Page 1

kearnyfinancial corp . NEWS RELEASE Kearny Financial Corp. Reports Fiscal 2021 Third Quarter Results 4/29/2021 FAIRFIELD , N.J. , April 29 , 2021 ( GLOBE NEWSWIRE ) -- Kearny Financial Corp. ( NASDAQ GS : KRNY ) ( the " Company " ) , the holding company of Kearny Bank ( the " Bank " ) , reported net income for the quarter ended March 31 , 2021 of $ 16.4 million , or $ 0.20 per diluted share , compared to $ 16.9 million , or $ 0.20 per diluted share , for the quarter ended December 31 , 2020 . Craig L. Montanaro , President and Chief Executive Officer , commented , " This quarter's performance was highlighted by double - digit margin expansion largely resulting from a 22 basis point decrease in the cost of our interest - bearing liabilities . The success we have had in shifting our funding mix , controlling operating expenses and building valuable long - term lending and deposit relationships serves us well today and into the future . " With regard to the current credit environment , Mr. Montanaro further noted , " Despite an increase of $ 4.2 million in reserves on individually evaluated loans , largely attributable to two non - performing commercial real estate loans , asset quality remains solid . Our fortress - like balance sheet , comprised of significant levels of excess capital and a robust allowance for credit losses , positions us to withstand the ongoing economic impact of the pandemic while allowing us to take advantage of strategic capital deployment opportunities as they may arise . " Balance Sheet • Deposits increased by $ 61.8 million to $ 5.37 billion at March 31 , 2021 from $ 5.31 billion at December 31 , 2020 , reflecting growth of $ 227.8 million , or 6.8 % , in core non - maturity deposits . • Loans receivable decreased by $ 30.4 million to $ 4.80 billion at March 31 , 2021 from $ 4.83 billion at December 31 , 2020. Included in the net decrease for the period was a reduction of $ 18.3 million in Paycheck Protection 1