# EDGAR Filing Document

**Accession Number:** 0001617242
**File Stem:** 0001617242-23-000006
**Filing Date:** 2023-1
**Character Count:** 60278
**Document Hash:** 41498b47e391303f8cb221ea66bfe787
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001617242-23-000006.hdr.sgml**: 20230126

**ACCESSION NUMBER**: 0001617242-23-000006

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 27

**CONFORMED PERIOD OF REPORT**: 20230126

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230126

**DATE AS OF CHANGE**: 20230126

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Kearny Financial Corp.
- **CENTRAL INDEX KEY:** 0001617242
- **STANDARD INDUSTRIAL CLASSIFICATION:** SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035]
- **IRS NUMBER:** 300870244
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37399
- **FILM NUMBER:** 23554718

**BUSINESS ADDRESS:**
- **STREET 1:** 120 PASSAIC AVENUE
- **CITY:** FAIRFIELD
- **STATE:** NJ
- **ZIP:** 07004
- **BUSINESS PHONE:** (973) 244-4500

**MAIL ADDRESS:**
- **STREET 1:** 120 PASSAIC AVENUE
- **CITY:** FAIRFIELD
- **STATE:** NJ
- **ZIP:** 07004

?xml version="1.0" ? krny-20230126

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549** 

_____________________________

**FORM 8-K** 

_____________________________

**CURRENT REPORT** 

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934** 

**Date of Report (Date of earliest event reported): January 26, 2023**

_____________________________

**KEARNY FINANCIAL CORP.** 

**(Exact name of Registrant as Specified in Its Charter)** 

_____________________________

---

| | | |
|:---|:---|:---|
| **Maryland** | **001-37399** | **30-0870244** |
| **(State or Other Jurisdiction**<br>**of Incorporation)** | **(Commission File Number)** | **(IRS Employer**<br>**Identification No.)** |
| **120 Passaic Avenue Fairfield, New Jersey** | | **07004** |
| **(Address of Principal Executive Offices)** | | **(Zip Code)** |

---

**Registrant's Telephone Number, Including Area Code: (973) 244-4500** 

**(Former Name or Former Address, if Changed Since Last Report)** 

_____________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

☐&nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, $0.01 par value | KRNY | The NASDAQ Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02&nbsp;&nbsp;&nbsp;&nbsp;<u>Results of Operation and Financial Condition</u>**

On January 26, 2023, Kearny Financial Corp. (the "Company"), the holding company for Kearny Bank, issued a press release reporting its financial results for the period ended December 31, 2022.

A copy of the press release announcing the results is included as Exhibit 99.1 to this Current Report on Form 8-K and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.

**Item 7.01&nbsp;&nbsp;&nbsp;&nbsp;<u>Regulation FD Disclosure</u>**

On January 26, 2023, the Company released a slide presentation that will be used in upcoming meetings with potential investors and current shareholders of the Company.

A copy of the slide presentation that will be used in the Company's presentation is filed as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference. The information included in this Current Report pursuant to this Item 7.01 is being furnished to, and not filed with, the Securities and Exchange Commission.

**Item 8.01&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Events</u>**

On January 26, 2023, the Company's Board of Directors announced a quarterly cash dividend of $0.11 per share, payable on February 22, 2023 to stockholders of record as of February 8, 2023.

**Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;<u>Financial Statements and Exhibits</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Financial Statements of Business Acquired. Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Pro Forma Financial Information. Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Shell Company Transaction. Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Exhibits.

---

| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| 99.1 | <u>[Press release dated January 26, 2023.](krny-20230126xexx991.htm)</u> |
| 99.2 | <u>[Kearny Financial Corp. investor presentation dated January 26, 2023.](krny12_31x2022investorpr.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

------

**SIGNATURES**

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

---

| | | |
|:---|:---|:---|
| | **KEARNY FINANCIAL CORP**. | **KEARNY FINANCIAL CORP**. |
| Date: January 26, 2023 | By: | /s/ Keith Suchodolski |
|  |  | Keith Suchodolski |
|  |  | Senior Executive Vice President and Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

FOR IMMEDIATE RELEASE

January 26, 2023

For further information contact:

Craig L. Montanaro, President and Chief Executive Officer, or

Keith Suchodolski, Senior Executive Vice President and Chief Financial Officer

Kearny Financial Corp.

(973) 244-4500

**KEARNY FINANCIAL CORP. ANNOUNCES SECOND QUARTER FISCAL 2023 RESULTS**

**AND DECLARATION OF CASH DIVIDEND**

Fairfield, N.J., January 26, 2023 – Kearny Financial Corp. (NASDAQ GS: KRNY) (the "Company"), the holding company of Kearny Bank (the "Bank"), reported net income for the quarter ended December 31, 2022 of $2.0 million, or $0.03 per diluted share, compared to $16.5 million, or $0.25 per diluted share, for the quarter ended September 30, 2022. The decrease in net income and earnings per share for the quarter was largely attributable to a previously announced after-tax loss of $10.8 million on the sale of securities.

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on February 22, 2023 to stockholders of record as of February 8, 2023.

Craig L. Montanaro, President and Chief Executive Officer, commented, "During the quarter ended December 31, 2022, in light of the challenges presented by the prevailing economic and interest rate environment, we completed the restructuring of a portion of our investment securities portfolio and adopted a company-wide operating efficiency initiative targeting a five to ten percent reduction in our annual operating expense. While these initiatives resulted in the recognition of various non-recurring charges, which adversely impacted this quarter's net income, they are a part of our strategy to position ourselves for future earnings improvement, irrespective of the macro-economic environment."

**<u>Balance Sheet</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total assets increased $399.7 million, or 5.1%, to $8.29 billion at December 31, 2022, from $7.89 billion at September 30, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Loans receivable increased $327.8 million, or 5.8%, to $5.98 billion at December 31, 2022, from $5.66 billion at September 30, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Investment securities increased $61.0 million to $1.44 billion, or 17.4% of total assets, at December 31, 2022, from $1.38 billion, or 17.5% of total assets, at September 30, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Deposits decreased $136.9 million, or 2.2%, to $5.97 billion at December 31, 2022, from $6.11 billion at September 30, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Borrowings increased $532.1 million to $1.38 billion, or 16.7% of total assets, at December 31, 2022, from $851.5 million, or 10.8% of total assets, at September 30, 2022.

**<u>Earnings</u>**

**Performance Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Return on average assets was 0.10% for the quarter ended December 31, 2022 compared to 0.85% for the quarter ended September 30, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Return on average equity was 0.90% and 7.38% for the quarters ended December 31, 2022 and September 30, 2022, respectively. Return on average tangible equity was 1.20% and 9.70% for those same comparative periods.

------

**Net Interest Income and Net Interest Margin**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net interest margin contracted 31 basis points to 2.38% for the quarter ended December 31, 2022, from 2.69% for the quarter ended September 30, 2022. The decrease was due largely to increases in the cost and average balance of interest-bearing liabilities, partially offset by increases in the yield and average balance of interest-earning assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net interest income decreased $3.7 million to $44.8 million for the quarter ended December 31, 2022, from $48.5 million for the quarter ended September 30, 2022. Included in net interest income for the quarters ended December 31, 2022 and September 30, 2022, respectively, was purchase accounting accretion of $1.9 million and $1.8 million, and loan prepayment penalty income of $166,000 and $441,000.

**Non-Interest Income**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-interest income decreased $14.4 million to a loss of $8.5 million for the quarter ended December 31, 2022, from income of $5.9 million for the quarter ended September 30, 2022. The decrease was primarily attributable to a loss of $15.2 million on the sale of securities for the quarter ended December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Income from bank owned life insurance decreased $1.9 million for the quarter ended December 31, 2022 as a result of $2.1 million in payouts on life insurance policies in the prior comparative period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Included in other income, during the quarter ended December 31, 2022, was a non-recurring gain of $2.9 million attributable to the sale of a former branch location.

**Non-Interest Expense**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-interest expense increased $662,000 to $32.7 million for the quarter ended December 31, 2022, from $32.0 million for the quarter ended September 30, 2022. The increase was primarily attributable to $757,000 of non-recurring severance expense resulting from a workforce realignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other expense increased $684,000, largely due to a $353,000 increase in the provision for credit losses on unfunded commitments, a $230,000 increase in professional fees and a $147,000 increase in OREO expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Federal deposit insurance premium expense increased $320,000 to $1.2 million for the quarter ended December 31, 2022, largely driven by asset growth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Salaries and benefits expense decreased $427,000 to $19.9 million for the quarter ended December 31, 2022. This decrease was driven by lower salary, payroll tax and incentive compensation expense. Partially offsetting these decreases were non-recurring severance expense resulting from a workforce realignment and an increase in incentive payments tied to loan origination volume.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The efficiency and non-interest expense ratios were 89.93% and 1.62%, respectively, for the quarter ended December 31, 2022, as compared to 58.75% and 1.65%, respectively, for the quarter ended September 30, 2022.

**Income Taxes**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Income tax expense totaled $33,000 for the quarter ended December 31, 2022 compared to $5.3 million for the quarter ended September 30, 2022, resulting in an effective tax rate of 1.7% and 24.1%, respectively. The decrease in the effective tax rate was primarily due to a year-to-date tax rate true-up which resulted from the loss on the sale of securities during the current quarter. The loss lowered the Company's full year projected taxable income and income tax provision.

------

**<u>Asset Quality</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The balance of non-performing assets decreased $14.8 million to $62.6 million, or 0.76% of total assets, at December 31, 2022, from $77.4 million, or 0.98% of total assets, at September 30, 2022. The decrease in non-performing assets was primarily attributable to loans previously on non-accrual returning to accrual status. During the current period, the Company acquired a $13.0 million nonresidential real estate property through foreclosure, which is included in the balance of non-performing assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net charge-offs totaled $407,000, or 0.03% of average loans, on an annualized basis, for the quarter ended December 31, 2022, compared to $115,000, or 0.01% of average loans, on an annualized basis, for the quarter ended September 30, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For the quarter ended December 31, 2022, the Company recorded a provision for credit losses of $1.7 million, compared to $670,000 for the quarter ended September 30, 2022. The provision for the quarter ended December 31, 2022 was largely driven by loan growth, partially offset by a reduction in the qualitative component of the Company's allowance for credit losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The allowance for credit losses was $48.9 million, or 0.81% of total loans, at December 31, 2022, compared to $47.6 million, or 0.84% of total loans, at September 30, 2022.

**<u>Capital</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For the quarter ended December 31, 2022, book value per share increased $0.07, or 0.5%, to $12.95 and tangible book value per share increased $0.05, or 0.5%, to $9.78.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the quarter ended December 31, 2022, the Company repurchased 549,800 shares of common stock at a cost of $5.7 million, or $10.45 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• At December 31, 2022, the Company's tangible equity to tangible assets ratio equaled 8.16% and the regulatory capital ratios of both the Company and the Bank were in excess of the levels required by federal banking regulators to be classified as "well-capitalized" under regulatory guidelines.

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

*In addition, the COVID-19 pandemic has had, and may continue to have, an adverse impact on the Company, its clients and the communities it serves. Given its dynamic nature, it is difficult to predict the full impact of the COVID-19 pandemic on our business.*

Category: Earnings

------

**Linked-Quarter Comparative Financial Analysis**

**Kearny Financial Corp.**

**Consolidated Balance Sheets**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| (Dollars and Shares in Thousands,<br>Except Per Share Data) | **December 31,<br>2022** | **September 30,<br>2022** | **Variance <br>or Change** | **Variance <br>or Change Pct.** |
| **Assets** |  |  |  |  |
| Cash and cash equivalents | $75660 | $96076 | $(20416) | -21.2% |
| Securities available for sale | 1286354 | 1263176 | 23178 | 1.8% |
| Securities held to maturity | 153786 | 115943 | 37843 | 32.6% |
| Loans held-for-sale | 12940 | 12936 | 4 | —% |
| Loans receivable | 5984133 | 5656370 | 327763 | 5.8% |
| &nbsp;&nbsp;&nbsp;Less: allowance for credit losses on loans | (48877) | (47613) | 1264 | 2.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loans receivable | 5935256 | 5608757 | 326499 | 5.8% |
| Premises and equipment | 50953 | 52642 | (1689) | -3.2% |
| Federal Home Loan Bank stock | 69022 | 44957 | 24065 | 53.5% |
| Accrued interest receivable | 27368 | 23817 | 3551 | 14.9% |
| Goodwill | 210895 | 210895 |  | —% |
| Core deposit intangible | 2732 | 2876 | (144) | -5.0% |
| Bank owned life insurance | 289673 | 289690 | (17) | —% |
| Deferred income taxes, net | 51107 | 54278 | (3171) | -5.8% |
| Other real estate owned | 13410 | 178 | 13232 | 7433.7% |
| Other assets | 110162 | 113369 | (3207) | -2.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $8289318 | $7889590 | $399728 | 5.1% |
| **Liabilities** |  |  |  |  |
| Deposits: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-interest-bearing | $650950 | $683406 | $(32456) | -4.7% |
| &nbsp;&nbsp;&nbsp;Interest-bearing | 5320421 | 5424872 | (104451) | -1.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 5971371 | 6108278 | (136907) | -2.2% |
| Borrowings | 1383573 | 851454 | 532119 | 62.5% |
| Advance payments by borrowers for taxes | 17307 | 16555 | 752 | 4.5% |
| Other liabilities | 44427 | 38329 | 6098 | 15.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 7416678 | 7014616 | 402062 | 5.7% |
| **Stockholders' Equity** |  |  |  |  |
| Common stock | 674 | 680 | (6) | -0.9% |
| Paid-in capital | 515332 | 520245 | (4913) | -0.9% |
| Retained earnings | 449489 | 454710 | (5221) | -1.1% |
| Unearned ESOP shares | (23834) | (24321) | 487 | 2.0% |
| Accumulated other comprehensive loss | (69021) | (76340) | 7319 | 9.6% |
| &nbsp;&nbsp;&nbsp;Total stockholders' equity | 872640 | 874974 | (2334) | -0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $8289318 | $7889590 | $399728 | 5.1% |
| **Consolidated capital ratios** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Equity to assets | 10.53% | 11.09% | -0.56% |  |
| &nbsp;&nbsp;Tangible equity to tangible assets <sup>(1)</sup> | 8.16% | 8.61% | -0.45% |  |
| **Share data** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Outstanding shares | 67388 | 67938 | (550) | -0.8% |
| &nbsp;&nbsp;&nbsp;Book value per share | $12.95 | $12.88 | $0.07 | 0.5% |
| &nbsp;&nbsp;Tangible book value per share <sup>(2)</sup> | $9.78 | $9.73 | $0.05 | 0.5% |

---

_________________________

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

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

------

**Kearny Financial Corp.**

**Consolidated Statements of Income**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| (Dollars and Shares in Thousands,<br>Except Per Share Data) | **Three Months Ended** | **Three Months Ended** | **Variance <br>or Change** | **Variance <br>or Change Pct.** |
| (Dollars and Shares in Thousands,<br>Except Per Share Data) | **December 31,<br>2022** | **September 30,<br>2022** | **Variance <br>or Change** | **Variance <br>or Change Pct.** |
| **Interest income** |  |  |  |  |
| &nbsp;&nbsp;Loans | $57996 | $52935 | $5061 | 9.6% |
| &nbsp;&nbsp;Taxable investment securities | 13221 | 10439 | 2782 | 26.7% |
| &nbsp;&nbsp;Tax-exempt investment securities | 219 | 285 | (66) | -23.2% |
| &nbsp;&nbsp;Other interest-earning assets | 1005 | 761 | 244 | 32.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 72441 | 64420 | 8021 | 12.5% |
| **Interest expense** |  |  |  |  |
| &nbsp;&nbsp;Deposits | 18822 | 10869 | 7953 | 73.2% |
| &nbsp;&nbsp;Borrowings | 8836 | 5020 | 3816 | 76.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 27658 | 15889 | 11769 | 74.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net interest income** | 44783 | 48531 | (3748) | -7.7% |
| Provision for credit losses | 1671 | 670 | 1001 | 149.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net interest income after provision for credit losses** | 43112 | 47861 | (4749) | -9.9% |
| **Non-interest income** |  |  |  |  |
| &nbsp;&nbsp;Fees and service charges | 734 | 763 | (29) | -3.8% |
| &nbsp;&nbsp;Loss on sale and call of securities | (15227) |  | (15227) | —% |
| &nbsp;&nbsp;Gain on sale of loans | 134 | 395 | (261) | -66.1% |
| &nbsp;&nbsp;Income from bank owned life insurance | 1761 | 3698 | (1937) | -52.4% |
| &nbsp;&nbsp;Electronic banking fees and charges | 397 | 506 | (109) | -21.5% |
| &nbsp;&nbsp;Other income | 3723 | 555 | 3168 | 570.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-interest income | (8478) | 5917 | (14395) | -243.3% |
| **Non-interest expense** |  |  |  |  |
| &nbsp;&nbsp;Salaries and employee benefits | 19921 | 20348 | (427) | -2.1% |
| &nbsp;&nbsp;Net occupancy expense of premises | 2987 | 3090 | (103) | -3.3% |
| &nbsp;&nbsp;Equipment and systems | 3867 | 3662 | 205 | 5.6% |
| &nbsp;&nbsp;Advertising and marketing | 731 | 747 | (16) | -2.1% |
| &nbsp;&nbsp;Federal deposit insurance premium | 1226 | 906 | 320 | 35.3% |
| &nbsp;&nbsp;Directors' compensation | 339 | 340 | (1) | -0.3% |
| &nbsp;&nbsp;Other expense | 3579 | 2895 | 684 | 23.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-interest expense | 32650 | 31988 | 662 | 2.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Income before income taxes** | 1984 | 21790 | (19806) | -90.9% |
| &nbsp;&nbsp;Income taxes | 33 | 5255 | (5222) | -99.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net income** | $1951 | $16535 | $(14584) | -88.2% |
| **Net income per common share (EPS)** |  |  |  |  |
| &nbsp;&nbsp;Basic | $0.03 | $0.25 | $(0.22) |  |
| &nbsp;&nbsp;Diluted | $0.03 | $0.25 | $(0.22) |  |
| **Dividends declared** |  |  |  |  |
| &nbsp;&nbsp;Cash dividends declared per common share | $0.11 | $0.11 | $— |  |
| &nbsp;&nbsp;Cash dividends declared | $7172 | $7276 | $(104) |  |
| &nbsp;&nbsp;Dividend payout ratio | 367.6% | 44.0% | 323.6% |  |
| **Weighted average number of common shares outstanding** |  |  |  |  |
| &nbsp;&nbsp;Basic | 65030 | 65737 | (707) |  |
| &nbsp;&nbsp;Diluted | 65038 | 65756 | (718) |  |

---

------

**Kearny Financial Corp.**

**Average Balance Sheet Data**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| (Dollars in Thousands) | **Three Months Ended** | **Three Months Ended** | **Variance <br>or Change** | **Variance <br>or Change Pct.** |
| (Dollars in Thousands) | **December 31,<br>2022** | **September 30,<br>2022** | **Variance <br>or Change** | **Variance <br>or Change Pct.** |
| **Assets** |  |  |  |  |
| Interest-earning assets: |  |  |  |  |
| &nbsp;&nbsp;Loans receivable, including loans held for sale | $5839903 | $5553996 | $285907 | 5.1% |
| &nbsp;&nbsp;Taxable investment securities | 1527578 | 1516974 | 10604 | 0.7% |
| &nbsp;&nbsp;Tax-exempt investment securities | 37917 | 48973 | (11056) | -22.6% |
| &nbsp;&nbsp;Other interest-earning assets | 114175 | 88038 | 26137 | 29.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets | 7519573 | 7207981 | 311592 | 4.3% |
| Non-interest-earning assets | 550519 | 570225 | (19706) | -3.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $8070092 | $7778206 | $291886 | 3.8% |
| **Liabilities and Stockholders' Equity** |  |  |  |  |
| Interest-bearing liabilities: |  |  |  |  |
| &nbsp;&nbsp;Deposits: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing demand | $2359977 | $2354340 | $5637 | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings | 931584 | 1019343 | (87759) | -8.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit | 2192722 | 2014922 | 177800 | 8.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 5484283 | 5388605 | 95678 | 1.8% |
| &nbsp;&nbsp;Borrowings: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal Home Loan Bank advances | 997148 | 642399 | 354749 | 55.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other borrowings |  | 127456 | (127456) | -100.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total borrowings | 997148 | 769855 | 227293 | 29.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 6481431 | 6158460 | 322971 | 5.2% |
| Non-interest-bearing liabilities: |  |  |  |  |
| &nbsp;&nbsp;Non-interest-bearing deposits | 666846 | 667624 | (778) | -0.1% |
| &nbsp;&nbsp;Other non-interest-bearing liabilities | 56721 | 56431 | 290 | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-interest-bearing liabilities | 723567 | 724055 | (488) | -0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 7204998 | 6882515 | 322483 | 4.7% |
| Stockholders' equity | 865094 | 895691 | (30597) | -3.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $8070092 | $7778206 | $291886 | 3.8% |
| Average interest-earning assets to average interest-bearing liabilities | 116.02% | 117.04% | -1.02% | -0.9% |

---

------

**Kearny Financial Corp.**

**Performance Ratio Highlights**

**(Unaudited)**

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Variance <br>or Change** |
| | **December 31,<br>2022** | **September 30,<br>2022** | **Variance <br>or Change** |
| **Average yield on interest-earning assets:** | | | |
| &nbsp;&nbsp;Loans receivable, including loans held for sale | 3.97% | 3.81% | 0.16% |
| &nbsp;&nbsp;Taxable investment securities | 3.46% | 2.75% | 0.71% |
| &nbsp;&nbsp;Tax-exempt investment securities <sup>(1)</sup> | 2.32% | 2.33% | -0.01% |
| &nbsp;&nbsp;Other interest-earning assets | 3.52% | 3.46% | 0.06% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets | 3.85% | 3.57% | 0.28% |
| **Average cost of interest-bearing liabilities:** |  |  |  |
| &nbsp;&nbsp;Deposits: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing demand | 1.63% | 0.92% | 0.71% |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings | 0.41% | 0.23% | 0.18% |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit | 1.50% | 0.97% | 0.53% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 1.37% | 0.81% | 0.56% |
| &nbsp;&nbsp;Borrowings: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal Home Loan Bank advances | 3.54% | 2.68% | 0.86% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other borrowings | —% | 2.26% | -2.26% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total borrowings | 3.54% | 2.61% | 0.93% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 1.71% | 1.03% | 0.68% |
| &nbsp;&nbsp;Interest rate spread <sup>(2)</sup> | 2.14% | 2.54% | -0.40% |
| &nbsp;&nbsp;Net interest margin <sup>(3)</sup> | 2.38% | 2.69% | -0.31% |
| &nbsp;&nbsp;Non-interest income to average assets (annualized) | -0.42% | 0.30% | -0.72% |
| &nbsp;&nbsp;Non-interest expense to average assets (annualized) | 1.62% | 1.65% | -0.03% |
| &nbsp;&nbsp;Efficiency ratio <sup>(4)</sup> | 89.93% | 58.75% | 31.18% |
| &nbsp;&nbsp;Return on average assets (annualized) | 0.10% | 0.85% | -0.75% |
| &nbsp;&nbsp;Return on average equity (annualized) | 0.90% | 7.38% | -6.48% |
| &nbsp;&nbsp;Return on average tangible equity (annualized) <sup>(5)</sup> | 1.20% | 9.70% | -8.50% |

---

_________________________

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

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

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

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

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

------

**Five-Quarter Financial Trend Analysis**

**Kearny Financial Corp.**

**Consolidated Balance Sheets**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (Dollars and Shares in Thousands,<br>Except Per Share Data) | **December 31,<br>2022** | **September 30,<br>2022** | **June 30,<br>2022** | **March 31,<br>2022** | **December 31,<br>2021** |
|  | **(Unaudited)** | **(Unaudited)** | **(Audited)** | **(Unaudited)** | **(Unaudited)** |
| **Assets** |  |  |  |  |  |
| Cash and cash equivalents | $75660 | $96076 | $101615 | $62379 | $60452 |
| Securities available for sale | 1286354 | 1263176 | 1344093 | 1526086 | 1591066 |
| Securities held to maturity | 153786 | 115943 | 118291 | 121853 | 53142 |
| Loans held-for-sale | 12940 | 12936 | 28874 | 2822 | 12549 |
| Loans receivable | 5984133 | 5656370 | 5417845 | 5003201 | 4826404 |
| &nbsp;&nbsp;Less: allowance for credit losses on loans | (48877) | (47613) | (47058) | (43860) | (48216) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loans receivable | 5935256 | 5608757 | 5370787 | 4959341 | 4778188 |
| Premises and equipment | 50953 | 52642 | 53281 | 53727 | 54067 |
| Federal Home Loan Bank stock | 69022 | 44957 | 47144 | 30997 | 36622 |
| Accrued interest receivable | 27368 | 23817 | 20466 | 19517 | 18495 |
| Goodwill | 210895 | 210895 | 210895 | 210895 | 210895 |
| Core deposit intangible | 2732 | 2876 | 3020 | 3166 | 3344 |
| Bank owned life insurance | 289673 | 289690 | 289177 | 287644 | 286433 |
| Deferred income taxes, net | 51107 | 54278 | 49350 | 34349 | 25709 |
| Other real estate owned | 13410 | 178 | 178 | 401 | 658 |
| Other assets | 110162 | 113369 | 82712 | 76714 | 54603 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $8289318 | $7889590 | $7719883 | $7389891 | $7186223 |
| **Liabilities** |  |  |  |  |  |
| Deposits: |  |  |  |  |  |
| &nbsp;&nbsp;Non-interest-bearing | $650950 | $683406 | $653899 | $621954 | $604805 |
| &nbsp;&nbsp;Interest-bearing | 5320421 | 5424872 | 5208357 | 4906708 | 4849220 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 5971371 | 6108278 | 5862256 | 5528662 | 5454025 |
| Borrowings | 1383573 | 851454 | 901337 | 851220 | 686105 |
| Advance payments by borrowers for taxes | 17307 | 16555 | 16746 | 16979 | 16772 |
| Other liabilities | 44427 | 38329 | 45544 | 37861 | 33851 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 7416678 | 7014616 | 6825883 | 6434722 | 6190753 |
| **Stockholders' Equity** |  |  |  |  |  |
| Common stock | 674 | 680 | 687 | 714 | 735 |
| Paid-in capital | 515332 | 520245 | 528396 | 561176 | 587392 |
| Retained earnings | 449489 | 454710 | 445451 | 441522 | 431549 |
| Unearned ESOP shares | (23834) | (24321) | (24807) | (25294) | (25780) |
| Accumulated other comprehensive (loss) income | (69021) | (76340) | (55727) | (22949) | 1574 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 872640 | 874974 | 894000 | 955169 | 995470 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $8289318 | $7889590 | $7719883 | $7389891 | $7186223 |
| **Consolidated capital ratios** |  |  |  |  |  |
| &nbsp;&nbsp;Equity to assets | 10.53% | 11.09% | 11.58% | 12.93% | 13.85% |
| &nbsp;&nbsp;Tangible equity to tangible assets <sup>(1)</sup> | 8.16% | 8.61% | 9.06% | 10.33% | 11.21% |
| **Share data** |  |  |  |  |  |
| &nbsp;&nbsp;Outstanding shares | 67388 | 67938 | 68666 | 71424 | 73453 |
| &nbsp;&nbsp;Book value per share | $12.95 | $12.88 | $13.02 | $13.37 | $13.55 |
| &nbsp;&nbsp;Tangible book value per share <sup>(2)</sup> | $9.78 | $9.73 | $9.90 | $10.38 | $10.64 |

---

_________________________

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

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

------

**Kearny Financial Corp.**

**Supplemental Balance Sheet Highlights**

**(Unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (Dollars in Thousands) | **December 31,<br>2022** | **September 30,<br>2022** | **June 30,<br>2022** | **March 31,<br>2022** | **December 31,<br>2021** |
| **Loan portfolio composition:** |  |  |  |  |  |
| &nbsp;&nbsp;Commercial loans: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Multi-family mortgage | $2851721 | $2570297 | $2409090 | $2076003 | $2007431 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonresidential mortgage | 1017341 | 1040688 | 1019838 | 1085988 | 1026447 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial business | 177530 | 186361 | 176807 | 169551 | 180429 |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction | 186663 | 166052 | 140131 | 121137 | 110703 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total commercial loans | 4233255 | 3963398 | 3745866 | 3452679 | 3325010 |
| &nbsp;&nbsp;One- to four-family residential mortgage | 1719514 | 1666730 | 1645816 | 1527980 | 1477267 |
| &nbsp;&nbsp;Consumer loans: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Home equity loans | 45690 | 43269 | 42028 | 41501 | 43934 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other consumer | 2648 | 2869 | 2866 | 2755 | 3040 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total consumer loans | 48338 | 46138 | 44894 | 44256 | 46974 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans, excluding yield adjustments | 6001107 | 5676266 | 5436576 | 5024915 | 4849251 |
| &nbsp;&nbsp;Unaccreted yield adjustments | (16974) | (19896) | (18731) | (21714) | (22847) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans receivable, net of yield adjustments | 5984133 | 5656370 | 5417845 | 5003201 | 4826404 |
| &nbsp;&nbsp;Less: allowance for credit losses on loans | (48877) | (47613) | (47058) | (43860) | (48216) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loans receivable | $5935256 | $5608757 | $5370787 | $4959341 | $4778188 |
| **Asset quality:** |  |  |  |  |  |
| &nbsp;&nbsp;Nonperforming assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accruing loans - 90 days and over past due | $— | $— | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual loans | 40549 | 68574 | 70321 | 80595 | 72138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total nonperforming loans | 40549 | 68574 | 70321 | 80595 | 72138 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual loans held-for-sale | 8650 | 8650 | 21745 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other real estate owned | 13410 | 178 | 178 | 401 | 658 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total nonperforming assets | $62609 | $77402 | $92244 | $80996 | $72796 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming loans (% total loans) | 0.68% | 1.21% | 1.30% | 1.61% | 1.49% |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming assets (% total assets) | 0.76% | 0.98% | 1.19% | 1.10% | 1.01% |
| &nbsp;&nbsp;Classified loans | $86069 | $92610 | $94555 | $163621 | $162174 |
| &nbsp;&nbsp;Allowance for credit losses on loans (ACL): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;ACL to total loans | 0.81% | 0.84% | 0.87% | 0.87% | 0.99% |
| &nbsp;&nbsp;&nbsp;&nbsp;ACL to nonperforming loans | 120.54% | 69.43% | 66.92% | 54.42% | 66.84% |
| &nbsp;&nbsp;&nbsp;&nbsp;Net charge-offs | $407 | $115 | $1024 | $436 | $1149 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average net charge-off rate (annualized) | 0.03% | 0.01% | 0.08% | 0.04% | 0.10% |
| **Funding composition:** |  |  |  |  |  |
| &nbsp;&nbsp;Deposits: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-interest-bearing deposits | $650950 | $683406 | $653899 | $621954 | $604805 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing demand | 2316485 | 2382411 | 2265597 | 2154488 | 2106693 |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings | 901514 | 982916 | 1053198 | 1088974 | 1087740 |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit (retail) | 1354907 | 1263124 | 1116035 | 1122228 | 1184530 |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit (brokered and listing service) | 747515 | 796421 | 773527 | 541018 | 470257 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing deposits | 5320421 | 5424872 | 5208357 | 4906708 | 4849220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 5971371 | 6108278 | 5862256 | 5528662 | 5454025 |
| &nbsp;&nbsp;Borrowings: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal Home Loan Bank advances | 1256573 | 796454 | 651337 | 541220 | 666105 |
| &nbsp;&nbsp;&nbsp;&nbsp;Overnight borrowings | 127000 | 55000 | 250000 | 310000 | 20000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total borrowings | 1383573 | 851454 | 901337 | 851220 | 686105 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total funding | $7354944 | $6959732 | $6763593 | $6379882 | $6140130 |
| &nbsp;&nbsp;Loans as a % of deposits | 99.6% | 92.0% | 92.1% | 89.8% | 87.8% |
| &nbsp;&nbsp;Deposits as a % of total funding | 81.2% | 87.8% | 86.7% | 86.7% | 88.8% |
| &nbsp;&nbsp;Borrowings as a % of total funding | 18.8% | 12.2% | 13.3% | 13.3% | 11.2% |

---

------

**Kearny Financial Corp.**

**Consolidated Statements of Income**

**(Unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|<br>(Dollars and Shares in Thousands,<br>Except Per Share Data) | **December 31,<br>2022** | **September 30,<br>2022** | **June 30,<br>2022** | **March 31,<br>2022** | **December 31,<br>2021** |
| **Interest income** |  |  |  |  |  |
| &nbsp;&nbsp;Loans | $57996 | $52935 | $48869 | $45846 | $47575 |
| &nbsp;&nbsp;Taxable investment securities | 13221 | 10439 | 8915 | 8024 | 7595 |
| &nbsp;&nbsp;Tax-exempt investment securities | 219 | 285 | 297 | 316 | 327 |
| &nbsp;&nbsp;Other interest-earning assets | 1005 | 761 | 472 | 415 | 415 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 72441 | 64420 | 58553 | 54601 | 55912 |
| **Interest expense** |  |  |  |  |  |
| &nbsp;&nbsp;Deposits | 18822 | 10869 | 3915 | 3565 | 3663 |
| &nbsp;&nbsp;Borrowings | 8836 | 5020 | 4039 | 3309 | 3562 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 27658 | 15889 | 7954 | 6874 | 7225 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net interest income** | 44783 | 48531 | 50599 | 47727 | 48687 |
| Provision for (reversal of) credit losses | 1671 | 670 | 4222 | (3920) | (2420) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net interest income after provision for (reversal of) credit losses** | 43112 | 47861 | 46377 | 51647 | 51107 |
| **Non-interest income** |  |  |  |  |  |
| &nbsp;&nbsp;Fees and service charges | 734 | 763 | 658 | 617 | 698 |
| &nbsp;&nbsp;(Loss) gain on sale and call of securities | (15227) |  | (563) | 3 |  |
| &nbsp;&nbsp;Gain on sale of loans | 134 | 395 | 187 | 376 | 970 |
| &nbsp;&nbsp;(Loss) gain on sale of other real estate owned |  |  | (9) | 14 |  |
| &nbsp;&nbsp;Income from bank owned life insurance | 1761 | 3698 | 1533 | 1511 | 1562 |
| &nbsp;&nbsp;Electronic banking fees and charges | 397 | 506 | 366 | 432 | 421 |
| &nbsp;&nbsp;Other income | 3723 | 555 | 638 | 238 | 482 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-interest income | (8478) | 5917 | 2810 | 3191 | 4133 |
| **Non-interest expense** |  |  |  |  |  |
| &nbsp;&nbsp;Salaries and employee benefits | 19921 | 20348 | 20367 | 19184 | 18096 |
| &nbsp;&nbsp;Net occupancy expense of premises | 2987 | 3090 | 3188 | 3223 | 3156 |
| &nbsp;&nbsp;Equipment and systems | 3867 | 3662 | 4516 | 3822 | 3723 |
| &nbsp;&nbsp;Advertising and marketing | 731 | 747 | 703 | 516 | 448 |
| &nbsp;&nbsp;Federal deposit insurance premium | 1226 | 906 | 762 | 480 | 721 |
| &nbsp;&nbsp;Directors' compensation | 339 | 340 | 340 | 340 | 649 |
| &nbsp;&nbsp;Other expense | 3579 | 2895 | 3736 | 3058 | 2877 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-interest expense | 32650 | 31988 | 33612 | 30623 | 29670 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Income before income taxes** | 1984 | 21790 | 15575 | 24215 | 25570 |
| &nbsp;&nbsp;Income taxes | 33 | 5255 | 4205 | 6522 | 6801 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net income** | $1951 | $16535 | $11370 | $17693 | $18769 |
| **Net income per common share (EPS)** |  |  |  |  |  |
| &nbsp;&nbsp;Basic | $0.03 | $0.25 | $0.17 | $0.25 | $0.26 |
| &nbsp;&nbsp;Diluted | $0.03 | $0.25 | $0.17 | $0.25 | $0.26 |
| **Dividends declared** |  |  |  |  |  |
| &nbsp;&nbsp;Cash dividends declared per common share | $0.11 | $0.11 | $0.11 | $0.11 | $0.11 |
| &nbsp;&nbsp;Cash dividends declared | $7172 | $7276 | $7441 | $7720 | $7921 |
| &nbsp;&nbsp;Dividend payout ratio | 367.6% | 44.0% | 65.4% | 43.6% | 42.2% |
| **Weighted average number of common shares outstanding** |  |  |  |  |  |
| &nbsp;&nbsp;Basic | 65030 | 65737 | 67240 | 69790 | 72011 |
| &nbsp;&nbsp;Diluted | 65038 | 65756 | 67276 | 69817 | 72037 |

---

------

**Kearny Financial Corp.**

**Average Balance Sheet Data**

**(Unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|<br>(Dollars in Thousands) | **December 31,<br>2022** | **September 30,<br>2022** | **June 30,<br>2022** | **March 31,<br>2022** | **December 31,<br>2021** |
| **Assets** |  |  |  |  |  |
| Interest-earning assets: |  |  |  |  |  |
| &nbsp;&nbsp;Loans receivable, including loans held-for-sale | $5839903 | $5553996 | $5181983 | $4850236 | $4822959 |
| &nbsp;&nbsp;Taxable investment securities | 1527578 | 1516974 | 1608372 | 1620996 | 1610395 |
| &nbsp;&nbsp;Tax-exempt investment securities | 37917 | 48973 | 51672 | 55390 | 57686 |
| &nbsp;&nbsp;Other interest-earning assets | 114175 | 88038 | 87990 | 79644 | 77811 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets | 7519573 | 7207981 | 6930017 | 6606266 | 6568851 |
| Non-interest-earning assets | 550519 | 570225 | 564734 | 601684 | 611390 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $8070092 | $7778206 | $7494751 | $7207950 | $7180241 |
| **Liabilities and Stockholders' Equity** |  |  |  |  |  |
| Interest-bearing liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;Deposits: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing demand | $2359977 | $2354340 | $2155946 | $2133977 | $2027021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings | 931584 | 1019343 | 1077631 | 1088351 | 1086903 |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit | 2192722 | 2014922 | 1701725 | 1650048 | 1693423 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 5484283 | 5388605 | 4935302 | 4872376 | 4807347 |
| &nbsp;&nbsp;Borrowings: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal Home Loan Bank advances | 997148 | 642399 | 752579 | 632811 | 666029 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other borrowings |  | 127456 | 185901 | 51667 | 26033 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total borrowings | 997148 | 769855 | 938480 | 684478 | 692062 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 6481431 | 6158460 | 5873782 | 5556854 | 5499409 |
| Non-interest-bearing liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;Non-interest-bearing deposits | 666846 | 667624 | 640200 | 624152 | 624200 |
| &nbsp;&nbsp;Other non-interest-bearing liabilities | 56721 | 56431 | 56636 | 49455 | 50870 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-interest-bearing liabilities | 723567 | 724055 | 696836 | 673607 | 675070 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 7204998 | 6882515 | 6570618 | 6230461 | 6174479 |
| Stockholders' equity | 865094 | 895691 | 924133 | 977489 | 1005762 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $8070092 | $7778206 | $7494751 | $7207950 | $7180241 |
| Average interest-earning assets to average interest-bearing liabilities | 116.02% | 117.04% | 117.98% | 118.89% | 119.45% |

---

------

**Kearny Financial Corp.**

**Performance Ratio Highlights**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **December 31,<br>2022** | **September 30,<br>2022** | **June 30,<br>2022** | **March 31,<br>2022** | **December 31,<br>2021** |
| **Average yield on interest-earning assets:** | | | | | |
| &nbsp;&nbsp;Loans receivable, including loans held-for-sale | 3.97% | 3.81% | 3.77% | 3.78% | 3.95% |
| &nbsp;&nbsp;Taxable investment securities | 3.46% | 2.75% | 2.22% | 1.98% | 1.89% |
| &nbsp;&nbsp;Tax-exempt investment securities <sup>(1)</sup> | 2.32% | 2.33% | 2.30% | 2.28% | 2.26% |
| &nbsp;&nbsp;Other interest-earning assets | 3.52% | 3.46% | 2.15% | 2.08% | 2.13% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets | 3.85% | 3.57% | 3.38% | 3.31% | 3.40% |
| **Average cost of interest-bearing liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;Deposits: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing demand | 1.63% | 0.92% | 0.31% | 0.22% | 0.22% |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings | 0.41% | 0.23% | 0.11% | 0.10% | 0.11% |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit | 1.50% | 0.97% | 0.46% | 0.52% | 0.53% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 1.37% | 0.81% | 0.32% | 0.29% | 0.30% |
| &nbsp;&nbsp;Borrowings: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal Home Loan Bank advances | 3.54% | 2.68% | 1.96% | 2.08% | 2.14% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other borrowings | —% | 2.26% | 0.77% | 0.17% | 0.09% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total borrowings | 3.54% | 2.61% | 1.72% | 1.93% | 2.06% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 1.71% | 1.03% | 0.54% | 0.49% | 0.53% |
| &nbsp;&nbsp;Interest rate spread <sup>(2)</sup> | 2.14% | 2.54% | 2.84% | 2.82% | 2.87% |
| &nbsp;&nbsp;Net interest margin <sup>(3)</sup> | 2.38% | 2.69% | 2.92% | 2.89% | 2.96% |
| &nbsp;&nbsp;Non-interest income to average assets (annualized) | -0.42% | 0.30% | 0.15% | 0.18% | 0.23% |
| &nbsp;&nbsp;Non-interest expense to average assets (annualized) | 1.62% | 1.65% | 1.79% | 1.70% | 1.65% |
| &nbsp;&nbsp;Efficiency ratio <sup>(4)</sup> | 89.93% | 58.75% | 62.93% | 60.14% | 56.17% |
| &nbsp;&nbsp;Return on average assets (annualized) | 0.10% | 0.85% | 0.61% | 0.98% | 1.05% |
| &nbsp;&nbsp;Return on average equity (annualized) | 0.90% | 7.38% | 4.92% | 7.24% | 7.46% |
| &nbsp;&nbsp;Return on average tangible equity (annualized) <sup>(5)</sup> | 1.20% | 9.70% | 6.40% | 9.27% | 9.49% |

---

_________________________

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

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

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

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

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

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

**Kearny Financial Corp.**

**Reconciliation of GAAP to Non-GAAP**

**(Unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|<br>(Dollars and Shares in Thousands,<br>Except Per Share Data) | **December 31,<br>2022** | **September 30,<br>2022** | **June 30,<br>2022** | **March 31,<br>2022** | **December 31,<br>2021** |
| **Adjusted net income:** |  |  |  |  |  |
| &nbsp;&nbsp;Net income (GAAP) | $1951 | $16535 | $11370 | $17693 | $18769 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-recurring transactions - net of tax: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net effect of sale and call of securities | 10811 |  | 400 | (2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net effect of sale of other assets | (2081) |  |  |  | (251) |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance expense from workforce realignment | 538 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Branch consolidation expenses and impairment charges |  |  |  |  | 132 |
| &nbsp;&nbsp;Adjusted net income | $11219 | $16535 | $12338 | $17691 | $18650 |
| **Calculation of pre-tax, pre-provision net revenue:** |  |  |  |  |  |
| &nbsp;&nbsp;Net income (GAAP) | $1951 | $16535 | $11370 | $17693 | $18769 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to net income (GAAP): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes | 33 | 5255 | 4205 | 6522 | 6801 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for (reversal of) credit losses | 1671 | 670 | 4222 | (3920) | (2420) |
| &nbsp;&nbsp;Pre-tax, pre-provision net revenue (non-GAAP) | $3655 | $22460 | $19797 | $20295 | $23150 |
| **Adjusted earnings per share:** |  |  |  |  |  |
| &nbsp;&nbsp;Weighted average common shares - basic | 65030 | 65737 | 67240 | 69790 | 72011 |
| &nbsp;&nbsp;Weighted average common shares - diluted | 65038 | 65756 | 67276 | 69817 | 72037 |
| &nbsp;&nbsp;Earnings per share - basic (GAAP) | $0.03 | $0.25 | $0.17 | $0.25 | $0.26 |
| &nbsp;&nbsp;Earnings per share - diluted (GAAP) | $0.03 | $0.25 | $0.17 | $0.25 | $0.26 |
| &nbsp;&nbsp;Adjusted earnings per share - basic (non-GAAP) | $0.17 | $0.25 | $0.18 | $0.25 | $0.26 |
| &nbsp;&nbsp;Adjusted earnings per share - diluted (non-GAAP) | $0.17 | $0.25 | $0.18 | $0.25 | $0.26 |
| **Pre-tax, pre-provision net revenue per share:** |  |  |  |  |  |
| &nbsp;&nbsp;Pre-tax, pre-provision net revenue per share - basic&nbsp;&nbsp;&nbsp;&nbsp;(non-GAAP) | $0.06 | $0.34 | $0.29 | $0.29 | $0.32 |
| &nbsp;&nbsp;Pre-tax, pre-provision net revenue per share - diluted&nbsp;&nbsp;&nbsp;&nbsp;(non-GAAP) | $0.06 | $0.34 | $0.29 | $0.29 | $0.32 |
| **Adjusted return on average assets:** |  |  |  |  |  |
| &nbsp;&nbsp;Total average assets | $8070092 | $7778206 | $7494751 | $7207950 | $7180241 |
| &nbsp;&nbsp;Return on average assets (GAAP) | 0.10% | 0.85% | 0.61% | 0.98% | 1.05% |
| &nbsp;&nbsp;Adjusted return on average assets (non-GAAP) | 0.56% | 0.85% | 0.66% | 0.98% | 1.04% |
| **Adjusted return on average equity:** |  |  |  |  |  |
| &nbsp;&nbsp;Total average equity | $865094 | $895691 | $924133 | $977489 | $1005762 |
| &nbsp;&nbsp;Return on average equity (GAAP) | 0.90% | 7.38% | 4.92% | 7.24% | 7.46% |
| &nbsp;&nbsp;Adjusted return on average equity (non-GAAP) | 5.19% | 7.38% | 5.34% | 7.24% | 7.42% |

---

------

**Kearny Financial Corp.**

**Reconciliation of GAAP to Non-GAAP**

**(Unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|<br>(Dollars and Shares in Thousands,<br>Except Per Share Data) | **December 31,<br>2022** | **September 30,<br>2022** | **June 30,<br>2022** | **March 31,<br>2022** | **December 31,<br>2021** |
| **Adjusted return on average tangible equity:** |  |  |  |  |  |
| Total average equity | $865094 | $895691 | $924133 | $977489 | $1005762 |
| Less: average goodwill | (210895) | (210895) | (210895) | (210895) | (210895) |
| Less: average other intangible assets | (2826) | (2971) | (3116) | (3282) | (3462) |
| Total average tangible equity | $651373 | $681825 | $710122 | $763312 | $791405 |
| Return on average tangible equity (non-GAAP) | 1.20% | 9.70% | 6.40% | 9.27% | 9.49% |
| Adjusted return on average tangible equity (non-GAAP) | 6.89% | 9.70% | 6.95% | 9.27% | 9.43% |
| **Adjusted non-interest expense ratio:** |  |  |  |  |  |
| Non-interest expense (GAAP) | $32650 | $31988 | $33612 | $30623 | $29670 |
| Non-recurring transactions: |  |  |  |  |  |
| Severance expense from workforce realignment | (757) |  |  |  |  |
| Early contract termination |  |  | (800) |  |  |
| Branch consolidation expenses and impairment charges |  |  |  |  | (187) |
| Non-interest expense (non-GAAP) | $31893 | $31988 | $32812 | $30623 | $29483 |
| Non-interest expense ratio (GAAP) | 1.62% | 1.65% | 1.79% | 1.70% | 1.65% |
| Adjusted non-interest expense ratio (non-GAAP) | 1.58% | 1.65% | 1.75% | 1.70% | 1.64% |
| **Adjusted efficiency ratio:** |  |  |  |  |  |
| Non-interest expense (non-GAAP) | $31893 | $31988 | $32812 | $30623 | $29483 |
| Net interest income (GAAP) | $44783 | $48531 | $50599 | $47727 | $48687 |
| Total non-interest income (GAAP) | (8478) | 5917 | 2810 | 3191 | 4133 |
| Non-recurring transactions: |  |  |  |  |  |
| Net effect of sale and call of securities | 15227 |  | 563 | (3) |  |
| Net effect of sale of other assets | (2931) |  |  |  | (356) |
| Total revenue (non-GAAP) | $48601 | $54448 | $53972 | $50915 | $52464 |
| Efficiency ratio (GAAP) | 89.93% | 58.75% | 62.93% | 60.14% | 56.17% |
| Adjusted efficiency ratio (non-GAAP) | 65.62% | 58.75% | 60.79% | 60.15% | 56.20% |

---

## Exhibit 99.2

![](krny12_31x2022investorpr001.jpg)

JANUARY 26, 2023 I N V E S T O R P R E S E N T A T I O N S E C O N D Q U A R T E R F I S C A L 2 0 2 3 Exhibit 99.2

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![](krny12_31x2022investorpr002.jpg)

Forward Looking Statements 2

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![](krny12_31x2022investorpr003.jpg)

Kearny Financial Corp. NASDAQ: KRNY Market Cap: $706.9 million1 Founded in 1884 Top 10 New Jersey-based financial institution by assets 45 full-service branches2 in 12 counties throughout New Jersey and New York City Active acquirer, having completed 7 whole-bank acquisitions since 1999 1 As of January 23, 2023 2 As of December 31, 2022 Source: S&P Global Market Intelligence & Company Filings 3

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![](krny12_31x2022investorpr004.jpg)

138 Years of Serving our Communities and Clients 44

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![](krny12_31x2022investorpr005.jpg)

Financial Highlights Source: Company Filings 55 Profitability and Performance Ratios ($ in millions, except per share data) 2Q23 1Q23 2Q22 Net Income $2.0 $16.5 $18.8 Earnings per share $0.03 $0.25 $0.26 Net Interest Income $44.8 $48.5 $48.7 Net Interest Margin 2.38% 2.69% 2.96% Return on Average Assets 0.10% 0.85% 1.05% Return on Average Equity 0.90% 7.38% 7.46% Return on Average Tangible Equity 1.20% 9.70% 9.49% GAAP Reported During the quarter ended December 31, 2022: Completed the restructuring of a portion of our investment securities portfolio Adopted a Company-wide operating efficiency initiative targeting a 5-10% reduction in annual operating expense These initiatives resulted in various non-recurring charges, which adversely impacted this quarter's net income

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![](krny12_31x2022investorpr006.jpg)

Equity & Capitalization Equity Capitalization Level 11.21% 10.33% 9.06% 8.61% 8.16% 13.85% 12.93% 11.58% 11.09% 10.53% 2Q22 3Q22 4Q22 1Q23 2Q23 Tangible Common Equity / Tangible Assets Equity / Assets 1 Kearny Regulatory Capital Ratios as of December 31, 2022 are preliminary. 2 S&P U.S. Small Cap Banks Index comprised of 255 constituents, based on September 30, 2022 results. Source: Company Filings 66 9.18% 13.14% 13.14% 13.78% 9.49% 11.27% 11.50% 14.00% Tier 1 Leverage Common Equity Tier 1 Tier 1 Risk-Based Capital Total Risk-Based Capital KRNY S&P US Small Cap Banks Regulatory Capital Ratios1,2

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![](krny12_31x2022investorpr007.jpg)

Earnings Performance Earnings per Share Net Income ($ millions) Source: Company Filings Return on Average Assets (ROAA) Return on Average Tangible Equity (ROATE) 77 $0.26 $0.25 $0.03 2Q22 1Q23 2Q23 $18.8 $16.5 $2.0 2Q22 1Q23 2Q23 1.05% 0.85% 0.10% 2Q22 1Q23 2Q23 7.46% 7.38% 0.90% 2Q22 1Q23 2Q23

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![](krny12_31x2022investorpr008.jpg)

Deposits Deposit Composition1 Deposit Growth $1,185 $1,122 $1,116 $1,263 $1,355 $469 $541 $773 $797 $747 $1,088 $1,089 $1,053 $983 $902 $2,107 $2,155 $2,266 $2,382 $2,316 $605 $622 $654 $683 $651 $5,454 $5,529 $5,862 $6,108 $5,971 2Q22 3Q22 4Q22 1Q23 2Q23 ($ millions) As of December 31, 2022, the Bank operates 45 full-service branches Consolidated 16 branches over a four-year period QTD Cost of Deposits 1.37% 22.7% 12.5% 15.1% 38.8% 10.9% Retail CDs Wholesale CDs Savings Interest bearing DDA Noninterest bearing DDA 1 For the quarter ended December 31, 2022. Source: S&P Global Market Intelligence & Company Filings 88

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![](krny12_31x2022investorpr009.jpg)

Investment Securities Securities Composition1 1 For the quarter ended December 31, 2022. 2 Comprised entirely of securitized federal education loans with 97% U.S. government guarantees. Source: S&P Global Market Intelligence & Company Filings 99 $1,644 $1,648 $1,462 $1,379 $1,440 1.90% 1.99% 2.22% 2.74% 3.43% 2Q22 3Q22 4Q22 1Q23 2Q23 ($ millions) Securities Balance & Yield Trend 10.1% 26.7% 11.0% 50.9% 1.3% Corporate Bonds CLO ABS Student Loans Agency MBS Municipal Bonds 2

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![](krny12_31x2022investorpr010.jpg)

Portfolio Lending Loan Composition1 Geographic Distribution2Loan Growth $1,521 $1,569 $1,688 $1,710 $1,765 $2,007 $2,076 $2,409 $2,570 $2,852 $1,026 $1,086 $1,020 $1,041 $1,017$4,849 $5,025 $5,437 $5,676 $6,001 2Q22 3Q22 4Q22 1Q23 2Q23 1-4 Family Multifamily CRE C&D Other ($ millions) Grew net loans by 5.8% from the prior quarter ended September 30, 2022 The weighted average loan-to-value ratio1 for our real estate secured loans was 62% 1 For the quarter ended December 31, 2022. 2 As of December 31, 2022 Source: S&P Global Market Intelligence & Company Filings QTD Yield on Loans 3.97% 28.7% 0.8% 47.5% 16.9% 3.1% 3.0% 1-4 Family Home Equity Multifamily CRE Construction Consumer Commercial 1010 New York (Ex. Brooklyn) 17.2% Brooklyn 18.3% New Jersey 55.0% Pennsylvania 5.3% Other 4.2%

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![](krny12_31x2022investorpr011.jpg)

Asset Quality Net Charge-Offs / Average Loans Non-Performing Assets / Total Assets Non-Performing Loans1 Allowance for Credit Losses 1 As of December 31, 2022; amounts shown in millions. Source: S&P Global Market Intelligence & Company Filings 1.01% 1.10% 1.19% 0.98% 0.76% 0.60% 0.80% 1.00% 1.20% 1.40% 2Q22 3Q22 4Q22 1Q23 2Q23 $48.2 $43.9 $47.1 $47.6 $48.9 0.99% 0.87% 0.87% 0.84% 0.81% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% $0.0 $20.0 $40.0 $60.0 $80.0 2Q22 3Q22 4Q22 1Q23 2Q23 ACL Balance ACL to Total Loans Receivable ($ millions) 1111 NPL's $40.5MM $16.3 $17.9 $0.3 $6.0 Multi-family Non-Residential Commercial Construction Residential Home Equity Other Consumer 0.10% 0.04% 0.08% 0.01% 0.03% -0.05% 0.00% 0.05% 0.10% 0.15% 2Q22 3Q22 4Q22 1Q23 2Q23

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![](krny12_31x2022investorpr012.jpg)

M&A History and Strategy Experienced and disciplined acquirer and integrator Opportunistic acquisition strategy with an emphasis on: Low premium deals Similar or complementary business models Expansion in existing or contiguous markets Cultural compatibility Focus on limiting tangible book value dilution and earn-back periods while generating strong EPS accretion and operating leverage 1212

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![](krny12_31x2022investorpr013.jpg)

Select Technology Partners 1313

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