Kearny Financial
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Kearny Financial (KRNY) investor relations material

Kearny Financial Q2 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2026 earnings summary22 Jan, 2026

Executive summary

  • Net income for Q2 2026 was $9.4 million ($0.15 per diluted share), up from $6.6 million ($0.10 per share) year-over-year and nearly flat sequentially, reflecting improved core earnings.

  • Pre-tax, pre-provision net revenue rose 3.9% to $12.3 million, with net interest income at $38.0 million, driven by lower interest expense.

  • Net interest margin expanded by 4 basis points to 2.14% sequentially, up from 1.82% a year earlier.

  • Stockholders' equity increased by $11.4 million to $757.4 million, and book value per share rose to $11.70.

  • Strategic initiatives included a partnership with The Lab Consulting and the addition of a residential lending team to diversify revenue.

Financial highlights

  • Net interest income for Q2 2026 was $38.0 million, with net interest margin at 2.14%.

  • Pre-tax, pre-provision net revenue reached $12.3 million, up from $11.9 million in the prior quarter.

  • Non-interest income was $5.6 million, with higher fees and service charges year-over-year.

  • Non-interest expense was $31.2 million, with a decrease quarter-over-quarter due to lower salaries, occupancy, and advertising.

  • Dividend yield stood at 5.94%, and a quarterly dividend of $0.11 per share was declared.

Outlook and guidance

  • Management expects recent federal funds rate reductions to benefit earnings due to a liability-sensitive balance sheet.

  • Repricing of CRE and multifamily loans through 2029 is expected to generate material annual interest income growth, assuming similar loan replacement.

  • Maturing loans present opportunities for redeployment into higher-yielding assets.

  • Ongoing interest rate risk, economic and geopolitical uncertainties, and regulatory changes could impact future results.

  • The company maintains a strong liquidity position and capital ratios well above regulatory minimums.

Lab Consulting: expected ROI or timeline
Explain liability sensitivity's earnings tailwind
Rationale for reducing multifamily loans
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Frequently asked questions

Kearny Financial Corp. is a publicly traded financial holding company that operates primarily through its subsidiary, Kearny Bank. The company provides a range of banking and financial services to individuals, families, and businesses. Its offerings include personal and business checking accounts, savings accounts, money market accounts, and certificates of deposit. Kearny Financial Corp. also offers mortgage loans, commercial real estate loans, and other types of personal and business loans. The company serves its customers through a network of branches located in New Jersey and New York. The company is headquartered in Fairfield, New Jersey, and its shares are listed on the NASDAQ.

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