Kearny Financial Corp. Reports $10.1 Million Net Income for Quarter Ending March 31, 2026

Kearny Financial Corp. reported its financial results for the quarter ending March 31, 2026, revealing a net income of $10.1 million, or $0.16 per diluted share, compared to $6.6 million, or $0.11 per diluted share, for the same period in 2025. This increase in profitability was attributed to a rise in net interest income, which grew to $39.2 million from $34.0 million year-over-year, alongside a boost in non-interest income. The company’s total interest income slightly decreased to $79.2 million from $79.3 million, while total interest expense fell significantly to $39.9 million from $45.3 million, contributing to the improved net interest margin of 2.21%, up from 1.90%.

In terms of overall financial condition, Kearny Financial's total assets decreased by $132.8 million to $7.61 billion as of March 31, 2026, down from $7.74 billion at the end of June 2025. This decline was primarily driven by reductions in net loans receivable, cash and cash equivalents, and investment securities. Net loans receivable fell to $5.73 billion, a decrease of $32.3 million, while cash and cash equivalents dropped to $123.8 million from $167.3 million. The company also reported a decrease in investment securities available for sale, which fell to $983.3 million from $1.01 billion.

Kearny Financial's strategic developments included an increase in loans held-for-sale, which rose to $12.2 million from $5.9 million. The company also experienced a notable increase in commercial business loans, which surged by $62.5 million to $201.3 million. However, multi-family mortgage loans saw a decline of $154.7 million, reflecting a shift in the loan portfolio. The total deposits increased by $53.9 million to $5.73 billion, with a notable migration of $69.8 million from interest-bearing to non-interest-bearing accounts as part of a repricing strategy.

The allowance for credit losses decreased to $44.7 million from $46.2 million, reflecting net charge-offs and adjustments across various loan segments. Nonperforming assets increased to $52.4 million, or 0.69% of total assets, primarily due to a rise in nonperforming multi-family mortgage loans. The company maintained a strong capital position, with stockholders' equity rising to $763.0 million, supported by net income and other comprehensive income, despite cash dividends totaling $21.0 million.

Looking ahead, Kearny Financial remains focused on managing its interest rate risk and maintaining its status as a well-capitalized institution. The company is actively monitoring market conditions and adjusting its strategies to enhance profitability and shareholder value. The management's outlook suggests a cautious approach amid potential economic fluctuations, with an emphasis on maintaining liquidity and capital adequacy.