Kearny Financial Corp. Announces First Quarter Fiscal 2027 Results and Declaration of Cash Dividend

Lower operating expenses and income taxes accompanied higher quarterly earnings, while non-performing assets increased.

Rhea-AI Summary

Kearny Financial (KRNY) reported fiscal first-quarter net income of $10.0 million, up from the preceding quarter as operating expenses declined. Diluted earnings per share were $0.16, compared with $0.11 for the quarter ended June 30, 2026. Non-interest expense fell 6.1% to $31.8 million, while net interest income decreased $294,000 to $40.1 million. Net interest margin, the return on interest-earning assets after funding costs, narrowed three basis points to 2.23%.

At September 30, 2026, loans totaled $5.98 billion, up 1.8% from June 30, and deposits rose 2.2% to $5.83 billion. Non-performing assets increased to $56.6 million from $53.4 million. Book value per share fell 1.7% to $11.64, primarily reflecting securities valuation changes. Regulatory capital remained above applicable requirements. The board declared a $0.11 quarterly dividend, payable November 18, 2026, to shareholders of record November 4.

11 points · 0 major

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0 major · 15 points

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Positive

• Moderate pointNet income rose 40.0% quarter over quarter to $10.0 million; diluted EPS increased to $0.16 from $0.11.
• Moderate pointPre-tax, pre-provision net revenue (non-GAAP) increased 14.0% quarter over quarter to $13.5 million.
• Moderate pointLoans grew 1.8% from June 30 to $5.98 billion, while multifamily mortgage exposure declined.
• Moderate pointDeposits increased 2.2% from June 30 to $5.83 billion, primarily through interest-bearing demand deposits.
• Moderate pointTotal interest income increased 2.7% quarter over quarter to $84.230 million as loan yields rose 10 basis points.
• Moderate pointNon-interest expense fell 6.1% quarter over quarter to $31.8 million, including lower compensation and advertising costs.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Further margin expansion is expected by the company as loan repricing and balance-sheet remixing continue.

4 minor points

• Minor pointBorrowings declined $15.0 million from June 30 to $1.14 billion.
• Minor pointAvailable secured borrowing capacity totaled $2.21 billion at September 30, representing 28.5% of assets.
• Minor pointIncome tax expense fell to $2.6 million from $3.8 million; the effective rate declined to 20.7% from 34.9%.
• Minor pointRegulatory capital ratios for both Kearny Financial and Kearny Bank exceeded all applicable requirements at September 30.

Negative

• Moderate pointNet interest income declined $294,000 quarter over quarter to $40.1 million.
• Moderate pointNet interest margin narrowed three basis points quarter over quarter to 2.23%, including wholesale funding repricing effects.
• Minor pointDeposit interest expense rose 4.5% quarter over quarter to $31.923 million.
• Minor pointBorrowing interest expense rose 10.4% quarter over quarter to $12.227 million.
• Minor pointNon-interest income declined 2.1% quarter over quarter to $5.2 million, including a $122,000 property write-down.

10 minor points

• Minor pointNon-performing assets increased to $56.6 million, or 0.73% of assets, from $53.4 million, or 0.70%, at June 30.
• Minor pointNet charge-offs increased to $277,000 from $49,000 in the preceding quarter.
• Minor pointCredit loss provision rose to $830,000 from $822,000 quarter over quarter, primarily driven by loan growth.
• Minor pointBook value per share fell 1.7% from June 30 to $11.64.
• Minor pointTangible book value per share (non-GAAP) fell 1.9% from June 30 to $9.88.
• Minor pointStockholders’ equity declined 1.4% from June 30 to $755.905 million.
• Minor pointTangible equity to tangible assets (non-GAAP) declined to 8.37% from 8.62% at June 30.
• Minor pointAvailable-for-sale securities carried $90.6 million in after-tax unrealized losses, partly offset by $13.1 million in derivative gains.
• Minor pointHeld-to-maturity securities carried $11.6 million in after-tax unrecognized losses outside stockholders’ equity.
• Minor pointOutstanding shares increased 0.3% from June 30 to 64.929 million, expanding the shareholder base.

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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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Kearny Financial’s fiscal first-quarter 2027 earnings?

Kearny Financial earned $10.0 million, or $0.16 per diluted share, for the quarter ended September 30, 2026. That compares with $7.2 million, or $0.11 per diluted share, for the quarter ended June 30, 2026.

When will KRNY pay its quarterly dividend, and how much is it?

Kearny Financial will pay a quarterly cash dividend of $0.11 per share on November 18, 2026, to shareholders of record as of November 4, 2026.

Why did Kearny Financial’s compensation expense decline in fiscal first-quarter 2027?

Salary and benefits expense declined partly because the preceding quarter included a $745,000 non-recurring severance charge, while the current quarter included a $193,000 non-recurring reduction in stock-based compensation. Excluding these items, salary and benefits expense remained relatively unchanged at $19.6 million in both quarters.

How did prepayment income affect Kearny Financial’s quarterly net interest income?

Loan prepayment penalty income fell to $336,000 from $622,000, while purchase accounting accretion declined to $396,000 from $537,000. Excluding both items, net interest income increased $132,000 from the preceding quarter.

Why did Kearny Financial’s effective tax rate fall in fiscal first-quarter 2027?

The preceding quarter included a $1.6 million valuation allowance against a deferred tax asset related to certain legacy stock-based compensation awards. The effective tax rate was 20.7% for the quarter ended September 30, 2026, compared with 34.9% for the quarter ended June 30, 2026.