Kearny Financial Corp. Announces First Quarter Fiscal 2027 Results and Declaration of Cash Dividend
FAIRFIELD, N.J., Oct. 22, 2026 (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, 2026 of $10.0 million, or $0.16 per diluted share, compared to $7.2 million, or $0.11 per diluted share, for the quarter ended June 30, 2026.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.11 per share, payable on November 18, 2026, to stockholders of record as of November 4, 2026.
Craig L. Montanaro, President and Chief Executive Officer, commented, “We are pleased to report continued progress this quarter, reflecting ongoing execution of our strategic plan, solid loan and deposit growth, and disciplined expense management. While our net interest margin reflected the impact of lower prepayment-related income and the repricing of our final remaining COVID-era wholesale funding position, our underlying margin drivers remain intact. Ongoing loan repricing and balance sheet remixing are expected to support further margin expansion in the quarters ahead.”
Mr. Montanaro continued, “Our strategic transformation continues to gain momentum as we deepen commercial client relationships, expand relationship-based deposit growth, and further reposition the balance sheet toward higher-yielding commercial and construction lending opportunities. During the quarter, we expanded our deposit-gathering capabilities with the launch of a dedicated Nonprofit and Independent Education Banking team. This initiative broadens access to attractive relationship-based funding sources and further diversifies our deposit franchise.”
First Quarter Highlights
- Net income increased 40.0% to $10.0 million, or $0.16 per diluted share.
- Pre-tax, pre-provision net revenue (non-GAAP) increased 14.0% to $13.5 million, or $0.21 per diluted share, reflecting ongoing strengthening of core earnings.
- Continued the strategic remixing of the loan portfolio, growing total loans by 7.2% on an annualized basis, while reducing multifamily mortgage exposure.
- Total deposits grew by 8.7% on an annualized basis, reflecting continued momentum across the Bank's commercial deposit initiatives and supporting loan growth and balance sheet optimization.
- Launched a Nonprofit and Independent Education Banking team led by a seasoned industry professional with extensive experience serving mission-driven organizations through specialized banking solutions, further strengthening the Bank's commercial banking capabilities.
Balance Sheet
- Total assets were $7.78 billion at September 30, 2026, an increase of $95.7 million, or 1.2%, from June 30, 2026.
- Investment securities totaled $1.04 billion at September 30, 2026, a decrease of $35.0 million, or 3.3%, from June 30, 2026.
- Loans receivable totaled $5.98 billion at September 30, 2026, an increase of $105.1 million, or 1.8%, from June 30, 2026.
- Deposits were $5.83 billion at September 30, 2026, an increase of $123.9 million, or 2.2%, from June 30, 2026, primarily driven by growth in interest-bearing demand deposits.
- Borrowings were $1.14 billion at September 30, 2026, a decrease of $15.0 million, or 1.3%, from June 30, 2026, reflecting reductions in overnight borrowings, partially offset by an increase in Federal Home Loan Bank (“FHLB”) advances.
- At September 30, 2026, the Company maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.21 billion, representing 28.5% of total assets.
Earnings
Net Interest Income and Net Interest Margin
- Average loan yields increased 10 basis points and average loan balances grew for the quarter ended September 30, 2026, contributing to an increase of $2.2 million, or 2.7%, in total interest income. Net interest margin was 2.23% for the quarter ended September 30, 2026, a decrease of three basis points from the prior quarter, as the benefit from higher asset yields was offset by the repricing of the Company’s final remaining COVID-era wholesale funding position and declines in purchase accounting accretion and loan prepayment penalty income, as described in further detail below.
- For the quarter ended September 30, 2026, net interest income decreased $294,000 to $40.1 million from $40.4 million for the quarter ended June 30, 2026. Included in net interest income for the quarters ended September 30, 2026 and June 30, 2026, respectively, was purchase accounting accretion of $396,000 and $537,000, and loan prepayment penalty income of $336,000 and $622,000. Excluding loan prepayment penalty income and purchase accounting accretion, net interest income increased $132,000 from the prior period.
Non-Interest Income
- For the quarter ended September 30, 2026, non-interest income decreased $110,000, or 2.1%, to $5.2 million from $5.3 million for the quarter ended June 30, 2026, primarily due to a non-recurring write-down of $122,000 on one other real estate owned property resulting from an updated appraisal. The remaining changes in non-interest income reflected normal operating fluctuations within those line items.
Non-Interest Expense
- For the quarter ended September 30, 2026, non-interest expense decreased $2.1 million, or 6.1%, to $31.8 million from $33.9 million for the quarter ended June 30, 2026, primarily driven by decreases in salary and benefits, advertising, equipment and systems, and other expense.
- Salary and benefits expense decreased $883,000 to $19.4 million for the quarter ended September 30, 2026 from $20.3 million for the quarter ended June 30, 2026, primarily driven by the absence of a $745,000 non-recurring severance charge recorded in the prior period and a $193,000 non-recurring decrease in stock-based compensation recorded in the current period. Excluding these items, salary and benefits expense remained relatively unchanged at $19.6 million for both periods.
- Advertising and marketing expense decreased $365,000 to $381,000 for the quarter ended September 30, 2026 from $746,000 for the quarter ended June 30, 2026, primarily driven by lower advertising expenses across various formats.
- Equipment and systems expense decreased $126,000 to $3.7 million for the quarter ended September 30, 2026 from $3.9 million for the quarter ended June 30, 2026, primarily driven by lower third-party core processing service fees.
- Other expense decreased $705,000 to $3.7 million for the quarter ended September 30, 2026 from $4.4 million for the quarter ended June 30, 2026, primarily driven by lower professional fees, provision for credit losses on unfunded commitments, and other real estate owned expenses. 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 $2.6 million for the quarter ended September 30, 2026 compared to $3.8 million for the quarter ended June 30, 2026, resulting in an effective tax rate of 20.7% and 34.9%, respectively. Income tax expense in the prior period included a $1.6 million valuation allowance against a deferred tax asset related to certain legacy stock-based compensation awards.
Asset Quality
- The balance of non-performing assets increased $3.2 million to $56.6 million, or 0.73% of total assets, at September 30, 2026 from $53.4 million, or 0.70% of total assets, at June 30, 2026.
- Net charge-offs totaled $277,000, or 0.02% of average loans, on an annualized basis, for the quarter ended September 30, 2026, compared to $49,000, or less than 0.01% of average loans, on an annualized basis, for the quarter ended June 30, 2026.
- For the quarter ended September 30, 2026, the Company recorded a provision for credit losses of $830,000, compared to $822,000 for the quarter ended June 30, 2026. The provision for credit loss expense for the quarter ended September 30, 2026 was primarily driven by loan growth.
- Allowance for credit losses (“ACL”) was $46.0 million, or 0.77% of total loans, at September 30, 2026, an increase of $553,000 from $45.5 million, or 0.77% of total loans, at June 30, 2026. The increase in the ACL from June 30, 2026 was primarily driven by a provision for credit losses, partially offset by loan charge-offs, as noted above.
Capital
- For the quarter ended September 30, 2026, book value per share decreased $0.20, or 1.7%, to $11.64 and tangible book value per share (non-GAAP) decreased $0.19, or 1.9%, to $9.88, primarily reflecting changes in the fair value of available-for-sale securities resulting from market interest rate movements during the quarter.
- At September 30, 2026, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $90.6 million, partially offset by after-tax unrealized gains on derivatives of $13.1 million. After-tax net unrecognized losses on securities held to maturity of $11.6 million were not reflected in total stockholders’ equity.
- At September 30, 2026, the Company’s tangible equity to tangible assets ratio (non-GAAP) equaled 8.37%. Additionally, the regulatory capital ratios of both the Company and the Bank continued to be in excess of all applicable regulatory requirements as of September 30, 2026.
This earnings release should be read in conjunction with Kearny Financial Corp.’s Q1 2027 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.
| Linked-Quarter Comparative Financial Analysis | |||||||||||
| Kearny Financial Corp. Consolidated Balance Sheets (Unaudited) | |||||||||||
| (Dollars and Shares in Thousands, Except Per Share Data) | September 30, 2026 | June 30, 2026 | Variance or Change | Variance or Change Pct. | |||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 115,829 | $ | 114,823 | $ | 1,006 | 0.9 | % | |||
| Securities available for sale | 931,965 | 964,369 | (32,404 | ) | -3.4 | % | |||||
| Securities held to maturity | 104,228 | 106,814 | (2,586 | ) | -2.4 | % | |||||
| Loans held-for-sale | 4,786 | 6,022 | (1,236 | ) | -20.5 | % | |||||
| Loans receivable | 5,980,398 | 5,875,325 | 105,073 | 1.8 | % | ||||||
| Less: allowance for credit losses on loans | (46,049 | ) | (45,496 | ) | 553 | 1.2 | % | ||||
| Net loans receivable | 5,934,349 | 5,829,829 | 104,520 | 1.8 | % | ||||||
| Premises and equipment | 42,112 | 42,359 | (247 | ) | -0.6 | % | |||||
| Federal Home Loan Bank stock | 59,176 | 59,726 | (550 | ) | -0.9 | % | |||||
| Accrued interest receivable | 31,328 | 27,875 | 3,453 | 12.4 | % | ||||||
| Goodwill | 113,525 | 113,525 | — | — | % | ||||||
| Core deposit intangible | 857 | 968 | (111 | ) | -11.5 | % | |||||
| Bank owned life insurance | 317,512 | 314,756 | 2,756 | 0.9 | % | ||||||
| Deferred income taxes, net | 52,953 | 48,699 | 4,254 | 8.7 | % | ||||||
| Other real estate owned | 5,397 | 5,519 | (122 | ) | -2.2 | % | |||||
| Other assets | 63,885 | 46,921 | 16,964 | 36.2 | % | ||||||
| Total assets | $ | 7,777,902 | $ | 7,682,205 | $ | 95,697 | 1.2 | % | |||
| Liabilities | |||||||||||
| Deposits: | |||||||||||
| Non-interest-bearing | $ | 790,227 | $ | 788,015 | $ | 2,212 | 0.3 | % | |||
| Interest-bearing | 5,043,269 | 4,921,610 | 121,659 | 2.5 | % | ||||||
| Total deposits | 5,833,496 | 5,709,625 | 123,871 | 2.2 | % | ||||||
| Borrowings | 1,135,000 | 1,150,000 | (15,000 | ) | -1.3 | % | |||||
| Advance payments by borrowers for taxes | 18,640 | 18,562 | 78 | 0.4 | % | ||||||
| Other liabilities | 34,861 | 37,348 | (2,487 | ) | -6.7 | % | |||||
| Total liabilities | 7,021,997 | 6,915,535 | 106,462 | 1.5 | % | ||||||
| Stockholders' Equity | |||||||||||
| Common stock | 649 | 648 | 1 | 0.2 | % | ||||||
| Paid-in capital | 495,513 | 495,953 | (440 | ) | -0.1 | % | |||||
| Retained earnings | 353,055 | 350,046 | 3,009 | 0.9 | % | ||||||
| Unearned ESOP shares | (16,538 | ) | (17,025 | ) | 487 | 2.9 | % | ||||
| Accumulated other comprehensive loss | (76,774 | ) | (62,952 | ) | (13,822 | ) | -22.0 | % | |||
| Total stockholders' equity | 755,905 | 766,670 | (10,765 | ) | -1.4 | % | |||||
| Total liabilities and stockholders' equity | $ | 7,777,902 | $ | 7,682,205 | $ | 95,697 | 1.2 | % | |||
| Consolidated capital ratios | |||||||||||
| Equity to assets | 9.72 | % | 9.98 | % | -0.26 | % | |||||
| Tangible equity to tangible assets (non-GAAP) (1) | 8.37 | % | 8.62 | % | -0.25 | % | |||||
| Share data | |||||||||||
| Outstanding shares | 64,929 | 64,738 | 191 | 0.3 | % | ||||||
| Book value per share | $ | 11.64 | $ | 11.84 | $ | (0.20 | ) | -1.7 | % | ||
| Tangible book value per share (non-GAAP) (2) | $ | 9.88 | $ | 10.07 | $ | (0.19 | ) | -1.9 | % | ||
________________________
(1) Tangible equity and tangible assets exclude goodwill and core deposit intangibles.
(2) Tangible book value excludes goodwill and core deposit intangibles.
| 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, 2026 | June 30, 2026 | ||||||||||
| Interest income | |||||||||||
| Loans | $ | 71,425 | $ | 69,376 | $ | 2,049 | 3.0 | % | |||
| Taxable investment securities | 11,462 | 11,328 | 134 | 1.2 | % | ||||||
| Tax-exempt investment securities | 26 | 29 | (3 | ) | -10.3 | % | |||||
| Other interest-earning assets | 1,317 | 1,251 | 66 | 5.3 | % | ||||||
| Total interest income | 84,230 | 81,984 | 2,246 | 2.7 | % | ||||||
| Interest expense | |||||||||||
| Deposits | 31,923 | 30,537 | 1,386 | 4.5 | % | ||||||
| Borrowings | 12,227 | 11,073 | 1,154 | 10.4 | % | ||||||
| Total interest expense | 44,150 | 41,610 | 2,540 | 6.1 | % | ||||||
| Net interest income | 40,080 | 40,374 | (294 | ) | -0.7 | % | |||||
| Provision for credit losses | 830 | 822 | 8 | 1.0 | % | ||||||
| Net interest income after provision for credit losses | 39,250 | 39,552 | (302 | ) | -0.8 | % | |||||
| Non-interest income | |||||||||||
| Fees and service charges | 1,022 | 1,066 | (44 | ) | -4.1 | % | |||||
| Gain on sale of loans | 217 | 316 | (99 | ) | -31.3 | % | |||||
| Loss on other real estate owned | (122 | ) | — | (122 | ) | — | % | ||||
| Income from bank owned life insurance | 2,756 | 2,706 | 50 | 1.8 | % | ||||||
| Electronic banking fees and charges | 464 | 460 | 4 | 0.9 | % | ||||||
| Other income | 866 | 765 | 101 | 13.2 | % | ||||||
| Total non-interest income | 5,203 | 5,313 | (110 | ) | -2.1 | % | |||||
| Non-interest expense | |||||||||||
| Salaries and employee benefits | 19,430 | 20,313 | (883 | ) | -4.3 | % | |||||
| Net occupancy expense of premises | 2,785 | 2,862 | (77 | ) | -2.7 | % | |||||
| Equipment and systems | 3,725 | 3,851 | (126 | ) | -3.3 | % | |||||
| Advertising and marketing | 381 | 746 | (365 | ) | -48.9 | % | |||||
| Federal deposit insurance premium | 1,425 | 1,360 | 65 | 4.8 | % | ||||||
| Directors' compensation | 333 | 307 | 26 | 8.5 | % | ||||||
| Other expense | 3,708 | 4,413 | (705 | ) | -16.0 | % | |||||
| Total non-interest expense | 31,787 | 33,852 | (2,065 | ) | -6.1 | % | |||||
| Income before income taxes | 12,666 | 11,013 | 1,653 | 15.0 | % | ||||||
| Income taxes | 2,622 | 3,841 | (1,219 | ) | -31.7 | % | |||||
| Net income | $ | 10,044 | $ | 7,172 | $ | 2,872 | 40.0 | % | |||
| Net income per common share (EPS) | |||||||||||
| Basic | $ | 0.16 | $ | 0.11 | $ | 0.05 | |||||
| Diluted | $ | 0.16 | $ | 0.11 | $ | 0.05 | |||||
| Dividends declared | |||||||||||
| Cash dividends declared per common share | $ | 0.11 | $ | 0.11 | $ | — | |||||
| Cash dividends declared | $ | 7,035 | $ | 7,008 | $ | 27 | |||||
| Dividend payout ratio | 70.0 | % | 97.7 | % | -27.7 | % | |||||
| Weighted average number of common shares outstanding | |||||||||||
| Basic | 63,122 | 62,958 | 164 | ||||||||
| Diluted | 63,563 | 63,403 | 160 | ||||||||
| Kearny Financial Corp. Average Balance Sheet Data (Unaudited) | |||||||||||
| (Dollars in Thousands) | Three Months Ended | Variance or Change | Variance or Change Pct. | ||||||||
| September 30, 2026 | June 30, 2026 | ||||||||||
| Assets | |||||||||||
| Interest-earning assets: | |||||||||||
| Loans receivable, including loans held for sale | $ | 5,908,455 | $ | 5,854,248 | $ | 54,207 | 0.9 | % | |||
| Taxable investment securities | 1,171,085 | 1,185,569 | (14,484 | ) | -1.2 | % | |||||
| Tax-exempt investment securities | 4,344 | 4,759 | (415 | ) | -8.7 | % | |||||
| Other interest-earning assets | 115,794 | 109,098 | 6,696 | 6.1 | % | ||||||
| Total interest-earning assets | 7,199,678 | 7,153,674 | 46,004 | 0.6 | % | ||||||
| Non-interest-earning assets | 456,954 | 456,877 | 77 | 0.0 | % | ||||||
| Total assets | $ | 7,656,632 | $ | 7,610,551 | $ | 46,081 | 0.6 | % | |||
| Liabilities and Stockholders' Equity | |||||||||||
| Interest-bearing liabilities: | |||||||||||
| Deposits: | |||||||||||
| Interest-bearing demand | $ | 2,272,168 | $ | 2,207,264 | $ | 64,904 | 2.9 | % | |||
| Savings | 748,945 | 760,770 | (11,825 | ) | -1.6 | % | |||||
| Certificates of deposit (retail) | 1,181,612 | 1,190,922 | (9,310 | ) | -0.8 | % | |||||
| Certificates of deposit (brokered) | 565,208 | 673,031 | (107,823 | ) | -16.0 | % | |||||
| Total interest-bearing deposits | 4,767,933 | 4,831,987 | (64,054 | ) | -1.3 | % | |||||
| Borrowings: | |||||||||||
| Federal Home Loan Bank advances | 1,137,228 | 1,022,637 | 114,591 | 11.2 | % | ||||||
| Other borrowings | 135,217 | 150,275 | (15,058 | ) | -10.0 | % | |||||
| Total borrowings | 1,272,445 | 1,172,912 | 99,533 | 8.5 | % | ||||||
| Total interest-bearing liabilities | 6,040,378 | 6,004,899 | 35,479 | 0.6 | % | ||||||
| Non-interest-bearing liabilities: | |||||||||||
| Non-interest-bearing deposits | 796,212 | 788,059 | 8,153 | 1.0 | % | ||||||
| Other non-interest-bearing liabilities | 56,617 | 54,614 | 2,003 | 3.7 | % | ||||||
| Total non-interest-bearing liabilities | 852,829 | 842,673 | 10,156 | 1.2 | % | ||||||
| Total liabilities | 6,893,207 | 6,847,572 | 45,635 | 0.7 | % | ||||||
| Stockholders' equity | 763,425 | 762,979 | 446 | 0.1 | % | ||||||
| Total liabilities and stockholders' equity | $ | 7,656,632 | $ | 7,610,551 | $ | 46,081 | 0.6 | % | |||
| Average interest-earning assets to average interest-bearing liabilities | 119.19 | % | 119.13 | % | 0.06 | % | 0.1 | % | |||
| Kearny Financial Corp. Performance Ratio Highlights (Unaudited) | ||||||
| Three Months Ended | Variance or Change | |||||
| September 30, 2026 | June 30, 2026 | |||||
| Average yield on interest-earning assets: | ||||||
| Loans receivable, including loans held for sale | 4.84 | % | 4.74 | % | 0.10 | % |
| Taxable investment securities | 3.91 | % | 3.82 | % | 0.09 | % |
| Tax-exempt investment securities (1) | 2.43 | % | 2.40 | % | 0.03 | % |
| Other interest-earning assets | 4.55 | % | 4.59 | % | -0.04 | % |
| Total interest-earning assets | 4.68 | % | 4.58 | % | 0.10 | % |
| Average cost of interest-bearing liabilities: | ||||||
| Deposits: | ||||||
| Interest-bearing demand | 2.54 | % | 2.49 | % | 0.05 | % |
| Savings | 1.27 | % | 1.34 | % | -0.07 | % |
| Certificates of deposit (retail) | 3.19 | % | 3.17 | % | 0.02 | % |
| Certificates of deposit (brokered) | 4.03 | % | 2.87 | % | 1.16 | % |
| Total interest-bearing deposits | 2.68 | % | 2.53 | % | 0.15 | % |
| Borrowings: | ||||||
| Federal Home Loan Bank advances | 3.85 | % | 3.79 | % | 0.06 | % |
| Other borrowings | 3.77 | % | 3.71 | % | 0.06 | % |
| Total borrowings | 3.84 | % | 3.78 | % | 0.06 | % |
| Total interest-bearing liabilities | 2.92 | % | 2.77 | % | 0.15 | % |
| Interest rate spread (2) | 1.76 | % | 1.81 | % | -0.05 | % |
| Net interest margin (3) | 2.23 | % | 2.26 | % | -0.03 | % |
| Non-interest income to average assets (annualized) | 0.27 | % | 0.28 | % | -0.01 | % |
| Non-interest expense to average assets (annualized) | 1.66 | % | 1.78 | % | -0.12 | % |
| Efficiency ratio (4) | 70.20 | % | 74.09 | % | -3.89 | % |
| Return on average assets (annualized) | 0.52 | % | 0.38 | % | 0.14 | % |
| Return on average equity (annualized) | 5.26 | % | 3.76 | % | 1.50 | % |
| Return on average tangible equity (annualized) (5) | 6.24 | % | 4.48 | % | 1.76 | % |
_________________________
(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 excludes average goodwill and core deposit intangibles. See the “Reconciliation of GAAP to non-GAAP” table.
| Five-Quarter Financial Trend Analysis | |||||||||||||||
| Kearny Financial Corp. Consolidated Balance Sheets | |||||||||||||||
| (Dollars and Shares in Thousands, Except Per Share Data) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||
| (Unaudited) | (Audited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||
| Assets | |||||||||||||||
| Cash and cash equivalents | $ | 115,829 | $ | 114,823 | $ | 123,836 | $ | 147,340 | $ | 130,139 | |||||
| Securities available for sale | 931,965 | 964,369 | 983,325 | 1,000,397 | 1,016,182 | ||||||||||
| Securities held to maturity | 104,228 | 106,814 | 110,581 | 112,800 | 116,681 | ||||||||||
| Loans held-for-sale | 4,786 | 6,022 | 12,183 | 8,786 | 6,650 | ||||||||||
| Loans receivable | 5,980,398 | 5,875,325 | 5,779,181 | 5,753,393 | 5,767,419 | ||||||||||
| Less: allowance for credit losses on loans | (46,049 | ) | (45,496 | ) | (44,723 | ) | (44,958 | ) | (45,060 | ) | |||||
| Net loans receivable | 5,934,349 | 5,829,829 | 5,734,458 | 5,708,435 | 5,722,359 | ||||||||||
| Premises and equipment | 42,112 | 42,359 | 41,896 | 42,559 | 43,222 | ||||||||||
| Federal Home Loan Bank stock | 59,176 | 59,726 | 55,737 | 57,212 | 62,011 | ||||||||||
| Accrued interest receivable | 31,328 | 27,875 | 28,304 | 27,420 | 29,460 | ||||||||||
| Goodwill | 113,525 | 113,525 | 113,525 | 113,525 | 113,525 | ||||||||||
| Core deposit intangible | 857 | 968 | 1,080 | 1,198 | 1,317 | ||||||||||
| Bank owned life insurance | 317,512 | 314,756 | 312,050 | 309,404 | 307,248 | ||||||||||
| Deferred income taxes, net | 52,953 | 48,699 | 50,961 | 51,617 | 51,587 | ||||||||||
| Other real estate owned | 5,397 | 5,519 | — | — | — | ||||||||||
| Other assets | 63,885 | 46,921 | 39,720 | 40,185 | 47,629 | ||||||||||
| Total assets | $ | 7,777,902 | $ | 7,682,205 | $ | 7,607,656 | $ | 7,620,878 | $ | 7,648,010 | |||||
| Liabilities | |||||||||||||||
| Deposits: | |||||||||||||||
| Non-interest-bearing | $ | 790,227 | $ | 788,015 | $ | 631,506 | $ | 627,180 | $ | 578,481 | |||||
| Interest-bearing | 5,043,269 | 4,921,610 | 5,097,576 | 5,084,370 | 5,053,401 | ||||||||||
| Total deposits | 5,833,496 | 5,709,625 | 5,729,082 | 5,711,550 | 5,631,882 | ||||||||||
| Borrowings | 1,135,000 | 1,150,000 | 1,060,000 | 1,095,000 | 1,206,497 | ||||||||||
| Advance payments by borrowers for taxes | 18,640 | 18,562 | 19,317 | 18,474 | 19,261 | ||||||||||
| Other liabilities | 34,861 | 37,348 | 36,225 | 38,458 | 37,166 | ||||||||||
| Total liabilities | 7,021,997 | 6,915,535 | 6,844,624 | 6,863,482 | 6,894,806 | ||||||||||
| Stockholders' Equity | |||||||||||||||
| Common stock | 649 | 648 | 648 | 648 | 648 | ||||||||||
| Paid-in capital | 495,513 | 495,953 | 495,442 | 494,959 | 494,490 | ||||||||||
| Retained earnings | 353,055 | 350,046 | 349,881 | 346,749 | 344,287 | ||||||||||
| Unearned ESOP shares | (16,538 | ) | (17,025 | ) | (17,511 | ) | (17,997 | ) | (18,484 | ) | |||||
| Accumulated other comprehensive loss | (76,774 | ) | (62,952 | ) | (65,428 | ) | (66,963 | ) | (67,737 | ) | |||||
| Total stockholders' equity | 755,905 | 766,670 | 763,032 | 757,396 | 753,204 | ||||||||||
| Total liabilities and stockholders' equity | $ | 7,777,902 | $ | 7,682,205 | $ | 7,607,656 | $ | 7,620,878 | $ | 7,648,010 | |||||
| Consolidated capital ratios | |||||||||||||||
| Equity to assets | 9.72 | % | 9.98 | % | 10.03 | % | 9.94 | % | 9.85 | % | |||||
| Tangible equity to tangible assets (non-GAAP) (1) | 8.37 | % | 8.62 | % | 8.65 | % | 8.56 | % | 8.47 | % | |||||
| Share data | |||||||||||||||
| Outstanding shares | 64,929 | 64,738 | 64,739 | 64,739 | 64,739 | ||||||||||
| Book value per share | $ | 11.64 | $ | 11.84 | $ | 11.79 | $ | 11.70 | $ | 11.63 | |||||
| Tangible book value per share (non-GAAP) (2) | $ | 9.88 | $ | 10.07 | $ | 10.02 | $ | 9.93 | $ | 9.86 | |||||
_________________________
(1) Tangible equity and tangible assets exclude goodwill and core deposit intangibles.
(2) Tangible book value excludes goodwill and core deposit intangibles.
| Kearny Financial Corp. Supplemental Balance Sheet Highlights (Unaudited) | |||||||||||||||
| (Dollars in Thousands) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||
| Loan portfolio composition: | |||||||||||||||
| Commercial loans: | |||||||||||||||
| Multi-family mortgage | $ | 2,436,745 | $ | 2,499,894 | $ | 2,555,001 | $ | 2,619,124 | $ | 2,640,737 | |||||
| Nonresidential mortgage | 1,049,308 | 1,019,445 | 1,012,422 | 990,178 | 988,969 | ||||||||||
| Commercial and industrial | 231,361 | 223,927 | 201,277 | 169,884 | 142,304 | ||||||||||
| Construction | 303,007 | 263,200 | 207,765 | 181,766 | 189,626 | ||||||||||
| Total commercial loans | 4,020,421 | 4,006,466 | 3,976,465 | 3,960,952 | 3,961,636 | ||||||||||
| One- to four-family residential mortgage | 1,810,732 | 1,789,865 | 1,741,023 | 1,730,543 | 1,749,362 | ||||||||||
| Consumer loans: | |||||||||||||||
| Home equity loans | 76,827 | 79,844 | 61,379 | 59,046 | 54,116 | ||||||||||
| Other consumer | 77,397 | 2,387 | 2,377 | 2,523 | 2,487 | ||||||||||
| Total consumer loans | 154,224 | 82,231 | 63,756 | 61,569 | 56,603 | ||||||||||
| Total loans, excluding yield adjustments | 5,985,377 | 5,878,562 | 5,781,244 | 5,753,064 | 5,767,601 | ||||||||||
| Unaccreted yield adjustments | (4,979 | ) | (3,237 | ) | (2,063 | ) | 329 | (182 | ) | ||||||
| Loans receivable, net of yield adjustments | 5,980,398 | 5,875,325 | 5,779,181 | 5,753,393 | 5,767,419 | ||||||||||
| Less: allowance for credit losses on loans | (46,049 | ) | (45,496 | ) | (44,723 | ) | (44,958 | ) | (45,060 | ) | |||||
| Net loans receivable | $ | 5,934,349 | $ | 5,829,829 | $ | 5,734,458 | $ | 5,708,435 | $ | 5,722,359 | |||||
| Asset quality: | |||||||||||||||
| Nonperforming assets: | |||||||||||||||
| Accruing loans - 90 days and over past due | $ | — | $ | — | $ | — | $ | — | $ | 20,494 | |||||
| Nonaccrual loans | 51,160 | 47,896 | 52,379 | 51,306 | 44,085 | ||||||||||
| Total nonperforming loans | 51,160 | 47,896 | 52,379 | 51,306 | 64,579 | ||||||||||
| Other real estate owned | 5,397 | 5,519 | — | — | — | ||||||||||
| Total nonperforming assets | $ | 56,557 | $ | 53,415 | $ | 52,379 | $ | 51,306 | $ | 64,579 | |||||
| Nonperforming loans (% total loans) | 0.86 | % | 0.82 | % | 0.91 | % | 0.89 | % | 1.12 | % | |||||
| Nonperforming assets (% total assets) | 0.73 | % | 0.70 | % | 0.69 | % | 0.67 | % | 0.84 | % | |||||
| Classified loans | $ | 90,891 | $ | 88,202 | $ | 97,384 | $ | 97,542 | $ | 117,780 | |||||
| Allowance for credit losses on loans (ACL): | |||||||||||||||
| ACL to total loans | 0.77 | % | 0.77 | % | 0.77 | % | 0.78 | % | 0.78 | % | |||||
| ACL to nonperforming loans | 90.01 | % | 94.99 | % | 85.38 | % | 87.63 | % | 69.78 | % | |||||
| Net charge-offs | $ | 277 | $ | 49 | $ | 626 | $ | 669 | $ | 1,049 | |||||
| Average net charge-off rate (annualized) | 0.02 | % | 0.00 | % | 0.04 | % | 0.05 | % | 0.07 | % | |||||
| Kearny Financial Corp. Supplemental Balance Sheet Highlights (Unaudited) | |||||||||||||||
| (Dollars in Thousands) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||
| Funding composition: | |||||||||||||||
| Deposits: | |||||||||||||||
| Non-interest-bearing deposits | $ | 790,227 | $ | 788,015 | $ | 631,506 | $ | 627,180 | $ | 578,481 | |||||
| Interest-bearing demand | 2,358,751 | 2,214,432 | 2,375,565 | 2,376,825 | 2,334,560 | ||||||||||
| Savings | 730,531 | 766,502 | 763,016 | 769,742 | 751,253 | ||||||||||
| Certificates of deposit (retail) | 1,198,701 | 1,183,427 | 1,201,752 | 1,180,370 | 1,208,408 | ||||||||||
| Certificates of deposit (brokered) | 755,286 | 757,249 | 757,243 | 757,433 | 759,180 | ||||||||||
| Interest-bearing deposits | 5,043,269 | 4,921,610 | 5,097,576 | 5,084,370 | 5,053,401 | ||||||||||
| Total deposits | 5,833,496 | 5,709,625 | 5,729,082 | 5,711,550 | 5,631,882 | ||||||||||
| Borrowings: | |||||||||||||||
| Federal Home Loan Bank advances | 1,025,000 | 950,000 | 900,000 | 800,000 | 1,006,497 | ||||||||||
| Overnight borrowings | 110,000 | 200,000 | 160,000 | 295,000 | 200,000 | ||||||||||
| Total borrowings | 1,135,000 | 1,150,000 | 1,060,000 | 1,095,000 | 1,206,497 | ||||||||||
| Total funding | $ | 6,968,496 | $ | 6,859,625 | $ | 6,789,082 | $ | 6,806,550 | $ | 6,838,379 | |||||
| Loans as a % of deposits | 101.8 | % | 102.2 | % | 100.3 | % | 100.1 | % | 101.7 | % | |||||
| Deposits as a % of total funding | 83.7 | % | 83.2 | % | 84.4 | % | 83.9 | % | 82.4 | % | |||||
| Borrowings as a % of total funding | 16.3 | % | 16.8 | % | 15.6 | % | 16.1 | % | 17.6 | % | |||||
| Uninsured deposits: | |||||||||||||||
| Uninsured deposits (reported) (1) | $ | 2,418,530 | $ | 2,245,646 | $ | 2,199,708 | $ | 2,158,440 | $ | 2,040,021 | |||||
| Uninsured deposits (adjusted) (2) | $ | 883,421 | $ | 850,952 | $ | 839,094 | $ | 800,998 | $ | 804,209 | |||||
_________________________
(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 (Unaudited) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| (Dollars and Shares in Thousands, Except Per Share Data) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||
| Interest income | |||||||||||||||
| Loans | $ | 71,425 | $ | 69,376 | $ | 66,310 | $ | 67,410 | $ | 68,349 | |||||
| Taxable investment securities | 11,462 | 11,328 | 11,425 | 11,623 | 12,600 | ||||||||||
| Tax-exempt investment securities | 26 | 29 | 34 | 35 | 41 | ||||||||||
| Other interest-earning assets | 1,317 | 1,251 | 1,400 | 1,584 | 1,518 | ||||||||||
| Total interest income | 84,230 | 81,984 | 79,169 | 80,652 | 82,508 | ||||||||||
| Interest expense | |||||||||||||||
| Deposits | 31,923 | 30,537 | 31,045 | 33,148 | 33,931 | ||||||||||
| Borrowings | 12,227 | 11,073 | 8,888 | 9,535 | 10,873 | ||||||||||
| Total interest expense | 44,150 | 41,610 | 39,933 | 42,683 | 44,804 | ||||||||||
| Net interest income | 40,080 | 40,374 | 39,236 | 37,969 | 37,704 | ||||||||||
| Provision for (reversal of) credit losses | 830 | 822 | 391 | 567 | (82 | ) | |||||||||
| Net interest income after provision for (reversal of) credit losses | 39,250 | 39,552 | 38,845 | 37,402 | 37,786 | ||||||||||
| Non-interest income | |||||||||||||||
| Fees and service charges | 1,022 | 1,066 | 922 | 1,295 | 892 | ||||||||||
| Gain on sale of loans | 217 | 316 | 193 | 224 | 199 | ||||||||||
| Loss on other real estate owned | (122 | ) | — | — | — | — | |||||||||
| Income from bank owned life insurance | 2,756 | 2,706 | 2,646 | 2,710 | 2,689 | ||||||||||
| Electronic banking fees and charges | 464 | 460 | 389 | 473 | 416 | ||||||||||
| Other income | 866 | 765 | 1,944 | 869 | 1,651 | ||||||||||
| Total non-interest income | 5,203 | 5,313 | 6,094 | 5,571 | 5,847 | ||||||||||
| Non-interest expense | |||||||||||||||
| Salaries and employee benefits | 19,430 | 20,313 | 19,316 | 18,373 | 18,745 | ||||||||||
| Net occupancy expense of premises | 2,785 | 2,862 | 3,263 | 2,888 | 3,307 | ||||||||||
| Equipment and systems | 3,725 | 3,851 | 3,975 | 4,007 | 3,974 | ||||||||||
| Advertising and marketing | 381 | 746 | 665 | 412 | 562 | ||||||||||
| Federal deposit insurance premium | 1,425 | 1,360 | 1,302 | 1,357 | 1,301 | ||||||||||
| Directors' compensation | 333 | 307 | 307 | 306 | 307 | ||||||||||
| Other expense | 3,708 | 4,413 | 3,471 | 3,848 | 3,470 | ||||||||||
| Total non-interest expense | 31,787 | 33,852 | 32,299 | 31,191 | 31,666 | ||||||||||
| Income before income taxes | 12,666 | 11,013 | 12,640 | 11,782 | 11,967 | ||||||||||
| Income taxes | 2,622 | 3,841 | 2,503 | 2,333 | 2,461 | ||||||||||
| Net income | $ | 10,044 | $ | 7,172 | $ | 10,137 | $ | 9,449 | $ | 9,506 | |||||
| Net income per common share (EPS) | |||||||||||||||
| Basic | $ | 0.16 | $ | 0.11 | $ | 0.16 | $ | 0.15 | $ | 0.15 | |||||
| Diluted | $ | 0.16 | $ | 0.11 | $ | 0.16 | $ | 0.15 | $ | 0.15 | |||||
| Dividends declared | |||||||||||||||
| Cash dividends declared per common share | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.11 | |||||
| Cash dividends declared | $ | 7,035 | $ | 7,008 | $ | 7,005 | $ | 6,987 | $ | 6,963 | |||||
| Dividend payout ratio | 70.0 | % | 97.7 | % | 69.1 | % | 73.9 | % | 73.2 | % | |||||
| Weighted average number of common shares outstanding | |||||||||||||||
| Basic | 63,122 | 62,958 | 62,908 | 62,858 | 62,741 | ||||||||||
| Diluted | 63,563 | 63,403 | 63,251 | 63,061 | 62,951 | ||||||||||
| Kearny Financial Corp. Average Balance Sheet Data (Unaudited) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| (Dollars in Thousands) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||
| Assets | |||||||||||||||
| Interest-earning assets: | |||||||||||||||
| Loans receivable, including loans held-for-sale | $ | 5,908,455 | $ | 5,854,248 | $ | 5,785,095 | $ | 5,778,680 | $ | 5,806,767 | |||||
| Taxable investment securities | 1,171,085 | 1,185,569 | 1,194,487 | 1,185,602 | 1,236,705 | ||||||||||
| Tax-exempt investment securities | 4,344 | 4,759 | 5,669 | 5,902 | 6,856 | ||||||||||
| Other interest-earning assets | 115,794 | 109,098 | 106,967 | 123,475 | 115,776 | ||||||||||
| Total interest-earning assets | 7,199,678 | 7,153,674 | 7,092,218 | 7,093,659 | 7,166,104 | ||||||||||
| Non-interest-earning assets | 456,954 | 456,877 | 455,725 | 455,752 | 453,215 | ||||||||||
| Total assets | $ | 7,656,632 | $ | 7,610,551 | $ | 7,547,943 | $ | 7,549,411 | $ | 7,619,319 | |||||
| Liabilities and Stockholders' Equity | |||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||
| Deposits: | |||||||||||||||
| Interest-bearing demand | $ | 2,272,168 | $ | 2,207,264 | $ | 2,402,177 | $ | 2,385,397 | $ | 2,343,809 | |||||
| Savings | 748,945 | 760,770 | 761,090 | 759,247 | 754,244 | ||||||||||
| Certificates of deposit (retail) | 1,181,612 | 1,190,922 | 1,181,526 | 1,201,950 | 1,211,026 | ||||||||||
| Certificates of deposit (brokered) | 565,208 | 673,031 | 755,461 | 756,179 | 755,813 | ||||||||||
| Total interest-bearing deposits | 4,767,933 | 4,831,987 | 5,100,254 | 5,102,773 | 5,064,892 | ||||||||||
| Borrowings: | |||||||||||||||
| Federal Home Loan Bank advances | 1,137,228 | 1,022,637 | 861,445 | 998,760 | 1,077,146 | ||||||||||
| Other borrowings | 135,217 | 150,275 | 133,833 | 38,478 | 85,489 | ||||||||||
| Total borrowings | 1,272,445 | 1,172,912 | 995,278 | 1,037,238 | 1,162,635 | ||||||||||
| Total interest-bearing liabilities | 6,040,378 | 6,004,899 | 6,095,532 | 6,140,011 | 6,227,527 | ||||||||||
| Non-interest-bearing liabilities: | |||||||||||||||
| Non-interest-bearing deposits | 796,212 | 788,059 | 633,494 | 595,035 | 581,625 | ||||||||||
| Other non-interest-bearing liabilities | 56,617 | 54,614 | 59,644 | 59,447 | 65,024 | ||||||||||
| Total non-interest-bearing liabilities | 852,829 | 842,673 | 693,138 | 654,482 | 646,649 | ||||||||||
| Total liabilities | 6,893,207 | 6,847,572 | 6,788,670 | 6,794,493 | 6,874,176 | ||||||||||
| Stockholders' equity | 763,425 | 762,979 | 759,273 | 754,918 | 745,143 | ||||||||||
| Total liabilities and stockholders' equity | $ | 7,656,632 | $ | 7,610,551 | $ | 7,547,943 | $ | 7,549,411 | $ | 7,619,319 | |||||
| Average interest-earning assets to average interest-bearing liabilities | 119.19 | % | 119.13 | % | 116.35 | % | 115.53 | % | 115.07 | % | |||||
| Kearny Financial Corp. Performance Ratio Highlights | ||||||||||
| Three Months Ended | ||||||||||
| September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||
| Average yield on interest-earning assets: | ||||||||||
| Loans receivable, including loans held-for-sale | 4.84 | % | 4.74 | % | 4.58 | % | 4.67 | % | 4.71 | % |
| Taxable investment securities | 3.91 | % | 3.82 | % | 3.83 | % | 3.92 | % | 4.08 | % |
| Tax-exempt investment securities (1) | 2.43 | % | 2.40 | % | 2.37 | % | 2.36 | % | 2.42 | % |
| Other interest-earning assets | 4.55 | % | 4.59 | % | 5.24 | % | 5.13 | % | 5.24 | % |
| Total interest-earning assets | 4.68 | % | 4.58 | % | 4.47 | % | 4.55 | % | 4.61 | % |
| Average cost of interest-bearing liabilities: | ||||||||||
| Deposits: | ||||||||||
| Interest-bearing demand | 2.54 | % | 2.49 | % | 2.34 | % | 2.51 | % | 2.63 | % |
| Savings | 1.27 | % | 1.34 | % | 1.26 | % | 1.40 | % | 1.41 | % |
| Certificates of deposit (retail) | 3.19 | % | 3.17 | % | 3.20 | % | 3.45 | % | 3.56 | % |
| Certificates of deposit (brokered) | 4.03 | % | 2.87 | % | 2.71 | % | 2.72 | % | 2.67 | % |
| Total interest-bearing deposits | 2.68 | % | 2.53 | % | 2.43 | % | 2.60 | % | 2.68 | % |
| Borrowings: | ||||||||||
| Federal Home Loan Bank advances | 3.85 | % | 3.79 | % | 3.56 | % | 3.66 | % | 3.69 | % |
| Other borrowings | 3.77 | % | 3.71 | % | 3.66 | % | 4.13 | % | 4.44 | % |
| Total borrowings | 3.84 | % | 3.78 | % | 3.57 | % | 3.68 | % | 3.74 | % |
| Total interest-bearing liabilities | 2.92 | % | 2.77 | % | 2.62 | % | 2.78 | % | 2.88 | % |
| Interest rate spread (2) | 1.76 | % | 1.81 | % | 1.85 | % | 1.77 | % | 1.73 | % |
| Net interest margin (3) | 2.23 | % | 2.26 | % | 2.21 | % | 2.14 | % | 2.10 | % |
| Non-interest income to average assets (annualized) | 0.27 | % | 0.28 | % | 0.32 | % | 0.30 | % | 0.31 | % |
| Non-interest expense to average assets (annualized) | 1.66 | % | 1.78 | % | 1.71 | % | 1.65 | % | 1.66 | % |
| Efficiency ratio (4) | 70.20 | % | 74.09 | % | 71.25 | % | 71.64 | % | 72.71 | % |
| Return on average assets (annualized) | 0.52 | % | 0.38 | % | 0.54 | % | 0.50 | % | 0.50 | % |
| Return on average equity (annualized) | 5.26 | % | 3.76 | % | 5.34 | % | 5.01 | % | 5.10 | % |
| Return on average tangible equity (annualized) (5) | 6.24 | % | 4.48 | % | 6.34 | % | 5.96 | % | 6.09 | % |
_________________________
(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 excludes average goodwill and core deposit intangibles. See the “Reconciliation of GAAP to non-GAAP” table.
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, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||
| Adjusted net income: | |||||||||||||||
| Net income (GAAP) | $ | 10,044 | $ | 7,172 | $ | 10,137 | $ | 9,449 | $ | 9,506 | |||||
| Non-recurring transactions - net of tax: | |||||||||||||||
| Branch consolidation expenses | — | — | — | — | 178 | ||||||||||
| Severance expense from workforce realignment | — | 529 | — | — | — | ||||||||||
| Deferred tax asset valuation allowance | — | 1,562 | — | — | — | ||||||||||
| Gain on sale of property held for sale | — | — | (724 | ) | — | (532 | ) | ||||||||
| Adjusted net income | $ | 10,044 | $ | 9,263 | $ | 9,413 | $ | 9,449 | $ | 9,152 | |||||
| Calculation of pre-tax, pre-provision net revenue: | |||||||||||||||
| Net income (GAAP) | $ | 10,044 | $ | 7,172 | $ | 10,137 | $ | 9,449 | $ | 9,506 | |||||
| Adjustments to net income (GAAP): | |||||||||||||||
| Provision for income taxes | 2,622 | 3,841 | 2,503 | 2,333 | 2,461 | ||||||||||
| Provision for (reversal of) credit losses | 830 | 822 | 391 | 567 | (82 | ) | |||||||||
| Pre-tax, pre-provision net revenue (non-GAAP) | $ | 13,496 | $ | 11,835 | $ | 13,031 | $ | 12,349 | $ | 11,885 | |||||
| Adjustments to pre-tax, pre-provision net revenue (non-GAAP): | |||||||||||||||
| Branch consolidation expenses | $ | — | $ | — | $ | — | $ | — | $ | 250 | |||||
| Severance expense from workforce realignment | — | 745 | — | — | — | ||||||||||
| Gain on sale of property held for sale | — | — | (1,020 | ) | — | (749 | ) | ||||||||
| Pre-tax, pre-provision net revenue (non-GAAP) - adjusted | $ | 13,496 | $ | 12,580 | $ | 12,011 | $ | 12,349 | $ | 11,386 | |||||
| Adjusted earnings per share: | |||||||||||||||
| Weighted average common shares - basic | 63,122 | 62,958 | 62,908 | 62,858 | 62,741 | ||||||||||
| Weighted average common shares - diluted | 63,563 | 63,403 | 63,251 | 63,061 | 62,951 | ||||||||||
| Earnings per share - basic (GAAP) | $ | 0.16 | $ | 0.11 | $ | 0.16 | $ | 0.15 | $ | 0.15 | |||||
| Earnings per share - diluted (GAAP) | $ | 0.16 | $ | 0.11 | $ | 0.16 | $ | 0.15 | $ | 0.15 | |||||
| Adjusted earnings per share - basic (non-GAAP) | $ | 0.16 | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.15 | |||||
| Adjusted earnings per share - diluted (non-GAAP) | $ | 0.16 | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.15 | |||||
| Pre-tax, pre-provision net revenue per share: | |||||||||||||||
| Pre-tax, pre-provision net revenue per share - basic (non-GAAP) | $ | 0.21 | $ | 0.19 | $ | 0.21 | $ | 0.20 | $ | 0.19 | |||||
| Pre-tax, pre-provision net revenue per share - diluted (non-GAAP) | $ | 0.21 | $ | 0.19 | $ | 0.21 | $ | 0.20 | $ | 0.19 | |||||
| Pre-tax, pre-provision net revenue per share - basic (non-GAAP) - adjusted | $ | 0.21 | $ | 0.20 | $ | 0.19 | $ | 0.20 | $ | 0.18 | |||||
| Pre-tax, pre-provision net revenue per share - diluted (non-GAAP) - adjusted | $ | 0.21 | $ | 0.20 | $ | 0.19 | $ | 0.20 | $ | 0.18 | |||||
| Adjusted return on average assets: | |||||||||||||||
| Total average assets | $ | 7,656,632 | $ | 7,610,551 | $ | 7,547,943 | $ | 7,549,411 | $ | 7,619,319 | |||||
| Return on average assets (GAAP) | 0.52 | % | 0.38 | % | 0.54 | % | 0.50 | % | 0.50 | % | |||||
| Adjusted return on average assets (non-GAAP) | 0.52 | % | 0.49 | % | 0.50 | % | 0.50 | % | 0.48 | % | |||||
| Adjusted return on average equity: | |||||||||||||||
| Total average equity | $ | 763,425 | $ | 762,979 | $ | 759,273 | $ | 754,918 | $ | 745,143 | |||||
| Return on average equity (GAAP) | 5.26 | % | 3.76 | % | 5.34 | % | 5.01 | % | 5.10 | % | |||||
| Adjusted return on average equity (non-GAAP) | 5.26 | % | 4.86 | % | 4.96 | % | 5.01 | % | 4.91 | % | |||||
| Kearny Financial Corp. Reconciliation of GAAP to Non-GAAP (Unaudited) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| (Dollars and Shares in Thousands, Except Per Share Data) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||
| Adjusted return on average tangible equity: | |||||||||||||||
| Total average equity | $ | 763,425 | $ | 762,979 | $ | 759,273 | $ | 754,918 | $ | 745,143 | |||||
| Less: average goodwill | (113,525 | ) | (113,525 | ) | (113,525 | ) | (113,525 | ) | (113,525 | ) | |||||
| Less: average other intangible assets | (930 | ) | (1,042 | ) | (1,157 | ) | (1,276 | ) | (1,395 | ) | |||||
| Total average tangible equity | $ | 648,970 | $ | 648,412 | $ | 644,591 | $ | 640,117 | $ | 630,223 | |||||
| Return on average tangible equity (non-GAAP) | 6.24 | % | 4.48 | % | 6.34 | % | 5.96 | % | 6.09 | % | |||||
| Adjusted return on average tangible equity (non-GAAP) | 6.24 | % | 5.77 | % | 5.90 | % | 5.96 | % | 5.87 | % | |||||
| Adjusted non-interest expense ratio: | |||||||||||||||
| Non-interest expense (GAAP) | $ | 31,787 | $ | 33,852 | $ | 32,299 | $ | 31,191 | $ | 31,666 | |||||
| Non-recurring transactions: | |||||||||||||||
| Branch consolidation expenses | — | — | — | — | (250 | ) | |||||||||
| Severance expense from workforce realignment | — | (745 | ) | — | — | — | |||||||||
| Non-interest expense (non-GAAP) | $ | 31,787 | $ | 33,107 | $ | 32,299 | $ | 31,191 | $ | 31,416 | |||||
| Non-interest expense ratio (GAAP) | 1.66 | % | 1.78 | % | 1.71 | % | 1.65 | % | 1.66 | % | |||||
| Adjusted non-interest expense ratio (non-GAAP) | 1.66 | % | 1.74 | % | 1.71 | % | 1.65 | % | 1.65 | % | |||||
| Adjusted efficiency ratio: | |||||||||||||||
| Non-interest expense (non-GAAP) | $ | 31,787 | $ | 33,107 | $ | 32,299 | $ | 31,191 | $ | 31,416 | |||||
| Net interest income (GAAP) | $ | 40,080 | $ | 40,374 | $ | 39,236 | $ | 37,969 | $ | 37,704 | |||||
| Total non-interest income (GAAP) | 5,203 | 5,313 | 6,094 | 5,571 | 5,847 | ||||||||||
| Non-recurring transactions: | |||||||||||||||
| Gain on sale of property held for sale | — | — | (1,020 | ) | — | (749 | ) | ||||||||
| Total revenue (non-GAAP) | $ | 45,283 | $ | 45,687 | $ | 44,310 | $ | 43,540 | $ | 42,802 | |||||
| Efficiency ratio (GAAP) | 70.20 | % | 74.09 | % | 71.25 | % | 71.64 | % | 72.71 | % | |||||
| Adjusted efficiency ratio (non-GAAP) | 70.20 | % | 72.46 | % | 72.89 | % | 71.64 | % | 73.40 | % | |||||
For further information contact:
Sean Byrnes, Executive Vice President and Chief Financial Officer
Kearny Financial Corp.
(973) 244-4500
