Kearny Financial Corp. has reported a significant increase in net income for the first quarter of fiscal 2026 as compared to the previous quarter. The net income for the quarter ended September 30, 2025, was $9.5 million, or $0.15 per diluted share, compared to $6.8 million, or $0.11 per diluted share, for the quarter ended June 30, 2025.
The company's net interest margin expanded by 10 basis points to 2.10%, while net interest income increased by 5.2% to $37.7 million. Additionally, the company's earnings per share increased by 36.4% to $0.15 per diluted share, and pre-tax, pre-provision earnings per share increased by 18.8% to $0.19 per diluted share.
The total assets were reported at $7.65 billion at September 30, 2025, reflecting a decrease of $92.4 million, or 1.2%, from June 30, 2025. The company's loan portfolio diversification efforts resulted in a 26.8% growth in construction loans and a 10.2% increase in commercial business loans on an annualized basis.
Moreover, the company's non-interest income increased by $856,000, or 17.2%, to $5.8 million from $5.0 million for the quarter ended June 30, 2025. Non-interest expense increased by $773,000, or 2.5%, to $31.7 million from $30.9 million for the quarter ended June 30, 2025.
The balance of non-performing assets increased to $64.6 million, or 0.84% of total assets, at September 30, 2025, from $45.6 million, or 0.59% of total assets, at June 30, 2025. Additionally, the company recorded a reversal of credit losses of $82,000 for the quarter ended September 30, 2025, compared to a provision for credit losses of $1.8 million for the quarter ended June 30, 2025.
In terms of capital, the book value per share increased by 0.7% to $11.63, and tangible book value per share increased by 0.9% to $9.86 for the quarter ended September 30, 2025.
Today the company's shares have moved 0.15% to a price of $6.72. If you want to know more, read the company's complete 8-K report here.
