Kearny Financial Corp. reported its financial results for the quarter and six months ended December 31, 2025, revealing a net income of $9.4 million, or $0.15 per diluted share, compared to $6.6 million, or $0.10 per diluted share, for the same period in 2024. For the six months, net income reached $19.0 million, or $0.30 per diluted share, up from $12.7 million, or $0.20 per diluted share, in the prior year. The increase in net income was attributed to higher net interest income and non-interest income, despite rising non-interest expenses and income taxes.
Total assets decreased by $119.6 million to $7.62 billion as of December 31, 2025, primarily due to declines in net loans receivable, cash and cash equivalents, and investment securities. Net loans receivable fell by $58.3 million, or 1.0%, to $5.71 billion, driven by a decrease in multi-family mortgage loans. The company’s total deposits increased by $36.3 million, or 0.6%, to $5.71 billion, with a notable shift of $69.8 million from interest-bearing to non-interest-bearing deposits as part of a repricing strategy.
Kearny Financial's net interest income rose by $5.4 million to $38.0 million for the quarter, reflecting a decrease in interest expense, which fell by $6.2 million. The net interest margin improved by 32 basis points to 2.14%, driven by a reduction in the cost of interest-bearing liabilities and higher yields on loans. Non-interest income also increased, totaling $5.6 million for the quarter, up from $4.9 million, with significant contributions from fees and service charges.
The company’s allowance for credit losses decreased from $46.2 million at June 30, 2025, to $45.0 million at December 31, 2025, primarily due to net charge-offs and a reduction in the balance of loans receivable. Nonperforming assets rose to $51.3 million, or 0.67% of total assets, reflecting an increase in nonperforming multi-family mortgage loans. Looking ahead, Kearny Financial remains focused on maintaining its capital position and managing interest rate risk, with available secured borrowing capacity of $2.70 billion as of December 31, 2025.
About Kearny Financial Corp.
Kearny Financial Corp. is a Maryland-based holding company for Kearny Bank, a community bank serving New Jersey and New York. It offers retail and commercial banking services, including deposit products, mortgage and consumer loans, and investment securities. The bank emphasizes relationship banking, diversified loan portfolios, digital banking, and strong capital and liquidity positions to serve small and mid-sized businesses and local communities.
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