Kearny Financial (KRNY) Q1 2026 earnings summary

Executive summary

• Net income for Q1 FY26 was $9.5 million ($0.15/share), up 40% quarter-over-quarter and 56% year-over-year, driven by higher net interest and non-interest income.

• Book value per share increased to $11.63, and tangible book value per share rose to $9.86.

• Quarterly cash dividend of $0.11/share declared, yielding 6.70%.

• Strategic partnership with The Lab Consulting to enhance automation and efficiency; three branch consolidations planned, reducing locations to 40.

• Loan portfolio diversified, with construction and C&I loans up 27% and 10% annualized, respectively, while multifamily loans declined.

Financial highlights

• Net interest income was $37.7 million, with net interest margin at 2.10%, up 10–30 bps year-over-year and quarter-over-quarter.

• Non-interest income rose to $5.8 million, including a $749,000 non-recurring gain on property sale.

• Non-interest expense increased to $31.7 million, mainly from higher salaries, occupancy, and technology costs.

• CET-1 ratio was 14.59%; total capital ratio 15.50%; tangible equity/tangible assets 8.47%.

• Book value per share rose by $0.08 to $11.63; tangible book value per share increased by $0.09 to $9.86.

Outlook and guidance

• Management anticipates continued strong capital and liquidity, with focus on higher-yielding commercial credit and automation to drive efficiency and growth.

• CRE loan repricing through 2029 could add $49 million in annual interest income, supporting future margin expansion.

• No significant off-balance sheet capital expenditure commitments as of September 30, 2025.

• Management expects benefits from anticipated reductions in the federal funds rate.