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 FOURTH QUARTER AND FISCAL YEAR END 2026 RESULTS
AND DECLARATION OF $0.11 PER SHARE CASH DIVIDEND
Fairfield, N.J., July 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 June 30, 2026 of $7.2 million, or $0.11 per diluted share, compared to $10.1 million, or $0.16 per diluted share, for the quarter ended March 31, 2026. For the fiscal year ended June 30, 2026, the Company reported net income of $36.3 million, or $0.57 per diluted share, compared to $26.1 million, or $0.42 per diluted share, for the fiscal year ended June 30, 2025.
As explained in additional detail below, net income for the quarter ended June 30, 2026 was impacted by various non-recurring items, including a $1.6 million discrete tax charge, $745,000 of severance expense, and $262,000 of other real estate owned (“OREO”) acquisition expense.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.11 per share, payable on August 26, 2026, to stockholders of record as of August 12, 2026.
Craig L. Montanaro, President and Chief Executive Officer, commented, “I am pleased to report our fiscal 2026 performance, which reflected a 39% increase in net income compared to the prior fiscal year, continued expansion of our net interest margin, and growth in both loans and deposits. Fiscal 2026 was a year of meaningful progress and reflected the successful execution of our strategic plan, including the continued remixing of our balance sheet, enhanced operational efficiency, and our focus on building deeper commercial banking relationships.”
Mr. Montanaro continued, “During the fiscal year, we invested in growth initiatives across commercial banking, treasury management, and technology. We added experienced banking talent and expanded capabilities designed to deepen commercial client relationships and support loan and deposit growth. These investments are strengthening our ability to attract high-quality commercial relationships and further our evolution into a commercially focused banking franchise.”
Mr. Montanaro concluded, “As we enter fiscal 2027, we remain focused on executing our strategic plan through organic growth, operational excellence, and the continued enhancement of the client experience. We believe the investments we have made in talent, technology, and operating efficiency, coupled with tailwinds from low-coupon loan repricing, position us well to continue delivering sustainable earnings growth and long-term value for our shareholders.”
Strategic Achievements
- Expanded Corporate Banking capabilities through the recruitment of experienced relationship-focused bankers.
- Launched a Specialty Deposits team focused on 1031 exchange, escrow, trust, and estate account relationships, expanding the Bank's commercial deposit capabilities and strengthening its presence in key New York markets.
- Advanced a Company-wide operational excellence initiative focused on process improvement, adoption of automation and artificial intelligence, and enhancements of the client experience.
- Executed a strategic realignment of the retail banking organization to create a dedicated outside sales team focused on small business relationship development, while retaining a peer-leading level of service throughout the branch network.
Fiscal Year 2026 Highlights
- Net interest margin expanded 30 basis points to 2.18%, extending the momentum of margin improvement for the second consecutive year.
- Pre-tax, pre-provision earnings per share increased 47.0% to $0.78 per diluted share.
- Continued the strategic remixing of the loan portfolio by growing commercial and industrial, construction, and home equity loans by 61.4%, 48.1% and 57.4%, respectively, while strategically reducing multifamily mortgage exposure.
- Improved efficiency ratio by 5.90%, while investing in new products, capabilities, and our people.
- Tangible book value per share increased $0.30, or 3.1%, to $10.07.
Balance Sheet
- Total assets were $7.68 billion at June 30, 2026, an increase of $74.5 million, or 1.0%, from March 31, 2026 and a decrease of $58.2 million, or 0.8%, from June 30, 2025.
- Investment securities totaled $1.07 billion at June 30, 2026, a decrease of $22.7 million, or 2.1%, from March 31, 2026 and a decrease of $62.0 million, or 5.5%, from June 30, 2025.
- Loans receivable totaled $5.88 billion at June 30, 2026, an increase of $96.1 million, or 1.7%, from March 31, 2026 and an increase of $62.4 million, or 1.1%, from June 30, 2025.
- Deposits were $5.71 billion at June 30, 2026, a decrease of $19.5 million, or 0.3%, from March 31, 2026 and an increase of $34.4 million, or 0.6%, from June 30, 2025. Deposit balances reflected the migration of $170.1 million from consumer interest-bearing products to non-interest bearing products.
- Borrowings were $1.15 billion at June 30, 2026, an increase of $90.0 million, or 8.5%, from March 31, 2026 and a decrease of $106.5 million, or 8.5%, from June 30, 2025.
- At June 30, 2026, the Company maintained available secured borrowing capacity with the Federal Home Loan Bank and the Federal Reserve Discount Window of $2.35 billion, representing 30.6% of total assets.
Earnings
Net Interest Income and Net Interest Margin
- Net interest margin increased by five basis points to 2.26% for the quarter ended June 30, 2026 and by 30 basis points to 2.18% for the year ended June 30, 2026. The quarterly improvement was driven by higher loan yields and balances and a reduction in interest-bearing deposits, partially offset by higher costs on interest-bearing liabilities. The year-over-year improvement reflected higher loan yields and balances and lower costs on interest-bearing liabilities, partially offset by lower yields and balances on investment securities and other interest-earning assets.
- For the quarter ended June 30, 2026, net interest income increased $1.1 million, or 2.9%, to $40.4 million from $39.2 million for the quarter ended March 31, 2026. Included in net interest income for the quarters ended June 30, 2026 and March 31, 2026, respectively, was purchase accounting accretion of $537,000 and $552,000, and loan prepayment penalty income of $622,000 and $422,000.
- For the year ended June 30, 2026, net interest income increased $20.3 million, or 15.1%, to $155.3 million from $134.9 million for the year ended June 30, 2025. Included in net interest income for the years ended June 30, 2026 and 2025, respectively, was purchase accounting accretion of $2.2 million and $2.4 million and loan prepayment penalty income of $2.1 million and $783,000.
Non-Interest Income
- For the quarter ended June 30, 2026, non-interest income decreased $781,000, or 12.8%, to $5.3 million from $6.1 million for the quarter ended March 31, 2026, primarily driven by the absence of a non-recurring pre-tax gain of $1.0 million recorded in the prior period. Excluding this non-recurring item, non-interest income increased $218,000, or 4.3%, from $5.1 million, primarily driven by an increase in loan related fees and charges and a higher gain on sale of loans.
- Fees and service charges increased $144,000 to $1.1 million for the quarter ended June 30, 2026 from $922,000 for the quarter ended March 31, 2026.
- Gain on sale of loans increased $123,000 to $316,000 for the quarter ended June 30, 2026 from $193,000 for the quarter ended March 31, 2026.
- For the year ended June 30, 2026, non-interest income increased $3.8 million to $22.8 million from $19.1 million for the year ended June 30, 2025, primarily driven by $1.8 million in non-recurring pre-tax gains on the sale of properties held for sale in the current period, and increases in loan- and branch-related fees and charges.
Non-Interest Expense
- For the quarter ended June 30, 2026, non-interest expense increased $1.6 million, or 4.8%, to $33.9 million from $32.3 million for the quarter ended March 31, 2026. Excluding a non-recurring charge of $745,000 related to severance, non-interest expense increased $806,000, primarily reflecting higher salary and benefit costs, OREO acquisition-related expenses of $262,000, and a provision for unfunded commitments of $264,000, partially offset by a lower net occupancy expense.
- Salary and benefits expense increased $1.0 million to $20.3 million for the quarter ended June 30, 2026 from $19.3 million for the quarter ended March 31, 2026, primarily due to a non-recurring charge of $745,000 related to severance associated with a strategic realignment of the Company’s retail banking organization.
- Net occupancy expense of premises decreased $401,000 to $2.9 million for the quarter ended June 30, 2026 from $3.3 million for the quarter ended March 31, 2026, primarily driven by the absence of snow removal expenses recorded in the prior period.
- Other expense increased $942,000 to $4.4 million for the quarter ended June 30, 2026, from $3.5 million for the quarter ended March 31, 2026, primarily due to a non-recurring OREO acquisition-related expense of $262,000, a reserve on unfunded commitments of $264,000 due to growth in construction loans, compared to an $86,000 reserve reversal in the prior period, and higher professional and other fees. Remaining changes reflected normal operating fluctuations.
- For the year ended June 30, 2026, non-interest expense increased $8.4 million, or 6.9%, to $129.0 million from $120.6 million for the year ended June 30, 2025, primarily driven by higher salary and benefits expense and other expense. Salary and benefits expense increased due to annual merit increases, higher incentive compensation, and a non-recurring severance charge, while other expense increased primarily as a result of higher professional fees, loan related expenses, and the non-recurring charges discussed above.
Income Taxes
- Income tax expense totaled $3.8 million for the quarter ended June 30, 2026 compared to $2.5 million for the quarter ended March 31, 2026, resulting in an effective tax rate of 34.9% and 19.8%, respectively. Income tax expense increased due to the establishment of a valuation allowance of $1.6 million against a deferred tax asset related to certain legacy stock-based compensation awards.
- Income tax expense totaled $11.1 million for the year ended June 30, 2026 compared to $4.9 million for the year ended June 30, 2025. The increase in income tax expense was primarily driven by higher pre-tax income in the current year period and the establishment of a valuation allowance of $1.6 million, as discussed above.
Asset Quality
- Non-performing assets increased to $53.4 million, or 0.70% of total assets, at June 30, 2026, from $52.4 million, or 0.69% of total assets, at March 31, 2026, and from $45.6 million, or 0.59% of total assets, at June 30, 2025. Included in non-performing assets at June 30, 2026 were two foreclosed properties with an aggregate carrying value of $5.5 million that were reclassified from non-performing loans to OREO during the quarter.
- Net charge-offs totaled $49,000, or less than 0.01% of average loans, on an annualized basis, for the quarter ended June 30, 2026, compared to $626,000, or 0.04% of average loans, on an annualized basis, for the quarter ended March 31, 2026. For the year ended June 30, 2026, net charge-offs totaled $2.4 million, or 0.04% of average loans, compared to $1.1 million, or 0.02% of average loans, for the year ended June 30, 2025.
- For the quarter ended June 30, 2026, the Company recorded a provision for credit losses of $822,000, compared to $391,000 for the quarter ended March 31, 2026. The provision for credit losses for the quarter ended June 30, 2026 was primarily driven by loan growth. For the years ended June 30, 2026 and June 30, 2025, the Company recorded a provision for credit losses of $1.7 million and $2.4 million, respectively.
- The allowance for credit losses (“ACL”) was $45.5 million, or 0.77% of total loans, at June 30, 2026, an increase of $773,000 from $44.7 million, or 0.77% of total loans, at March 31, 2026. The ACL was $46.2 million, or 0.79% of total loans, at June 30, 2025.
Capital
- For the quarter ended June 30, 2026, book value per share and tangible book value per share increased $0.05, or 0.4%, to $11.84 and $10.07, respectively, compared to the prior period.
- At June 30, 2026, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $68.5 million, partially offset by after-tax unrealized gains on derivatives of $4.8 million. After-tax net unrecognized losses on securities held to maturity of $8.4 million were not reflected in total stockholders’ equity.
- At June 30, 2026, the Company’s tangible equity to tangible assets ratio equaled 8.62% and the regulatory capital ratios of both the Company and the Bank were in excess of the levels required by federal banking regulators to be classified as “well-capitalized” under regulatory guidelines.
Linked-Quarter Comparative Financial Analysis
Consolidated Balance Sheets
(Unaudited)
| (Dollars and Shares in Thousands, Except Per Share Data) | June 30, 2026 | March 31, 2026 | Variance or Change | Variance or Change Pct. |
| (Unaudited) | (Unaudited) | | |
| Assets | | | | |
| Cash and cash equivalents | $114,823 | | $123,836 | | $(9,013) | | -7.3% |
| Securities available for sale | 964,369 | | 983,325 | | (18,956) | | -1.9% |
| Securities held to maturity | 106,814 | | 110,581 | | (3,767) | | -3.4% |
| Loans held-for-sale | 6,022 | | 12,183 | | (6,161) | | -50.6% |
| Loans receivable | 5,875,325 | | 5,779,181 | | 96,144 | | 1.7% |
| Less: allowance for credit losses on loans | (45,496) | | (44,723) | | 773 | | 1.7% |
| Net loans receivable | 5,829,829 | | 5,734,458 | | 95,371 | | 1.7% |
| Premises and equipment | 42,359 | | 41,896 | | 463 | | 1.1% |
| Federal Home Loan Bank stock | 59,726 | | 55,737 | | 3,989 | | 7.2% |
| Accrued interest receivable | 27,875 | | 28,304 | | (429) | | -1.5% |
| Goodwill | 113,525 | | 113,525 | | - | | - % |
| Core deposit intangible | 968 | | 1,080 | | (112) | | -10.4% |
| Bank owned life insurance | 314,756 | | 312,050 | | 2,706 | | 0.9% |
| Deferred income taxes, net | 48,699 | | 50,961 | | (2,262) | | -4.4% |
| Other real estate owned | 5,519 | | - | | 5,519 | | - % |
| Other assets | 46,921 | | 39,720 | | 7,201 | | 18.1% |
| Total assets | $7,682,205 | | $7,607,656 | | $74,549 | | 1.0% |
| Liabilities | | | | |
| Deposits: | | | | |
| Non-interest-bearing | $788,015 | | $631,506 | | $156,509 | | 24.8% |
| Interest-bearing | 4,921,610 | | 5,097,576 | | (175,966) | | -3.5% |
| Total deposits | 5,709,625 | | 5,729,082 | | (19,457) | | -0.3% |
| Borrowings | 1,150,000 | | 1,060,000 | | 90,000 | | 8.5% |
| Advance payments by borrowers for taxes | 18,562 | | 19,317 | | (755) | | -3.9% |
| Other liabilities | 37,348 | | 36,225 | | 1,123 | | 3.1% |
| Total liabilities | 6,915,535 | | 6,844,624 | | 70,911 | | 1.0% |
| Stockholders' Equity | | | | |
| Common stock | 648 | | 648 | | - | | - % |
| Paid-in capital | 495,953 | | 495,442 | | 511 | | 0.1% |
| Retained earnings | 350,046 | | 349,881 | | 165 | | 0.0% |
| Unearned ESOP shares | (17,025) | | (17,511) | | 486 | | 2.8% |
| Accumulated other comprehensive loss | (62,952) | | (65,428) | | 2,476 | | 3.8% |
| Total stockholders' equity | 766,670 | | 763,032 | | 3,638 | | 0.5% |
| Total liabilities and stockholders' equity | $7,682,205 | | $7,607,656 | | $74,549 | | 1.0% |
| Consolidated capital ratios | | | | |
| Equity to assets | 9.98% | | 10.03% | | -0.05% | | |
| Tangible equity to tangible assets | 8.62% | | 8.65% | | -0.03% | | |
| Share data | | | | |
| Outstanding shares | | 64,738 | | 64,739 | | (1) | 0.0% |
| Book value per share | $11.84 | | $11.79 | | $0.05 | | 0.4% |
| Tangible book value per share | $10.07 | | $10.02 | | $0.05 | | 0.5% |
(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. |
| June 30, 2026 | March 31, 2026 | | |
| Interest income | | | | |
| Loans | $69,376 | | $66,310 | | $3,066 | | 4.6% |
| Taxable investment securities | 11,328 | | 11,425 | | (97) | | -0.8% |
| Tax-exempt investment securities | 29 | | 34 | | (5) | | -14.7% |
| Other interest-earning assets | 1,251 | | 1,400 | | (149) | | -10.6% |
| Total interest income | 81,984 | | 79,169 | | 2,815 | | 3.6% |
| Interest expense | | | | |
| Deposits | 30,537 | | 31,045 | | (508) | | -1.6% |
| Borrowings | 11,073 | | 8,888 | | 2,185 | | 24.6% |
| Total interest expense | 41,610 | | 39,933 | | 1,677 | | 4.2% |
| Net interest income | 40,374 | | 39,236 | | 1,138 | | 2.9% |
| Provision for credit losses | 822 | | 391 | | 431 | | 110.2% |
| Net interest income after provision for credit losses | 39,552 | | 38,845 | | 707 | | 1.8% |
| Non-interest income | | | | |
| Fees and service charges | 1,066 | | 922 | | 144 | | 15.6% |
| Gain on sale of loans | 316 | | 193 | | 123 | | 63.7% |
| Income from bank owned life insurance | 2,706 | | 2,646 | | 60 | | 2.3% |
| Electronic banking fees and charges | 460 | | 389 | | 71 | | 18.3% |
| Other income | 765 | | 1,944 | | (1,179) | | -60.6% |
| Total non-interest income | 5,313 | | 6,094 | | (781) | | -12.8% |
| Non-interest expense | | | | |
| Salaries and employee benefits | 20,313 | | 19,316 | | 997 | | 5.2% |
| Net occupancy expense of premises | 2,862 | | 3,263 | | (401) | | -12.3% |
| Equipment and systems | 3,851 | | 3,975 | | (124) | | -3.1% |
| Advertising and marketing | 746 | | 665 | | 81 | | 12.2% |
| Federal deposit insurance premium | 1,360 | | 1,302 | | 58 | | 4.5% |
| Directors' compensation | 307 | | 307 | | - | | - % |
| Other expense | 4,413 | | 3,471 | | 942 | | 27.1% |
| Total non-interest expense | 33,852 | | 32,299 | | 1,553 | | 4.8% |
| Income before income taxes | 11,013 | | 12,640 | | (1,627) | | -12.9% |
| Income taxes | 3,841 | | 2,503 | | 1,338 | | 53.5% |
| Net income | $7,172 | | $10,137 | | $(2,965) | | -29.2% |
| Net income per common share (EPS) | | | | |
| Basic | $0.11 | | $0.16 | | $(0.05) | | |
| Diluted | $0.11 | | $0.16 | | $(0.05) | | |
| Dividends declared | | | | |
| Cash dividends declared per common share | $0.11 | | $0.11 | | $ - | | |
| Cash dividends declared | $7,008 | | $7,005 | | $3 | | |
| Dividend payout ratio | 97.7% | | 69.1% | | 28.6% | | |
| Weighted average number of common shares outstanding | | | | |
| Basic | | 62,958 | | 62,908 | | 50 | |
| Diluted | | 63,403 | | 63,251 | | 152 | |
Average Balance Sheet Data
(Unaudited)
| (Dollars in Thousands) | Three Months Ended | Variance or Change | Variance or Change Pct. |
| June 30, 2026 | March 31, 2026 | |
| Assets | | | | |
| Interest-earning assets: | | | | |
| Loans receivable, including loans held for sale | $5,854,248 | $5,785,095 | $69,153 | 1.2% |
| Taxable investment securities | 1,185,569 | 1,194,487 | (8,918) | -0.7% |
| Tax-exempt investment securities | 4,759 | 5,669 | (910) | -16.1% |
| Other interest-earning assets | 109,098 | 106,967 | 2,131 | 2.0% |
| Total interest-earning assets | 7,153,674 | 7,092,218 | 61,456 | 0.9% |
| Non-interest-earning assets | 456,877 | 455,725 | 1,152 | 0.3% |
| Total assets | $7,610,551 | $7,547,943 | $62,608 | 0.8% |
| Liabilities and Stockholders' Equity | | | | |
| Interest-bearing liabilities: | | | | |
| Deposits: | | | | |
| Interest-bearing demand | $2,207,264 | $2,402,177 | $(194,913) | -8.1% |
| Savings | 760,770 | 761,090 | (320) | 0.0% |
| Certificates of deposit (retail) | 1,190,922 | 1,181,526 | 9,396 | 0.8% |
| Certificates of deposit (brokered) | 673,031 | 755,461 | (82,430) | -10.9% |
| Total interest-bearing deposits | 4,831,987 | 5,100,254 | (268,267) | -5.3% |
| Borrowings: | | | | |
| Federal Home Loan Bank advances | 1,022,637 | 861,445 | 161,192 | 18.7% |
| Other borrowings | 150,275 | 133,833 | 16,442 | 12.3% |
| Total borrowings | 1,172,912 | 995,278 | 177,634 | 17.8% |
| Total interest-bearing liabilities | 6,004,899 | 6,095,532 | (90,633) | -1.5% |
| Non-interest-bearing liabilities: | | | | |
| Non-interest-bearing deposits | 788,059 | 633,494 | 154,565 | 24.4% |
| Other non-interest-bearing liabilities | 54,614 | 59,644 | (5,030) | -8.4% |
| Total non-interest-bearing liabilities | 842,673 | 693,138 | 149,535 | 21.6% |
| Total liabilities | 6,847,572 | 6,788,670 | 58,902 | 0.9% |
| Stockholders' equity | 762,979 | 759,273 | 3,706 | 0.5% |
| Total liabilities and stockholders' equity | $7,610,551 | $7,547,943 | $62,608 | 0.8% |
| Average interest-earning assets to average interest-bearing liabilities | 119.13% | 116.35% | 2.78% | 2.4% |
Performance Ratio Highlights
(Unaudited)
| Three Months Ended | Variance or Change |
|---|
| June 30, 2026 | March 31, 2026 | |
|---|
| Average yield on interest-earning assets: | | | |
| Loans receivable, including loans held for sale | 4.74% | 4.58% | 0.16% |
| Taxable investment securities | 3.82% | 3.83% | -0.01% |
| Tax-exempt investment securities | 2.40% | 2.37% | 0.03% |
| Other interest-earning assets | 4.59% | 5.24% | -0.65% |
| Total interest-earning assets | 4.58% | 4.47% | 0.11% |
| Average cost of interest-bearing liabilities: | | | |
| Deposits: | | | |
| Interest-bearing demand | 2.49% | 2.34% | 0.15% |
| Savings | 1.34% | 1.26% | 0.08% |
| Certificates of deposit (retail) | 3.17% | 3.20% | -0.03% |
| Certificates of deposit (brokered) | 2.87% | 2.71% | 0.16% |
| Total interest-bearing deposits | 2.53% | 2.43% | 0.10% |
| Borrowings: | | | |
| Federal Home Loan Bank advances | 3.79% | 3.56% | 0.23% |
| Other borrowings | 3.71% | 3.66% | 0.05% |
| Total borrowings | 3.78% | 3.57% | 0.21% |
| Total interest-bearing liabilities | 2.77% | 2.62% | 0.15% |
| Interest rate spread | 1.81% | 1.85% | -0.04% |
| Net interest margin | 2.26% | 2.21% | 0.05% |
| Non-interest income to average assets (annualized) | 0.28% | 0.32% | -0.04% |
| Non-interest expense to average assets (annualized) | 1.78% | 1.71% | 0.07% |
| Efficiency ratio | 74.09% | 71.25% | 2.84% |
| Return on average assets (annualized) | 0.38% | 0.54% | -0.16% |
| Return on average equity (annualized) | 3.76% | 5.34% | -1.58% |
| Return on average tangible equity (annualized) | 4.48% | 6.34% | -1.86% |
(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.
(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.
Year-to-Year Comparative Financial Analysis
Consolidated Balance Sheets
| (Dollars and Shares in Thousands, Except Per Share Data) | June 30, 2026 | June 30, 2025 | Variance or Change | Variance or Change Pct. |
| (Unaudited) | (Audited) | | |
| Assets | | | | |
| Cash and cash equivalents | $114,823 | | $167,269 | | $(52,446) | | -31.4% |
| Securities available for sale | 964,369 | | 1,012,969 | | (48,600) | | -4.8% |
| Securities held to maturity | 106,814 | | 120,217 | | (13,403) | | -11.1% |
| Loans held-for-sale | 6,022 | | 5,931 | | 91 | | 1.5% |
| Loans receivable | 5,875,325 | | 5,812,937 | | 62,388 | | 1.1% |
| Less: allowance for credit losses on loans | (45,496) | | (46,191) | | (695) | | -1.5% |
| Net loans receivable | 5,829,829 | | 5,766,746 | | 63,083 | | 1.1% |
| Premises and equipment | 42,359 | | 43,897 | | (1,538) | | -3.5% |
| Federal Home Loan Bank of New York stock | 59,726 | | 64,261 | | (4,535) | | -7.1% |
| Accrued interest receivable | 27,875 | | 28,098 | | (223) | | -0.8% |
| Goodwill | 113,525 | | 113,525 | | - | | - % |
| Core deposit intangible | 968 | | 1,436 | | (468) | | -32.6% |
| Bank owned life insurance | 314,756 | | 304,717 | | 10,039 | | 3.3% |
| Deferred income tax assets, net | 48,699 | | 55,203 | | (6,504) | | -11.8% |
| Other real estate owned | 5,519 | | - | | 5,519 | | - % |
| Other assets | 46,921 | | 56,181 | | (9,260) | | -16.5% |
| Total assets | $7,682,205 | | $7,740,450 | | $(58,245) | | -0.8% |
| Liabilities | | | | |
| Deposits: | | | | |
| Non-interest-bearing | $788,015 | | $582,045 | | $205,970 | | 35.4% |
| Interest-bearing | 4,921,610 | | 5,093,172 | | (171,562) | | -3.4% |
| Total deposits | 5,709,625 | | 5,675,217 | | 34,408 | | 0.6% |
| Borrowings | 1,150,000 | | 1,256,491 | | (106,491) | | -8.5% |
| Advance payments by borrowers for taxes | 18,562 | | 19,317 | | (755) | | -3.9% |
| Other liabilities | 37,348 | | 43,463 | | (6,115) | | -14.1% |
| Total liabilities | 6,915,535 | | 6,994,488 | | (78,953) | | -1.1% |
| Stockholders' Equity | | | | |
| Common stock | $648 | | $646 | | $2 | | 0.3% |
| Paid-in capital | 495,953 | | 494,546 | | 1,407 | | 0.3% |
| Retained earnings | 350,046 | | 341,744 | | 8,302 | | 2.4% |
| Unearned ESOP shares | (17,025) | | (18,970) | | 1,945 | | 10.3% |
| Accumulated other comprehensive loss | (62,952) | | (72,004) | | 9,052 | | 12.6% |
| Total stockholders' equity | 766,670 | | 745,962 | | 20,708 | | 2.8% |
| Total liabilities and stockholders' equity | $7,682,205 | | $7,740,450 | | $(58,245) | | -0.8% |
| Consolidated capital ratios | | | | |
| Equity to assets | 9.98% | | 9.64% | | 0.34% | | |
| Tangible equity to tangible assets | 8.62% | | 8.27% | | 0.35% | | |
| Share data | | | | |
| Outstanding shares | | 64,738 | | 64,577 | | 161 | 0.2% |
| Book value per share | $11.84 | | $11.55 | | $0.29 | | 2.5% |
| Tangible book value per share | $10.07 | | $9.77 | | $0.30 | | 3.1% |
(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
| Year Ended | | |
|---|
| (Dollars and Shares in Thousands, Except Per Share Data) | June 30, 2026 | June 30, 2025 | Variance or Change | Variance or Change Pct. |
| (Unaudited) | (Audited) | | |
| Interest income | | | | |
| Loans | $271,445 | $262,992 | $8,453 | 3.2% |
| Taxable investment securities | 46,976 | 53,247 | (6,271) | -11.8% |
| Tax-exempt investment securities | 139 | 234 | (95) | -40.6% |
| Other interest-earning assets | 5,753 | 8,003 | (2,250) | -28.1% |
| Total Interest Income | 324,313 | 324,476 | (163) | -0.1% |
| Interest expense | | | | |
| Deposits | 128,661 | 140,258 | (11,597) | -8.3% |
| Borrowings | 40,369 | 49,275 | (8,906) | -18.1% |
| Total interest expense | 169,030 | 189,533 | (20,503) | -10.8% |
| Net interest income | 155,283 | 134,943 | 20,340 | 15.1% |
| Provision for credit losses | 1,698 | 2,366 | (668) | -28.2% |
| Net interest income after provision for credit losses | 153,585 | 132,577 | 21,008 | 15.8% |
| Non-interest income | | | | |
| Fees and service charges | 4,175 | 2,490 | 1,685 | 67.7% |
| Gain on sale of loans | 932 | 806 | 126 | 15.6% |
| Income from bank owned life insurance | 10,751 | 10,672 | 79 | 0.7% |
| Electronic banking fees and charges | 1,738 | 1,717 | 21 | 1.2% |
| Other income | 5,229 | 3,367 | 1,862 | 55.3% |
| Total non-interest income | 22,825 | 19,052 | 3,773 | 19.8% |
| Non-interest expense | | | | |
| Salaries and employee benefits | 76,747 | 70,870 | 5,877 | 8.3% |
| Net occupancy expense of premises | 12,320 | 11,524 | 796 | 6.9% |
| Equipment and systems | 15,807 | 15,703 | 104 | 0.7% |
| Advertising and marketing | 2,385 | 1,877 | 508 | 27.1% |
| Federal deposit insurance premium | 5,320 | 5,911 | (591) | -10.0% |
| Directors' compensation | 1,227 | 1,355 | (128) | -9.4% |
| Other expense | 15,202 | 13,390 | 1,812 | 13.5% |
| Total non-interest expense | 129,008 | 120,630 | 8,378 | 6.9% |
| Income before income taxes | 47,402 | 30,999 | 16,403 | 52.9% |
| Income taxes | 11,138 | 4,924 | 6,214 | 126.2% |
| Net income | $36,264 | $26,075 | $10,189 | 39.1% |
| Net income per common share (EPS) | | | | |
| Basic | $0.58 | $0.42 | $0.16 | |
| Diluted | $0.57 | $0.42 | $0.15 | |
| Dividends declared | | | | |
| Cash dividends declared per common share | $0.44 | $0.44 | $ - | |
| Cash dividends declared | $27,963 | $27,657 | $306 | |
| Dividend payout ratio | 77.1% | 106.1% | -29% | |
| Weighted average number of common shares outstanding | | | | |
| Basic | 62,866 | 62,508 | 358 | |
| Diluted | 63,220 | 62,716 | 504 | |
Average Balance Sheet Data
(Unaudited)
| Year Ended | | |
|---|
| (Dollars in Thousands) | June 30, 2026 | June 30, 2025 | Variance or Change | Variance or Change Pct. |
| Assets | | | | |
| Interest-earning assets: | | | | |
| Loans receivable, including loans held for sale | $5,806,182 | $5,789,583 | $16,599 | 0.3% |
| Taxable investment securities | 1,200,665 | 1,270,262 | (69,597) | -5.5% |
| Tax-exempt investment securities | 5,800 | 9,791 | (3,991) | -40.8% |
| Other interest-earning assets | 113,880 | 119,224 | (5,344) | -4.5% |
| Total interest-earning assets | 7,126,527 | 7,188,860 | (62,333) | -0.9% |
| Non-interest-earning assets | 455,386 | 459,986 | (4,600) | -1.0% |
| Total assets | $7,581,913 | $7,648,846 | $(66,933) | -0.9% |
| Liabilities and Stockholders' Equity | | | | |
| Interest-bearing liabilities: | | | | |
| Deposits: | | | | |
| Interest-bearing demand | $2,334,641 | $2,335,972 | $(1,331) | -0.1% |
| Savings | 758,820 | 721,115 | 37,705 | 5.2% |
| Certificates of deposit (retail) | 1,196,452 | 1,213,015 | (16,563) | -1.4% |
| Certificates of deposit (brokered) | 735,180 | 689,011 | 46,169 | 6.7% |
| Total interest-bearing deposits | 5,025,093 | 4,959,113 | 65,980 | 1.3% |
| Borrowings: | | | | |
| Federal Home Loan Bank Advances | 990,612 | 1,131,662 | (141,050) | -12.5% |
| Other borrowings | 101,712 | 149,041 | (47,329) | -31.8% |
| Total borrowings | 1,092,324 | 1,280,703 | (188,379) | -14.7% |
| Total interest-bearing liabilities | 6,117,417 | 6,239,816 | (122,399) | -2.0% |
| Non-interest-bearing liabilities: | | | | |
| Non-interest-bearing deposits | 649,262 | 597,197 | 52,065 | 8.7% |
| Other non-interest-bearing liabilities | 59,696 | 64,831 | (5,135) | -7.9% |
| Total non-interest-bearing liabilities | 708,958 | 662,028 | 46,930 | 7.1% |
| Total liabilities | 6,826,375 | 6,901,844 | (75,469) | -1.1% |
| Stockholders' equity | 755,538 | 747,002 | 8,536 | 1.1% |
| Total liabilities and stockholders' equity | $7,581,913 | $7,648,846 | $(66,933) | -0.9% |
| Average interest-earning assets to average interest-bearing liabilities | 116.50% | 115.21% | 1.29% | 1.1% |
Performance Ratio Highlights
(Unaudited)
| Year Ended | |
|---|
| June 30, 2026 | June 30, 2025 | Variance or Change |
|---|
| Average yield on interest-earning assets: | | | |
| Loans receivable, including loans held for sale | 4.68% | 4.54% | 0.14% |
| Taxable investment securities | 3.91% | 4.19% | -0.28% |
| Tax-exempt investment securities | 2.39% | 2.39% | - % |
| Other interest-earning assets | 5.05% | 6.71% | -1.66% |
| Total interest-earning assets | 4.55% | 4.51% | 0.04% |
| Average cost of interest-bearing liabilities: | | | |
| Deposits: | | | |
| Interest-bearing demand | 2.49% | 2.86% | -0.37% |
| Savings | 1.35% | 1.25% | 0.10% |
| Certificates of deposit (retail) | 3.35% | 3.87% | -0.52% |
| Certificates of deposit (brokered) | 2.74% | 2.54% | 0.20% |
| Total interest-bearing deposits | 2.56% | 2.83% | -0.27% |
| Borrowings: | | | |
| Federal Home Loan Bank Advances | 3.67% | 3.71% | -0.04% |
| Other borrowings | 3.90% | 4.87% | -0.97% |
| Total borrowings | 3.70% | 3.85% | -0.15% |
| Total interest-bearing liabilities | 2.76% | 3.04% | -0.28% |
| Interest rate spread | 1.79% | 1.47% | 0.32% |
| Net interest margin | 2.18% | 1.88% | 0.30% |
| Non-interest income to average assets | 0.30% | 0.25% | 0.05% |
| Non-interest expense to average assets | 1.70% | 1.58% | 0.12% |
| Efficiency ratio | 72.43% | 78.33% | -5.90% |
| Return on average assets | 0.48% | 0.34% | 0.14% |
| Return on average equity | 4.80% | 3.49% | 1.31% |
| Return on average tangible equity | 5.71% | 4.18% | 1.53% |
(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.
(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) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) |
| Assets | | | | | |
| Cash and cash equivalents | $114,823 | | $123,836 | | $147,340 | | $130,139 | | $167,269 | |
| Securities available for sale | 964,369 | | 983,325 | | 1,000,397 | | 1,016,182 | | 1,012,969 | |
| Securities held to maturity | 106,814 | | 110,581 | | 112,800 | | 116,681 | | 120,217 | |
| Loans held-for-sale | 6,022 | | 12,183 | | 8,786 | | 6,650 | | 5,931 | |
| Loans receivable | 5,875,325 | | 5,779,181 | | 5,753,393 | | 5,767,419 | | 5,812,937 | |
| Less: allowance for credit losses on loans | (45,496) | | (44,723) | | (44,958) | | (45,060) | | (46,191) | |
| Net loans receivable | 5,829,829 | | 5,734,458 | | 5,708,435 | | 5,722,359 | | 5,766,746 | |
| Premises and equipment | 42,359 | | 41,896 | | 42,559 | | 43,222 | | 43,897 | |
| Federal Home Loan Bank stock | 59,726 | | 55,737 | | 57,212 | | 62,011 | | 64,261 | |
| Accrued interest receivable | 27,875 | | 28,304 | | 27,420 | | 29,460 | | 28,098 | |
| Goodwill | 113,525 | | 113,525 | | 113,525 | | 113,525 | | 113,525 | |
| Core deposit intangible | 968 | | 1,080 | | 1,198 | | 1,317 | | 1,436 | |
| Bank owned life insurance | 314,756 | | 312,050 | | 309,404 | | 307,248 | | 304,717 | |
| Deferred income taxes, net | 48,699 | | 50,961 | | 51,617 | | 51,587 | | 55,203 | |
| Other real estate owned | 5,519 | | - | | - | | - | | - | |
| Other assets | 46,921 | | 39,720 | | 40,185 | | 47,629 | | 56,181 | |
| Total assets | $7,682,205 | | $7,607,656 | | $7,620,878 | | $7,648,010 | | $7,740,450 | |
| Liabilities | | | | | |
| Deposits: | | | | | |
| Non-interest-bearing | $788,015 | | $631,506 | | $627,180 | | $578,481 | | $582,045 | |
| Interest-bearing | 4,921,610 | | 5,097,576 | | 5,084,370 | | 5,053,401 | | 5,093,172 | |
| Total deposits | 5,709,625 | | 5,729,082 | | 5,711,550 | | 5,631,882 | | 5,675,217 | |
| Borrowings | 1,150,000 | | 1,060,000 | | 1,095,000 | | 1,206,497 | | 1,256,491 | |
| Advance payments by borrowers for taxes | 18,562 | | 19,317 | | 18,474 | | 19,261 | | 19,317 | |
| Other liabilities | 37,348 | | 36,225 | | 38,458 | | 37,166 | | 43,463 | |
| Total liabilities | 6,915,535 | | 6,844,624 | | 6,863,482 | | 6,894,806 | | 6,994,488 | |
| Stockholders' Equity | | | | | |
| Common stock | 648 | | 648 | | 648 | | 648 | | 646 | |
| Paid-in capital | 495,953 | | 495,442 | | 494,959 | | 494,490 | | 494,546 | |
| Retained earnings | 350,046 | | 349,881 | | 346,749 | | 344,287 | | 341,744 | |
| Unearned ESOP shares | (17,025) | | (17,511) | | (17,997) | | (18,484) | | (18,970) | |
| Accumulated other comprehensive loss | (62,952) | | (65,428) | | (66,963) | | (67,737) | | (72,004) | |
| Total stockholders' equity | 766,670 | | 763,032 | | 757,396 | | 753,204 | | 745,962 | |
| Total liabilities and stockholders' equity | $7,682,205 | | $7,607,656 | | $7,620,878 | | $7,648,010 | | $7,740,450 | |
| Consolidated capital ratios | | | | | |
| Equity to assets | 9.98% | | 10.03% | | 9.94% | | 9.85% | | 9.64% | |
| Tangible equity to tangible assets | 8.62% | | 8.65% | | 8.56% | | 8.47% | | 8.27% | |
| Share data | | | | | |
| Outstanding shares | | 64,738 | | 64,739 | | 64,739 | | 64,739 | | 64,577 |
| Book value per share | $11.84 | | $11.79 | | $11.70 | | $11.63 | | $11.55 | |
| Tangible book value per share | $10.07 | | $10.02 | | $9.93 | | $9.86 | | $9.77 | |
(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) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 |
| Loan portfolio composition: | | | | | |
| Commercial loans: | | | | | |
| Multi-family mortgage | $2,499,894 | $2,555,001 | $2,619,124 | $2,640,737 | $2,709,654 |
| Nonresidential mortgage | 1,019,445 | 1,012,422 | 990,178 | 988,969 | 986,556 |
| Commercial and industrial | 223,927 | 201,277 | 169,884 | 142,304 | 138,755 |
| Construction | 263,200 | 207,765 | 181,766 | 189,626 | 177,713 |
| Total commercial loans | 4,006,466 | 3,976,465 | 3,960,952 | 3,961,636 | 4,012,678 |
| One- to four-family residential mortgage | 1,789,865 | 1,741,023 | 1,730,543 | 1,749,362 | 1,748,591 |
| Consumer loans: | | | | | |
| Home equity loans | 79,844 | 61,379 | 59,046 | 54,116 | 50,737 |
| Other consumer | 2,387 | 2,377 | 2,523 | 2,487 | 2,533 |
| Total consumer loans | 82,231 | 63,756 | 61,569 | 56,603 | 53,270 |
| Total loans, excluding yield adjustments | 5,878,562 | 5,781,244 | 5,753,064 | 5,767,601 | 5,814,539 |
| Unaccreted yield adjustments | (3,237) | (2,063) | 329 | (182) | (1,602) |
| Loans receivable, net of yield adjustments | 5,875,325 | 5,779,181 | 5,753,393 | 5,767,419 | 5,812,937 |
| Less: allowance for credit losses on loans | (45,496) | (44,723) | (44,958) | (45,060) | (46,191) |
| Net loans receivable | $5,829,829 | $5,734,458 | $5,708,435 | $5,722,359 | $5,766,746 |
| Asset quality: | | | | | |
| Nonperforming assets: | | | | | |
| Accruing loans - 90 days and over past due | $ - | $ - | $ - | $20,494 | $ - |
| Nonaccrual loans | 47,896 | 52,379 | 51,306 | 44,085 | 45,597 |
| Total nonperforming loans | 47,896 | 52,379 | 51,306 | 64,579 | 45,597 |
| Other real estate owned | 5,519 | - | - | - | - |
| Total nonperforming assets | $53,415 | $52,379 | $51,306 | $64,579 | $45,597 |
| Nonperforming loans (% total loans) | 0.82% | 0.91% | 0.89% | 1.12% | 0.78% |
| Nonperforming assets (% total assets) | 0.70% | 0.69% | 0.67% | 0.84% | 0.59% |
| Classified loans | $88,202 | $97,384 | $97,542 | $117,780 | $118,418 |
| Allowance for credit losses on loans (ACL): | | | | | |
| ACL to total loans | 0.77% | 0.77% | 0.78% | 0.78% | 0.79% |
| ACL to nonperforming loans | 94.99% | 85.38% | 87.63% | 69.78% | 101.30% |
| Net charge-offs | $49 | $626 | $669 | $1,049 | $49 |
| Average net charge-off rate (annualized) | 0.00% | 0.04% | 0.05% | 0.07% | 0.00% |
Supplemental Balance Sheet Highlights
(Unaudited)
| (Dollars in Thousands) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 |
| Funding composition: | | | | | |
| Deposits: | | | | | |
| Non-interest-bearing deposits | $788,015 | $631,506 | $627,180 | $578,481 | $582,045 |
| Interest-bearing demand | 2,214,432 | 2,375,565 | 2,376,825 | 2,334,560 | 2,362,222 |
| Savings | 766,502 | 763,016 | 769,742 | 751,253 | 754,376 |
| Certificates of deposit (retail) | 1,183,427 | 1,201,752 | 1,180,370 | 1,208,408 | 1,218,920 |
| Certificates of deposit (brokered) | 757,249 | 757,243 | 757,433 | 759,180 | 757,654 |
| Interest-bearing deposits | 4,921,610 | 5,097,576 | 5,084,370 | 5,053,401 | 5,093,172 |
| Total deposits | 5,709,625 | 5,729,082 | 5,711,550 | 5,631,882 | 5,675,217 |
| Borrowings: | | | | | |
| Federal Home Loan Bank advances | 950,000 | 900,000 | 800,000 | 1,006,497 | 1,106,491 |
| Overnight borrowings | 200,000 | 160,000 | 295,000 | 200,000 | 150,000 |
| Total borrowings | 1,150,000 | 1,060,000 | 1,095,000 | 1,206,497 | 1,256,491 |
| Total funding | $6,859,625 | $6,789,082 | $6,806,550 | $6,838,379 | $6,931,708 |
| Loans as a % of deposits | 102.2% | 100.3% | 100.1% | 101.7% | 101.7% |
| Deposits as a % of total funding | 83.2% | 84.4% | 83.9% | 82.4% | 81.9% |
| Borrowings as a % of total funding | 16.8% | 15.6% | 16.1% | 17.6% | 18.1% |
| Uninsured deposits: | | | | | |
| Uninsured deposits (reported) | $2,245,646 | $2,199,708 | $2,158,440 | $2,040,021 | $1,989,095 |
| Uninsured deposits (adjusted) | $850,952 | $839,094 | $800,998 | $804,209 | $813,780 |
(1)Uninsured deposits of Kearny Bank.
(2)Uninsured deposits of Kearny Bank adjusted to exclude deposits of its wholly-owned subsidiary and its holding company and collateralized deposits of state and local governments.
Consolidated Statements of Income (Loss)
(Unaudited)
| Three Months Ended |
|---|
| (Dollars and Shares in Thousands, Except Per Share Data) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 |
| Interest income | | | | | |
| Loans | $69,376 | | $66,310 | | $67,410 | | $68,349 | | $66,485 | |
| Taxable investment securities | 11,328 | | 11,425 | | 11,623 | | 12,600 | | 12,322 | |
| Tax-exempt investment securities | 29 | | 34 | | 35 | | 41 | | 49 | |
| Other interest-earning assets | 1,251 | | 1,400 | | 1,584 | | 1,518 | | 1,549 | |
| Total interest income | 81,984 | | 79,169 | | 80,652 | | 82,508 | | 80,405 | |
| Interest expense | | | | | |
| Deposits | 30,537 | | 31,045 | | 33,148 | | 33,931 | | 33,607 | |
| Borrowings | 11,073 | | 8,888 | | 9,535 | | 10,873 | | 10,955 | |
| Total interest expense | 41,610 | | 39,933 | | 42,683 | | 44,804 | | 44,562 | |
| Net interest income | 40,374 | | 39,236 | | 37,969 | | 37,704 | | 35,843 | |
| Provision for (reversal of) credit losses | 822 | | 391 | | 567 | | (82) | | 1,785 | |
| Net interest income after provision for (reversal of) credit losses | 39,552 | | 38,845 | | 37,402 | | 37,786 | | 34,058 | |
| Non-interest income | | | | | |
| Fees and service charges | 1,066 | | 922 | | 1,295 | | 892 | | 655 | |
| Gain on sale of loans | 316 | | 193 | | 224 | | 199 | | 190 | |
| Income from bank owned life insurance | 2,706 | | 2,646 | | 2,710 | | 2,689 | | 2,869 | |
| Electronic banking fees and charges | 460 | | 389 | | 473 | | 416 | | 442 | |
| Other income | 765 | | 1,944 | | 869 | | 1,651 | | 835 | |
| Total non-interest income | 5,313 | | 6,094 | | 5,571 | | 5,847 | | 4,991 | |
| Non-interest expense | | | | | |
| Salaries and employee benefits | 20,313 | | 19,316 | | 18,373 | | 18,745 | | 18,093 | |
| Net occupancy expense of premises | 2,862 | | 3,263 | | 2,888 | | 3,307 | | 2,820 | |
| Equipment and systems | 3,851 | | 3,975 | | 4,007 | | 3,974 | | 4,030 | |
| Advertising and marketing | 746 | | 665 | | 412 | | 562 | | 615 | |
| Federal deposit insurance premium | 1,360 | | 1,302 | | 1,357 | | 1,301 | | 1,395 | |
| Directors' compensation | 307 | | 307 | | 306 | | 307 | | 307 | |
| Other expense | 4,413 | | 3,471 | | 3,848 | | 3,470 | | 3,633 | |
| Total non-interest expense | 33,852 | | 32,299 | | 31,191 | | 31,666 | | 30,893 | |
| Income before income taxes | 11,013 | | 12,640 | | 11,782 | | 11,967 | | 8,156 | |
| Income taxes | 3,841 | | 2,503 | | 2,333 | | 2,461 | | 1,387 | |
| Net income | $7,172 | | $10,137 | | $9,449 | | $9,506 | | $6,769 | |
| Net income per common share (EPS) | | | | | |
| Basic | $0.11 | | $0.16 | | $0.15 | | $0.15 | | $0.11 | |
| Diluted | $0.11 | | $0.16 | | $0.15 | | $0.15 | | $0.11 | |
| Dividends declared | | | | | |
| Cash dividends declared per common share | $0.11 | | $0.11 | | $0.11 | | $0.11 | | $0.11 | |
| Cash dividends declared | $7,008 | | $7,005 | | $6,987 | | $6,963 | | $6,946 | |
| Dividend payout ratio | 97.7% | | 69.1% | | 73.9% | | 73.2% | | 102.6% | |
| Weighted average number of common shares outstanding | | | | | |
| Basic | | 62,958 | | 62,908 | | 62,858 | | 62,741 | | 62,597 |
| Diluted | | 63,403 | | 63,251 | | 63,061 | | 62,951 | | 62,755 |
Average Balance Sheet Data
(Unaudited)
| Three Months Ended |
|---|
| (Dollars in Thousands) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 |
| Assets | | | | | |
| Interest-earning assets: | | | | | |
| Loans receivable, including loans held-for-sale | $5,854,248 | $5,785,095 | $5,778,680 | $5,806,767 | $5,830,421 |
| Taxable investment securities | 1,185,569 | 1,194,487 | 1,185,602 | 1,236,705 | 1,227,825 |
| Tax-exempt investment securities | 4,759 | 5,669 | 5,902 | 6,856 | 8,039 |
| Other interest-earning assets | 109,098 | 106,967 | 123,475 | 115,776 | 117,622 |
| Total interest-earning assets | 7,153,674 | 7,092,218 | 7,093,659 | 7,166,104 | 7,183,907 |
| Non-interest-earning assets | 456,877 | 455,725 | 455,752 | 453,215 | 454,975 |
| Total assets | $7,610,551 | $7,547,943 | $7,549,411 | $7,619,319 | $7,638,882 |
| Liabilities and Stockholders' Equity | | | | | |
| Interest-bearing liabilities: | | | | | |
| Deposits: | | | | | |
| Interest-bearing demand | $2,207,264 | $2,402,177 | $2,385,397 | $2,343,809 | $2,342,523 |
| Savings | 760,770 | 761,090 | 759,247 | 754,244 | 754,192 |
| Certificates of deposit (retail) | 1,190,922 | 1,181,526 | 1,201,950 | 1,211,026 | 1,215,661 |
| Certificates of deposit (brokered) | 673,031 | 755,461 | 756,179 | 755,813 | 744,345 |
| Total interest-bearing deposits | 4,831,987 | 5,100,254 | 5,102,773 | 5,064,892 | 5,056,721 |
| Borrowings: | | | | | |
| Federal Home Loan Bank advances | 1,022,637 | 861,445 | 998,760 | 1,077,146 | 1,083,902 |
| Other borrowings | 150,275 | 133,833 | 38,478 | 85,489 | 107,582 |
| Total borrowings | 1,172,912 | 995,278 | 1,037,238 | 1,162,635 | 1,191,484 |
| Total interest-bearing liabilities | 6,004,899 | 6,095,532 | 6,140,011 | 6,227,527 | 6,248,205 |
| Non-interest-bearing liabilities: | | | | | |
| Non-interest-bearing deposits | 788,059 | 633,494 | 595,035 | 581,625 | 582,085 |
| Other non-interest-bearing liabilities | 54,614 | 59,644 | 59,447 | 65,024 | 64,405 |
| Total non-interest-bearing liabilities | 842,673 | 693,138 | 654,482 | 646,649 | 646,490 |
| Total liabilities | 6,847,572 | 6,788,670 | 6,794,493 | 6,874,176 | 6,894,695 |
| Stockholders' equity | 762,979 | 759,273 | 754,918 | 745,143 | 744,187 |
| Total liabilities and stockholders' equity | $7,610,551 | $7,547,943 | $7,549,411 | $7,619,319 | $7,638,882 |
| Average interest-earning assets to average interest-bearing liabilities | 119.13% | 116.35% | 115.53% | 115.07% | 114.98% |
Performance Ratio Highlights
| Three Months Ended |
|---|
| June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 |
|---|
| Average yield on interest-earning assets: | | | | | |
| Loans receivable, including loans held-for-sale | 4.74% | 4.58% | 4.67% | 4.71% | 4.56% |
| Taxable investment securities | 3.82% | 3.83% | 3.92% | 4.08% | 4.01% |
| Tax-exempt investment securities | 2.40% | 2.37% | 2.36% | 2.42% | 2.43% |
| Other interest-earning assets | 4.59% | 5.24% | 5.13% | 5.24% | 5.27% |
| Total interest-earning assets | 4.58% | 4.47% | 4.55% | 4.61% | 4.48% |
| Average cost of interest-bearing liabilities: | | | | | |
| Deposits: | | | | | |
| Interest-bearing demand | 2.49% | 2.34% | 2.51% | 2.63% | 2.63% |
| Savings | 1.34% | 1.26% | 1.40% | 1.41% | 1.33% |
| Certificates of deposit (retail) | 3.17% | 3.20% | 3.45% | 3.56% | 3.56% |
| Certificates of deposit (brokered) | 2.87% | 2.71% | 2.72% | 2.67% | 2.62% |
| Total interest-bearing deposits | 2.53% | 2.43% | 2.60% | 2.68% | 2.66% |
| Borrowings: | | | | | |
| Federal Home Loan Bank advances | 3.79% | 3.56% | 3.66% | 3.69% | 3.60% |
| Other borrowings | 3.71% | 3.66% | 4.13% | 4.44% | 4.45% |
| Total borrowings | 3.78% | 3.57% | 3.68% | 3.74% | 3.68% |
| Total interest-bearing liabilities | 2.77% | 2.62% | 2.78% | 2.88% | 2.85% |
| Interest rate spread | 1.81% | 1.85% | 1.77% | 1.73% | 1.62% |
| Net interest margin | 2.26% | 2.21% | 2.14% | 2.10% | 2.00% |
| Non-interest income to average assets (annualized) | 0.28% | 0.32% | 0.30% | 0.31% | 0.26% |
| Non-interest expense to average assets (annualized) | 1.78% | 1.71% | 1.65% | 1.66% | 1.62% |
| Efficiency ratio | 74.09% | 71.25% | 71.64% | 72.71% | 75.66% |
| Return on average assets (annualized) | 0.38% | 0.54% | 0.50% | 0.50% | 0.35% |
| Return on average equity (annualized) | 3.76% | 5.34% | 5.01% | 5.10% | 3.64% |
| Return on average tangible equity (annualized) | 4.48% | 6.34% | 5.96% | 6.09% | 4.36% |
(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.
(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) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 |
| Adjusted net income: | | | | | |
| Net income (GAAP) | $7,172 | | $10,137 | | $9,449 | | $9,506 | | $6,769 | |
| Non-recurring transactions - net of tax: | | | | | |
| Branch consolidation expenses | - | | - | | - | | 178 | | - | |
| Severance expense from workforce realignment | 529 | | - | | - | | - | | - | |
| Deferred tax asset valuation allowance | 1,562 | | - | | - | | - | | - | |
| Gain on sale of property held for sale | - | | (724) | | - | | (532) | | $ - | |
| Adjusted net income | $9,263 | | $9,413 | | $9,449 | | $9,152 | | $6,769 | |
| Calculation of pre-tax, pre-provision net revenue: | | | | | |
| Net income (GAAP) | $7,172 | | $10,137 | | $9,449 | | $9,506 | | $6,769 | |
| Adjustments to net income (GAAP): | | | | | |
| Provision for income taxes | 3,841 | | 2,503 | | 2,333 | | 2,461 | | 1,387 | |
| Provision for (reversal of) credit losses | 822 | | 391 | | 567 | | (82) | | 1,785 | |
| Pre-tax, pre-provision net revenue (non-GAAP) | 11,835 | | 13,031 | | 12,349 | | 11,885 | | 9,941 | |
| Adjustments to pre-tax, pre-provision net revenue (non-GAAP): | | | | | |
| Branch consolidation expenses | - | | - | | - | | 250 | | - | |
| Severance expense from workforce realignment | 745 | | - | | - | | - | | - | |
| Gain on sale of property held for sale | - | | (1,020) | | - | | (749) | | - | |
| Pre-tax, pre-provision net revenue (non-GAAP) - adjusted | $12,580 | | $12,011 | | $12,349 | | $11,386 | | $9,941 | |
| Adjusted earnings per share: | | | | | |
| Weighted average common shares - basic | | 62,958 | | 62,908 | | 62,858 | | 62,741 | | 62,597 |
| Weighted average common shares - diluted | | 63,403 | | 63,251 | | 63,061 | | 62,951 | | 62,755 |
| Earnings per share - basic (GAAP) | $0.11 | | $0.16 | | $0.15 | | $0.15 | | $0.11 | |
| Earnings per share - diluted (GAAP) | $0.11 | | $0.16 | | $0.15 | | $0.15 | | $0.11 | |
| Adjusted earnings per share - basic (non-GAAP) | $0.15 | | $0.15 | | $0.15 | | $0.15 | | $0.11 | |
| Adjusted earnings per share - diluted (non-GAAP) | $0.15 | | $0.15 | | $0.15 | | $0.15 | | $0.11 | |
| Pre-tax, pre-provision net revenue per share: | | | | | |
| Pre-tax, pre-provision net revenue per share - basic (non-GAAP) | $0.19 | | $0.21 | | $0.20 | | $0.19 | | $0.16 | |
| Pre-tax, pre-provision net revenue per share - diluted (non-GAAP) | $0.19 | | $0.21 | | $0.20 | | $0.19 | | $0.16 | |
| Pre-tax, pre-provision net revenue per share - basic (non-GAAP) - adjusted | $0.20 | | $0.19 | | $0.20 | | $0.18 | | $0.16 | |
| Pre-tax, pre-provision net revenue per share - diluted (non-GAAP) - adjusted | $0.20 | | $0.19 | | $0.20 | | $0.18 | | $0.16 | |
| Adjusted return on average assets: | | | | | |
| Total average assets | $7,610,551 | | $7,547,943 | | $7,549,411 | | $7,619,319 | | $7,638,882 | |
| Return on average assets (GAAP) | 0.38% | | 0.54% | | 0.50% | | 0.50% | | 0.35% | |
| Adjusted return on average assets (non-GAAP) | 0.49% | | 0.50% | | 0.50% | | 0.48% | | 0.35% | |
| Adjusted return on average equity: | | | | | |
| Total average equity | $762,979 | | $759,273 | | $754,918 | | $745,143 | | $744,187 | |
| Return on average equity (GAAP) | 3.76% | | 5.34% | | 5.01% | | 5.10% | | 3.64% | |
| Adjusted return on average equity (non-GAAP) | 4.86% | | 4.96% | | 5.01% | | 4.91% | | 3.64% | |
Reconciliation of GAAP to Non-GAAP
(Unaudited)
| Three Months Ended |
|---|
| (Dollars and Shares in Thousands, Except Per Share Data) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 |
| Adjusted return on average tangible equity: | | | | | |
| Total average equity | $762,979 | $759,273 | $754,918 | $745,143 | $744,187 |
| Less: average goodwill | (113,525) | (113,525) | (113,525) | (113,525) | (113,525) |
| Less: average other intangible assets | (1,042) | (1,157) | (1,276) | (1,395) | (1,513) |
| Total average tangible equity | $648,412 | $644,591 | $640,117 | $630,223 | $629,149 |
| Return on average tangible equity (non-GAAP) | 4.48% | 6.34% | 5.96% | 6.09% | 4.36% |
| Adjusted return on average tangible equity (non-GAAP) | 5.77% | 5.90% | 5.96% | 5.87% | 4.36% |
| Adjusted non-interest expense ratio: | | | | | |
| Non-interest expense (GAAP) | $33,852 | $32,299 | $31,191 | $31,666 | $30,893 |
| Non-recurring transactions: | | | | | |
| Branch consolidation expenses | - | - | - | (250) | - |
| Severance expense from workforce realignment | (745) | - | - | - | - |
| Non-interest expense (non-GAAP) | $33,107 | $32,299 | $31,191 | $31,416 | $30,893 |
| Non-interest expense ratio (GAAP) | 1.78% | 1.71% | 1.65% | 1.66% | 1.62% |
| Adjusted non-interest expense ratio (non-GAAP) | 1.74% | 1.71% | 1.65% | 1.65% | 1.62% |
| Adjusted efficiency ratio: | | | | | |
| Non-interest expense (non-GAAP) | $33,107 | $32,299 | $31,191 | $31,416 | $30,893 |
| Net interest income (GAAP) | $40,374 | $39,236 | $37,969 | $37,704 | $35,843 |
| Total non-interest income (GAAP) | 5,313 | 6,094 | 5,571 | 5,847 | 4,991 |
| Non-recurring transactions: | | | | | |
| Gain on sale of property held for sale | - | (1,020) | - | (749) | - |
| Total revenue (non-GAAP) | $45,687 | $44,310 | $43,540 | $42,802 | $40,834 |
| Efficiency ratio (GAAP) | 74.09% | 71.25% | 71.64% | 72.71% | 75.66% |
| Adjusted efficiency ratio (non-GAAP) | 72.46% | 72.89% | 71.64% | 73.40% | 75.66% |
Reconciliation of GAAP to Non-GAAP
(Unaudited)
| Year Ended |
|---|
| (Dollars and Shares in Thousands, Except Per Share Data) | June 30, 2026 | June 30, 2025 |
| Adjusted net income: | | |
| Net income (GAAP) | $36,264 | | $26,075 | |
| Non-recurring transactions - net of tax: | | |
| Branch consolidation expenses | 178 | | - | |
| Severance expense from workforce realignment | 529 | | - | |
| Gain on sale of property held for sale | (1,256) | | - | |
| Deferred tax asset valuation allowance | 1,562 | | - | |
| Adjusted net income | $37,277 | | $26,075 | |
| Calculation of pre-tax, pre-provision net revenue: | | |
| Net income (GAAP) | $36,264 | | $26,075 | |
| Adjustments to net income (GAAP): | | |
| Provision for income taxes | 11,138 | | 4,924 | |
| Provision for credit losses | 1,698 | | 2,366 | |
| Pre-tax, pre-provision net revenue (non-GAAP) | 49,100 | | 33,365 | |
| Adjustments to pre-tax, pre-provision net revenue (non-GAAP): | | |
| Branch consolidation expenses | 250 | | - | |
| Severance expense from workforce realignment | 745 | | - | |
| Gain on sale of property held for sale | (1,769) | | - | |
| Pre-tax, pre-provision net revenue (non-GAAP) - adjusted | $48,326 | | $33,365 | |
| Adjusted earnings per share: | | |
| Weighted average common shares - basic | | 62,866 | | 62,508 |
| Weighted average common shares - diluted | | 63,220 | | 62,716 |
| Earnings per share - basic (GAAP) | $0.58 | | $0.42 | |
| Earnings per share - diluted (GAAP) | $0.57 | | $0.42 | |
| Adjusted earnings per share - basic (non-GAAP) | $0.59 | | $0.42 | |
| Adjusted earnings per share - diluted (non-GAAP) | $0.59 | | $0.42 | |
| Pre-tax, pre-provision net revenue per share: | | |
| Pre-tax, pre-provision net revenue per share - basic (non-GAAP) | $0.78 | | $0.53 | |
| Pre-tax, pre-provision net revenue per share - diluted (non-GAAP) | $0.78 | | $0.53 | |
| Pre-tax, pre-provision net revenue per share - basic (non-GAAP) - adjusted | $0.77 | | $0.53 | |
| Pre-tax, pre-provision net revenue per share - diluted (non-GAAP) - adjusted | $0.76 | | $0.53 | |
| Adjusted return on average assets: | | |
| Total average assets | $7,581,913 | | $7,648,846 | |
| Return on average assets (GAAP) | 0.48% | | 0.34% | |
| Adjusted return on average assets (non-GAAP) | 0.49% | | 0.34% | |
| Adjusted return on average equity: | | |
| Total average equity | $755,538 | | $747,002 | |
| Return on average equity (GAAP) | 4.80% | | 3.49% | |
| Adjusted return on average equity (non-GAAP) | 4.93% | | 3.49% | |
| Adjusted return on average tangible equity: | | |
| Total average equity | $755,538 | | $747,002 | |
| Less: average goodwill | (113,525) | | (113,525) | |
| Less: average other intangible assets | (1,218) | | (1,700) | |
| Total average tangible equity | $640,795 | | $631,777 | |
| Return on average tangible equity (non-GAAP) | 5.71% | | 4.18% | |
| Adjusted return on average tangible equity (non-GAAP) | 5.87% | | 4.18% | |
Reconciliation of GAAP to Non-GAAP
(Unaudited)
| Year Ended |
|---|
| (Dollars in Thousands) | June 30, 2026 | June 30, 2025 |
| Adjusted non-interest expense ratio: | | |
| Non-interest expense (GAAP) | $129,008 | $120,630 |
| Non-routine transactions: | | |
| Branch consolidation expenses and impairment charges | (250) | - |
| Severance expense from workforce realignment | (745) | - |
| Non-interest expense (non-GAAP) | $128,013 | $120,630 |
| Non-interest expense ratio (GAAP) | 1.70% | 1.58% |
| Adjusted non-interest expense ratio (non-GAAP) | 1.69% | 1.58% |
| Adjusted efficiency ratio: | | |
| Non-interest expense (non-GAAP) | $128,013 | $120,630 |
| Net interest income (GAAP) | $155,283 | $134,943 |
| Total non-interest income (GAAP) | 22,825 | 19,052 |
| Non-routine transactions: | | |
| Gain on sale of property held for sale | (1,769) | - |
| Total revenue (non-GAAP) | $176,339 | $153,995 |
| Efficiency ratio (GAAP) | 72.43% | 78.33% |
| Adjusted efficiency ratio (non-GAAP) | 72.59% | 78.33% |