Kearny Financial (KRNY) investor relations material

Executive summary

• Net income for Q3 2026 was $10.1 million ($0.16 per diluted share), up from $9.4 million ($0.15 per share) in Q2 FY2026, reflecting continued improvement in core earnings and operational efficiency.

• Pre-tax, pre-provision net revenue rose 5.5% year-over-year to $13.0 million, marking the sixth consecutive quarter of margin expansion.

• Strategic initiatives included branch optimization, deposit franchise expansion, and automation to drive sustainable earnings growth.

• Board declared a $0.11 per share quarterly cash dividend, payable May 20, 2026.

Financial highlights

• Net interest income reached $39.2 million, with net interest margin increasing 7 bps to 2.21% year-over-year.

• Dividend yield stood at 5.83%; CET-1 ratio was 14.57%.

• Adjusted net income for Q3 2026 was $9.4 million, excluding non-recurring items.

• Non-interest income grew 9.4% to $6.1 million, driven by a $1.0 million non-recurring gain on property sales.

• Non-interest expense increased 3.6% to $32.3 million, mainly due to higher salaries, benefits, and occupancy costs.

Outlook and guidance

• Ongoing focus on loan portfolio diversification and funding optimization is expected to support further margin expansion.

• Automation and operational efficiency initiatives are anticipated to reduce expenses and enhance scalability.

• Management expects continued earnings momentum due to favorable loan repricing, funding dynamics, and operational improvements.