Kearny Financial (KRNY) Q3 2026 earnings summary

Executive summary

• Net income for Q3 2026 was $10.1 million ($0.16 per diluted share), up from $6.6 million ($0.11 per share) year-over-year and $9.4 million ($0.15 per share) in Q2 FY2026, reflecting continued improvement in core earnings and operational efficiency.

• Pre-tax, pre-provision net revenue rose 5.5% year-over-year to $13.0 million, marking the sixth consecutive quarter of net interest margin expansion.

• Strategic initiatives included branch optimization, deposit franchise expansion, and automation to drive sustainable earnings growth.

• Total assets decreased by $132.8 million to $7.61 billion at March 31, 2026, mainly due to declines in net loans receivable, cash, and investment securities.

• Stockholders' equity increased $17.1 million to $763.0 million, reflecting net income and other comprehensive income, partially offset by dividends.

Financial highlights

• Net interest income reached $39.2 million, with net interest margin increasing 7 bps sequentially and 31 bps year-over-year to 2.21%.

• Dividend yield stood at 5.83%; CET-1 ratio was 14.57%.

• Adjusted net income for Q3 2026 was $9.4 million, excluding non-recurring items.

• Return on average assets (GAAP) was 0.54%; adjusted return on average equity was 5.34%.

• Book value per share increased by $0.24 to $11.79; tangible book value per share rose by $0.25 to $10.02.

Outlook and guidance

• Management expects continued earnings momentum due to favorable loan repricing, funding dynamics, and operational improvements.

• Ongoing focus on loan portfolio diversification, funding optimization, and automation is expected to support further margin expansion and scalable growth.

• Management expects continued focus on asset quality, capital strength, and prudent balance sheet management amid evolving market conditions.