SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                       ----------------------------------

                                    FORM 10-Q
(Mark One)

---------
   X         QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
---------    EXCHANGE ACT OF 1934


    For the quarterly period ended               December 31, 2005
                                         ---------------------------------------

                                       OR

---------
             TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
---------    EXCHANGE ACT OF 1934


    For the transition period from                 to
                                   ---------------    ---------------


                        Commission File Number 000-51093
                                               ---------


                             KEARNY FINANCIAL CORP.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


              UNITED STATES                                   22-3803741
--------------------------------------------------------------------------------
     (State or other jurisdiction of                        (I.R.S. Employer
      incorporation or organization)                     Identification Number)

    120 Passaic Ave., Fairfield, New Jersey                    07004-3510
--------------------------------------------------------------------------------
   (Address of principal executive offices)                   (Zip Code)

Registrant's telephone number,
including area code                             973-244-4500
                                       -----------------------------------------


      Indicate by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes X No

      Indicate  by check mark  whether  the  registrant  is a large  accelerated
filer,  an accelerated  filer,  or a  non-accelerated  filer.  See definition of
"accelerated  filer" and "large accelerated filer" in Rule 12b-2 of the Exchange
Act (Check one):

      Large accelerated filer     Accelerated filer      Non-accelerated filer X

      Indicate  by check mark  whether the  registrant  is a shell  company  (as
defined in Rule 12b-2 of the  Exchange  Act).
Yes     No  X

      The number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date: February 13, 2006.

          $0.10 par value common stock - 72,559,836 shares outstanding

<PAGE>

                     KEARNY FINANCIAL CORP. AND SUBSIDIARIES

                                      INDEX

<TABLE>
<CAPTION>
                                                                                             Page
                                                                                            Number
                                                                                            ------
<S>                                                                                       <C>
PART I - FINANCIAL INFORMATION

      Item 1:  Financial Statements

               Consolidated Statements of Financial Condition
               at December 31, 2005 and June 30, 2005 (Unaudited)                               1

               Consolidated Statements of Income for the Three Months and Six
               Months Ended December 31, 2005 and 2004 (Unaudited)                            2-3

               Consolidated Statements of Comprehensive Income for the Three
               Months and Six Months Ended December 31, 2005 and 2004 (Unaudited)               4

               Consolidated Statements of Cash Flows for the Six Months
               Ended December 31, 2005 and 2004 (Unaudited)                                   5-6

               Notes to Consolidated Financial Statements                                     7-8

      Item 2:  Management's Discussion and Analysis of
               Financial Condition and Results of Operations                                 9-20

      Item 3:  Quantitative and Qualitative Disclosure About Market Risk                    21-22

      Item 4:  Controls and Procedures                                                         23


PART II - OTHER INFORMATION                                                                 24-25


SIGNATURES                                                                                     26

</TABLE>
<PAGE>

                     KEARNY FINANCIAL CORP. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                 ----------------------------------------------
           (In Thousands, Except Share and Per Share Data, Unaudited)

<TABLE>
<CAPTION>
                                                                          December 31,      June 30,
                                                                              2005           2005
                                                                          -----------    -----------
<S>                                                                     <C>            <C>
Assets
------

Cash and amounts due from depository institutions                         $    19,294    $    16,683
Interest-bearing deposits in other banks                                       53,600        123,182
                                                                          -----------    -----------

        Cash and cash equivalents                                              72,894        139,865

Securities available for sale                                                  26,740         33,591
Investment securities held to maturity                                        461,781        470,098
Loans receivable, including net deferred loan costs of $948 and $815          633,675        563,434
  Less: Allowance for loan losses                                              (5,554)        (5,416)
                                                                          -----------    -----------
  Net loans receivable                                                        628,121        558,018
                                                                          -----------    -----------
Mortgage-backed securities held to maturity                                   717,953        758,121
Premises and equipment                                                         36,121         34,977
Federal Home Loan Bank of New York stock ("FHLB")                               5,180         11,361
Interest receivable                                                            10,719         10,430
Goodwill                                                                       82,263         82,263
Bank Owned Life Insurance ("BOLI")                                             14,373          3,981
Other assets                                                                    6,628          4,300
                                                                          -----------    -----------

        Total assets                                                      $ 2,062,773    $ 2,107,005
                                                                          ===========    ===========

Liabilities and stockholders' equity
------------------------------------

Liabilities
-----------

Deposits:
  Non-interest bearing                                                    $    58,603    $    56,142
  Interest bearing                                                          1,424,891      1,472,635
                                                                          -----------    -----------

        Total deposits                                                      1,483,494      1,528,777

Advances from FHLB                                                             61,400         61,687
Advance payments by borrowers for taxes                                         4,621          4,627
Other liabilities                                                               6,844          6,432
                                                                          -----------    -----------

        Total liabilities                                                   1,556,359      1,601,523
                                                                          -----------    -----------
Stockholders' equity
--------------------

Preferred stock $0.10 par value, 25,000,000 shares authorized; none
  issued and outstanding                                                         --             --
Common stock $0.10 par value, 75,000,000 shares authorized;
  72,559,836 and 72,737,500 issued and outstanding                              7,274          7,274
Paid in capital                                                               208,206        207,838
Retained earnings - substantially restricted                                  304,101        301,857
Unearned Employee Stock Ownership Plan ("ESOP") shares                        (16,245)       (16,972)
Treasury stock, at cost; 177,664 and 0                                         (2,268)          --
Accumulated other comprehensive income                                          5,346          5,485
                                                                          -----------    -----------

        Total stockholders' equity                                            506,414        505,482
                                                                          -----------    -----------

        Total liabilities and stockholders' equity                        $ 2,062,773    $ 2,107,005
                                                                          ===========    ===========
</TABLE>

See notes to consolidated financial statements.
                                       -1-
<PAGE>

                     KEARNY FINANCIAL CORP. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                        ---------------------------------
           (In Thousands, Except Share and Per Share Data, Unaudited)

<TABLE>
<CAPTION>
                                        Three Months Ended    Six Months Ended
                                           December 31,          December 31,
                                        -------------------    -------------------
                                           2005       2004      2005      2004
                                        --------   --------    --------   --------
<S>                                    <C>        <C>         <C>        <C>
Interest income:
    Loans                               $  8,544   $  7,321    $ 16,665   $ 14,453
    Mortgage-backed securities             8,418      8,298      16,986     16,947
    Investment and available for sale
      securities                           4,328      4,083       8,691      8,094
    Other interest earning assets            705        130       1,624        245
                                        --------   --------    --------   --------

        Total interest income             21,995     19,832      43,966     39,739
                                        --------   --------    --------   --------
Interest expense:
    Deposits                               8,650      6,186      16,937     12,298
    Borrowings                               857        988       1,728      1,979
                                        --------   --------    --------   --------

        Total interest expense             9,507      7,174      18,665     14,277
                                        --------   --------    --------   --------

Net interest income                       12,488     12,658      25,301     25,462
Provision for loan losses                     64        (34)        139        117
                                        --------   --------    --------   --------
Net interest income after provision
  for loan losses                         12,424     12,692      25,162     25,345
                                        --------   --------    --------   --------
Non-interest income:
    Fees and service charges                 289        171         566        348
    Gain on the sale of available for
      sale securities                          -          -          86         71
    Miscellaneous                            328        239         558        485
                                        --------   --------    --------   --------

        Total non-interest income            617        410       1,210        904
                                        --------   --------    --------   --------
Non-interest expense:
    Salaries and employee benefits         5,760      5,342      11,363      9,994
    Net occupancy expense of premises        789        723       1,685      1,370
    Equipment                              1,080        944       2,132      1,818
    Advertising                              385        295         710        576
    Federal insurance premium                136        139         270        279
    Amortization of intangible assets        159        159         318        318
    Directors' compensation                  582        230         812        447
    Miscellaneous                          1,247        935       2,226      1,754
                                        --------   --------    --------   --------

        Total non-interest expense        10,138      8,767      19,516     16,556
                                        --------   --------    --------   --------

Income before income taxes                 2,903      4,335       6,856      9,693
Income taxes                                 577      1,143       1,566      2,705
                                        --------   --------    --------   --------

Net income                              $  2,326   $  3,192    $  5,290   $  6,988
                                        ========   ========    ========   ========
</TABLE>

See notes to consolidated financial statements.
                                       -2-

<PAGE>

                     KEARNY FINANCIAL CORP. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF INCOME (Cont'd)
                   ------------------------------------------
           (In Thousands, Except Share and Per Share Data, Unaudited)

                                Three Months Ended          Six Months Ended
                                   December 31,                December 31,
                              ----------------------      ---------------------
                                  2005        2004           2005        2004
                              -----------   --------      ----------   --------

Net income per common share:
    Basic                     $      0.03   $  319.20     $      0.07  $  698.80
    Diluted                          0.03      319.20            0.07     698.80

Weighted average number of
  common shares outstanding:
    Basic                      71,046,123      10,000      71,049,401     10,000
    Diluted                    71,096,851      10,000      71,074,765     10,000


See notes to consolidated financial statements.
                                       -3-

<PAGE>

                     KEARNY FINANCIAL CORP. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                 -----------------------------------------------
                            (In Thousands, Unaudited)

                                        Three Months Ended    Six Months Ended
                                           December 31,         December 31,
                                        ------------------   ------------------
                                         2005       2004      2005       2004
                                        -------    -------   -------    -------

Net income                              $ 2,326    $ 3,192   $ 5,290    $ 6,988
                                        -------    -------   -------    -------

Other comprehensive income (loss),
  net of income taxes:
    Gross realized holdings (gain) on
      securities available for sale           -          -       (86)       (71)
    Income tax expense                        -          -        30         25
    Gross unrealized holdings gain
      (loss) on securities available
      for sale                            1,134      1,911      (127)     2,752
    Deferred income tax benefit
      (expense)                            (397)      (669)       44       (963)
                                        -------    -------   -------    -------

Other comprehensive income (loss)           737      1,242      (139)     1,743
                                        -------    -------   -------    -------

Comprehensive income                    $ 3,063    $ 4,434   $ 5,151    $ 8,731
                                        =======    =======   =======    =======

See notes to consolidated financial statements.
                                       -4-

<PAGE>

                     KEARNY FINANCIAL CORP. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                      -------------------------------------
                            (In Thousands, Unaudited)

<TABLE>
<CAPTION>
                                                                              Six Months Ended
                                                                                 December 31,
                                                                            ----------------------
                                                                               2005         2004
                                                                            ---------    ---------
<S>                                                                        <C>          <C>
Cash flows from operating activities:
    Net income                                                              $   5,290    $   6,988
    Adjustments to reconcile net income to net cash provided by operating
      activities:
        Depreciation and amortization of premises and equipment                   924          639
        Net amortization of premiums, discounts and loan fees and costs           406          501
        Deferred income taxes                                                     748         (582)
        Amortization of intangible assets                                         318          318
        Provision for loan losses                                                 139          117
        Realized gain on sale of securities available for sale                    (86)         (71)
        Decrease (increase) in interest receivable                               (289)         141
        Decrease (increase) in other assets                                    (2,911)      (1,325)
        Realized loss on sale of real estate owned                                 35            -
        Increase (decrease) in interest payable                                    30          (25)
        Increase (decrease) in other liabilities                               (1,177)         (96)
        Increase in cash surrender value of bank owned life insurance            (184)         (74)
        ESOP and stock option plan expenses                                     1,092            -
                                                                            ---------    ---------

            Net cash provided by operating activities                           4,335        6,531
                                                                            ---------    ---------
Cash flows from investing activities:
    Purchases of securities available for sale                                   (139)         (91)
    Proceeds from sale of securities available for sale                         6,864        1,115
    Purchases of investment securities held to maturity                        (4,000)     (22,148)
    Proceeds from calls and maturities of investment securities held to
      maturity                                                                  9,989       14,791
    Proceeds from repayments of investment securities held to maturity          2,337        2,545
    Purchase of loans                                                         (10,753)           -
    Net (increase) decrease in loans receivable                               (59,402)      (3,702)
    Proceeds from sale of real estate owned                                        65            -
    Purchases of mortgage-backed securities held to maturity                  (64,765)     (27,112)
    Principal repayments on mortgage-backed securities held to maturity       104,429       91,999
    Additions to premises and equipment                                        (2,068)      (7,197)
    Redemption (purchase) of FHLB Stock                                         6,181            -
    Purchase of bank owned life insurance                                     (10,208)           -
                                                                            ---------    ---------

            Net cash provided by (used in) investing activities               (21,470)      50,200
                                                                            ---------    ---------
Cash flows from financing activities:
    Net (decrease) increase in deposits                                       (45,314)     (44,840)
    Repayment of FHLB advances                                                   (287)        (270)
    Net change in short-term borrowings from FHLB                                   -      (12,000)
    Increase (decrease) in advance payments by borrowers for taxes                 (6)        (198)
    Refund of common stock offering expenses                                        3            -
    Purchase of treasury stock of Kearny Financial Corp.                       (2,268)           -
    Dividends paid to minority stockholders of Kearny Financial Corp.          (1,964)           -
                                                                            ---------    ---------

            Net cash (used in) provided by financing activities             $ (49,836)   $ (57,308)
                                                                            ---------    ---------
</TABLE>

See notes to consolidated financial statements.
                                       -5-

<PAGE>

                     KEARNY FINANCIAL CORP. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF CASH FLOWS (Cont'd)
                 ----------------------------------------------
                            (In Thousands, Unaudited)


                                                          Six Months Ended
                                                            December 31,
                                                       ----------------------
                                                         2005          2004
                                                       ---------    ---------

Net (decrease) increase in cash and cash equivalents   $ (66,971)   $    (577)
Cash and cash equivalents - beginning                    139,865       39,488
                                                       ---------    ---------

Cash and cash equivalents - ending                     $  72,894    $  38,911
                                                       =========    =========

Supplemental disclosures of cash flows information:
Cash paid during the year for:
        Income taxes, net of refunds                   $   4,302    $    (519)
                                                       =========    =========

        Interest                                       $  18,635    $  14,302
                                                       =========    =========

Supplemental disclosure of non-cash transactions:
    Cash dividend declared                             $   1,082    $       -
                                                       =========    =========

See notes to consolidated financial statements.
                                       -6-

<PAGE>

                     KEARNY FINANCIAL CORP. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------


1.  PRINCIPLES OF CONSOLIDATION
-------------------------------

The consolidated  financial  statements include the accounts of Kearny Financial
Corp. (the  "Company"),  its wholly owned  subsidiaries,  Kearny Federal Savings
Bank (the "Bank") and Kearny Financial  Securities,  Inc., and the Bank's wholly
owned subsidiaries,  KFS Financial Services,  Inc. and Kearny Federal Investment
Corp. The Company conducts its business principally through the Bank. Management
eliminated  all  significant  inter-company  accounts  and  transactions  during
consolidation.

2.  BASIS OF PRESENTATION
-------------------------

The accompanying  unaudited  consolidated  financial statements were prepared in
accordance with instructions for Form 10-Q and Regulation S-X and do not include
information  or footnotes  necessary  for a complete  presentation  of financial
condition,  results of operations  and cash flows in conformity  with  generally
accepted  accounting  principles.  However,  in the opinion of  management,  all
adjustments (consisting of normal adjustments) necessary for a fair presentation
of the  consolidated  financial  statements  have been included.  The results of
operations  for the three and six month periods ended December 31, 2005, are not
necessarily indicative of the results that may be expected for the entire fiscal
year or any other period.

In March 2004,  the EITF reached a consensus on Issue No. 03-1,  "The Meaning of
Other-Than-Temporary  Impairment and Its  Application  to Certain  Investments."
EITF 03-1  provides  guidance  on  other-than-temporary  impairment  models  for
marketable  debt  and  equity  securities  accounted  for  under  SFAS  115  and
non-marketable  equity securities  accounted for under the cost method. The EITF
developed  a basic  three-step  model  to  evaluate  whether  an  investment  is
other-than-temporarily  impaired.  In  November  2005,  the  FASB  approved  the
issuance of FASB Staff  Position  FAS No.  115-1 and FAS 124-1,  "The Meaning of
Other-Than-Temporary Impairment and Its Application to Certain Investments." The
FSP addresses when an investment is considered impaired,  whether the impairment
is other-than-temporary  and the measurement of an impairment loss. The FSP also
includes  accounting   considerations   subsequent  to  the  recognition  of  an
other-than-temporary   impairment  and  requires   certain   disclosures   about
unrealized losses that have not been recognized as other-than-temporary. The FSP
is  effective  for  reporting  periods  beginning  after  December 15, 2005 with
earlier  application  permitted.  For the Company,  the  effective  date will be
January 1, 2006.  The adoption of this  accounting  principle is not expected to
have a significant impact on our financial position or results of operations.

3.  EARNINGS PER SHARE
----------------------

Basic  earnings  per  share  or  EPS  equals  net  income  available  to  common
stockholders   divided  by  the   weighted-average   number  of  common   shares
outstanding.  If potentially  dilutive contracts exist such as stock options, or
their  equivalent,  diluted EPS is also included,  calculated using the treasury
stock method. Using this approach,  assume there was an exercise of an option at
the beginning of the period,  or date of grant,  if later.  Furthermore,  assume
that the proceeds  received from the exercise of the option provide funds to buy
treasury stock at the average market price for the period.  Finally, assume that
the  exercise  will only occur if the  average  market  price of the  underlying
shares during the period is greater than the exercise  price of the option.  The
weighted average number of common shares  outstanding is increased by the number
of shares assumed issued owing to the exercise of options,  or their equivalent,
reduced by the assumed treasury shares purchased.

                                       -7-
<PAGE>

Though the effective date of the Company's  initial public offering was February
23, 2005, the  presentation  of basic and diluted EPS assumes the effective date
of the  transaction  was July 1, 2004. The  calculation of basic and diluted EPS
includes the 30% of the outstanding shares sold to the public as well as the 70%
of the outstanding  shares held by Kearny MHC. The  calculation  excludes Kearny
Federal  Savings Bank  Employee  Stock  Ownership  Plan (the "ESOP")  shares not
allocated  to  participants  or not  committed  for  release for  allocation  to
participants.

4.  DIVIDEND WAIVER
-------------------

During the quarter  ended  December 31, 2005,  the  federally  chartered  mutual
holding  company  of  the  Company  ("Kearny  MHC"),   waived  its  right,  upon
non-objection  from the Office of Thrift  Supervision  ("OTS"),  to receive cash
dividends of $2,546,000 paid during the quarter and cash dividends of $2,546,000
declared  during the  quarter,  on the shares of Company  common  stock it owns.
Furthermore, OTS advised Kearny MHC that it would not object to dividend waivers
for the quarters  ending March 31, 2006,  June 30, 2006 and  September 30, 2006,
provided  OTS does not  subsequently  determine  that the  proposed  waivers are
detrimental to the safe and sound operation of the Bank.

5.  STOCK-BASED COMPENSATION
----------------------------

At the annual  meeting  held on October 24,  2005,  stockholders  of the Company
approved the Kearny Financial Corp. 2005 Stock  Compensation and Incentive Plan.
The plan  authorizes  the award of up to 3,564,137  shares as stock  options and
1,425,655 shares as restricted stock awards.  On October 24, 2005,  non-employee
directors  received  in  aggregate  1,069,240  options  and  427,696  shares  of
restricted stock. On December 5, 2005,  certain officers of the Company and Bank
received in aggregate 2,305,000 options and 910,000 shares of restricted stock.

The Company adopted SFAS 123R October 1, 2005 and will record stock compensation
expense of  approximately  $26.5 million  between the quarter ended December 31,
2005 through the quarter ending  December 31, 2010 for stock awards  outstanding
as of  December  31,  2005.  Any  additional  impact  that the  adoption of this
statement will have on our financial  position and results of operations will be
determined by share-based payments granted in future periods and the assumptions
on which the value of those share-based payments is based.

6.  STOCK REPURCHASE PLAN
-------------------------

On November 9, 2005, the Company announced that it received  regulatory approval
to begin the  purchase  of up to  1,425,655  shares or  approximately  2% of the
outstanding  shares of its common stock in open market  transactions  for use in
funding the Company's  2005 Stock  Compensation  and Incentive  Plan  previously
approved by stockholders. In December 2005, the Company purchased 177,664 shares
at a total cost of $2,268,000,  or approximately $12.76 per share.  Temporarily,
the repurchased shares appear as treasury stock in the Consolidated Statement of
Financial  Condition  as of December  31, 2005,  pending  completion  of a trust
arrangement to administer  restricted  stock awards granted under the 2005 Stock
Compensation and Incentive Plan.

                                       -8-

<PAGE>

                                     ITEM 2.
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                  ---------------------------------------------


Forward-Looking Statements

This Form 10-Q may include certain  forward-looking  statements based on current
management  expectations.  The actual  results of Kearny  Financial  Corp.  (the
"Company") could differ materially from those management  expectations.  Factors
that could cause  future  results to vary from current  management  expectations
include,  but are not limited to, general economic  conditions,  legislative and
regulatory  changes,  monetary  and fiscal  policies of the federal  government,
changes in tax policies,  rates and regulations of federal,  state and local tax
authorities.  Additional  potential  factors  include changes in interest rates,
deposit flows, the cost of funds, demand for loan products, demand for financial
services,  competition,  changes  in the  quality  or  composition  of loan  and
investment portfolios of Kearny Federal Savings Bank, the Company's wholly-owned
subsidiary,  (the "Bank"). Other factors that could cause future results to vary
from current management  expectations include changes in accounting  principles,
policies  or  guidelines,  and other  economic,  competitive,  governmental  and
technological  factors affecting the Company's  operations,  markets,  products,
services and prices.  Further  description of the risks and uncertainties to the
business are included in the  Company's  other filings with the  Securities  and
Exchange Commission.

Comparison of Financial Condition at December 31, 2005 and June 30, 2005

Total assets  decreased by $44.2 million,  or 2.1%, to $2.06 billion at December
31, 2005,  from $2.11  billion at June 30, 2005,  due  primarily to decreases in
cash  and  cash  equivalents,   investment   securities  held  to  maturity  and
mortgage-backed  securities held to maturity  partially offset by an increase in
loans receivable,  net, and bank owned life insurance.  Generally, cash and cash
equivalents   and  cash  flows  from  the  securities   portfolio   funded  loan
originations and deposit outflows during the six months ended December 31, 2005.

Cash and cash equivalents decreased $67.0 million, or 47.9%, to $72.9 million at
December 31, 2005,  from $139.9 million at June 30, 2005. The Company  continued
to deploy the proceeds from its initial  public  offering  completed in February
2005,  primarily  reinvesting  cash and cash  equivalents in the loan portfolio,
purchasing  additional bank owned life insurance and funding  deposit  outflows.
During the six months ended  December 31, 2005,  the Company paid cash dividends
for the first time to minority stockholders. The two quarterly dividends totaled
$2.0 million.

The carrying value of securities  available for sale decreased $6.9 million,  or
20.5%,  to $26.7  million at December 31, 2005,  from $33.6  million at June 30,
2005. The decrease was due exclusively to the sale of a $6.9 million  government
income fund acquired  during an earlier  merger.  Mark-to-market  adjustments to
other  investments  in the  available for sale  portfolio  during the six months
ended December 31, 2005 resulted in no change to their carrying value,  compared
to the value of the portfolio as of June 30, 2005.

Investment  securities  held to maturity  decreased  $8.3  million,  or 1.8%, to
$461.8  million at December 31, 2005,  from $470.1 million at June 30, 2005. The
decrease  came  primarily  in the  government  agency notes and  municipal  bond
categories,  with the proceeds from maturing notes funding loan originations and
deposit outflows during the six months ended December 31, 2005.

Loans  receivable,  net of  deferred  fees and the  allowance  for loan  losses,
increased $70.1 million,  or 12.6%, to $628.1 million at December 31, 2005, from
$558.0  million at June 30,  2005.  The ratio of loans to  deposits  improved to
42.3% at December 31, 2005,  from 36.5% at June 30, 2005.  The increase  came in
one-to-four family mortgage loans,  particularly first mortgages and home equity
loans. There was also

                                       -9-
<PAGE>

substantial  growth in  construction  loans,  including  all  three  categories:
one-to-four family,  multi-family and non-residential.  There was nominal growth
in home equity lines of credit,  non-residential mortgage loans and multi-family
mortgage  loans.  Commercial  business loans remained  unchanged  during the six
months ended December 31, 2005.

Mortgage-backed securities held to maturity decreased $40.1 million, or 5.3%, to
$718.0 million at December 31, 2005,  from $758.1 million at June 30, 2005. Cash
flows from monthly  principal and interest payments funded loan originations and
deposit  outflows  during the six months ended  December  31,  2005.  Though the
mortgage-backed  securities  portfolio  decreased overall,  there were purchases
totaling  $64.8  million  during the six months ended  December  31,  2005.  The
purchases were for the most part adjustable rate, thus sacrificing higher yields
on fixed rate securities in the short-term, for interest rate risk protection in
the future.

Bank owned life insurance  ("BOLI")  increased $10.4 million to $14.4 million at
December 31, 2005,  from $4.0  million at June 30,  2005.  Of the $10.4  million
increase,  $10.2 million resulted from the purchase of additional policies.  The
cash surrender value of the insurance  increased  $184,000 during the six months
ended December 31, 2005.

Deposits  decreased  $45.3  million,  or 3.0%,  to $1.48 billion at December 31,
2005, from $1.53 billion at June 30, 2005.  During the six months ended December
31, 2005, the Bank attempted to resist pressure to increase the rates it pays on
deposits.  Management's goal is to slow the increase in the cost of funds caused
by a rise in market interest  rates.  The result of this strategy is the loss of
deposits.  The decrease was  primarily in  certificates  of deposit.  During the
quarter ended June 30, 2005,  the Bank reacted to  competitive  pressures in the
market place by offering a premium short-term interest rate, which attracted new
money in the form of certificates of deposit.  However,  the Bank retreated from
that strategy  during the two most recent quarters due to the negative effect on
its cost of funds.

Federal Home Loan Bank advances decreased $287,000, to $61.4 million at December
31, 2005,  from $61.7  million at June 30,  2005.  The  decrease  resulted  from
scheduled monthly principal payments on amortizing advances.

Stockholders' equity increased $932,000, to $506.4 million at December 31, 2005,
from $505.5  million at June 30,  2005.  The increase  resulted  from net income
recorded  during the six months ended December 31, 2005, the release of unearned
ESOP shares and  transactions  resulting  from the stock option plan approved at
the Company's  annual meeting held in October 2005. There was a nominal decrease
in accumulated other  comprehensive  income,  due to a reduction in the carrying
value,  net of taxes,  of the  Company's  available for sale  portfolio.  A cash
dividend of $0.05 per share paid during the quarter ended September 30, 2005 and
a cash dividend of $0.05 per share  declared  during the quarter ended  December
31,  2005,  plus 177,664  shares of treasury  stock  purchased in December  2005
partially offset the increase in stockholders' equity.

Comparison of Operating Results for the Three Months Ended December 31, 2005 and
2004

General.  Net income for the quarter ended December 31, 2005 was $2.3 million, a
decrease of $866,000, or 27.1%, from $3.2 million for the quarter ended December
31, 2004. The decrease in net income  resulted from an increase in  non-interest
expense,  particularly salaries and employee benefits,  directors'  compensation
and  miscellaneous  expenses.  A nominal  decrease  in net  interest  income and
increase in the  provision for loan losses also  contributed  to the decrease in
net income.

Net Interest Income. Net interest income for the three months ended December 31,
2005 was $12.5  million,  a decrease  of  $170,000,  or 1.3%,  compared to $12.7
million for the three months ended  December 31, 2004.  Despite a large decrease
in the net  interest  rate  spread and a smaller  decrease  in the net  interest
margin, a substantial increase in the ratio of average  interest-earning  assets
to average interest-bearing  liabilities helped interest income stay somewhat on
pace with increasing interest expense, year-over-year.

                                      -10-

<PAGE>

The net interest rate spread  decreased 60 basis points to 2.06% for the quarter
ended  December 31, 2005,  from 2.66% for the quarter  ended  December 31, 2004.
During  the  quarter  ended  December  31,  2005,  interest-bearing  liabilities
continued to re-price faster than  interest-earning  assets. The cost of average
interest-bearing liabilities increased 67 basis points, from 1.87% for the three
months ended December 31, 2004, to 2.54% for the three months ended December 31,
2005. With respect to the two components of  interest-bearing  liabilities,  the
cost of borrowings  increased faster than the cost of deposits,  year-over-year.
During the same period, the yield on average  interest-earning  assets increased
seven basis points, to 4.60% for the quarter ended December 31, 2005, from 4.53%
for the quarter ended  December 31, 2004. The net interest  margin  decreased 28
basis  points to 2.61% for the three months  ended  December 31, 2005,  compared
with 2.89% for the three months ended December 31, 2004.

The  ratio  of  average  interest-earning  assets  to  average  interest-bearing
liabilities  increased  from 114.36% for the quarter ended December 31, 2004, to
127.69% for the quarter  ended  December  31, 2005.  The primary  reason for the
increase in the ratio was the  infusion  of cash  resulting  from the  Company's
initial public offering  completed in February 2005. During the current quarter,
the Bank  continued to deploy the proceeds  from the  Company's  initial  public
offering, investing the cash primarily in loans receivable.

Interest  Income.  Total interest  income  increased $2.2 million,  or 11.1%, to
$22.0 million for the three months ended  December 31, 2005,  from $19.8 million
for the three months ended December 31, 2004.  Average  interest-earning  assets
increased  $160.0  million,  or 9.1%,  to $1.91  billion for the  quarter  ended
December 31, 2005,  from $1.75 billion for the quarter ended  December 31, 2004.
Management  attributes the increase in interest income to a significant increase
in average  interest-earning  assets,  rather  than an  increase in the yield on
average  interest-earning  assets,  which was a nominal seven basis points.  The
largest increases came in the loans receivable,  mortgage-backed securities held
to maturity and other interest-earning  assets,  year-over-year,  resulting from
the infusion of cash from the Company's initial public offering.

Interest income on loans  receivable  increased $1.2 million,  or 16.4%, to $8.5
million for the three months ended December 31, 2005,  from $7.3 million for the
three months ended  December 31, 2004. The average  balance of loans  receivable
increased  $99.2  million,  or 19.4%,  to $611.2  million for the quarter  ended
December 31, 2005,  from $512.0 million for the quarter ended December 31, 2004.
The increase in interest income from loans  receivable  would have been greater,
were  it not for a 13  basis  point  decrease  in the  yield  on  average  loans
receivable to 5.59% for the quarter ended December 31, 2005,  from 5.72% for the
quarter  ended  December 31, 2004. A major  marketing  effort,  which  continued
throughout  2005,  contributed  to the increase in the average  balance of loans
receivable.  However,  despite upward rate  adjustments  on adjustable  rate and
floating rate loans in the Bank's portfolio,  the weighted average interest rate
of recent  loan  originations  continued  to lag  behind  the  weighted  average
interest  rate of recent loans paid in full,  contributing  to a decrease in the
yield on average loans receivable.

Interest  income  on  mortgage-backed  securities  held  to  maturity  increased
$120,000,  virtually  unchanged  at $8.4  million  for the  three  months  ended
December 31, 2005,  compared to $8.3 million for the three months ended December
31, 2004. The average  balance of  mortgage-backed  securities  increased  $20.6
million,  or 2.9%, to $739.3  million for the quarter  ended  December 31, 2005,
from $718.7  million for the  quarter  ended  December  31,  2004.  The yield on
average mortgage-backed securities decreased to 4.55% for the three months ended
December 31, 2005,  from 4.62% for the three months ended December 31, 2004. The
increase in the average balance of mortgage-backed  securities,  year-over-year,
resulted  from  reinvestment  of monthly  principal  and  interest  payments and
deployment of cash and cash equivalents into new mortgage-backed securities. The
decrease in yield resulted from the reinvestment of monthly  principal  payments
from  higher  coupon  mortgage-backed  securities  into  new  securities,  which
occurred in a relatively lower interest rate environment. The purchases were for
the most part  adjustable  rate,  thus  sacrificing  higher yields on fixed rate
securities in the short-term, for interest rate risk protection in the future.

                                      -11-
<PAGE>

Interest income on investment securities available for sale and held to maturity
increased $245,000,  or 6.0%, to $4.3 million for the quarter ended December 31,
2005,  from $4.1 million for the quarter  ended  December 31, 2004.  The average
balance of investment  securities remained virtually unchanged at $488.5 million
for the quarter  ended  December  31, 2005,  compared to $488.2  million for the
prior year, due to the  reinvestment of cash from maturing  securities back into
the  portfolio,  primarily in the tax-exempt  category.  The yield improved from
3.35% for the three  months  ended  December  31,  2004,  to 3.54% for the three
months ended December 31, 2005. The higher yield resulted from the  reinvestment
of maturing  short-term  government  agency notes in tax-exempt  municipal bonds
featuring nominally higher coupons as well as higher tax equivalent yields.

Interest income on other  interest-earning  assets increased to $705,000 for the
quarter ended  December 31, 2005,  from $130,000 for the quarter ended  December
31, 2004.  This was a result of a $40.0 million  increase in the average balance
of other  interest-earning  assets to $71.9  million for the three  months ended
December 31, 2005,  from $31.9  million for the three months ended  December 31,
2004. The average balance of other interest-earning  assets increased due to the
increase  in   interest-earning   deposits,   the  primary  component  of  other
interest-earning  assets,  partially offset by a decrease in FHLB capital stock.
Interest-earning  deposits increased due to the proceeds from the initial public
offering completed in February 2005, while FHLB capital stock decreased due to a
repurchase by FHLB to meet regulatory requirements.  There was a 229 basis point
increase in the yield on average other interest-earning  assets to 3.92% for the
quarter ended  December 31, 2005,  from 1.63% for the quarter ended December 31,
2004, due to rising short-term interest rates.

Interest Expense.  Total interest expense  increased $2.3 million,  or 31.9%, to
$9.5 million for the three months ended December 31, 2005, from $7.2 million for
the three months ended December 31, 2004. The increase  resulted  primarily from
an  increase  in the cost of  average  interest-bearing  liabilities,  partially
offset by a decrease in the  average  balance of  interest-bearing  liabilities.
There was a 67 basis  point  increase  in the cost of  average  interest-bearing
liabilities to 2.54% for the three months ended  December 31, 2005,  from 1.87%,
for  the  three  months  ended  December  31,  2004.  The  average   balance  of
interest-bearing  liabilities decreased $34.5 million, or 2.3%, to $1.50 billion
for the quarter  ended  December  31, 2005,  from $1.53  billion for the quarter
ended December 31, 2004.

Interest expense on deposits  increased $2.5 million,  or 40.3%, to $8.7 million
for the three  months ended  December 31, 2005,  from $6.2 million for the three
months ended December 31, 2004. The increase resulted primarily from an increase
in the cost of  average  interest-bearing  deposits,  which  more than  offset a
decrease  in the  average  balance  of  interest-bearing  deposits.  The cost of
average  interest-bearing  deposits  increased  70 basis points to 2.41% for the
quarter ended  December 31, 2005,  from 1.71% for the quarter ended December 31,
2004. The average balance of interest-bearing  deposits decreased $13.0 million,
to $1.44  billion for the three  months  ended  December  31,  2005,  from $1.45
billion for the three months ended  December 31, 2004.  Management's  goal is to
slow the  increase  in the cost of funds  caused  by a rise in  market  interest
rates.  The result of this  strategy is a loss of  deposits.  The  decrease  was
primarily in  certificates  of deposit.  During the quarter ended June 30, 2005,
the Bank  reacted to  competitive  pressures  in the market  place by offering a
premium  short-term  interest  rate,  which  attracted  new money in the form of
certificates of deposit.  However,  the Bank retreated from that strategy during
the two most recent quarters due to the negative effect on its cost of funds.

Interest  expense on Federal  Home Loan Bank  advances  decreased  $131,000,  or
13.3%,  to $857,000 for the quarter ended  December 31, 2005,  from $988,000 for
the quarter  ended  December  31,  2004.  The average  balance  decreased  $21.5
million,  or 25.9%,  to $61.5  million for the three months  ended  December 31,
2005, from $83.0 million for the three months ended December 31, 2004, which was
more than enough to offset an increase  in the cost of average  borrowings.  The
cost of  average  borrowings  increased  82 basis  points to 5.58%  from  4.76%,
year-over-year.  The decrease in the average balance resulted from the repayment
of short-term advances obtained to fund the purchase of securities, subsequently
paid off with proceeds from the initial  public  offering  completed in February
2005. The

                                      -12-
<PAGE>

cost of average borrowings increased due to the repayment of the short-term, low
cost  advances,  leaving  mostly  higher rate  long-term  advances on the Bank's
books.

Provision for Loan Losses. The provision for loan losses increased  $98,000,  to
$64,000  for the quarter  ended  December  31,  2005,  from a $34,000  reduction
recorded during the quarter ended December 31, 2004.  Management  attributes the
increase  primarily to growth in the loan  portfolio.  Total loans  increased to
$632.7  million at December  31,  2005,  from $562.6  million at June 30,  2005.
Non-performing  loans were $1.2 million, or 0.19% of total loans at December 31,
2005, as compared to $1.9 million, or 0.34% of total loans at June 30, 2005. The
allowance for loan losses as a percentage of gross loans  outstanding  was 0.88%
at December 31, 2005 and 0.96% at June 30, 2005,  reflecting  allowance balances
of $5.6 million and $5.4  million,  respectively.  The allowance for loan losses
was $5.3 million at December 31, 2004.

Management  assesses the  allowance  for loan losses  monthly.  Management  uses
available  information to recognize  losses on loans,  however,  additional loan
loss  provisions  may be necessary  in the future,  based on changes in economic
conditions.  In  addition,  regulatory  agencies,  as an integral  part of their
examination  process,  periodically review the allowance for loan losses and may
require  us to  recognize  additional  provisions  based  on their  judgment  of
information  available to them at the time of their  examination.  We maintained
the  allowance  for  loan  losses  as of  December  31,  2005  at a  level  that
represented  management's  best estimate of losses in the loan  portfolio to the
extent they were both probable and reasonably estimable.

Non-Interest Income. Non-interest income attributed to fees, service charges and
miscellaneous income increased $207,000,  to $617,000 for the three months ended
December 31, 2005,  compared to $410,000 for the three months ended December 31,
2004. The increase in non-interest  income  attributed to fees,  service charges
and  miscellaneous  income was due primarily to income of $95,000  realized from
additional  bank  owned life  insurance  purchased  during  the two most  recent
quarters,  a non-recurring  mortgage prepayment penalty of $73,000 and increased
fee income from the Bank's retail branch system.

There was no income  from gains on the sale of  securities  during  the  quarter
ended December 31, 2005 or December 31, 2004.

Non-Interest  Expense.  Total  non-interest  expense increased $1.3 million,  or
14.8%,  to $10.1 million for the three months ended December 31, 2005, from $8.8
million for the three months ended  December  31, 2004.  The increase  consisted
primarily  of  an  increase  in  salaries  and  employee  benefits,   directors'
compensation, nominal increases in equipment expense and advertising expense and
higher miscellaneous expenses.

Salaries and employee benefits increased $418,000,  or 7.9%, to $5.8 million for
the quarter  ended  December 31, 2005,  compared to $5.3 million for the quarter
ended December 31, 2004.  Management  attributes the increase primarily to stock
benefit  plans  approved at the Company's  first annual  meeting held in October
2005,  which  resulted  in an  expense of  $280,000.  Compensation  expense  was
virtually  flat,  while  other  employee  benefits  including  health  insurance
increased $109,000, year-over-year.  Pension expense decreased $433,000 from the
earlier  quarter,  when the Bank  recorded  a special  charge  due to  actuarial
adjustments resulting from lower than expected investment returns on plan assets
and higher  required  contributions  resulting  from the  incremental  effect of
normal salary increases.  The quarter ended December 31, 2005 contained employee
stock  ownership  plan  ("ESOP")  compensation  expense of  $440,000,  while the
quarter ended December 31, 2004 did not include this expense category.  The Bank
established  the ESOP during the initial public  offering  completed in February
2005, purchasing 1.7 million shares in the IPO.

                                      -13-
<PAGE>

An increase of $136,000,  year-over-year,  in equipment  expense  resulted  from
higher  depreciation  expense and increased  costs  related to data  processing,
including  system risk  assessment  and  intrusion  protection,  ATM support and
Internet banking. Depreciation expense increased due primarily to new furniture,
fixtures and equipment located in the Company's headquarters building.

Advertising expense increased $90,000,  compared to the earlier quarter,  due to
an  extensive  advertising  campaign  associated  with the grand  opening of the
Bank's 26th retail branch office in Lanoka Harbor, New Jersey.

Directors' compensation increased $352,000, to $582,000 during the quarter ended
December 31, 2005,  from  $230,000 in the quarter ended  December 31, 2004.  The
increase  resulted  primarily from stock benefit plans approved at the Company's
annual meeting,  with an expense recorded of $295,000.  Other fees, including an
expense  attributed  to a  directors'  incentive  compensation  plan,  increased
$57,000.

Miscellaneous  expenses  increased  $312,000,  or 33.4%, to $1.2 million for the
quarter  ended  December  31, 2005,  compared to $935,000 for the quarter  ended
December 31, 2004.  Miscellaneous expenses included professional fees consisting
of legal expense and audit and  accounting  services  expense,  which  increased
$75,000 and $103,000,  respectively,  and expenses of $95,000  attributed to the
Company's  annual  meeting.  These expenses were in large part due to becoming a
public company during the months between reporting  periods.  All other elements
of non-interest expense totaled $1.1 million for the three months ended December
31,  2005;  an  increase of $63,000,  or 6.3%,  from $1.0  million for the three
months ended December 31, 2004.

Provision for Income Taxes.  The provision for income taxes decreased  $566,000,
or 51.5%, to $577,000 for the quarter ended December 31, 2005, from $1.1 million
for the quarter ended December 31, 2004. The effective income tax rate was 19.9%
for the three months ended December 31, 2005, as compared to 26.4% for the three
months ended  December 31, 2004.  There was a decrease in pre-tax income of $1.4
million, or 32.6%, to $2.9 million for the quarter ended December 31, 2005, from
$4.3 million for the quarter ended December 31, 2004.  Management attributes the
lower  effective  income  tax  rate  to  tax  management  strategies,  including
investing  in  bank-qualified   tax-exempt   municipal  bonds  and  transferring
investment  securities held to maturity and  mortgage-backed  securities held to
maturity  to  a  New  Jersey  investment  company  subsidiary,   Kearny  Federal
Investment  Corp.,  a wholly  owned  subsidiary  of the  Bank,  which  commenced
operations in July 2004. During the quarter ended December 31, 2005, the Company
recorded  adjustments  attributed  to filing its  federal  and state  income tax
returns for the year ended June 30, 2005, reducing tax expense by $81,000, which
was another factor in the decrease of its effective tax rate.

Comparison of Operating  Results for the Six Months Ended  December 31, 2005 and
2004

General. Net income for the six months ended December 31, 2005 was $5.3 million,
a decrease of $1.7 million, or 24.3%, from $7.0 million for the six months ended
December  31,  2004.  The  decrease in net income  resulted  from an increase in
non-interest  expense,   particularly   salaries  and  employee  benefits,   and
directors'  compensation,  and to a lesser  degree,  net  occupancy  expense  of
premises,  equipment expense,  advertising expense and miscellaneous expenses. A
nominal  decrease in net interest  income and increase in the provision for loan
losses also contributed to the decrease in net income.

Net Interest Income. A flattening  Treasury yield curve during the twelve months
between  December 31, 2004 and December 31, 2005 hindered the Bank's  efforts to
offset increasing interest expense. Net interest income for the six months ended
December 31, 2005 was $25.3 million, a decrease of $161,000,  or 0.6%,  compared
to $25.5  million for the six months ended  December  31,  2004.  A  substantial
increase  in the ratio of average  interest-earning  assets to  interest-bearing
liabilities  offset a large  decrease  in the net  interest  rate  spread  and a
smaller decrease in the net interest margin.  As a result,  interest income lost
ground to interest expense, year-over-year.

                                      -14-

<PAGE>

The net  interest  rate spread  decreased  56 basis  points to 2.09% for the six
months ended December 31, 2005, from 2.65% for the six months ended December 31,
2004.  Interest rate sensitivity  during the six months ended December 31, 2005,
compared  to the six months  ending  December  31,  2004,  reflected  a widening
negative  gap,  with   interest-bearing   liabilities   re-pricing  faster  than
interest-earning  assets.  The  cost  of  average  interest-bearing  liabilities
increased  62 basis  points,  from 1.85% for the six months  ended  December 31,
2004, to 2.47% for the six months ended  December 31, 2005.  With respect to the
two components of interest-bearing liabilities, the cost of borrowings increased
faster than the cost of deposits,  year-over-year.  During the same period,  the
yield on average  interest-earning  assets increased six basis points,  to 4.56%
for the six months ended December 31, 2005,  from 4.50% for the six months ended
December 31, 2004.  The net interest  margin  decreased 26 basis points to 2.62%
for the six months  ended  December 31,  2005,  compared  with 2.88% for the six
months ended December 31, 2004.

The  ratio  of  average  interest-earning  assets  to  average  interest-bearing
liabilities  increased  from 114.27% for the six months ended December 31, 2004,
to 127.70% for the six months ended  December 31, 2005.  The primary  reason for
the increase in the ratio was the infusion of cash  resulting from the Company's
initial  public  offering  completed in February 2005.  Between the  comparative
periods,  including the six months ended  December 31, 2005, the Bank focused on
deploying the proceeds from the Company's initial public offering,  primarily in
loans receivable.

Interest  Income.  Total interest  income  increased $4.3 million,  or 10.8%, to
$44.0 million for the six months ended December 31, 2005, from $39.7 million for
the  six  months  ended  December  31,  2004.  Average  interest-earning  assets
increased  $162.6  million,  or 9.2%,  to $1.93 billion for the six months ended
December 31,  2005,  from $1.77  billion for the six months  ended  December 31,
2004. A significant increase in average  interest-earning assets, rather than an
increase in the yield on average  interest-earning assets, provided the stimulus
for the growth of  interest  income.  There was growth,  year-over-year,  in the
average balances of all interest-earning asset categories: most notably in loans
receivable,  and to a  lesser  degree  in  mortgage-backed  securities  held  to
maturity,  investment  securities  available  for sale and held to maturity  and
other interest-earning assets. Generally, the growth resulted primarily from the
infusion of cash from the Company's initial public offering.

Interest income on loans receivable  increased $2.2 million,  or 15.2%, to $16.7
million for the six months ended  December 31, 2005,  from $14.5 million for the
six months  ended  December 31, 2004.  The average  balance of loans  receivable
increased  $82.6 million,  or 16.2%,  to $594.0 million for the six months ended
December 31,  2005,  from $511.4  million for the six months ended  December 31,
2004.  There was a four  basis  point  decrease  in the yield on  average  loans
receivable to 5.61% for the six months ended  December 31, 2005,  from 5.65% for
the six months ended December 31, 2004. Early in 2005, the Bank launched a major
marketing effort that continued  throughout the year, designed to take advantage
of a strong housing market.  This marketing program  significantly  boosted loan
originations,  which contributed to the increase in the average balance of loans
receivable.  However,  the weighted average  interest rate of loan  originations
during the year was lower than the weighted  average interest rate of loans paid
in full, causing a decrease in the yield on average loans receivable.

Interest  income on  mortgage-backed  securities  held to  maturity  increased a
nominal $39,000,  virtually  unchanged at $17.0 million for the six months ended
December 31, 2005,  compared to $16.9 million for the six months ended  December
31, 2004. The average  balance of  mortgage-backed  securities  increased  $11.5
million,  or 1.6%, to $748.4 million for the six months ended December 31, 2005,
from $736.9  million for the six months ended  December  31, 2004.  The yield on
average  mortgage-backed  securities decreased to 4.54% for the six months ended
December 31, 2005,  from 4.60% for the six months ended  December 31, 2004.  The
increase in the average balance of mortgage-backed  securities,  year-over-year,
resulted from  reinvestment of monthly  principal and interest payments into new
mortgage-backed securities. The decrease in yield resulted from the reinvestment
of monthly principal payments from higher coupon mortgage-backed securities into
new securities,  which occurred in a relatively lower interest rate environment.
Generally, additions to the portfolio were adjustable rate, due to management's

                                      -15-
<PAGE>

concerns about rising interest rates. By sacrificing higher yields on fixed rate
securities in the short-term, the Bank gained some interest rate risk protection
in the portfolio for the future.

Interest income on investment securities available for sale and held to maturity
increased  $597,000,  or 7.4%, to $8.7 million for the six months ended December
31,  2005,  from $8.1 million for the six months  ended  December 31, 2004.  The
average  balance of investment  securities  increased  $10 million,  or 2.1%, to
$495.1  million for the six months ended  December 31, 2005,  compared to $485.1
million  during the prior year. The yield improved from 3.34% for the six months
ended  December 31, 2004,  to 3.51% for the six months ended  December 31, 2005.
The increase in the average  balance of investment  securities,  year-over-year,
resulted from the  reinvestment  of cash from maturing  securities back into the
portfolio,  supplemented  by  the  deployment  of  cash  and  cash  equivalents.
Purchases were primarily in the tax-exempt  category.  The higher yield resulted
from  the  reinvestment  of  maturing  short-term  government  agency  notes  in
tax-exempt  municipal bonds featuring nominally higher coupons as well as higher
tax equivalent yields.

Interest income on other  interest-earning  assets increased to $1.6 million for
the six months ended  December 31, 2005,  from $245,000 for the six months ended
December 31, 2004. This was a result of a $58.5 million  increase in the average
balance of other  interest-earning  assets to $91.7  million  for the six months
ended  December 31, 2005,  from $33.2 million for the six months ended  December
31, 2004. The average balance of other interest-earning  assets increased due to
the increase in interest-earning deposits, which consisted of cash received from
the initial  public  offering  completed in February  2005.  There was a nominal
decrease of $1.0 million in the average  balance of FHLB capital stock,  another
component of  interest-earning  assets,  which  decreased due to a repurchase by
FHLB to meet  regulatory  requirements.  There was a 208 basis point increase in
the yield on average other  interest-earning  assets to 3.55% for the six months
ended December 31, 2005,  from 1.47% for the six months ended December 31, 2004,
due to rising short-term interest rates.

Interest Expense.  Total interest expense  increased $4.4 million,  or 30.8%, to
$18.7 million for the six months ended December 31, 2005, from $14.3 million for
the six months ended December 31, 2004. The increase resulted  primarily from an
increase in the cost of average interest-bearing  liabilities,  partially offset
by a decrease in the average balance of interest-bearing liabilities.  There was
a 62 basis point increase in the cost of average interest-bearing liabilities to
2.47% for the six months ended December 31, 2005, from 1.85%, for the six months
ended December 31, 2004.  The average  balance of  interest-bearing  liabilities
decreased  $35.3  million,  or 2.3%,  to $1.51  billion for the six months ended
December 31,  2005,  from $1.55  billion for the six months  ended  December 31,
2004.

Interest expense on deposits increased $4.6 million,  or 37.4%, to $16.9 million
for the six months  ended  December  31,  2005,  from $12.3  million for the six
months ended December 31, 2004. The increase resulted primarily from an increase
in the cost of average interest-bearing deposits, partially offset by a decrease
in the  average  balance  of  interest-bearing  deposits.  The  cost of  average
interest-bearing  deposits increased 66 basis points to 2.34% for the six months
ended December 31, 2005,  from 1.68% for the six months ended December 31, 2004.
The average balance of  interest-bearing  deposits  decreased $12.9 million,  to
$1.45 billion for the six months ended December 31, 2005, from $1.46 billion for
the six months ended December 31, 2004.  During the quarter ended June 30, 2005,
the Bank  reacted to  competitive  pressures  in the market  place by offering a
premium  short-term  interest  rate,  which  attracted  new money in the form of
certificates of deposit.  However,  the Bank retreated from that strategy during
the two most recent  quarters due to the  negative  effect on its cost of funds.
Management's  goal is to slow the increase in the cost of funds caused by a rise
in market interest  rates,  but a result of this strategy is a loss of deposits.
The decrease was primarily in certificates of deposit, year-over-year.

Interest  expense on Federal  Home Loan Bank  advances  decreased  $251,000,  or
12.6%,  to $1.7  million for the six months ended  December 31, 2005,  from $2.0
million  for the six  months  ended  December  31,  2004.  The  average  balance
decreased $22.4 million, or 26.5%, to $62.1 million for the six months ended

                                      -16-

<PAGE>

December 31,  2005,  from $84.5  million for the six months  ended  December 31,
2004,  which was more than  enough to offset an  increase in the cost of average
borrowings.  The cost of average  borrowings  increased 88 basis points to 5.56%
from 4.68%,  year-over-year.  The decrease in the average balance  resulted from
the  repayment  of  short-term   advances  obtained  to  fund  the  purchase  of
securities, subsequently paid off with proceeds from the initial public offering
completed  in  February  2005,  plus  scheduled  monthly  principal  payments on
amortizing  advances.  The  cost  of  average  borrowings  increased  due to the
repayment of the  short-term,  low cost  advances,  leaving  mostly  higher rate
long-term advances on the Bank's books.

Provision for Loan Losses. The provision for loan losses increased  $22,000,  to
$139,000 for the six months ended  December 31,  2005,  from  $117,000  recorded
during the six  months  ended  December  31,  2004.  Management  attributes  the
increase  primarily  to growth in the loan  portfolio  between the two  periods.
Total loans  increased  to $632.7  million at  December  31,  2005,  from $562.6
million at June 30, 2005.  Non-performing  loans were $1.2 million,  or 0.19% of
total loans at December 31, 2005, as compared to $1.9 million, or 0.34% of total
loans at June 30, 2005.  The  allowance for loan losses as a percentage of gross
loans  outstanding  was 0.88% at December  31, 2005 and 0.96% at June 30,  2005,
reflecting  allowance  balances of $5.6 million and $5.4 million,  respectively.
The allowance for loan losses was $5.3 million at December 31, 2004.

Management  assesses the  allowance  for loan losses  monthly.  Management  uses
available  information to recognize  losses on loans,  however,  additional loan
loss  provisions  may be necessary  in the future,  based on changes in economic
conditions.  In  addition,  regulatory  agencies,  as an integral  part of their
examination  process,  periodically review the allowance for loan losses and may
require  us to  recognize  additional  provisions  based  on their  judgment  of
information  available to them at the time of their  examination.  We maintained
the  allowance  for  loan  losses  as of  December  31,  2005  at a  level  that
represented  management's  best estimate of losses in the loan  portfolio to the
extent they were both probable and reasonably estimable.

Non-Interest Income. Non-interest income attributed to fees, service charges and
miscellaneous  income  increased  $291,000,  to $1.1  million for the six months
ended  December 31, 2005,  from  $833,000 for the six months ended  December 31,
2004. The increase in non-interest  income  attributed to fees,  service charges
and  miscellaneous  income was due primarily to income of $132,000 realized from
additional  bank owned  life  insurance  purchased  during  the  quarters  ended
September 30 and December 31, 2005, a non-recurring  mortgage prepayment penalty
of $73,000 and increased fee income from the Bank's retail branch system.

There was  non-interest  income  from  gains on the sale  securities  of $86,000
during the six months ended December 31, 2005,  compared to non-interest  income
from  gains on the sale of  securities  of $71,000  during the six months  ended
December 31, 2004.

Non-Interest  Expense.  Total  non-interest  expense increased $2.9 million,  or
17.5%,  to $19.5 million for the six months ended December 31, 2005,  from $16.6
million for the six months  ended  December 31,  2004.  The  increase  consisted
primarily  of an increase in  salaries  and  employee  benefits,  net  occupancy
expense  of  premises,   equipment  expense,   advertising  expense,  directors'
compensation and miscellaneous expenses.

Salaries  and employee  benefits  increased  $1.4  million,  or 14.0%,  to $11.4
million for the six months ended  December 31, 2005,  compared to $10.0  million
for the six months ended December 31, 2004.  Management  attributes the increase
primarily to stock benefit plans approved at the Company's  first annual meeting
held in October  2005,  which  resulted in an expense of $280,000  and  employee
stock  ownership  plan  ("ESOP")  compensation  expense  of  $877,000.  The Bank
established  the ESOP during the initial public  offering  completed in February
2005,  purchasing 1.7 million shares in the IPO.  Compensation expense increased
$453,000, year-over-year, due to normal salary increases and additional

                                      -17-
<PAGE>

personnel  hired to staff the Bank's 26th retail branch office,  which opened in
Lanoka Harbor,  New Jersey.  Other employee benefits expense including  employee
health insurance increased $198,000,  year-over-year.  Pension expense decreased
$473,000  from the earlier  reporting  period,  when the Bank recorded a special
charge  due  to  actuarial   adjustments  resulting  from  lower  than  expected
investment  returns on plan assets and higher required  contributions  resulting
from the incremental effect of normal salary increases.

Net occupancy expense of premises  increased $315,000 to $1.7 million during the
six months ended December 31, 2005.  Management  attributes most of the increase
to repairs and  maintenance  expense and utilities  expense  associated with the
operation  of the Bank's  retail  branch  system.  An increase  in  depreciation
expense  resulted from the  Company's  headquarters  building in Fairfield,  New
Jersey,  which the Bank's  personnel did not occupy until late in 2004.  Late in
2005, the Bank began leasing space to a tenant,  located in the building housing
its Springfield,  New Jersey retail branch office,  which will help mitigate the
cost of  operating  that  location.  The Bank may lease other  surplus  space to
tenants in the future.

An increase of $314,000,  year-over-year,  in equipment  expense  resulted  from
higher  depreciation  expense and increased  costs  related to data  processing,
including  system risk  assessment  and  intrusion  protection,  ATM support and
Internet banking. Depreciation expense increased due primarily to new furniture,
fixtures and equipment located in the Company's headquarters building.

Advertising expense increased  $134,000,  compared to the earlier period, due to
an  extensive  advertising  campaign  associated  with the grand  opening of the
Bank's 26th retail branch  office in Lanoka  Harbor,  New Jersey.  The Bank also
conducted a yearlong marketing campaign to increase its loan originations.

Directors'  compensation  increased $365,000,  to $812,000 during the six months
ended  December 31,  2005,  from  $447,000 in the six months ended  December 31,
2004. The increase  resulted  primarily from stock benefit plans approved at the
Company's  annual  meeting,  with an expense  recorded of $295,000.  Other fees,
including an expense  attributed to a directors'  incentive  compensation  plan,
increased $70,000.

Miscellaneous expenses increased $472,000, or 26.2%, to $2.2 million for the six
months  ended  December  31,  2005,  compared to $1.8 million for the six months
ended  December 31, 2004.  Miscellaneous  expenses  included  professional  fees
consisting of legal expense and audit and  accounting  services  expense,  which
increased  $101,000  and  $174,000,   respectively,   and  expenses  of  $95,000
attributed to the Company's  annual  meeting.  These expenses were in large part
due to becoming a public company during the months  between  reporting  periods.
Audit and  accounting  services  expense  includes  expenditures  to assist  the
Company in preparing  for  compliance  with  Sarbanes-Oxley  Section 404 in June
2006. All other elements of non-interest  expense  totaled  $588,000 for the six
months ended  December 31, 2005; a decrease of $9,000,  or 0.21%,  from $597,000
for the six months ended December 31, 2004.

Provision  for Income  Taxes.  The  provision  for income taxes  decreased  $1.1
million,  or 40.7%,  to $1.6 million for the six months ended December 31, 2005,
from $2.7 million for the six months ended  December  31,  2004.  The  effective
income  tax rate was  22.8% for the six  months  ended  December  31,  2005,  as
compared  to 27.9% for the six  months  ended  December  31,  2004.  There was a
decrease in pre-tax  income of $2.8 million,  or 28.9%,  to $6.9 million for the
six months ended  December 31, 2005,  from $9.7 million for the six months ended
December 31, 2004.  Management attributes the lower effective income tax rate to
tax management  strategies,  including  investing in  bank-qualified  tax-exempt
municipal  bonds and  transferring  investment  securities  held to maturity and
mortgage-backed  securities held to maturity to a New Jersey investment  company
subsidiary,  Kearny Federal  Investment  Corp., a wholly owned subsidiary of the
Bank,  which  commenced  operations  in July 2004.  During the six months  ended
December 31, 2005,  the Company  recorded  adjustments  attributed to filing its
federal and state income tax returns for the year ended June 30, 2005,  reducing
tax  expense  by  $81,000,  which  was  another  factor in the  decrease  of its
effective tax rate.

                                      -18-
<PAGE>

Liquidity and Capital Resources

The Bank's liquidity,  represented by cash and cash equivalents, is a product of
its operating, investing and financing activities. The Bank's primary sources of
funds are deposits, amortization,  prepayments and maturities of mortgage-backed
securities and outstanding loans,  maturities of investment securities and funds
provided  from  operations.  In  addition,  the  Bank  invests  excess  funds in
short-term  interest-earning  assets such as overnight  deposits or U.S.  agency
securities,  which  provide  liquidity  to  meet  lending  requirements.   While
scheduled payments from the amortization of loans and mortgage-backed securities
and maturing  investment  securities and short-term  investments  are relatively
predictable  sources of funds,  general interest rates,  economic conditions and
competition  greatly  influence  deposit  flows  and  prepayments  on loans  and
mortgage-backed securities.

The Bank is required to have enough investments that qualify as liquid assets in
order to maintain sufficient liquidity to ensure a safe operation. Liquidity may
increase or decrease  depending upon the  availability  of funds and comparative
yields on investments  in relation to the return on loans.  The Bank attempts to
maintain adequate but not excessive liquidity,  and liquidity management is both
a daily and long-term function of business management.

The Bank reviews cash flow  projections  regularly  and updates them in order to
maintain  liquid assets at levels  believed to meet the  requirements  of normal
operations,  including  loan  commitments  and potential  deposit  outflows from
maturing certificates of deposit and savings withdrawals.  At December 31, 2005,
the  Bank had  outstanding  commitments  to  originate  loans of $70.8  million,
construction  loans in process of $18.4  million  and unused  lines of credit of
$27.3 million.  Certificates of deposit  increased during the quarter ended June
30,  2005,  due to a  promotional  short-term  rate  offered  by the Bank to its
depositors.  Deposits,  primarily  certificates  of  deposit,  decreased  in the
quarters   ended   September  30,  2005  and  December  31,  2005  as  the  Bank
intentionally  slowed increases in the rates it pays on deposits relative to the
pace of rising  market  interest  rates.  Certificates  of deposit  scheduled to
mature in one year or less at December 31, 2005, totaled $716.1 million.

While deposits are the Bank's  primary source of funds,  the Bank also generates
cash  through  borrowings  from the  Federal  Home  Loan  Bank of New York  (the
"FHLB"). At December 31, 2005, advances from the FHLB amounted to $61.4 million.
The Bank has the capacity to borrow  additional funds from the FHLB,  through an
overnight  line of  credit  or by  taking  additional  long-term  or  short-term
advances.  As a result of  continued  strong loan demand and  continued  deposit
outflows,  the Bank began utilizing the FHLB overnight line of credit during the
quarter ending March 31, 2006.

Consistent  with  its  goals  to  operate  a  sound  and  profitable   financial
organization,   the  Bank   actively   seeks  to   maintain   its  status  as  a
well-capitalized  institution in accordance  with  regulatory  standards.  As of
December 31, 2005, Kearny Federal Savings Bank exceeded all capital requirements
of the Office of Thrift Supervision (the "OTS").
                                      -19-
<PAGE>

The following table sets forth the Bank's capital position at December 31, 2005,
as compared to the minimum regulatory capital requirements:

<TABLE>
<CAPTION>
                                                December 31, 2005 (Unaudited)
                                  -------------------------------------------------------------
                                                                                To Be Well
                                                                             Capitalized Under
                                                        Minimum Capital      Prompt Corrective
                                       Actual            Requirements        Action Provisions
                                  ----------------   ---------------------  -------------------
                                   Amount   Ratio       Amount     Ratio       Amount    Ratio
                                  -------------------------------------------------------------
                                                        (In Thousands)
<S>                              <C>       <C>       <C>           <C>      <C>         <C>
Total Capital
  (to risk-weighted assets)       371,989   49.76%    $ 59,809      8.00%    $ 74,762    10.00%

Tier 1 Capital
  (to risk-weighted assets)       362,728   48.52%           -         -     $ 44,857     6.00%

Core (Tier 1) Capital
  (to adjusted total assets)      362,728   18.78%    $ 57,957      3.00%    $ 96,596     5.00%

Tangible Capital
  (to adjusted total assets)      362,728   18.78%    $ 28,979      1.50%           -        -

</TABLE>

                                      -20-
<PAGE>

                                     ITEM 3.
            QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
            ---------------------------------------------------------


Qualitative  Analysis.  The ability to maximize net  interest  income is largely
dependent upon the  achievement of a positive  interest rate spread  sustainable
during fluctuations in prevailing interest rates. Interest rate sensitivity is a
measure  of the  difference  between  amounts  of  interest-earning  assets  and
interest-bearing  liabilities,  which either  re-price or mature  within a given
period.  The  difference,  or the interest rate  re-pricing  "gap",  provides an
indication of the extent changes in interest  rates may affect an  institution's
interest  rate spread.  A positive  gap exists when the amount of  interest-rate
sensitive assets exceeds the amount of interest-rate sensitive liabilities,  and
a negative  gap exists when the amount of interest  rate  sensitive  liabilities
exceeds the amount of interest-rate sensitive assets. Generally, during a period
of rising  interest  rates,  a negative  gap  within  shorter  maturities  would
adversely  affect  net  interest  income,  while a positive  gap within  shorter
maturities would result in an increase in net interest  income.  During a period
of falling interest rates, a negative gap within shorter maturities would result
in an  increase  in net  interest  income  while a positive  gap within  shorter
maturities would result in a decrease in net interest income.

Because the Bank's interest-bearing liabilities, which mature or re-price within
short periods exceed its interest-earning  assets with similar  characteristics,
material and prolonged  increases in interest rates  generally  would  adversely
affect net interest income,  while material and prolonged  decreases in interest
rates generally would have a positive effect on net interest income.

The Bank's  Board of  Directors  established  an Interest  Rate Risk  Management
Committee comprised of members of the board and management.  The committee meets
quarterly to address management of the Bank's assets and liabilities,  including
review of its short  term  liquidity  position;  loan and  deposit  pricing  and
production volumes and alternative funding sources; current investments; average
lives,  durations and  re-pricing  frequencies  of loans and  securities;  and a
variety of other asset and liability  management  topics.  The committee reports
the results of its quarterly  review to the full board,  which adjusts  interest
rate risk policy and strategies, as it considers necessary and appropriate.

Quantitative  Analysis.  Management  using the OTS model,  which  estimates  the
change in the Bank's net  portfolio  value (the  "NPV") over a range of interest
rate  scenarios,  monitors  the Bank's  interest  rate  sensitivity.  NPV is the
present value of expected cash flows from assets,  liabilities,  and off-balance
sheet contracts. OTS defines the NPV ratio, under any interest rate scenario, as
the NPV in that  scenario  divided  by the  market  value of  assets in the same
scenario.  The OTS produces its analysis based upon data submitted on the Bank's
quarterly  Thrift Financial  Reports.  The following table sets forth the Bank's
NPV as of  September  30,  2005,  the most  recent  date for  which the Bank has
received the Bank's NPV as  calculated by the OTS.  Management  does not believe
that there has been a material  adverse change in the Bank's  interest rate risk
during the three months ended December 31, 2005.

                                    At September 30, 2005
                      ----------------------------------------------------------
                                                  Net Portfolio Value
                       Net Portfolio Value     as % of Present Value of Assets
                      ---------------------  -----------------------------------
                                                       Net Portfolio Basis Point
   Changes in Rates   $ Amount    $ Change   % Change   Value Ratio    Change
-------------------   --------    --------   --------   ---------     --------
                        (In Thousands)
       +300 bp         307,581    -137,422       -31%      16.45%      -551 bp
       +200 bp         354,153     -90,849       -20%      18.42%      -354 bp
       +100 bp         400,710     -44,292       -10%      20.28%      -167 bp
          0 bp         445,003           -         -       21.96%         -
       -100 bp         480,096     +35,093        +8%      23.20%      +124 bp
       -200 bp         499,560     +54,557       +12%      23.81%      +186 bp


                                      -21-
<PAGE>

Certain  shortcomings are inherent in the methodology used in the above interest
rate risk  measurements.  Modeling  changes in NPV require the making of certain
assumptions,  which may or may not reflect the manner in which actual yields and
costs respond to changes in market interest rates. In this regard, the NPV model
presented  assumes that the composition of the Bank's interest  sensitive assets
and liabilities  existing at the beginning of a period remains constant over the
measurement  period. The model also assumes that a particular change in interest
rates reflects  uniformly  across the yield curve  regardless of the duration to
maturity or re-pricing of specific assets and liabilities. Accordingly, although
the NPV measurements and net interest income models provide an indication of the
Bank's  interest  rate  risk  exposure  at a  particular  point  in  time,  such
measurements  are not  intended to and do not provide a precise  forecast of the
effect of changes in market interest rates on the Bank's net interest income and
will differ from actual results.

                                      -22-
<PAGE>

                                     ITEM 4.
                             CONTROLS AND PROCEDURES
                             -----------------------


Based on their  evaluation of the Company's  disclosure  controls and procedures
(as defined in Rules  13a-15(e)  under the Securities  Exchange Act of 1934 (the
"Exchange Act")),  the Company's  principal  executive officer and the principal
financial  officer have  concluded  that as of the end of the period  covered by
this Quarterly  Report on Form 10-Q such disclosure  controls and procedures are
effective to ensure that information  required to be disclosed by the Company in
reports that it files or submits under the Exchange Act is recorded,  processed,
summarized  and reported  within the time periods  specified in  Securities  and
Exchange  Commission  rules and forms and is accumulated and communicated to the
Company's  management,  including the principal  executive officer and principal
financial officer,  as appropriate to allow timely decisions  regarding required
disclosures.

During the quarter under report,  there was no change in the Company's  internal
control  over  financial  reporting  (as  defined  in Rule  13a-15(f)  under the
Securities  and  Exchange  Act of 1934)  that  has  materially  affected,  or is
reasonably  likely to materially  affect,  the Company's  internal  control over
financial reporting.

                                      -23-
<PAGE>

                                     PART II


ITEM 1.        Legal Proceedings
               -----------------

               At December 31, 2005,  neither the Company nor the Bank were
               involved in any pending legal proceedings other than routine
               legal  proceedings  occurring  in  the  ordinary  course  of
               business, which involve amounts in the aggregate believed by
               management to be  immaterial  to the financial  condition of
               the Company and the Bank.

ITEM 2.        Unregistered Sales of Equity Securities and Use of Proceeds
               -----------------------------------------------------------

               Not applicable.

ITEM 3.        Defaults Upon Senior Securities
               -------------------------------

               Not applicable.

ITEM 4.        Submission of Matters to a Vote of Security Holders
               ---------------------------------------------------

               The Annual Meeting of Stockholders (the "Meeting") of the Company
               was held on October 24, 2005. There were outstanding and entitled
               to vote at the Meeting  72,737,500  shares of Common Stock of the
               Company,  including  50,916,250  shares held by Kearny  MHC,  the
               mutual  holding  company  parent of the Company that holds 70% of
               the  outstanding  stock.  Kearny MHC voted its shares in favor of
               all proposals.  There were present at the meeting or by proxy the
               holders of 69,227,748 shares of Common Stock  representing  95.2%
               of the total eligible  votes to be cast.  Proposal 1 was to elect
               three  directors  of the  Company.  Proposal 2 was to approve the
               Company's 2005 Stock Compensation and Incentive Plan.  Proposal 3
               was to ratify the appointment of the independent  auditor for the
               fiscal year ending June 30, 2006. The result of the voting at the
               Meeting is as follows:

               Proposal 1:
               Joseph P. Mazza        FOR: 67,051,976     WITHHELD: 2,175,772
               John F. Regan          FOR: 67,052,319     WITHHELD: 2,175,429
               Theodore J. Aanensen   FOR: 67,340,353     WITHHELD: 1,887,395
               Leopold W. Montanaro   FOR: 67,336,612     WITHHELD: 1,891,136

               Proposal 2:
               Approval of the Kearny Financial Corp. 2005 Stock Compensation
               and Incentive Plan.

                                      FOR:       59,715,088
                                      AGAINST:    1,157,301
                                      ABSTAIN:       86,795

               Proposal 3:
               Ratification  of the appointment of Beard Miller Company LLP as
               independent auditor.

                                      FOR:       68,725,877
                                      AGAINST:      450,111
                                      ABSTAIN:       51,760

ITEM 5.        Other Information
               -----------------

               None.

                                      -24-

<PAGE>

ITEM 6.        Exhibits
               --------

               The following Exhibits are filed as part of this report:
<TABLE>
<CAPTION>
        <S>               <C>
                    3.1     Charter of Kearny Financial Corp. (1)
                    3.2     By-laws of Kearny Financial Corp. (1)
                    4.0     Specimen Common Stock Certificate of Kearny Financial Corp. (1)
                   10.1     Employment Agreement between Kearny Federal Savings Bank and John N. Hopkins (1)
                   10.2     Employment Agreement between Kearny Federal Savings Bank and Allan Beardslee (1)
                   10.3     Employment Agreement between Kearny Federal Savings Bank and Albert E. Gossweiler (1)
                   10.4     Employment Agreement between Kearny Federal Savings Bank and Sharon Jones (1)
                   10.5     Employment Agreement between Kearny Federal Savings Bank and William C. Ledgerwood (1)
                   10.6     Employment Agreement between Kearny Federal Savings Bank and Erika Sacher Parisi (1)
                   10.7     Employment Agreement between Kearny Federal Savings Bank and Patrick M. Joyce (1)
                   10.8     Directors Consultation and Retirement Plan (1)
                   10.9     Benefit Equalization Plan (1)
                   10.10    Benefit Equalization Plan for Employee Stock Ownership Plan (1)
                   10.11    2005 Stock Compensation and Incentive Plan (2)
                   11.0     Statements re: computation of per share earnings (Filed herewith).
                   31.0     Rule 13a-14(a)/15d-14(a) Certifications (Filed herewith).
                   32.0     Section 1350 Certifications (Filed herewith).

                ----------------------------------------------------------------
               (1)  Incorporated by reference to the identically numbered exhibit to the
                    Registrant's Registration Statement on Form S-1 (File No. 333-118815).

               (2)  Incorporated by reference to the Registrant's definitive proxy
                    statement filed September 30, 2005  (File  No. 000-51093).
</TABLE>
                                      -25-
<PAGE>

                                   SIGNATURES
                                   ----------





Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on it  behalf  by the
undersigned thereunto duly authorized.



                                        KEARNY FINANCIAL CORP.

Date:    February 14, 2006     By:      /s/ John N. Hopkins
         -----------------              ----------------------------------------
                                        John N. Hopkins
                                        President and Chief Executive Officer
                                        (Duly authorized officer and principal
                                        executive officer)

Date:    February 14, 2006     By:      /s/ Albert E. Gossweiler
         -----------------              ----------------------------------------
                                        Albert E. Gossweiler
                                        Senior Vice President and Chief
                                        Financial Officer
                                       (Principal financial officer)


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