Kearny Financial Corp. Announces First Quarter Fiscal 2026 Results and Declaration of Cash Dividend

Core Insights - Kearny Financial Corp. reported a net income of $9.5 million for Q3 2025, an increase from $6.8 million in Q2 2025, translating to earnings per diluted share of $0.15 compared to $0.11 [1][3][22] - The company declared a quarterly cash dividend of $0.11 per share, payable on November 19, 2025 [2] Financial Performance - Net interest margin expanded by 10 basis points to 2.10%, with net interest income increasing by 5.2% to $37.7 million [6][10] - Earnings per share increased by 36.4% quarter-over-quarter, driven by net interest margin expansion and controlled expenses [3][6] - Non-interest income rose by 17.2% to $5.8 million, primarily due to a non-recurring pre-tax gain on property sale [10][22] Balance Sheet Highlights - Total assets decreased by $92.4 million, or 1.2%, to $7.65 billion as of September 30, 2025 [6][18] - Loans receivable totaled $5.77 billion, a decrease of $45.5 million, or 0.8%, primarily due to a decline in multifamily mortgage loans [6][18] - Deposits were $5.63 billion, down $43.3 million, or 0.8%, driven by declines in interest-bearing demand deposits and CDs [6][18] Asset Quality - Non-performing assets increased to $64.6 million, or 0.84% of total assets, from $45.6 million, or 0.59% of total assets, primarily due to a single construction loan [16] - Net charge-offs totaled $1.0 million, or 0.07% of average loans, compared to $49,000 in the previous quarter [16] Capital and Equity - Book value per share increased by $0.08, or 0.7%, to $11.63, while tangible book value per share rose by $0.09, or 0.9%, to $9.86 [16][19] - The company's tangible equity to tangible assets ratio was 8.47%, with regulatory capital ratios exceeding the levels required to be classified as "well-capitalized" [16][18]