Kearny Financial (KRNY) investor relations material

Executive summary

• Earnings momentum driven by asset repricing, portfolio mix improvements, and operational efficiency initiatives, supporting sustainable net income growth.

• Net income for Q4 2026 was $7.2M ($0.11/diluted share), down from $10.1M ($0.16/diluted share) in Q3 2026; FY 2026 net income was $36.3M ($0.57/diluted share), up 39% year-over-year from $26.1M ($0.42/diluted share) in FY 2025.

• Strategic focus on expanding core commercial and specialty deposits, diversifying loan portfolio, and leveraging technology for efficiency.

• AI-driven initiatives embedded across servicing, risk, and lending workflows to enhance efficiency and client experience.

• Board declared a $0.11/share quarterly cash dividend, payable August 26, 2026.

Financial highlights

• Fourth quarter 2026 net income was $7.2 million, with diluted EPS of $0.11 and net interest income of $40.4 million.

• Net interest margin expanded 5 bps to 2.26% compared to the previous quarter; FY 2026 margin was 2.18%, up 30 bps year-over-year.

• Adjusted net income for the quarter was $9.2 million, excluding $2.6 million in non-recurring items (tax charge, severance, OREO expense).

• Non-interest income for FY 2026 increased $3.8M to $22.8M, driven by $1.8M in non-recurring gains and higher loan/branch fees.

• Total assets were $7.7 billion, loans $5.9 billion, and deposits $5.7 billion as of June 30, 2026.

Outlook and guidance

• Strategic investments in commercial banking, specialty deposits, technology, and retail realignment are expected to drive FY2027 earnings improvement.

• Management expects continued organic growth, operational excellence, and enhanced client experience in FY 2027.

• Embedded loan repricing runway and redeployment into higher-yielding assets support further margin expansion.

• Investments in talent, technology, and efficiency, along with loan repricing, are expected to support sustainable earnings growth.