Kearny Financial Corp. said net income for the fiscal year ended June 30, 2026, rose to $55.8 million from $43.6 million in the prior year, an increase of $12.2 million, or 28%. Diluted earnings per share increased to $0.89 from $0.70.
The company’s balance sheet expanded modestly, with total assets increasing to $7.29 billion from $7.15 billion a year earlier. Loans held for investment grew to $5.43 billion from $5.23 billion, while total deposits climbed to $5.68 billion from $5.54 billion.
On the revenue side, net interest income increased to $190.2 million from $181.0 million, up $9.2 million. Net interest margin improved to 2.77% from 2.64%.
Credit quality also shifted. Nonperforming assets declined to $24.5 million from $31.8 million, and the allowance for credit losses stood at $47.8 million, compared with $45.9 million previously. Net charge-offs were $2.0 million, down from $2.6 million.
The company reported tangible book value per share of $10.66, up from $10.17 a year earlier. Return on average assets improved to 0.77% from 0.62%, and return on average equity rose to 8.31% from 6.68%.
Kearny also pointed to loan growth in commercial real estate and commercial business lending. Commercial real estate loans increased to $3.14 billion from $3.00 billion, while commercial business loans rose to $595.2 million from $542.8 million. Residential mortgage loans edged up to $1.01 billion from $1.00 billion. The market has reacted to these announcements by moving the company's shares -1.11% to a price of $8.87. For more information, read the company's full 8-K submission here.
