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

Core Insights - Kearny Financial Corp. reported a net income of $9.4 million for the quarter ended December 31, 2025, slightly down from $9.5 million in the previous quarter, maintaining a diluted earnings per share of $0.15 [1][24] - The Board of Directors declared a quarterly cash dividend of $0.11 per share, payable on February 18, 2026 [2] - The company experienced a year-over-year expansion in net interest margin by 32 basis points, reaching 2.14%, attributed to strategic balance sheet management and loan portfolio repricing [3][10] Financial Performance - Pre-tax, pre-provision net revenue increased by 3.9% to $12.3 million, indicating strengthening core earnings [6] - Non-performing assets decreased by 20.6% to $51.3 million, representing 0.67% of total assets, reflecting solid credit quality [6][17] - Total deposits rose by $79.7 million, or 1.4%, to $5.71 billion, enhancing funding capacity [6][19] Balance Sheet Highlights - Total assets were reported at $7.62 billion, a decrease of $27.1 million, or 0.4%, from the previous quarter [6][19] - Loans receivable totaled $5.75 billion, down by $14.0 million, or 0.2%, primarily due to reductions in multifamily and residential mortgage loans [6][19] - Borrowings decreased by $111.5 million, or 9.2%, to $1.10 billion, reflecting a reduction in Federal Home Loan Bank advances [6][19] Income Statement Analysis - Net interest income increased by $265,000 to $38.0 million, while total interest income decreased by 2.2% to $80.7 million [10][24] - 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 quarter [10][24] - Non-interest expense decreased by $475,000, or 1.5%, to $31.2 million, driven by declines in salary and benefits and occupancy expenses [10][24] Asset Quality and Capital - The allowance for credit losses was $45.0 million, or 0.78% of total loans, showing a slight decrease from the previous quarter [17] - Book value per share increased by $0.07, or 0.6%, to $11.70, while tangible book value per share rose by $0.07, or 0.7%, to $9.93 [17] - The company's tangible equity to tangible assets ratio was reported at 8.56%, with regulatory capital ratios exceeding all applicable requirements [17][19]