012,678 |  | 4,036,426 |  | 3,985,261 |  | 3,970,269 |
One- to four-family residential mortgage | 1,749,362 |  | 1,748,591 |  | 1,761,465 |  | 1,765,160 |  | 1,768,230 |
Consumer loans: |  |  |  |  |
Home equity loans | 54,116 |  | 50,737 |  | 49,699 |  | 47,101 |  | 44,741 |
Other consumer | 2,487 |  | 2,533 |  | 2,859 |  | 2,778 |  | 2,965 |
Total consumer loans | 56,603 |  | 53,270 |  | 52,558 |  | 49,879 |  | 47,706 |
Total loans, excluding yield adjustments | 5,767,601 |  | 5,814,539 |  | 5,850,449 |  | 5,800,300 |  | 5,786,205 |
Unaccreted yield adjustments | (182) |  | (1,602) |  | (4,274) |  | (8,542) |  | (1,959) |
Loans receivable, net of yield adjustments | 5,767,419 |  | 5,812,937 |  | 5,846,175 |  | 5,791,758 |  | 5,784,246 |
Less: allowance for credit losses on loans | (45,060) |  | (46,191) |  | (44,455) |  | (44,457) |  | (44,923) |
Net loans receivable | $ | 5,722,359 |  | $ | 5,766,746 |  | $ | 5,801,720 |  | $ | 5,747,301 |  | $ | 5,739,323 |
Asset quality: |  |  |  |  |
Nonperforming assets: |  |  |  |  |
Accruing loans - 90 days and over past due | $ | 20,494 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
Nonaccrual loans | 44,085 |  | 45,597 |  | 37,683 |  | 37,697 |  | 39,854 |
Total nonperforming loans | 64,579 |  | 45,597 |  | 37,683 |  | 37,697 |  | 39,854 |
Nonaccrual loans held-for-sale | — |  | — |  | — |  | — |  | — |
Other real estate owned | — |  | — |  | — |  | — |  | — |
Total nonperforming assets | $ | 64,579 |  | $ | 45,597 |  | $ | 37,683 |  | $ | 37,697 |  | $ | 39,854 |
Nonperforming loans (% total loans) | 1.12 | % | 0.78 | % | 0.64 | % | 0.65 | % | 0.69 | %
Nonperforming assets (% total assets) | 0.84 | % | 0.59 | % | 0.49 | % | 0.49 | % | 0.51 | %
Classified loans | $ | 117,780 |  | $ | 118,418 |  | $ | 113,470 |  | $ | 106,718 |  | $ | 67,853 |
Allowance for credit losses on loans (ACL): |  |  |  |  |
ACL to total loans | 0.78 | % | 0.79 | % | 0.76 | % | 0.77 | % | 0.78 | %
ACL to nonperforming loans | 69.78 | % | 101.30 | % | 117.97 | % | 117.93 | % | 112.72 | %
Net charge-offs | $ | 1,049 |  | $ | 49 |  | $ | 368 |  | $ | 573 |  | $ | 124 |
Average net charge-off rate (annualized) | 0.07 | % | 0.00 | % | 0.03 | % | 0.04 | % | 0.01 | %

9

Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)

(Dollars in Thousands) | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024
Funding composition: |  |  |  |  |
Deposits: |  |  |  |  |
Non-interest-bearing deposits | $ | 578,481 |  | $ | 582,045 |  | $ | 587,118 |  | $ | 601,510 |  | $ | 592,099 |
Interest-bearing demand | 2,334,560 |  | 2,362,222 |  | 2,410,925 |  | 2,380,408 |  | 2,247,685 |
Savings | 751,253 |  | 754,376 |  | 758,239 |  | 742,266 |  | 681,709 |
Certificates of deposit (retail) | 1,208,408 |  | 1,218,920 |  | 1,218,479 |  | 1,213,887 |  | 1,215,746 |
Certificates of deposit (brokered) | 759,180 |  | 757,654 |  | 732,587 |  | 732,989 |  | 733,273 |
Interest-bearing deposits | 5,053,401 |  | 5,093,172 |  | 5,120,230 |  | 5,069,550 |  | 4,878,413 |
Total deposits | 5,631,882 |  | 5,675,217 |  | 5,707,348 |  | 5,671,060 |  | 5,470,512 |
Borrowings: |  |  |  |  |
Federal Home Loan Bank advances | 1,006,497 |  | 1,106,491 |  | 1,028,976 |  | 1,028,949 |  | 1,209,888 |
Overnight borrowings | 200,000 |  | 150,000 |  | 185,000 |  | 230,000 |  | 270,000 |
Total borrowings | 1,206,497 |  | 1,256,491 |  | 1,213,976 |  | 1,258,949 |  | 1,479,888 |
Total funding | $ | 6,838,379 |  | $ | 6,931,708 |  | $ | 6,921,324 |  | $ | 6,930,009 |  | $ | 6,950,400 |
Loans as a % of deposits | 101.7 | % | 101.7 | % | 101.8 | % | 101.4 | % | 105.1 | %
Deposits as a % of total funding | 82.4 | % | 81.9 | % | 82.5 | % | 81.8 | % | 78.7 | %
Borrowings as a % of total funding | 17.6 | % | 18.1 | % | 17.5 | % | 18.2 | % | 21.3 | %
Uninsured deposits: |  |  |  |  |
Uninsured deposits (reported) (1) | $ | 2,040,021 |  | $ | 1,989,095 |  | $ | 1,959,070 |  | $ | 1,935,607 |  | $ | 1,799,726 |
Uninsured deposits (adjusted) (2) | $ | 804,209 |  | $ | 813,780 |  | $ | 799,238 |  | $ | 797,721 |  | $ | 773,375 |

_________________________
(1)Uninsured deposits of Kearny Bank.
(2)Uninsured deposits of Kearny Bank adjusted to exclude deposits of its wholly-owned subsidiary and holding company and collateralized deposits of state and local governments.
10

Kearny Financial Corp.
Consolidated Statements of Income
(Unaudited)

| Three Months Ended
(Dollars and Shares in Thousands, Except Per Share Data) | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024
Interest income |  |  |  |  |
Loans | $ | 68,349 |  | $ | 66,485 |  | $ | 64,768 |  | $ | 65,408 |  | $ | 66,331 |
Taxable investment securities | 12,600 |  | 12,322 |  | 12,738 |  | 13,803 |  | 14,384 |
Tax-exempt investment securities | 41 |  | 49 |  | 55 |  | 59 |  | 71 |
Other interest-earning assets | 1,518 |  | 1,549 |  | 1,773 |  | 2,215 |  | 2,466 |
Total interest income | 82,508 |  | 80,405 |  | 79,334 |  | 81,485 |  | 83,252 |
Interest expense |  |  |  |  |
Deposits | 33,931 |  | 33,607 |  | 34,912 |  | 36,721 |  | 35,018 |
Borrowings | 10,873 |  | 10,955 |  | 10,380 |  | 12,152 |  | 15,788 |
Total interest expense | 44,804 |  | 44,562 |  | 45,292 |  | 48,873 |  | 50,806 |
Net interest income | 37,704 |  | 35,843 |  | 34,042 |  | 32,612 |  | 32,446 |
(Reversal of) provision for credit losses | (82) |  | 1,785 |  | 366 |  | 107 |  | 108 |
Net interest income after (reversal of) provision for credit losses | 37,786 |  | 34,058 |  | 33,676 |  | 32,505 |  | 32,338 |
Non-interest income |  |  |  |  |
Fees and service charges | 892 |  | 655 |  | 573 |  | 627 |  | 635 |
Gain on sale of loans | 199 |  | 190 |  | 112 |  | 304 |  | 200 |
Income from bank owned life insurance | 2,689 |  | 2,869 |  | 2,617 |  | 2,619 |  | 2,567 |
Electronic banking fees and charges | 416 |  | 442 |  | 391 |  | 493 |  | 391 |
Other income | 1,651 |  | 835 |  | 869 |  | 830 |  | 833 |
Total non-interest income | 5,847 |  | 4,991 |  | 4,562 |  | 4,873 |  | 4,626 |
Non-interest expense |  |  |  |  |
Salaries and employee benefits | 18,745 |  | 18,093 |  | 17,700 |  | 17,579 |  | 17,498 |
Net occupancy expense of premises | 3,307 |  | 2,820 |  | 3,075 |  | 2,831 |  | 2,798 |
Equipment and systems | 3,974 |  | 4,030 |  | 3,921 |  | 3,892 |  | 3,860 |
Advertising and marketing | 562 |  | 615 |  | 609 |  | 311 |  | 342 |
Federal deposit insurance premium | 1,301 |  | 1,395 |  | 1,450 |  | 1,503 |  | 1,563 |
Directors' compensation | 307 |  | 307 |  | 326 |  | 361 |  | 361 |
Other expense | 3,470 |  | 3,633 |  | 3,309 |  | 3,084 |  | 3,364 |
Total non-interest expense | 31,666 |  | 30,893 |  | 30,390 |  | 29,561 |  | 29,786 |
Income before income taxes | 11,967 |  | 8,156 |  | 7,848 |  | 7,817 |  | 7,178 |
Income taxes | 2,461 |  | 1,387 |  | 1,200 |  | 1,251 |  | 1,086 |
Net income | $ | 9,506 |  | $ | 6,769 |  | $ | 6,648 |  | $ | 6,566 |  | $ | 6,092 |
Net income per common share (EPS) |  |  |  |  |
Basic | $ | 0.15 |  | $ | 0.11 |  | $ | 0.11 |  | $ | 0.11 |  | $ | 0.10 |
Diluted | $ | 0.15 |  | $ | 0.11 |  | $ | 0.11 |  | $ | 0.10 |  | $ | 0.10 |
Dividends declared |  |  |  |  |
Cash dividends declared per common share | $ | 0.11 |  | $ | 0.11 |  | $ | 0.11 |  | $ | 0.11 |  | $ | 0.11 |
Cash dividends declared | $ | 6,963 |  | $ | 6,946 |  | $ | 6,933 |  | $ | 6,933 |  | $ | 6,896 |
Dividend payout ratio | 73.2 | % | 102.6 | % | 104.3 | % | 105.6 | % | 113.2 | %
Weighted average number of common shares outstanding |  |  |  |  |
Basic | 62,741 | 62,597 | 62,548 | 62,443 | 62,389
Diluted | 62,951 | 62,755 | 62,713 | 62,576 | 62,420

11

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)

| Three Months Ended
(Dollars in Thousands) | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024
Assets |  |  |  |  |
Interest-earning assets: |  |  |  |  |
Loans receivable, including loans held-for-sale | $ | 5,806,767 |  | $ | 5,830,421 |  | $ | 5,805,045 |  | $ | 5,762,053 |  | $ | 5,761,593 |
Taxable investment securities | 1,236,705 |  | 1,227,825 |  | 1,251,612 |  | 1,285,800 |  | 1,314,945 |
Tax-exempt investment securities | 6,856 |  | 8,039 |  | 9,135 |  | 9,711 |  | 12,244 |
Other interest-earning assets | 115,776 |  | 117,622 |  | 110,736 |  | 116,354 |  | 131,981 |
Total interest-earning assets | 7,166,104 |  | 7,183,907 |  | 7,176,528 |  | 7,173,918 |  | 7,220,763 |
Non-interest-earning assets | 453,215 |  | 454,975 |  | 457,206 |  | 459,982 |  | 467,670 |
Total assets | $ | 7,619,319 |  | $ | 7,638,882 |  | $ | 7,633,734 |  | $ | 7,633,900 |  | $ | 7,688,433 |
Liabilities and Stockholders' Equity |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |
Deposits: |  |  |  |  |
Interest-bearing demand | $ | 2,343,809 |  | $ | 2,342,523 |  | $ | 2,405,974 |  | $ | 2,314,378 |  | $ | 2,282,608 |
Savings | 754,244 |  | 754,192 |  | 751,243 |  | 711,801 |  | 668,240 |
Certificates of deposit (retail) | 1,211,026 |  | 1,215,661 |  | 1,215,767 |  | 1,216,948 |  | 1,203,770 |
Certificates of deposit (brokered) | 755,813 |  | 744,345 |  | 730,612 |  | 730,773 |  | 551,819 |
Total interest-bearing deposits | 5,064,892 |  | 5,056,721 |  | 5,103,596 |  | 4,973,900 |  | 4,706,437 |
Borrowings: |  |  |  |  |
Federal Home Loan Bank advances | 1,077,146 |  | 1,083,902 |  | 1,028,958 |  | 1,085,455 |  | 1,325,583 |
Other borrowings | 85,489 |  | 107,582 |  | 93,389 |  | 156,522 |  | 237,011 |
Total borrowings | 1,162,635 |  | 1,191,484 |  | 1,122,347 |  | 1,241,977 |  | 1,562,594 |
Total interest-bearing liabilities | 6,227,527 |  | 6,248,205 |  | 6,225,943 |  | 6,215,877 |  | 6,269,031 |
Non-interest-bearing liabilities: |  |  |  |  |
Non-interest-bearing deposits | 581,625 |  | 582,085 |  | 602,647 |  | 604,915 |  | 599,095 |
Other non-interest-bearing liabilities | 65,024 |  | 64,405 |  | 59,919 |  | 65,258 |  | 69,629 |
Total non-interest-bearing liabilities | 646,649 |  | 646,490 |  | 662,566 |  | 670,173 |  | 668,724 |
Total liabilities | 6,874,176 |  | 6,894,695 |  | 6,888,509 |  | 6,886,050 |  | 6,937,755 |
Stockholders' equity | 745,143 |  | 744,187 |  | 745,225 |  | 747,850 |  | 750,678 |
Total liabilities and stockholders' equity | $ | 7,619,319 |  | $ | 7,638,882 |  | $ | 7,633,734 |  | $ | 7,633,900 |  | $ | 7,688,433 |
Average interest-earning assets to average interest-bearing liabilities | 115.07 | % | 114.98 | % | 115.27 | % | 115.41 | % | 115.18 | %

12

Kearny Financial Corp.
Performance Ratio Highlights

| Three Months Ended
| September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024
Average yield on interest-earning assets: |  |  |  |  |
Loans receivable, including loans held-for-sale | 4.71 | % | 4.56 | % | 4.46 | % | 4.54 | % | 4.61 | %
Taxable investment securities | 4.08 | % | 4.01 | % | 4.07 | % | 4.29 | % | 4.38 | %
Tax-exempt investment securities (1) | 2.42 | % | 2.43 | % | 2.43 | % | 2.42 | % | 2.32 | %
Other interest-earning assets | 5.24 | % | 5.27 | % | 6.40 | % | 7.62 | % | 7.47 | %
Total interest-earning assets | 4.61 | % | 4.48 | % | 4.42 | % | 4.54 | % | 4.61 | %
Average cost of interest-bearing liabilities: |  |  |  |  |
Deposits: |  |  |  |  |
Interest-bearing demand | 2.63 | % | 2.63 | % | 2.73 | % | 2.96 | % | 3.13 | %
Savings | 1.41 | % | 1.33 | % | 1.30 | % | 1.29 | % | 1.05 | %
Certificates of deposit (retail) | 3.56 | % | 3.56 | % | 3.73 | % | 4.06 | % | 4.12 | %
Certificates of deposit (brokered) | 2.67 | % | 2.62 | % | 2.58 | % | 2.70 | % | 2.18 | %
Total interest-bearing deposits | 2.68 | % | 2.66 | % | 2.74 | % | 2.95 | % | 2.98 | %
Borrowings: |  |  |  |  |
Federal Home Loan Bank advances | 3.69 | % | 3.60 | % | 3.63 | % | 3.78 | % | 3.82 | %
Other borrowings | 4.44 | % | 4.45 | % | 4.41 | % | 4.88 | % | 5.28 | %
Total borrowings | 3.74 | % | 3.68 | % | 3.70 | % | 3.91 | % | 4.04 | %
Total interest-bearing liabilities | 2.88 | % | 2.85 | % | 2.91 | % | 3.15 | % | 3.24 | %
Interest rate spread (2) | 1.73 | % | 1.62 | % | 1.51 | % | 1.39 | % | 1.37 | %
Net interest margin (3) | 2.10 | % | 2.00 | % | 1.90 | % | 1.82 | % | 1.80 | %
Non-interest income to average assets (annualized) | 0.31 | % | 0.26 | % | 0.24 | % | 0.26 | % | 0.24 | %
Non-interest expense to average assets (annualized) | 1.66 | % | 1.62 | % | 1.59 | % | 1.55 | % | 1.55 | %
Efficiency ratio (4) | 72.71 | % | 75.66 | % | 78.72 | % | 78.86 | % | 80.35 | %
Return on average assets (annualized) | 0.50 | % | 0.35 | % | 0.35 | % | 0.34 | % | 0.32 | %
Return on average equity (annualized) | 5.10 | % | 3.64 | % | 3.57 | % | 3.51 | % | 3.25 | %
Return on average tangible equity (annualized) (5) | 6.09 | % | 4.36 | % | 4.28 | % | 4.21 | % | 3.89 | %

_________________________
(1)The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.
(2)Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.
(3)Net interest income divided by average interest-earning assets.
(4)Non-interest expense divided by the sum of net interest income and non-interest income.
(5)Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets.
13

The following tables provide a reconciliation of certain financial measures calculated in accordance with Generally Accepted Accounting Principles (“GAAP”) (as reported) and non-GAAP measures. These non-GAAP measures provide additional information which allow readers to evaluate the ongoing performance of the Company. They are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. In all cases, it should be understood that non-GAAP per share measures do not depict amounts that accrue directly to the benefit of shareholders.
Kearny Financial Corp.
Reconciliation of GAAP to Non-GAAP
(Unaudited)

| Three Months Ended
(Dollars and Shares in Thousands, Except Per Share Data) | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024
Adjusted net income: |  |  |  |  |
Net income (GAAP) | $ | 9,506 |  | $ | 6,769 |  | $ | 6,648 |  | $ | 6,566 |  | $ | 6,092 |
Non-recurring transactions - net of tax: |  |  |  |  |
Branch consolidation expenses | 178 |  | — |  | — |  | — |  | — |
Gain on sale of property held for sale | (532) |  | — |  | — |  | — |  | — |
Adjusted net income | $ | 9,152 |  | $ | 6,769 |  | $ | 6,648 |  | $ | 6,566 |  | $ | 6,092 |
Calculation of pre-tax, pre-provision net revenue: |  |  |  |  |
Net income (GAAP) | $ | 9,506 |  | $ | 6,769 |  | $ | 6,648 |  | $ | 6,566 |  | $ | 6,092 |
Adjustments to net income (GAAP): |  |  |  |  |
Provision for income taxes | 2,461 |  | 1,387 |  | 1,200 |  | 1,251 |  | 1,086 |
(Reversal of) provision for credit losses | (82) |  | 1,785 |  | 366 |  | 107 |  | 108 |
Pre-tax, pre-provision net revenue (non-GAAP) | $ | 11,885 |  | $ | 9,941 |  | $ | 8,214 |  | $ | 7,924 |  | $ | 7,286 |
Adjusted earnings per share: |  |  |  |  |
Weighted average common shares - basic | 62,741 | 62,597 | 62,548 | 62,443 | 62,389
Weighted average common shares - diluted | 62,951 | 62,755 | 62,713 | 62,576 | 62,420
Earnings per share - basic (GAAP) | $ | 0.15 |  | $ | 0.11 |  | $ | 0.11 |  | $ | 0.11 |  | $ | 0.10 |
Earnings per share - diluted (GAAP) | $ | 0.15 |  | $ | 0.11 |  | $ | 0.11 |  | $ | 0.10 |  | $ | 0.10 |
Adjusted earnings per share - basic (non-GAAP) | $ | 0.15 |  | $ | 0.11 |  | $ | 0.11 |  | $ | 0.11 |  | $ | 0.10 |
Adjusted earnings per share - diluted (non-GAAP) | $ | 0.15 |  | $ | 0.11 |  | $ | 0.11 |  | $ | 0.10 |  | $ | 0.10 |
Pre-tax, pre-provision net revenue per share: |  |  |  |  |
Pre-tax, pre-provision net revenue per share - basic (non-GAAP) | $ | 0.19 |  | $ | 0.16 |  | $ | 0.13 |  | $ | 0.13 |  | $ | 0.12 |
Pre-tax, pre-provision net revenue per share - diluted (non-GAAP) | $ | 0.19 |  | $ | 0.16 |  | $ | 0.13 |  | $ | 0.13 |  | $ | 0.12 |
Adjusted return on average assets: |  |  |  |  |
Total average assets | $ | 7,619,319 |  | $ | 7,638,882 |  | $ | 7,633,734 |  | $ | 7,633,900 |  | $ | 7,688,433 |
Return on average assets (GAAP) | 0.50 | % | 0.35 | % | 0.35 | % | 0.34 | % | 0.32 | %
Adjusted return on average assets (non-GAAP) | 0.48 | % | 0.35 | % | 0.35 | % | 0.34 | % | 0.32 | %
Adjusted return on average equity: |  |  |  |  |
Total average equity | $ | 745,143 |  | $ | 744,187 |  | $ | 745,225 |  | $ | 747,850 |  | $ | 750,678 |
Return on average equity (GAAP) | 5.10 | % | 3.64 | % | 3.57 | % | 3.51 | % | 3.25 | %
Adjusted return on average equity (non-GAAP) | 4.91 | % | 3.64 | % | 3.57 | % | 3.51 | % | 3.25 | %

14

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

| Three Months Ended
(Dollars and Shares in Thousands, Except Per Share Data) | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024
Adjusted return on average tangible equity: |  |  |  |  |
Total average equity | $ | 745,143 |  | $ | 744,187 |  | $ | 745,225 |  | $ | 747,850 |  | $ | 750,678 |
Less: average goodwill | (113,525) |  | (113,525) |  | (113,525) |  | (113,525) |  | (113,525) |
Less: average other intangible assets | (1,395) |  | (1,513) |  | (1,636) |  | (1,761) |  | (1,886) |
Total average tangible equity | $ | 630,223 |  | $ | 629,149 |  | $ | 630,064 |  | $ | 632,564 |  | $ | 635,267 |
Return on average tangible equity (non-GAAP) | 6.09 | % | 4.36 | % | 4.28 | % | 4.21 | % | 3.89 | %
Adjusted return on average tangible equity (non-GAAP) | 5.87 | % | 4.36 | % | 4.28 | % | 4.21 | % | 3.89 | %
Adjusted non-interest expense ratio: |  |  |  |  |
Non-interest expense (GAAP) | $ | 31,666 |  | $ | 30,893 |  | $ | 30,390 |  | $ | 29,561 |  | $ | 29,786 |
Non-recurring transactions: |  |  |  |  |
Branch consolidation expenses | (250) |  | — |  | — |  | — |  | — |
Non-interest expense (non-GAAP) | $ | 31,416 |  | $ | 30,893 |  | $ | 30,390 |  | $ | 29,561 |  | $ | 29,786 |
Non-interest expense ratio (GAAP) | 1.66 | % | 1.62 | % | 1.59 | % | 1.55 | % | 1.55 | %
Adjusted non-interest expense ratio (non-GAAP) | 1.65 | % | 1.62 | % | 1.59 | % | 1.55 | % | 1.55 | %
Adjusted efficiency ratio: |  |  |  |  |
Non-interest expense (non-GAAP) | $ | 31,416 |  | $ | 30,893 |  | $ | 30,390 |  | $ | 29,561 |  | $ | 29,786 |
Net interest income (GAAP) | $ | 37,704 |  | $ | 35,843 |  | $ | 34,042 |  | $ | 32,612 |  | $ | 32,446 |
Total non-interest income (GAAP) | 5,847 |  | 4,991 |  | 4,562 |  | 4,873 |  | 4,626 |
Non-recurring transactions: |  |  |  |  |
Gain on sale of property held for sale | (749) |  | — |  | — |  | — |  | — |
Total revenue (non-GAAP) | $ | 42,802 |  | $ | 40,834 |  | $ | 38,604 |  | $ | 37,485 |  | $ | 37,072 |
Efficiency ratio (GAAP) | 72.71 | % | 75.66 | % | 78.72 | % | 78.86 | % | 80.35 | %
Adjusted efficiency ratio (non-GAAP) | 73.40 | % | 75.66 | % | 78.72 | % | 78.86 | % | 80.35 | %

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