FAIRFIELD, N.J., Oct. 24, 2024 (GLOBE NEWSWIRE) -- 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, 2024 of $6.1 million, or $0.10 per diluted share, compared to a GAAP net loss of $90.1 million, or $1.45 per diluted share, for the quarter ended June 30, 2024. The net loss for the quarter ended June 30, 2024 included a goodwill impairment of $95.3 million, as previously disclosed. Excluding this item, net income for the quarter ended September 30, 2024 increased $496,000 from adjusted net income of $5.6 million for the quarter ended June 30, 2024.

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on November 20, 2024, to stockholders of record as of November 6, 2024.

Craig L. Montanaro, President and Chief Executive Officer, commented, "I'm pleased to report that this quarter saw our net interest margin reach its inflection point and begin to ascend. Despite four basis points of quarterly compression, each successive month of the quarter reflected an increase in our net interest margin. The recent fed funds rate reduction of 50 basis points has already begun translating into a cost of funds benefit in October. Additional fed funds rate cuts, which the market is anticipating, will be a positive catalyst for our liability-sensitive balance sheet."

Mr. Montanaro continued, "Regarding asset quality, our loan portfolio remains strong. Minimal exposure to New York City rent-regulated multifamily and office real estate, coupled with our robust commercial real estate ACL coverage ratios and peer-leading charge-off ratios, leaves us well-positioned in the current environment."

Balance Sheet

Total assets were $7.77 billion at September 30, 2024, an increase of $88.9 million, or 1.2%, from June 30, 2024.Investment securities totaled $1.20 billion at September 30, 2024, a decrease of $5.5 million, or 0.5%, from June 30, 2024.Loans receivable totaled $5.78 billion at September 30, 2024, an increase of $51.5 million, or 0.9%, from June 30, 2024, primarily reflecting growth in one- to four-family residential mortgage loans and construction loans.Deposits were $5.47 billion at September 30, 2024, an increase of $312.4 million, or 6.1%, from June 30, 2024. This increase was largely the result of a reallocation from Federal Home Loan Bank ("FHLB") advances into brokered certificates of deposits, due to the relatively more favorable economics of brokered deposits compared to advances.Borrowings were $1.48 billion at September 30, 2024, a decrease of $229.9 million, or 13.4%, from June 30, 2024, primarily reflecting a decrease in FHLB borrowings offset by an increase in brokered certificates of deposits, as noted above.At September 30, 2024, the Company maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.06 billion, an increase of $240.0 million from June 30, 2024, and represents 26.5% of total assets.

Earnings

Net Interest Income and Net Interest Margin

Net interest margin contracted four basis points to 1.80% for the quarter ended September 30, 2024. The decrease for the quarter was driven by increases in the cost and average balances of interest-bearing deposits and a decrease in the average balance of interest-earning assets, partially offset by decreases in the average balances of interest-bearing borrowings and higher yields on interest-earning assets.For the quarter ended September 30, 2024, net interest income decreased $830,000 to $32.4 million from $33.3 million for the quarter ended June 30, 2024. Included in net interest income for the quarters ended September 30, 2024 and June 30, 2024, respectively, was purchase accounting accretion of $649,000 and $612,000, and loan prepayment penalty income of $52,000 and $366,000.

Non-Interest Income

Non-interest income decreased $1.2 million to income of $4.6 million for the quarter ended September 30, 2024, from $5.8 million for the quarter ended June 30, 2024. Included in non-interest income for the quarter ended June 30, 2024 was a non-recurring contract renewal bonus of $750,000 and $1.1 million in non-recurring payments on two life insurance policies, partially offset by a $392,000 non-recurring exchange charge related to the December 2023 Bank Owned Life Insurance ("BOLI") restructure. No such non-recurring items were recorded during the quarter ended September 30, 2024.Income from BOLI decreased $642,000 to $2.6 million for the quarter ended September 30, 2024 from $3.2 million for the quarter ended June 30, 2024, primarily driven by the non-recurring items recorded for the quarter ended June 30, 2024, as disclosed above.

Non-Interest Expense

For the quarter ended September 30, 2024, non-interest expense decreased $96.8 million, or 76.5%, to $29.8 million from $126.6 million for the quarter ended June 30, 2024, driven by a non-cash goodwill impairment recognized in the prior comparative period. Excluding the goodwill impairment, adjusted non-interest expense increased $605,000 from $29.2 million, primarily driven by increases in salary and benefits expense and other expense.Salary and benefits expense increased $232,000 primarily driven by annual merit increases and higher payroll taxes, partially offset by a non-recurring decrease in stock-based compensation.Other expense increased $344,000 primarily driven by an increase of $243,000 in the provision for credit losses on off balance sheet commitments.

Income Taxes

Income tax expense totaled $1.1 million for the quarter ended September 30, 2024, compared to an income tax benefit of $917,000 for the quarter ended June 30, 2024. The increase in income tax expense was primarily due to higher pre-tax income in the current quarter, coupled with a partial reversal of the deferred tax liability associated with the previously recorded goodwill impairment in the prior quarter.

Asset Quality

The balance of non-performing assets remained steady at $39.9 million, or 0.51% of total assets, at September 30, 2024, and $39.9 million, or 0.52% of total assets, at June 30, 2024, respectively.Net charge-offs totaled $124,000, or 0.01% of average loans, on an annualized basis, for the quarter ended September 30, 2024, compared to $3.5 million, or 0.25% of average loans, on an annualized basis, for the quarter ended June 30, 2024.For the quarter ended September 30, 2024, the Company recorded a provision for credit losses of $108,000, compared to $3.5 million for the quarter ended June 30, 2024. The provision for credit loss expense for the quarter ended September 30, 2024 was primarily driven by loan growth.The allowance for credit losses ("ACL") was $44.9 million, or 0.78% of total loans, at September 30, 2024 and remained unchanged from June 30, 2024.

Capital

For the quarter ended September 30, 2024, book value per share decreased $0.06, or 0.5%, to $11.64 while tangible book value per share decreased $0.05, or 0.5%, to $9.85.At September 30, 2024, total stockholders' equity included after-tax net unrealized losses on securities available for sale of $76.0 million, partially offset by after-tax unrealized gains on derivatives of $11.0 million. After-tax net unrecognized losses on securities held to maturity of $8.2 million were not reflected in total stockholders' equity.At September 30, 2024, the Company's tangible equity to tangible assets ratio equaled 8.31% and the regulatory capital ratios of both the Company and the Bank were in excess of the levels required by federal banking regulators to be classified as "well-capitalized" under regulatory guidelines.

This earnings release should be read in conjunction with Kearny Financial Corp.'s Q1 2025 Investor Presentation, a copy of which is available through the Investor Relations link located at the bottom of the page of our website at www.kearnybank.com and via a Current Report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov.

Statements contained in this news release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company does not undertake and specifically disclaims any obligation to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.

Category: Earnings

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

Linked-Quarter Comparative Financial Analysis Kearny Financial Corp.

Consolidated Balance Sheets

(Unaudited)

(Dollars and Shares in Thousands,

Except Per Share Data)September 30,

2024June 30,

2024Variance

or ChangeVariance

or Change Pct.Assets Cash and cash equivalents$155,574 $63,864 $91,710 143.6%Securities available for sale 1,070,811 1,072,833 (2,022)-0.2%Securities held to maturity 132,256 135,742 (3,486)-2.6%Loans held-for-sale 8,866 6,036 2,830 46.9%Loans receivable 5,784,246 5,732,787 51,459 0.9%Less: allowance for credit losses on loans (44,923) (44,939) (16) -- %Net loans receivable 5,739,323 5,687,848 51,475 0.9%Premises and equipment 45,189 44,940 249 0.6%Federal Home Loan Bank stock 57,706 80,300 (22,594)-28.1%Accrued interest receivable 29,467 29,521 (54)-0.2%Goodwill 113,525 113,525 -- -- %Core deposit intangible 1,805 1,931 (126)-6.5%Bank owned life insurance 300,186 297,874 2,312 0.8%Deferred income taxes, net 50,131 50,339 (208)-0.4%Other assets 67,540 98,708 (31,168)-31.6%Total assets$7,772,379 $7,683,461 $88,918 1.2% Liabilities Deposits: Non-interest-bearing$592,099 $598,366 $(6,267)-1.0%Interest-bearing 4,878,413 4,559,757 318,656 7.0%Total deposits 5,470,512 5,158,123 312,389 6.1%Borrowings 1,479,888 1,709,789 (229,901)-13.4%Advance payments by borrowers for taxes 17,824 17,409 415 2.4%Other liabilities 52,618 44,569 8,049 18.1%Total liabilities 7,020,842 6,929,890 90,952 1.3% Stockholders' Equity Common stock 646 644 2 0.3%Paid-in capital 493,523 493,680 (157) -- %Retained earnings 342,522 343,326 (804)-0.2%Unearned ESOP shares (20,430) (20,916) 486 2.3%Accumulated other comprehensive loss (64,724) (63,163) (1,561)-2.5%Total stockholders' equity 751,537 753,571 (2,034)-0.3%Total liabilities and stockholders' equity$7,772,379 $7,683,461 $88,918 1.2% Consolidated capital ratios Equity to assets 9.67% 9.81% -0.14% Tangible equity to tangible assets (1) 8.31% 8.43% -0.12% Share data Outstanding shares 64,580 64,434 146 0.2%Book value per share$11.64 $11.70 $(0.06)-0.5%Tangible book value per share (2)$9.85 $9.90 $(0.05)-0.5% _________________________(1) Tangible equity equals total stockholders' equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.

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

Kearny Financial Corp.

Consolidated Statements of Income (Loss)

(Unaudited)

(Dollars and Shares in Thousands,

Except Per Share Data)

Three Months EndedVariance

or Change

Variance

or Change Pct.

September 30,

2024June 30,

2024Interest income Loans$66,331 $65,819 $512 0.8%Taxable investment securities 14,384 14,802 (418)-2.8%Tax-exempt investment securities 71 80 (9)-11.3%Other interest-earning assets 2,466 2,289 177 7.7%Total interest income 83,252 82,990 262 0.3% Interest expense Deposits 35,018 32,187 2,831 8.8%Borrowings 15,788 17,527 (1,739)-9.9%Total interest expense 50,806 49,714 1,092 2.2%Net interest income 32,446 33,276 (830)-2.5%Provision for credit losses 108 3,527 (3,419)-96.9%Net interest income after provision for credit losses 32,338 29,749 2,589 8.7% Non-interest income Fees and service charges 635 580 55 9.5%Gain on sale of loans 200 111 89 80.2%Income from bank owned life insurance 2,567 3,209 (642)-20.0%Electronic banking fees and charges 391 1,130 (739)-65.4%Other income 833 776 57 7.3%Total non-interest income 4,626 5,806 (1,180)-20.3% Non-interest expense Salaries and employee benefits 17,498 17,266 232 1.3%Net occupancy expense of premises 2,798 2,738 60 2.2%Equipment and systems 3,860 3,785 75 2.0%Advertising and marketing 342 480 (138)-28.8%Federal deposit insurance premium 1,563 1,532 31 2.0%Directors' compensation 361 360 1 0.3%Goodwill impairment -- 97,370 (97,370)-100.0%Other expense 3,364 3,020 344 11.4%Total non-interest expense 29,786 126,551 (96,765)-76.5%Income (loss) before income taxes 7,178 (90,996) 98,174 107.9%Income taxes 1,086 (917) 2,003 -218.4%Net income (loss)$6,092 $(90,079)$96,171 106.8% Net income (loss) per common share (EPS) Basic$0.10 $(1.45)$1.55 Diluted$0.10 $(1.45)$1.55 Dividends declared Cash dividends declared per common share$0.11 $0.11 $ -- Cash dividends declared$6,896 $6,903 $(7) Dividend payout ratio 113.2% -7.7% 120.9% Weighted average number of common shares outstanding Basic 62,389 62,254 135 Diluted 62,420 62,254 166 Kearny Financial Corp.

Average Balance Sheet Data

(Unaudited)

(Dollars in Thousands)

Three Months EndedVariance

or Change

Variance

or Change Pct.

September 30,

2024June 30,

2024Assets Interest-earning assets: Loans receivable, including loans held for sale$5,761,593 $5,743,008 $18,585 0.3%Taxable investment securities 1,314,945 1,343,541 (28,596)-2.1%Tax-exempt investment securities 12,244 13,737 (1,493)-10.9%Other interest-earning assets 131,981 128,257 3,724 2.9%Total interest-earning assets 7,220,763 7,228,543 (7,780)-0.1%Non-interest-earning assets 467,670 466,537 1,133 0.2%Total assets$7,688,433 $7,695,080 $(6,647)-0.1% Liabilities and Stockholders' Equity Interest-bearing liabilities: Deposits: Interest-bearing demand$2,282,608 $2,310,521 $(27,913)-1.2%Savings 668,240 631,622 36,618 5.8%Certificates of deposit 1,755,589 1,613,798 141,791 8.8%Total interest-bearing deposits 4,706,437 4,555,941 150,496 3.3%Borrowings: Federal Home Loan Bank advances 1,325,583 1,507,192 (181,609)-12.0%Other borrowings 237,011 228,461 8,550 3.7%Total borrowings 1,562,594 1,735,653 (173,059)-10.0%Total interest-bearing liabilities 6,269,031 6,291,594 (22,563)-0.4%Non-interest-bearing liabilities: Non-interest-bearing deposits 599,095 589,438 9,657 1.6%Other non-interest-bearing liabilities 69,629 62,978 6,651 10.6%Total non-interest-bearing liabilities 668,724 652,416 16,308 2.5%Total liabilities 6,937,755 6,944,010 (6,255)-0.1%Stockholders' equity 750,678 751,070 (392)-0.1%Total liabilities and stockholders' equity$7,688,433 $7,695,080 $(6,647)-0.1% Average interest-earning assets to average interest-bearing liabilities 115.18% 114.89% 0.29%0.3% Kearny Financial Corp.

Performance Ratio Highlights

(Unaudited)

Three Months EndedVariance

or Change

September 30,

2024June 30,

2024Average yield on interest-earning assets: Loans receivable, including loans held for sale4.61%4.58%0.03%Taxable investment securities4.38%4.41%-0.03%Tax-exempt investment securities (1)2.32%2.32% -- %Other interest-earning assets7.47%7.14%0.33%Total interest-earning assets4.61%4.59%0.02% Average cost of interest-bearing liabilities: Deposits: Interest-bearing demand3.13%3.06%0.07%Savings1.05%0.63%0.42%Certificates of deposit3.51%3.35%0.16%Total interest-bearing deposits2.98%2.83%0.15%Borrowings: Federal Home Loan Bank advances3.82%3.86%-0.04%Other borrowings5.28%5.24%0.04%Total borrowings4.04%4.04% -- %Total interest-bearing liabilities3.24%3.16%0.08% Interest rate spread (2)1.37%1.43%-0.06%Net interest margin (3)1.80%1.84%-0.04% Non-interest income to average assets (annualized)0.24%0.30%-0.06%Non-interest expense to average assets (annualized)1.55%6.58%-5.03% Efficiency ratio (4)80.35%323.81%-243.46% Return on average assets (annualized)0.32%-4.68%5.00%Return on average equity (annualized)3.25%-47.97%51.22%Return on average tangible equity (annualized) (5)3.89%3.33%0.56% _________________________(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. Five-Quarter Financial Trend Analysis

Kearny Financial Corp.

Consolidated Balance Sheets

(Dollars and Shares in Thousands,

Except Per Share Data)September 30,

2024June 30,

2024March 31,

2024December 31,

2023September 30,

2023 (Unaudited)(Audited)(Unaudited)(Unaudited)(Unaudited)Assets Cash and cash equivalents$155,574 $63,864 $71,027 $73,860 $57,219 Securities available for sale 1,070,811 1,072,833 1,098,655 1,144,175 1,215,633 Securities held to maturity 132,256 135,742 139,643 141,959 143,730 Loans held-for-sale 8,866 6,036 4,117 14,030 3,934 Loans receivable 5,784,246 5,732,787 5,758,336 5,745,629 5,736,049 Less: allowance for credit losses on loans (44,923) (44,939) (44,930) (44,867) (46,872)Net loans receivable 5,739,323 5,687,848 5,713,406 5,700,762 5,689,177 Premises and equipment 45,189 44,940 45,053 45,928 46,868 Federal Home Loan Bank stock 57,706 80,300 81,347 83,372 81,509 Accrued interest receivable 29,467 29,521 31,065 30,258 29,766 Goodwill 113,525 113,525 210,895 210,895 210,895 Core deposit intangible 1,805 1,931 2,057 2,189 2,323 Bank owned life insurance 300,186 297,874 296,493 256,064 294,491 Deferred income taxes, net 50,131 50,339 47,225 46,116 56,500 Other real estate owned -- -- -- 11,982 12,956 Other assets 67,540 98,708 100,989 136,242 129,865 Total assets$7,772,379 $7,683,461 $7,841,972 $7,897,832 $7,974,866 Liabilities Deposits: Non-interest-bearing$592,099 $598,366 $586,089 $584,130 $595,141 Interest-bearing 4,878,413 4,559,757 4,622,961 4,735,500 4,839,027 Total deposits 5,470,512 5,158,123 5,209,050 5,319,630 5,434,168 Borrowings 1,479,888 1,709,789 1,722,178 1,667,055 1,626,933 Advance payments by borrowers for taxes 17,824 17,409 17,387 16,742 16,907 Other liabilities 52,618 44,569 44,279 46,427 47,324 Total liabilities 7,020,842 6,929,890 6,992,894 7,049,854 7,125,332 Stockholders' Equity Common stock 646 644 644 645 652 Paid-in capital 493,523 493,680 493,187 493,297 497,269 Retained earnings 342,522 343,326 440,308 439,755 460,464 Unearned ESOP shares (20,430) (20,916) (21,402) (21,889) (22,375)Accumulated other comprehensive loss (64,724) (63,163) (63,659) (63,830) (86,476)Total stockholders' equity 751,537 753,571 849,078 847,978 849,534 Total liabilities and stockholders' equity$7,772,379 $7,683,461 $7,841,972 $7,897,832 $7,974,866 Consolidated capital ratios Equity to assets 9.67% 9.81% 10.83% 10.74% 10.65%Tangible equity to tangible assets (1) 8.31% 8.43% 8.34% 8.26% 8.20% Share data Outstanding shares 64,580 64,434 64,437 64,445 65,132 Book value per share$11.64 $11.70 $13.18 $13.16 $13.04 Tangible book value per share (2)$9.85 $9.90 $9.87 $9.85 $9.77 _________________________

(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.

Kearny Financial Corp.

Supplemental Balance Sheet Highlights

(Unaudited)

(Dollars in Thousands)September 30,

2024June 30,

2024March 31,

2024December 31,

2023September 30,

2023Loan portfolio composition: Commercial loans: Multi-family mortgage$2,646,187 $2,645,851 $2,645,195 $2,651,274 $2,699,151 Nonresidential mortgage 950,771 948,075 965,539 947,287 946,801 Commercial business 145,984 142,747 147,326 144,134 149,229 Construction 227,327 209,237 229,457 221,933 230,703 Total commercial loans 3,970,269 3,945,910 3,987,517 3,964,628 4,025,884 One- to four-family residential mortgage 1,768,230 1,756,051 1,741,644 1,746,065 1,689,051 Consumer loans: Home equity loans 44,741 44,104 42,731 43,517 42,896 Other consumer 2,965 2,685 3,198 2,728 2,644 Total consumer loans 47,706 46,789 45,929 46,245 45,540 Total loans, excluding yield adjustments 5,786,205 5,748,750 5,775,090 5,756,938 5,760,475 Unaccreted yield adjustments (1,959) (15,963) (16,754) (11,309) (24,426)Loans receivable, net of yield adjustments 5,784,246 5,732,787 5,758,336 5,745,629 5,736,049 Less: allowance for credit losses on loans (44,923) (44,939) (44,930) (44,867) (46,872)Net loans receivable$5,739,323 $5,687,848 $5,713,406 $5,700,762 $5,689,177 Asset quality: Nonperforming assets: Accruing loans - 90 days and over past due$ -- $ -- $ -- $ -- $ -- Nonaccrual loans 39,854 39,882 39,546 28,089 37,912 Total nonperforming loans 39,854 39,882 39,546 28,089 37,912 Nonaccrual loans held-for-sale -- -- -- 9,700 -- Other real estate owned -- -- -- 11,982 12,956 Total nonperforming assets$39,854 $39,882 $39,546 $49,771 $50,868 Nonperforming loans (% total loans) 0.69% 0.70% 0.69% 0.49% 0.66%Nonperforming assets (% total assets) 0.51% 0.52% 0.50% 0.63% 0.64% Classified loans$119,534 $118,700 $115,772 $94,676 $98,616 Allowance for credit losses on loans (ACL): ACL to total loans 0.78% 0.78% 0.78% 0.78% 0.81%ACL to nonperforming loans 112.72% 112.68% 113.61% 159.73% 123.63%Net charge-offs$124 $3,518 $286 $4,110 $2,107 Average net charge-off rate (annualized) 0.01% 0.25% 0.02% 0.29% 0.15% Kearny Financial Corp.

Supplemental Balance Sheet Highlights

(Unaudited)

(Dollars in Thousands)September 30,

2024June 30,

2024March 31,

2024December 31,

2023September 30,

2023Funding composition: Deposits: Non-interest-bearing deposits$592,099 $598,367 $586,089 $584,130 $595,141 Interest-bearing demand 2,247,685 2,308,915 2,349,032 2,347,262 2,236,573 Savings 681,709 643,481 630,456 646,182 689,163 Certificates of deposit (retail) 1,215,746 1,199,127 1,235,261 1,283,676 1,300,382 Certificates of deposit (brokered and listing service) 733,273 408,234 408,212 458,380 612,909 Interest-bearing deposits 4,878,413 4,559,757 4,622,961 4,735,500 4,839,027 Total deposits 5,470,512 5,158,124 5,209,050 5,319,630 5,434,168 Borrowings: Federal Home Loan Bank advances 1,209,888 1,534,789 1,457,178 1,432,055 1,456,933 Overnight borrowings 270,000 175,000 265,000 235,000 170,000 Total borrowings 1,479,888 1,709,789 1,722,178 1,667,055 1,626,933 Total funding$6,950,400 $6,867,913 $6,931,228 $6,986,685 $7,061,101 Loans as a % of deposits 105.1% 110.4% 109.8% 107.4% 104.8%Deposits as a % of total funding 78.7% 75.1% 75.2% 76.1% 77.0%Borrowings as a % of total funding 21.3% 24.9% 24.8% 23.9% 23.0% Uninsured deposits: Uninsured deposits (reported) (1)$1,799,726 $1,772,623 $1,760,740 $1,813,122 $1,734,288 Uninsured deposits (adjusted) (2)$773,375 $764,447 $718,026 $694,510 $683,265 _________________________

(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.

Kearny Financial Corp.

Consolidated Statements of Income (Loss)

(Unaudited) Three Months Ended(Dollars and Shares in Thousands,

Except Per Share Data)September 30,

2024June 30,

2024March 31,

2024December 31,

2023September 30,

2023Interest income Loans$66,331 $65,819 $64,035 $63,384 $62,769 Taxable investment securities 14,384 14,802 15,490 16,756 16,265 Tax-exempt investment securities 71 80 85 84 87 Other interest-earning assets 2,466 2,289 2,475 2,401 2,047 Total interest income 83,252 82,990 82,085 82,625 81,168 Interest expense Deposits 35,018 32,187 32,320 30,340 27,567 Borrowings 15,788 17,527 15,446 16,446 14,441 Total interest expense 50,806 49,714 47,766 46,786 42,008 Net interest income 32,446 33,276 34,319 35,839 39,160 Provision for credit losses 108 3,527 349 2,105 245 Net interest income after provision for credit losses 32,338 29,749 33,970 33,734 38,915 Non-interest income Fees and service charges 635 580 657 624 748 Loss on sale and call of securities -- -- -- (18,135) -- Gain (loss) on sale of loans 200 111 (712) 104 215 Loss on sale of other real estate owned -- -- -- (974) -- Income from bank owned life insurance 2,567 3,209 3,039 1,162 1,666 Electronic banking fees and charges 391 1,130 464 396 367 Other income 833 776 755 811 1,014 Total non-interest income 4,626 5,806 4,203 (16,012) 4,010 Non-interest expense Salaries and employee benefits 17,498 17,266 16,911 17,282 17,761 Net occupancy expense of premises 2,798 2,738 2,863 2,674 2,758 Equipment and systems 3,860 3,785 3,823 3,814 3,801 Advertising and marketing 342 480 387 301 228 Federal deposit insurance premium 1,563 1,532 1,429 1,495 1,524 Directors' compensation 361 360 360 393 393 Goodwill impairment -- 97,370 -- -- -- Other expense 3,364 3,020 3,286 3,808 3,309 Total non-interest expense 29,786 126,551 29,059 29,767 29,774 Income (loss) before income taxes 7,178 (90,996) 9,114 (12,045) 13,151 Income taxes 1,086 (917) 1,717 1,782 3,309 Net income (loss)$6,092 $(90,079)$7,397 $(13,827)$9,842 Net income (loss) per common share (EPS) Basic$0.10 $(1.45)$0.12 $(0.22)$0.16 Diluted$0.10 $(1.45)$0.12 $(0.22)$0.16 Dividends declared Cash dividends declared per common share$0.11 $0.11 $0.11 $0.11 $0.11 Cash dividends declared$6,896 $6,903 $6,844 $6,882 $6,989 Dividend payout ratio 113.2% -7.7% 92.5% -49.8% 71.0% Weighted average number of common shares outstanding Basic 62,389 62,254 62,205 62,299 63,014 Diluted 62,420 62,254 62,211 62,299 63,061 Kearny Financial Corp.

Average Balance Sheet Data

(Unaudited) Three Months Ended(Dollars in Thousands)September 30,

2024June 30,

2024March 31,

2024December 31,

2023September 30,

2023Assets Interest-earning assets: Loans receivable, including loans held-for-sale$5,761,593 $5,743,008 $5,752,477 $5,726,321 $5,788,074 Taxable investment securities 1,314,945 1,343,541 1,382,064 1,509,165 1,516,393 Tax-exempt investment securities 12,244 13,737 14,614 15,025 15,483 Other interest-earning assets 131,981 128,257 125,155 139,740 130,829 Total interest-earning assets 7,220,763 7,228,543 7,274,310 7,390,251 7,450,779 Non-interest-earning assets 467,670 466,537 577,411 554,335 568,723 Total assets$7,688,433 $7,695,080 $7,851,721 $7,944,586 $8,019,502 Liabilities and Stockholders' Equity Interest-bearing liabilities: Deposits: Interest-bearing demand$2,282,608 $2,310,521 $2,378,831 $2,301,169 $2,245,831 Savings 668,240 631,622 635,226 664,926 719,508 Certificates of deposit 1,755,589 1,613,798 1,705,513 1,824,316 1,968,512 Total interest-bearing deposits 4,706,437 4,555,941 4,719,570 4,790,411 4,933,851 Borrowings: Federal Home Loan Bank advances 1,325,583 1,507,192 1,428,801 1,513,497 1,386,473 Other borrowings 237,011 228,461 210,989 142,283 158,098 Total borrowings 1,562,594 1,735,653 1,639,790 1,655,780 1,544,571 Total interest-bearing liabilities 6,269,031 6,291,594 6,359,360 6,446,191 6,478,422 Non-interest-bearing liabilities: Non-interest-bearing deposits 599,095 589,438 581,870 597,294 612,251 Other non-interest-bearing liabilities 69,629 62,978 65,709 62,387 66,701 Total non-interest-bearing liabilities 668,724 652,416 647,579 659,681 678,952 Total liabilities 6,937,755 6,944,010 7,006,939 7,105,872 7,157,374 Stockholders' equity 750,678 751,070 844,782 838,714 862,128 Total liabilities and stockholders' equity$7,688,433 $7,695,080 $7,851,721 $7,944,586 $8,019,502 Average interest-earning assets to average

interest-bearing liabilities 115.18% 114.89% 114.39% 114.65% 115.01% Kearny Financial Corp.

Performance Ratio Highlights Three Months Ended September 30,

2024June 30,

2024March 31,

2024December 31,

2023September 30,

2023Average yield on interest-earning assets: Loans receivable, including loans held-for-sale4.61%4.58%4.45%4.43%4.34%Taxable investment securities4.38%4.41%4.48%4.44%4.29%Tax-exempt investment securities (1)2.32%2.32%2.32%2.25%2.25%Other interest-earning assets7.47%7.14%7.91%6.87%6.26%Total interest-earning assets4.61%4.59%4.51%4.47%4.36% Average cost of interest-bearing liabilities: Deposits: Interest-bearing demand3.13%3.06%3.08%2.91%2.58%Savings1.05%0.63%0.46%0.44%0.47%Certificates of deposit3.51%3.35%3.11%2.82%2.49%Total interest-bearing deposits2.98%2.83%2.74%2.53%2.23%Borrowings: Federal Home Loan Bank advances3.82%3.86%3.55%3.82%3.54%Other borrowings5.28%5.24%5.22%5.65%5.46%Total borrowings4.04%4.04%3.77%3.97%3.74%Total interest-bearing liabilities3.24%3.16%3.00%2.90%2.59% Interest rate spread (2)1.37%1.43%1.51%1.57%1.77%Net interest margin (3)1.80%1.84%1.89%1.94%2.10% Non-interest income to average assets (annualized)0.24%0.30%0.21%-0.81%0.20%Non-interest expense to average assets (annualized)1.55%6.58%1.48%1.50%1.49% Efficiency ratio (4)80.35%323.81%75.43%150.13%68.97% Return on average assets (annualized)0.32%-4.68%0.38%-0.70%0.49%Return on average equity (annualized)3.25%-47.97%3.50%-6.59%4.57%Return on average tangible equity (annualized) (5)3.89%3.33%4.68%-8.84%6.07% _________________________

(1) The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.

(2) Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.

(3) Net interest income divided by average interest-earning assets.

(4) Non-interest expense divided by the sum of net interest income and non-interest income.

(5) Average tangible equity equals total average stockholders' equity reduced by average goodwill and average core deposit intangible assets.

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,

2024June 30,

2024March 31,

2024December 31,

2023September 30,

2023Adjusted net income: Net income (loss) (GAAP)$6,092 $(90,079)$7,397 $(13,827)$9,842 Non-recurring transactions - net of tax: Net effect of sale and call of securities -- -- -- 12,876 -- Net effect of bank-owned life insurance restructure -- 392 -- 6,286 -- Goodwill impairment -- 95,283 -- -- -- Adjusted net income$6,092 $5,596 $7,397 $5,335 $9,842 Calculation of pre-tax, pre-provision net revenue: Net income (loss) (GAAP)$6,092 $(90,079)$7,397 $(13,827)$9,842 Adjustments to net income (GAAP): Provision for income taxes 1,086 (917) 1,717 1,782 3,309 Provision for credit losses 108 3,527 349 2,105 245 Pre-tax, pre-provision net revenue (non-GAAP)$7,286 $(87,469)$9,463 $(9,940)$13,396 Adjusted earnings per share: Weighted average common shares - basic 62,389 62,254 62,205 62,299 63,014 Weighted average common shares - diluted 62,420 62,330 62,211 62,367 63,061 Earnings per share - basic (GAAP)$0.10 $(1.45)$0.12 $(0.22)$0.16 Earnings per share - diluted (GAAP)$0.10 $(1.45)$0.12 $(0.22)$0.16 Adjusted earnings per share - basic (non-GAAP)$0.10 $0.09 $0.12 $0.09 $0.16 Adjusted earnings per share - diluted (non-GAAP)$0.10 $0.09 $0.12 $0.09 $0.16 Pre-tax, pre-provision net revenue per share: Pre-tax, pre-provision net revenue per share - basic

(non-GAAP)$0.12 $(1.41)$0.15 $(0.16)$0.21 Pre-tax, pre-provision net revenue per share - diluted

(non-GAAP)$0.12 $(1.40)$0.15 $(0.16)$0.21 Adjusted return on average assets: Total average assets$7,688,433 $7,695,080 $7,851,721 $7,944,586 $8,019,502 Return on average assets (GAAP) 0.32% -4.68% 0.38% -0.70% 0.49%Adjusted return on average assets (non-GAAP) 0.32% 0.29% 0.38% 0.27% 0.49% Adjusted return on average equity: Total average equity$750,678 $751,070 $844,782 $838,714 $862,128 Return on average equity (GAAP) 3.25% -47.97% 3.50% -6.59% 4.57%Adjusted return on average equity (non-GAAP) 3.25% 2.98% 3.50% 2.54% 4.57% Kearny Financial Corp.

Reconciliation of GAAP to Non-GAAP

(Unaudited) Three Months Ended(Dollars and Shares in Thousands,

Except Per Share Data)September 30,

2024June 30,

2024March 31,

2024December 31,

2023September 30,

2023Adjusted return on average tangible equity: Total average equity$750,678 $751,070 $844,782 $838,714 $862,128 Less: average goodwill (113,525) (113,525) (210,895) (210,895) (210,895)Less: average other intangible assets (1,886) (2,006) (2,138) (2,277) (2,411)Total average tangible equity$635,267 $635,539 $631,749 $625,542 $648,822 Return on average tangible equity (non-GAAP) 3.89% 3.33% 4.68% -8.84% 6.07%Adjusted return on average tangible equity (non-GAAP) 3.89% 3.58% 4.68% 3.41% 6.07% Adjusted non-interest expense ratio: Non-interest expense (GAAP)$29,786 $126,551 $29,059 $29,767 $29,774 Non-recurring transactions: Goodwill impairment -- (97,370) -- -- -- Non-interest expense (non-GAAP)$29,786 $29,181 $29,059 $29,767 $29,774 Non-interest expense ratio (GAAP) 1.55% 6.58% 1.48% 1.50% 1.49%Adjusted non-interest expense ratio (non-GAAP) 1.55% 1.52% 1.48% 1.50% 1.49% Adjusted efficiency ratio: Non-interest expense (non-GAAP)$29,786 $29,181 $29,059 $29,767 $29,774 Net interest income (GAAP)$32,446 $33,276 $34,319 $35,839 $39,160 Total non-interest income (GAAP) 4,626 5,806 4,203 (16,012) 4,010 Non-recurring transactions: Net effect of sale and call of securities -- -- -- 18,135 -- Net effect of bank-owned life insurance restructure -- 392 -- 573 -- Total revenue (non-GAAP)$37,072 $39,474 $38,522 $38,535 $43,170 Efficiency ratio (GAAP) 80.35% 323.81% 75.43% 150.13% 68.97%Adjusted efficiency ratio (non-GAAP) 80.35% 73.92% 75.43% 77.25% 68.97%