Kearny Financial Corp. reported third-quarter fiscal 2026 net income of $10.1 million, up from $9.4 million in the prior quarter, while diluted earnings per share rose to $0.16 from $0.15.
Net interest income increased to $39.2 million from $38.0 million, a gain of $1.3 million, and net interest margin widened by seven basis points to 2.21%. The company said this marked the sixth straight quarter of margin expansion.
Pre-tax, pre-provision net revenue climbed 5.5% to $13.0 million, or $0.21 per diluted share. Tangible book value per share rose $0.09, or 0.9%, to $10.02, while book value per share increased $0.09, or 0.8%, to $11.79.
Non-interest income increased 9.4% to $6.1 million from $5.6 million, helped by a $1.0 million gain on the sale of properties held for sale. That increase was partly offset by declines in fee income: fees and service charges fell 28.8% to $922,000 from $1.3 million, and electronic banking fees and charges dropped 17.8% to $389,000 from $473,000.
Non-interest expense rose 3.6% to $32.3 million from $31.2 million. Salary and benefits climbed $943,000 to $19.3 million, net occupancy expense increased $375,000 to $3.3 million, and advertising and marketing rose $253,000 to $665,000. Other expense fell $377,000 to $3.5 million.
On the balance sheet, total assets declined $13.2 million to $7.61 billion. Investment securities decreased $19.3 million to $1.09 billion. Loans receivable increased $25.8 million to $5.78 billion, led by growth in commercial and industrial and construction loans, while multifamily mortgage loans declined. Deposits rose $17.5 million to $5.73 billion, and borrowings fell $35.0 million to $1.06 billion.
Asset quality weakened modestly: non-performing assets rose $1.1 million to $52.4 million, or 0.69% of total assets, from $51.3 million, or 0.67%. Net charge-offs edged down to $626,000 from $669,000. The provision for credit losses fell to $391,000 from $567,000, and the allowance for credit losses slipped to $44.7 million from $45.0 million.
Capital metrics improved at the margin. Tangible equity to tangible assets was 8.65%. The company also said it declared a quarterly cash dividend of $0.11 per share, payable May 20, 2026, up from the prior quarter’s payout level implied by the current declaration. Today the company's shares have moved 2.18% to a price of $7.50. If you want to know more, read the company's complete 8-K report here.
