Kearny Financial Corp. has recently released its 10-Q report. The company operates as the holding company for Kearny Bank, offering various banking products and services in the United States. Kearny Financial provides deposit products, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, savings accounts, and certificates of deposit accounts. It also offers loans such as multi-family and nonresidential real estate mortgage loans, commercial term loans and lines of credit, one* to four-family residential mortgage loans, and home equity loans and lines of credit.
In the 10-Q report, Kearny Financial highlighted the comparison of financial condition at December 31, 2025, and June 30, 2025. Total assets decreased by $119.6 million to $7.62 billion at December 31, 2025, from $7.74 billion at June 30, 2025. This decrease primarily reflected decreases in net loans receivable, cash and cash equivalents, investment securities, and declines in the market values of interest rate derivatives.
The report also discussed the breakdown of the loan portfolio, showing that net loans receivable decreased by $58.3 million, or 1.0%, to $5.71 billion at December 31, 2025, from $5.77 billion at June 30, 2025. The decrease was attributed to changes in various loan segments, including commercial loans, one* to four-family residential mortgage loans, and consumer loans.
Nonperforming assets reflected an increase of $5.7 million to $51.3 million, or 0.67% of total assets, at December 31, 2025, from $45.6 million, or 0.59% of total assets, at June 30, 2025. The increase in nonperforming assets was largely attributable to an increase in nonperforming multi-family mortgage loans, partially offset by a decrease in nonperforming residential mortgage loans.
The report also addressed the company's net interest income, which increased by $5.4 million to $38.0 million for the quarter ended December 31, 2025, compared to $32.6 million for the quarter ended December 31, 2024. This increase resulted from a decrease in interest expense, partially offset by a decrease in interest income.
Furthermore, the report highlighted that stockholders' equity increased by $11.4 million to $757.4 million at December 31, 2025, from $746.0 million at June 30, 2025. The increase in stockholders' equity largely reflected net income of $19.0 million and other comprehensive income of $5.0 million, partially offset by cash dividends of $14.0 million.
As a result of these announcements, the company's shares have moved -0.63% on the market, and are now trading at a price of $7.86. Check out the company's full 10-Q submission here.
