Kearny Financial Reports Q2 EPS of $0

Kearny Financial Corp. KRNY the holding company of Kearny Federal Savings Bank, today reported a net loss for the quarter ended December 31, 2010 of $5,000, or $0.00 per diluted share. The acquisition of Central Jersey qualified as a tax-free reorganization for federal income tax purposes. The final consideration paid by the Company in the transaction totaled $82.1 million which included $70.5 million paid to stockholders of Central Jersey at a price of $7.50 per outstanding share and $11.6 million paid to U.S. Department of Treasury for the redemption of the 11,300 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A and associated warrant originally issued by Central Jersey to the U.S. Treasury in connection with the Troubled Asset Relief Program (TARP) Capital Purchase Program. The Company accounted for the transaction using applicable accounting guidance regarding business combinations resulting in the recognition of pre-tax merger-related expenses totaling $3.1 million during the three months ended December 31, 2010. By comparison, merger-related expenses totaled $40,000 for the prior linked quarter ended September 30, 2010. Net income for the quarter ended December 31, 2010 was adversely impacted by approximately $2.2 million or $0.03 per diluted share due to the recognition of merger-related expenses.