Kearny Financial Corp. reported a net income of $26.1 million for the fiscal year ending June 30, 2025, translating to earnings of $0.42 per diluted share. This marks a significant recovery from the previous year's net loss of $86.7 million, which included a substantial non-cash goodwill impairment charge of $95.3 million. The increase in profitability was attributed to a rise in non-interest income, a decrease in the provision for credit losses, and lower income tax expenses, despite a decline in net interest income and an uptick in non-interest expenses.
Total assets for Kearny Financial increased by $57 million, or 0.7%, to $7.74 billion, driven primarily by growth in cash and net loans receivable, which rose by $78.9 million to $5.77 billion. The loan portfolio composition showed a notable increase in multi-family mortgage loans, which reached $2.71 billion, accounting for 46.6% of total loans. However, non-performing loans also rose to $45.6 million, or 0.79% of total loans, reflecting a $5.7 million increase from the prior year, largely due to multi-family mortgage loans.
Kearny Financial's deposit base grew by $517.1 million, or 10%, to $5.68 billion, with significant contributions from interest-bearing deposits. The company reported a decrease in borrowings, which fell by 26.5% to $1.26 billion, as it shifted from reliance on Federal Home Loan Bank advances to brokered certificates of deposit. The total allowance for credit losses increased to $46.2 million, or 0.79% of total loans, reflecting a $1.3 million rise from the previous year, primarily due to increased reserves for individually evaluated loans.
Strategically, Kearny Financial has focused on diversifying its loan portfolio and enhancing its technology infrastructure. The company has invested in digital banking initiatives and expanded its product offerings to better serve its customer base. As of June 30, 2025, Kearny Financial maintained a strong capital position, with Common Equity Tier 1 Capital ratios of 14.49% for the Company and 13.61% for the Bank, well above regulatory minimums. Looking ahead, Kearny Financial aims to continue its growth trajectory while managing risks associated with interest rates and economic conditions.
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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