Kearny Financial (KRNY) Q4 2025 earnings summary

Executive summary

• Net income for Q4 2025 was $6.8 million ($0.11 per diluted share), up from $6.6 million in Q3 2025, reflecting consistent performance and disciplined management.

• Pre-tax, pre-provision EPS rose 23% to $0.16 per diluted share, driven by a 10 bps net interest margin expansion.

• Non-interest income grew 9.4% in Q4 2025, supported by higher BOLI income, loan sale gains, and stronger fee revenue.

• Credit quality remained strong, with negligible net charge-offs for both the quarter and year.

• Regulatory approval received to consolidate three branches, with closures expected by October 2025 and minimal financial impact.

Financial highlights

• Total assets stood at $7.7 billion as of June 30, 2025.

• Loans receivable at June 30, 2025 were $5.81 billion; deposits were $5.68 billion.

• Q4 2025 net interest income rose 5.3% to $35.8 million; net interest margin increased 10 bps to 2.00%.

• Non-interest expense to average assets was 1.62%, reflecting disciplined expense management.

• CET-1 ratio was 14.49%, well above regulatory minimums.

Outlook and guidance

• CRE loan repricing through 2029 is projected to generate a cumulative annual increase in interest income of $55 million.

• Management expects continued earnings growth and margin expansion, citing successful execution of strategy and favorable loan/time deposit repricing.

• As loans mature, capital can be reallocated to higher-yielding asset classes to enhance returns.