FALSE000161724200016172422023-10-262023-10-26

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): October 26, 2023
_____________________________
KEARNY FINANCIAL CORP.
(Exact name of Registrant as Specified in Its Charter)
_____________________________
Maryland001-3739930-0870244
(State or Other Jurisdiction
of Incorporation)
(Commission File Number)
(IRS Employer
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):
☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐    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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueKRNYThe 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    Results of Operation and Financial Condition
On October 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 September 30, 2023.
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    Regulation FD Disclosure
On October 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. 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 and shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933.

In addition, on October 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 99.3 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    Other Events
On October 26, 2023, the Company’s Board of Directors announced a quarterly cash dividend of $0.11 per share, payable on November 22, 2023 to stockholders of record as of November 8, 2023.
Item 9.01    Financial Statements and Exhibits
(a)Financial Statements of Business Acquired. Not applicable.
(b)Pro Forma Financial Information. Not applicable.
(c)Shell Company Transaction. Not applicable.
(d)Exhibits.


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.
Date: October 26, 2023
By:/s/ Keith Suchodolski
Keith Suchodolski
Senior Executive Vice President and Chief Financial Officer


Exhibit 99.1
FOR IMMEDIATE RELEASE
October 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 FIRST QUARTER FISCAL 2024 RESULTS
AND DECLARATION OF CASH DIVIDEND

Fairfield, N.J., October 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 September 30, 2023 of $9.8 million, or $0.16 per diluted share, compared to $12.0 million, or $0.19 per diluted share, for the quarter ended June 30, 2023.
The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on November 22, 2023, to stockholders of record as of November 8, 2023.

Craig L. Montanaro, President and Chief Executive Officer, commented,“In the face of ongoing industry-wide macro-economic headwinds we continue to execute strategies to mitigate risk, manage our operating expenses and support the long-term franchise value of the Company. To that end, this quarter we de-levered our balance sheet by an additional $90 million, meaningfully slowed net interest margin compression and continued to focus on building high-value loan and deposit relationships. To further support these efforts we have formed a new Corporate Banking division under the executive leadership of our Chief Banking Officer, Anthony Bilotta. This division has been staffed with seasoned banking professionals whose sole focus is the origination of stable, long-term, non-interest-bearing deposits of corporate clients.”

Mr. Montanaro continued, “I am further pleased to announce that, subsequent to quarter end, we launched our enhanced digital banking platform, which expands our client-facing online and mobile capabilities while providing a state-of-the-art user experience. Our continued focus on digital engagement complements our high-touch, personalized service model and allows us to expand our brand into new markets in an efficient and cost-effective manner.”
Balance Sheet
•Total assets were $7.97 billion at September 30, 2023, a decrease of $89.9 million, or 1.1%, from June 30, 2023.
•Investment securities totaled $1.36 billion at September 30, 2023, a decrease of $14.8 million, or 1.1%, from June 30, 2023.
•Loans receivable totaled $5.74 billion at September 30, 2023, a decrease of $93.4 million, or 1.6%, from June 30, 2023. The decrease for the quarter was largely driven by decreases in multi-family and nonresidential mortgage loans.
•Deposits were $5.43 billion at September 30, 2023, a decrease of $195.0 million, or 3.5%, from June 30, 2023. The decrease in deposits was largely concentrated in retail and brokered certificates of deposits and consumer savings.
•The aggregate amount of uninsured deposits was $1.73 billion at September 30, 2023. Excluding collateralized deposits of state and local governments and deposits of the Bank’s wholly-owned subsidiary and holding company, the aggregate amount of uninsured deposits was $683.3 million, or 12.6% of total deposits.
•Borrowings were $1.63 billion at September 30, 2023, an increase of $120.1 million, or 8.0%, from June 30, 2023. The increase in borrowings was driven by an increase in advances from the Federal Home Loan Bank of New York and resulted from the deposit decline previously disclosed.
•At September 30, 2023, the Company maintained available secured borrowing capacity of $2.09 billion, of which $1.65 billion was immediately accessible via in-place collateral and $444.3 million represented the market value of unpledged securities.
1

Earnings
Performance Highlights
•Return on average assets was 0.49% and 0.59% for the quarters ended September 30, 2023 and June 30, 2023, respectively.
•Return on average equity was 4.57% and 5.58% for the quarters ended September 30, 2023 and June 30, 2023, respectively.
•Return on average tangible equity was 6.07% and 7.41% for the quarters ended September 30, 2023 and June 30, 2023, respectively.
Net Interest Income and Net Interest Margin
•Net interest margin contracted one basis point to 2.10% for the quarter ended September 30, 2023. The decrease for the quarter was driven by an increase in the cost of interest-bearing liabilities and a decrease in the average balance of interest-earning assets, largely offset by a higher average yield on interest-earning assets.
•For the quarter ended September 30, 2023, net interest income decreased $1.0 million to $39.2 million from $40.2 million for the quarter ended June 30, 2023. Included in net interest income for the quarters ended September 30, 2023 and June 30, 2023, respectively, was purchase accounting accretion of $650,000 and $887,000, and loan prepayment penalty income of $267,000 and $185,000.
Non-Interest Income
•For the quarter ended September 30, 2023, non-interest income increased $344,000 from the quarter ended June 30, 2023 to $4.0 million. The increase was primarily attributable to higher income from the investment services division and the impact of a loss on the sale of real estate during the prior comparative period.
Non-Interest Expense
•For the quarter ended September 30, 2023, non-interest expense increased $1.0 million, or 3.5%, to $29.8 million from $28.8 million for the quarter ended June 30, 2023. The increase was primarily attributable to a $446,000 increase in compensation expense and a $205,000 increase in real estate owned expenses, partially offset by a $104,000 decrease in occupancy expense attributable to our previously announced branch closures.
•Equipment and systems expense increased $290,000 from the quarter ended June 30, 2023 due to a non-recurring vendor expense credit that was recorded in the prior comparative period.
•The efficiency and non-interest expense ratios were 68.97% and 1.49%, respectively, for the quarter ended September 30, 2023, as compared to 65.60% and 1.41%, respectively, for the quarter ended June 30, 2023.
Income Taxes
•Income tax expense totaled $3.3 million for the quarter ended September 30, 2023 compared to $3.4 million for the quarter ended June 30, 2023, resulting in an effective tax rate of 25.2% and 21.9%, respectively. The effective tax rate for the current quarter was elevated due to the discrete tax cost associated with the vesting of certain stock-based compensation awards.
2

Asset Quality
•The balance of non-performing assets decreased $4.7 million to $50.9 million, or 0.64% of total assets, at September 30, 2023, from $55.6 million, or 0.69% of total assets, at June 30, 2023.
•Net charge-offs totaled $2.1 million, or 0.15% of average loans, on an annualized basis, for the quarter ended September 30, 2023, compared to $82,000, or 0.01% of average loans, on an annualized basis, for the quarter ended June 30, 2023. All of the charge-offs recorded during the quarter ended September 30, 2023 had previously been individually reserved for within the allowance for credit losses.
•For the quarter ended September 30, 2023, the Company recorded a provision for credit losses of $245,000, compared to a reversal of credit losses of $306,000 for the quarter ended June 30, 2023. The provision for credit loss expense for the quarter ended September 30, 2023 was largely driven by an increase in reserves on individually analyzed loans and a slower prepayment rate assumption, partially offset by a decrease in the balance of loans receivable.
•The allowance for credit losses was $46.9 million, or 0.81% of total loans, at September 30, 2023, compared to $48.7 million, or 0.83% of total loans, at June 30, 2023.
Capital
•During the quarter ended September 30, 2023, the Company repurchased 817,607 shares of common stock at a cost of $6.4 million, or $7.84 per share.
•For the quarter ended September 30, 2023, book value per share decreased $0.16, or 1.2%, to $13.04 while tangible book value per share decreased $0.19, or 1.9%, to $9.77. These decreases were largely driven by an increase in accumulated other comprehensive loss.
•At September 30, 2023, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $131.4 million, partially offset by after-tax unrealized gains on derivatives of $44.8 million. After-tax net unrecognized losses on securities held to maturity of $14.7 million were not reflected in total stockholders’ equity.
•At September 30, 2023, the Company’s tangible equity to tangible assets ratio equaled 8.20% and the regulatory capital ratios of both the Company and the Bank were in excess of the levels required by federal banking regulators to be classified as “well-capitalized” under regulatory guidelines.

This earnings release should be read in conjunction with Kearny Financial Corp.’s Q1 2024 Investor Presentation, a copy of which is available through the Investor Relations link located at the bottom of the page of our website at www.kearnybank.com and via a Current Report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov.
Statements contained in this news release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company does not undertake and specifically disclaims any obligation to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.
Category: Earnings
3

Linked-Quarter Comparative Financial Analysis
Kearny Financial Corp.
Consolidated Balance Sheets
(Dollars and Shares in Thousands,
Except Per Share Data)		September 30,
2023		June 30,
2023		Variance
or Change		Variance
or Change Pct.
(Unaudited)(Audited)
Assets
Cash and cash equivalents$57,219 $70,515 $(13,296)-18.9 %
Securities available for sale1,215,633 1,227,729 (12,096)-1.0 %
Securities held to maturity143,730 146,465 (2,735)-1.9 %
Loans held-for-sale3,934 9,591 (5,657)-59.0 %
Loans receivable5,736,049 5,829,421 (93,372)-1.6 %
Less: allowance for credit losses on loans(46,872)(48,734)(1,862)-3.8 %
Net loans receivable5,689,177 5,780,687 (91,510)-1.6 %
Premises and equipment46,868 48,309 (1,441)-3.0 %
Federal Home Loan Bank stock81,509 71,734 9,775 13.6 %
Accrued interest receivable29,766 28,133 1,633 5.8 %
Goodwill210,895 210,895 — — %
Core deposit intangible2,323 2,457 (134)-5.5 %
Bank owned life insurance294,491 292,825 1,666 0.6 %
Deferred income taxes, net56,500 51,973 4,527 8.7 %
Other real estate owned12,956 12,956 — — %
Other assets129,865 110,546 19,319 17.5 %
Total assets $7,974,866 $8,064,815 $(89,949)-1.1 %
Liabilities
Deposits:
Non-interest-bearing $595,141 $609,999 $(14,858)-2.4 %
Interest-bearing4,839,027 5,019,184 (180,157)-3.6 %
Total deposits5,434,168 5,629,183 (195,015)-3.5 %
Borrowings1,626,933 1,506,812 120,121 8.0 %
Advance payments by borrowers for taxes16,907 18,338 (1,431)-7.8 %
Other liabilities47,324 41,198 6,126 14.9 %
Total liabilities7,125,332 7,195,531 (70,199)-1.0 %
Stockholders' Equity
Common stock652 659 (7)-1.1 %
Paid-in capital497,269 503,332 (6,063)-1.2 %
Retained earnings460,464 457,611 2,853 0.6 %
Unearned ESOP shares(22,375)(22,862)487 2.1 %
Accumulated other comprehensive loss(86,476)(69,456)(17,020)-24.5 %
Total stockholders' equity849,534 869,284 (19,750)-2.3 %
Total liabilities and stockholders' equity$7,974,866 $8,064,815 $(89,949)-1.1 %
Consolidated capital ratios
Equity to assets10.65 %10.78 %-0.13 %
Tangible equity to tangible assets (1)
8.20 %8.35 %-0.15 %
Share data
Outstanding shares65,13265,864(732)-1.1 %
Book value per share$13.04 $13.20 $(0.16)-1.2 %
Tangible book value per share (2)
$9.77 $9.96 $(0.19)-1.9 %
_________________________
(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.
4

Kearny Financial Corp.
Consolidated Statements of Income
(Unaudited)
(Dollars and Shares in Thousands,
Except Per Share Data)		Three Months EndedVariance
or Change		Variance
or Change Pct.
September 30,
2023		June 30,
2023
Interest income
Loans$62,769 $62,044 $725 1.2 %
Taxable investment securities16,265 15,736 529 3.4 %
Tax-exempt investment securities87 91 (4)-4.4 %
Other interest-earning assets2,047 1,821 226 12.4 %
Total interest income81,168 79,692 1,476 1.9 %
Interest expense
Deposits27,567 26,226 1,341 5.1 %
Borrowings14,441 13,286 1,155 8.7 %
Total interest expense42,008 39,512 2,496 6.3 %
Net interest income39,160 40,180 (1,020)-2.5 %
Provision for (reversal of) credit losses 245 (306)551 -180.1 %
Net interest income after provision for (reversal of) credit losses38,915 40,486 (1,571)-3.9 %
Non-interest income
Fees and service charges748 699 49 7.0 %
Gain on sale of loans215 199 16 8.0 %
Loss on sale of other real estate owned— (139)139 100.0 %
Income from bank owned life insurance1,666 1,605 61 3.8 %
Electronic banking fees and charges367 399 (32)-8.0 %
Other income1,014 903 111 12.3 %
Total non-interest income4,010 3,666 344 9.4 %
Non-interest expense
Salaries and employee benefits17,761 17,315 446 2.6 %
Net occupancy expense of premises2,758 2,862 (104)-3.6 %
Equipment and systems3,801 3,511 290 8.3 %
Advertising and marketing228 231 (3)-1.3 %
Federal deposit insurance premium1,524 1,455 69 4.7 %
Directors' compensation393 345 48 13.9 %
Other expense3,309 3,042 267 8.8 %
Total non-interest expense29,774 28,761 1,013 3.5 %
Income before income taxes13,151 15,391 (2,240)-14.6 %
Income taxes3,309 3,378 (69)-2.0 %
Net income$9,842 $12,013 $(2,171)-18.1 %
Net income per common share (EPS)
Basic$0.16 $0.19 $(0.03)
Diluted$0.16 $0.19 $(0.03)
Dividends declared
Cash dividends declared per common share$0.11 $0.11 $— 
Cash dividends declared$6,989 $7,007 $(18)
Dividend payout ratio71.0 %58.3 %12.7 %
Weighted average number of common shares outstanding
Basic63,01463,667(653)
Diluted63,06163,667(606)
5

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)
(Dollars in Thousands)Three Months EndedVariance
or Change		Variance
or Change Pct.
September 30,
2023		June 30,
2023
Assets
Interest-earning assets:
Loans receivable, including loans held for sale$5,788,074 $5,932,541 $(144,467)-2.4 %
Taxable investment securities1,516,393 1,529,582 (13,189)-0.9 %
Tax-exempt investment securities15,483 16,346 (863)-5.3 %
Other interest-earning assets130,829 128,158 2,671 2.1 %
Total interest-earning assets7,450,779 7,606,627 (155,848)-2.0 %
Non-interest-earning assets568,723 556,962 11,761 2.1 %
Total assets $8,019,502 $8,163,589 $(144,087)-1.8 %
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand$2,245,831 $2,321,120 $(75,289)-3.2 %
Savings719,508 774,854 (55,346)-7.1 %
Certificates of deposit1,968,512 2,057,818 (89,306)-4.3 %
Total interest-bearing deposits4,933,851 5,153,792 (219,941)-4.3 %
Borrowings:
Federal Home Loan Bank advances1,386,473 1,374,316 12,157 0.9 %
Other borrowings158,098 100,055 58,043 58.0 %
Total borrowings1,544,571 1,474,371 70,200 4.8 %
Total interest-bearing liabilities6,478,422 6,628,163 (149,741)-2.3 %
Non-interest-bearing liabilities:
Non-interest-bearing deposits612,251 608,765 3,486 0.6 %
Other non-interest-bearing liabilities66,701 64,970 1,731 2.7 %
Total non-interest-bearing liabilities678,952 673,735 5,217 0.8 %
Total liabilities7,157,374 7,301,898 (144,524)-2.0 %
Stockholders' equity862,128 861,691 437 0.1 %
Total liabilities and stockholders' equity$8,019,502 $8,163,589 $(144,087)-1.8 %
Average interest-earning assets to average interest-bearing liabilities115.01 %114.76 %0.25 %0.2 %
6

Kearny Financial Corp.
Performance Ratio Highlights
(Unaudited)
Three Months EndedVariance
or Change
September 30,
2023		June 30,
2023
Average yield on interest-earning assets:
Loans receivable, including loans held for sale4.34 %4.18 %0.16 %
Taxable investment securities4.29 %4.12 %0.17 %
Tax-exempt investment securities (1)
2.25 %2.23 %0.02 %
Other interest-earning assets6.26 %5.68 %0.58 %
Total interest-earning assets 4.36 %4.19 %0.17 %
Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand2.58 %2.38 %0.20 %
Savings 0.47 %0.48 %-0.01 %
Certificates of deposit2.49 %2.24 %0.25 %
Total interest-bearing deposits2.23 %2.04 %0.19 %
Borrowings:
Federal Home Loan Bank advances3.54 %3.51 %0.03 %
Other borrowings5.46 %4.89 %0.57 %
Total borrowings3.74 %3.60 %0.14 %
Total interest-bearing liabilities2.59 %2.38 %0.21 %
Interest rate spread (2)
1.77 %1.81 %-0.04 %
Net interest margin (3)
2.10 %2.11 %-0.01 %
Non-interest income to average assets (annualized)0.20 %0.18 %0.02 %
Non-interest expense to average assets (annualized)1.49 %1.41 %0.08 %
Efficiency ratio (4)
68.97 %65.60 %3.37 %
Return on average assets (annualized)0.49 %0.59 %-0.10 %
Return on average equity (annualized)4.57 %5.58 %-1.01 %
Return on average tangible equity (annualized) (5)
6.07 %7.41 %-1.34 %
_________________________
(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.
7


Five-Quarter Financial Trend Analysis
Kearny Financial Corp.
Consolidated Balance Sheets
(Dollars and Shares in Thousands,
Except Per Share Data)		September 30,
2023		June 30,
2023		March 31,
2023		December 31,
2022		September 30,
2022
(Unaudited)(Audited)(Unaudited)(Unaudited)(Unaudited)
Assets
Cash and cash equivalents$57,219 $70,515 $194,568 $75,660 $96,076 
Securities available for sale1,215,633 1,227,729 1,267,066 1,286,354 1,263,176 
Securities held to maturity143,730 146,465 149,764 153,786 115,943 
Loans held-for-sale3,934 9,591 5,401 12,940 12,936 
Loans receivable5,736,049 5,829,421 5,966,325 5,984,133 5,656,370 
Less: allowance for credit losses on loans(46,872)(48,734)(49,122)(48,877)(47,613)
Net loans receivable5,689,177 5,780,687 5,917,203 5,935,256 5,608,757 
Premises and equipment46,868 48,309 49,589 50,953 52,642 
Federal Home Loan Bank stock81,509 71,734 76,319 69,022 44,957 
Accrued interest receivable29,766 28,133 28,794 27,368 23,817 
Goodwill210,895 210,895 210,895 210,895 210,895 
Core deposit intangible2,323 2,457 2,590 2,732 2,876 
Bank owned life insurance294,491 292,825 291,220 289,673 289,690 
Deferred income taxes, net56,500 51,973 53,151 51,107 54,278 
Other real estate owned12,956 12,956 13,410 13,410 178 
Other assets129,865 110,546 89,366 110,162 113,369 
Total assets $7,974,866 $8,064,815 $8,349,336 $8,289,318 $7,889,590 
Liabilities
Deposits:
Non-interest-bearing $595,141 $609,999 $617,778 $650,950 $683,406 
Interest-bearing4,839,027 5,019,184 5,185,626 5,320,421 5,424,872 
Total deposits5,434,168 5,629,183 5,803,404 5,971,371 6,108,278 
Borrowings1,626,933 1,506,812 1,611,692 1,383,573 851,454 
Advance payments by borrowers for taxes16,907 18,338 18,706 17,307 16,555 
Other liabilities47,324 41,198 49,304 44,427 38,329 
Total liabilities7,125,332 7,195,531 7,483,106 7,416,678 7,014,616 
Stockholders' Equity
Common stock652 659 667 674 680 
Paid-in capital497,269 503,332 509,359 515,332 520,245 
Retained earnings460,464 457,611 452,605 449,489 454,710 
Unearned ESOP shares(22,375)(22,862)(23,348)(23,834)(24,321)
Accumulated other comprehensive loss(86,476)(69,456)(73,053)(69,021)(76,340)
Total stockholders' equity849,534 869,284 866,230 872,640 874,974 
Total liabilities and stockholders' equity$7,974,866 $8,064,815 $8,349,336 $8,289,318 $7,889,590 
Consolidated capital ratios
Equity to assets10.65 %10.78 %10.37 %10.53 %11.09 %
Tangible equity to tangible assets (1)
8.20 %8.35 %8.02 %8.16 %8.61 %
Share data
Outstanding shares 65,13265,86466,68067,38867,938
Book value per share$13.04 $13.20 $12.99 $12.95 $12.88 
Tangible book value per share (2)
$9.77 $9.96 $9.79 $9.78 $9.73 
_________________________
(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.
8

Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)
(Dollars in Thousands)September 30,
2023		June 30,
2023		March 31,
2023		December 31,
2022		September 30,
2022
Loan portfolio composition:
Commercial loans:
Multi-family mortgage$2,699,151 $2,761,775 $2,835,852 $2,851,721 $2,570,297 
Nonresidential mortgage946,801 968,574 1,002,643 1,017,341 1,040,688 
Commercial business149,229 146,861 162,038 177,530 186,361 
Construction230,703 226,609 215,524 186,663 166,052 
Total commercial loans4,025,884 4,103,819 4,216,057 4,233,255 3,963,398 
One- to four-family residential mortgage1,689,051 1,700,559 1,713,343 1,719,514 1,666,730 
Consumer loans:
Home equity loans42,896 43,549 44,376 45,690 43,269 
Other consumer2,644 2,549 2,592 2,648 2,869 
Total consumer loans45,540 46,098 46,968 48,338 46,138 
Total loans, excluding yield adjustments5,760,475 5,850,476 5,976,368 6,001,107 5,676,266 
Unaccreted yield adjustments(24,426)(21,055)(10,043)(16,974)(19,896)
Loans receivable, net of yield adjustments5,736,049 5,829,421 5,966,325 5,984,133 5,656,370 
Less: allowance for credit losses on loans(46,872)(48,734)(49,122)(48,877)(47,613)
Net loans receivable$5,689,177 $5,780,687 $5,917,203 $5,935,256 $5,608,757 
Asset quality:
Nonperforming assets:
Accruing loans - 90 days and over past due$— $— $— $— $— 
Nonaccrual loans37,912 42,627 44,026 40,549 68,574 
Total nonperforming loans37,912 42,627 44,026 40,549 68,574 
Nonaccrual loans held-for-sale— — — 8,650 8,650 
Other real estate owned12,956 12,956 13,410 13,410 178 
Total nonperforming assets$50,868 $55,583 $57,436 $62,609 $77,402 
Nonperforming loans (% total loans)0.66 %0.73 %0.74 %0.68 %1.21 %
Nonperforming assets (% total assets)0.64 %0.69 %0.69 %0.76 %0.98 %
Classified loans$98,616 $93,526 $103,461 $86,069 $92,610 
Allowance for credit losses on loans (ACL):
ACL to total loans0.81 %0.83 %0.82 %0.81 %0.84 %
ACL to nonperforming loans123.63 %114.33 %111.57 %120.54 %69.43 %
Net charge-offs $2,107 $82 $206 $407 $115 
Average net charge-off rate (annualized)0.15 %0.01 %0.01 %0.03 %0.01 %

9

Kearny Financial Corp.
Supplemental Balance Sheet Highlights
(Unaudited)
(Dollars in Thousands)September 30,
2023		June 30,
2023		March 31,
2023		December 31,
2022		September 30,
2022
Funding composition:
Deposits:
Non-interest-bearing deposits$595,141 $609,999 $617,778 $650,950 $683,406 
Interest-bearing demand2,236,573 2,252,912 2,285,799 2,316,485 2,382,411 
Savings 689,163 748,721 811,483 901,514 982,916 
Certificates of deposit (retail)1,300,382 1,377,028 1,327,343 1,354,907 1,263,124 
Certificates of deposit (brokered and listing service)612,909 640,523 761,001 747,515 796,421 
Interest-bearing deposits4,839,027 5,019,184 5,185,626 5,320,421 5,424,872 
Total deposits5,434,168 5,629,183 5,803,404 5,971,371 6,108,278 
Borrowings:
Federal Home Loan Bank advances1,456,933 1,281,812 1,156,692 1,256,573 796,454 
Overnight borrowings170,000 225,000 455,000 127,000 55,000 
Total borrowings1,626,933 1,506,812 1,611,692 1,383,573 851,454 
Total funding$7,061,101 $7,135,995 $7,415,096 $7,354,944 $6,959,732 
Loans as a % of deposits104.8 %102.9 %102.1 %99.6 %92.0 %
Deposits as a % of total funding77.0 %78.9 %78.3 %81.2 %87.8 %
Borrowings as a % of total funding23.0 %21.1 %21.7 %18.8 %12.2 %
Uninsured deposits:
Uninsured deposits (reported) (1)
$1,734,288 $1,771,416 $1,678,051 $1,815,854 $1,771,851 
Uninsured deposits (adjusted) (2)
$683,265 $710,377 $705,727 $794,407 $883,351 
_________________________
(1)Uninsured deposits of Kearny Bank.
(2)Uninsured deposits of Kearny Bank adjusted to exclude deposits of its wholly-owned subsidiary and holding company and collateralized deposits of state and local governments.
10

Kearny Financial Corp.
Consolidated Statements of Income
(Unaudited)
Three Months Ended
(Dollars and Shares in Thousands,
Except Per Share Data)		September 30,
2023		June 30,
2023		March 31,
2023		December 31,
2022		September 30,
2022
Interest income
Loans$62,769 $62,044 $60,172 $57,996 $52,935 
Taxable investment securities16,265 15,736 15,459 13,221 10,439 
Tax-exempt investment securities87 91 99 219 285 
Other interest-earning assets2,047 1,821 1,441 1,005 761 
Total interest income81,168 79,692 77,171 72,441 64,420 
Interest expense
Deposits27,567 26,226 22,246 18,822 10,869 
Borrowings14,441 13,286 12,554 8,836 5,020 
Total interest expense42,008 39,512 34,800 27,658 15,889 
Net interest income39,160 40,180 42,371 44,783 48,531 
Provision for (reversal of) credit losses245 (306)451 1,671 670 
Net interest income after provision for (reversal of) credit losses38,915 40,486 41,920 43,112 47,861 
Non-interest income
Fees and service charges748 699 910 734 763 
Loss on sale and call of securities— — — (15,227)— 
Gain (loss) on sale of loans215 199 (2,373)134 395 
Loss on sale of other real estate owned— (139)— — — 
Income from bank owned life insurance1,666 1,605 1,581 1,761 3,698 
Electronic banking fees and charges367 399 457 397 506 
Other income1,014 903 1,071 3,723 555 
Total non-interest income4,010 3,666 1,646 (8,478)5,917 
Non-interest expense
Salaries and employee benefits17,761 17,315 18,005 19,921 20,348 
Net occupancy expense of premises2,758 2,862 3,097 2,987 3,090 
Equipment and systems3,801 3,511 3,537 3,867 3,662 
Advertising and marketing228 231 413 731 747 
Federal deposit insurance premium1,524 1,455 1,546 1,226 906 
Directors' compensation393 345 340 339 340 
Other expense3,309 3,042 3,414 3,579 2,895 
Total non-interest expense29,774 28,761 30,352 32,650 31,988 
Income before income taxes13,151 15,391 13,214 1,984 21,790 
Income taxes3,309 3,378 2,902 33 5,255 
Net income$9,842 $12,013 $10,312 $1,951 $16,535 
Net income per common share (EPS)
Basic$0.16 $0.19 $0.16 $0.03 $0.25 
Diluted$0.16 $0.19 $0.16 $0.03 $0.25 
Dividends declared
Cash dividends declared per common share$0.11 $0.11 $0.11 $0.11 $0.11 
Cash dividends declared$6,989 $7,007 $7,196 $7,172 $7,276 
Dividend payout ratio71.0 %58.3 %69.8 %367.6 %44.0 %
Weighted average number of common shares outstanding
Basic63,01463,66764,76965,03065,737
Diluted63,06163,66764,78365,03865,756
11

Kearny Financial Corp.
Average Balance Sheet Data
(Unaudited)
Three Months Ended
(Dollars in Thousands)September 30,
2023		June 30,
2023		March 31,
2023		December 31,
2022		September 30,
2022
Assets
Interest-earning assets:
Loans receivable, including loans held-for-sale$5,788,074 $5,932,541 $5,986,669 $5,839,903 $5,553,996 
Taxable investment securities1,516,393 1,529,582 1,558,222 1,527,578 1,516,974 
Tax-exempt investment securities15,483 16,346 17,663 37,917 48,973 
Other interest-earning assets130,829 128,158 131,682 114,175 88,038 
Total interest-earning assets7,450,779 7,606,627 7,694,236 7,519,573 7,207,981 
Non-interest-earning assets568,723 556,962 575,009 550,519 570,225 
Total assets $8,019,502 $8,163,589 $8,269,245 $8,070,092 $7,778,206 
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand$2,245,831 $2,321,120 $2,363,762 $2,359,977 $2,354,340 
Savings 719,508 774,854 858,673 931,584 1,019,343 
Certificates of deposit1,968,512 2,057,818 2,069,396 2,192,722 2,014,922 
Total interest-bearing deposits4,933,851 5,153,792 5,291,831 5,484,283 5,388,605 
Borrowings:
Federal Home Loan Bank advances1,386,473 1,374,316 1,402,269 997,148 642,399 
Other borrowings158,098 100,055 1,611 — 127,456 
Total borrowings1,544,571 1,474,371 1,403,880 997,148 769,855 
Total interest-bearing liabilities6,478,422 6,628,163 6,695,711 6,481,431 6,158,460 
Non-interest-bearing liabilities:
Non-interest-bearing deposits612,251 608,765 634,324 666,846 667,624 
Other non-interest-bearing liabilities66,701 64,970 60,327 56,721 56,431 
Total non-interest-bearing liabilities678,952 673,735 694,651 723,567 724,055 
Total liabilities7,157,374 7,301,898 7,390,362 7,204,998 6,882,515 
Stockholders' equity862,128 861,691 878,883 865,094 895,691 
Total liabilities and stockholders' equity$8,019,502 $8,163,589 $8,269,245 $8,070,092 $7,778,206 
Average interest-earning assets to average
 interest-bearing liabilities
115.01 %114.76 %114.91 %116.02 %117.04 %
12

Kearny Financial Corp.
Performance Ratio Highlights
Three Months Ended
September 30,
2023		June 30,
2023		March 31,
2023		December 31,
2022		September 30,
2022
Average yield on interest-earning assets:
Loans receivable, including loans held-for-sale4.34 %4.18 %4.02 %3.97 %3.81 %
Taxable investment securities4.29 %4.12 %3.97 %3.46 %2.75 %
Tax-exempt investment securities (1)
2.25 %2.23 %2.23 %2.32 %2.33 %
Other interest-earning assets6.26 %5.68 %4.38 %3.52 %3.46 %
Total interest-earning assets4.36 %4.19 %4.01 %3.85 %3.57 %
Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand2.58 %2.38 %2.01 %1.63 %0.92 %
Savings 0.47 %0.48 %0.41 %0.41 %0.23 %
Certificates of deposit2.49 %2.24 %1.84 %1.50 %0.97 %
Total interest-bearing deposits2.23 %2.04 %1.68 %1.37 %0.81 %
Borrowings:
Federal Home Loan Bank advances3.54 %3.51 %3.58 %3.54 %2.68 %
Other borrowings5.46 %4.89 %5.15 %— %2.26 %
Total borrowings3.74 %3.60 %3.58 %3.54 %2.61 %
Total interest-bearing liabilities2.59 %2.38 %2.08 %1.71 %1.03 %
Interest rate spread (2)
1.77 %1.81 %1.93 %2.14 %2.54 %
Net interest margin (3)
2.10 %2.11 %2.20 %2.38 %2.69 %
Non-interest income to average assets (annualized)0.20 %0.18 %0.08 %-0.42 %0.30 %
Non-interest expense to average assets (annualized)1.49 %1.41 %1.47 %1.62 %1.65 %
Efficiency ratio (4)
68.97 %65.60 %68.96 %89.93 %58.75 %
Return on average assets (annualized)0.49 %0.59 %0.50 %0.10 %0.85 %
Return on average equity (annualized)4.57 %5.58 %4.69 %0.90 %7.38 %
Return on average tangible equity (annualized) (5)
6.07 %7.41 %6.20 %1.20 %9.70 %
_________________________
(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.
13

The following tables provide a reconciliation of certain financial measures calculated in accordance with Generally Accepted Accounting Principles (“GAAP”) (as reported) and non-GAAP measures. These non-GAAP measures provide additional information which allow readers to evaluate the ongoing performance of the Company. They are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. In all cases, it should be understood that non-GAAP per share measures do not depict amounts that accrue directly to the benefit of shareholders.
Kearny Financial Corp.
Reconciliation of GAAP to Non-GAAP
(Unaudited)
Three Months Ended
(Dollars and Shares in Thousands,
Except Per Share Data)		September 30,
2023		June 30,
2023		March 31,
2023		December 31,
2022		September 30,
2022
Adjusted net income:
Net income (GAAP)$9,842 $12,013 $10,312 $1,951 $16,535 
Non-recurring transactions - net of tax:
Branch consolidation expenses— — 568 — — 
Net effect of sale and call of securities— — — 10,811 — 
Net effect of sale of other assets— — — (2,081)— 
Severance expense from workforce realignment— — — 538 — 
Adjusted net income$9,842 $12,013 $10,880 $11,219 $16,535 
Calculation of pre-tax, pre-provision net revenue:
Net income (GAAP)$9,842 $12,013 $10,312 $1,951 $16,535 
Adjustments to net income (GAAP):
Provision for income taxes3,309 3,378 2,902 33 5,255 
Provision for (reversal of) credit losses245 (306)451 1,671 670 
Pre-tax, pre-provision net revenue (non-GAAP)$13,396 $15,085 $13,665 $3,655 $22,460 
Adjusted earnings per share:
Weighted average common shares - basic63,01463,66764,76965,03065,737
Weighted average common shares - diluted63,06163,66764,78365,03865,756
Earnings per share - basic (GAAP)$0.16 $0.19 $0.16 $0.03 $0.25 
Earnings per share - diluted (GAAP)$0.16 $0.19 $0.16 $0.03 $0.25 
Adjusted earnings per share - basic (non-GAAP)$0.16 $0.19 $0.17 $0.17 $0.25 
Adjusted earnings per share - diluted (non-GAAP)$0.16 $0.19 $0.17 $0.17 $0.25 
Pre-tax, pre-provision net revenue per share:
Pre-tax, pre-provision net revenue per share - basic
  (non-GAAP)
$0.21 $0.24 $0.21 $0.06 $0.34 
Pre-tax, pre-provision net revenue per share - diluted
  (non-GAAP)
$0.21 $0.24 $0.21 $0.06 $0.34 
Adjusted return on average assets:
Total average assets$8,019,502 $8,163,589 $8,269,245 $8,070,092 $7,778,206 
Return on average assets (GAAP)0.49 %0.59 %0.50 %0.10 %0.85 %
Adjusted return on average assets (non-GAAP)0.49 %0.59 %0.53 %0.56 %0.85 %
Adjusted return on average equity:
Total average equity$862,128 $861,691 $878,883 $865,094 $895,691 
Return on average equity (GAAP)4.57 %5.58 %4.69 %0.90 %7.38 %
Adjusted return on average equity (non-GAAP)4.57 %5.58 %4.95 %5.19 %7.38 %
14

Kearny Financial Corp.
Reconciliation of GAAP to Non-GAAP
(Unaudited)
Three Months Ended
(Dollars and Shares in Thousands,
Except Per Share Data)		September 30,
2023		June 30,
2023		March 31,
2023		December 31,
2022		September 30,
2022
Adjusted return on average tangible equity:
Total average equity$862,128 $861,691 $878,883 $865,094 $895,691 
Less: average goodwill(210,895)(210,895)(210,895)(210,895)(210,895)
Less: average other intangible assets(2,411)(2,544)(2,683)(2,826)(2,971)
Total average tangible equity$648,822 $648,252 $665,305 $651,373 $681,825 
Return on average tangible equity (non-GAAP)6.07 %7.41 %6.20 %1.20 %9.70 %
Adjusted return on average tangible equity (non-GAAP)6.07 %7.41 %6.54 %6.89 %9.70 %
Adjusted non-interest expense ratio:
Non-interest expense (GAAP)$29,774 $28,761 $30,352 $32,650 $31,988 
Non-recurring transactions:
Branch consolidation expenses— — (800)— — 
Severance expense from workforce realignment— — — (757)— 
Early contract termination— — — — — 
Non-interest expense (non-GAAP)$29,774 $28,761 $29,552 $31,893 $31,988 
Non-interest expense ratio (GAAP)1.49 %1.41 %1.47 %1.62 %1.65 %
Adjusted non-interest expense ratio (non-GAAP)1.49 %1.41 %1.43 %1.58 %1.65 %
Adjusted efficiency ratio:
Non-interest expense (non-GAAP)$29,774 $28,761 $29,552 $31,893 $31,988 
Net interest income (GAAP)$39,160 $40,180 $42,371 $44,783 $48,531 
Total non-interest income (GAAP)4,010 3,666 1,646 (8,478)5,917 
Non-recurring transactions:
Net effect of sale and call of securities— — — 15,227 — 
Net effect of sale of other assets— — — (2,931)— 
Total revenue (non-GAAP)$43,170 $43,846 $44,017 $48,601 $54,448 
Efficiency ratio (GAAP)68.97 %65.60 %68.96 %89.93 %58.75 %
Adjusted efficiency ratio (non-GAAP)68.97 %65.60 %67.14 %65.62 %58.75 %

15
A N N U A L M E E T I N G O F STOCKHOLDERS OCTOBER 26, 2023 10:00 AM EXHIBIT 99.2

 
Welcome and Introductory Remarks Craig L. Montanaro Director, President and Chief Executive Officer 2

 
Members of the Board of Directors John J. Mazur, Jr., Chairman Theodore J. Aanensen John F. McGovern Raymond E. Chandonnet Craig L. Montanaro Curtland E. Fields Leopold W. Montanaro John N. Hopkins Christopher Petermann Catherine A. Lawton Charles J. Pivirotto Joseph P. Mazza John F. Regan Melvina Wong-Zaza 3

 
Executive Management Team Keith Suchodolski Senior Executive Vice President Chief Financial Officer Patrick M. Joyce Executive Vice President Chief Lending Officer Anthony V. Bilotta, Jr. Executive Vice President Chief Banking Officer Thomas D. DeMedici Executive Vice President Chief Credit Officer John V. Dunne Executive Vice President Chief Risk Officer Erika K. Parisi Executive Vice President Chief Administrative Officer Timothy A. Swansson Executive Vice President Chief Technology & Innovation Officer 4 Sean M. Byrnes Executive Vice President Deputy Chief Financial Officer

 
Other Participants Corporate Secretary Kearny Financial Corp. Gail Corrigan Senior Vice President Legal Counsel Luse Gorman, PC Marc Levy, Esq. Independent Registered Public Accounting Firm Crowe LLP Andrey Dragun, CPA Partner Inspector of Election Computershare Amilja Regan Assistant Vice President 5

 
Business of the Meeting  Proposals to be voted upon:  Election of six directors for the terms indicated;  Ratification of the appointment of Crowe LLP as the Company’s independent auditor for the fiscal year ending June 30, 2024;  Advisory, non-binding resolution to approve our executive compensation as described in the Proxy Statement;  Review of Financial Results  Stockholder Questions  Report of the Inspector of Election 6

 
A N N U A L M E E T I N G O F STOCKHOLDERS Review of F inancia l Results Fiscal Year Ended June 30, 2023

 
Forward Looking Statements & Non-GAAP Financial Measures 8 This presentation may include certain “forward-looking statements,” which are made in good faith by Kearny Financial Corp. (the “Company”) pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties, such as statements of the Company’s plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Company’s control). In addition to the factors described under Item 1A. Risk Factors in the Company’s Annual Report on Form 10-K, and subsequent filings with the Securities and Exchange Commission, the following factors, among others, could cause the Company’s financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: • the strength of the United States economy in general and the strength of the local economy in which the Company conducts operations, • the effects of and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, interest rates, market and monetary fluctuations, • the impact of changes in laws, regulations and government policies regarding financial institutions (including laws concerning taxation, banking, securities and insurance), • changes in accounting policies and practices, as may be adopted by regulatory agencies, the Financial Accounting Standards Board (“FASB”) or the Public Company Accounting Oversight Board, • technological changes, • competition among financial services providers, and • the success of the Company at managing the risks involved in the foregoing and managing its business. The Company cautions that the foregoing list of important factors is not exhaustive. Readers should not place any undue reliance on any forward looking statements, which speak only as of the date made. The Company does not undertake 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. This presentation contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management uses these “non-GAAP” measures in its analysis of the Company’s performance. Management believes these non-GAAP financial measures allow for better comparability of period to period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. A reconciliation of the non-GAAP measures used in this presentation to the most directly comparable GAAP measures is provided at the end of this presentation.

 
Kearny Financial Corp. NASDAQ: KRNY Market Cap: $448.1 million1 Founded in 1884 Top 10 New Jersey-based financial institution by assets 43 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 October 17, 2023 2 As of June 30, 2023 Source: S&P Global Market Intelligence & Company Filings 9

 
139 Years of Serving our Communities and Clients 10 1884 1941 1999 2003 2004 2005 2011 2014 2015 2017 2018 2020 Obtained Federal Charter Pulaski Bancorp Acquired Completed First-Step Mutual Conversion & IPO Atlas Bank Acquired MSB Financial Corp. Acquired Converted to NJ State -Chartered Savings Bank 2021 2022 Established Kearny Investment Services Completed Second- Step Conversion and $717.5M Stock Offering Clifton Bancorp Acquired Introduced Private Client Services Central Jersey Bancorp Acquired West Essex Bank Acquired Founded, Kearny, NJ Formed the KearnyBank foundation funded with $10M South Bergen Savings Bank Acquired

 
Fiscal 2023 – Financial Highlights 1 Excludes Yield Adjustments 2 Refer to Non-GAAP Reconciliation at the end of this presentation – Adjusted non-interest expenses were reduced by $3.1 million from $31.9 million to $28.8 million for 2Q ’23 and 4Q ’23, respectively. Source: Company Filings 11 Operating Efficiency Initiative  Added $675 million of fair value asset swaps  Hedged an additional $700 million of borrowings  Sold $121 million of securities and reinvested in securities yielding, on average, 440 basis points higher than the securities that were sold  Purchased $100 million of securities, funded by wholesale borrowings, which produced an average spread of 216 basis points  Reduced adjusted non-interest expenses by 9.7% through optimization and reduction of vendor spend2  Continued investment in technology to automate routine activities  Realignment of the Company’s workforce  Consolidation of 2 branch locations Wholesale Restructuring Reduction in Interest Rate Sensitivity Net Income (GAAP) (Adjusted)2 $0.63 $0.78 Total Assets $8.1 billion $5.6 billion $40.8 million $5.9 billion $50.6 million Adjusted Net Income2 Total Loans1 Diluted EPS Total Deposits

 
9.07% 14.07% 14.07% 14.75% 9.59% 11.20% 11.46% 13.95% Tier 1 Leverage Common Equity Tier 1 Tier 1 Risk-Based Capital Total Risk-Based Capital KRNY S&P US Small Cap Banks Equity & Capitalization 1 Kearny Regulatory Capital Ratios based on June 30, 2023 results. 2 S&P U.S. Small Cap Banks Index comprised of 236 constituents, based on June 30, 2023 results. Source: Company Filings Equity Capitalization Level Regulatory Capital Ratios1,2 12 14.19% 13.29% 11.72% 9.06% 8.35% 16.99% 16.04% 14.32% 11.58% 10.78% 0.00% 5.00% 10.00% 15.00% 20.00% 2019FY 2020FY 2021FY 2022FY 2023FY Tangible Common Equity / Tangible Assets Equity / Assets

 
$433 $502 $621 $751 $779 $69 $94 $122 $152 $181 $502 $596 $743 $903 $960 2019FY 2020FY 2021FY 2022FY 2023FY Repurchase of Common Stock Dividends Paid Capital Management Source: Company Filings 1 Since conclusion of second step conversion in May 2015. Repurchased 2.8 million shares during Fiscal 2023 at an average price of $9.73 per share Cumulative Capital Returned to Stockholders1 13 ($ millions)

 
Earnings Performance 1 Although management believes adjusted EPS, which is a non-GAAP measure, is useful to investors by providing a greater level of understanding of its business, it should not be considered a substitute for a financial measure determined in accordance with GAAP, nor is it necessarily comparable to a non-GAAP financial measure that may be presented by other companies. Adjusted EPS excludes non-recurring income and expenses, including branch consolidation expenses and impairment charges. Refer to reconciliation of GAAP to non-GAAP at the end of this presentation. Source: S&P Global Market Intelligence & Company Filings Fiscal 2023 earnings per share were challenged due to the rapid increase in short-term interest rates which resulted in an inverted yield curve. 14 $0.47 $0.54 $0.81 $0.98 $0.78 $0.46 $0.55 $0.77 $0.95 $0.63 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 2019FY 2020FY 2021FY 2022FY 2023FY Adjusted EPS GAAP EPS Earnings per Share1 1

 
$1,902 $1,773 $1,399 $1,116 $1,377 $302 $67 $479 $773 $640 $791 $907 $1,111 $1,053 $749 $843 $1,264 $1,902 $2,266 $2,253$309 $419 $594 $654 $610 $4,147 $4,430 $5,485 $5,862 $5,629 2019FY 2020FY 2021FY 2022FY 2023FY Deposits 1 For the quarter ended June 30, 2023. Source: S&P Global Market Intelligence & Company Filings Deposit Composition1 Deposit Growth Consolidated 17 branches since the end of Fiscal 2019 ($ millions) 15 YTD Cost of Deposits 1.47% 10.8% 40.0% 13.3% 24.5% 11.4% Noninterest bearing deposits Interest bearing DDA Savings Retail CDs Wholesale CDs

 
$1,344 $1,273 $1,448 $1,646 $1,701 $1,946 $2,060 $2,039 $2,409 $2,762 $1,259 $961 $1,079 $1,020 $969$4,731 $4,540 $4,880 $5,437 $5,850 2019FY 2020FY 2021FY 2022FY 2023FY 1-4 Family Home Equity Multi-family CRE Construction C&I 29.1% 0.7% 47.2% 16.6% 3.9% 2.5% 1-4 Family Home Equity Multi-family CRE Construction C&I Portfolio Lending 1 For the quarter ended June 30, 2023. 2 As of June 30, 2023 Source: S&P Global Market Intelligence & Company Filings Loan Composition1 Geographic Distribution2Loan Growth Grew net loans by 8% during Fiscal 2023 16 YTD Yield on Loans 4.00% New York 35.3% New Jersey 54.5% Pennsylvania 5.8% Other 4.4% LTV 61.0% ($ millions)

 
Asset Quality 1 As of June 30, 2023; amounts shown in millions. 2 The Company adopted CECL methodology effective FY 2021 Q1 Source: S&P Global Market Intelligence & Company Filings Net Charge-Offs / Average Loans Non-Performing Assets / Total Assets Non-Performing Loans1 Allowance for Credit Losses on Loans (ACL)2 17 0.02% 0.00% 0.03% 0.07% 0.01% -0.05% 0.00% 0.05% 0.10% 0.15% 2019FY 2020FY 2021FY 2022FY 2023FY 0.31% 0.55% 1.10% 1.19% 0.69% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 2019FY 2020FY 2021FY 2022FY 2023FY $33.3 $37.3 $58.2 $47.1 $48.7 0.70% 0.82% 1.19% 0.87% 0.83% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 2019FY 2020FY 2021FY 2022FY 2023FY ACL Balance ACL to Total Loans Receivable NPL's $42.6MM $6.7 $19.1 $16.5 $0.3 1-4 Family Home Equity Multi-family CRE Construction C&I

 
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 18

 
Selected Technology Partners 19

 
Environmental, Social & Governance (ESG) 20 The Company recently released an ESG Highlights Report disclosing updates to our ESG program during fiscal 2023 including: Welcoming two new directors to the Boards of Kearny Financial Corp. and Kearny Bank Appointing a Director of Diversity, Equity and Inclusion Implementing an energy management system in our corporate headquarters

 
Non-GAAP Reconciliation 21 Appendix A: Reconciliation of GAAP to Non-GAAP For the year ended For the year ended For the quarter ended For the quarter ended For the quarter ended For the quarter ended (Dollars and Shares in Thousands, Except Per Share Data) June 30, 2023 June 30, 2022 June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 Adjusted net income: Net Income (GAAP) $40,811 $67,547 $12,013 $10,312 $1,951 $16,535 Non-recurring transactions - net of tax: Branch consolidation expenses and impairment charges 568 1,341 - 568 - - Net effect of sales and calls of securities 10,811 397 - - 10,811 - Net effect of sales of other assets (2,081) (251) - - (2,081) - Severance expense from workforce alignment 538 - - - 538 - Early contract termination - 568 - - - Adjusted net income $50,647 $69,602 $12,013 $10,880 $11,219 $16,535 Adjusted earnings per share: Weighted average common shares - basic 64,804 70,911 63,667 64,769 65,030 65,737 Weighted average common shares - diluted 64,804 70,933 63,667 64,783 65,038 65,736 Earnings per share - basic (GAAP) $0.63 $0.95 $0.19 $0.16 $0.03 $0.25 Earnings per share - diluted (GAAP) $0.63 $0.95 $0.19 $0.16 $0.03 $0.25 Adjusted earnings per share - basic (non-GAAP) $0.78 $0.98 $0.19 $0.17 $0.17 $0.25 Adjusted earnings per share - diluted (non-GAAP) $0.78 $0.98 $0.19 $0.17 $0.17 $0.25 Adjusted return on average assets: Total average assets $8,068,937 $7,282,370 $8,163,589 $8,269,245 $8,070,992 $7,778,206 Return on average assets (GAAP) 0.51% 0.93% 0.59% 0.50% 0.10% 0.85% Adjusted return on average assets (non-GAAP) 0.63% 0.96% 0.59% 0.53% 0.56% 0.85%

 
Non-GAAP Reconciliation 22 Appendix A: Reconciliation of GAAP to Non-GAAP For the year ended For the year ended For the quarter ended For the quarter ended For the quarter ended For the quarter ended (Dollars and Shares in Thousands, Except Per Share Data) June 30, 2023 June 30, 2022 June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 Adjusted non-interest expense ratio: Non-interest expense (GAAP) $123,751 $125,708 $28,761 $30,352 $32,650 $31,988 Non-recurring transactions: Branch consolidation expenses (800) (1,898) - (800) - - Severance expense from workforce alignment (757) - - - (757) - Early contract termination - (800) - - - - Non-interest expense (non-GAAP) $122,194 $123,010 $28,761 $29,552 $31,893 $31,988 Non-interest expense ratio (GAAP) 1.53% 1.73% 1.41% 1.47% 1.62% 1.65% Adjusted non-interest expense ratio (non-GAAP) 1.51% 1.69% 1.41% 1.43% 1.58% 1.65%

 
Stockholder Questions Questions? 23

 
Results of Voting Report of the Inspector of Election 24

 
A N N U A L M E E T I N G O F STOCKHOLDERS OCTOBER 26, 2023 10:00 AM

 
OCTOBER 26, 2023 I N V E S T O R P R E S E N T A T I O N F I R S T Q U A R T E R F I S C A L 2 0 2 4 EXHIBIT 99.3

 
Forward Looking Statements & Financial Measures 2 This presentation may include certain “forward-looking statements,” which are made in good faith by Kearny Financial Corp. (the “Company”) pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties, such as statements of the Company’s plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Company’s control). In addition to the factors described under Item 1A. Risk Factors in the Company’s Annual Report on Form 10-K, and subsequent filings with the Securities and Exchange Commission, the following factors, among others, could cause the Company’s financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: • the strength of the United States economy in general and the strength of the local economy in which the Company conducts operations, • the effects of and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, interest rates, market and monetary fluctuations, • the impact of changes in laws, regulations and government policies regarding financial institutions (including laws concerning taxation, banking, securities and insurance), • changes in accounting policies and practices, as may be adopted by regulatory agencies, the Financial Accounting Standards Board (“FASB”) or the Public Company Accounting Oversight Board, • technological changes, • competition among financial services providers, and • the success of the Company at managing the risks involved in the foregoing and managing its business. The Company cautions that the foregoing list of important factors is not exhaustive. Readers should not place any undue reliance on any forward looking statements, which speak only as of the date made. The Company does not undertake 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.

 
Kearny Financial Corp. NASDAQ: KRNY Market Cap: $429.2 million1 Founded in 1884 Top 10 New Jersey-based financial institution by assets 43 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 October 23, 2023 2 As of September 30, 2023 Source: S&P Global Market Intelligence & Company Filings 3

 
139 Years of Serving our Communities and Clients 4

 
1Q24 Financial Highlights 1 Excludes Yield Adjustments Source: Company Filings 5 1Q24 Highlights: Corporate Banking Division Formed – Staffed with seasoned banking professionals whose sole focus is the origination of stable, long-term non-interest bearing deposits of corporate clients. Digital Banking Platform – Launched in October 2023. Expands our client-facing online and mobile capabilities while providing a state-of-the-art user experience. Net Interest Margin - Compression slowed, declining one basis point from the prior quarter. Net Income Total Assets $8.0 billion Net Interest Income Diluted EPS $9.8 million $39.2 million $0.16 Total Loans1 Total Deposits $5.7 billion $5.4 billion

 
Equity & Capitalization Equity Capitalization Level 1 Kearny Financial Corp. (NASDAQ: KRNY) Regulatory Capital Ratios as of September 30, 2023 are preliminary. 2 S&P U.S. Small Cap Banks Index comprised of 236 constituents, based on June 30, 2023 results. Source: Company Filings 6 Regulatory Capital Ratios1,2 9.14% 14.57% 14.57% 15.34% 9.62% 11.20% 11.47% 13.97% Tier 1 Leverage Common Equity Tier 1 Tier 1 Risk-Based Capital Total Risk-Based Capital KRNY S&P US Small Cap Banks 8.61% 8.16% 8.02% 8.35% 8.20% 11.09% 10.53% 10.37% 10.78% 10.65% 1Q23 2Q23 3Q23 4Q23 1Q24 Tangible Common Equity / Tangible Assets Equity / Assets

 
Deposits 1 For the quarter ended September 30, 2023 2 For the quarter ended September 30, 2023; excludes Wholesale CDs Source: S&P Global Market Intelligence & Company Filings 7 Deposit Composition1 Deposit Trend Deposit Segmentation2 Consumer 60.7% Commercial 21.0% Government 18.3% Product # of Accounts Balance ($ millions) Average Balance per Account Checking 53,728 $ 2,832 $ 53,728 Savings 33,640 689 33,640 CD 28,665 1,300 28,665 Total Retail Deposits 116,033 $ 4,821 $ 41,550 Non-Maturity Account Deposit Mix $1,263 $1,355 $1,327 $1,377 $1,300 $797 $747 $761 $640 $613 $983 $902 $811 $749 $689 $2,382 $2,316 $2,286 $2,253 $2,237 $683 $651 $618 $610 $595 $6,108 $5,971 $5,803 $5,629 $5,434 1Q23 2Q23 3Q23 4Q23 1Q24 Wholesale CDs Savings Interest Bearing DDA Non-interest Bearing DDA ($ millions) QTD Cost of Deposits 2.23% Retail CDs 23.9% Wholesale CDs 11.3% Savings 12.7% Interest Bearing DDA 41.1% Non-interest Bearing DDA 11.0%

 
Liquidity Available for Uninsured Deposits Estimated Uninsured Deposits Analysis2 1 Estimated amount of uninsured deposits reported in September 30, 2023 Call Report. 2 As of September 30, 2023 8 Estimated Uninsured Deposit Analysis ($ millions) Estimated Uninsured Deposits 1,734$ Less: Collateralized State & Local Government Deposits (630) Less: Bank's wholly-owned subsidiary & Holding Company Deposits (421) Estimated uninsured deposits excluding items above: 683$ Total Deposits 5,434$ Estimated uninsured deposits, excluding items above, as a % of Total Deposits 12.6% Available liquidity is 3.1x greater than estimated uninsured deposits (excluding items above) Liquidity Capacity2 Sources of Liquidity ($ millions) Liquidity Capacity Funding Utilized Available Capacity Internal Sources: Free Securities and other 444$ -$ 444$ External Sources: FRB 435 - 435 FHLB 2,840 1,628 1,212 Total Liquidity 3,719$ 1,628$ 2,091$ 1

 
Investment Securities 1 For the quarter ended September 30, 2023 2 Comprised entirely of securitized federal education loans with 97% U.S. government guarantees 3 Assumes 29% marginal tax rate Source: S&P Global Market Intelligence & Company Filings 9 2 Securities Composition1 Securities Average Balance & Yield TrendAFS/HTM & Effective Duration At September 30, 2023, the after-tax net unrecognized loss on securities held-to maturity was $14.7 million, or 2.3% of tangible equity3 $1,566 $1,565 $1,576 $1,546 $1,532 2.74% 3.43% 3.95% 4.10% 4.27% 1Q23 2Q23 3Q23 4Q23 1Q24 ($ millions) 10.0% 30.2% 9.7% 49.0% 1.1% Corporate Bonds CLO ABS Student Loans Agency MBS Municipal Bonds AFS , 89.4% HTM , 10.6% Total Effective Duration ≈ 3.4 years Floating rate securities ≈ 37.1%

 
Portfolio Lending Loan Composition1 Geographic Distribution2Loan Trend 1 For the quarter ended September 30, 2023. 2 As of September 30, 2023. Source: S&P Global Market Intelligence & Company Filings 10 ($ millions) New York (Ex. Brooklyn) 16.7% Brooklyn 18.1% New Jersey 55.0% Pennsylvania 5.8% Other 4.4% $1,667 $1,720 $1,713 $1,701 $1,689 $2,570 $2,852 $2,836 $2,762 $2,699 $1,041 $1,017 $1,003 $969 $947 $5,676 $6,001 $5,976 $5,850 $5,760 1Q23 2Q23 3Q23 4Q23 1Q24 1-4 Family Home Equity Multi-family CRE Construction C&I 29.3% 0.8% 46.9% 16.4% 4.0% 2.6% 1-4 Family Home Equity Multi-family CRE Construction C&I QTD Yield on Loans 4.34% LTV 61.3%

 
CRE Lending 1 As of September 30, 2023 Source: Company Filings 11 CRE Portfolio by Collateral Type1 CRE Loan Geographic Distribution1 Total CRE $0.9 B New Jersey 55.6% Brooklyn 10.0% New York (Ex. Brooklyn) 27.9% Pennsylvania 3.9% Other 2.6% WA LTV 53% $358.9 Retail 38.0% $259.4 Mixed Use 27.4% $135.7 Office 14.3% $142.4 Industrial 15.0% $15.2 Specialty & Other 1.6% $35.2 Medical 3.7% ($ millions)

 
Office Portfolio 1 As of September 30, 2023 Source: Company Filings 12 Office Portfolio by Contractual Maturity1 Office Loan Geographic Distribution1 Office Portfolio Profile 15.0% of total CRE portfolio or $136 million Average loan size of $1.5 million Classified office loans comprised of 2.7% of total office loans ($ millions) ($ millions) $2 $6 $5 $17 $50 $20 $36 2023 2024 2025 2026 2027 2028 2029+ $3.1 Other 2.3% $33.2 Manhattan 24.4% $8.5 New York (Ex. Manhattan) 6.3% $90.9 New Jersey 67.0% Total Office $135.7 M LTV 50.2% DSCR 1.8x

 
Asset Quality Net Charge-Offs / Average Loans1 Non-Performing Assets / Total Assets Non-Performing Loans2 Allowance for Credit Losses 1 All of the charge-offs recorded during 1Q24 had previously been individually reserved for within the allowance for credit losses. 2 As of September 30, 2023; amounts shown in millions. Source: S&P Global Market Intelligence & Company Filings 13 0.01% 0.03% 0.01% 0.01% 0.15% -0.05% 0.00% 0.05% 0.10% 0.15% 0.20% 1Q23 2Q23 3Q23 4Q23 1Q24 0.98% 0.76% 0.69% 0.69% 0.64% 0.50% 0.75% 1.00% 1.25% 1Q23 2Q23 3Q23 4Q23 1Q24 $47.6 $48.9 $49.1 $48.7 $46.9 0.84% 0.81% 0.82% 0.83% 0.81% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% $0.0 $20.0 $40.0 $60.0 $80.0 1Q23 2Q23 3Q23 4Q23 1Q24 ACL Balance ACL to Total Loans Receivable ($ millions) $16.4 $14.9 $0.4 $6.2 Multi-family CRE C&I 1-4 Family Home Equity NPL's $37.9 MM

 
Select Technology Partners 14

 
v3.23.3
Cover
Oct. 26, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 26, 2023
Entity Incorporation, State or Country Code MD
Entity File Number 001-37399
Entity Tax Identification Number 30-0870244
Entity Address, Address Line One 120 Passaic Avenue
Entity Address, City or Town Fairfield
Entity Address, State or Province NJ
Entity Address, Postal Zip Code 07004
City Area Code (973)
Local Phone Number 244-4500
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(g) Security Common Stock, $0.01 par value
Trading Symbol KRNY
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001617242
Entity Registrant Name KEARNY FINANCIAL CORP.
Kearny Financial (NASDAQ:KRNY)
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