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Sep 30
Kearny Financial Q1 2026 Earnings Report
Kearny Financial reported strong first quarter fiscal 2026 results with increased net income and EPS.
Key Takeaways
Kearny Financial Corp. announced a strong first quarter for fiscal year 2026, reporting a net income of $9.5 million, or $0.15 per diluted share. This represents a significant increase from the previous quarter, driven by net interest margin expansion, solid credit quality, and controlled expenses. The company also highlighted strategic initiatives aimed at enhancing operational efficiency and shareholder value.
Net income for the quarter ended September 30, 2025, was $9.5 million, a 40.4% increase from the previous quarter.
Diluted EPS rose to $0.15, up 36.4% quarter-over-quarter, reflecting strong profitability growth.
Net interest margin expanded by 10 basis points to 2.10%, and net interest income increased 5.2% to $37.7 million.
Total assets decreased by 1.2% to $7.65 billion, primarily due to decreases in multifamily mortgage loans, deposits, and borrowings.
Kearny Financial
Kearny Financial
Kearny Financial Revenue by Segment
Revenue by Segment
Loans Revenue
CapyFin.comTaxable Investment Securities Revenue
CapyFin.comTax-Exempt Investment Securities Revenue
CapyFin.comOther Interest-Earning Assets Revenue
CapyFin.com Forward Guidance
Kearny Financial Corp. anticipates sustained performance in the coming quarters, driven by proactive balance sheet management and expected reductions in the federal funds rate. The company is also focused on strategic initiatives to enhance operational efficiency and shareholder value.
Positive Outlook
- Expected tailwinds from anticipated reductions in the federal funds rate.
- Strategic partnership with The Lab Consulting to deploy advanced automation and analytics for enhanced operational efficiency and client service.
- Ongoing loan portfolio diversification efforts, with growth in construction and commercial business loans.
- Branch consolidations to optimize real estate footprint and reallocate capital to higher-return opportunities.
- Continued focus on profitability growth and shareholder value creation.
Challenges Ahead
- Total assets decreased by $92.4 million, or 1.2%, from the previous quarter.
- Loans receivable decreased by $45.5 million, or 0.8%, primarily due to a decrease in multifamily mortgage loans.
- Deposits decreased by $43.3 million, or 0.8%, driven by declines in interest-bearing demand deposits and certificates of deposits.
- Borrowings decreased by $50.0 million, or 4.0%, reflecting reductions in Federal Home Loan Bank advances.
- Non-performing assets increased to $64.6 million, or 0.84% of total assets, driven by a single construction loan becoming 90 days past due.