Kearny Financial(US:KRNY)2026-02-05 17:10Financial Position - Total assets decreased by $119.6 million to $7.62 billion at December 31, 2025, from $7.74 billion at June 30, 2025[119]. - Net loans receivable decreased by $58.3 million, or 1.0%, to $5.71 billion at December 31, 2025, from $5.77 billion at June 30, 2025[123]. - Total deposits increased by $36.3 million, or 0.6%, to $5.71 billion at December 31, 2025, from $5.68 billion at June 30, 2025[133]. - Stockholders' equity increased by $11.4 million to $757.4 million at December 31, 2025, largely reflecting net income of $19.0 million[138]. - The allowance for credit losses totaled $45.0 million, or 0.78% of total loans, at December 31, 2025, compared to $46.2 million, or 0.79% of total loans, at June 30, 2025[130]. - Investment securities available for sale decreased by $12.6 million to $1.00 billion at December 31, 2025[120]. - Loans held-for-sale totaled $8.8 million at December 31, 2025, compared to $5.9 million at June 30, 2025[122]. - Commitments to originate and purchase loans totaled $42.5 million at December 31, 2025, up from $26.4 million at June 30, 2025[183]. - Construction loans in process were $162.0 million at December 31, 2025, compared to $115.7 million at June 30, 2025[184]. Income Statement - Net income for the quarter ended December 31, 2025, was $9.4 million, or $0.15 per diluted share, compared to $6.6 million, or $0.10 per diluted share, for the quarter ended December 31, 2024[140]. - Net income for the six months ended December 31, 2025, was $19.0 million, or $0.30 per diluted share, compared to $12.7 million, or $0.20 per diluted share, for the same period in 2024[159]. - Net interest income increased by $5.4 million to $38.0 million for the quarter ended December 31, 2025, compared to $32.6 million for the same quarter in 2024[141]. - Net interest income for the six months ended December 31, 2025, increased by $10.6 million to $75.7 million compared to $65.1 million for the same period in 2024[160]. - Total non-interest income increased by $698,000 to $5.6 million for the quarter ended December 31, 2025, compared to $4.9 million for the same quarter in 2024[150]. - Total non-interest income rose by $1.9 million to $11.4 million for the six months ended December 31, 2025, compared to $9.5 million for the same period in 2024[169]. Expenses - Salaries and employee benefits increased by $794,000 to $18.4 million for the quarter ended December 31, 2025, from $17.6 million for the same quarter in 2024[152]. - Total non-interest expense increased by $1.6 million to $31.2 million for the quarter ended December 31, 2025, compared to $29.6 million for the same quarter in 2024[152]. - Total non-interest expense increased by $3.5 million to $62.9 million for the six months ended December 31, 2025, compared to $59.3 million for the same period in 2024[172]. - Salaries and employee benefits rose by $2.0 million to $37.1 million for the six months ended December 31, 2025, driven by higher salary expenses and payroll taxes[173]. Credit Quality - Nonperforming assets increased by $5.7 million to $51.3 million, or 0.67% of total assets, at December 31, 2025[128]. - Provision for credit losses increased by $460,000 to $567,000 for the quarter ended December 31, 2025, compared to $107,000 for the same quarter in 2024[149]. - Provision for credit losses increased to $485,000 for the six months ended December 31, 2025, from $215,000 in the prior year, primarily due to adjustments related to a non-performing loan[168]. Taxation - Effective tax rate increased to 19.8% for the quarter ended December 31, 2025, from 16.0% for the same quarter in 2024[158]. - The effective tax rate increased to 20.2% for the six months ended December 31, 2025, from 15.6% in the prior year, reflecting higher projected taxable income[180]. Capital Ratios - The Bank's total capital to risk-weighted assets ratio was 14.75% at December 31, 2025, exceeding the minimum regulatory requirement of 8.00%[186]. - Tier 1 capital to risk-weighted assets ratio was 13.79% at December 31, 2025, above the minimum requirement of 6.00%[186]. - Common equity tier 1 capital to risk-weighted assets ratio was 13.79% at December 31, 2025, surpassing the minimum of 4.50%[186]. - The Bank's total capital to risk-weighted assets ratio was 14.49% at June 30, 2025, also above the regulatory minimum[186]. Interest Rate Sensitivity - The Bank's internal analysis indicated that a 300 basis point increase in interest rates would decrease the Economic Value of Equity (EVE) by 29.82% to $528,474[195]. - A 200 basis point increase in interest rates would reduce net interest income (NII) by 7.42% to $148,358 over a 1 to 12 month period[195]. - The interest rate spread improved to 1.75% for the six months ended December 31, 2025, compared to 1.39% for the same period in 2024[168]. - The sensitivity of EVE to interest rate changes is influenced by the composition and allocation of the balance sheet[196]. - Future interest rates and their effects on net interest income are unpredictable and based on numerous assumptions[197]. Liquidity - Liquidity included $147.3 million of short-term cash and cash equivalents and $1.00 billion of investment securities available for sale as of December 31, 2025[182]. - The Asset/Liability Management program is overseen by the Board of Directors to manage interest rate risk[191]. - The Bank had no significant off-balance sheet commitments for capital expenditures as of December 31, 2025[188].