Kearny Financial recently released its 10-K report. Kearny Financial Corp. is the holding company for Kearny Bank, which offers deposit accounts, residential and commercial real estate loans, commercial term loans and lines of credit, construction lending, home equity products, overdraft lines of credit, personal loans, and investment activities. Founded in 1884 and headquartered in Fairfield, New Jersey, the company operates through banking products and services in the United States.
In Item 7, management said its discussion and analysis is based on the consolidated financial statements and related statistical data, with allowance for credit losses identified as the key accounting estimate. The allowance for credit losses was $45.5 million at June 30, 2026, down from $46.2 million a year earlier, as $2.4 million of net charge-offs were partly offset by a $1.7 million provision for credit losses. Management said the quantitative component of the allowance rose $152,000 and the qualitative component rose $481,000.
At June 30, 2026, total assets were $7.68 billion, down $58.2 million from $7.74 billion a year earlier. Net loans receivable increased $63.1 million to $5.83 billion, while deposits rose $34.4 million to $5.71 billion and borrowings fell $106.5 million to $1.15 billion. Cash and equivalents declined to $114.8 million from $167.3 million, and available-for-sale securities fell to $964.4 million from $1.01 billion.
Loan growth was uneven across categories. Commercial and industrial loans increased $85.2 million to $223.9 million, construction loans rose $85.5 million to $263.2 million, and one* to four-family residential mortgage loans increased $41.3 million to $1.79 billion. Multi-family mortgage loans fell $209.8 million to $2.50 billion, leaving total commercial loans at $4.01 billion, essentially flat from a year earlier.
For the year ended June 30, 2026, commercial loan origination volume totaled $439.7 million, including $166.2 million of commercial mortgage originations, $118.5 million of commercial and industrial originations, and $155.1 million of construction disbursements. Purchases of commercial business loans added $93.8 million. One* to four-family residential mortgage originations, excluding loans held-for-sale, totaled $154.0 million, supplemented by $65.6 million of loan purchases, while home equity originations totaled $43.5 million.
Nonperforming assets increased to $53.4 million, or 0.70% of total assets, from $45.6 million, or 0.59%, a year earlier. The increase was largely tied to two foreclosed properties with an aggregate carrying value of $5.5 million transferred into other real estate owned, along with higher nonperforming multi-family mortgage loans. Nonperforming loans rose to 0.82% of total loans from 0.78%.
Net interest income improved to $155.3 million from $134.9 million, while interest expense fell to $169.0 million from $189.5 million. Net income was $36.3 million, up from $26.1 million, and earnings per diluted share were $0.57 versus $0.42. Return on average assets increased to 0.48% from 0.34%, return on average equity rose to 4.80% from 3.49%, and the efficiency ratio improved to 72.43% from 78.33%.
Deposits included $788.0 million of non-interest-bearing balances, up from $582.0 million, while interest-bearing demand deposits declined to $2.21 billion from $2.36 billion. Brokered CDs were $757.2 million, essentially unchanged from $757.7 million. Uninsured deposits totaled $2.25 billion, compared with $1.99 billion a year earlier. Following these announcements, the company's shares moved 0.36%, and are now trading at a price of $9.705. For the full picture, make sure to review Kearny Financial's 10-K report.
