Open the filing on EDGARFor further information contact:
Keith Suchodolski, Senior Executive Vice President and Chief Operating Officer, or
Sean Byrnes, Executive Vice President and Chief Financial Officer
(973) 244-4500
KEARNY FINANCIAL CORP. ANNOUNCES THIRD QUARTER FISCAL 2026 RESULTS
AND DECLARATION OF CASH DIVIDEND
Fairfield, N.J., April 23, 2026 - Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), reported net income for the quarter ended March 31, 2026 of $10.1 million, or $0.16 per diluted share, compared to $9.4 million, or $0.15 per diluted share, for the quarter ended December 31, 2025.
The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on May 20, 2026, to stockholders of record as of May 6, 2026.
Craig L. Montanaro, President and Chief Executive Officer, commented, “We are pleased to report continued momentum in our core earnings this quarter, highlighted by our sixth consecutive quarter of net interest margin expansion. Quarter-over-quarter, net interest margin increased seven basis points as net interest income grew 3%. These results reflect the ongoing favorable repricing and remixing of our loan portfolio which, along with improving funding dynamics, positions us well for continued earnings momentum in the periods ahead.”
Mr. Montanaro continued, “During the quarter, we made strategic investments to strengthen our deposit franchise. We expanded our Corporate Banking team with the addition of four high-powered deposit-focused relationship officers who will accelerate our growth in relationship‑based middle-market commercial deposits. In parallel, we formed a new Specialty Deposits team specifically focused on select high-value deposit verticals in order to further diversify our funding sources.”
Mr. Montanaro concluded, “Our partnership with The Lab Consulting, a management consulting firm engaged to support process improvement and operational efficiency initiatives, is now well underway, and we are encouraged by the early momentum of this initiative. The opportunities identified to streamline processes, enhance automation, and improve the client experience support our commitment to operational excellence and scalable growth. Collectively, these actions position us well to continue delivering sustainable earnings improvement and long‑term shareholder value.”
Third Quarter Highlights
- Pre-tax, pre-provision net revenue increased 5.5% to $13.0 million, or $0.21 per diluted share, reflecting ongoing strengthening of core earnings.
- Net interest margin expanded by seven basis points to 2.21%, extending the momentum of margin improvement for the sixth consecutive quarter.
- Continued advancing the loan portfolio diversification strategy by growing commercial business, construction, and home equity loans by 18.5%, 14.3% and 4.0%, respectively, while strategically reducing multifamily mortgage exposure.
- Tangible book value per share improved $0.09, or 0.9%, to $10.02.
Balance Sheet
- Total assets were $7.61 billion at March 31, 2026, a decrease of $13.2 million, or 0.2%, from December 31, 2025.
- Investment securities totaled $1.09 billion at March 31, 2026, a decrease of $19.3 million, or 1.7%, from December 31, 2025.
- Loans receivable totaled $5.78 billion at March 31, 2026, an increase of $25.8 million, or 0.4%, from December 31, 2025, primarily reflecting increases in commercial and industrial (“C&I”) and construction loans, partially offset by a decrease in multifamily mortgage loans, which reflects our ongoing strategic remix of the portfolio.
- Deposits were $5.73 billion at March 31, 2026, an increase of $17.5 million, or 0.3%, from December 31, 2025.
- Borrowings were $1.06 billion at March 31, 2026, a decrease of $35.0 million, or 3.2%, from December 31, 2025, reflecting reductions in overnight borrowings, partially offset by an increase in Federal Home Loan Bank (“FHLB”) advances.
- At March 31, 2026, the Company maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.45 billion, representing 32.2% of total assets.
Earnings
Net Interest Income and Net Interest Margin
- Net interest margin expanded by seven basis points to 2.21% for the quarter ended March 31, 2026. The increase for the quarter was primarily driven by lower costs and average balances on interest-bearing liabilities, partially offset by lower average yields on interest-earning assets.
- For the quarter ended March 31, 2026, net interest income increased $1.3 million to $39.2 million from $38.0 million for the quarter ended December 31, 2025. Included in net interest income for the quarters ended March 31, 2026 and December 31, 2025, respectively, was purchase accounting accretion of $552,000 and $494,000, and loan prepayment penalty income of $422,000 and $544,000.
Non-Interest Income
- For the quarter ended March 31, 2026, non-interest income increased $523,000, or 9.4%, to $6.1 million from $5.6 million for the quarter ended December 31, 2025, primarily driven by a non-recurring pre-tax gain of $1.0 million on the sale of properties held for sale in the current period.
- Fees and service charges decreased $373,000, or 28.8%, to $922,000 for the quarter ended March 31, 2026 from $1.3 million for the quarter ended December 31, 2025. The decrease was primarily driven by the absence of $245,000 in loan related fee income associated with the payoff of a single construction loan recorded in the prior period.
- Electronic banking fees and charges decreased $84,000, or 17.8%, to $389,000 for the quarter ended March 31, 2026 from $473,000 for the quarter ended December 31, 2025, primarily driven by lower income from interchange fees.
Non-Interest Expense
- For the quarter ended March 31, 2026, non-interest expense increased $1.1 million, or 3.6%, to $32.3 million from $31.2 million for the quarter ended December 31, 2025, primarily driven by increases in salary and benefits, net occupancy, and advertising, partially offset by decreases in other expense.
- Salary and benefits expense increased $943,000 to $19.3 million for the quarter ended March 31, 2026 from $18.4 million for the quarter ended December 31, 2025, primarily driven by an increase in payroll taxes and employee benefits associated with the start of a new calendar year and a non-recurring severance charge of $205,000 recorded in the current period.
- Net occupancy expense of premises increased $375,000 to $3.3 million for the quarter ended March 31, 2026 from $2.9 million for the quarter ended December 31, 2025, driven by seasonally higher snow removal expenses of $527,000 recorded in the current period.
- Advertising and marketing expense increased $253,000 to $665,000 for the quarter ended March 31, 2026 from $412,000 for the quarter ended December 31, 2025, primarily driven by higher advertising expenses across various formats.
- Other expense decreased $377,000 to $3.5 million for the quarter March 31, 2026 from $3.8 million for the quarter ended December 31, 2025, primarily driven by the absence of non-recurring professional fees incurred in the prior period associated with the Company’s partnership with The Lab Consulting and a decline in fraud losses in the current period. Changes in the other components of non-interest expense between comparative periods reflected normal operating fluctuations within those line items.
Income Taxes
- Income tax expense totaled $2.5 million for the quarter ended March 31, 2026 compared to $2.3 million for the quarter ended December 31, 2025, resulting in an effective tax rate of 19.8% in each respective period.
Asset Quality
- The balance of non-performing assets increased $1.1 million to $52.4 million, or 0.69% of total assets, at March 31, 2026 from $51.3 million, or 0.67% of total assets, at December 31, 2025.
- Net charge-offs totaled $626,000, or 0.04% of average loans, on an annualized basis, for the quarter ended March 31, 2026, compared to $669,000, or 0.05% of average loans, on an annualized basis, for the quarter ended December 31, 2025.
- For the quarter ended March 31, 2026, the Company recorded a provision for credit losses of $391,000, compared to $567,000 for the quarter ended December 31, 2025. The provision for credit loss expense for the quarter ended March 31, 2026 was primarily due to loan growth and charge-offs associated with certain individually evaluated loans, partially offset by quantitative risk factor adjustments.
- Allowance for credit losses (“ACL”) was $44.7 million, or 0.77% of total loans, at March 31, 2026, a decrease of $235,000 from $45.0 million, or 0.78% of total loans, at December 31, 2025. The decrease in the ACL from December 31, 2025 was primarily driven by loan charge-offs, partially offset by a provision for credit losses, as noted above.
Capital
- For the quarter ended March 31, 2026, book value per share increased $0.09, or 0.8%, to $11.79 while tangible book value per share increased $0.09, or 0.9%, to $10.02.
- At March 31, 2026, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $68.7 million, partially offset by after-tax unrealized gains on derivatives of $2.7 million. After-tax net unrecognized losses on securities held to maturity of $8.2 million were not reflected in total stockholders’ equity.
- At March 31, 2026, the Company’s tangible equity to tangible assets ratio equaled 8.65%. Additionally, the regulatory capital ratios of both the Company and the Bank continued to be in excess of all applicable regulatory requirements as of March 31, 2026.
This earnings release should be read in conjunction with Kearny Financial Corp.’s Q3 2026 Investor Presentation, a copy of which is available through the Investor Relations link located at the bottom of the page of our website at www.kearnybank.com and via a Current Report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov.
Statements contained in this news release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company does not undertake and specifically disclaims any obligation to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.
Category: Earnings
Linked-Quarter Comparative Financial Analysis
Consolidated Balance Sheets
(Unaudited)
| (Dollars and Shares in Thousands, Except Per Share Data) | March 31, 2026 | December 31, 2025 | Variance or Change | Variance or Change Pct. |
| Assets | | | | |
| Cash and cash equivalents | $123,836 | | $147,340 | | $(23,504) | | -16.0% |
| Securities available for sale | 983,325 | | 1,000,397 | | (17,072) | | -1.7% |
| Securities held to maturity | 110,581 | | 112,800 | | (2,219) | | -2.0% |
| Loans held-for-sale | 12,183 | | 8,786 | | 3,397 | | 38.7% |
| Loans receivable | 5,779,181 | | 5,753,393 | | 25,788 | | 0.4% |
| Less: allowance for credit losses on loans | (44,723) | | (44,958) | | (235) | | -0.5% |
| Net loans receivable | 5,734,458 | | 5,708,435 | | 26,023 | | 0.5% |
| Premises and equipment | 41,896 | | 42,559 | | (663) | | -1.6% |
| Federal Home Loan Bank stock | 55,737 | | 57,212 | | (1,475) | | -2.6% |
| Accrued interest receivable | 28,304 | | 27,420 | | 884 | | 3.2% |
| Goodwill | 113,525 | | 113,525 | | - | | - % |
| Core deposit intangible | 1,080 | | 1,198 | | (118) | | -9.8% |
| Bank owned life insurance | 312,050 | | 309,404 | | 2,646 | | 0.9% |
| Deferred income taxes, net | 50,961 | | 51,617 | | (656) | | -1.3% |
| Other assets | 39,720 | | 40,185 | | (465) | | -1.2% |
| Total assets | $7,607,656 | | $7,620,878 | | $(13,222) | | -0.2% |
| Liabilities | | | | |
| Deposits: | | | | |
| Non-interest-bearing | $631,506 | | $627,180 | | $4,326 | | 0.7% |
| Interest-bearing | 5,097,576 | | 5,084,370 | | 13,206 | | 0.3% |
| Total deposits | 5,729,082 | | 5,711,550 | | 17,532 | | 0.3% |
| Borrowings | 1,060,000 | | 1,095,000 | | (35,000) | | -3.2% |
| Advance payments by borrowers for taxes | 19,317 | | 18,474 | | 843 | | 4.6% |
| Other liabilities | 36,225 | | 38,458 | | (2,233) | | -5.8% |
| Total liabilities | 6,844,624 | | 6,863,482 | | (18,858) | | -0.3% |
| Stockholders' Equity | | | | |
| Common stock | 648 | | 648 | | - | | - % |
| Paid-in capital | 495,442 | | 494,959 | | 483 | | 0.1% |
| Retained earnings | 349,881 | | 346,749 | | 3,132 | | 0.9% |
| Unearned ESOP shares | (17,511) | | (17,997) | | 486 | | 2.7% |
| Accumulated other comprehensive loss | (65,428) | | (66,963) | | 1,535 | | 2.3% |
| Total stockholders' equity | 763,032 | | 757,396 | | 5,636 | | 0.7% |
| Total liabilities and stockholders' equity | $7,607,656 | | $7,620,878 | | $(13,222) | | -0.2% |
| Consolidated capital ratios | | | | |
| Equity to assets | 10.03% | | 9.94% | | 0.09% | | |
| Tangible equity to tangible assets | 8.65% | | 8.56% | | 0.09% | | |
| Share data | | | | |
| Outstanding shares | | 64,739 | | 64,739 | | - | - % |
| Book value per share | $11.79 | | $11.70 | | $0.09 | | 0.8% |
| Tangible book value per share | $10.02 | | $9.93 | | $0.09 | | 0.9% |
(1)Tangible equity equals total stockholders' equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.
(2)Tangible book value equals total stockholders' equity reduced by goodwill and core deposit intangible assets.
Consolidated Statements of Income
(Unaudited)
| (Dollars and Shares in Thousands, Except Per Share Data) | Three Months Ended | Variance or Change | Variance or Change Pct. |
| March 31, 2026 | December 31, 2025 | | |
| Interest income | | | | |
| Loans | $66,310 | | $67,410 | | $(1,100) | | -1.6% |
| Taxable investment securities | 11,425 | | 11,623 | | (198) | | -1.7% |
| Tax-exempt investment securities | 34 | | 35 | | (1) | | -2.9% |
| Other interest-earning assets | 1,400 | | 1,584 | | (184) | | -11.6% |
| Total interest income | 79,169 | | 80,652 | | (1,483) | | -1.8% |
| Interest expense | | | | |
| Deposits | 31,045 | | 33,148 | | (2,103) | | -6.3% |
| Borrowings | 8,888 | | 9,535 | | (647) | | -6.8% |
| Total interest expense | 39,933 | | 42,683 | | (2,750) | | -6.4% |
| Net interest income | 39,236 | | 37,969 | | 1,267 | | 3.3% |
| Provision for credit losses | 391 | | 567 | | (176) | | -31.0% |
| Net interest income after provision for credit losses | 38,845 | | 37,402 | | 1,443 | | 3.9% |
| Non-interest income | | | | |
| Fees and service charges | 922 | | 1,295 | | (373) | | -28.8% |
| Gain on sale of loans | 193 | | 224 | | (31) | | -13.8% |
| Income from bank owned life insurance | 2,646 | | 2,710 | | (64) | | -2.4% |
| Electronic banking fees and charges | 389 | | 473 | | (84) | | -17.8% |
| Other income | 1,944 | | 869 | | 1,075 | | 123.7% |
| Total non-interest income | 6,094 | | 5,571 | | 523 | | 9.4% |
| Non-interest expense | | | | |
| Salaries and employee benefits | 19,316 | | 18,373 | | 943 | | 5.1% |
| Net occupancy expense of premises | 3,263 | | 2,888 | | 375 | | 13.0% |
| Equipment and systems | 3,975 | | 4,007 | | (32) | | -0.8% |
| Advertising and marketing | 665 | | 412 | | 253 | | 61.4% |
| Federal deposit insurance premium | 1,302 | | 1,357 | | (55) | | -4.1% |
| Directors' compensation | 307 | | 306 | | 1 | | 0.3% |
| Other expense | 3,471 | | 3,848 | | (377) | | -9.8% |
| Total non-interest expense | 32,299 | | 31,191 | | 1,108 | | 3.6% |
| Income before income taxes | 12,640 | | 11,782 | | 858 | | 7.3% |
| Income taxes | 2,503 | | 2,333 | | 170 | | 7.3% |
| Net income | $10,137 | | $9,449 | | $688 | | 7.3% |
| Net income per common share (EPS) | | | | |
| Basic | $0.16 | | $0.15 | | $0.01 | | |
| Diluted | $0.16 | | $0.15 | | $0.01 | | |
| Dividends declared | | | | |
| Cash dividends declared per common share | $0.11 | | $0.11 | | $ - | | |
| Cash dividends declared | $7,005 | | $6,987 | | $18 | | |
| Dividend payout ratio | 69.1% | | 73.9% | | -4.8% | | |
| Weighted average number of common shares outstanding | | | | |
| Basic | | 62,908 | | 62,858 | | 50 | |
| Diluted | | 63,251 | | 63,061 | | 190 | |
Average Balance Sheet Data
(Unaudited)
| (Dollars in Thousands) | Three Months Ended | Variance or Change | Variance or Change Pct. |
| March 31, 2026 | December 31, 2025 | |
| Assets | | | | |
| Interest-earning assets: | | | | |
| Loans receivable, including loans held for sale | $5,785,095 | $5,778,680 | $6,415 | 0.1% |
| Taxable investment securities | 1,194,487 | 1,185,602 | 8,885 | 0.7% |
| Tax-exempt investment securities | 5,669 | 5,902 | (233) | -3.9% |
| Other interest-earning assets | 106,967 | 123,475 | (16,508) | -13.4% |
| Total interest-earning assets | 7,092,218 | 7,093,659 | (1,441) | -0.0% |
| Non-interest-earning assets | 455,725 | 455,752 | (27) | -0.0% |
| Total assets | $7,547,943 | $7,549,411 | $(1,468) | -0.0% |
| Liabilities and Stockholders' Equity | | | | |
| Interest-bearing liabilities: | | | | |
| Deposits: | | | | |
| Interest-bearing demand | $2,402,177 | $2,385,397 | $16,780 | 0.7% |
| Savings | 761,090 | 759,247 | 1,843 | 0.2% |
| Certificates of deposit (retail) | 1,181,526 | 1,201,950 | (20,424) | -1.7% |
| Certificates of deposit (brokered) | 755,461 | 756,179 | (718) | -0.1% |
| Total interest-bearing deposits | 5,100,254 | 5,102,773 | (2,519) | -0.0% |
| Borrowings: | | | | |
| Federal Home Loan Bank advances | 861,445 | 998,760 | (137,315) | -13.7% |
| Other borrowings | 133,833 | 38,478 | 95,355 | 247.8% |
| Total borrowings | 995,278 | 1,037,238 | (41,960) | -4.0% |
| Total interest-bearing liabilities | 6,095,532 | 6,140,011 | (44,479) | -0.7% |
| Non-interest-bearing liabilities: | | | | |
| Non-interest-bearing deposits | 633,494 | 595,035 | 38,459 | 6.5% |
| Other non-interest-bearing liabilities | 59,644 | 59,447 | 197 | 0.3% |
| Total non-interest-bearing liabilities | 693,138 | 654,482 | 38,656 | 5.9% |
| Total liabilities | 6,788,670 | 6,794,493 | (5,823) | -0.1% |
| Stockholders' equity | 759,273 | 754,918 | 4,355 | 0.6% |
| Total liabilities and stockholders' equity | $7,547,943 | $7,549,411 | $(1,468) | -0.0% |
| Average interest-earning assets to average interest-bearing liabilities | 116.35% | 115.53% | 0.82% | 0.7% |
Performance Ratio Highlights
(Unaudited)
| Three Months Ended | Variance or Change |
|---|
| March 31, 2026 | December 31, 2025 | |
|---|
| Average yield on interest-earning assets: | | | |
| Loans receivable, including loans held for sale | 4.58% | 4.67% | -0.09% |
| Taxable investment securities | 3.83% | 3.92% | -0.09% |
| Tax-exempt investment securities | 2.37% | 2.36% | 0.01% |
| Other interest-earning assets | 5.24% | 5.13% | 0.11% |
| Total interest-earning assets | 4.47% | 4.55% | -0.08% |
| Average cost of interest-bearing liabilities: | | | |
| Deposits: | | | |
| Interest-bearing demand | 2.34% | 2.51% | -0.17% |
| Savings | 1.26% | 1.40% | -0.14% |
| Certificates of deposit (retail) | 3.20% | 3.45% | -0.25% |
| Certificates of deposit (brokered) | 2.71% | 2.72% | -0.01% |
| Total interest-bearing deposits | 2.43% | 2.60% | -0.17% |
| Borrowings: | | | |
| Federal Home Loan Bank advances | 3.56% | 3.66% | -0.10% |
| Other borrowings | 3.66% | 4.13% | -0.47% |
| Total borrowings | 3.57% | 3.68% | -0.11% |
| Total interest-bearing liabilities | 2.62% | 2.78% | -0.16% |
| Interest rate spread | 1.85% | 1.77% | 0.08% |
| Net interest margin | 2.21% | 2.14% | 0.07% |
| Non-interest income to average assets (annualized) | 0.32% | 0.30% | 0.02% |
| Non-interest expense to average assets (annualized) | 1.71% | 1.65% | 0.06% |
| Efficiency ratio | 71.25% | 71.64% | -0.39% |
| Return on average assets (annualized) | 0.54% | 0.50% | 0.04% |
| Return on average equity (annualized) | 5.34% | 5.01% | 0.33% |
| Return on average tangible equity (annualized) | 6.34% | 5.96% | 0.38% |
(1)The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.
(2)Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.
(3)Net interest income divided by average interest-earning assets.
(4)Non-interest expense divided by the sum of net interest income and non-interest income.
(5)Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets.
Five-Quarter Financial Trend Analysis
Consolidated Balance Sheets
| (Dollars and Shares in Thousands, Except Per Share Data) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 |
| (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | (Unaudited) |
| Assets | | | | | |
| Cash and cash equivalents | $123,836 | | $147,340 | | $130,139 | | $167,269 | | $126,095 | |
| Securities available for sale | 983,325 | | 1,000,397 | | 1,016,182 | | 1,012,969 | | 1,003,393 | |
| Securities held to maturity | 110,581 | | 112,800 | | 116,681 | | 120,217 | | 124,859 | |
| Loans held-for-sale | 12,183 | | 8,786 | | 6,650 | | 5,931 | | 6,187 | |
| Loans receivable | 5,779,181 | | 5,753,393 | | 5,767,419 | | 5,812,937 | | 5,846,175 | |
| Less: allowance for credit losses on loans | (44,723) | | (44,958) | | (45,060) | | (46,191) | | (44,455) | |
| Net loans receivable | 5,734,458 | | 5,708,435 | | 5,722,359 | | 5,766,746 | | 5,801,720 | |
| Premises and equipment | 41,896 | | 42,559 | | 43,222 | | 43,897 | | 44,192 | |
| Federal Home Loan Bank stock | 55,737 | | 57,212 | | 62,011 | | 64,261 | | 62,261 | |
| Accrued interest receivable | 28,304 | | 27,420 | | 29,460 | | 28,098 | | 28,521 | |
| Goodwill | 113,525 | | 113,525 | | 113,525 | | 113,525 | | 113,525 | |
| Core deposit intangible | 1,080 | | 1,198 | | 1,317 | | 1,436 | | 1,554 | |
| Bank owned life insurance | 312,050 | | 309,404 | | 307,248 | | 304,717 | | 303,629 | |
| Deferred income taxes, net | 50,961 | | 51,617 | | 51,587 | | 55,203 | | 52,913 | |
| Other assets | 39,720 | | 40,185 | | 47,629 | | 56,181 | | 64,292 | |
| Total assets | $7,607,656 | | $7,620,878 | | $7,648,010 | | $7,740,450 | | $7,733,141 | |
| Liabilities | | | | | |
| Deposits: | | | | | |
| Non-interest-bearing | $631,506 | | $627,180 | | $578,481 | | $582,045 | | $587,118 | |
| Interest-bearing | 5,097,576 | | 5,084,370 | | 5,053,401 | | 5,093,172 | | 5,120,230 | |
| Total deposits | 5,729,082 | | 5,711,550 | | 5,631,882 | | 5,675,217 | | 5,707,348 | |
| Borrowings | 1,060,000 | | 1,095,000 | | 1,206,497 | | 1,256,491 | | 1,213,976 | |
| Advance payments by borrowers for taxes | 19,317 | | 18,474 | | 19,261 | | 19,317 | | 19,981 | |
| Other liabilities | 36,225 | | 38,458 | | 37,166 | | 43,463 | | 43,723 | |
| Total liabilities | 6,844,624 | | 6,863,482 | | 6,894,806 | | 6,994,488 | | 6,985,028 | |
| Stockholders' Equity | | | | | |
| Common stock | 648 | | 648 | | 648 | | 646 | | 646 | |
| Paid-in capital | 495,442 | | 494,959 | | 494,490 | | 494,546 | | 494,131 | |
| Retained earnings | 349,881 | | 346,749 | | 344,287 | | 341,744 | | 341,921 | |
| Unearned ESOP shares | (17,511) | | (17,997) | | (18,484) | | (18,970) | | (19,457) | |
| Accumulated other comprehensive loss | (65,428) | | (66,963) | | (67,737) | | (72,004) | | (69,128) | |
| Total stockholders' equity | 763,032 | | 757,396 | | 753,204 | | 745,962 | | 748,113 | |
| Total liabilities and stockholders' equity | $7,607,656 | | $7,620,878 | | $7,648,010 | | $7,740,450 | | $7,733,141 | |
| Consolidated capital ratios | | | | | |
| Equity to assets | 10.03% | | 9.94% | | 9.85% | | 9.64% | | 9.67% | |
| Tangible equity to tangible assets | 8.65% | | 8.56% | | 8.47% | | 8.27% | | 8.31% | |
| Share data | | | | | |
| Outstanding shares | | 64,739 | | 64,739 | | 64,739 | | 64,577 | | 64,580 |
| Book value per share | $11.79 | | $11.70 | | $11.63 | | $11.55 | | $11.58 | |
| Tangible book value per share | $10.02 | | $9.93 | | $9.86 | | $9.77 | | $9.80 | |
(1)Tangible equity equals total stockholders' equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.
(2)Tangible book value equals total stockholders' equity reduced by goodwill and core deposit intangible assets.
Supplemental Balance Sheet Highlights
(Unaudited)
| (Dollars in Thousands) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 |
| Loan portfolio composition: | | | | | |
| Commercial loans: | | | | | |
| Multi-family mortgage | $2,555,001 | $2,619,124 | $2,640,737 | $2,709,654 | $2,733,406 |
| Nonresidential mortgage | 1,012,422 | 990,178 | 988,969 | 986,556 | 988,074 |
| Commercial business | 201,277 | 169,884 | 142,304 | 138,755 | 140,224 |
| Construction | 207,765 | 181,766 | 189,626 | 177,713 | 174,722 |
| Total commercial loans | 3,976,465 | 3,960,952 | 3,961,636 | 4,012,678 | 4,036,426 |
| One- to four-family residential mortgage | 1,741,023 | 1,730,543 | 1,749,362 | 1,748,591 | 1,761,465 |
| Consumer loans: | | | | | |
| Home equity loans | 61,379 | 59,046 | 54,116 | 50,737 | 49,699 |
| Other consumer | 2,377 | 2,523 | 2,487 | 2,533 | 2,859 |
| Total consumer loans | 63,756 | 61,569 | 56,603 | 53,270 | 52,558 |
| Total loans, excluding yield adjustments | 5,781,244 | 5,753,064 | 5,767,601 | 5,814,539 | 5,850,449 |
| Unaccreted yield adjustments | (2,063) | 329 | (182) | (1,602) | (4,274) |
| Loans receivable, net of yield adjustments | 5,779,181 | 5,753,393 | 5,767,419 | 5,812,937 | 5,846,175 |
| Less: allowance for credit losses on loans | (44,723) | (44,958) | (45,060) | (46,191) | (44,455) |
| Net loans receivable | $5,734,458 | $5,708,435 | $5,722,359 | $5,766,746 | $5,801,720 |
| Asset quality: | | | | | |
| Nonperforming assets: | | | | | |
| Accruing loans - 90 days and over past due | $ - | $ - | $20,494 | $ - | $ - |
| Nonaccrual loans | 52,379 | 51,306 | 44,085 | 45,597 | 37,683 |
| Total nonperforming loans | 52,379 | 51,306 | 64,579 | 45,597 | 37,683 |
| Nonaccrual loans held-for-sale | - | - | - | - | - |
| Other real estate owned | - | - | - | - | - |
| Total nonperforming assets | $52,379 | $51,306 | $64,579 | $45,597 | $37,683 |
| Nonperforming loans (% total loans) | 0.91% | 0.89% | 1.12% | 0.78% | 0.64% |
| Nonperforming assets (% total assets) | 0.69% | 0.67% | 0.84% | 0.59% | 0.49% |
| Classified loans | $97,384 | $97,542 | $117,780 | $118,418 | $113,470 |
| Allowance for credit losses on loans (ACL): | | | | | |
| ACL to total loans | 0.77% | 0.78% | 0.78% | 0.79% | 0.76% |
| ACL to nonperforming loans | 85.38% | 87.63% | 69.78% | 101.30% | 117.97% |
| Net charge-offs | $626 | $669 | $1,049 | $49 | $368 |
| Average net charge-off rate (annualized) | 0.04% | 0.05% | 0.07% | 0.00% | 0.03% |
Supplemental Balance Sheet Highlights
(Unaudited)
| (Dollars in Thousands) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 |
| Funding composition: | | | | | |
| Deposits: | | | | | |
| Non-interest-bearing deposits | $631,506 | $627,180 | $578,481 | $582,045 | $587,118 |
| Interest-bearing demand | 2,375,565 | 2,376,825 | 2,334,560 | 2,362,222 | 2,410,925 |
| Savings | 763,016 | 769,742 | 751,253 | 754,376 | 758,239 |
| Certificates of deposit (retail) | 1,201,752 | 1,180,370 | 1,208,408 | 1,218,920 | 1,218,479 |
| Certificates of deposit (brokered) | 757,243 | 757,433 | 759,180 | 757,654 | 732,587 |
| Interest-bearing deposits | 5,097,576 | 5,084,370 | 5,053,401 | 5,093,172 | 5,120,230 |
| Total deposits | 5,729,082 | 5,711,550 | 5,631,882 | 5,675,217 | 5,707,348 |
| Borrowings: | | | | | |
| Federal Home Loan Bank advances | 900,000 | 800,000 | 1,006,497 | 1,106,491 | 1,028,976 |
| Overnight borrowings | 160,000 | 295,000 | 200,000 | 150,000 | 185,000 |
| Total borrowings | 1,060,000 | 1,095,000 | 1,206,497 | 1,256,491 | 1,213,976 |
| Total funding | $6,789,082 | $6,806,550 | $6,838,379 | $6,931,708 | $6,921,324 |
| Loans as a % of deposits | 100.3% | 100.1% | 101.7% | 101.7% | 101.8% |
| Deposits as a % of total funding | 84.4% | 83.9% | 82.4% | 81.9% | 82.5% |
| Borrowings as a % of total funding | 15.6% | 16.1% | 17.6% | 18.1% | 17.5% |
| Uninsured deposits: | | | | | |
| Uninsured deposits (reported) | $2,199,708 | $2,158,440 | $2,040,021 | $1,989,095 | $1,959,070 |
| Uninsured deposits (adjusted) | $839,094 | $800,998 | $804,209 | $813,780 | $799,238 |
(1)Uninsured deposits of Kearny Bank.
(2)Uninsured deposits of Kearny Bank adjusted to exclude deposits of its wholly-owned subsidiary and holding company and collateralized deposits of state and local governments.
Consolidated Statements of Income
(Unaudited)
| Three Months Ended |
|---|
| (Dollars and Shares in Thousands, Except Per Share Data) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 |
| Interest income | | | | | |
| Loans | $66,310 | | $67,410 | | $68,349 | | $66,485 | | $64,768 | |
| Taxable investment securities | 11,425 | | 11,623 | | 12,600 | | 12,322 | | 12,738 | |
| Tax-exempt investment securities | 34 | | 35 | | 41 | | 49 | | 55 | |
| Other interest-earning assets | 1,400 | | 1,584 | | 1,518 | | 1,549 | | 1,773 | |
| Total interest income | 79,169 | | 80,652 | | 82,508 | | 80,405 | | 79,334 | |
| Interest expense | | | | | |
| Deposits | 31,045 | | 33,148 | | 33,931 | | 33,607 | | 34,912 | |
| Borrowings | 8,888 | | 9,535 | | 10,873 | | 10,955 | | 10,380 | |
| Total interest expense | 39,933 | | 42,683 | | 44,804 | | 44,562 | | 45,292 | |
| Net interest income | 39,236 | | 37,969 | | 37,704 | | 35,843 | | 34,042 | |
| Provision for (reversal of) credit losses | 391 | | 567 | | (82) | | 1,785 | | 366 | |
| Net interest income after provision for (reversal of) credit losses | 38,845 | | 37,402 | | 37,786 | | 34,058 | | 33,676 | |
| Non-interest income | | | | | |
| Fees and service charges | 922 | | 1,295 | | 892 | | 655 | | 573 | |
| Gain on sale of loans | 193 | | 224 | | 199 | | 190 | | 112 | |
| Income from bank owned life insurance | 2,646 | | 2,710 | | 2,689 | | 2,869 | | 2,617 | |
| Electronic banking fees and charges | 389 | | 473 | | 416 | | 442 | | 391 | |
| Other income | 1,944 | | 869 | | 1,651 | | 835 | | 869 | |
| Total non-interest income | 6,094 | | 5,571 | | 5,847 | | 4,991 | | 4,562 | |
| Non-interest expense | | | | | |
| Salaries and employee benefits | 19,316 | | 18,373 | | 18,745 | | 18,093 | | 17,700 | |
| Net occupancy expense of premises | 3,263 | | 2,888 | | 3,307 | | 2,820 | | 3,075 | |
| Equipment and systems | 3,975 | | 4,007 | | 3,974 | | 4,030 | | 3,921 | |
| Advertising and marketing | 665 | | 412 | | 562 | | 615 | | 609 | |
| Federal deposit insurance premium | 1,302 | | 1,357 | | 1,301 | | 1,395 | | 1,450 | |
| Directors' compensation | 307 | | 306 | | 307 | | 307 | | 326 | |
| Other expense | 3,471 | | 3,848 | | 3,470 | | 3,633 | | 3,309 | |
| Total non-interest expense | 32,299 | | 31,191 | | 31,666 | | 30,893 | | 30,390 | |
| Income before income taxes | 12,640 | | 11,782 | | 11,967 | | 8,156 | | 7,848 | |
| Income taxes | 2,503 | | 2,333 | | 2,461 | | 1,387 | | 1,200 | |
| Net income | $10,137 | | $9,449 | | $9,506 | | $6,769 | | $6,648 | |
| Net income per common share (EPS) | | | | | |
| Basic | $0.16 | | $0.15 | | $0.15 | | $0.11 | | $0.11 | |
| Diluted | $0.16 | | $0.15 | | $0.15 | | $0.11 | | $0.11 | |
| Dividends declared | | | | | |
| Cash dividends declared per common share | $0.11 | | $0.11 | | $0.11 | | $0.11 | | $0.11 | |
| Cash dividends declared | $7,005 | | $6,987 | | $6,963 | | $6,946 | | $6,933 | |
| Dividend payout ratio | 69.1% | | 73.9% | | 73.2% | | 102.6% | | 104.3% | |
| Weighted average number of common shares outstanding | | | | | |
| Basic | | 62,908 | | 62,858 | | 62,741 | | 62,597 | | 62,548 |
| Diluted | | 63,251 | | 63,061 | | 62,951 | | 62,755 | | 62,713 |
Average Balance Sheet Data
(Unaudited)
| Three Months Ended |
|---|
| (Dollars in Thousands) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 |
| Assets | | | | | |
| Interest-earning assets: | | | | | |
| Loans receivable, including loans held-for-sale | $5,785,095 | $5,778,680 | $5,806,767 | $5,830,421 | $5,805,045 |
| Taxable investment securities | 1,194,487 | 1,185,602 | 1,236,705 | 1,227,825 | 1,251,612 |
| Tax-exempt investment securities | 5,669 | 5,902 | 6,856 | 8,039 | 9,135 |
| Other interest-earning assets | 106,967 | 123,475 | 115,776 | 117,622 | 110,736 |
| Total interest-earning assets | 7,092,218 | 7,093,659 | 7,166,104 | 7,183,907 | 7,176,528 |
| Non-interest-earning assets | 455,725 | 455,752 | 453,215 | 454,975 | 457,206 |
| Total assets | $7,547,943 | $7,549,411 | $7,619,319 | $7,638,882 | $7,633,734 |
| Liabilities and Stockholders' Equity | | | | | |
| Interest-bearing liabilities: | | | | | |
| Deposits: | | | | | |
| Interest-bearing demand | $2,402,177 | $2,385,397 | $2,343,809 | $2,342,523 | $2,405,974 |
| Savings | 761,090 | 759,247 | 754,244 | 754,192 | 751,243 |
| Certificates of deposit (retail) | 1,181,526 | 1,201,950 | 1,211,026 | 1,215,661 | 1,215,767 |
| Certificates of deposit (brokered) | 755,461 | 756,179 | 755,813 | 744,345 | 730,612 |
| Total interest-bearing deposits | 5,100,254 | 5,102,773 | 5,064,892 | 5,056,721 | 5,103,596 |
| Borrowings: | | | | | |
| Federal Home Loan Bank advances | 861,445 | 998,760 | 1,077,146 | 1,083,902 | 1,028,958 |
| Other borrowings | 133,833 | 38,478 | 85,489 | 107,582 | 93,389 |
| Total borrowings | 995,278 | 1,037,238 | 1,162,635 | 1,191,484 | 1,122,347 |
| Total interest-bearing liabilities | 6,095,532 | 6,140,011 | 6,227,527 | 6,248,205 | 6,225,943 |
| Non-interest-bearing liabilities: | | | | | |
| Non-interest-bearing deposits | 633,494 | 595,035 | 581,625 | 582,085 | 602,647 |
| Other non-interest-bearing liabilities | 59,644 | 59,447 | 65,024 | 64,405 | 59,919 |
| Total non-interest-bearing liabilities | 693,138 | 654,482 | 646,649 | 646,490 | 662,566 |
| Total liabilities | 6,788,670 | 6,794,493 | 6,874,176 | 6,894,695 | 6,888,509 |
| Stockholders' equity | 759,273 | 754,918 | 745,143 | 744,187 | 745,225 |
| Total liabilities and stockholders' equity | $7,547,943 | $7,549,411 | $7,619,319 | $7,638,882 | $7,633,734 |
| Average interest-earning assets to average interest-bearing liabilities | 116.35% | 115.53% | 115.07% | 114.98% | 115.27% |
Performance Ratio Highlights
| Three Months Ended |
|---|
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 |
|---|
| Average yield on interest-earning assets: | | | | | |
| Loans receivable, including loans held-for-sale | 4.58% | 4.67% | 4.71% | 4.56% | 4.46% |
| Taxable investment securities | 3.83% | 3.92% | 4.08% | 4.01% | 4.07% |
| Tax-exempt investment securities | 2.37% | 2.36% | 2.42% | 2.43% | 2.43% |
| Other interest-earning assets | 5.24% | 5.13% | 5.24% | 5.27% | 6.40% |
| Total interest-earning assets | 4.47% | 4.55% | 4.61% | 4.48% | 4.42% |
| Average cost of interest-bearing liabilities: | | | | | |
| Deposits: | | | | | |
| Interest-bearing demand | 2.34% | 2.51% | 2.63% | 2.63% | 2.73% |
| Savings | 1.26% | 1.40% | 1.41% | 1.33% | 1.30% |
| Certificates of deposit (retail) | 3.20% | 3.45% | 3.56% | 3.56% | 3.73% |
| Certificates of deposit (brokered) | 2.71% | 2.72% | 2.67% | 2.62% | 2.58% |
| Total interest-bearing deposits | 2.43% | 2.60% | 2.68% | 2.66% | 2.74% |
| Borrowings: | | | | | |
| Federal Home Loan Bank advances | 3.56% | 3.66% | 3.69% | 3.60% | 3.63% |
| Other borrowings | 3.66% | 4.13% | 4.44% | 4.45% | 4.41% |
| Total borrowings | 3.57% | 3.68% | 3.74% | 3.68% | 3.70% |
| Total interest-bearing liabilities | 2.62% | 2.78% | 2.88% | 2.85% | 2.91% |
| Interest rate spread | 1.85% | 1.77% | 1.73% | 1.62% | 1.51% |
| Net interest margin | 2.21% | 2.14% | 2.10% | 2.00% | 1.90% |
| Non-interest income to average assets (annualized) | 0.32% | 0.30% | 0.31% | 0.26% | 0.24% |
| Non-interest expense to average assets (annualized) | 1.71% | 1.65% | 1.66% | 1.62% | 1.59% |
| Efficiency ratio | 71.25% | 71.64% | 72.71% | 75.66% | 78.72% |
| Return on average assets (annualized) | 0.54% | 0.50% | 0.50% | 0.35% | 0.35% |
| Return on average equity (annualized) | 5.34% | 5.01% | 5.10% | 3.64% | 3.57% |
| Return on average tangible equity (annualized) | 6.34% | 5.96% | 6.09% | 4.36% | 4.28% |
(1)The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.
(2)Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.
(3)Net interest income divided by average interest-earning assets.
(4)Non-interest expense divided by the sum of net interest income and non-interest income.
(5)Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets.
The following tables provide a reconciliation of certain financial measures calculated in accordance with Generally Accepted Accounting Principles (“GAAP”) (as reported) and non-GAAP measures. These non-GAAP measures provide additional information which allow readers to evaluate the ongoing performance of the Company. They are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. In all cases, it should be understood that non-GAAP per share measures do not depict amounts that accrue directly to the benefit of shareholders.
Reconciliation of GAAP to Non-GAAP
(Unaudited)
| Three Months Ended |
|---|
| (Dollars and Shares in Thousands, Except Per Share Data) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 |
| Adjusted net income: | | | | | |
| Net income (GAAP) | $10,137 | | $9,449 | | $9,506 | | $6,769 | | $6,648 | |
| Non-recurring transactions - net of tax: | | | | | |
| Branch consolidation expenses | - | | - | | 178 | | - | | - | |
| Gain on sale of property held for sale | (724) | | - | | (532) | | - | | - | |
| Adjusted net income | $9,413 | | $9,449 | | $9,152 | | $6,769 | | $6,648 | |
| Calculation of pre-tax, pre-provision net revenue: | | | | | |
| Net income (GAAP) | $10,137 | | $9,449 | | $9,506 | | $6,769 | | $6,648 | |
| Adjustments to net income (GAAP): | | | | | |
| Provision for income taxes | 2,503 | | 2,333 | | 2,461 | | 1,387 | | 1,200 | |
| Provision for (reversal of) credit losses | 391 | | 567 | | (82) | | 1,785 | | 366 | |
| Pre-tax, pre-provision net revenue (non-GAAP) | $13,031 | | $12,349 | | $11,885 | | $9,941 | | $8,214 | |
| Adjusted earnings per share: | | | | | |
| Weighted average common shares - basic | | 62,908 | | 62,858 | | 62,741 | | 62,597 | | 62,548 |
| Weighted average common shares - diluted | | 63,251 | | 63,061 | | 62,951 | | 62,755 | | 62,713 |
| Earnings per share - basic (GAAP) | $0.16 | | $0.15 | | $0.15 | | $0.11 | | $0.11 | |
| Earnings per share - diluted (GAAP) | $0.16 | | $0.15 | | $0.15 | | $0.11 | | $0.11 | |
| Adjusted earnings per share - basic (non-GAAP) | $0.15 | | $0.15 | | $0.15 | | $0.11 | | $0.11 | |
| Adjusted earnings per share - diluted (non-GAAP) | $0.15 | | $0.15 | | $0.15 | | $0.11 | | $0.11 | |
| Pre-tax, pre-provision net revenue per share: | | | | | |
| Pre-tax, pre-provision net revenue per share - basic (non-GAAP) | $0.21 | | $0.20 | | $0.19 | | $0.16 | | $0.13 | |
| Pre-tax, pre-provision net revenue per share - diluted (non-GAAP) | $0.21 | | $0.20 | | $0.19 | | $0.16 | | $0.13 | |
| Adjusted return on average assets: | | | | | |
| Total average assets | $7,547,943 | | $7,549,411 | | $7,619,319 | | $7,638,882 | | $7,633,734 | |
| Return on average assets (GAAP) | 0.54% | | 0.50% | | 0.50% | | 0.35% | | 0.35% | |
| Adjusted return on average assets (non-GAAP) | 0.50% | | 0.50% | | 0.48% | | 0.35% | | 0.35% | |
| Adjusted return on average equity: | | | | | |
| Total average equity | $759,273 | | $754,918 | | $745,143 | | $744,187 | | $745,225 | |
| Return on average equity (GAAP) | 5.34% | | 5.01% | | 5.10% | | 3.64% | | 3.57% | |
| Adjusted return on average equity (non-GAAP) | 4.96% | | 5.01% | | 4.91% | | 3.64% | | 3.57% | |
Reconciliation of GAAP to Non-GAAP
(Unaudited)
| Three Months Ended |
|---|
| (Dollars and Shares in Thousands, Except Per Share Data) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 |
| Adjusted return on average tangible equity: | | | | | |
| Total average equity | $759,273 | $754,918 | $745,143 | $744,187 | $745,225 |
| Less: average goodwill | (113,525) | (113,525) | (113,525) | (113,525) | (113,525) |
| Less: average other intangible assets | (1,157) | (1,276) | (1,395) | (1,513) | (1,636) |
| Total average tangible equity | $644,591 | $640,117 | $630,223 | $629,149 | $630,064 |
| Return on average tangible equity (non-GAAP) | 6.34% | 5.96% | 6.09% | 4.36% | 4.28% |
| Adjusted return on average tangible equity (non-GAAP) | 5.90% | 5.96% | 5.87% | 4.36% | 4.28% |
| Adjusted non-interest expense ratio: | | | | | |
| Non-interest expense (GAAP) | $32,299 | $31,191 | $31,666 | $30,893 | $30,390 |
| Non-recurring transactions: | | | | | |
| Branch consolidation expenses | - | - | (250) | - | - |
| Non-interest expense (non-GAAP) | $32,299 | $31,191 | $31,416 | $30,893 | $30,390 |
| Non-interest expense ratio (GAAP) | 1.71% | 1.65% | 1.66% | 1.62% | 1.59% |
| Adjusted non-interest expense ratio (non-GAAP) | 1.71% | 1.65% | 1.65% | 1.62% | 1.59% |
| Adjusted efficiency ratio: | | | | | |
| Non-interest expense (non-GAAP) | $32,299 | $31,191 | $31,416 | $30,893 | $30,390 |
| Net interest income (GAAP) | $39,236 | $37,969 | $37,704 | $35,843 | $34,042 |
| Total non-interest income (GAAP) | 6,094 | 5,571 | 5,847 | 4,991 | 4,562 |
| Non-recurring transactions: | | | | | |
| Gain on sale of property held for sale | (1,020) | - | (749) | - | - |
| Total revenue (non-GAAP) | $44,310 | $43,540 | $42,802 | $40,834 | $38,604 |
| Efficiency ratio (GAAP) | 71.25% | 71.64% | 72.71% | 75.66% | 78.72% |
| Adjusted efficiency ratio (non-GAAP) | 72.89% | 71.64% | 73.40% | 75.66% | 78.72% |