Kearny Financial(US:KRNY)2026-01-22 13:34Financial Performance - Net income for Q2 fiscal 2026 was $9.4 million, or $0.15 per diluted share, compared to $9.5 million, or $0.15 per diluted share, in the previous quarter[1]. - Net income for the quarter was $9,449 thousand, a decrease of $57 thousand, or 0.6%, compared to the previous quarter[21]. - Net income for Q4 2025 was $9,449,000, slightly lower than $9,506,000 in Q3 2025[36]. - Basic earnings per share (EPS) remained stable at $0.15 for both Q4 and Q3 2025[36]. - Adjusted net income for Q4 2025 was $9,449,000, an increase from $6,566,000 in Q4 2024[45]. - Earnings per share (diluted) remained stable at $0.15 in Q4 2025, consistent with Q4 2024[45]. Revenue and Income Sources - Pre-tax, pre-provision net revenue increased by 3.9% to $12.3 million, indicating ongoing strengthening of core earnings[6]. - Non-interest income decreased by $276,000, or 4.7%, to $5.6 million, primarily due to the absence of a non-recurring gain from the previous period[10]. - Non-interest income decreased by $276 thousand, or 4.7%, totaling $5,571 thousand, with fees and service charges increasing by 45.2%[21]. - Total non-interest income was $5,571,000 in Q4 2025, compared to $4,873,000 in Q4 2024[47]. Asset and Liability Management - Total assets decreased by $27,132 thousand, or 0.4%, from September 30, 2025, to December 31, 2025, totaling $7,620,878 thousand[18]. - Total assets decreased to $7,549,411,000 from $7,619,319,000 in the previous quarter[38]. - Total liabilities decreased by $31,324 thousand, or 0.5%, totaling $6,863,482 thousand[18]. - Total liabilities were $6,794,493,000, down from $6,874,176,000 in Q3 2025[38]. Deposits and Funding - Total deposits increased by $79.7 million, or 1.4%, providing additional funding capacity[6]. - Total deposits increased to $5,711,550 thousand from $5,631,882 thousand, an increase of $79,668 thousand[28]. - Total funding decreased to $6,806,550 thousand from $6,838,379 thousand, a decline of 0.46%[33]. - Uninsured deposits reported increased to $2,158,440 thousand from $2,040,021 thousand, showing a rise of 5.79%[33]. Credit Quality and Loss Provisions - Non-performing assets decreased by 20.6% to $51.3 million, or 0.67% of total assets, demonstrating solid credit quality[6]. - The Company recorded a provision for credit losses of $567,000, compared to a reversal of credit losses of $82,000 in the previous quarter[16]. - The provision for credit losses showed a reversal of $567 thousand, compared to a provision of $(82) thousand in the previous quarter, indicating a significant change of 791.5%[21]. - Nonperforming loans as a percentage of total loans improved to 0.89% from 1.12% in the previous quarter, indicating better asset quality[31]. - Average net charge-off rate (annualized) was 0.05%, consistent with the previous quarter's rate of 0.07%[31]. Equity and Book Value - Book value per share increased by $0.07, or 0.6%, to $11.70, while tangible book value per share increased by $0.07, or 0.7%, to $9.93[16]. - Total stockholders' equity increased to $757,396 thousand from $753,204 thousand, an increase of $4,192 thousand[28]. - Book value per share increased to $11.70 from $11.63, reflecting a growth of $0.07[28]. Efficiency and Margins - Net interest margin expanded by four basis points to 2.14%, driven by lower costs on interest-bearing liabilities[10]. - Efficiency ratio improved to 71.64% from 72.71%, a change of -1.07%[25]. - Return on average equity (annualized) decreased to 5.01% from 5.10%, a change of -0.09%[25]. - Return on average assets (annualized) was 0.50% in Q4 2025, unchanged from Q3 2025[45]. Interest Income and Yield - Net interest income increased by $265 thousand, or 0.7%, from the previous quarter, reaching $37,969 thousand[21]. - Total interest income for Q4 2025 was $80,652,000, a slight decrease from $82,508,000 in Q3 2025[36]. - Net interest income after provision for credit losses was $37,402,000, compared to $37,786,000 in the previous quarter[36]. - Average yield on interest-earning assets decreased to 4.55% from 4.61%, a change of -0.06%[25]. - Average yield on interest-earning assets for loans receivable was 4.67% in Q4 2025, up from 4.54% in Q4 2024[40]. - Total interest-earning assets yield decreased to 4.55% in Q4 2025 from 4.54% in Q4 2024[40].